Epic Real Estate Investing - How to Create a Lead Machine | 271

Episode Date: June 12, 2017

Learn how to create a lead machine that will instill confidence and inspire consistent daily action. Discover the three components to creating a system that will elevate your negotiating position and build consistent deal flow in your real estate investing business. ______   The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? • E.ducation • P.roperties • I.ncome • C.oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Uh, yeah. Stop. Hello. And welcome to Epic Real Estate Investing. This is the place where I show people how to escape the rat race using real estate. And if you're just getting started and or you're looking for new and creative ways of making money in real estate,

I've put together a free course just for you, including a checklist on how to find motivated sellers. Property owners that are willing and able to sell you their property at a discount. And to access that free course, go to free real estate investing course.com. Free real estate investing course.com. All right. Epicintensive.com has been officially updated. You may go there now and reserve your seat for the August intensive. That's August 3, 4, and 5.

I said two, three, and four last week. My bad is three, four, and five. And if you'd like to upgrade to a VIP ticket, the Epic Inner Circle Mastermind will be held actually on the second. So the VIP Mastermind is going to be held the day before the intensive, not the day after. And if you want to know what that mastermind is, it's just where we all sit in a horseshoe.

All the VIPs and my inner circle coaching clients was sit in a horseshoe. And one at a time, each person gets to go stand up for 10 minutes and they share their gift with the group. And that could be a strategy that's working, a technique that's working, maybe a really cool app, or maybe a great book, something like that, and they share that with the group.

And then on the second half, they go ahead and they share what's ailing them, what's their biggest challenge that's going on? And then the entire group gets to contribute back to them and give them ideas and solutions for their challenge. It's probably the most powerful, impactful day of the intensive. So if you want, want to go to that. Make sure you get the VIP upgrade. And that is going to be this time. It's going to be the day before the epic intensive, not the day after. All righty. So, yeah, the masterminds included with your VIP ticket. And because of the popularity and enthusiasm of this last intensive, we're going to be revealing the weapons of mass production once again during this intensive. Typically, we change the theme every single time. But we're going to do it again. But this time in St. Louis. We're going to reveal the weapons of mass production.

this time in St. Louis. So if you'd like to join us, we'd love to have you. Go to Epicintensive.com for all the details and reserve your seat right now while they are free. Yes. Actually, they're not free. They're better than free. We're going to pay you to be there. It's a $97 seat deposit.

That's going to be requested when you register. However, a crispy $100 bill will be returned to you at registration. That's a $3. I'm going to pay $3 to go there. I mean, annualize. That's like a 300% return on investment. And if, I mean, if you were to analyze it, it, that's what it'll come out to.

And that doesn't even mention the three days of business transformation that awaits you virtually priceless. So go to epicintensive.com. Join us and we will see you there. All righty. So today we're going to talk about creating a lead machine for your business, a lead machine for your business. This is the type of machine that pours leads into your business day in and day out,

whether you feel like generating leads or not. Those leads are going to continue to come in. It's a machine that is automated and delegated to work. with or without you. It's just going to keep on working. And this is really important because if you don't create a lead machine for your business or if you get this whole lead generation thing wrong, you're not going to have anyone to talk to. No, your production is going to be inconsistent, which is going to make your income inconsistent.

You're going to be on that roller coaster income, right, or that income roller coaster. And ultimately, it's going to be creating little to any regular opportunity of generally. generating any income at all. You're going to be frustrated. You're going to be discouraged. You're going to be angry. And, you know, likely your biggest fear is going to come to fruition. You're going to be back on the streets looking for a job or you're going to be stuck at your current job. However, if you get this part right, you're going to have plenty of opportunity each and every day. You're going to elevate your negotiation position because you're going to have plenty of leads to choose from. It won't be a big loss or a depressing moment if you happen to lose a few. No, and there'll be

the, I mean, the next opportunity is going to be right behind that one. The following day, you'll have new people to talk to, new leads to work. It will instill confidence in you personally, of which that's going to inspire consistent activity, ultimately creating a dependable business for yourself, one where you are independent, no job needed here. That's, if you get this lead generation machine right, this lead machine right, that's what's in it for you. So there are three components to creating a lead machine, all right?

three components. Number one, you must be able to find problems. That's number one. Number two, you must be able to promote solutions to those problems. And number three, you must be able to automate and delegate the entire process. Okay, so one, you've got to find the problems. Two, you've got to promote the solutions. Three, you've got to automate and delegate it.

And boom, you've got a lead machine. All right. So first, finding problems. Finding problems. because where there is crisis, there is cash flow. Of all the real estate transactions that happen on a daily basis, 95% of them come from sellers that want to sell. You don't want to play in this arena.

I mean, although you may find a deal here and there, you may get lucky every once in a while, it's going to be extremely tough finding discount of properties here, finding those discounted properties consistently if you find them at all. Discounts do not come from people that want, want to sell or are interested in selling. No, your deals come from the other 5%. 5% of the real estate transactions that happen on a daily basis

are of people that need to sell. All in that 5%. They need to sell because they have a problem. They're in some sort of financial distress. They're in personal distress or financial distress or the property itself is in distress. And they will exchange equity for peace of mind. Equity for alleviating or,

removing entirely their distress where there is crisis there is cash flow look for the crisis look for the problems there's no other way to buy discounted real estate unless you get good at finding property owners with problems you are in the business of solving problems and improving the quality of life of your customers you are a problem solver look for problems rather than profit focus on the problems and the profit will follow. You know, Ryan Nicol, Epic ProCatty member, he's an excellent problem solver. You know, he posted a photo on Facebook recently saying that this little beauty right here was given to me yesterday. It was a two-bedroom one bath, a picture of a two-bedroom one-bath property and it cash flows $250 a month. People just don't give you their real estate. They don't

give it to you unless it was a problem for them, unless it was some sort of problem that you were able to solve for them. That's what they gave you as payment. Ryan solved the problem and you got a free cash flowing house because of it. And then right there in the comments below, Corey, another Epic Pro Academy member, coincidentally, an excellent problem solver wrote, I love those. Corey wrote, I love those. Meaning Ryan's free house wasn't a fluke.

It happens all the time. If you focus on the problems, the profit will follow. Right. So problems. Who has problems? Well, everyone, really, right? I mean, at some point in life, even at multiple points in life, maybe all the time for some people. We all have problems. But whose problems are you looking for? Which problems do you want to focus on? Well, you're a real estate investor. So you're looking for property owners with problems. You're looking with buyers with problems. You're looking for lenders with problems. You're looking for investors with problems. you're looking for tenants with problems,

all of which they all have problems that you can solve. And if you help enough of those people get what they want, if you help enough of those people solve their problems, they will gladly help you get everything that you want. People with problems, they're everywhere. There's no shortage of people with problems. All right. So where do you find these people with problems?

Where do we look? Well, I'll start to start with the obvious. There are plenty of people on Craigslist with problems. It looks like they have things for sale or they want things. But ultimately, if you're on Craigslist, you kind of got a problem. You just really do. It's kind of scraping the bottom of the barrel when it comes to classifieds. You got a problem there.

You just have to change your mindset when you're looking at Craigslist. You've got to redirect your focus to look for the problems. Craigslist, it's loaded with problemed people. Open the newspaper each morning. There are pages and pages of problems to be found there. Wholesalers are constantly finding people with problems. Look on the MLS. There's people with problems there.

There's plenty of problems there. People that can't sell their house. Those are your extended days on market problems. People that couldn't sell their house. Those are expired listing problems. There's FISBOs, people of which can't or won't hire a realtor. They've hired some discount service. Because they got a problem.

I mean, nobody wants to go sell a house on their own when a realtor could do it for them. But there's something that is in their way. or preventing them from being able to do that. And if they don't hire a realtor, they're probably going to have a problem. So who do people with problems frequently call or who do they frequently go see? They go and see attorneys. They go see lawyers, right? Align yourself with an attorney or two.

And you find all kinds of problems. Bankers. They're a direct source to property owners with problems. Go to networking events. There's all kinds of buyers and lenders and investors there that all have problems. They're networking because they have a problem. Nobody likes networking events. I mean, the strange few, but nobody likes going there.

Everyone's going there because they got a problem. They're hoping they can find a solution for it. The buyers and the lenders and the investors, they can't find any deals. They can't find any place to place their money. They got a problem. Take a trip down to your city or your county office or even the city or county's website. You're going to find tons of problems there. You find code violations.

You find tax liens. You find evictions. you find fire damaged properties, you find condemned properties, probate records, divorce records, bankruptcy records, sewer liens, weed abatements, all kinds of problems over there. Just like the city and the county buildings are like a house of problems. Drive your neighborhoods, people's houses that have problems, they stand out like sore thumbs.

The paints chippin, the newspapers are piling up, the grass is overgrown. Problems are really easy to see by driving neighborhoods. In a nutshell, everybody has problems, and you can find those problems everywhere. All right? That's how you find the problems. They're everywhere. Just keep your eyes and ears open.

Refram your focus and reframe your thinking to be looking for problems and not, how do I find discounted real estate? No, find the problems that discounted real estate is right there with it. Focus on the problems the profit's going to follow. All right? Second, promote solutions.

You got to find the problems, then you've got to promote the solutions. Why promote? that word. Well, you really are in the marketing business. You're in the promotion business. Most real estate investors, they think they're in the real estate business. No, wrong, sorry. Really, you are first in the marketing business. You're in the promotion business. You're in the marketing business. Second, in the problem solving business. And then you're potentially in the real estate investing business.

But first, the marketing business, second, the problem solving business, and third, the real estate investing business. I mean, investing isn't even your primary job, even though you call yourself a real estate investor. So you have to promote your solutions to people with problems in order for you to attract them to you. They just come out of the woodwork if you got the solution. If you got the drug that ails them or the, is that right?

Did I say that right? If you got what ails them, if you got the drug that's going to fix their problem, that's how you attract them. So how do you promote then? How do you promote? All right. So we've got direct mail. We've got classifieds. We've got classifieds both online and offline.

People still read newspapers. You got flyers. You've got bandit signs. You've got car raps. You've got car signs. You got door hangers. You got handbills. You got business cards.

You got rea clubs. You got networking events. You got social media. You got Google. You got Facebook. It has never, ever in the history of mankind been easier to market and promote your solution to a large number of people with problems that it is right now today. You have no excuse.

It's never been easier. The barrier to entry on that sense is really, really low. So you've got to promote the solutions, all right? So what are the solutions? What are you promoting? What solution do you bring to the table? Right? what do you have to offer as a private real estate investor?

What do you have to offer? You bring fast to the table. You bring a fast solution to the table. You bring an easy solution to the table to your people with problems. You bring cash. Everybody loves cash. That's a solution for a lot of people. You bring confidentiality.

Yeah, people with problems, they might not want their business all out there in the street. You can protect their confidentiality. you bring competence. You bring certainty to the transaction that it's actually going to close. You're a professional. You bring free, right? You bring free to that person.

They don't have to pay you a fee. You're going to make your fee or you're going to make your profit on your exit strategy. There's no realtor involved. They don't have to deal with open houses and all that inconvenience. They don't have to deal with days on market. There's no hassle. It's stress-free. It's efficient.

You bring it all. So if your job is to solve problems, focus on placing your solutions, what you bring to the table, in front of the people with problems, promote your solutions. Focus all of your marketing 100% on what's in it for them, what's in it for your customer, what's in it for the person that you are trying to attract. Forget about yourself. That'll come soon enough. focus 100% on what's in it for the person that you're trying to attract. If you want to attract those people to you, that's how you do it. Don't waste money on branding.

Not until you've got money to burn. Not until you've got some money in the bank. You've got some reserves. You've got some comfort level. Don't waste your money on branding. Invest your money on what's in it for the customer, the person that you want to attract. That's what makes for an expert marketer, which is your primary job. You want to become an expert market.

marketer, then an expert problem solver, and then you can start thinking about being a real estate investor. They have to happen in that order. So you can have a really tough time being a real estate investor. You might be a real estate buyer, but you're going to have a tough time being a real estate investor. All right. So that's number two.

Number three. Third thing, automate and delegate the process. Automate and delegate the process. So what's the difference? And why should you consider both? Well, first of all, the secret. to growth is actually to remove things from your plate. That's how you grow.

You start cutting things off. So you need to automate or delegate stuff to free you up to work on your business rather than in your business. So automate really means, I guess it essentially means a machine that runs tasks, a robot that runs tasks. Delegating essentially means a human that runs those tasks. So automate is the machine, delegate is the person. and although a great portion of real estate activities can be automated,

I really ask you to consider that just because you can doesn't necessarily mean that you should. So overall, here's my rule of thumb. Do what you do best, automate everything else, and then outsource or delegate what you can't. And what I mean by what you can't, not just because you can doesn't mean you can. I'm saying what you can't,

don't automate the stuff where the people are involved, where your customer is involved, where they need to talk to a person. I mean, this is a people business. You're never going to get around that. As long as people own real estate and as long as people buy real estate, people will have to deal with people.

Every piece of real estate you buy or sell is going to be from or to another person. The biggest and baddest and best and brightest minds in Silicon Valley for probably almost 20 years have been trying to automate the real estate transaction trying to remove real estate investors

from the transaction, trying to remove realtors from the transaction they've been trying. And it's always been a fear. It's been, I remember it. And I mean,

when realtor.com came out and Zillow came out, I mean, they were deploying all these different strategies and methods and technologies and technologies and softwares of how,

you know, and Redfin came out and Trulia came out. Like, it was just, it was terrifying for a real estate. I remember because I was one when all that stuff was first introduced. And right now today, we have just as many realtors as we did back in 2001.

It's a people business. We still need people to run this business. And, you know, where automation fails, just because you can automate, doesn't mean you should. For example, try calling your bank. Try calling the phone company. Try calling the cable company. Try following, I think it's direct TV. Try calling direct TV.

You'll go through a darn phone tree that's going to take you 15 minutes to go through before you ever get to talk to a person. And you might have one simple question that could have taken 60 seconds. But you've got to jump through all those hoops and then you never really get it solved because you don't have the time to do it

or you put it off until later to when you can do it, but then you keep on putting it off, putting it off. And all you do is get angry. You don't want your customers to feel that way. Gary Vaynerchek in his book, I think was Crush It. I've read them all. I forget what I've, the big nuggets that I've gotten from each one of those, but I think it was Crush or Crush It.

And that was, he said, the more high-tech business gets, the more old-fashioned your customer service needs to become. And when we're talking about real estate, it couldn't be any more true. This is a people business. It's a people-business built on relationships. and if you put high-tech in the way of those relationships, you're doomed. The more high-tech your business gets, the more old-fashioned your customer service needs to become.

I've remembered that, and I've never forgotten it. And real estate is a people business. It's a relationship business, and people can't build relationships with robots. So here's what I mean. Go ahead and automate your direct mail. You know, spend an hour once a quarter and get that all set up, schedule it out,

for the next 90 days. Just automate that part. You can automate that part so it's all sent out and someone else does it, right? Or something else does it. But delegate the sorting of the responses that come in from that direct mail. You want a person on that, okay?

Then go ahead and automate your pay-per-click campaigns. Automate your Facebook marketing. That stuff you can automate. But delegate the sorting of those inquiries. Go ahead and delegate your email auto-responder follow-up. and you can automate that, but even though you can automate voice broadcasting and text broadcasting, like a lot of people do,

I recommend you delegate that. Automate your email or auto responders, but I would recommend you delegate the voice and text broadcasting, even though you can automate. That's a perfect example. You can automate those things, but I recommend you delegate it. I mean, that's real human communication.

It's real human interaction. And within our business, those are just two, those are just two houses and are the, or the people's problems that own those houses that are alike. I mean, there are no two houses and there are no, got my fat tongue in the way, sorry. There are no two houses, no two people's problems that own houses are alike. and automation is going to fail, it's going to break down, it's going to let things slip through the cracks. You want to delegate that part. Don't remove the people from a people business.

Not a people business like ours. Not a people like a business like ours that pays in the way it does. Losing one deal can significantly impact your bottom line. Gaining one deal can double your month. All right. So what do you delegate? What do you automate? What do you delegate?

Well, Members of the Epic Pro Academy, if you've been listening here for a while, you've heard me talk about the Daily Success Report several times. Activities on the Daily Success Report, those are the money-making activities. Those are the activities that you should be focused on on a daily basis. I recommend focusing at least two hours a day on just those activities, because it's those activities that gets the results that you're looking for. And you want to automate and delegate those activities to scale your business.

Make sure the activities are getting done so you get in the right results, then automate and delegate those activities so you can scale your business. If you want to copy of that report, if you're just joining us this first time you've heard me, you can go to daily success report.com. Daily success report.com. And you can get a list of all of those activities, all right, the activities that get the results. And Brad Donnelly, you know, I just got back from St. Louis. We went to go see a baseball game.

I'm in L.A. He's in St. Louis. and the Dodgers were traveling and they were playing in St. Louis. I just got back and we had a great time. But we're good friends. I really respect him and admire him and we become good buddies. But one of the things I really respect and admire him is because he uses those activities on that daily success report. He uses them religiously. He uses them still to this day after, I don't know, four or five years of being in business.

And that's what gets his results. It got him his $30,000, his first $30,000 inside of his first 45 days in the business. And he kept on working those activities and getting his results up until he got $100,000 a month. He then started to automate and delegate those activities to get to $200,000 a month. And now he knows exactly how he's going to hit his new goal. His new goal is to have a $500,000 a month by December, by doing what he does best, automating the rest and delegating what he can't. He can't delegate, and he understands this, the people part of the people.

of the business. All right. So make sure, if you don't have a copy of it, go to daily success report.com. If you are an academy member, it's in there under the paperwork and contract section. Okay. So here's an example of how I've put it all together inside of our business to create a lead machine with my partner, Josh. He's on the ground in Orlando.

I'm in Los Angeles. He's on the ground in Orlando. So first of all, once a quarter, we print a list. We print a list of people with potentially or, with potential problems. We'll do vacants. We'll do code enforcement. We'll do tax lien.

We'll do absentee owners. And we'll go ahead and we'll compile that list. We'll remove all the duplicates. And then now we've got a really nice solid list. We do that once a quarter. And then we go and we send them mail, direct mail. We send a small little simple postcard. And on that postcard, it promotes a 24-hour recorded message.

And we go back and forth on this, but I'm just giving you an example of what we're doing right now this second. We do the 24-hour recorded message. We say, call now, listen to this message for all the information. No one will answer. Okay? Not groundbreaking if you've been in this business for a while. And we used to use it a lot. Then we went back to a live answer and now we're back to this.

Just because the response rate is better. And we use on that phone number their calling is what we call a call capture phone number. And I just want people to call. I want more and more people to call so I can capture their phone number. Parts automated, right? So we've automated the call capture portion of this business. And anybody that leaves a message, an automatic text message is sent to Josh that someone just left a, did I say that correctly?

Anyone that calls that recorded message and leaves a voicemail triggers an automated response that sends Josh a text message that, hey, someone just called and they left a voicemail. Josh returns those voicemails right away. Okay, so even though they're calling 24-hour-I-recorded message, if they leave a voice message, they're getting called inside of 10 minutes. We move fast, okay? Then everybody that hung up, that called that day, but did not leave a voice message and they just hung up,

what we do then is the next day we send out a slide broadcast. We have five pre-recorded messages, one for Monday, one for Tuesday, one for Wednesday, Thursday, Thursday, Friday. They're all specific to the day. They mention the day. So they sound current. They sound real.

They don't sound automated. Like it's just a universal message that goes out to everybody every day. So we have that. And our virtual assistant, delegated, goes and sends that corresponding message, that day's message out to all of the people

that hung up. Okay? And when we do that, we use the caller ID of a call for. that sends live calls to Josh. So when they call back, and a lot of them call back and they call back fast, those replies go straight to Josh's phone where he can now answer live. No longer we're using the recorded message.

We're going to answer live. So we use the recorded message to increase the response rate, but then we go ahead and we send that broadcast so we can talk to them live, those people that did not leave a voice message on the first day. Then if Josh can't answer in 10 seconds, automated response, that call is forwarded to a call center, a delegated reply. It's a person over there. They do the sorting for us.

That call center then captures that leads information, asks some a few questions, and then that call center with the click of a button, automated, drops all that information into our CRM, into our database. We use REI Solutions. And now REI Solutions then sends an automated, notification to Josh to call that leadback ASAP. Then, on the first Monday every month, we send a slide broadcast to all of the numbers. Everybody that's called on Monday, we send a slide broadcast to all of the numbers.

We've been doing this for so long and we've got such a big database of numbers. We do a deal every single time we send that out. We get a property under contract every, on the first Monday of every month, essentially. or it came from the activity that we did on that first Monday. And then the third Monday of the month, we send a text broadcast to all of our numbers. Let me back up on that first Monday of every month. That's not automated. No, it's delegated.

So it comes up on a calendar, a reminder of my virtual assistant who sends me a little Voxer message. Voxer, it's a free app on your phone, on your smartphone that you can get for free. And it's just, it's like texting, but it's with audio. It works kind of like a walkie-talkie. and she'll send me a voxer on the first Monday of every month saying, Matt, I need your slide broadcast message today. Then all I do is speak into that voxer and I say, and I'll say something like, hey, did you see what Donald Trump did today?

I can't believe it. It's probably going to have an impact on my buying power. I can only buy a couple more properties this month. So is yours still for sale? Call me. So I do something, and it could be Donald Trump. It could be, did you see what the Fed did? or, you know, I don't know if you saw what the most recent real estate report did.

It could be anything, but I just make it current. So it's delegated. It's not 100% automated. And because we do that, we get a really high response rate with that. So that whole first text of the month or first Monday slide broadcast, that's delegated. An automated pop-up comes up from my VA. She then asked me to record, and it takes me 20 seconds to record. it sends right back to her, then she loads it up, delegated, and then slide broadcasts it out,

which is automated. Got it? Then we do the same thing on the third Monday of the month with a text broadcast. And we do that hit that every single number. Nothing this way falls through the cracks. And that's how you build a lead machine. All righty. So that's it for today.

I'll see you next week on another episode of Epic Real Estate Investing. God bless. And to your success, I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.