7 Steps to Land a Home Builder/ Developer
Like any other business, getting started and establishing yourself inside the business world is the most difficult aspect of business. Once you find a niche for yourself, everything just falls into place. However, the reality of starting a new business is harsh and steer people away: (a) 33% of all new businesses fail within the first 6 months, (b) 50% fail within their first two years, (c) 75% fail within the first three years.
Statistically speaking, the chances of succeeding are very bleak. However, with my experience in the real estate business for 27 years, there are many different methods to ensure steady flow of new business as well as retaining your old clients. Most of my clients came to me as referrals, but some came to me as a result of my marketing plans. Modeling your future business plans after successful people inside the business already is a great way to minimize risk and a sure path to success.
The success of Ben Caballero
According to a Google search for “top real estate agent,” Ben Caballero of Addison, Teaxas is the top real estate sales person in the United States. His website www.bencaballero.com revealed mind-boggling numbers. In the last 4 years, he has sold a total of 8,467 homes raking in $2.557 billion. He credits his #1 ranking to www.homesusa.com, which is a platform for homebuilders. Obviously, for a real estate sales person, having a real estate developer/builder as a client would be great. So how would you go about getting such clients? The most important thing is that you must be persistent, thorough, and ambitious.
In order to land a client, it takes an average of 7 communications.
These communications between potential clients can be in many different forms such as postcard, calls, e-mails, meetings, and other methods. To many, cold calling may be a scary thing because of rejection, but take a look at the big picture. A few rejections can ultimately lead to landing a developer/builder client. All the negative and unpleasant moments will pale in comparison to the business you will have.
When calling a potential client, always be polite and ask them if it is a convenient time to talk. If so, go ahead with your script, but if not, ask to schedule a time to call back. Although calls can lead to clients, meeting face to face in person is the best form of communication. Another form of communication is through letters. Emailing is a method, but it is very easy to oversee and delete. To ensure that the receiver gets the message, I recommend that you send it in another format as well, such as: (a) regular mail, (b) UPS or FedEx in the envelopes they provide (c) Big manila envelopes. Although it will take more time and money doing so will send the message that you are ready and serious for business. There is no right or wrong way of doing this. The important thing to get out of these communications is to build a relationship with the potential client. Do not overwhelm them initially. Ease into your goals, desires, and current business position.
To land a builder/developer client, follow these simple steps.
Step 1: Build Your List
Attain a list 100 home builders/developers in your area. This can easily be done by using Google, buying a list from a list company, or by paying somebody else to browse the Internet. After gathering a list, drop the list into a sales management software, such as www.Podio.com. (Basic version is free and that is all you will need).
Step 2: Send a Post Card
Send a post card to briefly introduce yourself and why you are reaching out to them.
Here is sample post card of introduction. Remember to update Podio with relevant information after sending your post cards.
Step 3: Follow up with a phone call.
This ensures that they received the post card and you are just following up. This shows that you are serious and ready for business.
When calling a potential client, always be polite and ask them if it is a convenient time to talk. If so, go ahead with your script, but if not, ask to schedule a time to call back. Although calls can lead to clients, meeting face to face in person is the best form of communication.
To many, cold calling may be a scary thing because of rejection, but take a look at the big picture. A few rejections can ultimately lead to landing a developer/builder client. All the negative and unpleasant moments will pale in comparison to the business you will have.
Looking for the Big Developer Joe please.
Hi, my name is Mary I am known as the most sought after real estate professional by developers in the Los Angeles area.
The reason for my call is so that I can update my records. I am doing this so I can better serve your needs.
Is this a convenient time for us to talk?
[If they say No do not worry, you want to be as respectful as possible a developer/builder is a busy person. They do not know you yet. It is your first job is to gain their trust. If possible make an appointment to have a phone conversation or an in person meeting.]
- What kind of developments is the most profitable for your?
- How many units do you want to build this year/next year?
- What area do you primarily build in?
- Do you have any unsold inventory?
- What methods are you using to find vacant land?
- What methods are you using to market your properties?
- If applicable – What is preventing your from reaching your goals?
May I arrange an appointment for us to meet so I can help you achieve your (name the highest/goal/value they gave you from the questions above)?
Great, would 9 o’clock or 10 o’clock tomorrow morning be convenient for us to meet?
Have a great day/evening!
[Tip – All your communications you want to keep them short, and give them value. The next time you call you do not want them to see their caller id and think something negative about you.]
Remember to update Podio with new information.
Step 4 Send Letter of Introduction (letter 1)
Another form of communication is through letters. Emailing is a method, but it is very easy to oversee and delete. To ensure that the receiver gets the message, I recommend that you send it in another format as well, such as: (a) regular mail, (b) UPS or FedEx in the envelopes they provide (c) Big manila envelopes. Although it will take more time and money doing so will send the message that you are ready and serious for business.
There is no right or wrong way of doing this. You want your potential clients to get to know you, and you want to build a relationship with them. Do not overwhelm them initially. Ease into your goals, desires, and current business position.
See sample Letter of Introduction
Dear Joe Developer,
I got my degree from _______________________ University. I have doing real estate for ___ number of years.
[Mention a big accomplishment that you have created or have been a part of. It does not have to be about real estate.]
I am now working with developers in the Los Angeles Area.
Current market is growing and the need for new housing has a high demand. Real Estate has appreciated at ____% per year since ____.
Easy credit financing, ________ bank has _____down and _____% interest rate.
Population is growing at ____________ rate, and it’s a great area for families. The schools are rated number 2 in the state.
[What the trend is]
The area has a population of ______ and is growing at a rate of __________. Housing is a big need. ____ new luxury condos/single family residence are going to be needed.
I am the hardest working real estate agent in your city. Whatever you real estate needs, I probably have a client with the exact same needs recently – so I’m ready for your biggest challenge — ALL FREE OF CHARGE! Please call my office and together we will work on your success.
Enclosure: Business Card
P.S. Visit my blog at mysite.com I have the latest news on real estate.
At this stage, the developer/builder should be fairly familiar with you. You have established credibility. You have some information about their needs. You will now offer specific information that may satisfy their needs.
Follow step 5 with this letter
I have given you a post-card, call, and letter sequence you can use to build a relationship with your prospects. You will be able to identify the needs of your potential clients, and cater your offer to best serve them.
Now you have the tools you need, you just need to add the last ingredients: some conviction and perseverance.
There is a famous story about Jerry Weintraub, a well-known film producer. Earlier in his career, Jerry had been managing and promoting small-time talents. He decided one day that he was going to promote Elvis Presley.
Every morning Jerry would call Colonel Tom Parker – Elvis’ manager. The Colonel would not even take his call. Jerry did not give up. He kept calling everyday. After a while, The Colonel and Jerry became phone friends.
One day The Colonel said: “OK. Let’s do a tour”.
The Colonel and Elvis had a few obstacles that Jerry had to overcome. One of the requirements for them to go on tour was Jerry had to bring The Colonel 1 million dollars. Another one of the obstacles involves prison inmates (see the documentary – His Way)
Jerry Weintraub became a successful concert promoter for Elvis Presley. After 1 year Jerry was a millionaire. The rest of the talent followed, such as Led Zeppelin, Cuba Gooding Sr., The Main Ingredient, The Carpenters, Frank Sinatra, Neil Diamond, The Moody Blues and Zager & Evans.
Jerry wouldn’t have gained his dream client without making his calls to The Colonel.
Now you have a powerful system that can help you reach out to and connect with home builders/ developers. Black Stealth Marketing can help you customize your marketing strategy to best fit your market.
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