Solving the internal problem will give you superpowers.
Your real estate business is growing. You feel like everything is working — until it isn’t. For me, wholesaling was a great new venture. I could assign deals and make $10,000 or even $20,000 each time, provide a needed service to investors and sellers and make a great living as a result. All was good, until I wanted to scale to the next level. Things got REAL fast as Internal problems creep up, forcing me to address them head on. These were problems that if not solved, would block my path to scale.
Problems that if not solved, would block my path to scale.
As we grow, our mindset needs to shift from closing deals to building a business that closes deals. This is a Subtle, but very huge difference that most fail to embrace. We need to be willing to take on fixed expenses like marketing, payroll and overhead, so we not only want to close more deals, we MUST to keep the business profitable. I remember when I first made the decision to double the business. I researched and listened to all the Real Estate podcast and settled on the highly touted four-person team: an acquisitions manager, a disposition manager, an administrative assistant, and then me. I placed my ads on craigslist and indeed and watched the applications roll in...slowly I might add.
After a few interviews I pulled the trigger and made my first hires, trained them the best i could and we got started doing deals. A couple years later.....(yes, years!) I found myself stuck at $300,000 a year with stagnant revenue. Now, let me just say $300,000 a year is great income, i believe you can live most places in the world on that kind a money and live very well. But yet i was unhappy because knew we were capable of more, and I made $300,000 in revenue a year when i was on my own, with far less expenses. So this actually had me taking home less, even though I had a team. I just knew something terribly wrong with this picture.
Being the analytical person that I am, I checked the data. I looked at everything. I mean everything! I concluded that the answer would be to double my marketing expense. I mean its basic math that would lead to double the deals, right? Wrong! Thats when I realized that marketing alone wouldn’t grow my business. About six months in, I knew something just wasn’t working. We were only seeing a 20% increase on revenue, but not double. We were getting double the leads. But not double the deals, WTF?
That's when I realized that marketing alone wouldn’t grow my business.
My digging led me to the conclusion that I was getting so many more leads now that I needed another acquisition manager, as my current guy was overwhelmed. More leads led to him following an inconsistent process and cherry picking. So, I went back and hired another acquisitions person, as I needed all of my leads to receive the same attention. I found someone good and trained him myself. He was sharp with a sales and real estate background, this would definitely work out, right? Wrong again! He managed to close some deals but again we still weren’t getting double the deals. But why?
But why?
Let me stop right here! I want to tell you that asking why, and not settling until you find the answer will be key to building a better, more profitable, and more valuable business. Be relentless in finding solutions where others get tripped up or stop, this with separate you from your competition. I now know this from experience, because after some time, I finally found the answer to my internal problem. I realized that everything came down to operations—or the funnel, aka the structure in which we put leads through. Haphazard processes in my case was costing me my sanity and profitability.
I watched YouTube videos, listened to Wholesaling podcasts, and studied the gurus. Still, no one was talking about the specific issue I was having. I mean NO ONE! I resigned not to spend another dollar on marketing until I solved these internal issues, because I knew intuitively, that everything else would be harder and more expensive from there on out until i did.
You see, the way we were doing it, one lead that didn't sound motivated enough to sell would get 1 or 2 calls while another would get like 17. There was no process, no structure, we were all over the place. So I decided to formulate what I now call the Million Dollar Acquisition Structure. Founded through my own trail and error, reading books and researching other industries outside the real estate wholesaling niche.
This was risky on my part, I had to break the current structure down and put it back together again in hopes that it would be stronger for longer. I hadn't heard about a Real Estate company structuring their business the way I was going to structure mine. This was a pivotal moment and the most important decision EVER, as It changed everything and made my business easier to run going forward. It other words - it gave the business superpowers.
Today our business is consistent in terms of deal flow. Every lead that comes in follows a planned process from start to finish. My team is always looking and finding ways to fine-tune it. The results that followed were staggering - here's what happened.
- We Tripled deal flow
- Revenue increased by 4X
- Profitability went through the roof.
The incredible part is we didn’t spend one extra dollar on marketing to get these results. Today our deal flow is very consistent. We're able to find, hire and onboard new team members fast without slowing down and our business processes are well documented and structured. So while the real estate market changes around us were able to adapt and continue to do deals as many of our competitors struggle. This could be you too... in your market. Here are some of the things we did:
- Created a Million Dollar Acquisition Structure
- Documented our entire business process
- Built 35 Internal Onboarding Courses
- Built a Virtual Hiring Funnel
These are assets we had to build out, we couldn't simply download software or pay some guru to do this work for us. You know the saying: you have to take two steps back to take three steps forward. If you're finding it hard to scale, you may need to go back and fix your structure, processes and systems first and then scale on top of that.
These were assets we had to build out, we couldn't simply download software or pay some guru to do this work for us.
I know, I know....you're a fast moving CEO, the last thing you want to do is slow down. Yet if you don't do this ground work, you won’t grow. So hear me when I say, If you have an inconsistent deal flow, spending more on marketing isn’t always the answer. You may have structural problems that will make it hard to grow - don't build a house of cards
There is a light at the end of the tunnel & I’m here to guide you to the other side.
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