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Question Title I bought a lead, but they wanted full market value
**Please read the entire answer!  You will fail or succeed as a real estate investor based on your grasp of the following concepts.**

This answer will apply to every form of marketing that you do, no matter what the business.  The answer may sound filppant, but it's deadly serious and if you ignore it, you will experience financial pain.  This answer comes from 8 years of successful real estate investing.

Welcome to the real world of real estate investing.  Non-ideal leads are part of any marketing that you'll do as a real estate investor. The important thing is to understand the basics of marketing and come up with creative solutions to the problem. We set our prices so that they more than compensate for the chance that the seller might be asking full market value, or that they may have already found a buyer.

Some investors get a little upset with that attitude.  If I don't care about what happens to them, I apologize and agree with them. 
 
If, on the other hand, I do care about them, I take a little more time and explain the basics of marketing to them.  Professional real estate investors understand that this is a numbers business. 
 
I believe once you look at the numbers, you'll agree. If you are willing to pay a bird-dog $1000 for a great deal, how many leads at $9.97 can you buy for the same price? The answer is 100 leads! How about if the leads are $49.97? The answer is still 20 leads!  Of course, if you wait until the leads are $4, you could buy 250 leads for $1000.

Coincidentally, Dolf De Roos (Robert Kiyosaki's real estate advisor) teaches that you should expect to look at 100 deals in the process of finding one that you will actually do. Your goal should be to buy leads as quickly as possible on IBuyHousesLeads.com so that you can get through the 99 "dogs" as quickly as possible to find the real gem.

Think of all the time and money you saved by buying your leads a-la-carte rather than spending dozens of hours and hundreds of dollars doing other marketing. You don't have to spend hours creating/tweaking a campaign, or spend days/weeks waiting for it to start, let alone the large cash outlays required for mailings, billboards, or classified ads.  With IBuyHousesLeads, you can buy a lead for as little as $4 bucks and be on the phone with a seller in minutes!

Even if you don't find any value in a particular lead doesn't mean that nobody else will. Do you have any realtors who pay finder's fees? You can usually find local realtors who will pay $30-$50 per lead OR $500 per listing. Do you have any other local investors who do subject-to, lease-option deals, or short sales who pay finder's fees? How about bad/no credit mortgage brokers? If the homeowner has to sell because of financial difficulties, they may be interested in buying another house. Remember, be creative. Just because YOU don't find any value in the leads doesn't mean you can't re-sell the lead to someone else and make the lead free or make money on it.
 
If, after all this, you still feel slighted, please find an investor who's more experienced who can help you understand the basics of marketing and the tremendous value you're receiving at IBuyHousesLeads.com.  With your current understanding of the value of your time and the basics of marketing, you really need to get a handle on these concepts before you continue using ANY marketing medium. 

If you would like us to do a series of lessons on the math of marketing, the law of large numbers, and tracking the metrics of your business, please respond to this post and we will.
Authored by: ibhl This question has been viewed 1548 times so far.
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Article Number: 6
Created: 2007-08-25 11:26 AM
Rating: 5 Stars
 
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