The newbie zone is basically finding yourself in the cycle of, ‘I want to do this.’ ‘I want to do that.’ never really focusing on one thing or shifting your focus the minute things get rough. Say you want to be a landlord with hundreds of units. You jump in enthusiastically and find there is so much to learn:
- Where do I find a deal?
- How can I finance it?
- Do I need an LLC? An S-Corp? Just put the building in my name? (No)
- How do I fix it up?
- What permits do I need to pull?
- How do I find tenants?
- Should I spend my time managing it? Or finding more deals?
- How long should I hold it?
- Should I flip it or build my portfolio?
- What about taxes?
- How much insurance is right?
If you feel like you’ve broken out of that zone, then congratulations! But if you haven’t, like a lot of people in real estate, then listen up because we’ll help you break out of that shell.
Consistency of Marketing
The biggest obstacle that most people in the newbie zone have to tackle is the consistency of marketing.
Here’s how real estate professionals usually get stuck; and I’m pretty sure this situation seems familiar. Sam, a newbie in real estate, decided to start out on his real estate journey by wholesaling. In order to get leads and make money, he has to do a lot of marketing. He
- Puts up bandit signs
- Hangs some door hangers on vacant properties,
- Sends out direct mail
This, my friends, is how you get stuck in the newbie zone. And the sad thing is that if Sam did all his marketing at least three to six times – if he just persisted, he would probably end up with a deal.
In the real estate industry, you have to build the momentum and this comes with consistency in your marketing.
Transform Your Business Into A Deal-Getting Machine
Before you dive into devising your marketing campaigns, it is very important to understand your market – understand the hot zones of your market and find out where everybody is buying and selling. Here are just some of the ways you can be consistent in your marketing without actually investing a ton of money.
1. Find the hot zones.
If you have a good relationship with a realtor, you can reach out to them and say,
“Hey, my name is Sam and I’m a real estate investor. I’m new to this area but I am not new to real estate investing. I want to start working with a rock star agent like you because you’re pretty big in your real estate market for listing properties, and I would like to build a good, professional relationship with you and maybe to start getting properties off your book as well – you know, sell some properties and buying them from you. But since I’m new to this area, I really need to understand the market and the hot areas. If possible, could you kindly send me a list of recent cash transactions that took place in the last 90 days?” Or something like that.
Real estate agents have access to the MLS. They’re able to pick a geographic circle or zip code, define the transaction type as a cash sale, and bring you a list of the hot zones. All you have to do is to break down the zip codes, look through the neighborhoods, and know where most of the cash transactions are taking place.
Another tactic is to look on Craigslist, or call the bandit signs or any wholesalers you see that have properties for sale. Observe where they have properties for sale and try to find a consistent zip code. You’ll eventually know which areas a lot of investors are interested in. Plus, you may have a conversation with a wholesaler that can bring you deals.
2. Consider your budget.
Once you know where you need to be focusing on (aka hot zones), you will then have to look at your marketing budget for at least 90 days. You don’t necessarily need a lot of money for marketing. There are actually investors who go out with no out of pocket expense at all. However, you’ll need to spend more time if you don’t spend the money.
If you have your marketing budget ready, start to look at how much money you can shell out on a regular basis because again, consistency in marketing is needed.
3. Do a direct mail campaign.
After step two, run a direct mail campaign. Don’t do it just once. You must have follow-up campaign after at least 30 days. You can do postcards or letters. Mix them up and send batches of them out weekly or every two weeks.
4. Put up bandit signs.
Direct mail campaigns can be expensive. If you can’t afford direct mail as of the moment, another alternative would be putting up bandit signs. Go back to where the hot zones are and post your signs there – at least 50 of them. Put them up on a Friday evening and then pick them up on a Sunday before the Neighborhood Nazis start taking them down. Try creating your own signs and test them against the professional signs you can order on the internet to see which works better.
5. Drive around vacant properties.
A lot of real estate investors still find deals driving around different areas and putting a door hanger on the door of a vacant property. Or knocking on a neighbor’s door and asking them for information of the property’s owner and their contact details.
One of the ways to get out of the newbie zone is to know whether you’re in it. It can be really tough and financially draining if you keep on shifting from one area of expertise to another. All you need to do is find the courage to stay in your niche, persist even when everything doesn’t go the way you planned, and enjoy great results in the long run.
DO SOMETHING ALREADY!
- Don’t give up when the going gets tough. Learn from your failures and mistakes – fail forward, they say.
- Be consistent. Consistency is key to success. You can’t just do a one-time thing and expect it to boom the next day.
- Revert back to basics. With all the technology available at our disposal, it’s easy to shun the traditional marketing techniques. These strategies still work.
Are You Stuck in the Newbie Zone? Tell Us.
If you’ve ever been stuck in the Newbie Zone and successuffly made it out, we want to hear about it.