How Experienced Investors Profit From Rookie Investor Mistakes

Making money in real estate doesn't have to be difficult, but it does require some experience and knowledge. That's why some experienced investors are profiting from inexperienced investors' mistakes. In this article, we'll discuss how experienced investors take advantage of rookie mistakes and generate more leads and revenue from their deals.

Rookie Mistake #1:

Rookie Investors Cut Back On Marketing During Economic Uncertainty

During times of economic uncertainty, inexperienced real estate investors often make the detrimental mistake of cutting back on marketing expenses to save money. Unfortunately, this expensive mistake costs them money because it slows down their lead generation pipeline and brings their new seller leads to a standstill. Experienced investors capitalize on this rookie mistake by maintaining a consistent marketing strategy all year round and sometimes doubling down on their efforts.

Experienced Real Estate Investors View Marketing As An Investment, NOT An Expense

The most experienced entrepreneurs understand that marketing is an investment, not just a variable expense. Some variable costs can be cut if needed, but often would be a mistake if it cuts into generating business. An investment in marketing is something that helps a business sustainably grow and thrive over time and often pays off even more in hard times. A solid marketing strategy is the lifeblood of any successful business. But a marketing strategy only works if executed consistently, which leads us to our second rookie investing mistake.

Rookie Mistake #2:

Inexperienced Investors Are Inconsistent In Their Marketing

Marketing requires consistency to achieve results. Unfortunately, most new real estate investors take far too long to grasp this fact.

Instead, rookie investors spend their first few years trying to do all of their lead generation and marketing on their own. The problem with this is that their marketing falls by the wayside the moment they get too busy or when something happens in their personal life. Even if an investor is successfully doing all of their marketing themselves, something will eventually get in the way, and they'll have to take a break from it. This can be due to working on a short timeframe to flip a house, dealing with unpredictable contractors, or getting sick and not being able to do anything for a week or two. It's not a matter of "if" life will get in their way. It's a matter of "when" it will.

The saying, "Life happens when making other plans," is a perfect summary of how life can (and often does) get in the way of our ability to execute tasks despite our best intentions.

Experienced Investors Contract Out Their Marketing To Consistently Generate Leads

Seasoned investors understand that it takes multiple touch points to find a motivated seller, and most sellers aren't willing to sell to them immediately. Instead, most sellers take 4+ months before they become serious about selling their homes.

This is why many experienced investors contract out their lead generation and marketing to a reputable company that will market for them consistently to keep their name in front of sellers throughout the year.

By consistently marketing to the same sellers repeatedly, investors have better chances of their information being in front of sellers when the timing becomes right. This leads us to the next rookie mistake.

Rookie Mistake #3:

New Investors Give Up Too Easily

Some new investors have sales experience, while others don't. Those with experience may already understand the importance of relentless follow-up. But often, new investors make a critical rookie mistake by giving up on their leads far too quickly. This is because rookie investors allow their fear of rejection to get in the way.

Savvy Real Estate Investors Know Their Numbers & They Relentlessly Follow-Up

Most experienced investors learned not to give up too quickly the hard way. (By losing a ton of deals early on in their careers.) With time though, they've learned how to face their fears head-on by equipping themselves with knowledge.

Savvy real estate investors know their numbers. They know that it takes, on average, 4 months, 45 leads, 250 relentless follow-up calls, and 12 hours of phone time to get 1 deal. These investors use their knowledge to develop a consistent and relentless follow-up strategy that keeps their deals flowing. One of the ways they do this without spending all of their time behind a screen or on the phone is by hiring a team of professionals that can help them with lead generation, marketing, and follow-up. This brings us to our final point.

Rookie Mistake #4:

New Investors Don't Delegate & They Undervalue Their Time

Most inexperienced real estate investors greatly underestimate the value of their time and end up trying to do everything by themselves. Unfortunately, this leads them towards quick burnout, and they max out on what they can do in a given week.

Knowledgeable Real Estate Investors Know How Much Their Time Is Worth & They Delegate Accordingly

As the CEO of their businesses, experienced real estate investors understand that their time is worth well more than typical employee wages that range between $15-$35 per hour, and they delegate accordingly. 1397124194

Whether they use a part-time employee or a Done-For-You services provider who can handle everything for them (like our REIvault). Delegation enables experienced real estate investors to focus their time and energy on the tasks they do love doing — talking to motivated sellers and closing deals.