Texting Compliance for Real Estate Investing: 3 Questions to Keep in Mind

It's no secret that the real estate investing space is in a constant state of flux when it comes to how best to reach prospects. You may have heard some chatter about whether or not texting is a viable option, and the answer is yes! But you need to be aware of what criteria must be met for this method to be compliant with the Telephone Consumer Protection Act (TCPA) law.  In this post, we'll go over the questions you should consider provided by our TCPA law group partner, which will help you decide if texting is right for your business needs.

Why Use Text Messaging for Real Estate Investing in the First Place?

SMS/texting is one of the best, if not the most, effective ways to reach a lot of prospects in a short amount of time when it comes to REI marketing. And, it is a lot more effective than traditional forms of communication like phone and email. Check out these facts:

• 62% of prospects want realtors to communicate with them via text messaging.
• The average response time for an email is 90 minutes. The average response time for a text is 90 seconds.
• Text messages get a 45% response rate compared to 6% for email.

Also, most realtors in your region are unlikely to use a service that allows them to send mass text messages. Stats show that 48 percent of realtors have trouble keeping up with technology. So, starting out with mass texting gives you an edge over the competition.

It turns out that customers actually want businesses to text them, too. Some realtors are apprehensive about utilizing mass text messaging because they're concerned that prospects or clients don't want to be contacted. These worries are unwarranted. According to one study, 89 percent of consumers would prefer to communicate with companies through text messaging.

How Does TCPA Impact My SMS Marketing Efforts as a Real Estate Investor?

The Telephone Consumer Protection Act (TCPA) restricts telemarketing calls, text messages, and facsimiles. It also places restrictions on the use of automatic dialing systems and prerecorded or artificial voice messages. Phone actions taken by collectors are also governed by the act. When TCPA is broken, consumers may file complaints with the Federal Communications Commission (FCC). Because consumer rights are regulated by the TCPA legislation, customers may bring claims against businesses that violate it.

In 2012, the FCC revised TCPA rules such as requiring businesses to obtain signed written consumer consent before making robocalls to mobile phones or making pre-recorded voice message calls and offering automated opt-outs during these types of calls.

This means that when it comes to lead-generating or phone marketing technology, real estate agents and investors should exercise caution when utilizing auto-dialing or auto texting services. Here are questions to consider for avoiding the TCPA's fines on auto-dialing and auto text messaging.

Three Questions To Ask Yourself Before You Send Your First SMS Text Message as a Real Estate Investor

1. Are you looking to buy something from your prospects or for them to buy something from you?

In general, remember these two key differences:

• It’s compliant to send a cold text to your prospects if you are looking to buy something from them.

• It’s not compliant to send a cold text message if you are selling something to them or offering a service where they will need to hire you.
  
  

2. Did the person opt-in to receive messages? Is the software you’re using automatically sending messages?

• If prospects have opted in to receive messages from you - verbally, written, or as a part of your website process - then it’s compliant to send them text messages.

• If you don’t have proof of opt-in, you may only send them a message if you’re not selling anything.
  
  

3. Is the software you’re using automatically sending messages?

• There’s a difference between semi-automated software, which allows you to reduce repetitive actions, and fully automated software that sends messages for you.

If the software allows you to click one button and send multiple messages at once, it is not compliant. If the software allows you to click one button now and send a message on a delayed schedule or on an automated drip, then it is also not compliant.

If the software follows a one-click one-send process, you can sleep well at night knowing it’s compliant.

• Can the software company provide you with a legal opinion letter to speak to their compliance? If not, stay away.

Compliant text messaging software is hard to come by in the REI industry. That’s why Lead Sherpa works closely with TCPA lawyers to stay up-to-date on federal guidelines to help guide our customers through the tricky TCPA landscape. We designed our SMS tool with always-on compliance, which is also continuously vetted by top TCPA attorneys and does not allow for robotexting or other non-compliant actions ever. It also automatically skips over TCPA litigant numbers — a list we update daily.

Text-based marketing is a highly effective way to grow your real estate business and the first step should be ensuring that you have compliant software. If you are ever in question just refer back to this article or download our free Evaluating Compliant Texting Software checklist to take on the go.