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This question is about outsourcing. “Dear Joe, I’m working all the time. I love what I’m doing so I don’t mean to complain and I’m making three times as much every month as I used to make in my job – just over broke – job, but I got into this business so I would have more time with my family and to do the things I wanted to in my life. I think the key is to hire some help. What jobs should I outsource first and why?”
The first job that you want to outsource is an admin person. Just get somebody who charges you eight bucks an hour, ten bucks an hour, that’ll run your Automarketer for you to make sure that leads are coming in. Once you contact the leads you can send that email to your admin person and they can log it into the CRM or they can put the deal together and make sure it goes to the next step and do all the paperwork and file all the stuff for you. So the admin person’s the first person you need. Typically it’s going to cost you, I’m going to say $50 for that. You’re going to pay another $50 for your boots on the ground, you’re going to pay another, $200 or $300 for your seller finder and maybe $100, $200 for your buyer finder, so you’ve got $400 or $500, $600 out of every deal that’ll go to pay all these outsourced people.
Plus you’ve got your infrastructure costs, average you $200, $300 a month. So if you’re making $5,000 per deal, that’s a pretty good return on that investment. If you’re not putting deals together, if you don’t know how to talk to sellers and put deal together, then outsourcing this stuff at the beginning doesn’t necessarily make much sense because you’re going to spend a lot of money outsourcing.
Everything that I do right now is financed by profits, not by going out and getting a loan to build a business. I don’t do loans. So, if you build your business properly, if you don’t over leverage it’ll make it easier for you.
The next person is going to be working with your buyers, someone who talks to your buyers, and you’re going to have them call all the buyers that come in, make sure they get into the properties. You might be the one at that point to call them back and find out how much they’ve got for a down payment and try to negotiate for a larger down payment or a higher lease option fee. Then after that, you’re going to outsource the sellers. And once you learn how to outsource the sellers, you’re going to do that in a two-step process, too. It’s going to take them weeks or months and you may have to go through three, four, five, six, seven people before you find one that can do the job and will do it consistently. But you can learn how to fire people quickly, as quickly as you hire them. If, on the second day, they’re not making the calls they’re supposed to be making, then you need to get rid of them immediately. Don’t wait around for them to get better, don’t take their excuses, none of that stuff. Because what they’re showing you up front is that they’re not going to be reliable. And then bring somebody else in.
When you’re hiring people, have two or three people in mind and then say, okay, I’m not going to be able to tell you for another couple of days and then you try the first person, if he works out, great, you know, then you tell the people I’m not going to hire anybody else for now, but if you’re interested I can hire you maybe in the future. Eventually your phone people will quit until you find somebody that is getting good compensation, that’s making good money, is happy at what they’re doing and actually enjoys the work. Don’t put too many pressures on them about oh, you’ve got to call from ten to eleven. It doesn’t matter when they call. As long as they call that lead back as soon as they can, on that day, sometime between nine in the morning and eight at night, that’s really all I care about.
To read this transcript and more of Joe Crump’s articles, click here: joecrumpblog.com/what-jobs-should-i-outsource-in-my-business-first-and-why/