Epic Real Estate Investing - Success with Virtual Assistants: Are You Delegating or Abdicating? | EREI 166
Episode Date: August 3, 2015Today Matt shares a behind-the-scenes look at how he utilizes virtual assistants (VAs) in his investing business. From creating operating procedures and deciding what to delegate first to coaching an...d retaining your assistants, Matt is leaving no stone unturned. He’s even letting us listen in on a real-world call between one of his VAs and a potential seller. Enjoy! ------- 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
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in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio.
Hello and welcome.
Welcome to Epic Real Estate Investing, the place where I show people how to escape the rat race using real estate.
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Now, I've got something a little different for you today
as I've been working the greater part of this year
toward removing myself from inside my business.
business to a place where I can invest more time working on my business. So earlier this year,
actually, I guess it was late last year in November. Boy, time flies. The time of year,
that's the time of year that each year that I plan for the upcoming year. So it had to have
been November. And what I did is I created an SOP for each part of my business, SOP standing for
standard operating procedure. And I got real meticulous. I got really down to the nitty-gritty.
I literally documented each and every step from each department of my business.
I wanted to create just a document that, or a group of documents that if someone walked into
my business and they had to run this business, they would know exactly how to do it.
And all that would have to do is follow the steps.
So I did that.
And then I took one department at a time and delegated it to a virtual assistant or somebody else.
I started with somebody here in-house first.
And then I started going out and finding people virtually to work virtually.
And once I got that first person up and running, I then assigned another person to a different department.
And then once I got that all up and running, I went and started and got the next department all up and running with somebody else doing it.
And I started with all the least important departments first.
When I say least important, I mean the departments that if the SOP wasn't executed properly.
it would have minimal, if any effect on my income.
That's how I kind of measured the importance there.
The critical stuff.
I want to make sure that the critical stuff,
we got the whole thing figured out before I completely delegated the critical stuff.
Okay?
So that's what we did.
And so those parts that I delegated first,
departments like the admin stuff, the transaction coordination,
the customer service stuff, the IT stuff,
all like little stuff that used to take up so much of,
Mercedes in my time, we wanted to get that off our plate so we could really focus on the money
making activities, the stuff that really drove the business and kind of just delegate all the
supportive roles to other people for support. That's what I call it support, I guess.
And so through all that, we found, we had a, I think we got a couple people here in-house that
work with us, and then we've got, I don't know, probably a half a dozen VAs now, virtual assistance.
And we used almost exclusively through VAs for real estate.com, if you're wondering, for everything,
VAs for real estate.com.
And that hasn't been an entirely painless process.
It has taken some work.
And I think a big misconception in the world of virtual assistance is that all you
have to do is just give them a task or responsibility and boom, voila.
It gets done perfectly the first time and every time thereafter.
And, you know, I was actually guilty of this,
especially after reading the four-hour work week by Tim Ferriss.
I mean, that book made working with virtual assistants sound very, very easy, didn't it?
Well, if you've ever worked with a virtual assistant on any level, you realize that, hey, this isn't as easy as I thought it was going to be.
But it can be.
It can be rather easy, but you've got to realize that your VAs are people, right?
They're not robots that just perform a task perfectly.
They are people.
They're people just like the people that you would hire to work on site, that would work there, right?
Say in the office next to you or share a desk with you.
And regardless of the amount of training and experience that they bring to the table, you still have to show them how you want it done.
You still have to show them how to do it.
And you have to stay in touch and you have to communicate with them just as you would with employees working with you inside your office.
I mean, you see them on a regular basis.
You point out what they've done wrong.
You give them praise for what they've done right.
You train them to do other stuff.
You do that for the people inside and on location.
so the people that you're working with virtually, no different.
Okay.
So about four months ago,
I reached the point where it was time to start delegating
the important parts of my business to virtual assistance.
The department's directly connected to revenue.
And I was a little nervous.
And specifically,
what I'm talking about is answering the incoming calls
from my direct-to-seller marketing,
going ahead and running comps,
and going ahead and submitting offers
and negotiating with sellers and then going out to find buyers and to market and promote the
properties to our buyers list.
So that's what I meant by, those were some of the more important parts of the business
that we're going to start to delegate.
And that was, yeah, that was about four months ago or so.
So I provided the, let's talk about that first, first step I took was getting somebody
to take my incoming calls.
So I found a really good virtual assistant.
I interviewed them, went through a few of them.
and I really like this person, and I provided him with the SOP,
and along with the scripts that informed him what to learn and what to say verbatim.
And we practiced a little bit for a week,
and then I set him up on a phone service that automatically records every call that he makes
and every call that he receives.
And what I've done since then, I've set aside a time each week to listen to his calls
and give him some feedback and give him some training and, you know, give him some encouragement
when he does it great.
And now we're building in a bonus structure so he knows what he has to do to make bonuses.
And it's working really, really well.
So what it is I thought I'd let you listen in on one of his recent phone calls and then
let you know the feedback that I gave to him.
And it's just so you can get an idea that if you want to start delegating and
And I really think you should because you can't do this business by yourself.
You can't do it all by yourself.
You're going to have to delegate.
And if you ever really want to be a true business owner, you're going to have to give it all up.
You're going to have to become redundant inside your company.
So that business is a business that runs with or without your presence.
So I'm going to go over that call and I'm going to go over his feedback and I'm going to do that right after this.
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Hello?
Hello.
Hi, this is Anthony.
How can I help you?
Yeah, excuse me.
We talked yesterday briefly.
My name is Paul.
Oh, hey, Paul.
How are you?
Pretty good.
What's the way?
Yesterday was a really busy day for me,
and I get a chance to figure out what was going on.
But you had called me and said that you're interested in buying that piece of property over there in the rain?
Uh-huh.
Yes, we are.
Well, what's the offer?
It's listed.
Okay, I haven't listed with Calwell right now.
Oh, it's currently listed.
Because right now, I don't want to give you an unfair offer right now because we haven't checked the property or we haven't seen the property yet.
So what I can do now for you is that I can gather the information first regarding the property,
let's say the bedrooms, the bathroom, and so on and so forth,
lots size, and so on and so forth.
And then we'll be the one to study it first.
Then we can give you an offer maybe after 24 to 48 hours.
How does that sound?
Okay.
Okay, pretty good.
If that's the case, I'll be getting more information about the property.
Did you provide me your address on the property as you're looking to sell?
Okay.
It's 4 West 34th Street in Lorraine, Ohio.
Okay.
And just in case we need to follow up with you, do you have an active email address?
No, my wife does, but I don't have time for that.
Okay, no problem.
And so, yeah, tell me about the situation.
Why do you want to sell the property?
Well, I was, it was left to me by my mother and father, okay?
And they died some time ago.
And I rented it out for a while.
And I just, I got tired of renters.
You know, I had good ones and I had a couple bad ones.
And the bad ones, I don't know.
I'm getting told for this stuff.
I'm going to be 68 here next month.
And I just don't need headaches.
I see.
I understand.
Yeah, you really need to sell this because it's going to be, you know,
you're going to be having a hard time manager.
this one. Okay and also just in case you know we
outgraded the price, how soon are you going to sell it?
Soon as I can. I've had a list for a year now. It ain't nothing happened.
So and yeah actually it's been over a year.
So until when is your lease up, the lease with the realtor?
Oh, actually he's on an extension right now.
I think in another month or so.
Another month, okay.
Let's see it here
But there's nothing written in paper on that
It was all verbal
So you can sell it at any time
Because it's just verbal
Is that what you're saying?
Yeah
Okay, not a problem then
Right now, I just want to know
Because you don't use email, right?
So if we're going to be sending you an offer
To what address should I mail you the offer?
6-5
Cooper
C-O-B-E-R-F-O-B-E-R-F-O-S-T-E-R-M-E-R-M-I-L-I-O-N-4-0-8-9.
Let me check this one real quick.
Okay, got the address here.
Okay, and you know what, in order for me to get the affair offer, as I mentioned earlier,
I just need to ask you some question regarding the property.
So these are the same question that I ask everybody every day.
I'm just simply going to read it after my paperwork.
So, you know, I don't make anything, particularly anything that may cost you money or an opportunity.
So this will just take 10 minutes of your time.
Are you not busy right now?
No, I'm okay.
Okay, that's perfect.
So from here, Anthony, he went through the seller information questionnaire.
And I'm going to spare you all of that because you don't want to go through the bedrooms,
bathroom, bathroom, square footage, all that stuff.
And, I mean, he literally read directly from the questionnaire, the same one that's inside the academy.
me and then he just filled in all of the information.
So we'll just kind of pick up from there.
We'll resume right here.
Okay.
Sounds like a nice property.
Do you know how much is the estimated value of this property?
Yeah, I had it.
I had an appraiser come out and, yeah, appraised it.
I don't have that paper work right in front of me right now.
Let me see if I can look it up real quick.
You have to bear with me here a minute.
Yeah, sure.
Take a time.
You know that I told you it was inspected?
Well, that's probably lapsed by now.
It might have to be reinspected, but that's not a problem.
Okay, here it is.
Excuse me.
Depreciation, what's...
I don't understand what that means.
It says $68,874.
And then it says,
indicated value by cost approach.
Is that what you want?
Actually, I'm just looking for what you call this,
estimated market value of the property itself.
Estimated market value.
I don't know.
It says indicated value by cost approach.
That's $60,958.
And then it says above that,
it says total estimate cost of new
$11,8,800,000, $1,33.
Yeah, how much do you want to get for this property or how much are you selling the property for?
Well, right now I'm supposed to that 52.
I started at like 58, I'm down to 52, 9 now.
52. Is this the best that you can do or this price is the negotiable?
I ain't taking no less than 50 for it.
Oh, 50,000. Okay, got it.
It's home. My dad had the house built.
built. It's all yellow pine. I mean, it is a well-built house.
Sounds like a good property, actually.
It's in Clearview School District, too, so that's a plus.
And basically there's no mortgage in this one, right?
Pardon?
There's no mortgage because this is owned by your dad, right?
Yeah.
What about the taxes? Are you able to pay your taxes on time?
Yeah, I've never been.
only one on my taxes ever.
Okay. And right now, is the property vacant or rented?
It's vacant right now.
It's vacant. But previously, how much is the amount of rent that you're getting from this property?
I forget. The last one was 600 and something.
Around 600. Okay.
Got a nice backyard, nice front yard.
I already got all the information that I need regarding the property itself.
Okay. Well, if you need any more,
give me a call.
Definitely.
So as I mentioned, now I can't make any promises, but I'm going to do the best that I can do to get what you want.
And ultimately, it's up to the market, though.
And you understand that I have to carve out little something for myself, too.
That's fair, isn't it?
Well, yeah, that's what you're in business for, right?
Yep.
So, yeah, right now, just give me about a couple of days, maybe about 24 to 48 hours.
We'll review the property itself.
I submit it to the board so that we can get it.
a fair offer and do some market evaluation and so forth.
And then either me, Anthony, or my partner, David, will be the one to give you a follow-up
regarding this property itself.
That would be okay?
That would be fine.
Thank you, Paul.
Okay, thank you.
Have a good day.
You do.
Bye-bye.
Bye-bye.
All righty, I cut out a bunch of that for you, by the way.
The seller really didn't have a clue, and it was a bit painful to listen to, so I spared
you a bunch of dead space, a bunch of ums, and.
and Oz and all that stuff.
But anyway, all right.
So, as you heard, Anthony, that's my virtual assistant.
He is calling from the Philippines.
And he did a decent job, right?
He did a decent job.
And let me preface my comments that I gave to him by telling you how my virtual investing
business is set up in case you're wondering like, why didn't he present the offer,
or why didn't he make a soft pass, or why didn't he try to get under contract, all that
kind of stuff.
So let me kind of tell you how I'm setting up my business.
I drive the leads via direct mail.
So I go ahead and I take care of that.
My job is to make sure that the phone rings for Anthony.
That's my sole purpose in this whole system as right now.
And then Anthony, who you heard, takes the calls and returns the missed calls.
And his job is threefold.
He has three responsibilities.
First, his biggest responsibility is to make sure that every person that calls us gets called back.
Every single one.
Every one.
And if we don't make contact on the,
that first attempt, Anthony is automatically reminded through our CRM, our database management
system, is automatically reminded eight consecutive days to call again until he does get in contact
eight times, eight consecutive days.
So he calls eight days in a row.
And if he still doesn't get in touch, then the reminder is just set for every 30 days
thereafter.
Okay?
And we'll probably hit him with another piece of mail as well.
And so that's how our.
reminder works. And after that eighth attempt has been made, then it's a, he follows up every 30
days. So that's his first role to make sure everybody gets contacted. His second role is to assess
the caller's motivation. And he classifies each caller at the end of the call as either a suspect
or a prospect. All right. So that's the two classifications we have here in the office. And then his
His third role is to collect as much information about the property as possible.
Information from the seller about the property specifically.
We want to know what's inside of the seller's head.
What are they thinking?
We want to know what their thoughts and opinions are about the property.
For example, what's the seller's estimate of repairs?
That gives us a good starting point.
If they say it's $5,000, well, right off the bat,
we know we don't have to negotiate that $5,000.
because the seller is already given us that amount.
Maybe it's more, maybe it's less, but at least that's our starting point.
Other things like, what's the seller's estimate of value?
Again, if they say it's properties worth $65,000, then we know that's our starting point.
But then we also want to know where, how did they determine that opinion of value?
Where did you come up with $65,000?
You just grab it out of the thin air.
Did your neighbor's house sell for that?
Or is that what the last comps said?
Or is that what your realtor said?
Or is that what your appraiser told you, whatever it may be?
We want to know what the source of that is.
And then we also want to know, okay, so that's what it's worth.
How much do you actually want for it?
Okay, so those are the questions that the types of questions that Anthony asks.
He wants to just know what's going on in the seller's head.
He just agrees with the seller and just goes along for the ride, ask the questions, and takes note of all the questions.
So those are his three responsibilities.
Make sure, one, everybody gets contacted.
Two, make sure, oh, to assess the caller's motivation.
And then three, to find out everything about the property that the seller knows.
All right.
So that's his role.
And he did pretty good.
He did really good.
And I'll let you know what my comments are or my coaching to him in just a minute.
But after Anthony has completed his role, the lead then goes to a different department, the
house analysis department where I have another virtual assistant.
Her name is charisma.
She does the market research on the property.
She collects as much data as she can from the internet.
And she may have, she may even call some of our people, our, our feet.
on the boots on the ground and get their opinions and get some information from them and then she
confirms the personal title she confirms the bed and bath and square footage um she pulls the comps
and she comes up with our estimate of value and she confirms the property address and then she
confirms the mailing address basically she just fills in the blanks of everything that anthony wasn't
unable to do all right so then after that after she's filled in all the blanks and all the data on the
property, charisma then calls the suspect sellers to let them know she's sending an offer to them.
All the suspects get called by charisma and she sends them an offer.
And she's going to send them a standard three option letter of intent to all of the suspects,
just like the one inside the academy.
All the defaults there, that's kind of our formula.
We've tweaked it just a little bit, but not much.
But that's basically the formula, what you see is the defaults up there.
And we just send it.
Okay?
Yep.
Each and every one of them will get a letter of intent.
from charisma.
All right?
And then as long as she's been able to confirm the seller's mailing address, that's what
we do.
Because sometimes, you know, you have the property address, but you don't have the mailing address
or vice versa, whatever may be.
But as long as we have the property address, and as long as we have the owner's mailing
address, sometimes they're one of the same.
Typically, they're different.
But as long as we have those two pieces of information, they are getting a letter
of intent, a three-optional letter of intent from charisma.
Now, for the leads that Anthony marked as prospects,
charisma gets all the suspects, but for those that Anthony marked as prospects, the one that had a higher level of motivation,
those leads are automatically forward to my in-house acquisition manager, David, who follows up with the lead, builds a little bit more rapport, and then he FedEx's an offer to that prospect.
So that's how we're set up.
And yes, we could do things differently, and we've done things differently.
We're doing a little bit of testing, and, you know, perhaps we'll be giving Anthony a little bit more responsibility to,
to secure the really hot leads if he has the opportunity.
I mean, and I'm looking in how to do that as efficiently as possible.
But here's why I'm chosen to do it this way that I just explained,
is that I've got my eye on the bigger picture of more of an assembly line type operation
to make sure that no lead slips through the cracks.
And also, it gives me the ability to scale big and run a lot of leads through my system.
You see, I mean, it's my opinion that although with what I have set up with different people handling each stage of the process, we may lose an opportunity here and there.
And I'm okay with that.
I'm okay with that because I believe we're going to gain even more deals by making sure every lead gets contacted and receives an offer from us.
And we'll see.
I mean, that's been my decision to go this route, but I'll remain flexible, always flexible, because I didn't do it this way always.
I decided to do it this way based off my experience of doing it the other way and the way before that and the way before that.
So at the end of the day, we're just going to look at the numbers and then we'll make adjustments if necessary.
And that's how you should run your business as well.
You know, choose a path, collect the data and make adjustments if necessary.
And I'll certainly be sharing those results with you.
But I got to let the numbers run their course.
Okay.
It takes a minute to get back that real data.
We can't just do this for a month and say, oops, this didn't work or oops, this is working perfectly.
No, we got to let it run.
That's just kind of the nature of this business.
If they call it a numbers game, you've got to let the numbers work for a little while
so you can get really accurate data.
So back to Anthony, back to Anthony in his call.
Here were the two pieces of coaching that I gave him.
First, when the lead had mentioned that the property had been listed for a year,
you remember that?
He said it had been listed for a year, over a year even.
That right there, that was an indicator that there might not be a whole lot of motivation.
he's at the property on the market for a whole year.
Why hasn't he sold it in a whole year?
So you're thinking like maybe he's not motivated to really sell it.
But then again, it also presented an opportunity very early in the call to probe and assess the motivation.
So I gave Anthony a little bit of coaching, gave him a written script for the next time he hears that with.
And he might not hear that exact same thing, but he'll hear variations of it for sure.
And so I gave him the script that if he gets told him.
that, you know, we had it listed for a year.
And he says, oh, you've had it listed for a year.
That's a long time in this market.
And why do you think it hasn't sold yet?
So that's the first part.
And then listens to the answer and then follows that up with,
how much longer are you going to continue doing what you're doing
before you try something else?
You see, when you ask a why question and a how much longer question,
those are great questions for assessing motivation.
You know, there's just stem right from the very, the three basic questions you ask right when you first start talking to the seller.
You know, tell me about your situation.
Why are you selling?
There's a why question.
And then we talk about what do you want to have happen.
But the next question is, if we were able to make that happen, how soon would you want to sell?
So that why and how soon those are the length of time, those are great questions to ask to assess motivation.
Now, later in the call, the seller said that,
the property was listed for 52,000.
Remember that?
Started at 58.
He's lowered it to 52,000.
And Anthony asked, just like I had trained him to do,
what's the lowest you would take?
And boom, the seller said,
nothing less than $50,000.
So that was good.
Instantly, we had a $2,000 price reduction
just by asking the question,
is that the best you can do?
Is that the best you can do?
Is that your bottom line?
or what is your bottom line?
You can ask it in a bunch of different ways.
But he did it.
And just with those words,
those words,
that one sentence was worth $2,000.
All righty?
So good job.
And the next piece that I coached Anthony on
when a seller states the price that they want,
like he said,
$50,000,
I coached Anthony to kind of change direction a bit,
especially like in this situation,
if you've been talking to him for a long time,
before the actual price comes out.
And he says $50,000.
And,
this is what I've sent over to Anthony to coach him on to what to say.
Hmm, really, $50,000.
That's a good chunk of money.
You know, every time I get a chunk like that, I put it into real estate.
But, you know, I'm always looking to diversify my investments.
May I ask, where are you going to invest your proceeds?
And then just listen.
And then once they say, they might say, I'm going to put it in the stock market.
I'm going to put it in the bank.
I'm going to buy a money market.
put in a money mark account, put in a CD, whatever they're going to do with it.
And then you just kind of go, hmm, really?
And what type of return would you expect from that investment?
And then now you've got a number, a foundation of what type of return that they expect.
And then the next question is, how long are you going to have to leave it there to get that return?
How long are you going to have to leave it there to qualify for that return?
And what that does is these questions, they do two things.
First, it aligns you and the seller as fellow investors.
it puts you two on the same side.
It creates rapport.
The second thing it does is it opens the opportunity to discuss seller financing.
For example, if the seller said he was going to put the money into a money market account,
you know, like I coached Anthony to ask what type of return are money market accounts paying these days.
And then how long would you have to leave it there to get that rate?
You see, I want Anthony to plant these seeds.
He makes note of them.
them and then he passes them along to David.
Or he passes them along to charisma, typically to David in this instance.
So he can, so David can then move in and kind of water those seeds a bit more.
As now we've got a number that we can work with around an interest rate for seller financing
because we know what he's going to get in the money market account.
We know we can beat that with seller financing, right?
We know we can beat that rate.
And we also have a time period for the duration of the seller financing.
Like how, like a lot of times you can't get a.
full 1% in a money market account unless you commit to leaving it in there five years or a 10 year
period. Well, boom, there's your, there's your balloon payment rate or there's your terms of financing.
Now, they're all kind of coming together. So we're just kind of planning seeds. That's what I was
coaching Anthony on. And there were some other things there that I mentioned to Anthony, but those two,
those were the biggies. And these things, they certainly don't come up on every call, but variations of
them do come up frequently. And when they do, there's something now to do there to move that call
forward and Anthony is better equipped to move that call forward and hopefully into a deal.
The point here is though, I mean, there are some tips and stuff in there.
I mean, take what you want from that and apply it in your own business.
But the point here is if you're going to hire some help or if you're going to start
delegating some of your real estate investing tasks, be sure to actually delegate rather
than abdicate.
If you know the difference, they're very distinct.
Don't just give the job to someone and surrender.
That's abdicating.
Don't just renounce all responsibility and let them go do it and walk away and hopefully
it gets done right.
That's abdicating.
No, you need to delegate.
Just don't give the job to someone regardless of their skill and experience even.
And don't have these expectations that everything is going to be perfect from that point
forward.
It doesn't work like that.
You have to delegate and you have to treat your VAs like really.
team members like real people they are real people you need to provide them with
the resources you need to provide them with training and you need to give them
their feedback to help them be better the same way that you would if you hired
someone to work right there beside you in your office help them be successful if
they're succeeding they're gonna stick around if they're succeeding you're
succeeding and what you should get from that is if you do it right if you
invest the time in your virtual assistant
you won't have to do this every month with someone new because that one didn't figure it out right
or that one didn't work out or they didn't do what they said they were going to do.
And if you go back and you kind of just trace that experience, if you've had that experience,
I've had many of those experiences, that's how I'm able to kind of speak on this right now
and I'm making it work because I had to look back to points where, okay, I'm going through VA after VA after VA.
where am I responsible in this?
Am I really communicating with them clearly?
Am I really giving them the support?
Am I really helping them be successful?
And I had to look back and said,
in some cases, yeah, I thought so,
but I know I could have done better.
Right?
So now I'm treating my virtual assistance like their family.
Like they are team members,
and we're in this together.
And I'm having such a different result.
The last six months have just been awesome
for the business. And each month we're doing more and more business. Things are really going well
for us right now. And I give a great amount of credit to it that I've set my support system up
correctly. I invested my time in my support system and now it's giving me a very nice return.
So just do it once right and your business will start to perform and you're going to start
noticing the differences and it's going to continue to perform with or without your presence.
That's where the real freedom comes. You know, you've got this, you've got the real estate.
that you're holding on to that's paying you a residual income.
And then now you can create a virtual wholesale business or a flip business in much the same
manner to where that business can pay you a residual income if you set it up correctly.
Okay.
And if you invest the time in your people, the people that work for you, the people that support
you, invest your time, give them the resources, give them the training, give them the
feedback that they need to be successful.
Because if they succeed, you succeed.
It's a lot of work in the beginning.
But it's well worth it on the back end once you've done it right.
I mean, I'm talking a six-month window, and my business is completely different.
Now, six months, it seemed like a long time.
It was a lot of hard work.
But in hindsight, that was a breeze because of what I'm experiencing right now.
It was well worth the investment.
All righty.
So that's it for today.
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