Last week I introduced you to why you want to build, own and control systems.
This week I’ll tell you about the systems you need to build to make your real estate investing business really rock… get more leads than you ever thought possible and keep cashflow streaming in the door. (Multiple doors if you do multi-family properties.)
But what if you’re new to real estate investing?
What if you’ve never done a deal before in your life?
What if you are just thinking about jumping into the pool and aren’t sure what to do next or what you’ll need to succeed?
New or seasoned, you need systems and I’m here to help.
Truth is that even when you’re just starting out you need a few basic systems:
- Lead-generation system – You want to gather your lists of buyers, sellers and investors, which means you need a way to keep them coming. (I’ll dive deeper into this part in a minute. Hang tight.)
- Lead-management system – What are you going to do with all the leads when you’ve learned how to get them to keep coming? Whether it’s a paper filing system or you put everything in spreadsheets, you need to figure out what works best for you and then do that consistently. Like the old saying goes, success is in the follow-up. But if you don’t have a good system in place for managing your leads, how can you do a sufficient job following up with them?
- Accounting system – I cannot stress just how important keeping records is to your business. Come tax time you need to account for your income-earning activities. (This is something I learned from an eye-opening real-world experience after my first year as a real estate investor.)
- Systems for building your team and expanding your business – At first it will be you wearing all the hats and doing all the tasks. However, you need to shift your mindset to allow others to help you. They are willing to do the parts of your workload that aren’t the real income-producing activities that you need to be focusing on. That’s why you should always be in interview mode, because you want to ask the right questions of those individuals you meet who also meet the criteria for the jobs at hand in your real estate investing business. Yep, that’s a system, and unless you intend to stay small you’re gonna need to bring other people onto your team so you can expand.
I talk about how wealth is a team sport in an early episode of my Cash Flow Diary podcast. Check it out…
So… now let’s talk about the good stuff…
How do you create a system to generate more leads that you can handle?
The very first thing I tell anyone wanting to generate leads is to look for problems to solve inside real estate transactions!
Understand what I just said…
You are NOT looking for properties; you are looking for problems you can solve in your real estate deals.
You must become the problem-solver by learning how to talk to people.
These “people” also happen to be buyers, sellers and investors. I promise that individuals in each group have problems you can solve.
But keep your system simple.
What I do even today and, yes, even at this level, is to invite people to play the Cashflow 101 board game with me. That’s how you find problems to solve! You also find problems to solve in everyday life when you’re buying groceries, doing some computer work at Starbucks, walking your dog in your neighbor… literally anywhere you travel you will find problems to solve. (Because you are talking to people.)
Yes… it’s that simple.
So what does that conversation look like?
Glad you asked…
Let’s say I’m at a Starbucks near my home. (That’s my office most days.) Someone strikes up a conversation with me because I have a cool book out on the table, like mine, for example…
Or I strike up a conversation with a stranger for any reason. (Yes, I expect you to talk to lots of strangers.)
I’m going to get to ask them my favorite question: “Have you ever considered getting involved in real estate investing? Then I stand back and let them talk. They will tell me if they have, if they haven’t and their experiences or lack thereof.
Then, no matter what they say, I’m going to ask one follow-up questions “Really, why?”
They are going to tell me, and I’m going to simply chat with them.
In the end I’m going to invite them to my next Cashflow game and I’m going to get their information and follow up with them.
A lot of times I’ll simply ask them if it makes any sense for us to sit down to discuss this topic further. The great news is that usually the answer is yes, and I get to book that appointment right then and there.
That’s part of MY system!
If I went a little too fast, I’ll slow it down now. Want to know exactly how I have always gotten my deals done? I do it in seven steps.
But, shhhhh… This is my “super-secret” system.
Here’s what you want to do:
1. Know your customer! Answer the question, “Whom will I serve?” You have to know your customer well because they are your buyers, sellers and the people with the money (a.k.a., investors). Understanding what they want and if their desires are in alignment with your “Investor Identity” will help you in more ways than you can count in real estate investing. To learn more about this, download podcast episode #23. It will add to your knowledge base in this area.
2. Build your customer database. The absolute number-one thing you need to do is to learn how to build your customer database of your customer. If you don’t know how to do it, I suggest you watch this free 10 minute video training . Also, I devote a lot of time talking about building your database. So do my guests on my podcast. (If you want to hear an interesting episode on this topic, pick #154. It’s about inbound marketing!)
3. Gather 200 individuals in each category of in the beginning… and with that you can begin to build your empire. You will keep adding to this database. I can’t stress how important this is. People ask me if there’s a magic number. This isn’t magic. And maybe it doesn’t need to be 200, but it’s a good number and it’s how I built my database. I’m not telling you to do anything I haven’t done or don’t continue to do today! I talk about this in episode #8 of my podcast, so be sure to check it out when you have an hour!
4. Become a local expert by educating (to dominate). One great way to do this is to play and teach others to play the Cashflow 101 game! But there are other ways to educate, like creating e-books, YouTube videos, blog pieces, cheat sheets, checklists, a cool podcast, etc. Once you have educated other people, they’ll know who they can trust with their investment dollars! I’ve raised a great deal of private capital playing and teaching others to play the Cashflow 101 game… and educating others about real estate investing through various means. However, the #1 tool is this game. Developed by Robert Kiyosaki and the Rich Dad gang, it shows people that what they achieve on the board they can achieve in real life. That’s where your education comes in. Learn the game, play the game, teach others to do the same. I talk about this specifically in episode #14 of my podcast.
5. Build your team. Guess where you can meet these individuals? Playing Cashflow. (You want to see with your own eyes the magic of playing this game? I have a video inside our Cashflow Core Membership. Give it a try for a buck.
6. Spread your message. Today this is easier than ever before, cuz we carry smart little computers in our pockets. (Yes, it’s our phones.) But remember that while digital marketing becomes more and more important as your business expands, you’re still going to have to get yourself out in the world and talk to as many people possible. Once again, you educate to dominate, and nothing beats the one-on-one conversation. You meet people, you set appointments right then and there to speak again, and then you educate, educate, educate. While you do this you’re also participating in digital marketing efforts. I talk a whole lot about this in a very recent episode of my podcast. Check it out if you haven’t already!
7. Shut up and listen. Apply the 70/30 Rule. That means you listen 70% of the time. The rest of the time you are asking good questions. You might be surprised by what you can obtain when you ask. (You know what the Good Book says, right? “Ask and you shall receive.”)
You do these 7 steps over and over again… and what you’ll have is called a SYSTEM. Use this system and you will generate lots of referrals, too. And that’s the way you want it. From your initial contact with a stranger to setting the appointment to walking them through why they want to work with you (because you’ve educated them) to their working with you (or not), this all leads to them referring others to you for real estate investing.
Build it. Own it. Control it.
You want the secret to success in real estate investing?
I just gave it to you… lock, stock and barrel!
Like information like this? Great! I have lots more where this came from, and it is yours for the taking. Yes, it costs a small monthly fee, but if you can find better education for so little of an investment, well, I be shocked.