Building a good investor database is critical in any successful business strategy in the property sourcing industry. Your investor database will pretty much define whether you sink or swim in property sourcing. As you will probably already know and we discuss frequently in our podcasts, the property sourcing industry is highly competitive so it pays to spend time nurturing your investor database.
There are three big drivers in building an investor database that you should be aware of, if you want to see great success:
1. Quality over quantity
As with many other aspects of life, sometimes more isn’t always better. List building in the internet marketing world needs to focus on quality rather than the size of the list. Having a long list of investors who are not ready to commit is not going to see great results. Having a shorter list with investors that you know are looking to do business, will get you the results that you want.
So don’t waste time with ‘window shoppers’ who are not prepared to put their money where their mouth is. A lot of time can be wasted if you are trying to work with these kinds of people. Always put quality over quantity when it comes to building your investor database.
2. Harness the power of social media
Social media has become a really powerful marketing tool and for the property sourcing industry, it can be used to build high quality investor databases. By finding property groups on Facebook for example, you will already have a set of people who have a big interest in what you have to offer them. You can even drill down to find the groups that are interested in specific deals like BMV deals or Lease Option deals. You can see which people are actively looking for properties, rather than wasting time with those who won’t commit. You can use keyword searches to find specific posts that relate to the kind of deals you are offering.
You can also use Facebook to build up a list for deals that you have in the pipeline that might not necessarily be ready yet and gauge the level of interest. Facebook ads are being used on an increasingly frequent basis and whilst you might not have a huge marketing budget, Facebook ads are well known for their high ROI. So you can use Facebook ads to also help you to build investor databases.
3. Get networking
Networking certainly isn’t a new concept but it is highly effective in building investor lists. Whilst many people seem to invest heavily in their online marketing activity, the traditional face-to-face approach can work wonders in building trust and meeting the right kind of investors.
If people are going to give up their time (and money) to attend a networking event, there is a good chance that they are very serious about investing in property. So get out there and attend the relevant networking events, the free ones and the paid ones. Meeting people at these events and building relationships with them, is key to having a qualified list of investors.
In regards to selling on fast, this is quite a simple equation. The better the quality of your investor list, the faster your deals will go through. So if you master the three big drivers we’ve highlighted, you will be well on your way to getting those fast paced, more lucrative deals.
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