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Real Estate Investor Website Myth 3

You need a massive back end database to keep track of all your leads.

Wow this is a good one.  But I guess if I were going to try and sell a real estate investing website for thousands of dollars I would want my buyer to think that just because they by my website they are in need of a back end database to keep track of the millions of leads they will receive.

Nonsense!!!  I buy a few houses a month and receive 5-10 leads a day.  I don't need a database to keep track of my leads.  It's simple, most leads you get will be garbage, absolute garbage, and you know where those go. 

For those rare great leads, I jump all over them and buy them or at the very least make an offer, and I close them.

The only reason you would need to have a database is for those leads that have potential, but maybe the seller isn't motivated enough, the timing isn't right for you or a few other reasons.

But there aren't many of those, out of the approximately 200 leads I get a month maybe 5 are fit into that category. So there you are with a database of 200 leads which contains mostly garbage and a couple you closed on already to keep track of 5 people.  C'mon are you kidding me.  Seriously I wonder who actually uses those databases outside of "seminar land."

I don't know one successful investor and I have met plenty, that uses a database or spreadsheet to keep track of leads to buy houses.

Here's how the pro's do it, more or less with everyone having their own style.  We keep those leads as hard copies (paper) with the seller's info etc and we call them every now and then to follow up to see if anything has changed. 

The most successful investor I know keeps those leads in a pile on the passenger side floor board.

Myself, I just keep them in a file and call them every now and then.

I know your wondering so what, wouldn't be nice if you were organized and had a database of them all?

No I don't consider a spreadsheet with 195 leads of junk getting in the way of following up on the 5 that have potential.  That's a recipe for an unproductive headache.


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