Mastery

4 minutes
Delegation via notes.

The Path Toward Real Estate Success: Delegation

Joshua Smith Jul 10th, 2020
Joshua Smith
Making Money in Real Estate
Delegation

You can only do so much. And there are only so many hours in a day. So, as a realtor, you must delegate.

A quick reminder from the Making Money blog post, realtors earn money by: #1: lead gen/lead follow-up, #2: appointment conductions, and #3: negotiating contracts.

To begin delegating, make a list of everything you do regularly that is not part of these three money making activities. This list will give you the activities you need to delegate.

ABSOLUTELY CRITICAL NOTE: As you are growing your real estate business, you will need to do everything for some time, as you will not likely have the funds to pay for additional help. Also, you want to do everything initially so you can learn how things are done and how you like them done, so, when you do delegate out these tasks, you can train your staff properly.

Before you start spending money, make sure everything you are doing is necessary. If you are doing a lot of tasks that are not getting results, you may, of course, just want to eliminate those tasks. Also, see if you can delegate regular tasks to your vendor partners. For example, you may see if your lender has someone on staff who can do your flyer design for you. I only like to spend money when it is necessary, so see what you can eliminate and delegate out for free. 

IMPORTANT FINANCIAL TIP: Before hiring a person to help with tasks, you should have at least four consecutive months of consistent closings/commission income, which can pay your business expenses, your personal income, and have enough left over to comfortably pay for some help. I like to see at least four months, because you know it is a trend that can be duplicated and not just a fluky good month or two.

Who do you hire first? Everyone has a different philosophy on this topic, so there is no perfect answer. However, I will give you my opinion based on my own personal experience. 

First: I recommend hiring someone to do your house/personal tasks. For example: landscaper, house cleaner, etc. These tasks can take up a lot of time you could otherwise use for business needs and can be far cheaper than hiring a full-time employee for your business.

Second: Check to see if you can find a licensed realtor who you can pay a per transaction fee to input your listings for you into the MLS, turn in paperwork to your broker, order your listing photos, signpost, lockbox, etc. and also can do all contract to close tasks like ordering inspections, following up with the lender, etc. Fees always differ, but you may find someone who will do the listing input for $150, and the contract to close for $350, give or take.

Third: Eventually, hiring a full-time in-office assistant will make sense. For most realtors, this time comes once most realtor get to four to five closings monthly (again, make sure this progress is consistent). Once you have hired this assistant, take the list we discussed above of all the non-moneymaking activities you do in your business, and assign those to your new assistant.

IMPORTANT SIDE NOTE: When hiring an employee, make sure you know your true costs, which can be more than just salary. For example: payroll fees, taxes, benefits, etc. By having all of this information, you will be fully prepared and can budget accordingly.

Once you have your assistant trained and dialed in, your business will continue to grow, and you can eventually add more assistants and even agents to work your overflow of leads, etc., but the above is a great place to start!

One last import piece of wisdom: “Your Trust Will Always Equal Your Capacity!” Or to continue growing your business, you eventually will need to delegate tasks and trust others to take these tasks on. If you don’t, you will find your business will hit a level where it can’t grow any further.

Delegation can be a scary process, but if you have your processes documented and your systems in place, success will be unavoidable.

Thanks for reading!  

Joshua Smith, Realtor/Mentor/Entrepreneur

-Voted 30th Top Realtor in America by The Wall Street Journal

-Over 5,000 Homes Sold & Currently Selling More Than 1 Home Daily

2 minutes
Meeting around a laptop and some coffee.

The Path Toward Real Estate Success: Double Your Business

Joshua Smith Jun 5th, 2020
Joshua Smith
Making Money in Real Estate
Mastery

Every day I speak to realtors who want to take their business to the next level and double, if not triple, their real estate businesses.

In most cases, they are looking to add more or new lead generation methods (more on effective lead generation here). While a great idea, that is not the place to start.

Success is not in addition but in elimination. That’s where you need to start.

Step # 1: Analyze all of your closings for the past twelve months. Make a note of the exact lead sources that led to those closings.

Step # 2: Make a list of everything you are currently doing that has not resulted in a closing.

Step # 3: Eliminate all lead generation activities that have not resulted in a closing in the past twelve months.

IMPORTANT NOTE: For lead generation sources you have been using for less than six months, you may not have closings yet, as it can take a full six months to test a new strategy. For such sources, you may not be able use closings as your metric, so instead use appointments set (more on setting appointments here). In most cases, five appointments set = one closing.

Step # 4: By eliminating activities that are not getting results, you may now free up time inside your schedule to double or triple down on the activities that have produced results.

The above steps are the true key to increasing revenue by eliminating what is not working and doing more of what has been proven to work. But keep in mind that if you do not track your results, you can never truly know what is working and what isn’t (more on tracking here).

Honestly, the only time I will add a new lead source is when I know that I can’t do any more of what is already proven to work, which is very rarely the case. I can almost always find ways to squeeze more out of the sources that have already proven themselves.

So spend some time over the next week breaking down all your closings and their sources, eliminating anything not getting results, and focusing on what has been proven.

Thanks for reading!

  Joshua Smith, Realtor/Mentor/Entrepreneur

-Voted 30th Top Realtor in America by The Wall Street Journal

-Over 5,000 Homes Sold & Currently Selling More Than 1 Home Daily

5 minutes
A white house with a big tree with some sun peeking through.

The Path Toward Real Estate Success: Effective Open Houses

Joshua Smith May 29th, 2020
Joshua Smith
Lead Generation
Making Money in Real Estate

I am not sure why, but a lot of realtors believe in the myth that open houses are only for those just entering the business.

The fact is that open houses are one of the most effective ways to generate business in real estate.

But why are open houses so effective?

You have potential buyers and sellers coming to you.

Those buyers and sellers have already identified where they want to live, and/or the fact they want to sell.

You are instantly face to face, and have the ability to interview for the job right there.

But you can’t just put up a sign and hold an effective open house. Here’s what must be done to develop an effective open house strategy:

#1: Identify an area, and be consistent with it. Think of open houses as your “storefront” where you get to set up and meet potential buyer/seller clients in the area you want to work. Most realtors do open houses all over the place, which is a mistake. Instead, identify an area in which you want to build up market share, and then hold consistent open houses in that area. Current homeowners then begin to see your open house signs set up every weekend there, which increases consumer confidence as potential clients are seeing your name on a consistent basis. So pick an area and start to build your brand.

#2: Signage matters. Before you dive into this aspect or your open house strategy, make sure you check with your local government to see if there are any sign restrictions. If you do not have any sign restrictions, putting out 30+ signs will greatly help increase your brand awareness and drive more traffic to your open house. If you are located in an area with a sign restriction, do not get discouraged, as all your competition (other realtors) are held by the same restriction.

#3: Pre-market the open house. Run a targeted Facebook ad for the area for three days leading up to the open house. Create a neighborhood open house flyer, and hand deliver/door knock the closest 400 homes to your open house.

#4: Set up properly. On top of the 30+ signs placed around the neighborhood, also, purchase a couple tall, attention-grabbing open house flags to put in front of the property. You will get a lot of attention from people currently living in the area, but that is good. When they think of selling, you want to be the first person that pops up in their mind.

#5: Also, put a sign on the door that says, “Per Sellers Request Please Sign In,” and also place this sign on a table just inside the door and have your “Guest Registration Sign In Sheets” at the same table. And don’t forget to include a nice property flyer with all the property information, as well as the different mortgage payment options.

#6: The Tour. Once visitors have signed in, give a thorough tour. You can’t, of course, give a tour to everyone if the open house is really busy, but focus on giving a great tour to those you are able. Ask engaging questions where you can connect with them and identify their goals. Example questions: “What is it about the area you like so much?”, “Do you work near by?”, etc.

#7: Ask for an appointment at the end of the tour. Say something like: “So, what do you think about the property? Does it meet your needs, or are you looking for something different?” (Most will say they are looking for something different as ½ of 1% of homes sell from that open house). In that case follow up with something like: “Great, just so you know, I am not here to just sell you on this house. I am here to identify what your goals and needs are, and if this house meets those, then great, and if not, to identify what your goals and needs are, and then to find you exactly what you are looking for. Based on what you have told me what you are looking for, I know of several homes which I am confident will meet your criteria. I get out of here at 4pm today, and can meet you then to go show you those other homes. Is that something you would like to set up?” Most will not want to set an appointment right there, but if you ask enough people, you will absolutely get some that say yes. Read more about leading from a place of contribution to turn more conversations into appointments here.

#8: Put everyone into your database, and follow up. Read more on effective lead follow-up here.

If you plan, setup, and execute correctly on your open houses, you will absolutely get great results, so follow these steps, and go dominate your real estate business with open houses!

Thanks for reading!

  Joshua Smith, Realtor/Mentor/Entrepreneur

-Voted 30th Top Realtor in America by The Wall Street Journal

-Over 5,000 Homes Sold & Currently Selling More Than 1 Home Daily

5 minutes
Meeting around a laptop.

The Path Toward Real Estate Success: Facebook Lead Generation

Joshua Smith Jun 19th, 2020
Marketing
Marketing
Mastery

The average Facebook lead is 6.7 months out from working with a realtor.

But that’s true for all online leads and not just Facebook. You will, of course, get some leads ready to move ASAP, but those will be the exception. Consider Facebook leads as a great way to build up your pipeline. And please keep in mind that you are wasting your time and money with online marketing unless you have your lead follow up strategy dialed in to ensure you convert the highest amount of online/Facebook leads as possible. More on follow-up here.

Steps To Be Successful with Facebook Lead Generation:

#1: You need a website which allows potential buyers to run their home searches from your site and allows potential sellers to request home valuation reports.

#2: Your website must have a lead capture tool. For best results with buyer leads, you want a pop up forced lead registration box that will show up on the first website click. For sellers, you will need a lead capture tool that requires a property address along with name, email, and, potentially, phone number.

#3: The ability to install a Facebook Lead Conversion Pixel on your website, which will allow you to track your true cost per lead and see who is converting at the best rate. For example, you can see if it is men or women, age range, desktop/mobile device, etc. The pixel is very important!

#5: Once your site and pixel are set up, you need to make sure your potentials leads land on the right page, which is always the page your ad promises. As an example, if you are running an ad for: “Single Family Detached Homes in XYZ City with Swimming Pools”, the page they land on must feature single-family detached homes in XYZ city with swimming pools. Once you create the landing page search on your site, copy that URL link and take it to Facebook.

#6: Understand the picture is 50% + of the success of the ad. You have two seconds or less to capture your targeted audience’s attention while they are scrolling on Facebook. The picture is always the best way to get their attention.

#7: From your business page Ads Manager, choose “Conversions” as your ad type. At the end of the day, all that matters is your cost per lead, which will allow you to know/track your true cost per closing, AKA ROI, on this lead source.

#8: Run multiple “Ad Sets”, AKA split test. For example, run an ad to: Women Mobile Newsfeed, Women Desktop Newsfeed, Men Mobile Newsfeed, and Men Mobile Desktop. So you can get more targeted with “Interest/Behaviors” if you choose to. 

#9: Select your image, and then add your URL, along with your “Headline” and “Text”. Facebook is backwards, as they have the “Headline” below the image, and the text above the image. Remember, the picture catches attention. Then, the headline and text exists to create curiosity, so the potential lead will take action, and click on your ad.

#10: Select a “Call To Action Button”. You can’t go wrong with choosing the “Learn More” button.

#11: Now, this is a more advanced technique, but you can go into “Power Editor”, and re-create the other Ad Sets as discussed in step #9. You can also test numerous photos inside Power Editor. Quick Tip with Power Editor: You must use Google Chrome to operate Power Editor.

#12: Start small and scale up slowly. I recommend starting at $5 per day, per ad set. Let the ad run for a couple days, and then shut off the non-performing ads, and then slowly scale up the performing ad sets. Always scale up slowly.  25% every few days is a good rule of thumb.

#13: If your Facebook Pixel is installed on your website, make sure to use/watch the “Demographics Tool” inside Ads Manager, which will allow you to see what age group, etc. is getting you the best cost per lead, and you can make adjustments accordingly.

If you are new to Facebook Ads, I know this is a lot of info and can be confusing, but it is well worth taking the time to learn. The great news is, there is a ton of free “How To” content on YouTube. Now that you know the important steps to be successful with your Facebook Lead Generation, you can start doing research, if needed, to dial in each step.

Facebook continues to grow and is not going anywhere any time soon. It continues to be more and more effective for Real Estate Lead Generation, and can help you massively grow your Real Estate Business!

Thanks for reading!

  Joshua Smith, Realtor/Mentor/Entrepreneur

-Voted 30th Top Realtor in America by The Wall Street Journal

-Over 5,000 Homes Sold & Currently Selling More Than 1 Home Daily

2 minutes
Woman writing in a notebook while at a computer.

The Path Toward Real Estate Success: Mastery

Joshua Smith May 1st, 2020
Joshua Smith
Making Money in Real Estate
Real Estate Advice

Mastery happens when eyeballs are not on you. It happens behind closed doors. It happens with extreme focus. 

You will not master your craft by simply working each and every day inside your real estate business.

Mastery happens after you put in a long work day, and you go home, and then practice your presentations and scripts over and over and over.

You will never go on enough listing presentations daily, weekly, or monthly to truly master the craft of your listing presentation. So you must practice it over and over. After a long work day, once you get home, after you spent some time with the family.

While your competition chooses to watch TV and relax, you choose to practice your listing presentation every single night for two hours.

This is how mastery takes place.

And here is the really cool part about mastery: So few people focus on it, so, once you do, you really have no competition!

Some absolutely critical items you MUST master inside your real estate business:

-Lead Generation

-Lead Follow Up

-Your Appointment Setting Scripts

-Your Buyer Presentation

-Your Listing Presentation

-Your Objection Handling Scripts

-Your Closing Scripts

Of course that’s not everything you must know about real estate, but the above is a list of some absolutely essential items you must focus on mastering inside your real estate business if you want to create success.

So start working on mastery and start creating MASSIVE SUCCESS!

Thanks for reading!

  Joshua Smith, Realtor/Mentor/Entrepreneur

-Voted 30th Top Realtor in America by The Wall Street Journal

-Over 5,000 Homes Sold & Currently Selling More Than 1 Home Daily

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