Use This Follow-up System and Have 30% More Offers Accepted
In my conversation with Doug and Andrea Van Soest, who own a rental, fix-and-flip and wholesaling business, they provided their best real estate investing advice ever. Following this advice has enabled them to create a 57 door, $8.5 million rental portfolio and complete over 300 deals. The advice? Follow-up, follow-up, follow-up!
Follow-up, Follow-up, Follow-up!
You can get leads and you can make offers, but if you don’t have a follow-up process for after an initial offer is rejected, then you are missing out on a lot of deals. For Doug and Andrea, they can attribute 30% of their 2015 deals to their extended follow-up process. If you just look at their $8.5 million rental business, which is their second most profitable business behind fix-and-flipping, 30% is $2.55 million! That is a HUGE chunk of their business that might not have been if it wasn’t for their commitment to following up.
The Follow-up Process
If Doug and Andrea make an offer to a potential seller, the seller’s information is inputted into their follow-up system. The seller will stay in their system if:
- Their offer is rejected for whatever reason
- The seller has not sold the property
Over the next 14 months, as long as the seller still owns the property, they are going to hear from Doug and Andrea 35 times from a combination of the following 4 communication methods:
- Direct mail post cards
- Text message
35 communications multiplied over hundreds of potential sellers is a lot. Doug and Andrea do not have the time or man power to send out that many manual emails, texts, voicemails, or post cards. Therefore, Doug and Andrea have create an automated follow-up system that is a compilation of 4 different software programs:
- Podio – main CRM system for customer contact information
- Call Loop – automated text messaging and voice mail sending that are sent out on a periodic basis
- AWeber – automated email follow ups
- Click2Mail – simple post card sending
Which of these 4 follow-up methods can you add to your current real estate business in order to work towards having 30% more of your offers accepted?
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.