3 Things I Wish I Knew Before I Started a Real Estate Business

1)Sales Skills are a necessity

I know what you are thinking, why do I have to sell anything. I'm doing real estate wholesaling. Flipping. Renting what's the point. But the sales skills are essential to control the outcome to create the best deals for your real estate business. Meeting with potential home selling clients, and finding out there pain points addressing and providing remedies. If needed, it can effectively employ skills such as fear of loss. I prefer the standard sales cycle

The 7 stages of a sales cycle

1. Finding future potential clients

2. Contacting the potential clients

3. Qualifying the client/Are they motivated?

4. Nurture the relationship/Gain an understanding of their pain points. How can you help?

5. Present the offer/Present your remedy for the pain points they have expressed

6. Overcome the objections/Sometimes prospects need an additional explanation about how your solution works for them

7. Close the sale

After stage 7 rinse and repeat for each new client

It is essential to have a strong understanding of sales and what point of the cycle you are completing. I move quickly through stages 1.2 and 3. If they are not motivated or I don’t have the solution they need, why spend time nurturing a relationship? But that is not to say you have to force your prospect through the sales cycle and hard close them. One reason is that people you have repour with tend to be more forthcoming with potential issues with the home. These issues can be used in turn to negotiate a lower price of the house. Then second if you keep your sales funnel full, you will have plenty of great deals closing on the other end. So why rush anyone when you are creating plenty of business for yourself. I closed an owner financing deal last year for four units from a relationship that I nurtured for three years. So keep your sales skill sharp by always going through the process, and don’t rush, it can turn out to be a great deal. Some books on selling can be found here.

2)Market Yourself

What type of investor are you? A buy and hold or flipper, Short term rental investor. What is your product? Your knowledge and experience or real estate? Do people know who you are and what you do?The Small Business Administration states that “30% of new businesses fail during the first two years of

being open, 50% during the first five years and 66% during the first 10.” Out of these rare businesses that go on, only 25% make it to 15 years or more. Letting people know who you are and what you do is a huge need for any business. You can not run your business in secret. One of the main contributors to business failure or growth is the lack of effective marketing to their core customer base. At the very least, you should put into practice being a walking talking infomercial for your real estate business. Create a Wix website landing page for interested customers. You could have a Tshirt with your company name and purpose on it. Just get out there and promote yourself!

3)Don’t compare your real estate business to someone further down the road that you.

As you start your real estate journey and start developing, you begin running into business challenges. You may start to wonder if what you are doing is correct. HGTV and DIY channel and the magazines all say that if you want to succeed in real estate, you must know what you are doing. Your home flip did not produce a sale; renter destroyed the property, can't find any investors. So you must be doing it wrong, RIGHT?

Well, not necessarily, The part that many of these magazines and TV shows leave out is the experience portions. To have experience by definition must have encountered or undergone events. The things you are struggling with are not just your mistakes. The people that have found success in real estate went through the same issues. Where many people fail to understand is that there is a growth factor in there.

Even in sports, they have different league levels for a reason. If you are in the junior recreational league in your business, comparing your self to the skills and accomplishment of the major league it will highlight your failures. You must face challenges to build your experience, put systems and perform actions that prevent that challenge again. Take into consideration that expertise takes time to develop. But there are ways to compress that time by reading books, taking classes, finding mentors etc. The take away is that a growing business does not equal perfection and failure is apart of the process.

Look down the road at others for inspiration, not condemnation.

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