Oct 18 in Law of 1000
The Real Estate Law of 1000 Explained
6 months ago, I launched Bob Knakal's new website for his new brokerage.
It's a sales machine. It does the selling for him.
Bob is getting calls from property owners who are presold after visiting his website.
Many owners are NOT even interviewing other brokers. They call and say "Bob, I want to sell my property. Tell me what it's worth and send over the exclusive agreement".
The results are insane. No more cold calling. Getting Exclusive Listings have become a cinch.
Anyone can replicate Bobs strategy no matter whether you are a commercial broker, residential, even mortgage financing.
Bob is a legend in real estate sales. His business is built on what I call the Real Estate Law of 1000.
Here's how it works.
Focus on a target market of 1000 owners.
In commercial property sales, annual turnover is approximately 2.5 - 3%.
In many commercial markets, the average owner has 5 properties in their portfolio. That means a market size of 5000 properties per 1000 owners. With 2.5% turnover, that's 125 sales per year.
Residential markets have higher turnover. Many local markets nationwide have an annual turnover of 6%. For every 1000 homeowners, 60 will sell each year.
The reality is, if you focus on 1000 owners, and you become a valuable resource, you will get a high percentage of the leads and sales in your market.
Here's an analogy. Approach your market like a gardener rather than a farmer.
Most brokers approach real estate like a farmer.
Farms are generally big, They require a lot of money to operate, tools, equipment, labor and skills. Brokers who approach sales like a farmer generally falter. No matter how smart they are. It just doesn't work to flail away in larger market like everyone else.
A gardener focuses on a small area. Lets use a tomato garden as an example.
In year one, the tomato plants start to grow. The gardener gets to know the soil, the fertilizer, the amount of water and sun. They know how to keep pests away.
Every year, the tomato plants get bigger. The tomatoes get juicier, Each plant produces more tomatoes. Everyone loves the tomatoes. People start to rave about them and tell their friends.
Once the gardener knows the formula. They can replicate the formula. Eventually, with a little help, they can expand to 10 gardens. Now they've become a farmer.
That's how the Real Estate Law of 1000 works.
Bob Knakal has followed this formula for decades. He started in a local market with 1000 owners.
Proof Stacking is the essence of our group. It's the process of promoting proof, creating trust and building valuable relationships in your market of 1000 so property owners call you.
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The Real Estate Law of 1000 Explained
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