Why Having Tons of Leads Can Be Bad! | Wholesaling Real Estate - The Titanium Vault hosted by RJ Bates III

Episode Transcript
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SPEAKER_00 (00:09):
Oh man.
Well, apparently we need to talkabout this.
Having a bunch of leads is not agreat thing.
This got brought up during theTitanium University
implementation call yesterday.

(00:31):
And uh man, it sparked a greatdebate.
Apparently, we have an issueinside of our industry that I
was not aware of.
I I thought I was doing a prettygood job of keeping my my little
thumb on the pulse of whereeverybody was, but apparently

(00:55):
the majority of wholesalers arehoarders.
Hoarders of leads, right?
They want to chock fool theirCRMs of a bunch of dead leads
with the hopes that the gold isin the follow-up and we can

(01:17):
resurrect these zombie leadsfrom the dead and create
something.

Now, here's the thing (01:23):
you guys can chew me up and spit me out
in the comments.
You can tell me about all ofyour deals that you've gotten
from months and months of dripsequences and follow-up calls
and voicemails.

(01:43):
I know that we can get dealsfrom old dead leads.
I'm not denying that.
What I am wanting to change thethought process around
wholesaling is that when you'reon the phone with the seller,

(02:03):
the objective of thatconversation is to come to a
resolution of either receiving asigned contract or finding out
we are not their solution andkilling that lead.
And here is the reason why Iwant that to be the case.
I want my acquisitions team tobe able to log into their CRM

(02:28):
and see right in front of themthat each one of those leads
that exist inside of that CRMare an opportunity for them to
make money today.
I do not want an acquisitionsmanager to sit there and call a

(02:49):
lead over and over and overagain, asking the same questions
and trying to resurrect thatlead from the dead, even though
they told you three months agothat they're not in a position
to sell that property for thediscount that we need.

(03:10):
Now, let's go back to thelifespan of a lead.
It comes in, it's a new lead,it's sitting inside of the new
lead status inside of your CRM.
Your job is to then get thatseller to answer the phone and
communicate with you so you canthen determine the price that
they need, their motivation, andeverything that's going on as to

(03:33):
why they would need to sell thatpiece of a real estate for a
discount.
And if we are the solution, thenyou get them to sign a contract.
Otherwise, you should bepointing them in the right
direction to what is their bestsolution, whether that's hiring
a realtor, a short sellspecialist, listing it for sell

(03:57):
by owner, whatever that is, youshould be educating that seller
on their best solution.
This is how you can have a 100%success ratio with your leads.
Because no matter what, you arepointing them in the right
direction.
Now, if we are ending theconversation in a can I call you

(04:20):
back in 90 days to see if yoursituation has changed,
essentially what you're doingnow is you are signing yourself
up to be a cold caller later onin the future, where you are
always going to be following upwith leads that have already
told you no or you have toldthem no.

(04:42):
And so I want to be veryaggressive inside of my
wholesale operation where theacquisitions manager has 100%
rights to kill that lead, moveit to dead lead, and then be
able to stare at a queue ofleads and say, Hey, these are
all the opportunities that Ihave to lock up a deal today.

(05:06):
Otherwise, you're going to endup with a queue of leads of
hundreds, if not thousands, ofleads that you're always trying
to get them to answer the phoneand hope and pray that their
situation has changed.
And that is not what I want myacquisition managers doing.

(05:28):
I have no problem hiring avirtual assistant to resurrect
dead leads, but that's not whereI want my closers spending their
time.
That is not the skill set that Iwant them to have.
I want them to be able to lookat a fresh set of leads and say,
there's a new opportunity for meto be able to close a deal.

(05:51):
So when I say a bunch of leadsis for losers, what I mean by
that is I'm not calling you aloser.
It's a losing mentality.
You're afraid to walk away fromthe no when you should be
embracing the fact that you'renot the solution for that

(06:11):
seller.
Now, during this conversation,there was a bunch of questions,
and rightfully so.
If you have not been doing this,this kind of is a shift in your
mentality to your business.
Some of the questions that wereasked of me were what do I do
with a lead that can't signtoday?

(06:33):
For whatever reason, a validreason.
Like, hey, it's an inheritedproperty, and I have three
siblings that I need to checkwith.
Hey, I have a spouse that I needto check with before I can sign
this contract.
That is perfectly okay to movethat to the follow-up status
inside of your CRM.
You do not kill those leads.
That is a valid reason.

(06:55):
Another example was what ifwe're just slightly off on
price?
Say it's 15, 20,000,$25,000.
Well, that's a viable lead.
That could be something thatcould be converted 20, 30, 40
days from now.
And that happens all the time.
I'm not saying kill those, I'mtalking about the ones where the

(07:18):
after-repair value is$250,000and the seller says, I want
$275,000 because I know whatI've got.
Okay.
Now there are people that aresaying, I'm afraid to kill that
because I spent money on thatlead.
And what if their situationchanges 90 days from now?

(07:42):
Well, you could build thatbridge and tell that story over
and over and over again andnever get rid of a lead.
And then you have no idea howmany real opportunities actually
exist inside of your business.
See, I want to be able to lookinside and say, all right, I
know for a fact that today thereare actual real leads that can

(08:07):
be signed and closed today forus to make money.
If I'm staring at a huge list offollow-ups, a couple of
different things happen.
One, my acquisition managers aregoing to be demoralized by the
amount of follow-ups thatthey're having to make that have
already told them no.
Two, from a business, we are nowrunning on hopes and dreams and

(08:30):
not the reality that actuallyexists in front of us.
If an acquisition manager isstaring at 250 follow-ups,
that's not 250 opportunities tomake money.
Maybe we could pull one or twodeals out of there, but you're
gonna have to follow up with the248 no's that already told you

(08:51):
no.
So there's not a reality there.
And so we start accumulatingleads, and it becomes contagious
inside of our business wherewe're always clinging on to the
hope.
I want to be more realisticabout what's happening inside of
my business.
Track the real KPIs of what istaking place.

(09:15):
We buy the leads, what's ourcontact rate?
From the contact, how many leadsdo we need to get to a contract?
And then from there, how manycontracts do we need to get to a
close and funded deal?
And then what is our averageassignment fee per close it
funded deal?
Now we can reverse engineer andknow how much does it cost us to

(09:39):
get to a close and funded deal.
Now we know as a business howmuch money we're making.
But if we're always clinging onto these leads that are already
no, they're already dead uponarrival, we're just going to be
running in circles and nevercoming to the realization that
we should have killed that leadmonths ago.

(10:01):
I want my team to be efficient,I want them to be aggressive.
I I consider myself the coach inmy organization and the
acquisitions team and thedispositions team as the
players.
Players make the plays.
If I'm always sitting there andmicromanaging them and saying,

(10:22):
we're not going to kill thatlead, then at the end of the
day, they are going to feel likethey do not have the freedom to
sit there and make plays insideof my organization.
They're always going to feellike I am counting every single
penny.
I'm sitting there and saying,no, I bought that lead.
I need you to continue followingup with it because, as an

(10:44):
industry, that is what we havecontinued to say.
The gold is in the follow-up.
No, the gold is in your abilityto get a hold of a seller and to
close it when you are the rightsolution.
Actually getting to the pointwhere you can resolve the
seller's solution on that momentof truth.

(11:05):
When you have them on the phone,is it going to happen each and
every time?
Absolutely not.
There's going to be scenarioswhere it takes two, three, four,
five dials.
But the reality of it is, whenyou have them on the phone, your
intentions as the closer shouldbe to close the deal or kill
that lead.
And when you kill the lead oryou get a signed contract, what

(11:29):
happens the next day?
You get a new lead inside ofyour queue of leads to replace
that one.
So this is how I always want tomanage the team.
If my closer shows up and theirqueue of leads is 50 leads, and
throughout the day they get onesigned contract and nine dead

(11:51):
leads, they're down to 40 leadsthe next day.
I want them to receive 10 newleads that next day.
So they're always maintaining aqueue of 50 leads to work on.
And they they now know this iswhat my opportunity is here at
Titanium Investments.

(12:12):
Otherwise, you're just gonna bestaring at a bunch of hopes and
dreams.
And yes, like I said earlier,I'm sure you guys could come in
the comments and say, Idisagree.
And this is how I disagree, RJ,because I've had all these
closings that have come fromdead zombie leads, and you would
have walked away from them.
I'm not saying you never have towork those leads again.

(12:34):
It just shouldn't be youracquisitions manager.
Have somebody else that has timeand can work cheaply, go call
each one of those leads and seeif they can resurrect them and
then pass off those warm, hot,inbound leads to your
acquisition managers who are theskilled players on your team.

(12:58):
So I can't wait to hear what youguys have to say inside of the
comments because I know this ledto a several hour long
conversation inside of TU'simplementation call.
So I can only imagine what it'sgonna be like outside of TU.
Let me know what you guys thinkin the comments.
Regardless, show me some love,like today's video, and we'll

(13:19):
see you guys tomorrow.

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Why Having Tons of Leads Can Be Bad! | Wholesaling Real Estate

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