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Business Development

Property Scouts - Part I: Add Scouts to Your Team, STAT

teamworkReady to outsource some of your work but not sure how to find the right people?

Hey Moguls, Dolmar Cross here, and if you’re like me, you’d do just about anything to hire someone else to do those repetitive, tedious tasks that keep your business humming.

And why shouldn’t you?

Handing off those tasks leaves you free to do the things that grow your business, that only you can do.

For example, as far as I’m concerned, you should never be marketing for leads. Or seeing deals through closing. Those tasks can and should be outsourced. And thanks to today’s technology, it’s ridiculously fast and easy to outsource these tasks, for not very much money.

Think about the people you outsource to as your property scouts, you know, those bird dogs who find deals for you. And these scouts don’t have to be in your area. It’s just as easy to work in distant markets as it is to work in your own backyard.

But how do you find the right people?

After all, even if these are tedious tasks, they’re essential to keeping your business running.

Consider Your Options

Your property scout network could be comprised of people inside or outside the industry.

  • Inside: agents and loan professionals
  • Outside: stay-at-home moms, college students, or really anyone looking to add a new income stream

Personally, I prefer to work with people outside the industry because there’s less hassle and I enjoy the educational aspect of it.

Most of these people have no background in real estate and probably couldn’t give you definitions for “equity” or “appreciation” if their lives depended on it. Of course there’s a bigger learning curve, but if you have an automated training system in place, it won’t take much time to bring them up to speed.

Find the Superstars

Know that just because you’re considering people outside the industry doesn’t mean you shouldn’t be selective. And the very best property scouts are people who have an honest desire to learn real estate investing.

These are the people who recognize that the education they’re receiving by working with you is exponentially more valuable than the payouts they’ll receive from referring a few deals…

teamUnlike others who blindly throw 50 leads at you and hope you can make something happen, you’ll find these people will actually strive to learn and improve over time.

While these “superstar” property scouts may be few and far between, they are out there. When you find these people, make sure you intentionally take the time to cultivate these relationships.

Remember Long-Term Relationship Value

The reality is that at some point, you can expect your “superstars” to leave you as they delve into their own real estate ventures.

But so what?

Think about it...

You’ve helped someone in their pursuit of financial freedom and created a long-term relationship in the process that should continue to profit both of you via joint ventures for years to come.

Leverage Scouts in Short Sales

In the case of short sales, there are definite advantages to working with property scouts who are inside the industry.

Hire real estate agents as your virtual property scouts. Then, while you’re doing the negotiating with the bank, they can line up buyers.

The 90/10 Rule

Regardless of whether you hire people inside or outside the industry, the success of a rapid, virtual, large-scale property scout program comes down to a numbers game.

And the 90/10 rule certainly applies: 90% of your good leads are going to come from 10% of your property scout network.

So the more scouts you bring in, the more “superstars” you’ll have on your team, and the more deals you’ll profit from.

I know one investor in Florida who successfully recruited and trained 495 property scouts in just 3 weeks. Incredible! Needless to say, his chances for success are extremely high.

Coming Up…

In my next lesson, we’ll discuss more about the all-important training for your property scouts. See you then.

Give a Shout to a Scout

What qualities do you look for in a property scout? Let me know in the comment section below.

 

Do It To It! Immediate Action Steps

1. Decide what qualities will make property scouts most valuable to you.

2. Automate your property scout training system to make it as efficient as possible.

3. Over-hire and expect 90% of your good leads to come from 10% of your scouts.

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