Epic Real Estate Investing - Market Update and How to Create Consistent Quality Leads | 514

Episode Date: November 5, 2018

Instead of focusing on results, focus on activity in order to create consistent quality leads! Learn what consistent quality leads are and where to find them, how to stay on the success cycle all the time, and why you should focus on money-making activities. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is the Epic Field Report. Hey, Steve, I noticed your big win on Follow Through Friday inside of the Epic Pro Academy's private Facebook group. Congratulations. Thank you. Yeah, I just wanted to get you on the phone real quick and ask you a few questions about it and how it all happened. I'll just read it here first so everyone can hear lots of wins. Let's see. Closed on my first wholesale deal, $20,000 wired into the account.

Feels really good. Time to turn on the gas. So that's awesome. Yeah. find this deal, Steve? Through direct mail. From a lady who, well, you want me to go into it and tell you what happened to it? Sure.

Yeah, tell me how it went down. So I sent her a postcard that she had inherited the house a couple of years earlier. Her parents were quarters, and she had a house full of stuff, and she spent two years trying to clean it out. At the end of two years, she finally decided that she'd have. enough and was a motivated seller. I always say that you can tell a motivated seller and I've listened to a lot of sellers that aren't motivated and this one definitely was so it was a good deal. Fantastic. So seeing that you put $20,000 into your bank account, I imagine that you

flipped the property. Is that right? I did. I just assigned the contract. Yeah. Perfect. And so what would you say is that we've been working together for a long time and it hasn't been the easiest road for you. It's been a little discouraging, frustrating. I commend you for sticking to it. It paid off. What is the lesson that you learned from this deal? Persistence, more than anything. Just keep at it, you know, and mostly that there is light at the end of the tunnel, I guess. Like I said before, I was getting a whole lot of non-motivated sellers. It's making offers, but nothing that they were really, you know, would accept, which means that they weren't motivated. But when you find somebody that is and you give them a fair offer and you explain to them, you know, why you're

offering this, that it can happen. It definitely can't happen. Not as much as I would like, but, you know, I think the more experience that I get in talking with people and negotiating and understanding how to do it, um, is, goes a long way, I think. So it's getting easier and easier. But, um, but, um, but yeah, it's, you know, it's a pretty saturated market where I am. There's a lot of other competition and, you know, niche, um, mailing list, I guess, to be able to, uh, to find some people that aren't already saturated with people, but, for instance, that's all just absolutely. You know, everyone comes from a different background that have different resources, just variables in their world, whether it's professionally or personally.

And everyone grows at different speeds. Everyone gets their results at different speeds. But the key to it is just being consistent and persistent. And as you mentioned, you know, like any skill that you develop, the more repetitions that you get in, the easier it does get. And, you know, this is a perfect example of it. So thank you so much for sharing. How are you going to celebrate? Well, you've got a bottle of champagne. Do that. And, you know, I'm going to take the majority of this money and put it back into the business.

Sure. But, you know, maybe take a real time with the family or something. Awesome. The idea is just dump it back in and, you know, make it happen again and again and again. And eventually leave my job, you know. Right. Yeah, so that's the goal. Yeah.

Yeah. Perfect. Well, Steve, keep doing what you're doing. and there's no doubt in my mind that that will happen for you. If you need anything, you know, how to get in touch with us, reach out, and we're here for you. Absolutely. You've been great out, man. Thanks.

You bet, Steve. Take care. Bye. Bye. This is Terrio Media. Yo. Yeah, yeah, we got the cash flow. You didn't know home for us.

We got the cash flow. Yeah. What's that? Hello. And welcome to the epic real estate investing. show where we meet here each and every week to help everyday people escape the rat race using real estate. And just thank you.

Thank you for listening to the show. Thank you for sharing this with your friends and family. You can stay connected with us right here by hitting the subscribe button. You can stay connected with us on Instagram at Epic Real Estate. And you can stay connected with us on YouTube by going to Epicure. ore. Where the video versions of the podcast are uploaded every week. All righty.

So next week, speaking of every week, next week is going to be a little bit different. We're going to do things a little bit differently. It's that time of year to where we go back to the basics and we reset, getting ready for the new year. But around here, we start our year early. We don't wait until January 1st like everybody else. We start our year early on December 1st. And the reason being is the fourth quarter for us historically has always been the best quarter for us with an emphasis on the specific month of December. We always do our biggest deals in December. It might not be our highest volume in deals, but it's definitely for some reason. It's always our biggest profitable month. And the spring, right after December, it's really strong and it's just filled with

opportunity that you want to have your business running on all cylinders when it hits. And you don't want to be revving up after the holidays like everyone else and kind of, you know, ramping up through December or January. You want to be able to take advantage of those opportunities that are in January while everyone else is trying to, you know, wiping the gunk out of their eyes and getting rid of their holiday hangovers, right? So, So Monday through Thursday of next week, I'll take you through the process of setting up your new year. And if you do it right, you'll even land an extra dealer to before Christmas. All right?

So get ready for next week. Now today, just before I sat down to record this episode, I was scrolling through my Facebook feed. And I saw a post by a good friend of the show, Mr. Justin Colby. And he was sharing his insights on the market. And I just wanted to read it to you. Okay. So Justin writes, food for thought. One, mortgage rates have hit a seven year high.

several weeks ago, the 30-year fixed mortgage rate broke through the 4.6% mark, the highest level since May 2011. All righty? So why is that important to you? Well, what it does is it impacts the affordability index. So number two, affordability is dropping and demand might soon follow. For the past several years, home prices have increased at twice the speed of inflation. Definitely inflation plays a factor. The affordability index, though,

is really has to do with the lending guidelines. So when the interest rates go up, your payments go up. And if you don't make enough money to make those payments, then the purchase price that you can afford for a home is going to drop. The bank's qualifications are going to be a little bit more strengthened on you and kind of push down your purchase price, which means that decreases the buying pool for people that have their houses for sale. So now they can't get as much for their properties

because they don't have as many buyers that qualify for them because of this affordability index. Um, he continues to write for a while, this, uh, didn't have too much of an effect on the market because there was so much pent up demand. However, the continued price growth and the mortgage rate hikes might finally be getting to buyers. Now, this is true. Okay. Um, it's certainly going to have an impact, but it's only really going to have an impact on your business. If you are fixing and flipping to retail buyers, that's where it's going to have the biggest impact. That's where you're going to feel it the most. You won't be able to sell your finished product for as much money. You won't be able to sell your finished product for as much money. because there's going to be fewer people that can afford it. All righty. Number three, home sellers are reducing prices. Not surprisingly, the combination of sustained high prices, increasing mortgage rates and a drop in demand is finally starting to have an impact

on the real estate market. While there are still no major signs of a real estate slowdown yet, there are some worrying indicators. Crucially, more sellers are now reducing prices more than a quarter of homes listed as September 16th had a price drop. All righty. So that's, to me, that's good. news. I find that really encouraging.

The reason being is when a market has an adjustment, if it happens really quickly, you know, the first people that really recognize it and notice that are those that are in the real estate industry, whether there's a real estate agents or real estate investors like you and I. It's because we study it every single day. We're looking at it every day and we're looking at it objectively, right? But who discovers that last are typically the property owners themselves. They always think their house is worth more than it is. And they've been, you know, a decade of news being pumped into their ear or information pumped into their heads that their houses are continuing to increase and prices are continuing to arise and the appreciation

is pulling them out of the hole. And they've been hearing that for a really long time, but they don't look at it every day like you and I do. So if it drops too fast, they go through a period of denial typically in a market adjustment. And it takes them three, four, five, even six months to realize, wow, maybe my house isn't worth what I thought it was, which makes the buying and the listing of properties much more difficult, buying at the correct price, listing at the correct price, much more difficult if the sellers aren't on board because they think we're just trying to steal their house from them or we're just trying to price that property low so we can sell it really quickly, right?

So it takes a while for them to catch up. But if we have this slow, subtle adjustment, then it doesn't disrupt our business that much. And what I think of, I actually look at all of this information, and I think this is actually good news. This is power. If you were to take this information into a meeting with a seller, you could show them, look at what the big, bad, mean, old market is doing to us. Right? Not you delivering the bad news. This is market data delivering the bad news.

Remember, it's you and the seller. You're on the same team and you're taking on the market. The market is the only thing that's going to get in the way from you and the seller getting what you want out of this transaction. So be armed with this information. Be on the lookout for this information. The other thing, though, when you find this information, particularly like in mainstream media, understand this is all retail data.

Certainly it has an impact on us, but it's mostly retail data for retail buyers and retail sellers. the people that want to sell. And that's not who we're looking for, right? Right. We're looking for the people that need to sell. We're looking for that off-market stuff. And that stuff, whether the market is up or the market is down, that stuff is always there.

And it's always there because distress is always there in life, unfortunately. And it attacks people on a daily basis. And surprise this happens and people get divorced and people die and people get sick and people lose their job. and people get their job relocated. People inherit properties and all this different stuff. People have bad tenants. People have just life occurrences that cause them or that are bigger problems than what they have than selling their house for a top dollar has to deal with.

That happens to people on a daily basis. That opportunity is always going to be there. So keep your mind in the game. Understand you're looking for people that need to sell, not people that want to sell. And any bad market data, that's stuff you could use to your advantage to share with sellers. Say, look what the market is doing. the longer you wait, probably the less you're going to get.

So let's take care of this right now. Got it? All right, cool. So thank you, Justin. Thanks for sharing that. And information, it's good or bad. It just all kind of depends on how you focus on it. All right?

You get what you focus on. And I think that's actually good news. All right. So today, today's show, it's all around generating consistent quality leads. Who doesn't want some of that, right? Consistent quality leads. So I recorded a video for this. And if you feel the need, you can go to epic rei.tv.

That's our YouTube channel. That domain name will forward right to our channel. And you can watch the video. But what I did is, I just ripped the audio from it to play it here for you now. I don't think you necessarily need the visuals. I mean, I really think you'll get everything that you need just out of the audio. But, FYI, the video is up on epic rei.com. All righty.

Enjoy. Hey, Matt here. And welcome to the epic real estate investing show. I got a really hot show for you today. inside of one of our private Facebook groups, our epic community, I had asked the question, if you had a magic wand, what would you wish for inside of your business? And there were a lot of answers that came rolling in. And the one that kept coming up over and over and over is consistent quality leads.

How do I create consistent quality leads? That's what I'd wish for if I had this magic wand. So let's go over that. How to create consistent quality leads? It seems to be a common issue with people. So let's go ahead and solve it. Consistent quality leads. Okay.

All right. So first, what's a lead? What is a lead? Well, a lead is nothing more than a name, a phone number of a property owner. Okay? That's a lead. And we can find those anywhere.

We can just pick up the phone book and start dialing, right? And some people do that. Some people actually do that. But that's a lead, but we want to put the emphasis on this quality lead, right? So a quality lead. What's a quality lead? Well, a quality lead is a lead that... Emphasize that.

That needs to sell. That's a quality lead. So first, why would they need to sell? Well, it typically means that there's something going on in their life. There's some sort of problem, some sort of challenge. some sort of issue or circumstance that is bigger than the idea of selling the property for top dollar. So they'd be willing to sell that property, even if it's at a discount, even if it's at a deep discount and sometimes, because that liquid cash or the liquid proceeds that they would get from that property is going to help probably solve this other problem.

Okay. So types of problems, I don't know, what would that be? death, divorce, disease, bankruptcy. It could be, they could have problem tenants, have job relocation, job loss. It could be all kinds of things. There's just be a pain in their butt that they just want to get rid of and they don't want to deal with it anymore.

It could be all the number of those things. So that's who we're looking for. Leads that need to sell. Yeah, a lead that needs to sell is a quality lead. So how do we find those? Well, we can certainly, I mean, it's no mystery. You can go type in into Google, marketing lists or marketing services, those types of things. And you can find categories of people.

You can find property owners that are going through bankruptcy right now. You can find property owners that are going through divorce right now. All that information is readily available. So those are easy to find. But when it comes to really generating and finding the quality, there's a couple other things you want to look at. Let me show you here. One is your expectations. Okay? Setting your expectations. So if this were all the houses that were, for sale, right? 95% of them are by people that want to sell. Okay? And there's a small portion down here, 5% that need to sell. You've probably seen me write this before, maybe, if you've been around here for any length of time. So this is our, really what we call our quality leads. These are the ones

that need to sell. It's a very small portion of the most of the properties that are out there for sale. And this is what we call the low-hanging fruit. This is the quality. This is where it's easy, right? But unfortunately, we just have to go through a bunch of these to go ahead and push these off to the side so we can identify them or they identify themselves and then we can go in and go to good deal for ourselves and help them out of their problem. Okay. So that's one. Just understand this is, this is pretty close to what it is on a daily basis. And these leads get snatched up every single day. But they get replenished every single day because life's challenges, life's problems. Life just happens to people every single day. All right. So these are

always there regardless of market conditions. Whether the market's up, markets down, it's always there. Right. So there's your quality leads. Now there's a little overlapping area that you see in here, right? How do we get those leads? Because they might not be as good of quality, quote unquote, quality as these, but they're not not be as bad as quality as the ones that are up here. Right. So how do we get those? Well, it really comes down to your people skills. It comes down to your experience. And the people skills, it is a skill.

Okay, it's how you build rapport. It's how you present your price in terms. It's how you convey your competence and your trustworthiness, right? So all that is done in here. And it's a skill just like any other skill where it can be learned. It can be trained on and practiced. and it can improve, just like if it was your golf swing, just like if you were going to be practicing playing the piano,

just like if you're going to be juggling three tennis balls, those are all skills. And you just practice them over and over and through massive repetition, you get really good at them. And the better that you get at these skills inside of your real estate investing business, the more you get to play over here. And you can start taking some of these lower quality leads

and turning them into quality just because you have the skill to do so. Okay? you can start broadening this circle here. And just kind of look at that. Without generating any more leads, by just improving your skill, say you were closing one out of 100 phone calls,

one out of 100 incoming phone calls, was turning into a deal for yourself. And just say, and then you're getting these down here where it's nice and easy. Just by improving your skill a little bit, what if you just close two out of 100? Right? Just two out of 100,

because you can play in this little overlapping area here. What would that do to your body? bottom line. It would double it, wouldn't it? Essentially, I mean, that's two deals instead of one with the same number of leads just by focusing on your skill. All right? So have your expectation set appropriately is the first thing to finding quality leads so you don't get discouraged when you're talking to a bunch of people up here. That's just the way it is. That's the way it is for everybody. Okay, there's no way around that. And then start really focusing on your skill. You see, most people, they'll go out and they'll practice their skill and they'll go through their major

repetitions on live leads, leads that they paid for, right? Leads that they put a bunch of effort and work into generating and they go out there and that's where they do their practicing. It's a very expensive way to learn this business. So consider practicing just like you would at the driving range, right? Find a friend or a family member or your neighbor or somebody at work and your day job and go ahead and just role play. It feels funny. It feels silly, but it's how much do you want it? It's a skill. And the better that skill is, the more you get to play here, the more you get to play here, the more money you're going to make without increasing your marketing budgets. Okay?

Then, when the skill gets really good also, there's low-hanging fruit that you probably already getting anyway, all of a sudden, those discounts become much deeper, and you start creating a bigger profit for yourself there as well. So you can, by increasing your skill, you can do more deals with the leads that you already had, and you can do better deals with the leads that you have as well. All right. So needs to sell. So make sure that you're, let me change the color here so we can identify this. Okay.

First, make sure you're looking for distressed property owners. Okay, not just any property owner. You're going to look for distressed owners. You're going to set your expectations appropriately. Understand probably only expectations. Okay. Understand that probably only 5% of the leads that you're generating. Do you have even a shot at?

Okay. And then three, to increase your opportunity, what you're going to do is you're going to practice. and improve your skill. Okay? All right. So there. We got the leads. Now we got the quality leads.

Now, how do we find them consistently? Okay. How do we create the consistency? Okay. So when it comes to consistency, we really don't have to look any further than the law of cause and effect. What that law states is for every effect,

there is an equal cause, or a direct cause. For every direct cause, there is a direct effect. So the effect we're looking for are consistent quality leads, correct? All right. So all we need to do is focus on creating a consistent cause or consistent action or consistent activity. So there's two ways we can go around creating consistent activities that's going to generate the leads. So first is you can build essentially a machine. You can build a system, an automated system that works 24 hours a day around the clock, even when you're sleeping, even when you don't feel like working, even when you want to take the weekend off, even when you have an unexpected family emergency, you can't work that day.

Or even on just the days you just don't feel like working. But you can have this machine creating these consistent quality leads for you, even when you're not working. So that looks like direct mail, you do PPC, you do Facebook ads, we can do TV, we can do radio, you can do billboards, okay? So these are all the ways that you can systemize and automate your lead generation to create the consistency. That's kind of what a system is. It creates consistency, right? You put, have this cause in and the effect comes out on the other side. That's the system. But what these all have in common, it typically takes money. You need a budget.

You need a marketing budget to power an engine like this, a power a lead machine like this. So the other alternative would be, you have to be consistent, right? You have to be consistent with the activities. And that looks like, you know, we got dialing, right? You got door knocks. You got to put up bandit signs. You got a network. You got to put up flyers.

You got to put up door hangers. right? All equally effective forms of generating leads. But one over here, you got a system or machine producing a consistency. And if you don't have the means to put that into place, what you have to do is you have to be consistent yourself. You have to be the consistent engine. You have to be the system. So how do we do that? Well, let's look at this. Because what I've found is, if you enjoy doing something, you typically have no problem being consistent. consistent, right? If you are good at something, typically no problem being consistent. If you are successful at something, typically no problem being consistent. But if you don't enjoy it and you're

not good at it and you're not getting successful at it, what it's going to take is just discipline, right? And that doesn't excite a lot of people. It is truly as the pathway to the freedom that each and every one of you are searching for through discipline. But it takes willpower and we're human beings. And we break down now and then. We have things that come up. We have emotional stuff. We have circumstances. We have excuses. All these different things that get in the way from creating that consistency. So let me show you something of how you can create consistently or consistency all the time inside yourself. Okay. And we call this the success cycle. Okay. The success cycle. Okay, the success cycle.

And it looks like this. When you are successful, what that does is it generates confidence. And when you have the confidence, what that generates is your activity. Okay. And the activity produces the results. Got it? So the success produces the confidence. The confidence produces the activity.

activity produces the results and results produces success. And so it goes like this. This is the success cycle. So there's another cycle here too. It's called the no success cycle. And what that means if you're not having success, what it means is you're not having confidence, right? It's the lack of success is eating into your confidence.

And when you don't have the confidence, it eats into your activity. And when your activity suffers, boy, the results really, suffer as well. I mean, here's our cause and here's our effect that we're just talking about, right? So if there's no cause, we're not getting the effect. We're not getting the results. And if we're not getting the results, we get less success and we just spiral out of control into this little world of disappointment and regret, frustration, and we quit and then we go out and try to fight something else. So with the success cycle, either you're on it or you're off it. So ask yourself

right now, are you on the success cycle? Are you on it right now or are you off it? There's no in between. You're on the success cycle or you're on the no success cycle. So let me show you how to stay on the success cycle all the time. Okay? Because this is what happens is most people, they focus on this success, right? The success cycle. And they got this quality lead. You had the phone call. They set the appointment. And they went over. They presented their price in terms. They said, Mr. Seller, Mrs. Seller, here's my offer. And the seller said, no, thank you. and so they pick up their stuff and they walk out with their contract with no signature on it. They got no deal.

They walk out to their car and they drive home. And they're like, they determine that as no success. Right. So it's no success. So it's put you on the no success cycle. So it killed your confidence. It's killed your activity. Killing your activity.

It's killing your results. And they go out, they try and conjure up the confidence to go out and do it again tomorrow. And they go out tomorrow and no success. success. And so it kills their confidence, no activity, no results. And it just files like this. Okay. That's what most people do is they're focusing on the effect as to the point whether they are successful or not. Are they getting the results? And if they don't get the results, that means no success. Okay. And that puts you on the no success cycle. And this thing just goes around and around until you can get back off it and start getting on the success cycle.

So what top performers with the high achievers, how they measure success, they just define it a little bit differently. They're not looking at the results as their definition of success. What they're focused on is their activity. Their activity determines their success. They have their expectations set appropriately. They know if they put enough cause into their business, they're going to get the effect that they're looking for.

If they focus on the right activities, perform those right activities consistently, and they do that on a daily basis, that's success to them. And that's why they stay on the success cycle, because this is much easier to do, much easier to make. maintain than focusing on the results as your definition of success. Put your faith and your trust in the consistent activities, the right activities, and you'll produce the results. And I have two specific clients that I think of that are really, really good at this. Brad Donnelly, he was one of my very first clients, I don't know, several years ago. And all he did was just focus on the activities, on a daily

basis. And let me just get my activities done and then whatever happens happens. That was his mindset. that. And it's no wonder why he's had, I believe it's been two seven figure years in a row. I know last year was, or two years ago was, and I know he did it this year as well. So he's had two seven figure years in a row. Then some more current clients that just recently only been working them for less than a year is Jack and Josh. And Josh and Jack, when they focus every single day on their activities. In fact, they have a certain number of activities on a daily basis that they have to complete, they don't allow themselves to go home until they get their activities done. Because they know if they consistently fuel the cause, fuel the activities, it's going to

produce the effect. It's going to produce the results. And when they get their results, they've got the success, and then they've got the confidence, and then they can do this over and over and over again. And it's no wonder, inside of our Facebook group, we've got something called Follow-through Friday. And it's where every Friday, the whole community posts their wins. And Jack and Josh, they post their wins every single Friday. And I think out of the last eight months, there's only been two weeks where they weren't posting a picture of a check in our follow-through Friday. And it's because they get that consistent check. It's because they are focused on consistent activity. All right. So let me help you get on the success cycle. What are we going to do

next from here, right? So to hop in here where typically you can hop in, if you're just getting started, You got to hop in on the confidence level. All right. And that starts with education, training, and repetition. That's what we're talking about, right? Repetition. I'm creating that skill, those people skills,

to close those quality leads and get more of those non-quality and turn them into quality leads. So education, training, and repetition can hop right in here to create the confidence. And then once you've got the confidence, it's really easy to perform the activities. But you've got to make sure that you're performing the right activities. So the right activities, the activities that Brad has deployed, the activities that Jack and Josh do on a daily basis,

it's right here on this what we call our daily success report. These are all the activities, the right activities. When I'm talking about the right activities, I'm talking about the money-making activities. This is a little scorecard. They start, they print one of these out every single day, and they just start from the top. They start every day from zero, and they just work their way down all the way down

until they get their set number of points, whatever their target goal is for the day, and they don't go home until they get their points. That's consistency. That's what produces the consistent results. All righty. So if you'd like a copy of this, you're more than welcome to it.

You can go to daily success report.com. Dailysuccessreport.com. You'll have the activities that you need to perform. Focus on your activities. Focus on being consistent with your activities, and you're going to get the consistent results. You're going to get the consistent quality leads. That's how you do it.

All righty? So that's it for today. God bless to your success. I'm Matt Terrio. You know the drink. Yeah, yeah, we got the cash flow. Huh. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home world. We got the gas flow. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com