Justin Silverio on Automation, Marketing and Scaling Your Business

Today, our guest is Justin Silverio, founder of Invelo, and the discussion is all about scaling your business. Justin has flipped houses and through experience, he knows how cumbersome it is to generate leads and follow up with motivated sellers.

Today, our discussion revolves around

1. What’s actually working in current direct-to-seller marketing?
2. Why consistency is the key for real estate investors?
3. How to scale your investment business without burning out?

How You Got Started in the Investment Business

I was an accountant at a venture capital firm. I loved the industry, and a part of me always knew entrepreneurship would be my path. I just wasn’t sure where life would take me.

I started flipping houses back in 2010 and quickly became skilled at finding off-market deals. I was doing so well that people started asking, “How are you finding these awesome deals?”

Mostly, I was using direct mail. That led me to start a company called Open Letter Marketing.

Open Letter Marketing

About a decade later, I decided to build "Invelo," which addresses another unique market problem.

Real estate investors struggle to scale because they lack consistency and don't have the right tools. Many investors use three to five different platforms to manage their entire sales cycle. The software ecosystem is completely disjointed. Our system provides all essential tools under one roof.

We provide clear analytics and KPIs to help investors identify what needs to change or improve. (With our software, investors can pinpoint the small tweaks that can lead to better performance.)

Invelo

What If You’re Getting Leads But Not Converting Them?

In our platform (Invelo), we have a lead pipeline. Investors can see where the lead is getting stuck and bringing down the conversion rate. The follow-up process is automated because most investors do not follow up enough, and it’s a widely accepted rule that 80% of leads come through follow-up.

Consistency Vs Marketing Message

There are a few reasons for following up with a prospect:

• The seller wants too much money.
• Not interested in selling right now.
• Receiving or evaluating offers from other people.
• Doesn’t trust a stranger.

The marketing message will depend on the reason for denial. If I have talked to somebody on the phone, then the follow-up touchpoint will also be a text message or a call. I like to maintain the personal touch. If the prospect is interested in selling later, then I might follow up with a direct mail piece.

As for consistency, I have a favorite quote about it:

“Bad marketing done consistently will outperform good marketing done inconsistently.”

How Investors Should Scale While Staying Lean and Profitable

Before trying to scale, make sure you’ve established a solid company. Understand your data (most people don’t). You must know your KPIs and numbers. Your team should have a strong lead acquisition system along with effective follow-up strategies. Your business also needs reliable systems for disposition and transaction coordination. Make sure you feel comfortable with the current moving parts of your business before trying to reach the next level.

Accelerate your marketing efforts slowly (maybe 25%) to avoid outpacing yourself. An aggressive marketing approach can bring in more leads, but you may not be able to convert them. Scale gradually, then pause to cool off and see how everything is working out for you.

You can hire someone to help you scale. Just make sure you can offset the cost of hiring with incoming profit.

Hiring Your First Team Member

It’s scary, but it’s something that must be done for scaling. If you need to hire somebody, do it—and make sure the new hire is trained and able to duplicate your results. Once they start hitting your KPIs, you can continue scaling while bringing on more team members.

Your Data Can Make or Break Your Business

Real estate investors often focus on negotiation and marketing, but they don’t take data seriously. What’s your lead generation source? Data selection is critical for business success. Avoid doing efficient marketing to random lists.

Let’s say you’re in a brand-new city with a population of 125,000–200,000. There are about 50,000 properties. Use list stacking to come up with 10,000–12,000 suitable records, and then narrow them down to 2,500–3,000 records. This will give you a high-quality list to start your marketing efforts.

What’s Next for Justin Silverio?

At Invelo, I’m excited about making things more intelligent and easier for customers. Most people want freedom or money. That’s why they become investors. I want to educate people about the right mindset and consistent marketing so they can achieve their goals.

On the family side, my kids are growing. My daughter is 14, and my son is 12. We are spending more time with our kids. My wife and I would love to travel when the kids are off to college.

You can read more about Justin and his company here: https://inveloapp.com/