When you close a deal and make a profit, are you able to make even more money afterwards . . . from the same deal?
First off, let me make it very clear that this is not about raising the rent or increasing the value of your home – or anything like that.
While doing things like that can increase your income, what I want to talk to you about today deals with marketing. When you close on a deal, your relationship with the buyer/seller/investor doesn’t have to stop there.
And the best part is, as you close more deals and do what I’m about to suggest to you, you’ll see growth in your business.
Let’s get started…
In order to make more money on deals that you have closed, it is going to depend on how well you were able to sustain your relationships with your buyer/seller/investor. Relationships are key to this strategy and if you had a rough closing, then it will most likely not work out. This is like the gasoline to your car. The engine isn’t going anywhere with out it!
What to do right away…
Immediately after you close on a deal, you should tell people to let their friends know about your business. This may be a no-brainer to some, but I had to mention it because when you get a check in hand after a closing, it can get very exciting – when people are excited, they tend to forget the basics.
Now most people will stop here . . . they’ll just let the buyer/seller/investor know to spread the word and probably never contact that person again. (Unless they’re dealing with an investor who does multiple deals)
The most important part of this strategy…
At this point you need to collect an email or mailing address and do 1 of 2 things…or both!
1. Launch and Email “Follow Up” Campaign
2. Launch a Direct Mail “Follow up” Campaign
If you do this by email then you’ll need some type of auto responder or you’ll just need to ensure you remain consistent with your emails.
If you do this with direct mail, then you’ll just need to ensure your budget can handle it.
What you going to do is continue building upon that relationship by sending them informational tips that they could use concerning their home, and/or greeting them on national holidays.
There are a lot of home owners out there who wouldn’t mind getting tips on saving electricity, conserving water, taking care of the lawn, increasing the value of the home, what local companies they should use for home remodeling/repairs/painting, etc…
Do you see where I’m going with this?
They are going to keep seeing your name tied to valuable information that they can use every month or however often you send it to them.
The best part…
Now at some point they’ll probably come across a friend or relative that just happens to be looking for a home. What do they do? They immediately think of you because you are so fresh in their mind and they say, “Hey, you should check out my friend, So and So..” The friend obviously already has an existing relationship with them and will most likely take their advice and give you a call.
Trust me when I say that you’ll love hearing, “Hi, I was told that you were the one I need to talk to if I want to get a good deal on a home. Can you help me?” Boom! Now you have another deal to work on. Don’t forget to ask them that important question I talked about last week . . . and I know you now know what to do after you close this new deal, right?
That is why I said earlier that relationships are key.
A quick story on how someone tried this on me . . . and it worked!
Back when I was trying to buy my first home, I was having problems with securing the loan. It wasn’t my fault. I was fully qualified, but the lender was just taking forever! They kept losing paperwork; they forgot to tell me things I needed to give them; they kept telling me how they were so backed up with other files. At this point we had a week left to close!
It got to the point where I had to switch lenders, because we had to buy this house. So, the new lender that took over my file had me fax everything I gave my last lender, and called me everyday with updates on what was going on. More importantly, they assured me that I was going to close on the house that same week.
To make a long story short, I closed on the home 2 hours before my closing. I definitely didn’t want to tell my wife that we weren’t able to get the home!
I really appreciated their service and they asked me to write a testimonial. I was so excited that I wrote one for them right away.
About a month later I received a letter in the mail saying, “We just wanted to thank you for choosing us to do your loan and we wanted to let you know that we appreciate your business. If you have any friends that need our services, please feel free to tell them about us. ”
In addition, they had some extra information in the letter about credit repair, or something like that.
The next month they informed me about the rise in foreclosures, then about loan modifications, then about refinancing, or new housing/mortgage laws that have been passed, etc. This happened consistently – month after month.
So now, whenever someone comes to me about needing a loan, I always think about who is fresh in my mind –the people that closed my loan!
If I wanted them to stop mailing me, then I would just tell them, but I don’t have a reason to. Not only did they do an awesome job, but they continue to provide me with valuable information that I may or may not use, and I would be more than happy to refer them to a friend. Who knows how much money they make from doing this.
This strategy is all about retaining relationships and following up. I guarantee the better you get at this, the more money you’ll make, even after closing your deals.
To Your Success,
New Breed Real Estate Investor
P.s: Are you doing this already? How is it working for you? Do you think this could work for your business?
Leave a comment and let me know!
Photo Credit: AMagill