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Hey guys – with this lesson, we’re excited to bring to you the kickoff for our newest series. We’re calling it the “7 Things” Series. In this series, we’ll hand off a subject to one of our advisors and then ask them to come up with 7 important things that they’d like to share about that topic.
You’ll be seeing a lot more of these types of lessons coming out in the near future. Each advisor will have their own spin on this theme. And who better to feature in this kickoff lesson than our own veteran, long-standing contributing advisor, Patrick Riddle.
This is Patrick here, and I’m super excited about being the first one out of the gate to kick off the new “7 Things” Series. I’m also excited that I get to address a subject that fits in the business-building arena.
I’m a firm believer that business building is every bit as important as learning real estate investment strategies.
Building a business, and putting together real estate deals, are two entirely different things – both of which require two entirely different skill sets. Both are equally important in your success.
In this lesson I share the steps that I take when hiring new team members. These are the 7 steps that I take, and also are the steps I recommend to other people. This is good timing because I recently hired my newest team member, Pamela. I can use her as a great example which will give you even more insight.
When you first consider hiring another person for your team, the first thing you need to do is clarify the position. Make sure you’re clear on exactly what you want that employee to do for you.
Oftentimes, I even write it out just to clarify in my own mind: “I want to bring on someone to do X, and have this position with these responsibilities, and this person will handle these specific tasks."
From there I create that list of the responsibilities that I want to hand off.
The next step is to seek referrals. In my experience, I’ve found that referrals are the best sources for finding team members. This can happen in the course of my daily conversations… and as we’re chatting about a few things, I’ll say: “Oh, and also, I'm hiring someone in my investment business. So, I'm pretty excited about that."
Just by casually tossing out that bit of info, I end up getting referrals.
In my most recent hire, I got three referrals from local friends and associates. One of those referrals was a woman named Pamela. This came from a good friend of mine because Pamela used to work for his business, which is a similar type of real estate investing business. Additionally, she has a background working with different real estate brokerages, and she used to be a Realtor. It seemed like the perfect fit.
If I haven't gotten a good fit from referrals, then I turn to Craigslist.
When I post on Craigslist for a new team member, I make the interested person follow a few specific steps in a process. For instance – I ask the person to send an email to a specific email address containing their resume. I then ask them to answer three questions.
Why do I do this? Because I’ve discovered that many times people don't follow these simple steps. This means I can immediately disqualify them. Typically only 20% to 30% of people actually follow the steps that are outlined.
What an easy, quick way to whittle down the list of applicants. Once you have a smaller list, you can ask them to fill out a longer questionnaire and gain all kinds of information.
Ask them to take these steps before you ever even talk to anybody on the phone. This will help you to disqualify the majority of applicants who would otherwise just waste your time.
By this point, I have a list of potential candidates – now it’s time to set up what I call a Get to Know You call. Just by chatting with the person on the phone, I can get a pretty good idea as to whether or not they might be a good fit.
This is not a structured call. I usually start off by saying something like: "Tell me a little bit about yourself. What do you like to do?"
I don't just talk business. I try to make this informal and put them at ease. I’m using this call to feel out this person. I usually let them know just a little about the specific business model that we have and a rough idea for the position that I'm looking to fill.
For the person/people who passes the Get to Know You call, I set up a Talk About the Details meeting. There, I'll go through all the further details and clarify exactly what the position is and the idea for how we would get started if things worked out.
I can usually tell from the details in these conversations which of these candidates I want to go with. As you can see, I’ve factored in a number of hoops for the applicants to jump through. I’m now ready to make them a job offer. But I’m still not quite ready for a long-term commitment.
I will now set up a trial period that will cover a short time – maybe 30, 60, or 90 days. (You can do what works best for you.)
With Pamela, I set up a 60-day trial period. This is how I explained the situation to her:
“This trial period is for me to find out whether or not I feel you're a good fit for this position. But, it's also a chance for you to find out whether or not this is something that you feel you would enjoy doing.”
The idea of a test period makes it more comfortable for everyone. That way if things don’t work out, both of us will feel free to easily back out.
So even after you’ve discussed all the specifics of the responsibilities involved, I still strongly suggest setting up a short test period.
Some of you may be wondering exactly how we set up the job responsibilities and compensation. Here are the details...
In the beginning, we're going to focus on one small part of Pamela’s overall role. Later, her role will grow and expand, but I choose to start small and work up. The first area is lead harvesting and list segmenting.
A. Lead harvesting & List Segmenting
We do a lot of direct mail in our business, so her position will be harvesting the different leads that we target through direct mail, segmenting our list and coordinating with our direct mail company to get those off the ground.
B. Managing Contact to Appointment
The second part involves the contact to appointment, which consists of handling all the incoming calls from sellers. She will be:
It is in this second area where we're going to initially focus all her efforts until she becomes proficient in this one task.
C. Transactional Management Contract to Close
The third part of her overall position will be to help with the coordination and organization from contract to close. She will take care of all the details from when we get a contract on a property all the way through to taking it to the closing table.
There’re a couple different ways that you can structure compensation. For this trial period with Pamela, we're paying her a base amount plus commission on the properties that we flip. The base rate is $250 per week; plus a small percentage commission from the deals that we flip and close.
There you have it. If you’re still trying to run your investing business as a soloprenuer, I strongly advise you to stop. There are some fears that you may have to break through in order to take that step. But I say, take that step anyway. When you do, it’ll allow you more time to focus on what you’re best at doing – and that’s finding deals and bringing in the money.
Please chime in with your comments. Do you like this series idea? Do you have suggestions for something you’d like to see included in the series?
Stop trying to do it all. A soloprenuer will quickly burn out.
Review mundane tasks in your daily routine. Determine which tasks can be handled by bringing in a team member.
Face your fears about the prospect of hiring an employee.
Is there a topic you'd like to learn more about? Request a Lesson
has been investing in real estate ever since he got the bug in college at Clemson University and - to his parents dismay - dropped out of college to dive full-time into real estate at the age of 22 with a couple friends/partners from school.
The first few deals were rough for them, mainly using their own cash, credit, and hard money loans. But, soon he found out that was a rough and unsustainable way to build a real estate business.
After "on the job" learning through the school of hard knocks at first, he found the key that helped their company get deals done more quickly, with higher profit, less risk, without having to go to banks or use their own cash.
Fast forward to today, their company has closed over 130 real estate transactions and has put over $6 million in private money into their own transactions.
Module: Business Development
Expert: Patrick Riddle
At RealEstateMogul.com, we’re committed to delivering the awesomest, most practical, actionable content to our members … and that a big part of that is getting YOU to tell us what you'd like to learn from us. Since our REI resources are basically endless, we’d love to tailor our upcoming training as much as possible to precisely match what you, our members, really need and want out of us.
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FROM PRESTON ELY - MY PERSONAL DISCLAIMER TO YOU
Hi - we do everything in our power to run a good, clean business and help people succeed.
We've been in business for nearly a decade. Our mission is simple: help 1,000,000 people live lives of greater freedom. That's what gives us juice and passion.
Unfortunately, there are people and companies who do bad things and make products that don't work at all or don't work as advertised. That behavior hurts everyone.
The bottom line is there is no such thing as magic. There is no magic unicorn that will appear on your doorstep and start pooping gold bars or giving you free money.
Just because people in this program have made lots of money doesn't mean or imply the same will happen to you. In business, and in life, there are no guarantees.
Any one of the people who we happen to feature in this program have a BIG WHY - they want to make a difference and help themselves, their families, their employees and customers succeed. They want more and they apply themselves, they get outside of their comfort zones, acquire new skills, work like crazy, make mistakes, and fail, BUT THEY DON'T GIVE UP.
They implement. They don't quit. They serve. They didn't blame someone or something else for their mistakes or failures - instead, they do the HARD WORK that it takes to make a difference.
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If you're the type of person that isn't willing to roll up your sleeves, learn, explore, grow and focus on helping other people succeed, our programs aren't for you.
If you're a blamer, whiner, malcontent, or just downright lazy, our programs aren't for you.
But if the content is this program and our videos resonate with you - and you can see the possibility and potential that this can work for you, then WELCOME HOME. You're in the presence of REAL PEOPLE who are helping REAL BUSINESSES succeed, thrive and survive.
It would be both mine and my team's pleasure and honor to serve and support you so you can EARN MORE, LIVE MORE and GIVE MORE.
Preston Ely, CEO
FULL EARNINGS DISCLOSURE:
RealEstateMogul LLC. (The Company) does not guarantee income or success, and examples shown at RealEstateMogul.com do not represent an indication of future success or earnings. The Company declares all information shared is true and accurate, and any claims made of actual earnings or examples of actual results can be verified upon request.
The earnings, revenue and profit results that a customer will generally achieve in circumstances similar to those depicted in the endorsements and testimonials on this site depend on many factors and conditions, including but not limited to, work ethic, learning ability, use of the products and services, business experience, daily practices, business opportunities, business connections, market conditions, availability of financing, and local competition, to name a few. Because of impediments due to any one or more of the foregoing and other factors, it is generally expected that no earnings, revenues or profits will be achieved with the use of any products or services advertised on this site in circumstances similar to those referenced in any endorsement or testimonial.
Each of the purchasers of our products and services who have provided their endorsement or testimonial for use on this site have received a refund in the amount of the cost of the product and service in exchange for their endorsement or testimonial.