When we talk systems in real estate, we often think of real estate management software generally. However, I am referring to the systems you need to stay competitive in a market that is becoming increasingly more competitive.
Don’t fool yourself. Today’s friend is tomorrow’s competitor. How many times have you as a Realtor® ever heard of a client thinking your job was sooo easy, that they decided to get a license!
The hard truth is, what often separates the “winners from the losers” in this business is the systems that they have to keep things running on a tight ship as they compete to gain marketshare.
Now, this comes with a caveat… if you aren’t interested in massive growth, or having more time to do the things you love, then systems, as well as this article… isn’t for you. If you are satisfied with the status quo, or things are going great in your business today, then perfect!
If you are like me, and want to live, and not be a slave to your business, read on!
So, assuming that you are ready to “get your grow on” or save yourself time (my personal fave!) then I’ve taken a few minutes to write down a few of the systems that I feel you need to make your business everything you want and need it to be.
Now, I have deliberately arranged them in order of most logical sense. That way you would be able to hopefully see the coherence of my thoughts! For a more specific direction on each, feel free to visit The Red Pill Investor Podcast
System #1. Lead Generation Systems.
At the first, and foremost of each and every day. You must begin “at zero.” Zero leads. Zero transactions, Zero Buyers, Zero homes under contract, and ZERO money in the bank. With that in mind, you will do whatever it takes to generate a lead “By Any Means Necessary!”
Whether you are using the Athena Lead System or Investor Carrot, or a combination of both (again, my favorite!) you are guaranteed 24 hour lead coverage and generation. By using Landvoice to locate both Expireds (if you are an agent) and For Sale By Owner prospects, you will find active “NOW” prospects!
Once you have located them, use The Red Pill Investor Sales System Scripts to control the conversation in a positive manner. One example of which would to be to call FSBO’s using our scripts and determine if they are in a “need to sell basis.”
(For extra information on the different types of business, request your copy of “Sales Skills For Real Estate Investors” here!)
System #2. Lead Followup Systems.
Knowing that there are two types of lead followup that you are going to be doing, it is important to remember the focus of each. For the first type of lead followup (prior to you meeting them); the focus is on the importance of meeting you as quickly as possible. Time is of the essence!
A motivated seller loves a motivated buyer. If you are motivated, and you act, look and sound motivated, then the truly motivated seller cannot wait to meet you. Additionally, the more enthusiastically you can approach a seller with a confident “Can-do” attitude, that will give you an edge should there be competition.
The other type of lead followup is after you meet the seller, and was unable to secure the contract. In this instance, your main focus should be on their ultimate goal. Their “Gotta move to Tuscaloosa” moment. Although you may not have agreed on price or terms at your initial meeting, there is always room for negotiations. Today’s no is tomorrow’s maybe.
System 3. Pre-Qualification Systems.
In order to be super efficient with your time, and make a lot of money (which is what many times this is all about), you have to be very selective about who you meet. I don’t care who you are, your time has value! In this game, you must learn how to prequalify not only your Sellers, but your Buyers as well. In The Red Pill Investor Sales Scripts Version 5.0, we have a pre-qualification script as well as training available on how to use this script in an ACTUAL sales call.
The reason is simple. The truly professional know that they can’t help everyone. In order to best help your customers or clients is to understand their needs fully. That can’t happen effectively without a clear idea of what specifically you need to know. Bedrooms, baths, square footage, all vanish in importance if the Seller or Buyer cannot complete the transaction for some reason.
In your business, it is highly advisable to use the same basic questions every time to ensure a uniform result. That is why I recommend using The Red Pill Investor Pre-qualification Script.
System 4. Lead Analyzation systems.
Not all leads are created equal. Once you know that you are a dealing with an actual lead and not a prospect from your Pre-Qualification step, then you must determine the likelihood of this deal actually closing. While this can be tricky, it isn’t complicated.
Many people try to overcomplicate the simple…
While many people try to over complicate the simple so that they can sell a product to help you determine imaginary “spreads” so you can make “profits in your sleep” for low low price of only $199 it really boils down to a couple of factors.
First, when analyzing a deal, you must analyze the price relative to the repairs, and the motivation of the seller. A simple way to remember this is “the more motivation the Seller has to do something, the more that can be done.” If a seller is extremely motivated (say to even do owner financing) then there are many things you can do with price.
In the end, price is not nearly as important as motivation. What a seller says they will take for their home today will change tomorrow with their motivations. However, that is not to say that price is irrelevant to the discussion. The smartest investors will use technology like Redfin, TotalviewRealEstate, Zillow, and other resources to help “ballpark” a potential lead.
Once that has been accomplished, the typical RedPill Trained investor will turn to a Realtor® to gain comparables so that they can do a great presentation of the facts. Once you know what the actual facts are, you can then use a very simple analysis to determine if this is in fact “a deal.”
(Your Skill Level + Motivation of Prospect) Proportional to the Price = Deal or No Deal.
Put simply, the math is more complicated than ARV, MAO, or formulaic persuasion. One of the systems you must develop in your business is your analyzation of a deal Unfortunately, that comes through training, knowledge, time, and experience!
Have you ever been in that uncomfortable situation where someone says “I didn’t hear you say that…” Or worse, “I didn’t know that…”
Those two phrases can chill the bones of even the heartiest Realtor®/Investor. So suffice it to say that in order to be successful, you need to have systems in place to help you get the same high quality customer service to everyone you meet.
I would suggest that you begin by simply implementing a presentation folder at the minimum? Something that you can safely and neatly carry your comparables, your contracts, and any supporting data that the Seller may need. Past client testimonials, or references are always a good idea to give to a potential customer as they will doubtless have plenty of choices.
When at the presentation, keep on task by using The Red Pill Investor Sales System “Pawnshop Presentation”. It will help explain the nuances of the assigned deal.
System #6 Closing Systems.
Since it’s really outside the scope of this article to show you the various forms that you need to be aware of when transferring interest in real property, suffice it to say that disclosure is the key! Some of the key factors you need to be aware of however, are Lead based paint disclosures for all properties built prior to 1978, as well as any pertinent, material defects that you may know.
When closing your real estate transaction, keep all your records either digitally secured and backed up, or paper copies of HUD-1’s, Schedule B title insurance reports, contracts, or other documents to the transaction. For Realtor®/Investors, check your local Department of Real Estate for guidance on record keeping.
Automate your closing by working with the same escrow person as often as possible. The more often you work with them, the easier it will be to establish a trusting relationship. I must admit that whenever I have worked with a a great title officer, it has always worked out to my best benefit. A good closing officer will spot problems, and work to find solutions without you even getting involved.
Systematize for Sanity!
The more effectively you are able to systematize your business, the greater the opportunity you have to build a great, profitable, and fun business! However, if you do not put at least a little thought in to how you want it to look like “big picture” then you are destined for trouble!
For your best results, take a moment out of your day. Examine what is working in your business, how you can repeat it, and more importantly, make even more money from it!
Have a POWERFUL Sales Day!