Transcription
All right, let's talk about pillar number two. This is where most people kind of jump right into, or at least part of pillar number two. So, pillar number two is really all about understanding prospects to contracts. And this is where we get into the marketing. This is where, you know, we get to go through the lead intakes. There's six key elements to this, but it's about learning how to do the right type of marketing and find off-market deals, which is the key component to our success, plus how to run your numbers and to make sure that you have a profitable deal, and, and it's in the right area. And not just that, but it's the right strategy.
One of the big things that we lean in on is what's known as a pinwheel marketing approach. And so, before I jump into the six elements, I just want to talk a minute about prospect to contract. And so, what we have to get clear when we're wanting long-term success with real estate investing is we don't move to prospect to contracting until foundation is done. Because once foundation is done, what happens is we can move faster into prospect to contracting. Plus, we will already have momentum inside what is referred to as the lead network because of us establishing our foundation, building the connections and the contacts and the networks that we need in foundation. It pushes momentum for us into pillar number two, which is prospects and contracting. So let's talk about this and get you kind of real clear on this. Um, let's see here. Hold on a second.
All right, so when we talk about pillar number two, once again, I just want to kind of get you some clarity around the movement of prospect, uh, to contract. So there's six key elements inside this pillar alone. If you was to break this business up and say, "Hey, I'm just gonna go do some marketing," well, it doesn't really work like that, right? And so it is establishing your business for success on the front end. And that is identifying this pillar as a bloodline to the lead flow and to the execution of what we refer to as converting. And so how does that work?
Key element number one, the lead intake process. If you want to be successful in real estate, you have to have a systematic approach of, "I do this first, I do this second, I do this third." And that is where a lead intake process comes from. It really helps you as an investor identify what is the first step of a lead into my business, or what I need to be doing first before I bring leads into my business. And then what's step two, step three, step four, step five, so that I know exactly what needs to be done for a lead into my business based on lead flow. So it's not like, "Well, now I got a lead, what do I do?" or "Now I got a lead and I went and checked it out, but now what do I do?" That's not the case. When you understand the lead intake process, it is just what it says, it's the intake process of every lead that comes in.
Now, key element number two is marketing for deals. We refer to this as a pinwheel marketing approach because, you know, think of you as the middle, and the pinwheel is all the lead sources coming in. And the majority of them, as we refer to as the top of the pinwheel, are all free leads. And I can tell you this as a coach, I don't allow any of my coaching students to start off with paid marketing. I think it's actually a waste of money if you truly know how to build this business. And let's talk about that for a minute because there's two approaches to to what I'm referring to. There is the, the quick in and out and grab a quick dollar and, and you're done. And that is interruption style marketing. And that's what a lot of people teach out there. But the problem with that is it has no longevity. It will come to an end. It is, put a lot of money out on marketing, get a deal or two. Well, when you take in your time, your tools, your resources, your marketing dollars, you're actually making a very little bit of profit on that deal. And the downside to that is if you don't keep doing that, the leads don't keep coming in. So it is a, it's a push-pull type of marketing process. I'm not saying that marketing should not be part of the business as we move forward, but in the beginning, it really, that you don't need it to be. If, if, if you set your lead network up correctly, which starts in the foundation, moves into pillar number two with the lead intake process, you start with your pinwheel working the free leads first, building a lead network because here's why, when you build a lead network, there is no push-pull. It has longevity to it. The leads get more and more and more and more abundant the further and further and further you go, unlike paid marketing, all comes to an end date. So it's much different.
Then you have the communication stage. This is what all investors have to learn successfully. Remember, when you're in a communication stage, that's the very first contact. It's really only three main things. Number one, we're trying to figure out the problem to solve. Number two, we're trying to establish rapport. And number three, we're trying to set an appointment. Because once that has been done successfully, we know what we need to know to be able to be better at moving a prospect into bracketing at the appointment, whether the appointment's on the phone or at a live meeting at a house. But then that gives us time in between to do the research. A lot of investors do this opposite. They go out and do all this research and then call the prospect. The problem with that is you don't even know if the prospect has a problem that you can actually solve. So you've wasted all this time versus just getting on the first call, build rapport, establish there's a problem to be solved, and then set the appointment. Then you can move into research and analyze, which is the researching stage. This allows us to use our tools, use our systems, use our platforms to figure out what we can do with the property. Does it make more sense for a rental or wholesale or a rehab or create a finance deal? What's the best approach for this? Not just, "I'm only going to do this type of investing," but what's the best overall approach for that seller, that property, and where that property is at inside the market or that zip code or that clustering?
Then it allows us to come prepared for the negotiation stage because the person that has the most facts will always win in the negotiations. And at the negotiations, where they're again establishing that rapport again, letting them know that we can help them, moving them into what's known as the net equity worksheet, which then allows us to move them into what's known as bracketing. So that the seller can actually say to us, "Yes, I would like an offer." We, most investors have a low conversion rate on offers because they never take a seller into bracketing, which means the seller has no clue. And then you present an offer, and you've never even justified the offer. So obviously they're going to say no. But if you follow a process and you follow a process of order, you'll be surprised at how many times you're going to end up at the end and the seller's going to say, "Yes, send me that offer." And so now we can move them into converting, which is whether that converting is setting up our closing, setting up escrow, moving to a buyer, or maybe they've said no, and we convert them by moving them into an automated process of follow-up and systems to get to see if they're more motivated over time. That is pillar number two. That's the surface of pillar number two. Hey, I'll see on pillar number three. Okay.