I just got off the phone with John, a student of mine.
My conversation with John was thought provoking and exciting and I thought you needed to hear the same powerful information I just shared with him.
But, first I have a few questions…
Do you want to be enormously successful investing in real estate?
Do you want to have the kind of money rolling in that changes your lifestyle into what you dare dream of only in your wildest fantasies?
Yes, of course! I know you do. So what’s the secret to success?
It’s in the numbers!
In a perfect world, every lead you spoke to would turn into a closed deal. Unfortunately, we don’t live in that utopia. In fact, more leads will lead nowhere than those worth pursuing. Your job is to separate the chaff from the wheat. To find the profitable deals hiding behind a motivated seller. Let me make it very simple – increases in the number of seller discussions increases dollars in the bank. It’s a game of numbers.
Regardless of your expertise, you have some ratio of deals to contracts. This is the heart of this lesson. Instead of becoming depressed because you don’t sign enough seller contracts, recognize this is just a game of numbers. If you want more contracts, talk to more Sellers. Let’s suppose that your ratio is on the low side – it is 30:1. That means that you have to talk to 30 sellers to sign one great deal.
If you want 2 deals in the next month, then you need to talk to 60 sellers. If you want 4 deals, then you need to talk to 120 sellers. To be successful, just increase the number of sellers to whom you’re talking.
Track your results each month to identify opportunities.
Simply write down every seller that you speak to in the course of a month, and record the results of that call. If at the end of the month, the results fell short of the goal, the tracking form will tell you why. For instance, you may realize that you only actually spoke to five sellers. Sure, you were busy all month. In fact you called these five people repeatedly, following up, trying to make something happen. But in the end, you still only spoke to five potential sellers. This may sound obvious, but many investors try to work a few leads to death, rather than simply increase their number of leads. The answer is to increase the number of calls.
The other answer is to improve your ratio. If you’re at 30:1, your goal should be to get to 20:1. Are you talking to motivated sellers?
You are not a real estate investor. You are a problem solver.
If the sellers have no significant problem, they have no need for your services so you’re wasting your time. On your tracking sheet, write down each seller’s motivation. At the end of the month, see how were actually motivated. If that number is low, improve your marketing to attract the right type of sellers.
The best way to improve your ratio is to increase the number of techniques and strategies you have at your disposal to solve their problem and ultimately purchase their home. If one technique is all you know you’ll pass over opportunities looking for the one seller that meets your criteria. Constant improvement and education should be something that never stops in your career. As your abilities expand, your ratio will improve. Suppose you changed your ratio from 30:1 to 15:1. Your profits would DOUBLE! Is it worth your time to track your results? You better believe it. Your monthly tracking sheet will provide precise information as to what needs to be done to improve your results: increase the number of calls; improve the quality of the callers – make sure to attract motivated sellers; expand your knowledge base to maximize your opportunities. Success is not about luck. Success is in the numbers.
Study the numbers and explode your bank account.
Best of Success & Abundance,