7 Marketing Mistakes Real Estate Investors Make

When you are new to real estate investing, you underestimate just how important marketing is. For those who have been at it awhile, you may not be marketing yourselves properly to get the results you want. Marketing challenges are quite common for businesses of all sizes and affect equally those who are new to real estate investing as well as established pros.

Most times you know if your marketing is getting the desired objective. Sometimes, you aren’t as sure. Take a moment to look at the 7 biggest mistakes that are made in relation to real estate marketing. Keep these in mind and learn how to avoid having these costly mistakes eat up all of your profits.

Mistake #1: Not Developing a Marketing Plan

Whether you know/understand it or not, “Those who fail to plan, plan to fail” is law. No matter what type of business you are in, a marketing plan is a critical component of your success. It makes you come to grips with SWOT (Strengths, Weakness, Opportunities,Threats). From there, you can design the objectives and tactics to further develop your marketing efforts in the future.

Mistake #2: Not Planning a Marketing Budget

This business can be done inexpensively. However, that doesn’t mean that you won’t spend anything either. You need to spend money to publicize, market, and advertise your business to make it successful. As a general rule of thumb, you may spend at least ten percent of your revenue on marketing efforts. No matter what size your company, you need to have a marketing budget. In the beginning, it isn’t the size of the budget, but the consistency. Better to spend $50 @ month over 6 months than to spend $300 in one month.

Mistake #3: Not Targeting a Specific Target Audience

Trying to appeal to everyone doesn't work. Gary Keller’s Millionaire Real Estate Investor talks to the idea of “know your criteria”. Essentially it means to know and understand the types of properties you want to invest in. You need to understand that your market doesn't include everyone or every price range of home. So decide your target demographic and use appropriate media outlets to reach that audience. For example, if you have a small, 2 bed/1 bath low end condo, advertising it in the family oriented newspapers is probably not going to get you the results you want.. Perhaps advertising at the local grocery store might be a better target for your marketing efforts.

Mistake #4: Not Developing a Clear and Consistent Marketing Message

All your marketing materials, advertisements, and promotions need to convey a consistent look and message. You want your customers to know what you do or sell no matter where they see your name. This is part of building your brand. Logo’s are a part of your brand and should be included to help set you apart from your competition.

Mistake #5: Houses Do Not Sell Themselves


Many investors (both beginning and experienced) make the mistake of thinking that their house (or website to sell their house) is so great and so different that they don't need to market it at all. However, no one will know how great your property is, or that it even exists, if you don't tell them. Word of mouth and referrals can only take you so far. No matter how great your product, you need to advertise and market to get it sold.

Mistake #6: Not Clearly Defining the Product Benefits

We live and work in a highly competitive marketplace that is constantly changing and offering customers more and more choices. Were Lease Options a typical sales option 10 years ago? Today, the paper is full of them. Put yourself in the potential buyers’ shoes. Something has to get your attention to make you choose one house over another. Be clear to let people know why your house is better.

Mistake #7: Not Diversifying Your Media Mix

There was a time that you could put your house on the MLS with the keywords, “needs TLC”, “Handyman Special” etc and your house would sell. Media today is very fragmented, so you need to reach your audience through more than one outlet. So, if you plan on relying on bandit signs alone (or any one media), you are limiting your opportunity for success. If you are doing signs, then add flyers, car wraps, pizza boxes, direct mail, and any other form that you can think of. Each form of media helps to reinforce your message from #6 above.

Avoiding Marketing Mistakes in the Future

If you have been able to answer the marketing challenges above, don’t think you can stop there. Marketing is one area where you can’t rest on your laurels. Once things are going well, there is a tendency to let good marketing practices slide at times. This can have a devastating effect on your business.

Marketing is not a light switch. It is something that builds over time and then gets momentum. Stop it and see how hard it is to get it going again.

John Panico is the author of this article. John is an active investor of properties throughout NE Georgia. He is the General Manager of Local Guys Equities, LLC, one of the fastest growing real estate investment companies in Georgia. John founded the NE GA Real Estate Buying & Investing Group and wholesales properties to real estate investors around the country. Feel free to contact John about selling your house or other information.