Please Don't Make These Same Mistakes (I...

Hey Moguls, Cody Sperber here, and I have a question for you…

How many years have you been in the real estate investing business?

If it’s been several years, and if you’ve been following many of our tips and strategies, you may have hit a good stride. You’re going along closing deals, banking cash and feeling pretty good about life. This is good because it’s important to attain a sense of confidence.

But let me give you a word of caution.

I can give this word of caution because I’ve made these mistakes myself. Hopefully, as I point out the mines in the mine field, you can avoid disaster in your own business.

This is a business that requires lifelong learning. The world of real estate never stays the same, nor do marketing techniques, nor does technology. You not only have to be on your game, you have to be ahead of the game.

There was a time in my local market in Arizona when a distinct market shift took place. The market became more of a seller’s market. Due to technology and the internet, sellers were becoming savvier; this meant prices were being driven up and sellers were then able to raise their asking price.

At the same time that this seller’s market was developing, more and more investors were coming on board in this business. It became a much more heated and competitive situation. I discovered that the going wasn’t quite as easy as it once had been.

My Biggest Mistake

What was my biggest mistake?

I was asleep at the wheel, maintaining my business practices that worked in a buyer’s market when the sellers weren’t as educated, and when we had less competition. All of a sudden I was getting beaten out by my competitors and I was perplexed.

After all, I was doing all the right things (I know how this thing works, right?):

I showed up at the seller’s house
I said all the right things
I made a good offer
I came away a winner (well, maybe not)

I did everything just as I had always done – what had always worked in the past. From a tactical standpoint, I was right on course.

mistake But, I started seeing a few red flags that gave me notice that maybe I wasn’t right on course after all.

What were the red flags? Well, nothing I could ignore…

When I called the seller back after an initial conversation, ready to do business, I was informed that they had already sold their house to “such and so” investors. Yikes! That “such and so” investor had some big, professional-sounding company name.

My question was something like, “What led you to make that decision?”

Their answer?

“We just felt more comfortable going with a bigger company that presented more credibility.”

Whoa! That didn’t have to happen very many times to get my attention.

My Much-Needed Lesson

There was obviously a lesson here that I needed to learn. But what was it? How did these competitors snag deals right out from under my nose?

As I did my research, here’s what I learned. These competitors had a few things that I was lacking:

A specific brand
A professional logo
They used their brand consistently throughout the business…
- on their business cards
- on all their printed materials
- and their logo embroidered on their Polo shirts, etc.
They use an iPad to give a professional presentation
They have a franchise mentality

Now it was time to assess my own business approach:

No business card
No professional logo
No polo shirts with the business name embroidered on it
No formal presentation

Hmmmm. Not a very high score.

Back in the day, when things were popping for me in my business, I didn’t have to do any of this stuff. As a result, I got a little lackadaisical. Those red flags reminded me that most all of the investors out there were singing the same song.

So what would cause me to stand out from the crowd? I needed to imitate success…

Time to Change Course

Believe me, I was not going to sit on the sidelines and let my competition soar past me. I backed up, I reassessed, I changed my tactics and I stepped up my game – big time! It was time to stop taking anything for granted. No longer were sellers going to just hand me a deal – I had to fight for it.

Sooo… now, of course, I have:

Business cards
A professional logo
A professional presentation on my iPad (this presentation explains all the options to the seller)
Polo shirts with an embroidered logo that says “Cash for Houses”

Everything is designed with the brand in mind.

These tactics have increased my conversion rate dramatically.

The Importance of Presentation

My iPad presentation has made a huge difference in how sellers perceive my business. The presentation contains research that I’ve done that will help with the negotiations. I’ve even added video testimonials from other satisfied sellers. I call this presentation the “In-Home Seller Presentation.”

I show 20 or 30 slides that educate the seller on what’s happening in the market. It explains who I am, why they would want to do business with me and their options are clearly outlined.

When this presentation is finished, the seller is on my side – thinking:

This guy is credible
He knows about the real estate market
He’s trustworthy
He has the whole package

This type of professionalism is head and shoulders above the random guy who drives up dressed in flip-flops and shorts and says, “Hey, I’m here to buy your house. I can pay as much or more than any other investor.”

Not much there to build trust.

What Changes Do You Need to Make?

In the past, it was mainly about the offers. Not so today… Now, getting the deal is based on presenting a complete package to the seller.

Remember, nothing ever stays the same. The market and all that’s involved in it, is always changing. You must be quick to tune in to what’s happening and change with it. When you feel the shift happening, take immediate action to stay on top of the game.

There’s never a reason for you to allow your competition to learn all this before you do.

Don’t repeat my mistake of ignoring the warning signs!

Get out there – ahead of the game – and make a killing.