Transcription
All right, welcome to my channel. I'm going to show you exactly what a beginner versus a pro looks like in wholesaling real estate. And a lot of you might be wondering, what does a beginner do and what does a pro does? Beginner might be doing less than $10,000 a month and a pro is doing $100,000 a month plus. And I know a lot of these people in the space cuz I've actually been interviewing and working consulting with a lot of different companies that are doing over $2 million, $5 million a year and bigger companies that used to make over $3.5 million a month like companies like Meridian Trust that used to be a company that existed back here in Florida when they actually had an operations going. And I learned a lot. And over the last five, six years, I have I have applied all of these things with our clients that have been making a lot of money because we we run the best lead generation that exists out there from different marketing channels like Google and so on. So, our clients have made over $50 million in the last 5 years. And I'm going to teach you right now what does a beginner do versus what does a pro do.
So, what's the biggest thing about a beginner versus a pro? A beginner will get 100 leads and will have about three to five% conversion of every lead or even less. So that means that for 100 leads you would only convert three to five. Okay? And that's kind of like a beginner thing. Some people that don't know anything about sales and they they shock they do 1% conversion depending on the marketing channel. And a pro has 100 leads, the same amount of leads, but they will convert 10%. Which means that out of 100, they'll convert 10. And that is a huge difference, guys. Whenever you're scaling a company, that is huge, huge difference, right? Look, I'm dressed up all nice here for you guys. So, you better pay attention to this. And if you actually like this YouTube channel and you're learning something with this YouTube channel, you better subscribe right now. Hit the thumbs up button and share this with someone that actually will get some value out of this.
Okay, so the first thing is let's look at it in a funnel. Okay, from top to bottom in a funnel, what's the first thing that a wholesaling real estate business actually needs? Well, you need leads. Cuz without leads, you can't survive. It's just the fuel of the business, which is marketing. Without marketing, you can't have sales. Without sales, you can't invest into your business. You can't grow. It's plain and simple. That is literally the biggest bottlenecks of whenever you're starting out and one of the biggest things that you got to solve, which is acquisitions.
Okay. So the first thing is whenever people are generating leads, uh beginners focus on the cheapest and the most free marketing channels, which is not necessarily wrong. I'm just saying that they will focus on generic pay-per-lead old and shared lists. They'll call call these lists or they'll do Facebook groups. They'll start, you know, asking other people to share some of the lists that are dead, which is not necessarily wrong. I'm I'm not saying that's that. But there is absolutely no intent on those leads because a beginner most of the time has a lot more time than money. Now, if you do have money and you're starting wholesale real estate, you should consider what pros actually do, which is actually leveraging more money in order to get more out of it. And we're going to get to the point where you're leveraging capital to multiply it and make more money. Right?
So the first thing is that professionals, okay, the ones that have 10% conversion ratio, they focus on high intent. Okay, so beginners have generic pay-per-lead and professionals will create campaigns that are high intent for searching motivated sellers online or just searching motivated sellers, attracting motivated sellers. These people are chasing, these people are attracting. Okay, so professionals, they have created a funnel that attracts people and just like anything dating, right? Whenever you don't know how to handle women, you chase women and you're like you're like a little dog, but that's what beginners do. That's what newbies do. Professionals, they don't chase. They're not dogs. Well, they might be wolves, but they're not dogs chasing one, right? So, that's the first thing.
Okay. So, whenever a beginner starts generating leads, there's no pre-qualification. Leads will come in raw. They literally have not been pre-qualified. And they'll any anyone that is raising their hand or saying, "Yeah, give me an offer for your house." Will come to your funnel. And that's not necessarily the highest quality. But now a beginner needs to get some reps going, needs to practice and make sure that they start talking to sellers, which is totally okay. And if you feel like you're not a beginner and you're still doing this, you got to change this, my man.
Okay. So, and a professional has a way to score every single lead and pre-qualify leads before they even hit your CRM cuz you want to sort which ones are the non-quality leads versus what are the quality leads. In reality, whenever you have a marketing campaign like Google or Facebook, about 70% of these leads will be good leads, right? If you're hitting 60% and they're good, that's okay. But you're going to the bottom. If you're if you're hitting about 50%, that's kind of like the lowest. Try to hit 70% of the leads that you're generating from any marketing campaign, whether that's Google, as Facebook, YouTube, direct mail. 70% need to be quality leads. And you're going to score them. Okay? And scoring is important. Professionals will score based on one to 100, but us for example, what we do is we score one to four. One is someone that we would cancel any appointment based on the marketing questions that we ask in the front end. We're not going to accept this type of lead. This lead doesn't have an urgency, doesn't have a motivation. This lead is not even the owner of the house. This lead is not even giving you the right address. Like just cancel that. But two, three, and four, it starts for for us to start qualifying them even further. Two is kind of questionable and you want to figure out whether this person is, you know, how deep the motivation is. You want to figure out whether this person actually has an urgency and a score of three and four, these are the ones that you do want to take and any acquisition manager wants to do it. If you want the free sheet where we actually show how uh we're scoring our leads, I'll make a video. I'm making a video about this, but just hit me in the comments and I'll send you the sheet for you to actually know how to score your leads from one to four.
Okay. Now, the next thing is that beginners, newbies will focus on quantity over quality. They'll be like, I want to generate more leads. Hey, I I just I just want more leads. I just need more leads. But the truth is leads don't equal sales. That's the truth. Like there's a huge gap between leads and sales. Let me tell you this funnel and and one of my videos, this video right here actually talks about this. You generate attention to generate leads. Then you got to follow up and nurture these leads. Then you got to get them on an appointment. Then you got to convert them on a sales process. So get them on a sales call. And then after that you got to close. Like that's you got to close and then you onboard this client into your system, into your fulfillment, and then you just repeat the cycle and you get more clients, frequent buyers, and so on. Okay, but they don't they don't have any of that. Beginners don't have any, they don't understand the funnel at all. But if you feel like you're ready to go from beginner to pro, this channel is for you. There's quantity over quality and while professionals, they'll segment. Okay, there has to do with the scoring, right? It has to do about protecting their time. It has to do about maximizing the the outputs, the maximizing the inputs to get higher outputs. So that means that professionals, it's not like they don't care about the cost per lead, but they cost, they care more about the cost per acquisition. This is one of the biggest numbers that you should, you know, you should be worried about. Cost per deal, which is cost per acquisition. Any business needs to understand CAC, cost per acquisition, cost per acquired client and or cost per deal in real estate. And as long as there is a huge profit or as long as there is a good profit based on the revenue that you generate per deal, which is your deal size, you should be able to spend whatever amount because let's say your your cost per acquisition is $3,000, right? It it cost you to acquire a client $3,000. Your profit or your your deal size is $25,000. How many times would you pay $4,000 if you get deals at $25,000? Many times, right? But newbies and beginners don't think this way. They just can't think this way. They don't think results-based. They think about money. And it's a limiting belief. Okay, that this is another topic.
Now, the next one is that beginners are not going to go do something because there is competition. They're afraid of competition and the thing is that yes, this is a very high competitive industry and every business, every business is going to be competitive, every industry. There's some blue ocean strategies in blue blue ocean verticals and niches in in, you know, business, but the the truth is that Alex Hormozi says it's just going to suck. This is going to be hard, okay? They're scared of competition. But professionals, you're not scared of competition because there's competition there. It means that you can make a lot of more money. And because you know the market so well, you're not going to go just do virtual wholesaling just because there's there's not much competition. You're going to go into your market. You're going to dominate that market.
Okay? The professionals will actually create advertising ads and messaging that focus on pain. Okay? So they'll focus on pain and they know exactly their ideal client avatar's biggest pain points and biggest obstacles. They know exactly, they know for a fact what is each one of their homeowners' biggest pains and they'll create copy out of that. They'll also have video sales letters or videos that essentially pre-sell the um homeowner, the person, the lead that comes into their funnel. They'll pre-sell it on their business. So, if they go to the website, you're going to see that they're going to have a video that explains their offer, explains their social proof, their credibility, ultimately explains why are they so different versus everyone else. They have a unique mechanism. They'll be able to handle any pre-handle any objection whatsoever in this video. There's a credibility package and the sellers will go to the call pre-sold. So they'll go to the call where it's they're going to feel like they know this company already. Okay? So they have video sales letters.
Here's another thing. Whenever the lead comes in, professionals will actually follow up within less than 2 minutes. So studies say that whenever you follow up with the lead within 2 minutes or five, your chances of converting increase by 60 to 391%. So I know if of you know many different companies that they hire only people that their whole job is to drop everything that they have to do right now just to call call the lead real fast within 60 seconds. If they're not calling the lead within 60 seconds, it's like their job is not done. And that's because it increases the pickup rate of the person that you're talking to. Imagine these leads are coming from Facebook, Google, YouTube, whatever, right? They're coming from on a paid ad channel. You paid a lot of money, let's say $100, $200, $300. You're not getting a hold of that lead. Come on, man. You got to make the most out of that money. So, that means that if you pay someone just to get a hold of that person fast.
Now, here's the thing. They have an advantage, right? They, the beginners, they'll spend hours doing manual calling and inconsistent calling. Okay, there is no nurture. There is no systems whatsoever. They're unaware that this has to be done because they don't understand the funnel, right? Leads, appointments, nurture, sales. They don't understand a funnel. There's an entire video that I did about this. While professionals, they don't the leverage of labor and technology. So what do they do? Professionals here, look at this. It's right there. They leverage AI, they leverage appointment setters and they leverage acquisition managers. Okay? So that means that they know by installing these people and systems in their business, they're getting time back. They're either duplicating the time or getting time back. And that's what the biggest companies in the world do. Okay. By the way, this video is one of it's going to be one of the best videos that you would ever watch, trust me.
Okay, let's go to the ne next section. All right. Boom. You have generated leads. But the truth is that leads don't really matter if you don't have quality conversations. And quality conversations lead to potentially sales. So, we're going to talk about another part of the funnel, which is the back-end sales process or the back-end sales system. I'm going to create an entire video of this, you know, going over one big Google Doc that talks about the back-end sales process and more of that, but this one is going to be a a really good one.
Okay. Now, I talked about how beginners have manual calling, inconsistent calling. They just spend hours, right? There's no systems. There's no leverage, no nurture, and they don't have any authority in the call, no optimal client relationship management software or CRM. By the way, there's a lot of different softwares that you can do that you can use in order to do this. But what does this mean? So, when the lead comes in, a a newbie or a beginner will call with their Google voicemail. Sorry, with their Google Voice or they call with their normal phone. They're not going to record a conversation. So there is no log, no documentation about that call at all. So that call is literally, if it happened, you don't know, you don't and you want to go back to the recording, you have no way. You just have to rely on their memory and they have to rely on the notes if they do take down notes. Okay? So there's no way to really manage the leads. You can't handle the business this way. They text manually whenever the lead comes in and maybe they do go to a spreadsheet. This is horrible. I actually met a flipper that was doing this for years and um they were so stressed all the time. They were making money, but they just kept adding people, adding people, adding people, and their profits were not there because they just had people that had everything manually. Everything was in an email. There's nothing wrong against that, but you're just making your life much more difficult. And thank God that you're doing flips because flips are highly profitable. But anyways, professionals will create sequences. Professionals will create follow-up systems, sequences, and as soon as the lead comes in, there's going to be a flow or some sort of drip. So lead comes in and there's a flow that you can use it. You can create it in GoHighLevel or Iris simply. And the leads will have a text me will be sent a text message. will send an email, maybe a voicemail drop. Someone will call right away. You will create tasks out of it. You'll create smart lists out of it so that you can call later, too. And maybe you can also send an auto iMessage. All of that with one centralized system. It's called a CRM, right? It's part of your back-end sales process.
Now, the back-end sales process is to be able to get a hold of that lead, book an appointment, and then ultimately have that lead to be more hot. That's why there's a video sales letter, right? Because these people are sending that video prior. It's a credibility package. Okay? They also are going to be sending retargeting ads or retargeting material that resells the person on the business. Whether that's video ads, whether that's, you know, postcards, whether they are whatever it is, emails, like there's a lot of ways to actually retarget people to resell them on the idea that they're the best company to work with, right? The professionals will have an automated pipeline and will use software. Best softwares out there I know are Simply Carrot CRM and a GoHighLevel buildout. If you want a good GoHighLevel buildout, my team will take care of that. Tell me if you need it. We are currently selling it for $500 to $1,000. Depends on the type of buildout. It's only, you know, it's only for wholesalers, flippers, and and investors.
So now, the next step in the funnel is going to be a sales framework. This is one of my favorite ones because you might be in real estate, you know how to do the numbers, you know how to do the flips, you know how to choose what to do in order to flip, in order to like do your wholesaling and all that stuff. But the truth is that this is a marketing and sales game. Okay? So if you don't learn the sales framework that is going to take your lead that didn't trust you before and actually are going to now pay you well, sell you the house, essentially give you money, it's because you didn't have put an effort into a sales process and a sales framework.
Beginners have a generic four pillars. This is what gurus used to teach. Oh yeah, just do the pillars. The four pillars: motivation, time frame, condition of the property, and lowest acceptable cash offer. The truth is that that is the minimum thing that you should do in the marketing. The marketing should be asking those type of questions, not the freaking salesperson. The salesperson should be getting deep into the root cause, right? It's kind of like going into a doctor clinic and you don't know what's going on. Something is hurting really, really badly and the doctor is not going to go and be like, "Do this, do this, do this, and do this." No, the doctor is going to be like, "Okay, what what were you doing last night? Uh, how does it feel when you do this? How long has it been happening? I mean, if you do this, how long can you sustain this way or what would happen if you keep going this way?" And then you go deep into the pain so that you actually are going to sell them on the idea that this doctor is the expert because you go in into a doctor thinking that they're going to give you medicine, but you might need surgery, you might need something worse or better, right?
So a professional uses something called BAND. So budget, authority, need, time frame. So essentially whenever marketing runs, that's the minimal thing that you should get plus a few customized questions. So your form or anything that is running ads that is pre-qualifying people should know the budget, should know the authority, whether are they are they the ones that make the decision or or the owners of the house. Do they have a need and motivation and time frame? Right? And the marketing should do that. And whenever they get on the phone with them, they should have a framework, not a generic four pillars, not going for logic and price.
What does that mean? Beginners, whenever they get on a sales call or whenever they get on a call with them, they're going to talk mostly about the property. They're going to not talk about the seller or the homeowner or the lead. They're going to talk about the property. And this puts the person in a logical position, in a transactional position, which doesn't give you leverage whenever you're negotiating because all they're thinking right now is how can I get the mo the best price as opposed to how is this person going to help me move move on or solve my actual problem. So that's something that beginners people do. Beginner people do, they focus on logical questions and price. They also focus on qualifying the property, not qualifying the person. So, and there's no disqualifying, no disqualifying criteria. So, they'll probably have conversations with many. And then ultimately, they don't know where to go. Like, if they get an objection, then they don't know how to handle the objection. They literally don't know how to figure out whether this person is qualified or not because they think that because they're not giving you the right answer or they're not giving you the price that they want that you want, that is a low-quality lead. The truth is that you have a low-quality sales process.
Professionals will have something called a sales framework and our our most favorite one is called NEPQ. So neuro-emotional persuasion and questioning. And this framework is something that Jeremy Miner had created and my friend John Land ended up going very deep into real estate learning NEPQ and he became a master sales coach for NEPQ and Jeremy Miner team and then ultimately now he's taking this in real estate and he has a very successful school community, very, very cheap for you to actually have daily calls and training. The fact actually, you know, people in our business, in our agency, our clients have the ability to have weekly se weekly sales coaching with John Land and NEPQ. And because we know what it takes, again, we know what it takes to actually convert leads. Here's attention. Here's leads, back-end sales process, sales framework. You need that in order to get the end sales, right? Uh, and professionals, they have a way to to dive into the pain, find the problem, and then figure out what will be the solution. This is something that they differentiate them. The other thing is that professionals are problem finders and problem solvers while newbies, they don't know how to actually qualify. They don't know how to dive deep into the problem. They don't know how to figure out the goals. They don't know how to find the gap. And newbies get stuck talking with unqualified sellers. Get stuck talking with logical conversations. Get stuck doing 100 calls, 100 leads, and only only closing about 3 to 5%. And it's a bad experience. Every marketing channel for a newbie or for a beginner is bad. Or a good marketing channel like Google or Facebook or Instagram, it's bad. A professional knows how to actually do it. They know that it takes time and it takes money and skills and leverage to get a marketing channel.
Okay, I hope that you're liking this video. So, if you like this video, subscribe to my channel and if you're interested in working, just click on the link below.
Okay. Oh, and forgot to mention that beginner people are pushy, sloppy at building rapport and only focus on one thing, cash offers. While here professionals don't only focus on cash offers, but they have a process for everything. They create playbooks and SOPs and they not only focus on cash. They also have innovations, whole creative financing, listings in their back pocket. Now it doesn't mean that they have to do it right away. They have to learn it right away. But they do have partners that at the beginning did it for them. Whether that's another wholesaler or JV partner, and then they learn later, later learned or hired someone that actually knew how to do it.
Okay. Boom. It's called offer systems. So the next part of the funnel and the pillars that are required in order to convert is called the offer systems. So again, newbies focus on cash. They anchor low. They don't build trust and the trust goes to the ground because they want to shove a cash offer into someone's throat. There's no real pitch, no education to the seller. And while professionals are going to be doing cash, but cash is a lead way, right? Or maybe the offer that you're giving up front is much better. So, I'll give you a secret. Okay, this is what we're doing right now for people that are pros. A big offer up front. I've never said this in any other video that you could try and you can do is we will outbid any other investor by $5,000. We will outbid any other investor by $8,000 over what they're giving you. We'll give you $2,000 cash guaranteed for you to move out on your cash offer. This sounds much better. We'll give you a full price cash offer, which is whatever we agree on the sales call, whatever we do in the call. We'll give you top dollar cash offers. We'll give you multiple offers for you to choose from. And they'll understand the $100 million offer system that Alex Hormozi has created. And they're not a one-trick pony, okay? They don't rely on only one thing. And they know how to actually find an actual solution to the person's gap.
And this one is my favorite part. So, it's data and mindset. And we just went through an entire funnel and we just went through all the pillars that are required for you to succeed. If you want high conversion, again, beginner does 3 to 5% and a professional does 10%. If you want a high conversion, you need to take a look at whether you're getting high intent leads, whether you actually have a follow-up and nurture system, whether you have a sales framework or sales processes and skills, and whether you have offer systems for you to get better offers to your sellers. And the last one is your mindset.
Okay. Now, mindset goes coupled with data. Beginners, they don't do any tracking. And here's what they do. They judge the leads. They blame the lead. They blame the lead and they have gut feeling about this lead. So a lead comes in and they'll be like checking on the lead. They'll skip trace the lead. They'll take they take a look at the numbers before calling the lead whatsoever. They're not going to call the lead. Why? Right? Why would why would you call the lead when when literally the lead is giving me all the information and I can skip trace it? Well, here's the thing. You can have all the numbers in the world, but nothing is going to happen until you have a conversation, a quality conversation with that lead, with that homeowner. So, you got to pick up the phone and call. Stop being a.
Okay. So, professionals, they have funnels and they track every single part of the funnel. They have KPIs that they track from lead to appointment to offers to contracts to deals, ROI, conversion ratio, appointment ratio, offer ratio, contract ratio, lead to deals, lead to contracts. There's a whole lot of KPIs that they are tracking and you're not tracking on the acquisition system.
Okay. Now they are looking at the long-term ROI. They know that it takes time to get deals and they know about cash conversion cycles. You know that it will take about 45 to 60 days lead to deal with Google Ads and about 75 days to 92 days to get a deal with Facebook Instagram Ads as an example. So they know these things, right? And they know the level of intention and the cash conversion cycle of each marketing channel. They also keep everything things everything organized in dashboards. And the most important thing is that instead of judging the lead, blaming the lead and going for their gut with their gut, professionals have feedback loops with their marketing team. So let's just say this is a sales manager and CEO and they hire a marketing team like ours where they give them high intent leads. Well, they will have feedback loops every week where they will have they will give qualitative feedback about each one of the leads and they'll know the appointments that they have. They know the offers they give. They know the contracts. They know the conversation quality. They'll review the calls. They'll know the objections that they're getting. And they'll they'll they'll have a benchmark for every single station.
So here's here here's how it looks like kind of uh you get a 100 leads. Out of those 100 leads, you should have 70% of them to be marketing qualified leads. That's how a good funnel should work. If you're having 50 to to 70, I mean you're you're like under the bar, but the the most optimal one is going to be 70%. From the 100 leads that you get, 50 to 70% should book an appointment. 50% still good number. 60% is getting there, 70% is optimal where you should be getting appointments. But now, if you're getting 50% of appointments, then you want people to show up to those appointments, whether that's in person or virtual. You want about 70 to 80% of people to show up. That's the optimal one. And from the people that show up, you should be giving to every qualified lead an offer. Okay? And from every offers, all the offers that you have, you should have a rate to contract. From the people that show up in the appointments, it should be closing at least one out of four or one out of five, which is still 20%. Right? One out of four is 25%. Those are good numbers. Numbers like one out of 15 on Facebook Ads, those are good numbers. One out of 10 to 12 on Google Ads, those are good numbers. If you're a newbie, you'll be closing one out of 30 on Facebook Ads, one out of 25, one of one out of 20 on on Google Ads. So you'll be spending more money and you'll have less conversion.
Okay? It's an entire funnel. It's an entire process because people see professionals see it as a machine, as an operations, as a business, while beginners see it as a side hustle that they'll never be able to see this. So if you're a beginner and you want to become a pro, it's time to upgrade. Or you think you're a pro, you've been in the business for a long time and you're still doing these things. Come on, man. You got to upgrade. You got to get from here to here. And if you want to know more about that, there's a lot of the videos that I'm putting in here for free where we go over how to generate high intent leads, how to have a back-end sales system, how to have a sales framework with NEPQ, for example, and how to have offer systems, and how to handle your data and mindset. And all of that. I give it to you for free because I believe you should have this education for free. So you can buy my leads. So you can buy my high intent search leads. All right, from getellers.io and hle media. So if you like this video and you're new to my channel, uh just subscribe, like this video and uh if you want to know more about these things, leave me a comment about the things that you want to know. If you have any other questions, I'll create videos out of those questions. And uh share this with someone that you think is going to need it. And uh see you.