In theory, you need to spend more time on follow up than on leads. In reality, a lot of wholesalers have a one-and-done approach. They make that first initial contact with a lead, and then never circle around to build a relationship and stay on the radar of a seller. I want you to tap into that money by making following up a bigger part of your marketing.

In 2018, I did a study that examined how many of my sales came from follow ups. 54 out of 58 deals in that year were because I called a seller more than once. Who wants to walk away from 54 deals?! I’m going to teach you how to build rapport with your leads, and why you should offer to take other wholesalers’ “dead” leads off of them. Because there really is no such thing as a dead lead.

We recently closed a deal in Maui, and the seller took 4 months of contact and rapport-building before they were ready to sell to us. This kind of nurturing is necessary when a seller’s motivations are there, but aren’t urgent. Listen carefully to the kinds of questions you need to ask to figure out a seller’s motivation so that you can know what kind of creative financing to offer them.

I’ve got a case study coming up where I’m going to work on a CRM that I haven’t touched in two years. We’re going to document how many deals we lost and how many we can close on. If you want in, make sure you’re on my email list so that you can see how I revive this CRM, and make money off of incredibly old leads.

Watch the Episode:

What’s Inside:

  • Why you need to take good notes in your CRM.
  • How to dig down and get to the reason why sellers want to sell.
  • How to improve your KPI and make your marketing dollars go farther.

Hey, guys, how you doing? Gavin Timms here with REI Network. Superexcited about today’s show. It’s really, really important to be talking about the money is in your CRM. Okay, so the money’s in the CRM. We’ve already generated over a period of time. That’s what we’re going to be talking about today. Just before we get started, I’m still traveling in the RV and working from Starbucks right now in Arizona. And if you are less than or watch in on the YouTube may show you like and subscribe. And I want to give you a quick giveaway that comes in handy when you are traveling, which is my lead sheet. This is something that you can have in the car. You can print off to take notes and you can take a screenshot.

Okay. And send it to your team, your V.A. and have them update it in your CRM for you. This is really, really handy for when you’re traveling. Go to REINetwork.com/leadsheet. REINetwork.com/leadsheet, and check that out. So let’s get talking about what superimportant and one of what coming up here in the near future on a case study that we’re going to be doing as well. So I’m very big on that the money’s in the CRM.

I feel right now that I have, I have over a million dollars sitting in my CRM. Okay. That we just haven’t got to yet for the leads that are already in. And I do not think that’s an exaggeration at all. It’s probably more than that in the multiple markets that I work on a virtual level. I mean, I explain myself on kindof some numbers that I’ve seen in the past and again, a case study that we’re gonna be working here to try to prove this point to everyone.

Again, this is going to be recorded when I do this case study and I’m going to be putting it out. And you guys can then kind of follow along. So let’s talk about why do I made that statement that that the money’s in the CRM. So let’s think about it. We’ve talked in another episode that this is a process that we talk about. What are we actually doing. Whether it’s in your own market or whether it’s virtual. Okay. That the process is that we need leads a case. We identify a market. We do market research. We find out why we want to go to that market. Then we start doing lead generation. And this is a matter. Okay, if it’s cold calling, if it’s texting, if it’s in a PPC, Facebook, mail, it doesn’t matter. They come at different costs. They all have their individual ways of working.

And you need to have certain budgets dependent on what you’re doing. Well, the idea is, is that we get leads coming in. Now, as we know, most people in the industry will agree that 90 percent of your deals come from follow up. Which means for us in our business, we qualify a cold call lead comes into the CRM. Okay. And they’re not motivated. So they want too much money. Okay. Now, this is one of the main things that happen is that they want too much money. Do you blame them?

Just think about this for a second. I teach all of my clients to go in with the mentality that this is going to be a deal, regardless of what the notes of being said from the V.A., the V.A., whose job is to prescreen the lead. Are they interested in selling? Are they interested in an offer? Okay. And try and get some information on the four pillars. Okay. Which is that the situation, motivation, their price, if they can get it, a timeline in that condition. That’s what we’re trying to work towards for the V.A. to get some information if they can maybe. How old is the other beds and baths? When’s the last time they did the kitchen? When was the last time that you had a new roof.

Things like that that help us maybe knowing kind of the motivation. Okay, if they’ve just in a full rehab, then we know that. Okay, we kind of understand the situation a little more than when we go into it. All right. So that’s kind of how that’s going to going to play out. So when we get these leads come in. You cannot blame the seller for wanting too much money.

Why wouldn’t they? Why wouldn’t they ask full asking price? So you can’t just look at the NRC? Well, they’re not motivated. They want too much. Why wouldn’t they? You need to pick up the phone, build with rapport and get to the reason why they wanted to sell the property or they are interested in an offer or else they would just say no. They would just say no, I don’t want to sell last. What would happen. Okay, so the fact that they’re interested in an offer means that there’s something going on and you’ve got to get to it.

And that takes time. That takes building and rapport, positioning and follow up to do that. So once we have some leads come in. Right. I’m going to give you some examples back in when I start cold call and was really, really tracking this as an example. And let’s say I start with an 11 hundred records that went into the dialer. Okay, 1100 records. They are not qualified leads. They’re just a list of eleven hundred. We called them. We created about 100 leads over four, five, six weeks. Okay, so we had 100 people that were interested in offer or interested in selling.

Now, it took us five weeks to get the first contract. So five weeks to get the first contract. And we close that contract land in about week eight for seven and a half thousand dollars. So I’ve already made a profit on that deal. So every time I paid for my system and my marketing and my skip trace and my V.A. is I’m probably in let’s say for 12 hundred dollars. Okay, for. That six-week period for the list, for, you know, the system and the VA to prescreen them leads and bring them in. And we got one deal on week five that we contracted about. Week eight, it closed for seven a half thousand dollars.

Now, where people get it wrong. Is that okay, we did one deal, great from them100 leads. They continue to market like you should because you’re dripping leads in every day. Again, I’m not a guy that just wants to fill that hopper unless you have the system to build out to handle that volume. So what happens is most people will just continue to market like you should and like we did get out of that hundred. Right. This is this is the thing that I want you to kind of take on board here what I’m saying. So 100 leads that came in one deal, several thousand dollars closed on week eight. And we got it under contract in week five. Now, over five months, five months on them same 100 leaves from follow up okay. We made, I think a hundred and five, one hundred six thousand dollars on the same leads that came in.The same leads that were not motivated.

The same leads that we did not contract in the first eight weeks but over five months. So two months. We did one deal over the next three months. We then went through follow up, created one hundred and five thousand dollars from them, a hundred leads that closed. And that is the difference in follow ups. When you’re looking at KPI, I just got this question from a client. They said, well, how many how many leads does it take to close a deal? And I said, that’s a great question and actually can be some degree hard to answer because over a period of time, the KPI will get better. So unless you go a cutoff point and actually track it, that’s when you’re going to hit your true number. So, for instance, it might take 40, 50, 60, 100 leads to get your first contract. Okay.

Under contract and into closing from a phone call or two in the kind of in their media. Right. Mean that we’re gonna move forward in the first week or two. You’re going to get that contract, you’re going to get it to close in. And that might be again, one in 40, one in 50, one in 100 hundred leads that come in. And again, a one in 100. You’re saying, Gavin, that’s not great. And I agree it’s not great. But through follow up, you should be getting that ratio down to probably one in fifteen, one in 20, maybe one in 30 over a period of time. So once you close five more deals from that 100 over a period of time, then the KPI will look better because you’ve already spent the money. The money has already been spent. Okay. And so it’s already baked. So if your team works consistently or you do depend on how you say. Remember, I have multiple ways that I can run the business from partners 50/50 on the ground acquisition. Okay. All virtual.

But I have things and structure that we just will actually close in on a flip in Maui should close hopefully. Maybe tomorrow is on record in this or Monday. We’re going to be closing the flip in Maui. I’ve been to Maui once. Never seen this house contract in it virtually by pulling less. Going through the process, get a network in with a flipper on the ground that we make percentage on the back end. And now that I don’t do that in every market that just works with that market because I’m very big on creating opportunity. That makes sense for me and everyone that our work has to be a win to lend. And you can get creative as you do more deals. Right. But the system will never change. And it’s in Maui, for instance.

The deal that we did in Maui that’s closing was lead about number 40 that came in. So it was lead 40 that came in from cold calling. But it took us six months to get that contract on that lead. So it was number four. And so we just kept following. And now, in fairness, she was actually more motivated. But we had a situation where there was kids, her kids were living in Maui on the beach oceanfront property, and they didn’t want to move. Well, who would? who would want to move from that? So we had that. And she was flying out for one of the holidays and she said, when I get there, I want you to come over. Obviously not me but my flipper on the ground wanted to go over, meet them, and then we could talk about the finer details.

So we already had that. We had to wait four months for this to happen. So all we did was we just kept checking in with her just to stay in front of her and keep active whether until she came over and then we were able to get that deal done. All right. But again, the process happened. So my point is, is that when you’re looking at KPIs and marketing, you have to track it from the follow up, knowing that 90 percent of the deals come from follow up. Okay. Which means in theory, you should be spending more time in your follow up than on new leads.

Now, we always after dripping again, new leads every day, very, very important new stock market and what your focus needs to be tracking people on the follow up. So did anything change from the last time that we have spoken today? And that is so you’re taking good notes the first time. And let’s say Billy is, you know, nah, I just want to sell out. I’m not giving it away. I’m not doing this, this, this. And I think it’s going to sell. Okay, no problem. Barely 30 days we follow up. Hey, Billy, are you doing this? Is Gavin just checking back in. Did property sell it one to three Main Street? Oh, no, actually, it didn’t. It didn’t? Seemed like a great house. You’re pretty confident that this was going to sell. Why do you think it’s not sold yet?

Well, I thought it was going to sell and it hasn’t. And I’m so surprised. So here’s the thing. Right. What’s happening here is that it’s not a home run. I’m not going to contract it right now. We’re not there yet. But it’s changed, hasn’t it? It’s changed from Billy saying, no. This is going to sell. It’s a seller’s market, a hot market. This will be sold next week to 30 days on. He hasn’t sold. So now he’s softened up. Now, he might be open to my, you know, creative finance offer or my cash offer or whatever. To be able to lock this deal. Or you can have 100 different scenarios on this. Well, that’s why it’s in the follow. Constantly we get deals from year two ago when we follow up, and we’ll get them over a period of time.

So everything’s going to be different per market on your follow up. But ninety five percent of the deals we do come from follow up. Okay, so it’s no different for you guys. And I’m telling you now, and we tracked this in 2018. We did 58 deals last year. Okay. And 54 came from follow up. 54 deals came from follow up. So that’s the difference between me being competitive in the market and kind of, to some degree, being one of the top wholesalers in our market. Along with the team, not just me, but my team is okay to do it four deals like most of you don’t. So it is in the follow ups. That’s where we need to focus, which is why I’d label this podcast. The money is in the CRM because what is sitting there is your money, is your goal to get deals done.

That’s why working with the wholesalers, taking their old leads because they’re not following up. If you don’t have the money guys, network. The reason I wanted to call my business REI Network is because everything is networking. It’s who you know, not what you know, to get in with these people that are spending 30000 dollars on direct mail and have a conversation with them and say, hey, Brandon I know you’re spending all this money are marketing, how much follow up do you do? Well, we’re not very good on follow up. You know, we do about five or six months just from the direct mail that come in.

They’re spending 30 grand. So I look at that and say well you should be doing 20 deals a month over a period of time. What if Brandon, I do some of the follow up for you, then we’ll partner, 50/50. I’ll get it under contract. And once I’ve got it under contract, we’ll look and we’ll move it. And then I’ll make money. If you’re not utilizing it, Brandon, then you know, why don’t we work together on it?

Because I built that rapport with the wholesaler that he’s going to be want to do that. And I can say, hey, just give me 10 leads. Let’s see how this is going to work. I’m going to talk myself in the position and then I need to deliver on it. And that’s then without even creative finance lease options. Hey, Brandon, how many people do you get that are motivated that don’t have any equity? Oh, yeah, we get a lot of calls where we can’t, you know, make a cash offer. Oh, really? Well, what if I worked on deals and we could do some creative financing on it and then we could partner on or I’ll pay you per lead or whatever it is that you want to negotiate?

Because guess what, it’s free leads. If I was just folks and I was in the business like I’m back on the phones and doing it, okay. Without having systems sell the way that I do, I wouldn’t be spending probably any money on marketing. I just mean networking utilize and everyone else’s money. And I’d be just making profit, which is how I got started in the business, which is why I’m passionate when it comes to make sure you’re making money and stay profitable, because that is the key. I’ve got no interest in spending 10000 dollars on direct mail to make 10000. Okay. Because it doesn’t make sense financially.

It sounds great, but it has to make sense from a profit standpoint. And again, what are you trying to do? Guys are listening to this for me. I want to travel where I want with who I want. Okay. I’m in my RV in Arizona. I’m on a six-week trip. We’ve got four that’s going to close. And Avalon closing in Maui. Can we have another five, six contracts out? And things are happening because there’s systems that are built, but it takes time to get there. So, yes, you have to get in the trenches or maybe to start focusing on what makes money, folks. And I’ve been on the phone making offers and following OPCs. Again, it’s all in the CRM. If you have been locked in for a year now and you haven’t got a deal or six months, the deal or the fastest way to a deal is in the sea on him, I promise you. I’m telling you that is the way it is.

So which leads me on to what I’ve got coming out that we’re going to be doing with one of my clients, Gateway. I am going into an old market mine and I want to be documenting this. Improving the leads are there with the timestamps that are already on them leads. I am going to go into a market that’s got about a hundred and thirty-four leads that I have not touched for over two years. I have not. And I can prove from tracking of the history of the activity in the CRM to show we literally, no one has worked these leads. And this is we’re going to come up with a game plan. And Emily is one of my clients to do this. And we’re going to put a V.A. in there. They’re going to call and tax all a hundred and thirty-four people and we’re going to document how many deals we lost and already sold. So how many deals we could have done, how many deals are still on the table? And can we get a contract and close one? And that’s what I want to document on this case study that we’re going to be doing.

So stay tuned for it if you want. Okay. Make sure that you’re going to be on my email list. Go and download one of my contracts. Go to REINetwork.com/downloads or REINetowkr.com/leadsheetif you’ve got any anything that I offer, then you’ll be on that. I will email about this and I will do another podcast when we’re going to release it on this as well.  Make sure that you watch out for it. We’re going to be coming up with a game plan this week and we’re going to start working it. And right now, this is what I’m going to be thinking. I’m taking my old CRM. We’re going to be calling and texting each person. Anyone that we’re going to document again, what’s already sold. How many deals out of that hundred and thirty-four would have been my or my partner on the ground if we continued in that market. How many deals can we do from it or still active? Right.

Because this is going to be a great case study, let’s say. You know what? You’re right. Because we’ve lost, you know, these hundred thirty-seven, eight deals sold to investors. That should have been eight deals to us that probably would have made us 70, 80, over a hundred thousand plus dollars. And that’s then gonna be like, you know what? You’re right. And that’s what’s going to get your attention. Say, I need to make sure I’m in my CRM follower, not because everyone talks about it’s over 90 percent. A follow up. Everyone talks about that. Okay. But I don’t do it because they’re not motivate young. And they told me they want too much. The notes say they want too much.

No means not now. They’re not motivated right now. I don’t care what’s going on right now. Okay. I want to know what’s happening down the line. And we need to be in front of them. With automation through cold, through text messaging to cold leads, making sure warm and hot leads of tasks people call in them and takes in them and email in them. Okay. I know it’s overwhelming, but you will build the team as it comes. Everyone that I work with individually, everyone has a different journey and a different plan because some people have more money to invest than others. Some people want to be on the phone doing it virtually. Some people want to be go in and look in houses. That’s why we can tailor it to that. So don’t listen and go well yeah. It’s fine for you. You’ve got all these people to do it. I didn’t at the start. It was just me networking and work in old leads, dead leads is how I started these.

Hey, Gavin, here’s 60 dead leads and I called every single one. I spoke to like 40 people, locked two deals up. They were the first two deals I ever did from dead leads. I was looking at the notes, these are dead. They’re not dead. No means not now. There’s only ever a dead lead in your CRM is if they are aggressive, threatening to sue you or something like that. Okay. Or it just sold. If it sold it last few months, six months, then it’s a dead lead. Otherwise it’s not dead. No means not now. So remember, hopefully you’ve enjoyed this episode. Do me a favor. Like and subscribe. Okay.

Watch out for new content and if you want and watch out for this case study, because I feel and I have not done this, I have no idea. This might fall flat on its face again. I don’t know. But we’re going to do it. We’re going to track it. And then I’m going to bring in the resource to you. So stay tuned and I’m going to show you exactly each step of the way that we did. Probably going to put it into like a mini course for you guys to go through and you’ll be like, okay, that’s awesome. I get it. All right, guys. Have a great day. I’m gonna head back. We’re going to be going back to Phoenix and the RV off to Sedona, heading back through New Orleans and home. So stay tuned. And I appreciate you. I’ll talk to you soon. Bye bye.

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