Key Takeaways
- Real estate referrals play a crucial role for even the most successful investors.
- Referrals real estate can offer promising leads for your business and can provide unique investing opportunities.
- Investors wondering how to ask for referrals in real estate should look no further than the tips included below.
Generating leads is a crucial part of any real estate investors day to day life, but that also means it can be the most stressful. One of the best ways to boost your available leads is to acquire real estate referrals. With any form of lead generation, the process is easier said than done. However, with the right framework you can utilize referrals to your advantage and ultimately land more deals. Keep reading to find out the best places to find real estate referrals.
Real Estate Referrals Definition
Real estate referrals can be thought of as a golden ticket for investors, as they are a seamless way to generate leads within your existing network. So, how do real estate referrals work? Referrals occur when an investor, Realtor or even someone in your network recommends someone looking to buy or sell a property. Depending on your real estate investing niche, referrals can often mean access to new listings or potential clients for buying or selling a property. Real estate referrals allow you boost your productivity as an investor because as you expand your network, your ability to generate leads will grow too.
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Where To Find Referrals
There are numerous forms real estate referrals can come in. For example, they could be generated by your inner circle, real estate agents, investors or even online. Simply put, real estate referrals can come from anyone you have worked with in the past or even from those familiar with what you do. Generating real estate referrals offers the opportunity to strengthen relationships within your existing network and generate leads without relying on your usual systems.
It is worth remembering that there are two types of leads in real estate: qualified and unqualified. When it comes to real estate referrals, there is no guarantee that every lead will be qualified; however, referrals do typically result in deals that are easier to close. Qualified leads are usually in the midst of the buying or selling process and are ready to move forward. On the other hand, unqualified leads are categorized by someone who isn’t actually ready to buy or sell a property at the time.
The reason I say that referral leads can be thought of as easier to close is that so often they are. Keep in mind that real estate referrals come from individuals that you have worked with in the past or know on a personal level. Think about the last time a friend recommended you a product; you probably went into the transaction a little less cautious than usual, right? Real estate referrals can be thought of similarly. When someone refers you or your business they are vouching for your trustworthiness and work ethic. Therefore, those leads already have a positive impression of you and your business.
Now, I don’t want to hype up leads too much without letting you know how to get real estate referrals. As an investor, there are several avenues you can try when searching for referrals. Here are just a few places to get started:
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Real estate client referrals are a huge opportunity for investors. Former clients know firsthand what you and your business have to offer, and their testimonies could go a long way in the form of referrals. Client referrals are perhaps one of the most straightforward ways to generate more leads.
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Other investors can offer unique benefits when it comes to referrals real estate. Perhaps an investor in your network knows of a great deal but the timing isn’t right, in that case you would want the opportunity handed to you, right? This is one of many reasons why networking with your fellow investors is crucial.
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Leads can also come in the form of real estate agent referrals. While real estate agents may not be attuned to your specific investing niche, they often have an inside look at the real estate market in your local area. Now, real estate agents aren’t going around simply handing out leads but if you play your cards right you may find some unique opportunities.
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Online resources can also provide numerous opportunities for real estate referrals. There are countless websites that facilitate the networking process between real estate investors, brokers and more. As you seek to expand your business and land more deals, online resources can help in a variety of ways.
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Your existing professional network can also lead to a number of real estate referrals. While you may think everyone around you knows and understands your role as a real estate investor, they may not. If you know what you’re doing and are clear in your communications with your existing network you may realize that several leads have been right under your nose.
How To Ask For Referrals In Real Estate
You may have noticed by now that most people don’t go around simply handing out referrals when it comes to real estate investing. It is important to understand that in order to acquire leads through real estate referrals it will take some action on your part. Asking for referrals in real estate is the most efficient way to go about this part of the process.
The best strategy when it comes to asking for referrals will depend on the type of network you are trying to interact with, although there are several guidelines to remember. The number one thing I can share with you is to treat every client with the utmost respect. It sounds crazy to simply tell someone to be good at their job, but when it comes to real estate referrals how you do your job is crucial. No one is going to refer you if they had a mediocre experience working with you. Keep that in mind as you manage each of your clients and you will be fine in that aspect.
Another general guideline for generating real estate referrals is to set goals for yourself. This will leave you with concrete reminders for expanding your network, boosting your relationships and acquiring leads. Do not overwhelm yourself with high expectations at first, but raise your goals as you go along. Having benchmarks will encourage you to continue to pursue referrals and in time can lead to more results.
As far as actually asking for referrals goes, do not be afraid to be direct. If you have good relationships with the connections you are trying to leverage, don’t be too intimidated to ask for referrals. As you get more comfortable asking, you may realize that most people don’t even think about it until prompted. With anything, once you get a good system going the process will run smoother than you think.
Pro Tips: Asking For Referrals In Real Estate
If you think you are ready to begin asking for referrals in real estate, there are several things you can do. These are some of my pro tips for getting started:
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Follow up with referral sources that you do receive, and show appreciation for clients who repeatedly refer you to others. Whether or not referrals turn into deals, it is crucial to reach out to those who refer you to others. By acknowledging their role in your business, you are maintaining a positive relationship while helping ensure they continue to suggest you moving forward.
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Be prepared to communicate with the leads you do get by asking a few questions before reaching out. For example, if a fellow investor refers you to one of their clients make sure they are okay with you mentioning their name when you reach out. One of the best things you can do when approaching real estate referrals is to respect each party involved.
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Develop a system for analyzing the leads you generate from referrals. As a real estate investor, you likely have a system in place for evaluating the reliability of your leads. It’s important to use this same system when looking at real estate referrals rather than letting them flow in without knowing what to do next.
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Expand your network any chance you get. It is important to consistently expand your existing network in order to ensure that you are also consistently generating real estate leads. There are a variety of sources that are perfect for real estate referrals, so make sure you are always on the lookout for new opportunities.
For investors seeking to generate more leads and expand their networks, real estate referrals can offer a great opportunity. If you are not already making use of your business connections I recommend that you do so by seeking out real estate referrals. They often result in qualified leads and can make landing deals easier. After all, you never know until you ask.
What systems do you rely on for generating real estate referrals? Share your answer in the comments below.
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