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Lead Managers - The Sneaky Cheat Code

The Importance of Lead Management in Your Business

Why are they the sneaky cheat code? Because most people completely undervalue the position. Most people do what I did initially, and assume a warm body will do.

I was wrong, lead managers are a critical component of any real estate company where generating leads and talking to motivated sellers exists. Just to be clear on the definition of lead manager, a lead manager is anyone who answers phones where calls are generated from outbound marketing. Also, if you do marketing that is intended to get someone to fill out a form on your website or on a landing page. The person who receives the information from that form fill and calls the seller is also your lead manager. They are essentially the first person to talk to anyone who reaches out to the company as a result of marketing.

This person in your company is the gatekeeper. They are the first person the seller talks to to decide whether or not they want to work with your company or whether or not you’re even a legitimate person who could buy their house.

This post is written from the perspective of teaching you how to hire a great lead manager and why they are so important to your business. If you’re not at a place where you’re hiring a lead manager, and you’re doing it yourself, then hopefully this is helpful for you but also keep it handy when you’re ready to hire!

Making the Fatal Mistake

When I first started out as a wholesaler, I made a big mistake. I underestimated the importance of the lead management position in my company. I had the attitude that anyone could handle it. After all, how hard could it be to pick up the phone and talk to potential leads?

I was wrong.

I quickly realized that the lead manager is the face of your company. They are the first point of contact for potential sellers, and their interaction can make or break a deal. If they don't do a good job of creating rapport and understanding the seller's motivation, you can kiss that deal goodbye.

The Face of Your Company

Think about it this way: imagine you're a seller who wants to sell your house. You receive a postcard or a letter from a real estate investor. You're interested, so you give them a call. The person who answers the phone is your lead manager. Their job is to make a good impression, build trust, and ultimately set an appointment for your acquisitions team.

But what if the lead manager doesn't do a good job?

What if they don't ask the right questions or create rapport with the seller?

Chances are, the seller will move on to the next investor in line. That's why the lead manager role is so important. They hold the key to whether or not you'll be able to get a chance to close a deal.

A Common Misconception

I've seen it happen countless times. Business owners think they have a marketing problem when, in reality, they have a lead management problem. They spend a lot of money on marketing, generating leads, but very few of those leads actually turn into appointments. They just assume it’s the marketing. It's a frustrating situation that can be easily avoided with the right lead manager in place.

The Importance of Hiring the Right Person

So, how do you ensure you have a great lead manager? It all starts with the hiring process. Don't underestimate the qualifications needed for this role. Look for someone who is highly qualified, has excellent communication skills, and can build rapport with potential sellers.

Essentially a people person. Someone who has genuine empathy and a desire to help. Someone who is easy to talk to and can get people to open up.

When hiring, take your time and don't rush the process. You want to find someone who is not only capable but also fits well within your company culture. And once you hire them, don't just hand them the phone and expect them to excel. Train them, provide feedback, and regularly audit their calls to make sure they're delivering the best possible experience for your potential sellers.

The Role of Rapport

Creating rapport is everything in lead management. It's the key to discovering motivation and setting appointments. But rapport doesn't come from bombarding sellers with a list of questions about their property. It comes from genuine conversations and making the seller feel comfortable. Don't get caught up in asking for every detail about the house. Most sellers won't know or won't feel comfortable sharing specific information. Instead, focus on building a connection, showing empathy, and letting them know that you're there to help. Remember, you're not just trying to gather information, you're trying to build trust.

Setting Appointments

The ultimate goal of a lead manager is to set appointments for your acquisitions team. This is where the rubber meets the road. Make sure your lead manager understands the importance of setting appointments quickly and efficiently. Time is of the essence, and being the first investor to meet with a potential seller can give you a significant advantage. When setting appointments, be flexible and try to accommodate the seller's schedule as much as possible. Even if they're unsure or need to check with someone else, set the appointment and let them know they can always reschedule if needed. Getting that appointment locked in is a big step towards closing the deal.

The Time Factor

Efficiency is key in lead management. Calls should ideally last between 15 to 20 minutes, but not longer than 30 minutes. Some sellers might be lonely and enjoy talking for extended periods, but it's important to keep the conversation focused. You don't want your lead manager spending too much time on one call and missing out on other potential leads. If your lead manager is unable to answer a call, it's crucial to have a backup service in place. Voicemail is not an option. Consider using a service like Call Porter, which specializes in handling real estate investor calls. This ensures that every call is answered by a human and gives you peace of mind knowing that you won't miss out on any opportunities.

The Bottom Line

Lead management is a critical component of your business. It's not a position to be taken lightly or undervalued. Hiring the right lead manager and providing them with the necessary training and support can make a world of difference in your bottom line. Remember, the lead manager is the face of your company – the gate keeper. They must get great at creating rapport, discovering motivation, and setting appointments for the Acquisition Manager.

So, if you're looking to take your business to the next level, don't overlook the importance of lead management. It might just be the missing piece of the puzzle that propels you to success.

How I Got Started In Real Estate

I couldn’t take it anymore

Nine years ago, I was working a corporate job in the automotive industry. 

It was my dream job…

… or so I thought.

About five years earlier, I had gotten my college degree.

I didn't go to college right out of high school, but eventually realized that…

Without a degree, my corporate dreams were never going to materialize.

So I went back and got it.

Getting my degree allowed me to get the kind of job that I always wanted at an international company with lots of upward mobility potential.

I watched those ahead of me closely... to find any hacks to move forward faster.

What I began to notice was that they were not happy.

• They didn't seem to like their job,

• They complained about their spouse

• They just seemed to have a miserable life in general. 

I started asking myself if this was really the path I wanted to take.

Meanwhile, I had gotten interested in real estate and started flipping houses on the side. 

It was going OK, but I wasn't making enough money to make a real difference. I would flip a house here and there, sometimes making good money, sometimes just barely breaking even.

I had no idea how to do it any better than I was doing it, but I kept at it.

After a particularly frustrating confrontation with a client at my job, I made the decision to start taking real estate more seriously.

I couldn’t take it anymore

I decided to go all in.

It was going to be my way out of the corporate prison that I found myself in.

The problem was, flipping houses wasn't getting me to where I wanted to be in real estate.

It seemed like there were so many things that were out of my control that were killing my profits.

• Difficult Realtors

• Bad appraisals

• Contractor drama (lots!)

• Inspections gone wrong

• Unanticipated repairs

• Retail buyer drama

• Mortgage company issues

I could go on and on (and on).

Even though I was getting much better at it, I realized that I really didn't love the flipping model.

It was then that I decided to pivot and change my strategy. I quickly learned the mechanics of wholesaling, and shifted from a rehab model to a wholesaling model

I had found my happy place and a mentor

Within 12 months I easily replaced my W2 income and quit my job. 

12 months later, my business grossed over $1,000,000 in profits!

I went from trying to figure it out and working way too hard on the wrong thing to having a blueprint that laid out the success path for me…

…all I had to do was follow it.

Since then I have:

1. Started a podcast (This year it's on pace to get over 350,000 downloads)

2. Done over 700 deals

3. Acquired 25 rental properties (And sold them 2 years at the height of the market!)

4. Published a book (Level Jumping)

5. Partnered in one of the largest Real Estate masterminds in the country

6. Personally Taught hundreds of investors how to build 6 and 7 figure businesses

7. Launched a hard money lending company

8. Created a wholesaling business that generates 8 to 12 deals per month and is completely automated.

It is truly amazing to look back at my journey over the last decade.

I feel like a living example of how someone can change their circumstances if they simply decide to.

Here are 4 things I would share with anyone considering or starting a journey in RE Investing...

• Take action every single day. Even small actions add up overtime

• Hire a mentor sooner than later (Let’s talk!)

• Focus on lead generation at all times, it’s oxygen for  your business

• Get good at building a team, a great team will be the difference between a 6 figure or 7 (or 8) figure business.

I believe that everyone deserves freedom…

…but there is no TRUE freedom without financial freedom.

We're all gonna die someday. Don't die as a spectator.

GET IN THE GAME.

9 Million houses To Hit The Market In The Next Decade

Last year, the home market halted after a violent outbreak. Total house sales fell to their lowest level since 2011, largely due to a 30-year low in existing home sales. Too little stock for sale. Baby-boomer households are downsizing and falling homeownership, which Freddie Mac expects to bring more than 9 million properties on the market in the next decade.

Boomers are important in the home market. Most own their homes or have cheap mortgage rates, and they appreciate. Boomers are sticking onto their houses because mortgage rates have more than quadrupled in the previous two years.

According to Freddie Mac, aged boomers selling their homes might cause a ‘silver tsunami’ of inventory. “But as this analysis shows, the tsunami is more like a tide, bringing a gradual exit that will mostly be offset by new entrants.”

The Urban Institute predicts that 8.5 million additional households will be established this decade and 7.6 million between 2030 and 2040, most of which will need dwellings. So “total housing demand over the next few years is likely to continue to increase,” said Freddie Mac.

After Bloomberg named her the “Oracle of Wall Street” in November 2023, Meredith Whitney forecasted a “silver tsunami” of baby boomers downsizing in 2024 and 2025. Whitney claimed 51% of over-50s will downsize, citing an AARP research at a Yahoo Finance Invest Conference. She claimed this will bring more than 30 million housing units to the market, faster than Freddie Mac and higher than the mortgage firm predicts. Whitney, who correctly foresaw the 2008 financial crisis, said this tendency will be “rate agnostic,” meaning the supply-demand change will happen regardless of market rates since “older people have lower mortgage rates, if any mortgage at all.”

As of 2022, 69 million baby boomers made up 38% of homeowners. They seem to have made it difficult for millennials to become homeowners. The survey warned that boomers' homeownership rate will fall as they age, especially in their late 70s, if they follow past generations. As boomers reach their 90s, Freddie Mac forecasted that baby boomer households will decline from 32 million in 2022 to 23 million in 2035. “Per this estimate, there will be 9.2 million fewer boomer homeowner households by 2035,” the research added.

Freddie Mac predicts the steady decrease will accelerate in the following decade, when most boomers will be in their 70s and 80s. By 2028, Freddie Mac expects only 2.7 million houses freed up.

In this way, the silver tsunami is more like a tide, with a progressive drop over several years, said Freddie Mac. In the coming years, more individuals will age out of homeownership, but it will be an increasing trend rather than a disruptive surge.

A catch may exist. Longer life spans and better health for elderly persons have enhanced homeownership retention. John Burns Research and Consulting estimates that the average baby boomer will live 21 years further. That plus a higher recent retention rate than the historical norm would reduce boomer household drop by one million, the research stated.

Unlike Whitney, most economists agree with Freddie Mac that the “silver tsunami” won’t be that big. Mark Fleming, chief economist of Fortune 500 financial services business First American, told Fortune that boomers won't totally downsize for a decade or more. They usually start doing so around 80. His term is “aging out process.” Fleming says the baby boomer generation, born between the mid-1940s and mid-1960s, is still not ready to leave their homes.

Baby boomers are home longer. They have more. More healthy. They last longer than previous generations, Fleming added. “The large baby boomer generation will age out. But not yet.” A Thursday Fannie Mae research revealed baby boomers are happy aging in place. Fannie Mae found that just 17% of elderly homeowners sold their house during retirement due to financial and emotional ties. Additionally, 62% of respondents want to pass their home to their heirs.

The silver tsunami, or tide, won't make homes affordable for younger generations since property prices are already high. Baby boomers may relocate into retirement communities or choose smaller houses like younger generations. That might keep millennials and younger generations out and raise starter house costs. In a bidding battle, baby boomers will prevail because they have more cash.

“There’s a big overlap between select baby boomers and select millennials,” Zonda chief economist Ali Wolf told Fortune. “The key difference here is that the baby boomer will likely be able to tap home equity by selling their existing home, allowing them to make a more compelling offer than the millennials, especially if they are still renting.”

Check out source article here

one of the most common questions I get when I'm at events is what does my team look like. Who makes up my team, and what do they do. When you're starting off, you do everything. You cover all positions and basically have to be responsible from A-Z in your company.

Eventually as you grow and start doing more deals you hopefully will start assembling A-Team. But without any idea or guidance, how do you know exactly who to hire and what they should be doing for you?

The download for this week answers that question. It's an example org chart from my company that I created a few years back to help people understand what kind of a team they should be moving toward.

Now let me just say, this may not be your exact team. This was my exact team a few years ago and it has evolved a bit. But this will give you a great idea, a starting point at least , of the different positions inside of a wholesaling company that's doing over 7 figures the profit every year.

If you have any questions or if something on this org chart doesn't make sense please go ahead and respond to this post or make a comment and let me know what you think.

Here is the download link!

Enjoy

DISCLAIMER: This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.