Hey, it’s Joe Crump. Another video on outsourcing an automating your business, your real estate
investing business. This question is about outsourcing. “Dear Joe, I’m working all
the time. I love what I’m doing so I don’t mean to complain and I’m making three times
as much every month as I used to make in my job – just over broke – job, but I got
into this business so I would have more time with my family and to do the things I wanted
to in my life. I think the key is to hire some help. What jobs should I outsource first
and why?” Now, we’ve talked about this a little bit
in some of the other videos, but let me walk through it with you again. The first job that
you want to outsource is an admin person. Just get somebody who charges you eight bucks
an hour, ten bucks an hour, maybe, that will do your, that’ll run your Automarketer for
them, for you, to make sure that leads are coming in. And whenever you call somebody,
you know, if you do it inside the Automarketer, you’ve got a CRM there so you can keep track
of them, but if not, you can at least you know, if you, or let’s say you’re doing
this remotely and you get an email with your leads, because every time you get a lead it
emails you with it. It emails you a voice message or emails you the text message or
it emails you the email message and you can contact those people.
And once you contact them you can send that email to your admin person and they can log
it into the CRM if necessary, or they can put the deal together and make sure you know,
it goes to the next step you know, and do all the paperwork and file all the stuff for
you. So the admin person’s the first person you need. Typically it’s going to cost you,
you know, per deal that you do, probably five hours of admin work. So, I’m going to say
$50 for that. You’re going to pay another $50 for your boots on the ground, you’re
going to pay another, you know, $200 or $300 for your seller finder and maybe $100, $200
for your buyer finder, so you’ve got, you know, $400 or $500, $600 out of every deal
that’ll go to pay all these outsourced people. Plus you’ve got your infrastructure costs,
which may average you, if you’re doing one deal a month, it’ll average your $200, $300
a month. So if you’re making $5,000 per deal, that’s a pretty good return on that
investment. If you’re not putting deals together, if you don’t know how to talk
to sellers and put deal together, then outsourcing this stuff at the beginning doesn’t necessarily
make much sense because you’re going to spend a lot of money outsourcing and it’s
going to feel like you’re just being drained and nothing is coming in. This is a bootstrap
business where you can make money and then you can add another piece of the business
and you can add another piece of the business using the money that you make as profits.
So that’s how I’ve built all my businesses. I’ve always built my businesses from profits.
And then when I have enough profit then I can go out and I can try something else, or
I can add another type of business or another type of business and I can test different
things with the profits that I made from the previous business.
Everything that I do right now is based, is financed by profits, not by going out and
getting a loan to build a business. I don’t do loans. Even though I have good credit now,
and you know, I went through you know, the bankruptcy just like every other entrepreneur
I know back in 1991 when I had a crash. I went through that, because I was so leveraged,
I was so over financed that when the market dropped back in ’91, it dropped about 30%.
Not as bad as this last crash, but it dropped enough to take me under. And when this last
crash happened, I saw it coming. It happened to me once before and I didn’t have any
money in loans and I had income coming in, so I didn’t go down that time.
It did hurt, like it hurt everybody else, but it didn’t bring me down and I was able
to stay afloat and everything is pretty hunky dory now again. So, if you build your business
properly, if you don’t over leverage it’ll make it easier for you to do that.
So the first person you’re outsourcing to is to the admin person. The next person is
going to be working with your buyers, someone who talks to your buyers, and you’re going
to have them call all the buyers that come in, make sure they get into the properties.
You might be the one at that point to call them back and find out how much they’ve
got for a down payment and try to negotiate for a larger down payment or a higher lease
option fee. So you might want to still split that job up at the beginning until that person
knows how to negotiate and what you want in the deal.
And then after that, you’re going to outsource the sellers. And once you learn how to outsource
the sellers, you’re going to do that in a two-step process, too. At the beginning
all they’re going to do is ask questions and then you’re going to do the closing.
But later on, you’re going to teach those people to actually close and you’re going
to give them a bonus when they close a deal and they’re going to get better at it. It’s
going to take them weeks or months and you may have to go through three, four, five,
six, seven people before you find one that can do the job and will do it consistently.
But you can learn how to fire people quickly, as quickly as you hire them. So you hire them,
you talk to them, you walk through the process, you have them listen to the audio, you get
them working. If, on the second day, they’re not making the calls they’re supposed to
be making, then you need to get rid of them immediately. Don’t wait around for them
to get better, don’t take their excuses, none of that stuff. Because what they’re
showing you up front is that they’re not going to be reliable. And then bring somebody
else in. So, maybe when you’re hiring people, maybe
have two or three people in mind and then say, okay, I’m not going to be able to tell
you for another couple of days and then you try the first person, if he works out, great,
you know, then you tell the people I’m not going to hire anybody else for now, but if
you’re interested I can hire you maybe in the future. Because eventually your phone
people will quit. At least until you find somebody that is getting good compensation,
that’s making good money, is happy at what they’re doing and actually enjoys the work.
There are people that enjoy this kind of work and it’s not difficult work. And they can
do it at home and they can do it at any time they want to. Don’t put too many pressures
on them about oh, you’ve got to call from ten to eleven. It doesn’t matter when they
call. As long as they call that lead back as soon as they can, on that day, sometime
between nine in the morning and eight at night, that’s really all I care about.
And that they get called back every day and you know, hopefully, they don’t wait six
hours or eight hours to get them back, get back with them, but if they have to, okay,
I understand. As long as they’re closing deals, as long as they’re getting me leads
to call the next day, I’m happy. And then I call the leads the next day and I close
the deal. So, that’s going to be the best way to get
that business outsources and once you do that then you can expand into a different area,
or maybe another business, you know, and do something different.
All right – hope that helps.