WS1893 Optimize Your Marketing And Sales | Sharad Mehta

Welcome back to another episode of the Your Daily Real Estate Syndication Show. In this episode,  Whitney Sewell interviews Sharad Mehta, the founder and CEO of Resimpli. Sharad introduces Resimpli, a cloud-based software platform designed to make real estate investing more efficient. The platform integrates data management, marketing, sales, and operations, providing investors with a comprehensive solution for their business needs.

One of the key points discussed in the episode is the importance of choosing the right marketing channel. Sharad emphasizes the need for consistency in marketing and advises investors to select a channel they can commit to for the long term. While every marketing channel can be effective, it is crucial to be consistent and persistent in order to see results.

Tracking marketing efforts is another crucial aspect of successful real estate investing. Sharad advises investors to use different tracking numbers for each marketing campaign to accurately measure their effectiveness. This allows investors to determine which campaigns are yielding the best return on investment and make informed decisions about future marketing strategies.

Consistency and follow-up are key to success in real estate marketing. Sharad stresses the importance of having good follow-up processes in place and using automation to stay in touch with potential sellers. By staying on the radar of motivated sellers and maintaining regular communication, investors increase their chances of closing deals.

In conclusion, Sharad Mehta provides valuable insights into making real estate investing more efficient and effective. Resimpli, offers a comprehensive solution for managing various aspects of the investment process, from data management to marketing and operations. By leveraging data, targeting motivated sellers, and maintaining consistent marketing efforts, investors can improve their chances of success in the real estate market.

Listeners can reach out to Sharad directly via email at sharad@resimpli.com  and learn more about Resimpli, at Resimpli.com. Don't forget to like and subscribe to the Real Estate Syndication Show for more insights on building wealth in real estate. Visit lifebridgecapital.com to start investing today.

VISIT OUR WEBSITE
https://lifebridgecapital.com/

Here are ways you can work with us here at Life Bridge Capital:
⚡️START INVESTING TODAY: If you think that real estate syndication may be right for you, contact us today to learn more about our current investment opportunities: https://lifebridgecapital.com/investwithlbc

⚡️Watch on YouTube: https://www.youtube.com/@TheRealEstateSyndicationShow

📝 JOIN THE DISCUSSION
https://www.facebook.com/groups/realestatesyndication

➡️ FOLLOW US
https://twitter.com/whitney_sewell
https://www.instagram.com/whitneysewell/
https://www.linkedin.com/in/whitney-sewell/

⭐ Be Our Guest!
We are continuously working hard to help our listeners with their journey to real estate syndication. If you think you can add value in any way to our listeners who are in commercial real estate, then we’d love to have you over.
Apply here: https://lifebridgecapital.com/join-our-podcast/

Transcript

Sharad Mehta: You know, that's, that's like one of the most frequently asked question we get is what marketing channel I should use in my business. And our answer is always the same. The one that you can stick with the longest at the end of the day, every marketing channel works. Right. But you have to be consistent enough.

Whitney Sewell: This is your daily real estate syndication show. I'm your host, Whitney Sewell. Today, our guest is Sharad Mehta. He's the founder and CEO of ReSimply, a cloud-based system that makes real estate investing more efficient and automating tasks, create detailed SOW for rehab projects, creates contracts with digital signature support, has deal analysis tools, etc. I mean, he goes into it in some detail and what it can do for you as far as finding off market deals. We talked a little bit, I mean, a little bit about how that applies to commercial real estate and whatnot and even some ways that are interesting as far as being able to send mailers to Owners to get their attention still right of the market is pretty saturated in a number of areas and so you're here him talk about different ways that people are standing out even in you know mailing to current owners. And maybe the benefit of that, even if they haven't thought about selling yet, you're going to hear that today when he goes through or even some importance of things that the importance of the consistency and the follow up and he's going to dive into some methods behind that as well. Jered, welcome to the show. Honored to have you on. You have had some success in a number of areas that I know, you know, we're going to bring out some of those skill sets that you have that have helped you build success in a number of areas. That's going to help the listeners today. So welcome.

Sharad Mehta: Thank you, Whitney, for having me on the show.

Whitney Sewell: Yeah, honored to meet you and to have you on. You know, I know you are the founder of ReSimply, and I thought I'd help the listeners to know a little bit about what that is, because we're going to dive into some of the skill sets that have helped you build that business and maybe even some of the things within that that could help the listeners also.

Sharad Mehta: Yeah, absolutely. So ReSimply is an all-in-one software for real estate investors. So the way we like to look at it is a successful real estate investors will have four pillars to their business. They would have data, marketing, sales, and operations. And that's kind of what we built with ReSimply. You can use the data management side of it, then you can use it for marketing, like you're, you know, sending out direct mail, calling, websites, and then on the sales side you can use it for as a CRM, calling, texting, sending emails, and on the operations side you can use it for your vendor management, for your bookkeeping and accounting side of it.

Whitney Sewell: You know, as we as our businesses grow, we are like each of those pieces were growing in different ways. You know, it's interesting to be able to have all that in one platform because it's it's it's like we're constantly piecing together things to do that those things individually. Right. Yeah. And it's hard for them to communicate. and often needed, right, for them to be able to, or at least to have it all in one place. And so that's, that's really neat. And so, you know, you know, we were talking about beforehand a little bit, you know, the marketing, data tracking, obviously, that's a big part of the, you know, what the software can do as well. But let's dive into that a little bit. I know you mentioned, like, helping do the software, helping people find deals, right, or figuring out, you know, the data and the sales piece component. I guess elaborate on some of that a little bit, and we'll dive in.

Sharad Mehta: Absolutely. So on the data side, I would say the most important functionality that we offer is, let's say if you're a real estate investor and you're looking to reach a list of owners through some direct to seller marketing, let's say direct mail. you would get your list from let's say county you would go to public source to get the list or you would get it from any other source that you have that you're using in your business now what happens is there's going to be some overlap in all those different lists that you're getting So one of the functionality that we offer is called list stacking. For example, it stacks all your list and it tells you which records appear in each of the record, how many lists that they're appearing. So let's say if you get a list from a public, so these are people that are behind on taxes, behind on mortgage payment. So each list, think of it as a motivation point that the seller has. So you get people that are behind on taxes, people that are behind on their mortgage payment. That's one list. The other would be some other distress point like their property is in good condition right or they have they're going through a divorce or some other financial personal difficulty that would be another motivation point so let's say you take these two lists put it in list stacking now we'll give you let's say a thousand records in each list you put it in list stacking and it tells you 500 records between the two lists are common so they are behind on their taxes behind on mortgage and they're also going through a divorce for example so if you had limited budget or if you wanted to be very targeted with your marketing you would want to go after the 500 people before you go after the entire list because those 500 people have multiple motivation point rather than just one motivation point so that's the that's the most important piece on the data side is to know identify the highly motivated sellers that you have in your business that you should be going after but rather than doing marketing to each of those lists thousand and thousand separately and then you you know sending let's say 2000 mail pieces now you're only sending 1500 because you have 500 overlap between the two lists and those 500 you may want to send a different mail piece because they appear on multiple they have multiple distress lists that you have so that's i would say that's the most important part of like the data management side

Whitney Sewell: Yeah, yeah, that's interesting. I mean, it's, it's so much more efficient to be able to narrow down to the 500 than it is to send 1000, right? Absolutely.

Sharad Mehta: Don't imagine like doing this on a much larger scale, you know, instead of like 1000,000, let's add like a couple of, you know, zeros after let's say you have 100,000 records, right? Or 10,000 records, 100,000 records. Now imagine doing this, you don't want to send it to the entire list that you have. If you want to target now instead of like 500, you have, you know, 5,000, 50,000 records that you're going after.

Whitney Sewell: Yeah. What types of properties would you say this works best for?

Sharad Mehta: I mean, we have companies that are doing primarily single family, but it also works for multifamily storage units. You have mobile home parks. The important thing is to identify the people that have high motivation to sell. That's kind of what you want to start out with. You want to start out with people that maybe have some sort of motivation to sell their property. Maybe, again, there's some financial difficulty. They have some personal distress like bankruptcy, divorce. It works for all businesses. The fundamentals stay the same. You want to identify the distress point and then go after the highly motivated sellers.

Whitney Sewell: Yeah, no doubt about it. What are you thinking through even the data component for like commercial real estate specifically? What kind of data are you going to be focused on in that sphere versus say single family?

Sharad Mehta: I mean, we don't, we don't provide any data on, uh, through simply. So our recently starts on once you have your data from, you know, other sources that you have. So once you have your data, because that's, that's one component that. all investors having all different sources to get their data. But once you have your data, you can put it in pretty simply and then start from there. But once you have that, you want to identify the same thing. On a single family, you want to go after people that have some equity in their property. If it's a $100,000 house and the seller has a loan of $100,000 on the property, you may not want to go after that. So you want to look at the same thing on the commercial side of it. On the commercial side, what you may have is someone who has, let's say, their interest rate is going to adjust soon. They're already very highly leveraged and now their interest rate is going to adjust and their mortgage payment, the loan payment is going to go up on the asset that they have. you may want to go after that because they may not be able to afford. They may have bought at the peak of the market with an interest rate, low interest rate, and that's how the asset made sense. But now the interest rate is going to go up. It won't make sense. It's not going to be a cash flowing property. That's where you could come in and go after the investor, the property.

Whitney Sewell: Speak to the, say, the marketing and sales component. What happens then or what you advise to take the best advantage of those 500 or so?

Sharad Mehta: I mean, depending on the asset type you have, right? I mean, if you're going after single family owners, then you can do direct mail, you can do cold calling, you can do texting, you can do radio ads, TV ads. But if you're going after, as you're going after more expensive, higher priced assets, Generally, it's safe to say those investors, those owners will be a little bit more sophisticated. So you may not want to cold call them or send them a text message. What we've noticed, the companies that are using our platform to go after commercial properties or multifamily properties or mobile home parts. they're spending a little bit more money in the marketing. For example, if they have a list of multifamily apartments, rather than sending them a postcard, it's like 50 cent postcard, maybe send them like a certified letter, maybe send them a FedEx envelope, maybe send them a UPS envelope. So you know your mail gets delivered and it shows you a little more intent than, you know, sending a 50 cent postcard. So that's what you would want to do. I mean, you could also cold call, but you want to have a very targeted list. You don't want to have a virtual assistant making the cold call. This is this is something you want to be calling because you would have a smaller list, very targeted list. It's a highly priced asset. It's not a $100,000 house. It's a millions of dollars worth of property. So in that case, you would want to get involved, call the targeted list of people. But I would say typically what we notice is it's the direct mail, a good quality direct mail piece that tends to work well. If you have a list of let's say 50 assets that you've identified, maybe send all of them a FedEx envelope, a UPS envelope. Every single one of them is going to get open. How many times you've received a FedEx envelope and not open it, right? So that's that's the kind of thought you want to put into it.

Whitney Sewell: Not very often, maybe not ever, right?

Sharad Mehta: Exactly. Exactly. So those are the kinds of things you want to think and do with the marketing for, as you go up on the asset class that you're going after, it's the marketing piece that you want to start tweaking in your business. The fundamentals will be the same, you know, on who's going to sell, they're going to have the, at the end of the day, someone who wants to sell, they have some motivation, some need financial, personal, but how you reach out to them, that's going to be different. Like the marketing channels that you reach out to them, it's going to be different. You know, it's going to be very rare, but you have an owner of a 300 million apartment complex going to Google and say, how do I sell my property fast? That will happen a lot on the single family, but it's not going to happen often or ever on the commercial multifamily property. So you want to reach out to them. And I would say. If you are not sure which one to start with, I would say direct mail would be the best one to start out with a good quality direct mail piece.

Whitney Sewell: Yeah. How often are you reaching out to sellers or to potential sellers, I should say?

Sharad Mehta: Say, like, depending again on the asset type, if it's a, you know, single family property, anywhere from monthly, I mean, it could even be weekly. Let's say someone is going through a pre foreclosure and they're going to lose their house in, let's say, a month. You don't want to send them every month because you'll just send them once and then a month later, they may not even own the house. So someone like that, you want to mail them every week. If they have a foreclosure date set up or same thing on the tax delinquent, if they're going to lose their property. But on a high equity typical list, I would say every month or every other month would be fine. But on commercial properties, I would say every other month just to start out with and then stay on their radar once a quarter, once every six months. The thing with marketing is you're not sending a marketing piece. I mean, it's going to happen sometimes where you send a marketing piece and it just happens to get to the seller at the right time at the right moment. They're like, hey, Whitney, I'm ready to sell my property. How much can you offer me? Can we start talking? Right. But most of the time, what's going to happen with the intent of the marketing is you're sending out the marketing piece and you're planting a seed in the seller's mind. Hey, you may not be ready to sell your property, but I just want you to know I'm a serious buyer and I'll be ready to buy a property whenever you're ready. So that's kind of what you want to do. I would say once a quarter is a pretty good cadence for sending the marketing pieces out. It's just about like building reputation, building your rapport with the seller and just letting them know how serious you are about buying their property.

Whitney Sewell: Yeah. And now it's interesting. You're planting a seed. Like you're talking about that. Uh, they may not have thought about selling before. Right. But now they are thinking about it, whether they liked your first letter or not.

Sharad Mehta: Exactly. I mean, like if you put it in a different context, right? I like to give an example of, let's say you're not in a market to buy a car right now. Let's say you own a Toyota. And then every quarter, once a quarter, you get a postcard from your Toyota dealership, right? It's like, Hey, Whitney, we have a holiday sale going on. Then you get, hey, we have a, you know, Memorial Day sale going on. We have a Thanksgiving sale. You're not in the market to buy a car, but it just, it just like planting subconsciously, you know, this dealership out there that sells car. So your car breaks down in a year or two, or you decide to upgrade. It just naturally, you're going to think of that dealership. Just that's just going to happen because that dealership has planted a seed in your mind. That's exactly what you're doing with your marketing. You want the sellers to think of you when they're ready to sell their property. You know, you're not, you're hoping that when you send your first mail piece, that someone would be, it would reach them at the right moment, you know, at the right time, but it's not going to happen very often. It's going to be very rare, but you're hoping that whenever they're ready to sell their property, they give you a fair chance to make an offer to do due diligence on their property.

Whitney Sewell: Yeah, yeah, no doubt about it. Speak to the maybe the tracking component after that, you know, or, you know, you've sent out a bunch right of letters, you know, and how do you track that afterwards? How do you know what's happening? Or, you know, I don't know. I'm sure some people respond and aren't happy probably with your your letter, you know, or maybe maybe they are.

Sharad Mehta: Yeah, absolutely. So that's a great question. So one very important piece of marketing is, you know, you're sending out marketing to know which one is actually working. So imagine you have a list of owners, like going back to an original example of, you know, we have a thousand people on, let's say a list of tax delinquent owners, and we have another thousand people on, you know, going through bankruptcy. Let's just take that example. if you were not tracking that separately what you would do is you would send you would send the same mail piece to both the list let's say if there's no overlap just for this example let's say there's no overlap you send thousand meal pieces to people that are behind on taxes thousand meal pieces to people that are going through bankruptcy okay you send out 2000 pieces of mail, you get people calling back and let's just say just for this example to keep it simple, you end up spending $2,000. Okay. you get a seller to call back, you end up buying the property and let's say you make $10,000 on it. Okay. And you look at your numbers and like, this is fantastic. I spent $2,000 and I made $10,000. So I have five X return on my investment. So every dollar that I put in, I got five X back. Let's say you can repeat it. Now the question would be, Was it the tax delinquent list that made you money or was it the bankruptcy list? Like, did you really have to spend $2,000 to make 10,000 or could you have just mailed to the bankruptcy list and spend only a thousand dollars and made the same $10,000? So instead of actually having 10 X on your market, instead of having 10 X on your marketing, you're only getting five X because you're, you're not being efficient with the market. You're not tracking it. properly, not tracking it correctly on how you should be tracking. So I think that's where we noticed a lot of inefficiencies in how the investors are running their business. Generally speaking, the biggest expense the investors have on their P&L is marketing. And if you can be efficient with your marketing, if you can go from, let's say 5x to 6x, 7x or 10x on your marketing spend, imagine all of that money, it's going right into your net profit. It's actually going to be higher because as you get more efficient in your marketing now you need less sales people because previously you were sending 2,000 meal pieces now you're sending only 1,000 meal pieces so you need half the staff that you needed previously so imagine if you add a couple of zeros to these numbers like what a huge difference that would make instead of spending you know 2,000 and making 10,000 right let's say you add a zero you're spending 20,000 making 100,000 you're spending 200,000, you know, and making a million dollars. So that's where you start gaining a lot of efficiency in your business is by tracking your marketing spend on what's working and what's not working in your marketing.

Whitney Sewell: Yeah, it's a, if you're not tracking it, you're not going to know. Right. Yeah, exactly. You're not going to know how to improve it. I, we look at our marketing stuff all the time and it's always been a, man, you know, you look at that big expense and you think, is that justified? Is it not? Sometimes it's hard for us to know, you know, the, the best places we're, we're spending more in our marketing. It sounds like here, if you have your list, your list segmented and you know where it came from, then you can look back to see where, where you had the highest impact.

Sharad Mehta: Yeah, so how you track that is simply as first you track your different lists that you have, you stack them against each other. So you have a highly targeted list of owners that you're going after. The second would be now going back to the example of mailing to tax delinquent and your bankruptcy list. What we would do is we would use different tracking numbers. So you can exactly track the thousand meal piece that you send out to the tax delinquent list versus the thousand meal piece that you send out to the bankruptcy. How many people actually call back because you have now you have a different tracking number for each marketing that you're doing. So, you know, exactly you can identify dollars and revenues to each marketing list. You can say, all right, the thousand meal pieces that I sent out to tax delinquent list based on the tracking number spent thousand dollars. And I got, let's say 50 people to call me back. on the bankruptcy list, I sent out the same, you know, thousand mail piece of exact same mail, exact same mail design, but I only had 10 people to call back. But those 10 people were highly motivated. I got eight appointments out of it and I got a deal out of it. But the 50 people that called on the tax delinquent list, I got 50 calls, but no appointments and no deal out of it. So that's how you want to start looking at data. Now imagine you're going into another market, right? You're expanding your market. Let's say you're in California market. Now you want to start expanding to Nevada market, for example. You have the data in your business to make an informed decision knowing in my market, I had the bankruptcy list that gave me 10x ROI on my marketing spend. And the tax delinquent list gave me zero ROI. So now you can confidently make a decision going into a new market, which marketing channel or which list you should go after because you have data to prove. It may not exactly replicate in the new market, but at least You're not going based on your gut feeling, you're making an informed decision. And as you're scaling your business in the existing market, you know, if you were only mailing 2000 people, now you have more marketing budget to spend, you would want to expand your bankruptcy list because you have data to prove that for every dollar that you're putting in, you're making 10x on your marketing spend.

Whitney Sewell: Yeah, man, some great tips and tracking and it's just so important, right? And for the sake of time of this segment, just so listeners know, you know, we're doing numerous segments with Shred. And Shred, what about, you know, lay out a few guidelines, though, here for getting to that first deal within the first 90 days before we have to go?

Sharad Mehta: You know, that's like one of the most Frequently asked question we get is what marketing channel I should use in my business. And our answer is always the same. The one that you can stick with the longest at the end of the day, every marketing channel works, right? But you have to be consistent enough. It's going back to the example of sending the FedEx envelope, right? They're not cheap. You're going to be expensive, but let's say you only send out one, one time. You don't get any deal and you get discouraged. you got someone just cute enough about you, but you may not have got them enough motivation to call them but maybe something happens with them maybe they miss a mortgage payment maybe they're going through a bankruptcy maybe they're going through a divorce and if you had sent them another mail piece a couple of months or three months later there's a very high likelihood that they would have called you so i think the most important thing is being consistent with your marketing and having the right expectations you know if you're going to send a mail piece and expect to get a deal you may get lucky you may hear other people that it's happened to, but don't have that expectation. It's like going to a gym one time and expecting six, uh, you know, six pack. It's not going to happen. You know, it's not going to happen to anyone. So you have to be consistent with your marketing day in, day out and have good follow-up processes, right? You don't want someone to call you and then you don't have a follow-up process. And then once someone calls you have the automation, maybe you have these automations in recently where The system recently would automatically send a text message, remind you to call the seller, send a direct mail piece out, send an email out. Make sure you have that automation. Someone picked up the phone to call you. They must have had some motivation deep down. They may not be ready to sell right now, but they may have thought about it at some point. That's why they called you. now make sure you stay on their radar like once a month once every other month through calling or texting you don't have to always make a sales pitch but like hey mr seller i'm just going to see how everything is going you know just want to let you know i'm still interested whenever you're ready to sell you may not be ready right now but whenever you're ready to sell we're available to buy your property that's that's it just so that you're letting the seller know that you're going to be ready to buy the property whenever they're ready to sell

Whitney Sewell: Consistency and key is so key, right? Consistency and follow-up. I've heard, I mean, that's so important in so many aspects of life. I feel like you're talking about the GM analogy, no doubt about it, which I could be a little more consistent there, I think, uh, you know, but finding deals is no different. Right and staying in front of sellers staying in front of investors you know whatever it may be especially on the marketing piece i mean that's so much of marketing isn't it like just staying in front of people people talk about i was talking to a marketing guy the other day and he was like we were talking about open rate on something as simple as emails you know and it's like. You know, while that's important to track, it's important that you're just in front of them, right? They're seeing your name even in their inbox, even if they're not opening it, you know? Absolutely. And so it sounds like even this piece of mail, you know, would be similar, right? You know, even if they don't even open the first one, they know about you now.

Sharad Mehta: Yeah, exactly. Or you could do like a custom envelope, right? You can do a customer envelope with your branding. So even if they don't open it, it's just like subconsciously, they know that the mail piece came from you. Right? Just like small little things would make a huge difference in your business. It's like anything in life, like you're so right, Whitney, anything in life, if you want to get results, you have to be consistent. That's that's what it's all about. You have to be consistent. Yeah.

Whitney Sewell: Brad, tell the listeners how they can get in touch with you and learn more about you and ReSimply.

Sharad Mehta: Absolutely. So I'm not on any social media. So if they want to get in touch with me, the best way is my email, which is Sharad, S-H-A-R-A-D at resimpli.com, R-E-S-I-M-P-L-I.com. And if they want to learn a little bit more about Resimpli, they can go to Resimpli.com.

Whitney Sewell: Thank you for being with us again today. I hope that you have learned a lot from the show. Don't forget to like and subscribe. I hope you're telling your friends about the Real Estate Syndication Show and how they can also build wealth in real estate. You can also go to lifebridgecapital.com and start investing today.