Heyyyy you guys! It’s Naomi Findlay here. Welcome to this week’s episode of rapid renovation tips.
Okay, so you’ve done all your homework and researched everything. Your patch and strategy have been perfected and are just waiting for you to begin renovating.
But is this going to be a once off renovation? Or are you planning on doing it over and over until you can say “sayonara” to your day job?
You’ve put in a lot of effort into starting up this renovating for wealth business. So, I’m assuming that you wouldn’t want all that hard work to go to waste, and that you probably have the intention of continuing to renovate for profit long after your first project.
If that’s the case, do you know how to keep it going? Would you be able to snap up property after property quickly to keep your business running smoothly and making you profit?
If you take too long to find your next project, the costs of running your business as well as your normal day-to-day living might eat into the profits of that last project. And that’s not something you want.
So how do you go about making sure you have a consistent stream of projects coming in?
By treating your renovating for wealth business like a business. That means having a process in place to generate leads.
That’s right, leads.
Just like the sales guys go after leads in a bank to sign on new clients, you want leads to get a hold of new renovation projects. These leads could be anything from a new relationship that you form with a selling agent, or the address of a potential project.
When you’re presented with a lead, it is then your responsibility to sift through to find the diamond in the rough. You do this by seeing whether they fit your patch and strategy.
But how do you generate these leads?
The list of places where you can potentially find leads is pretty long. If I tried to list all the places here you might zone out or get overwhelmed by all of it.
When looking for leads, the best thing to remember is that they should fit YOUR goals. Messina might have a whole bunch of delicious-looking flavours, but if you don’t like fruit and want a low-fat, dairy-free option it narrows down your choice quite a bit. Otherwise you’ll be left standing there for ages trying to figure out which flavour to go for.
The same goes with leads; there are so many places to look for potential projects, but you only have so much time and money. So you need to figure out which places are turning into projects and which would be a waste of your precious assets.
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So what are your mains sources of leads?
There are three broad categories that your leads will fall under.
1. The Batman leads
The first one is also the biggest source – it will be where majority of your leads come from.
Batman is a crime-fighting machine who finds all the bullies and puts them in their rightful place. Your main source of leads is like batman – it’s the property-finding machine that will finds most of your projects and renovate them to their full potential.
There are two sub-sources that make up this first source.
2. Online databases
These days you don’t have to walk past a real estate agent’s window or go to their direct website to see all the properties they have available.
In Australia we have two major websites, realestate.com.au and domain.com.au, that show you all of the properties on the market in any particular suburb. It makes looking for leads super convenient because the properties are listed by all sorts of different agents, so you don’t have to go to each agent’s website separately.
You also get to search for leads from your phone, tablet or computer and you can save searches for later viewing, as well as set up notifications when particular properties come on the market.
3. Real estate agents
Last time I talked about setting up relationships with good selling agents. Once you have a few relationships in place, you will have your own mini database to work from.
Your relationship with agents can also lead you to finding properties before they even hit the market and end up on the online databases mentioned in sub-source a. This will also give you a good edge over your competition.
4. The Robin leads
Your second source of leads are the ones that don’t involve the professional property marketing sphere.
Robin is Batman’s side kick – he may not be the guy who kicks every criminal’s butt, but he’s good at spotting the sneaky guy who tries to slip away while Batman is busy with the big guys.
And just like Robin, your secondary sources can supplement your main leads.
There are three sub-sources that make up this second source.
5. Classified ads
This is where the owner is selling their property directly. There are no agents involved because the owner has put it up on a community ads site like the Facebook Marketplace, Gumtree or EBay.
6. Buyers’ agents
A good buyers’ agent can help you sniff out some pretty awesome leads. Because they’re working for you, they know what you want and can quickly find the properties that are perfect for your strategy and patch.
If you’re short on time and don’t have the opportunity to constantly keep an eye on the market to generate leads, a buyers’ agent could be a good idea. They will save you the time and the headache of finding your own leads.
Just keep in mind that a buyers’ agent is an additional expense and needs to be considered when drawing up your budget for a project.
7. Direct marketing
This last sub-source involves you contacting a potential project’s owner directly. It bypasses any agents because the property is usually not on the market.
Ways to direct market to properties you find include doing a neighbourhood run – you can either leave a note in their letterbox or go up and knock. If they are tenants, they probably won’t be able to help you because they wouldn’t know the landlord’s intention or even their contact details.
Obviously this type of lead generation takes a little more effort than some of the others. So, if you are scrapped for time and can’t get anyone else to do it for you, it might not be a lead generator that you would use.
All of these sources of leads will depend on what your strategy is. You may find that you use one a lot more than another, or you might find a completely different source that I haven’t mentioned.
As long as you make sure that you are regularly generating leads, you will have nothing to worry about when it comes to running your renovation business.