There are two things you can actually control: the market you’re going into and the marketing you’re going to do. By focusing your goals on metrics you can have an impact on, you have the chance to move your business forward faster. In the third part of our Virtual Profits Workshop, we’re going to make a simple marketing plan with actionable goals, so pull out your workbook and commit to your personal success.
Rather than trying out every kind of marketing under the sun, I want you to narrow it down to two choices by asking yourself questions like:
- What does my end buyer look like?
- What kind of marketing works in this particular area?
- Have I given this particular marketing 100% of my effort?
Working backwards, we’re going to illustrate how much marketing you need to do to yield a steady flow of leads from cold calls. Using this strategy, you’ll be able to determine how much money and time you need to spend to get the results you want. You don’t want all of your eggs in one basket, so choosing a couple of different channels will protect the leads you get.
We’re also going to cover how marketing, automation and delegation will give you more money, time, and freedom. I resisted for years the move to a CRM, so if you’re like me, the longer you put off the trifecta of these time management tools, the longer you put off your success. Gavin and I are going to share how we use these tools to create a stress-free life.
Sit down with us, make a simple marketing plan, and take massive action. There are opportunities coming for real estate investors who have a system in place and are ready to scale. Is that going to be you?
Watch and Learn:
Listen and learn:
- The average calls a VA can make per hour, and how that translates into leads.
- Giving the seller more options puts you in a position of trust.
- Why you absolutely need to have a CRM.
- Where are the buyers buying houses in your market?
- Using two or three offers improves your rapport with a seller.
Mentioned in this episode:
Download episode transcript in PDF format here…
Joe: And what’s going on, guys, Joe McCall from the Real Estate Investing Mastery podcast, and I’m doing a little video introduction here for the next series of four to five podcasts that we’re going to be releasing. About a month ago, my coaching business partner, Gavin Timms, who’s the guy you can’t see that very well. We did this workbook. We did a workshop where this workbook came from, and it was really, really good. It was an all day workshop. We called it the Virtual Profits Workshop. And on that workshop all day Saturday event, we did a lot of teaching. We taught people how to find deals, how to talk to sellers, how to find sellers, how to find buyers. We talked about systems and processes and we walked through case studies of actual deals is a really, really good event.
Joe: And so I said, we’ve got to release this as a series of podcasts. And so that’s what this next four or five episodes are going to be all about. And so I’m not going to record a new introduction for each of them. We’ll just probably replay the same intro to those four podcasts. So if you’ve already heard this before, my apologies, but it was a really good podcast and you’re going to walk through this stuff in this manual. And in fact, what I might do in fact, I will do this if you go to RealEstateInvestingMastery.com, RealEstateInvestingMastery.com, I’ll have my podcast guy David, put this workbook. It’s a 20, 25-page PDF. I’m going to have him put this in the on the website for the episodes. If you go to Real Estate Investing Mastery over all my podcasts are.
Joe: And that’s where you can get show notes and transcriptions links and things like that. So I want to encourage you to go get this workbook because it’s going to be really helpful for you. We actually use this as our agenda for notes. And so there’s a lot of things that are really important, points that are kind of like fill in the blank in this workbook. So Gavin and I, we’ve been working together for almost five years, maybe a little bit more. And he’s a great coach. And so he’s kind of the main coach in my publishing education side of my business. And it was really good. One of the things that we did was we interviewed four different coaching clients that are doing really well, doing deals part time and full time that are just crushing it. And we interviewed them and talked about what’s working now. It wasn’t just a way that we can kind of share and brag and get nice testimonials.
Joe: It’s really was more educational, like what’s working now in the industry that people can use. And so I think you’re going to find a lot of value out of those podcasts. So, again, we start with what’s your big why? Why are you in this business? Why are you doing what you do? And then we talk about the technical stuff of what is it that what are the tools that you need? How do you find the sellers? What do you say to them? How do you make the offers all that good stuff? So I think you’re going to get I don’t think I know you’re getting a lot of value out of these podcasts. So if you’re interested in getting this workbook right here, go to real estate investing, mastery dotcom, do a search for Virtual Profits workshop. We’re going to be calling these podcasts Virtual Profit Workshop.
Joe: And each of them will have a each of them will have kind of a title or a subject. And on the show, notes will be a link to get this workbook. Also, if you want to work with me and Gavin, if you want to be our next success story, somebody that’s actually doing deals, then I want to encourage you to go to CoachJoe.net, CoachJoe.net. That’ll take you to a page that explains the program that Gavin and I have and what we do with folks. It’s an application only process, so we don’t take everybody.
Joe: In fact, we turn down a lot of people that just aren’t ready for it. And if you’re wanting to, though, to get started, if you’re wanting some help with getting your marketing set up, your system set up, if you want some done with you and some done for you, I’d encourage you to go to CoachJoe.net, that’s CoachJoe.net and apply. It’s just a simple application. Tell us a little bit about yourself. Tell us about your goals or situation. Where are you now? Where do you want to be? And we’ll get on the phone and see if we can help you. OK, so go to CoachJoe.net for that. Enjoy these episodes, guys. I know you’re going to get a lot of value out of it. I’m hoping that you do. And this might be, I feel like some of the most important podcast episodes that I released in a long, long time. So enjoy them and I will see you guys later. Don’t forget to get the show notes, the transcripts, this workbook, all of the links that we talk about.
Joe: Go to Real Estate Investing, Mastery, Real Estate Investing, Mastery.com look up on the search bar, Virtual Profits workshop and you’ll find these four or five episodes. We’ll see you guys take care.
Joe: I’m going to share my screen with you guys. Awesome. All right. Can you see my screen? OK, cool. This is a marketing plan, OK? And this is in your workbook, OK? This is in the workbook. And write this up and we’re just going to help you do a simple little marketing plan. And what we’re doing is we want to help you break this down into goals that you can control. You want to make ten grand a month. You can’t control that. You need to do one or two deals a month. You can’t control that. If you need 30 leads per one deal, you can’t control that. You can’t control that. If you’re a cold caller is going to be making five outbound calls or five outbound dialing, five hundred calls. And you can’t control how many leads come from that.
Joe: But what you can control are your daily activities. And what we want you guys to do here is have a simple marketing plan. And we just want you we want you to do this now. We don’t want you to write this down and think about it and then put it off till later. We want you guys to make decisions like looks like we just did a little bit ago. We want you to make a decision on I’m going to make, I’m going to do one deal a month on average profit of this and this money over this amount of time. And I’m going to go after these three markets. Now, here is the marketing plan. You’re going to walk out of this workshop with your goals written down. The market you’re going to go into and the marketing that you’re going to do. And we’re also going to show you later how to make offers. But this is what we want you to write down. Super important.
Joe: What’s your monthly income goal? I’m just going to kind of walk through this right now and you can kind of write it down with me as we go through here. Your marketing, let’s say, your monthly income goal is ten thousand and your average profit is five thousand dollars per deal. So how many deals a month do you need to do now? You’re again, your average profit might be seventy-five hundred dollars, OK, you might be conservative, might be three thousand dollars, but let’s keep it at five grand, which means you need to do two deals a month. Right. And how many leads do you need per deal on average. And the more you do, the better you get. But you might need thirty leads per deal. How many leads per month? Well, two times thirty is sixty. Now let’s break that down in two weeks with sixty divided by four weeks, you need fifteen leads per day. You take that divided by five.
Joe: And how many leads do you need per day? Three. Now my encouragement to you is try to get at least five leads a day. That’s your goal. If you can make it where your goal is to talk to five sellers a day and make at least three offers a day. That’s kind of what you should be focusing on so you could do something like this. So let’s say you’re making five leads per day, but you’re making offers on seventy five percent offers. So then you’re making three offers a day, something like that. OK, this is what you can control now. You can control getting three to five leads a day, making two or three offers a day. This is your goal. Now, what we’re going to do here is start looking at, all right, what are the different marketing types that I need to do? And we’re going to pick two of them right now. We’re going to pick two of them. It’s OK. If you don’t understand, you can change this later. Don’t worry about making a mistake. You can’t make a mistake. This is just a written down plan. This is something you can start with and change as we go.
Joe: Marketing type number one. Let’s just say it’s cold calling. No, no. Let’s do something simpler because I don’t want to overwhelm you with cold calling. Is a lot of you guys, like, I don’t even know how to do that. Let’s make it simpler. Let’s say texting rentals and fizbo. That can be Craigslist, Zillow, Facebook marketplace, go Section eight, military by owner. There’s a lot of different resources and sites that you can use. So let’s just keep this simple here again. And you may want to do this on like three different types of marketing, but fifty percent of your leads come from this type of marketing. OK, so that means how many leads do you need per month? How many leads per month? So we’re going to take fifty percent time. Sixty. OK, so you’re going to need thirty per month now with texting. Let’s just say on average you get an eight percent response rate.
Joe: So if you send out one hundred texts, you’re going to get eight people that say, yeah, I might be interested. You know, like when I send for sale by owner text, I say, Hey, Jim, saw your house on address, I’m an investor. Is your price negotiable? So when I do that in a text, they realize No. One, I’m an investor. No. Two, if they respond back, yeah, I’m open to negotiate.
Joe: That tells me they’re OK with negotiating. So I’m going to call them. All right. So let’s say your average response rate is eight per cent. That means I need to contact if I take thirty divided by point eight thirty divided by zero point zero eight. We’re doing some math here. I need to contact three hundred and seventy-five a month. OK, I need to send out three hundred seventy-five text a month. That sounds like pretty overwhelming. Well let’s break it down into by week. So I take three seventy five divided by four, that is ninety four texts a week and divided by five. That’s just nineteen let’s say twenty texts. Twenty a day. You could do that five days a week send 20 a day. Now you see where I’m going with this. We’re breaking this down into goals. We can control twenty texts a day and that should get us about thirty leads per month. Understand.
Joe: Let’s say we’re sending letters. One of my favorite things to do is sending. Letters to the owners of rentals on Zillow, the owners, letters to the owners of rentals on Zillow, and there’s a lot of reasons I like that I won’t get into it right now. But let’s say our second marketing type is write this down. Letters to rental owners. The there’s a few things that these rental properties on Zillow, for example, have in common. Number one, they’re almost all vacant. And number two, they’re all nice. So they’re nice homes. Let’s say, again, 50 percent of marketing comes from this. So the same numbers. Right. I’m going to need 30 leads to move this a little bit, 30 leads per month. Now, my average response rate is going to be less when we’ve done these. We’ve done these little challenges called five leads in five days. And we’ve had we’ve seen students get responses up to 20 percent with these letters. Yeah, but let’s be conservative. Let’s just say let’s say five percent. Is that OK? Maybe we’ll just do five percent. So my average response rates five percent.
Joe: By the way, if you’re doing cold calling and let’s just give people these numbers real quick, write these down. On average, cold caller, that we hire VAs in the Philippines and we help our coaching students find these VAs and get them trained. But how many dial’s how many numbers can a VA dial in an hour per hour?
Gavin: Per hour? You’re probably going to be looking at because it depends on conversations. Anything between sixty and a hundred and twenty dials an hour maybe, maybe more obviously depends on the list. And again, how many people answer last what the dials will be OK.
Joe: And then about on average, on average, how many leads do they get per hour. Like a son. If I might sell my house.
Gavin: Yes. On average across the board over a period of time, let’s say over six weeks you’ll be looking at one to two leads every three to four hours of dialing on average. And sometimes that will be five in one day, zero, one, none, because again, depends how old the list is and how many times it’s called. But on average, one to two leads every three to four hours.
Joe: So I know my handwriting is horrible, but you guys, you’re picking up what we’re laying down, right? So these are certain averages. And if you’re doing bandit signs, I couldn’t tell you those numbers. I’ve never done it before. But you’re going to find numbers that are the Facebook ads. It’s going to be we just did a campaign in Facebook ads. We were getting, we spent about four hundred bucks and got twenty-three leads. So what would that be? Yeah, we were spending about seventeen dollars per lead. By the way, this is amazing Facebook ads. When you’re targeting nationwide small towns, you could exclude California, New York for obvious reasons. Right now I’m just kidding. But you can exclude some of those bigger, more expensive, competitive liberal states. Sorry I’m leaving politics out of this.
Gavin: You’ve already said that once.
Joe: I say that. But I’m not going to do it anymore. You can exclude like New York as an attorney state. California is really expensive. And so and you can exclude cities, but you could target nationwide and get leads for five to ten bucks once you start optimizing it and you’ll get crazy awesome motivated seller leads in small towns that nobody is touching. So like you could get you just figure in this marketing plan something like seventeen dollars, fifteen dollars per lead using Facebook ads and we can help you with that later on too. But like there’s awesome. So we’re breaking it down to the things we can control.
Joe: So let’s look back at this. Let’s say our average response rate is five percent. We need thirty leads per month. I’m going to go to my calculator, do a thirty divided by point of five, and that’s six hundred letters a day month that you guys hyperventilate freak out there and it’s like six hundred divided by four. That’s one hundred and fifty a week. Not bad. But if you’re going to be handwriting these, that’s a lot to write at one time. What if you just did a day. Divided by five.
Joe: That’s thirty letters a day while you’re watching the whatever the stupid show is, it’s most popular today. You see what we’ve done now? We have a simple marketing plan of what we are going to do every day. And I want you guys to just this doesn’t have to be perfect, doesn’t have to be written in stone. But what, you don’t want all your eggs in one basket either as you start growing your business, start with one. Start with this thing first. And as this is going, we’re going to be talking more about this later in system simple system scale. So start with this and then do this. But you don’t want all your eggs in one basket, so you want to be doing multiple different types of market. And here’s the awesome thing, guys. You don’t have to be the one doing this. Maybe at the beginning you are, but eventually you get a VA to do this for you or you can get a marketing company to do this for you.
Joe: And if you’re overwhelmed, like I don’t even know how to do this. I don’t even know where to start. That’s something that we can help you with. We’ll talk about that later. But you see the value of this. I want you guys to type in the chat that I understand and I want you guys to type in the chat. Kornelius, Google Voice shut you down. That’s why you need another service like area. Simple. There’s a lot of other services you could use for your VAs to do all this marketing for you. By the way, these letters, these letters right now to two rental owners. Guys, there are ways that my at my VAs are doing letters right now from the Philippines and they’re not sending letters through their own postal service. They’re doing this online actual physical letters. I like physical letters because that’s something the sellers can hold on to and the competition’s not doing this. Cool. All right. So I want you guys now to type in the chat. What are the. One or two different marketing types of marketing that you’re going to be doing. What are the one or two different types of marketing that you’re going to be doing? Texting letters, cold calling, cold calling letters, Facebook, Facebook. Yeah, good.
Joe: You guys are writing this down. Do you feel like you’re making some wins here and getting some progress? Like, isn’t this exciting? I hope you already like you’ve got your goals written down. You’ve got in the market you’re going to go after and now you got the marketing that you’re going to do the other letters to rentals, texting, Facebook ads, cold calling, texting or simple letters hearing this voicemail.
Joe: Beautiful. By the way, when we send texts, we send them, they’re compliant. We don’t do mass robot texting. We do individually one at a time. Each text is compliant and personalized. So don’t freak out about that. And we’re not texting. Do not call numbers because these are phone numbers we’re getting from these websites. Yes, Gavin, I did. So this. Cool, awesome, awesome. We are going to be giving you guys a prize here in a minute. But let me look at my agenda. What are we going to talk about? Oh, yeah. Yes, we’re going to talk about sending multiple offers. Right. Gavin. Yeah. Let’s talk about then. We’re doing good on time. We’re doing good on time. OK, I want to talk about looking at the agenda here. You got your marketing plan filled out, right? You’ve got some things written in there. This doesn’t have to be perfect, guys. You’re just you’re making it’s all about making progress, not perfection. But you’ve got your marketing plan written down. Good.
Joe: You can change it. We’re going to give you permission to change it. You will. It’s OK. I’m excited for you guys. Now, let’s talk about real quick why it’s important to send multiple offers to sellers. Why? Why is it important to send multiple offers to sellers? Because a lot of times the sellers are going to be like, I can’t take that cash offer, I don’t have enough equity, or they’re going to be like, I have the equity, but I’m not willing to share it with you. I’m not going to be, I’m not that motivated. I’m not going to be giving my property away. So a lot of times because we’re doing so much marketing and we’re getting so many leads coming in, our job becomes to disqualify leads. And so when we’re talking to a seller, we find out their situation. Now we’re going to be doing some role playing after the break. After lunch, Gavin and I are going to be doing some role playing. So it’s going to be really important. You guys hang around.
Joe: Rob is asking for the workbook. JoeMcCall.com/workbook, JoeMcCall.com/workbook. And Mohammed’s got this right here, Human Psychology for first choices. And so we give sellers the option because we’re out there wanting to help them sell their house. And when you have the attitude of I just want to help you sell your house and I am not desperate chasing them for leads, I’m giving them options. Option number one list it with a realtor. Option number two, here’s a cash price. Here’s a cash offer that doesn’t work for you. We could do a lease option. If that doesn’t work for you, we could do an owner financing, you pick one. I don’t care. You see how less threatening that is to the sellers. It just gives the sellers more options. It puts them at ease. It puts them into a position where they can trust you. So that makes sense. Yeah. And if you’re giving them options, that helps.
Joe: And you know what, nine times out of ten, if the seller is motivated, that realtor route is not going to help them. OK, they need to realize that for themselves. And when they find out that you’re not just trying to ram them down with their throats with an offer, a cash offer, it’s going to make that easier to accept your lease option offer or your own refinancing offer. I remember when I was working full time, especially when you’re working full time, you’re doing these deals virtually sometimes it’s hard to negotiate deep discounts with motivated sellers over the phone. And I found it was easier to negotiate lease options with the seller over the phone because there’s no risk to them at all.
Joe: I’m telling you, these lease option assignments, there’s some of the easiest deals in the world to negotiate because they can cancel it. If they sell their house before we lease option, they can cancel it. Right. They get to approve the tenant if they get the final approval of the tenant buyer that we put in there on a sandwich lease option. Guys, you don’t have to worry about vacancies anymore. You have to worry about property management. You don’t to worry about vacancies, maintenance, repairs. I’ll take care of all of that. You get the same benefits of owning a rental property without the landlord headaches and hassle. How easy is it to sell that? How hard is that? It’s easy, right? If it’s owner financing, it’s listen, I can get you full price. As long as you’re willing to wait for it, you don’t have to worry about being the landlord at all anymore. You can be the bank which in any city you go to who owns the biggest, tallest buildings, the banks and the insurance companies.
Joe: But like you can be the bank when you’re talking about your owner financing. But if it’s your cash offer. Listen, I know you just want to get rid of this thing and you want to move on with your life. Guess what? I’ll take care of all the trash. I’ll clean it up. There’s a tenant in there. We’ll take care of that all. If you just want to leave and move on, we’ll take care of everything else. In exchange for your price, you’re giving them speed and convenience. So when we present these offers, it’s always win, win, win. OK, maybe you should sell it with the realtor. Maybe if you want to sell it. Now, here’s a cash offer. If you’re willing to wait, here’s a lease option. Owner financing offer. This is why it’s important to send multiple offers to sellers.
Gavin: Yeah, I 100 percent agree. And I just did a video actually I learned to put positive people on how to position multiple offers. As Joe was saying, you have to use it to your advantage by listening to the seller. The easiest contract out there, as Joe already just said, is the assignment lease option, right, the wholesale lease option. If you position that right and you get the sandwich lease option turned down because of the price of the terms and you can offer the price in terms that they want and the monthly rent, then you’re going to get it signed.
Gavin: You have to position it right and learning when you get better at this process and understanding the seller, if the seller’s aggressive with a cash offer. A cash offer is upsetting them. They’re saying everyone just wants to lowball me for the house, don’t put the cash offer on the page. OK, touch on it. And if I’m engaging with the seller, you’re an investor. You’re just going to lowball me. Actually, Mr. Seller, I’m not. What if I could give you what you’re asking for your house, you will be interested in that, would you? Immediately engagement. Who else says that? I’ve engaged straight away. What do you mean you can give me full asking. Now we can have a conversation because I’ve lowered his tone again. I’m not going to position that cash offer if he’s getting so upset about it. So I’m learning that the multiple offers and playing with that is going to really help you again. We’re going to do some role playing. One of my, I know I get hyped up on the whole sales thing because that obviously super important. You’re never going to make money. I love the sales because that’s the interaction side. That’s a bit that’s going to get the contracts right. Get your offer signed. So we’re going to be diving into that with the role plays.
Joe: Excellent. OK, now the next thing in this workbook is what are two different offers that you could give to sellers? You don’t think you have to give five different offers or you have to know all of them. What are two different offers you could give to someone? Write that down. I’ll tell you my favorite after you write down type, write it down, type it in the chat to cash and lease option. Love that. Cool. What else? Cash offer and seller financing. Cash or lease option. This option or owner financing sandwich lease or a wholesale lease option. Retail wholesale. Good. So write this down. My two favorites are obviously you should visit with a realtor and if you want I can refer some realtors to you if I tell them I am a licensed agent, but I’m not looking for a listing that way. Guys, again, they can never accuse you of trying to rip them off because you’re giving them all the different options. This is what I love about this.
Joe: So much cash would be my second offer that I like to give. And the third one is lease option. And I’m starting to do more on financing. I like that, too, but keep it super simple and sometimes depending on the seller. Right, I don’t always want to give them all three offers at the first time. Right. Like if they have equity, I want to give them and I’m going to give them a cash offer and the sandwich lease option offer. But if they have no equity, I might give them the cash offer and the lease option assignment offer and I use the cash offer to position my lease option offer so much better. Right. Gavin, what are your two favorite offers that you like to send out?
Gavin: For me, it’s normally the cash and the sandwich lease. If again, if there’s some equity there because that’s normally what we target. I do like the of finance if I know it’s free and clear. So depending on the list, I normally only bring that in if I know it’s free and clear. But the cash and the sandwich lease. What that actually does even for wholesalers is that if you can produce multiple offers, it’s another talking point because remember, you are never going to be able to do something or to make an offer that’s not going to work for the seller anyway. So maybe it’s run down. Maybe the house needs too much work. It’s not going to work because the sandwich lease option, I’m going to put it on that because now they want to engage about that. And then we’ll go actually after talking with you and looking more and seeing the pictures, the work that is needed in this is just not going to work for this office. Are we all going to be looking more towards the cash? I know that’s not what you want to hear. I completely understand. But this the offer of the second offer that I sent is not going to work.
Gavin: But I’m not worried about that until they’re engaging with me. Right. I only when we make fast office, I just want to talk with people that are interested in my office and then we will spend more time with them. Again, high dollar and our activities. You need to be spending it on people that actually are going to sign contracts and sell properties.
Joe: Cool. All right. Next question on here is what types of deals would you make cash offers on this? Important. I understand it. Maybe it’s all of them, but typically and I’ll go and answer this for you. Typically, we make cash offers on the lower end, cheaper properties, and that might be in the Midwest for me under one hundred thousand dollars. It may be under one hundred and fifty. But typically I don’t want to do lease options on the lower end, cheaper properties. We like to do cash offers on the lower end, probably because that’s the kind of property we’re going to sell typically most of the time to a landlord. And you can’t, a landlord is not going to want to buy a two hundred fifty-thousand-dollar house that rents for fifteen hundred a month. There’s not enough cash flow. The ROI is not very good on that. OK, so I like to make the cash offers to the lower end cheaper properties that a landlord would want to buy.
Joe: And this is important to understand. Write this down. You need to be thinking about who’s your end buyer when you’re making an offer to a seller. Think about who’s your end buyer, how can I make this deal attractive to them? If you’re going to offer one hundred thousand to the seller, you’re going to try to sell it for one hundred and ten to the landlord. Right. But you need to look online. If you see on Zillow, there’s a bunch of properties listed for sale right now for ninety in that same area. You’re trying to sell yours for one hundred and ten and you see a bunch of houses for 90, you need to adjust your offer a little bit, right? Think about lease options. If you’re making a lease option offer, who’s your end buyer? The tenant buyer, obviously. Right. Are they going to want to live in this neighborhood or are they going to want to live in that house? Are they going to want that huge freeway in the backyard? So be thinking about who is your end buyer and how can you present this deal to them that will make them want that deal.
Joe: So if you’re doing a lease option on a million dollar house that rents for six thousand dollars a month, who’s your end buyer? The pool of buyers that can afford six thousand dollars a month is a lot less small. It’s a small pool of buyers. Why not target buyers that are looking for the sweet spot in the Midwest? That might be one hundred and twenty-five to four hundred thousand dollars. This isn’t an exact science, right? I’m also thinking zip codes and areas of town. Well, am I going to in North City where it’s pretty rough in St. Louis? Is that an area I want to do lease option deals in? No, I might do some cash deals there because I know I can sell those to landlords. But so it’s important to think about the types of deals you make a cash offer on are generally the ones that landlords would buy, the ones that will rent for the types of deals that you’d make lease option offers on. Those are going to be the nicer homes in the nicer areas, but not too expensive. The suburbs, the good school districts.
Joe: You’re going to find that fewer sellers in those good school district areas are going to be willing to take your cash offers. Not saying that can’t be done. Certainly can. But the houses aren’t as old. They’re there’s not as many tired landlords in those nicer areas. So just be aware of this. This is why it’s important to think about there’s different parts of town, different cities have different areas. It’s not that hard to find to figure out, OK, where do the cash buyers buying right now? Where are the tenant buyers buying right now? Makes sense. All right. Yes. Let’s look at real quick here, the next page. What are the criteria for wholesaling deals? This is important. You need to have at least 30 percent. Equity is a good place to start. You need at least 30 percent equity for a typical wholesale deal, cash flow. It needs the cash flow at least three hundred bucks a month. Two hundred bucks a month, depending on where you’re at. But the ROI, the cash on cash return, sometimes you don’t know these numbers until you actually talk to buyers and find out from them.
Joe: Who are the landlords that are buying properties in there? What are they looking for in terms of cash flow? Usually there’s like the one percent rule. So if you buy it for a one hundred thousand or you sell it for one hundred thousand, it should rent for at least a thousand. Sometimes people want at least eight percent cash on cash return. So if they are going to put in one hundred, I don’t have a calculator, but they want to make at least eight percent on their cash. They put into the deal the first year. OK, so this be aware of that equity, 30 percent equity, a couple hundred dollars a month cash flow, the one percent rule. That’s a good place to start.
Joe: Those are things you need to talk to other buyers that are buying properties in there. OK, what are you looking for? I know buyers are looking for just two bedrooms, brick houses, only with the garage, if that’s what they want. And there’s other guys that are looking for three bedrooms that has to rent for at least nine hundred a month. It can’t need more than 15 grand and work and those kinds of things. Typical criteria for wholesale deals makes sense.
Gavin: You can add anything to that given I just want to say, as well as state buyers in these markets are going to be by and for instance, several months ago now, we we had a property that we couldn’t move locally. So I contacted a few buyers I had in Phenix and they actually bought it and we made thirteen thousand on it, made thirteen thousand. We couldn’t reduce the price with the seller. It wouldn’t move locally. And the numbers to then look great because again, California is not a cash flow market. You don’t buy, buy and holds in California. And where’s all the money coming from? New York. California. They can’t invest in that market. So they go into the Midwest, the solar markets, things like that to invest. And they their numbers compared to what they used to, they’re going to pay more than local people. So we’re looking out for that as well. Out-of-state buyers are going to be really good and then backing off, understand what you’ll buy as well and then go on the on the deals and to find the buyers.
Joe: It’s pretty easy. And we do that with our coaching clients. But like, we can go and get that data from prop stream list stores. Anywhere you can find where buyers are buying, you can pull that list really easily. You can break it down by zip codes and credit. Most of the buyers are buying in these types in these twenty zip codes and this is what they’re paying for. This is what the average price. So that stuff is easy to get to. The criteria for a typical lease option deals kind of already talked about this. Nicer suburban areas, good blue-collar areas, good school districts in the median price range in Missouri, that’s going to be one hundred to three hundred, four hundred thousand dollars. Not an exact science, but that kind of rule of thumb.
Gavin: I want to say as well on that, that if you’re unsure of what area is, just make the offer anyway. Right? Just make the offer and you’ll figure it out. It won’t move if you’re too high, the deal won’t move. So again, don’t worry about trying to get it nailed on. By the time of the end of today or even by lunch. You should all know what market you’re going to be doing now. If you’re selected, we’re going to go.
Joe: So just you could be thinking about, you know, want to be a one trick pony that only makes cash offer because you’re throwing away a lot of deals that you could be doing deals on. Now, having said that, some. Times there is a powerful thing with focus, and sometimes we see people get confused with like, oh my gosh, I have to know, I don’t know how to do these options and that you get frozen in this analysis paralysis thing. So we also want to give you permission to it’s OK. Just make cash offers for a while, OK? Get a few cash deals under your belt if you want to do lease options. All right. Just focus on these options. Don’t make any cash offers. Just make lease option offers. Get some of those deals under your belt, learn how to do owner financing, then learn how to do cash deals or whatever. Right. So we want you to. Sorry, Chris, we’re not back in California. Listen, I’m from San Diego. My mom still lives there anyway, so it’s OK to, like, look at, you know, start with one thing and focus on it. OK, now, real quick here, I want you to write down what are your big takeaways? What are some of your big takeaways?
Joe: What are one or two or three things that you’re going to start doing? And while you’re writing that down, some of you are asking, how do you get the cash buyers? What if I don’t have the money? We’re going to show you. We’ve got some really cool here. In a minute, we’re going to show you, Gavin and I, we can be your buyers. We have the money. We can lend you money on deals. We can give you free transactional lending, free transactional funds. We can help you. We can give you proof of funds. So that’s tough. Don’t worry about we got you. We’ve got you there. And buyers are easy. If you get a good deal, it’s easy to find buyers. But that’s the easy stuff. If you’ve got a good deal, finding buyers is easy. Finding the money is easy. And we’ve got your back on that. So what are your big takeaways? Write them down here. Good focus on these options. Joe does not like California.
Gavin: I want to say one thing, actually, because what Chris said about bringing this up, about bashing California, that’s not the case at all. But when we’re trying to if you’re new and you’re trying to go and get a win, I guess the question is, if you’re going to invest in California, are you willing to wait five to six months to see it? And if you are, then go for it, go to California. If you can work this business every day and it might take six months to see a result, it could be faster. That’s the problem. It’s all about creating small wins in this business. I just had a client that just did his first deal for five hundred dollars. Massive went brand new to the business. Five hundred dollars. Now he’s got another one in four thousand seven hundred right behind it.
Gavin: But he’s installed the belief now that this process actually works. So it’s more of a case of what you need to put in and how much the persistence that you need to have to get deals. That’s why we say, hey, look at the market. If you’re doing deals that, of course, go to California, we have a client that we worked with. Steve is in San Francisco just for deals a year and they’re monstrous. But we want to go and take a fresh guy, right. That wants to go into Cal and not see a result. So that’s kind of the thought process behind it.
Joe: You guys are great wins here. The big takeaways are awesome. I love it. We’re going to do something here. Now, I want you guys to go to the last page of the workbook and you’ll see a diagram that looks like this. I’m going to fill it out for free with you guys here. I want you guys we want you to evaluate kind of where you’re at the last page. It’s a diagram. Looks like this. If you’re new, you’re watching this on Facebook and you’re wondering what’s what. JoeMcCall.com/workbook. JoeMcCall.com/workbook. I love. I am reading the takeaways, William, but it’s like there’s hundreds of them that would take us forever. But anyway, we’re going to fill this out, get a pen and paper and a pen and paper. We’re going to fill this out. I think you guys are going to enjoy this exercise because it’s going to be helpful for you to kind of just see where you’re at and see what’s really important. I’m going to share my screen here, Gavin, if you can help me make sure you guys see my screen here or to go there. It is panicking a little bit. Got it. OK, there are what are the three things we talked about in this business that you need to be successful?
Joe: Three things we talked about, you remember it is number one, I’m going to write this down in here, marketing automation delegation and why we’re doing this starts here. And we’re going around marketing automation delegation. You need to have these three things to be successful in your business. You need to have these three things. Now, when you have marketing, what does it give you? I’m going to write this down right here in green. It gives you money. You get deals from the marketing. When you have automation, what does it give you? Gives you time. When you have delegation, it gives you freedom. And this is going to be different for everybody. It’s just kind of this way. I like to look at it now. When you have marketing and automation going in your business, but you don’t have delegation, what does it give you? Well, that means you are when you have marketing automation, but no delegation, you’re working too hard.
Joe: So write this down because I’m going to give you in a minute what are these components that you need in each of these things. I’m going to ask you in a minute to evaluate yourself in that. But when you have marketing going, you have the systems going. But nobody is doing it for you. You’re working too hard. It’s the opposite of freedom. You’re slave to your job. What happens when you have people doing stuff for you and you have all kinds of systems but you don’t have any marketing? Well, really bad problem. You don’t have any leads. Obviously, leads are the opposite of deals. What happens now when you have marketing going on and you have a team doing it for you, but you don’t have any automation, you don’t have any way to track things. Things are falling through the cracks. Leads are. Getting left behind. We want to operate under the philosophy of no lead left behind, right.
Joe: You don’t have any automation and systems going well. You’re going to be wasting a ton of time and money. So where you got to think about this, right? Are you working too hard? Are you frustrated cause you’re not getting enough leads? Are you frustrated because you’re wasting a ton of time and money because you don’t have any good systems in place right now? So I’m hoping you’re writing this down right when you have all these things here. Let me do a new color orange. When you have a combination of time, freedom and deals, when the marketing, the automation delegation is all working, where you at? This is different things for different people. What I like to call this, I like to call this stress-free abundance and that can be different things for different people. You might call that. You could just it could just be freedom.
Joe: It could just be, I used to call it living your vision, having a vision for your life and the business built around that. Most of us have it backwards. We have a business in the center of everything, our our job. And then life fits in around that. What if we reversed that and had a vision for your life? For me, my vision is stress free abundance. I want to make a lot of money without the stress and the hassle of making a lot of money. Doesn’t that sound good to any of you all to make it a lot of money without the stress and the hassle, given what I was saying?
Gavin: Absolutely. Yes.
Joe: What we Olin so that’s different things for different people. But for me, stress free abundance. I love that phrase because I want a business that’s making the money, but I don’t want five hundred employees. I don’t want a huge office. I don’t want a bunch of overhead. All the stress that comes with that been there, done that it’s no fun. I don’t think many of you want to do either. Maybe you do and maybe you like that stuff. But for me that’s not freedom. But I like the idea of stress-free abundance, making a lot of money without this stress and hassle and overwhelm. And that’s our big goal. When we coach people and anything any of my products, they come out with coaching stuff. It’s to help people make more money with less overwhelm, more cash flow, less overwhelming. If you’re looking at something and it’s like cash flow, but a lot of overwhelm, that’s the wrong thing. Or maybe you’re overanalyzing it. Maybe you’re looking at it wrong.
Joe: So anyway, here we go. Now, there’s different components. When I want to talk about here are the things that you need to have in each of these pieces. And then in a minute, I’m going to ask you to evaluate where you are with these things. OK, so with marketing, some of the really important components in here that you need to have, you need to understand and move this around. Hopefully this all works. You write this down. You need to know your market or markets research. In other words, you need to know where the leads are.
Joe: Where are the buyers buying houses? Where is the where are the real good opportunities? The next thing you need to know is what’s working now, not yesterday, not three years ago. What’s working now for marketing? Sometimes in some markets things don’t work as well. Maybe bring this. Voicemail’s worked really well a few years ago. They’re not working really well now in Florida. Unless you want to get sued.
Joe: You know what’s working now super important and what else you need. And this is so important right here. You need to have a scorecard. You need to have KPIs. Write that down. You need to have KPIs. As we’re doing this, I want you guys to start writing down some things here. I want you to write down. And if you have color, this is great. But if not, you can do this without. I want you to write down in three things. I know you can’t see that. So let me make it orange. I want you to write down where you’re at with each of these things as we go through this, OK, you’ve got smiley face, a flat nothing face. I’m doing OK or a red face, so you can also go into these things and highlight them. So I want you to look at OK with let me make sure we go. OK, cool. Market research. Do you understand what is working where the markets are? You might be kind of yellow with you. I kind of understand the markets a little bit. I know where I’m going. Do you understand what’s working now? Yeah, I kind of understand what’s working now. I listen to Joe’s podcast and watch Gavin’s videos and I’m like, are you keeping track your KPIs and your scorecards? Oh, no, I’m not.
Joe: OK, you guys, as you’re writing this in, to be honest and evaluate yourselves, I’m not doing this. Good. There you go. Where are you at? And you might want to do instead just a smiley face. You know, you maybe I understand my market really well, so don’t beat yourself up. Give yourself a green. You understand what I’m doing here.
Joe: So right now, guys, in the chat type in what are KPI’s I forgot to answer KPI’s are key performance indicators, KPIs key performance indicators. So you know by your numbers what’s working. You’re tracking your numbers. You have your scorecard written on, you know, every day I’m supposed to be doing this marketing and then these are the leads that are coming in from this marketing. And this is our average cost per lead. This is our average number of leads we need per deal.
Joe: You understand? Yep. I forgot to give this guy some eyes. There you go. All right. So go ahead and type in. How many greens did you have in marketing? How many greens did you have in the marketing part zero one two. Not sure I understand the question. Oh, that was just somebody else or zero one. OK, we’ve got some work to do. Don’t beat yourself up. You’ve got some work to do the right. OK, let’s look at automation. What are some of the things you need with automation? Well, first of all, their systems. We need systems, but I like to refer to systems as silos.
Joe: What I mean by that, when you look at silos, you have certain things in here going on where you ask somebody what percent you’ve got your direct mail, maybe this is direct mail, maybe this is Zillow, maybe this is cold calling. OK, and you ask somebody, what were you at with your direct mail? What percent complete are you in there? Like, I’m 50 percent complete. And how are you how is your Zillow marketing going? Well, I’m doing like seventy five percent. How is your cold calling on the 10 percent complete? What I’m talking about when I’m talking about silos is don’t go on to the next ones until this one is one hundred percent complete. When this is one hundred percent complete, then move on to this one. Then when this is one hundred percent complete and these are both 100 percent gummy, then move on to this one. So we’re breaking them into silos now. A lot of us and I’m guilty of this too.
Joe: Sometimes, you know, we’re running at twenty five percent complete on all these different silos and it’s just frustrating and it’s a mess. But let’s get each one at one hundred percent complete than this one in one hundred percent and then this one at one hundred percent silos. Now what I’m talking about silos. I’m also talking about simple system scale. Write that down. That’s really important. I learned this from Rob Swanson. I have to give him credit for this. But every one of these things, these marketing things that you’re doing, the systems that you have, they need to be simple. They need to have a system. And only then do you scale so you don’t scale unless it’s a simple system. When you’ve got something broken down into its simple parts, simple components, then you build a little system around that and then you scale it.
Joe: And the cool thing about scaling, once you learn this guy’s the cool thing about scaling is if you can do one deal a month, there’s no reason why you can’t do it. If you can do deals in one city a month, there’s no reason why you can’t do deals in eight cities. Makes sense. But you got to understand the silo concept here. Simple system scale. The next thing that you need and automation is this is a good one. You need a CRM or database.
Joe: Oh, I fought this for years. I didn’t want to have a database. I was on the computer all day at work. I didn’t want to come home and work and sit in front of a CRM or database. But when you’re talking about systems and automation, this is primo. Number one, you need to have a CRM because if not, your leads fall through the cracks. So write that down. The second thing in automation, you need to make sure this gets done for you in spite of you. You ready? Follow up. Oh, this is one of the most important things in your business. Ninety nine percent. Ninety five percent. Whatever of your deals are going to come from the follow up. And if you don’t have systems in place that’s doing your follow up for you in spite of you, it just will not get done unless you’re super disciplined and you can put it on your calendar and you’ll do it. If you’re like me, they just won’t get done. So let’s evaluate ourselves now in all this, where are you at with your silos?
Joe: Do you have simple systems that you’ve scaled? Where are you at with that? Most of us probably not doing too well on that thing. CRMs. Do you have a good CRM that you’re using or all of your all of your leads? Rick, Rick says my silo looks like a toilet right now. All right. So for your CRM, do you have a good CRM? Most of you do. You already have good CRM, but maybe you’re not using it, but you’ve got a good CRM follow up. How are we doing with your follow up, guys? Is that happening for you automatically? Is that done for you in spite of you? Most of us, if we’re honest with each others were red. All right. So how many greens, how many greens do you guys have in the automation part? One, one, one, zero, one, one. The red is difficult to read here. I’ll just I know you guys are writing this in. There you go. Does that help follow up? Simple system, scale one. It’s all good. Somebody’s got two greens. That’s awesome. Right.
Joe: OK, now let’s get going. Delegation. What is delegation? This is really all about communication. This is super important. I just I should add this in here because this is what the delegation is all about. Communication. Right. OK, so part of delegation is you need to have virtual assistants, virtual assistants. The next thing is your team focused on highest revenue generating activities. So are they allowing you to focus on your highest revenue generating activities? Are they focusing on their own highest revenue generating activities? And then the final one is, OK, this is a good one. Your boots on the ground. Now, who is that? But once you start doing these deals, you need someone to take pictures or do the signs or show the house or whatever. So if you’ve got the good teams going here, you’re going to have somebody who’s your boots on the ground. Do you have those kinds of people? All right. So let’s look at this. Where are you at right now? Be honest with yourself. Do you have VAs? I know most people are probably yellow. They have VAs, but the VAs aren’t really communicating well with them.
Joe: They don’t know what’s going on. Are you focused on your team? Is your team allowing you to focus on your highest revenue generating activities? Most of us, I think, for will be red there. And do you have boots on the ground? Well, I can tell you, finding boots on the ground are easy. That’s easy. I’m going to make that green make sense. So how many greens? Let’s look at all of this, guys. Where are you at? Let’s be honest with ourselves. How many greens do you have? How close are you to this right here? You’re stress free abundance. Now, you don’t think that you have to have all of this set up right now like this takes a little bit of time. It’s OK to admit where you are and why you need help. Good. One green, one yellow, one red. Four greens. Harry’s got four greens. Awesome. Virtually nobody has all greens in all three circles. All right, cool. All right.
Joe: So I think that’s a good exercise just to kind of see if you want some good help in building a business, a real business, not just a hobby, a business. These are things that you need to be aware, marketing, automation, delegation. And all of this kind of goes like this. Even inside of each of these circles kind of goes like this. So start with marketing. That’s number one automation delegation. OK, cool. Got a few things off I want to share with you right now. I’m going to stop this year. I’m going to share something else for you. I’ve got some slides and then we got some cool things we’re going to give away and excited about this. All right. Let me go back to my slide deck here. All right. I’m going to share my screen. I’m going to share this. Gavin, do you see my slides is a big enough?
Gavin: Yeah, you can see it. Yeah, it’s good. You could zoom in a little if you wanted, if you can.
Joe: But this is a timeline diagram that I want you to look at and write this down, get a blank piece of paper and write these things down. I wonder if I make this present mode. What does that look like, Gavin? Do you see big, huge black bars?
Gavin: Yeah, yeah, yeah. The black lines.
Joe: You can still read it. This is a timeline. You’re here now. Three months, six months, nine months, 12 months. And we’re all going to be in different places. And Gavin, you can help me out here, interject any time you want with this, because I want to make sure I’m really conveying this in a good way to you guys right now. Where are you going to be in six to twelve months? Ideal. You’re just going to be OK? Yeah. You pour that kind of where you want it to be. Are you going to be a disaster? All right. Let’s think about this here. Where do you want to be? If you’re ideal, you’re doing like two hundred grand a month. Maybe you’ve quit your job, you’re doing deals from home. I am trying to make my thing fit here. There we go. Right. You’re doing deals from your RV. You’re doing deals from a coffee shop or cafe in Prague, a chateau in France, a deal you’re doing deals from. What’s that place? Glacier National Park in Montana.
Joe: You’re making good money. You got the stress-free abundance. You’re not making a trillion dollars. You don’t need to make a trillion dollars, but you’re not relying on your job anymore. Or you could be maybe just, OK, you’re doing fifty grand a year. You’ve got a part time job. Maybe you’re maybe your spouse still works. You’re working mostly from home, but you still got to go look at houses. You don’t have the freedom to go really live and work wherever you want. You can maybe go to Starbucks, you have a home office, but the kids are running around screaming and it’s hard to get any privacy. It’s hard to focus. You’re doing OK. You’re doing good, but you still have to. Somebody in your house is still worth the income is not consistent. This is all I want you guys to figure out where you are.
Joe: And as we’re going through this, I want you to type in. Where are you now? Where are you now? Now, on a poor scale in 12 months, maybe you’re doing a couple of deals a year, still working 60, 70 hours a week in your job. You’re trying to do deals and nights and weekends. You still don’t have the freedom. You don’t really are not where you want to be. Still no freedom for your disaster. This is where I was. I’m not doing any deals. I’m spending more money on education than I am on deals. How many of you can relate to that? And you feel like you’re stuck forever in this job, that you hate this cubicle and you don’t have any hope for retirement or traveling before you retire? I’m tell you for me, guys, I me and my wife talked about this. We wanted a business where we could travel and run the business from anywhere. We could travel and live in Prague. We love Prague. We’ve been there twice now for three months at a time. Once for two months, once for three months. We’ve traveled in an RV. Gavin, you just traveled in an RV doing deals. For how many months were you gone on that last trip?
Gavin: We were gone for a month. The last one we leave next weekend. We’re going to Arizona for a month as well.
Joe: Beautiful. My wife and I are actually yesterday talking about going to Utah. What it’s a long story. But like she said, hey, do you wanna go to Utah? How long do you think it took me to say yes. Like five seconds, but I got to wait until after the fall season here for golf because it’s beautiful where I play golf and the trees are turning color. But as soon as those leaves are done, man, I’m let’s go to Utah. And I don’t know where this came from. I had no idea what she’s just going to go for a month. Right. We homeschool our kids, you know, we can work wherever. But isn’t that cool to have a business where you can work? All you need is a laptop and a cell phone. You can do this business from anywhere. A hotspot.
Gavin: Yeah, I always like to start conversations when I call you Joe and ask what hole you’re on.
Joe: Gavin called me yesterday. First thing he asked was. What hole are you on? I was on the third and I was actually but anyway. All right, that’s funny. So where are you now, guys? Where are you at? And here’s the crazy thing. The longer you wait, the wider the gap is going to be there. We’re all in different places. But this is now as time moves on, the longer this is a crazy, frustrating thing to me, guys, the longer you wait, the let the wider the gap is. We don’t want you to wait that long, but you can actually if you move your goals over here, you can get freedom sooner. If you want to get here, you need a plan. If you want to get freedom sooner, you need to move your goals closer. Let’s not keep it out there 12 months. Let’s move it over to six months. What if I told you I don’t want to promise or make any income claims or hype because you’ve got to work. Most people fail at this business. Most people fail. They really do.
Joe: And if you’re looking to get coaching and you’re looking to get help and you don’t have two pennies to rub together, this may not be the best time for you to get kind of coaching or that kind of help. But like still, you should be writing this down. What if you move your goals closer? Let’s get them in six months. You get freedom sooner. So where are you guys at right now? Type this in the chat box. Where are you guys at right now? And then where do you want to be? Let’s look at the chat here. I’m going to move out of my thing here and let’s look at the chat. I’m glad you guys are being honest with yourselves. You’re OK. You’ve got to be honest. We’re not going to call you out and embarrass you. But half of the battle is figuring out where you are now. Where do you want to be in coming up with a plan to get there? Yeah, these are some of these responses are gut wrenching. Yeah.
Gavin: You know, but you have to you have to go there. You have to understand where you are to make any change. Right. And every time you make a change, it’s always going to be uncomfortable. Else it’s not a change. Right. If it’s normal, you haven’t changed anything. So changes are good. And you’re exactly right. It’s taken just little by just like today. What is then another day is the twenty six September, what three months ago when I was you six months ago, you know, last October, would you want another call in the same spot? And that’s what has to change. You have to look back and go, OK, we’ve come a long way. This is what I’ve achieved. You have to be moving forward. You cannot be saying I’ve been trying to do this for two years because why? What’s missing? You need to understand what’s missing and you have to fix it. You’re not going to be able to go forward. So really find out and be honest with yourself. And you you’re going to see a gap. Now, you’ve got to get a plan together to fill up, fill that middle section.
Joe: The comments in here are really powerful. They’re good. Moving forward. Because we’re all not where we want to be right now. But let’s come up with a plan. Let’s get there faster. We can get you guys there faster with more simplicity and clarity. This is a big thing I want guys you don’t need to have we’re just talking about one deal a month. What kind of difference would that make in your life? Five to ten grand a month? Again, I’m not promising income or whatnot, but we can help you guys if you want to get to where you want to be faster and easier, if you want to be up here in ideal, if you’re poor now, you want to get to OK, if you’re OK now and you want to get to ideal if you’re a disaster. Now, guys, let me tell you something. You can get to ideal in six months. This isn’t a pipe dream. This isn’t something twenty years down the road. In thirty years when you can finally retire, you can get to this kind of lifestyle. Two hundred grand a year, guys, is not the ten grand a month. One hundred grand a year. It’s not that hard. All right.
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