May 27, 2021
Concentric Circle Marketing
To run any successful real estate investing business whether you are a wholesaler, a flipper, or you own and operate rental properties, you need a marketing engine to continuously fill your acquisition pipeline. It is the lifeblood of your business. Knowing a couple of realtors and wholesalers is nowhere near enough.
The best deals are the ones that are created, not found. To create them, you need to find motivated sellers. The key to finding motivated sellers is to make sure every potential seller in your target market knows who you are, that you’re honest, and you can solve their problem.
One of the best ways to do that is through outbound marketing (letters, postcards, emails, texts, door hangers, etc.).
Now, I don’t mean market to the entire state. You need to focus on a specific set of towns, or a county…and only the properties that meet your criteria (more on criteria coming soon). Focus enables you to maximize your marketing resources (time, energy & money).
When I was a young technology geek, I had the good fortune to meet Gabe DeNunzio. If you were a technology company in Boston, in the late 1990s and 2000s, and wanted to launch a new product or offering, Gabe was the guy you called. He is a rock star.
Gabe taught me about Concentric Circle Marketing.
The concept is pretty simple. Begin small and grow your target market, one target area at a time, as you generate revenue from your initial market.
In real estate…
- Pick a Target City (TC)
- Identify your Target Property Criteria (TPC)
- Identify your Target Property Owners (TPO)
- Contact your TPOs
- Evaluate the interested TPO properties
- Figure out how to solve the TPO’s problem
- Make offers on all of them
- Cherry-pick and close on the properties you want to hold or flip
- Wholesale the rest of your property inventory to your Buyer’s List
- Do it again…and again…and again.
At my company, Clark St Holdings, we focus on 1 county in Connecticut for our Flip and New Construction business (Clark St Homes). Our rental property business (Clark St Properties) targets 1 county in Connecticut and 1 county in Vermont.
That’s after 10+ years of investing. We began by targeting a single town. Then, over time, we added another, and another, and so on. Currently, we contact 4,500–5,000 TPOs a month. We close 2–3+ deals a month.
The concept is to “suck the oxygen” out of your target city. Every single potential seller needs to recognize your brand, understand your offering and equate your brand and value proposition with your marketing communications.
To do that, you must contact them at least 7 times over a span of 6–12 months.
Forget about missing out on a deal. It’s a big world out there and you can’t possibly contact every potential seller everywhere. You need to get and stay focused.
If you become pigheadedly disciplined to reach every single TPO in your target market, every single month, you will, eventually, become the obvious choice and ultimately become a trusted resource to those sellers when they are ready to sell their problem properties.
Happy Investing!
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About CTREIA
CTREIA is the largest real estate investors & apartment owners association in the Northeast. We provide motivation, networking, funding, insurance, and coaching for investors in Connecticut and throughout the US.
If you are interested in learning more about becoming a CTREIA member or are interested in learning how to become a real estate investor, go to CTREIACoaching.com. If you’re interested in funding your deals, go to CTREIAFunding.com. If you’re interested in protecting your assets, go to CTREIAInsurance.com.
