Success in real estate isn’t just about closing deals. It’s about creating consistent deal flow and increasing profit margins on every transaction. For investors like Scott Oots, achieving these goals requires a commitment to marketing, connecting with sellers, and building a strong team. Let’s break down the strategies behind generating steady leads and boosting profit spreads in today’s competitive real estate market.
Consistency Is the Cornerstone of Deal Flow
Most beginners focus all their efforts on closing one deal and forget about what’s next. This tunnel vision leads to periods with no leads, no contracts, and no income. Consistent deal flow means keeping your pipeline full at all times.
The key is simple: don’t stop marketing. Even when you’re working on closing a deal, your marketing efforts should continue. Many investors make the mistake of halting their outreach after landing a contract, waiting until payday to kickstart their lead generation again. This pause creates gaps in your pipeline and makes future deals harder to secure.
To maintain momentum, always reinvest a portion of your profits into marketing. Think of each dollar spent as creating opportunity. Without consistent lead generation, your revenue will stall.
Building a Reliable Marketing Strategy
Effective marketing doesn’t require flashy ads or guesswork. It requires a focused, repeatable system. For Scott, direct mail is the backbone of his marketing efforts. While others jump from strategy to strategy, he’s mailed the same postcard design for over two years, sending out 30,000 pieces weekly.
Direct mail might not sound modern, but it works. On average, Scott’s team sees a $12 return for every $1 spent. That’s because consistency builds familiarity. Sellers trust the name they see repeatedly on postcards, which often makes them the first call when it’s time to sell.
Here are some tips for implementing a reliable direct mail campaign:
- Mail regularly. Every 45-60 days keeps your name fresh in sellers’ minds.
- Commit to multiple touches. Mail the same list 6-8 times before deciding if it’s worthwhile.
- Analyze the results. If a list repeatedly fails, move on to a new one.
What works for one person won’t work for everyone. The best marketing strategy is the one that works for you. Test various approaches—pay-per-click ads, text campaigns, or even driving for dollars. Don’t get distracted by trends or “shiny object syndrome.” Stick with what proves effective.
The Role of Team Culture in Real Estate Success
A great product or service means little without the right people behind it. For Scott, investing in his team has transformed both deal flow and profit margins. His office operates with high energy—team members throw footballs, help each other on calls, and celebrate wins loudly with bells.
What’s the result of this vibrant culture? No employee has voluntarily left his company in over two years. Happy, motivated employees are more productive, and they create better experiences for sellers.
Here’s how Scott’s team culture contributes to higher margins:
- Accountability. Open communication allows employees to call out inefficiencies without fear of conflict.
- Supportive relationships. By frequently bonding outside work—dinners, drinks, or wine tastings—the team builds trust and collaboration.
- Celebration of wins. Ringing bells for closed deals boosts morale and encourages consistent performance.
Building a strong team isn’t just about hiring the right people. It’s about creating an environment where they want to stay and thrive.
Building Rapport for Higher Spreads
Getting a seller to choose you isn’t always about offering the highest price. Often, it’s about connection and trust. Sellers need to feel that you’re the right person to help them out of their situation.
Start every appointment with relationship-building questions. Walk through their home, but don’t focus on repairs or numbers right away. Ask about their family photos, how long they’ve lived there, or their favorite memories in the house. These small efforts build rapport and make sellers more comfortable working with you.
When discussing the offer, don’t rush into numbers. Sit down in a comfortable space—preferably a couch rather than a kitchen table—and keep the tone conversational. Respect the seller’s concerns, calmly explain your reasoning, and guide the conversation toward a win-win deal.
Common Rapport-Building Questions:
- “How long have you owned the home?”
- “Are these your grandkids in the pictures? They’re adorable!”
- “What’s most important to you in this process?”
By focusing on the relationship instead of the transaction, Scott’s team has increased their average profit margin from $30,000 to $70,000 per deal, with some as high as $170,000.
Follow-Up with Sellers to Build Trust
The work doesn’t end once a contract is signed. Sellers often need reassurance throughout the process. Assigning a transaction coordinator to stay in touch is a game-changer. From “congratulations” calls to status updates on title clearances, keeping sellers informed strengthens their trust in your team.
Here’s how to create a smooth follow-up experience:
- Welcome calls. As soon as a contract is signed, have someone call to congratulate the seller and explain the next steps.
- Regular updates. Check in frequently to reassure sellers about progress or address any issues.
- Transparency. If unexpected problems arise—like higher mortgage payoffs—communicate clearly and empathetically.
Satisfied sellers are more likely to work cooperatively, even in challenging situations. Their positive experience may also lead to referrals down the line.
Mastering the Art of Rejection
In real estate, hearing “no” is unavoidable. Instead of fearing rejection, embrace it as part of the process. Each rejection brings you closer to a “yes.” Scott encourages his team—and new investors—to get comfortable with rejection by seeking it out.
Start with simple exercises. Make unrealistic offers on random items just to hear “no.” These small experiments build resilience, so you’re more prepared to handle objections when they come from real sellers.
Rejection doesn’t mean failure. It’s an opportunity to pivot, ask better questions, or overcome objections. Keep moving forward.
Numbers on a spreadsheet might not inspire your team, but cold, hard cash will. Scott once withdrew $40,000 in cash to show his team what’s at stake. Seeing and holding the money served as a tangible reminder of why they work hard.
If your team struggles with motivation, find creative ways to make success feel real. Use visual aids, celebrate milestones, and emphasize the impact of even small wins.
Conclusion
Whether you’re chasing your first deal or scaling up, consistent deal flow and higher margins depend on a few key principles. Market relentlessly, focus on seller relationships, and invest in your team. Be prepared to hear “no” and trust the process of trial and error.
By building a culture that values people—both within your team and among your sellers—you’ll create a business that thrives. Take deliberate action today, and you’ll generate the deal flow and margins needed to reach your goals.
Ready to take action? Connect with Scott Oots at @TheScottOots on Instagram for more insights, and check out tools like Propelio to simplify your real estate investing efforts.
