Why Communication Is The Key To A Successful Investor
By Paul Esajian on January 29, 2016
Your lead conversion rate is largely based on how well you communicate. You don’t need to be an expert public speaker to be an effective communicator. Some of the most successful people in real estate have a laid back personality. In fact, there are many people who are put off by the aggressive, abrasive type. Good communication is about getting your point across with as little verbiage as possible. The more you have to explain yourself or what you are trying to do, the more likely you will lose your audience. Whether you are trying to maximize direct mailing results or simply trying to grow your network, good communication skills is key. Here are a few tips for how to improve your communication:
- Economy of words: Nobody wants to hear someone talk about how great they are or how many deals they have closed. While you may think you are impressing your audience, you are actually losing them. With any good communication, less is more. You want to avoid any long speeches or ramblings. Even if you are asked a question, you should learn to trim your answer down to a few short sentences. Real estate agents, buyers, sellers, attorneys and even fellow investors want to see your personality. If they feel they are working with a robot where every answer is forced, they will find someone else. Having a few set answers is fine, but you need to put your personality in them. If the time is right to lighten up the mood with humor, take advantage of it. The less words you use the more your point will be received.
- Focus on the benefit: Regardless of who you are speaking to, you need to focus on how working with you benefits them. Real estate agents don’t care about how much you made on your last rehab deal. They want to know that you are clear about the kinds of properties you want and that you can close them quickly. Distressed homeowners aren’t worried about your rehab vision for the property. They want to know how you can help make their current situation better. Before you talk to anyone, you need to think about what it is they want out of the relationship. This focus should be something that you constantly come back to throughout the conversation. If you make it about you more than them, they will go sour on you very quickly. They can probably find a dozen other investors in your area that can accomplish what they are looking for. You can separate yourself from the pack by making the conversation all about how you can solve a problem for them.
- Set firm response dates: Deadlines spur action. People are much more prone to act when given a specific time and date. At the end of every conversation, email or text that you need to set a follow up time. Doing this allows them to gather their thoughts and consider a response by a predetermined date. If you don’t do this, you will end up chasing them around until they are ready to act. There is a fine line between being pushy and pushing them to act. You need to know who you can push and who you need to give space to. If you sound demanding, you are asking for trouble. Conversely, some distressed homeowners need to be pushed in order to follow short sale or foreclosure dates. Find a way to convey the urgency without being demanding and overbearing. Explain the importance of making a decision and the consequences of not. If they blow off important dates, it may be a sign that they are not someone you want to work with anyway. Never totally disregard an opportunity, but put it on the back burner until they are ready to act.
- Listen to answers: Successful communication is really about listening. In almost every lead generation or networking conversation, you will hear what the other party really wants. Once you know this, everything else is easy. If a distressed homeowner tells you they want to move on, they may be ready to sell quickly. If a fellow investor tells you they are having cash flow problems, their issue could be with generating capital. Regardless of who you are talking to, there are subtle clues in every conversation. You can’t be so busy thinking of what you are going to say next that you fail to listen to the answer. If you make a comment that has nothing to do with what someone just said, they will find someone who listens to them.
- Follow up: What does communication have to do with following up? People want to feel that they are the most important conversation you have had all day. If you meet with someone, you need to take five minutes to follow up and thank them for their time. Whether they respond or not, the odds are that they appreciate the gesture. Most deals or networking opportunities aren’t consummated after the initial meeting. There will most likely be numerous follow up calls, texts, and emails that will strengthen the relationship. If you don’t do your part and follow up, you will never get to that point.
You also communicate with punctuality, how you look, the facial expressions you make, and even the nervous ticks that you have. Speaking is really only a small part of communication. The better you become at communicating the better investor you will be.