Market Update and How to Create Consistent Quality Leads | 514

Market Update and How to Create Consistent Quality Leads | 514

Consistent Quality Leads

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.

Consistent Quality Leads

What You Will Learn About Market Update and How to Create Consistent Quality Leads:

  • The new Epic’s program that will take you through the process of setting up your new year
  • The market update and how you can use it to enhance your business relationship with a seller
  • What kind of sellers you should look for
  • What consistent quality leads are and where to find them
  • The significance of people skill and how to practice it
  • How to create consistency
  • The 2 ways to develop a consistent activity that generates leads
  • How to create consistency all the time inside yourself
  • The definitions of success and no-success cycles
  • How to stay on the success cycle all the time
  • Why you should set your expectations appropriately
  • Matt’s 2 clients that are superbly successful in keeping the success cycle
  • The confidence level, the first step to the success cycle
  • The focus on money-making activities

Whenever you’re ready, here are a few ways we can help:

Work with me One-on-One

If you’d like to work directly with me on your business… go to REIAce.com, share a little about your business and what you’d like to work on, and I’ll get you all the details!

  • Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Become an Epic community member at The Epic Real Estate Investing Show 
    One of my favorite things to do is share with investors the latest and greatest tactics and strategic friends I make. I do it every week and you can listen in by subscribing to The Epic Real Estate Investing Show podcast on iTunes – Click Here.
  • Grab my book, Epic Freedom ($1) 
    I frequently hear from people looking into investing in real estate for the first time, “How long is it going to take?” So much so, I wrote a short book about the 2 easiest and fastest strategies to a paycheck in real estate. You can grab a copy for $1 and I’ll pay the shipping – Click Here.
  • Join our Badass Investor Program and be a Case Study 
    I’m putting together a new Badass Investor case study group at Epic Real Estate this month… stay tuned for details. If you’d like to work with me on your real estate investing, go to FreeRealEstateInvestingCourse.com to get started.
  • Also, check these out:

Thanks!

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Transcript:

Speaker 1: This is The Epic Field Report.

Matt Theriault: Hey Steve I noticed your big win on Follow Through Friday on the site of [inaudible 00:00:07] private Facebook group, congratulations.

Steve Bollinger: Thank you.

Matt: 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 was reading it here first so I’m looking here … Lot’s of wins, let’s see da, da, da, da. Closed on my first wholesale deal, 20,000 wired into the account, feels really good, time to turn on the gas. That’s awesome.

Steve: Yeah.

Matt: Define this deal, Steve.

Steve: Through direct mail from a lady who … You want me to go into it and tell you what happened to it or …

Matt: Sure, yeah tell me how it went down.

Steve: I sent her a postcard that she had inherited the house a couple years earlier, her parents were hoarders and she had a house full of stuff and she spent two years trying to clean it out and at the end of two years she finally decided that she’d had 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.

Matt: Fantastic, so seeing that you put $20,000 into your bank account I imagined that you flipped the property, is that right?

Steve: I did, I just assigned the contract, yeah.

Matt: Perfect and so what would you say is the … 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 for you, frustrating. I commend you for sticking to it. It paid off, what is the lesson that you learned from this deal?

Steve: Persistence more than anything, just keep at it 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, making offers but nothing that they were really … Would accept. Which means that they weren’t motivated.

When you find somebody that is and you give them a fair offer and you’ve explained to them why you’re offering this, that it can happen, it definitely can happen. Not as much as I would like but I think the more experience that I get in talking with people and negotiating and understanding how to do it, goes a long way I think.

It’s getting easier and easier but yeah it’s a pretty saturated market where I am, there’s a lot of other competition and I’m still looking for that niche mailing list, I guess, to be able to find some people who aren’t already saturated with people but [inaudible 00:02:48].

Matt: Absolutely and everyone comes from a different background, they have different resources, they have different just variables in their world whether it’s professionally or personally and everyone grows at different speeds, everyone gets their results at different speeds.

The key to it is if being consistent and persistent and as you mentioned like any skill that you develop, the more repetition that you get in, the easier it does get. That is a perfect example of it so thank you so much for sharing, how are you going to celebrate?

Steve: Got a bottle of champagne and I’m going to take the majority of this money and put it back into the business.

Matt: Sure.

Steve: We’re going to take a little time with the family or something.

Matt: Awesome, awesome.

Steve: The idea is to dump it back in and make it happen again, and again and again. Leave my job, so that’s the goal.

Matt: Perfect, well, Steve keep doing what you’re doing, 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 there for you.

Steve: Absolutely, you’ve been very helpful, thanks.

Matt: You bet Steve, take care.

Steve: All right, bye.

Speaker 1: This is Theriault Media.

Matt: Yeah, what’s up, 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 @EpicRealEstate and you can stay connected with us on YouTube by going to epicrei.tv, where the video versions of the podcasts are uploaded every week.

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. Around here we start our year early, we don’t wait till 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 definitely for some reason it’s always our biggest profitable month.

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. You don’t want to be revving up after the holidays like everyone else and kind of ramping up through January.

You want to be able to take advantage of those opportunities that are in January while everyone else is trying to wiping the gunk out of their eyes and getting rid of their holiday hangovers, right. 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 deal or two before Christmas, alrighty, 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. He was sharing his insights on the market and I just want 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. Alrighty, so why is that important to you, well, what it does is it impacts the affordability index. 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 really has to do with the lending guidelines so when the interest rates go up your payments go up.

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 banks’ qualifications are going to be a little bit more strengthened on you and kind of push down your purchase price. Which means that it decreases the buying pool for people that have their houses for sale.

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. He continues to write, for a while this 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.

This is true, okay, 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 because there’s going to be fewer people that can afford it, alrighty. Number three, home sellers are reducing prices, not surprisingly the combination of sustained high prices and increasing mortgage rates and the 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 of September 16th had a price drop, alrighty. 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, the first people that really recognize it and notice it are those that are in the real estate industry. Whether those are real estate agents or real estate investors like you and I.

It’s because we study it every single day, we are 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 then it is and they’ve been 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 rise and appreciation is pulling them out of the hole. They’ve been hearing that for a really long time but they don’t look at it every day like you and I do.

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 the property low so we can sell it really quickly, right. 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.

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 the 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.

Alrighty, so be armed with this information, be on the lookout for this information. The other thing though when you find this information it’s 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 who want to sell.

That’s not who we’re looking for, 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. It’s always there because distress is always there in life, unfortunately.

It attacks people on a daily basis and surprises happen 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 top dollar has to do 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 can 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, just all kind of depends on how you focus on it, all right, you get what you focus on.

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, I recorded a video for this and if you feel the need you can go to epicrei.tv, that’s our YouTube channel, that domain and it will forward right to our channel.

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 epicrei.tv, alrighty, enjoy.

(Video audio) 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?”

There was 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? 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. That’s a lead and we can find those anywhere, we can just pick up the phone book and start dialing, right?

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. Quality lead, what’s a quality lead? A quality lead is a lead that, emphasize that, that needs to sell. That’s a quality lead.

First, why would they need to sell? 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.

They’d be willing to sell that property even if it’s at a discount, even if it’s at a deep discount 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. Types of problems, I don’t know that what would that be?

Death, divorce, disease, bankruptcy, it could be they have problem tenants, have job relocation, job loss, it could be all kinds of things. It could be just 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 of a number of those things. That’s who we’re looking for, leads that need to sell, or a need that needs to sell is a quality lead. How do we find those? We can certainly, it’s no mystery you can go type into Google, marketing lists.

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.

Those are easy to find but when it comes to really generating and finding the quality, there are 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.

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. This is really what we call our quality leads, these are the ones that need to sell, it’s a very small portion of most of the property that is out there for sale.

This is what we call the low hanging fruit, this is the quality, this is where it’s easy, right. Unfortunately, we just have to go through a bunch of these to go ahead and 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 get a good deal for ourselves and help them out of their problem.

That’s one, understand 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 is up, market is down, it’s always there. All 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 a quality, “quality” as these but then might not be as bad of quality as the ones up here, right. How do we get those? 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 and terms, it’s how you convey your competence and your trustworthiness. 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 were 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. The better that you get at these skills, inside of your real estate investing business, the more you get to play over here.

You can start taking some of these lower quality leads and turning them into quality just because you have the skill to do so. Then you can start broadening this circle here. Just kind of look at that, without generating anymore leads, by just improving your skill, say you were closing one out of a hundred phone calls, one out of a hundred incoming phone calls was turning into a deal for yourself.

Just say, and you’re getting these down here where it’s nice and easy, just by improving your skill a little bit what if you just closed 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 bottom line?

It would double it, wouldn’t it, essentially, I mean it’s two deals instead of one with the same number of leads just by focusing on your skill, all right. Have your expectations 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. Then start really focusing on your skill, you see most people they will go out and they’ll practice their skill and they’ll go through their major repetitions on live leads. Leads that they’ve paid for, right, leads that they’ve put a bunch of effort and work into generating.

They go out there and that’s where they do their practicing. It’s a very expensive way to learn this business. Consider practicing just like you would at the driving range. Find a friend of a family member or your neighbor, somebody at work in your day job and just 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 budget. Then when the skill gets really good, also, there’s low hanging fruit that you’re 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. By increasing your skill, you can do more deals with the lead that you already had and you can do better deals with the lead 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 owners, you’re going to look for distressed owners.

You’re going to set expectations appropriately, understand probably only expectations, understand that probably only 5% of the leads that you’re generating, you have even a shot at, okay. Then three, to increase your opportunity, what you’re going to do is you’re going to practice and improve your skill.

All right, so there we got the leads, now we got the quality leads, now how do we find them consistently? 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. All we need to do is focus on creating a consistent cause or consistent action or consistent activity.

There are two ways we can go around creating consistent activity that’s going to generate the leads. 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 or even on 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. That looks like direct mail, do PPC, do Facebook ads, we could do TV, we could do radio, you could do billboards, okay.

These are all the ways that you can systemize and automate your lead generation to create the consistency. It’s kind of what a system is, it creates consistency, right. You have this cause in and you have the effect comes out on the other side, that’s the system.

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 lead machine like this. The other alternative would be, you have to be consistent, right. You have to be consistent with the activities and that looks like we got dialing, right, you got door knocks.

You got to put up banner signs, you got to network, you got to put up flyers, you got to put up door hangers, right. All equally effective forms of generating leads. 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. How do we do that, well let’s look at this because what I found is if you enjoy doing something you typically have no problem being 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 is the pathway to the freedom that each and every one of you is 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.

Let me show you something of how you can create consistency all the time inside yourself. We call this the success cycle, okay the success cycle. That looks like this, when you are successful what that does is it generates confidence. When you have the confidence what that generates is your activity.

The activity produces the results. The success produces the confidence, the confidence produces the activity, activity produces the results and results produces success. It goes like this, this is the success cycle, so there’s another cycle here too, it’s called the no success cycle.

What that means if you’re not having success what it means is, you’re not having confidence, right the lack of success is eating into your confidence and when you don’t have the confidence it eats into your activity. When your activity suffers, boy the results really suffer as well.

I mean here’s our cause and here’s our effect that we were just talking about, right. 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 have less success and we spiral out of control into this little world of disappointment and regret, frustration and we quit and we go out and try to find something else.

With the success cycle, either you’re on it or you’re off it. Ask yourself right now, are you on the success cycle, are you on it right now or are you off it? There’s no between, you’re on the success cycle or you’re on the no success cycle. Let me show you how to stay on the success cycle all the time.

Because this is what happens is most people, they focus on the 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 and terms and they said, “Mr. Seller, Mrs. Seller, here’s my offer.”

The seller said, “No, thank you.” 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 determine that as no success. It’s no success so it’s put you on the no success cycle.

It killed your confidence, it’s killed your activity, killing your activity it’s killing your results. They go out and they try and conjure up the confidence to go out and do it again tomorrow and they go out tomorrow and no success. It kills their confidence, no activity, no results and it just spirals like this.

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. If they don’t get the results that means no success, okay, that puts you on the no success cycle and this thing just goes around and around and around till you can get back off it and start getting on the success cycle.

What top performers, what 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.

That’s why they stay on the success cycle because this is much easier to do, much easier to 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.

I have two specific clients that I think of that are really, really good at this. Brad Donnelly who was one of my very first clients several years ago and all he did was just focus on the activities on a daily basis. Let me just get my activities done and then, whatever happens, happens.

That was his mindset and it’s not 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 I know he did it this year as well. He’s had two seven year figures in a row and then some more current clients who just recently only been working on for less than a year is Jack and Josh.

Josh and Jack, 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 the 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. It’s no wonder inside of our Facebook group we’ve got something called Follow Through Friday.

It’s where every Friday the whole community posts their wins. 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.

It’s because they get that consistent check is because they are focused on consistent activity, all right. Let me help you get on the success cycle, what are we going to do next from here right. Hop in here where you 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.

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. 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 is 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 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.

They don’t go home until they get their points. That’s consistency, that’s what produces the consistent results. Alrighty, so if you would like a copy of this, you’re more than welcome to it, you can go to dailysuccessreport.com, dailysuccessreport.com.

You’ll have the activities that you need to perform, focus on 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. Alrighty, so that’s it for today, God bless to your success. I’m Matt Theriault. Living the dream.