Podcast Summary
Importance of a strong sales approach in real estate investing: Learn effective seller engagement, rapport building, and expectation setting from a successful sales trainer and real estate entrepreneur. Take action and develop abilities for increased success in real estate market.
Learning from this episode of the Bigger Pockets Podcast is the importance of developing a strong sales approach in real estate investing, backed by both art and science. Brandon Turner and David Greene discussed their experiences and insights from interviewing Steve, a successful sales trainer and real estate entrepreneur. Steve shared his expertise on effectively engaging motivated sellers, building rapport, and setting expectations. Additionally, they touched on hiring practices and qualifying questions. David Green provided a quick tip, emphasizing the importance of taking action and developing one's abilities, no matter the current situation. By focusing on these strategies, investors can increase their chances of success in the real estate market.
Exploring Minimal-Cost Real Estate Investing Options: Leverage technology for off-market deals, consider no-money-down rental properties, or invest in private real estate funds for passive income.
Technology and innovative financing options are making it easier than ever to get started in real estate investing with minimal upfront costs. DealMachine offers an unlimited database of contact information for off-market deals, while Rent to Retirement allows investors to purchase new construction turnkey rental properties with no money down. Additionally, investing in a private real estate fund like PPR Capital Management provides passive income without the hassle of property management. Steve Trang's story shows that even if you're not currently in a position to invest, gaining knowledge and experience in the industry can lead to opportunities down the line. Whether it's becoming a real estate agent or starting small with house hacking, there are various paths to building wealth in real estate.
Consider becoming a real estate agent if you're sales-minded, trustworthy, and willing to take action: Being a real estate agent can be a good career choice for those with a sales mindset, willing to learn, and view themselves as salespeople.
Becoming a real estate agent may not be the best choice for everyone, but it can be a viable option for those who are willing to take consistent action, have a sales mindset, and come across as trustworthy. Extroverts are not necessarily the best fit for real estate sales, as the most important trait is the ability to take action and succeed through failure. Agents should view themselves as salespeople, as they will be dealing with objections and people's fears. Additionally, those who are currently in jobs where they feel capped in their earning potential or enjoy the real estate industry but don't want to be investors may find success as an agent. It's important to remember that being an agent is just a different job, and like any other job, it requires dedication and a willingness to learn.
The Importance of Resilience in Entrepreneurship: Despite natural confidence, entrepreneurship comes with challenges. The 2008 recession tested Steve's resilience, leading him to adapt, innovate, and ultimately succeed through creativity and determination.
Entrepreneurship comes with its fair share of challenges and setbacks, even for those with irrational confidence. Steve's story serves as a reminder of the 2008 recession's impact on individuals and the importance of resilience. Despite his natural self-assurance, Steve faced financial difficulties, including credit card debt and foreclosures. This experience tested his confidence and forced him to dig deeper to succeed in real estate. The recession also marked a turning point for Steve, as he rediscovered investing and used direct response marketing to secure listings. This ultimately led him to buy and sell houses through cash offers and contracts. Steve's story highlights the importance of fortitude, adaptability, and creativity in overcoming adversity and achieving success.
Wholesaling in Real Estate: A Middleman's Game: Wholesaling is a profitable real estate strategy where investors buy contracts from sellers and sell to buyers, pocketing the difference. Be transparent, ethical, and knowledgeable to maintain a good reputation.
Wholesaling in real estate is a method of arbitrage where an investor buys a property contract from a seller and sells it to another buyer, pocketing the difference. It can generate significant income quickly, but it requires expertise and trustworthiness. Wholesalers act as middlemen, never closing on the property or taking title. However, they can cause distress when they fail to perform on contracts, instilling false hope in sellers. It's essential to understand the legalities and potential risks in wholesaling, as well as the varying regulations in different states. Wholesaling can be lucrative, but it's crucial to be transparent, ethical, and knowledgeable to maintain a good reputation in the industry.
Adapting to changing markets and surrounding yourself with success: Adapt to changing markets, surround yourself with motivated individuals, and take action to keep moving forward.
Successful businesses and individuals adapt to changing markets and surround themselves with motivated and successful partners. The speaker shared his experience of shifting from pay-per-click advertising to direct mail and TV commercials due to market saturation. He emphasized the importance of having a business partner, Max, who is a "grinder" and pushes the business forward. He also mentioned that success is about moving forward, even if it's in the wrong direction, and being willing to change course as needed. The speaker's advice for those looking to work with him or anyone else is to find someone with a strong drive and motivation, and be willing to learn and follow their lead. He also emphasized the importance of momentum and taking action, even if you're not exactly sure where you're going. Overall, the key takeaway is to be adaptable, surround yourself with motivated individuals, and take action to keep moving forward.
Consistency is key in all areas of life: Making a commitment to be consistent in daily tasks and larger commitments can lead to success in real estate investing and personal life. Use tools like PropStream to find quality deals and maintain work-life balance through delegation and family values.
Consistency is key in all areas of life, from small daily tasks to larger commitments. The speaker emphasizes that everyone can make the decision to be someone who follows through on their words and actions, even in the smallest things. In the realm of real estate investing, finding quality deals can be challenging with rising home prices and inventory levels dipping. PropStream, a leading real estate data provider, offers solutions to help investors find motivated sellers and make informed decisions with accurate comps. As for personal and business life, the speaker values consistency, family, and delegation to trusted team members to ensure success and work-life balance.
Effective communication and organization for entrepreneurial success: Regular meetings align teams, patience and understanding essential, hiring right people crucial for business success
Effective communication and organization are crucial for entrepreneurial success. The visionary leader sets the direction, but the integrators are responsible for executing the vision. Regular, efficient meetings are essential for alignment and progress. However, it's important to remember that people are imperfect and life happens, so patience and understanding are necessary. Hiring the right people is a challenge, but ultimately, the rubber hits the road when they're put to the test. For those seeking to work for a visionary entrepreneur, it's essential to understand the business model and culture, and to demonstrate a good fit. Just as a machine requires the right parts to function, a business needs the right people in the right roles. It's not about being negative or labeling someone as a bad person; it's about ensuring that each part contributes to the overall success of the machine.
Effective Hiring Strategies for Building a Successful Real Estate Team: Use job application forms to screen out unsuitable candidates, predictive index tests to assess personality traits and work style, interviewing techniques like the Who Model, and field testing like phone screening to find the best fit for your real estate business.
Building a successful real estate business requires having the right team in place. It's not enough to have mostly good employees or partners; you need people who are fully committed and aligned with your business values. To find these individuals, it's essential to have a clear understanding of what you're looking for in a candidate and to use effective hiring tools and processes. One effective strategy is to use a job application form that screens out candidates who don't meet your expectations. For example, you can include questions about attendance, meeting attendance, and prospecting requirements. If a candidate doesn't meet these requirements, they're not invited for an interview. Another tool is a predictive index test, which helps assess a candidate's personality traits and work style. This can provide valuable insights into whether a candidate is a good fit for your team. Interviewing techniques, such as the Who Model, can also help you assess a candidate's fit and potential. And finally, field testing, such as phone screening, can give you a better sense of a candidate's abilities and work ethic before making an offer. By using these strategies, you can save time and resources by weeding out unsuitable candidates early on and focusing on those who are most likely to be a good fit for your business. Ultimately, having the right team in place is crucial for building a successful real estate business.
Create a connection with the prospect: Use the prospect's name, avoid negative language, and focus on building rapport to increase the chances of a productive conversation in real estate prospecting
Effective prospecting in real estate, particularly through cold calling, requires a different approach than traditional sales techniques. Instead of asking scripted questions like "Is this a good time?" or "How are you doing today?", it's important to create a pattern interrupt by using the prospect's name and making a genuine connection. This approach can help build rapport and increase the likelihood of having a productive conversation. Additionally, avoiding negative language and focusing on the possibility of a sale can help improve the overall prospecting experience for both parties. By following these strategies, new real estate investors can increase their chances of success in their prospecting efforts.
Reducing rejection in sales and partnerships: Indirect approaches, effective use of silence, and a positive attitude towards rejection can help reduce awkwardness and increase conversions in sales and partnerships.
Adopting a different approach in initiating conversations, especially during sales or partnership seeking, can significantly reduce the feeling of rejection and awkwardness. Instead of directly asking if someone is interested in selling or investing, try asking indirectly or engaging them in a conversation that allows them to express their thoughts freely. This not only makes the interaction less awkward but also allows you to gather more information and build rapport. Another important tip is to use awkward silences effectively. Instead of interrupting with "but," use "and" to encourage the other person to continue talking and finish their thoughts. This not only makes the conversation more productive but also makes the other person feel heard and appreciated. Moreover, remember that awkwardness is a muscle that needs to be developed. It may feel uncomfortable at first, but with practice, it will become more natural. Lastly, when dealing with rejection, don't take it personally. Instead, learn from each interaction and use it as an opportunity to improve your approach. In summary, indirect approaches, effective use of silence, and a positive attitude towards rejection are essential techniques for increasing conversions and reducing the sting of rejection in sales and partnership seeking.
Reframing rejection as a necessary step towards success: Focus on the value of each interaction and eventual success, rather than dwelling on rejections. Implement a system to track and celebrate progress, and maintain a positive attitude towards rejection as a necessary part of the process.
Shifting your mindset towards viewing rejection as a necessary step towards success can significantly improve your approach to cold calling and sales. The speaker emphasizes the importance of focusing on the value of each interaction and the eventual success that comes from consistent effort, rather than dwelling on the rejections. He also suggests implementing a system to track and celebrate progress, such as setting goals for the number of calls or conversations needed to secure a deal, and rewarding the team member who receives the most rejections. By reframing rejection as a necessary part of the process, rather than a personal failure, you can maintain a positive attitude and stay motivated to continue making calls and pursuing opportunities.
Maximizing Success in Cold Calling for Real Estate Investing: Understand your goals, use quality data, write a compelling script, start with a friendly greeting, acknowledge potential objections, and persist through rejections.
To be successful in cold calling for real estate investing, it's essential to have a clear understanding of what you want and then take action. The best data for potential leads can be obtained directly from the county, but it's the activity that generates income. When purchasing lists from service providers like PropStream or BatchLeads, ensure you're not skimping on the rest of the process. A well-written script can serve as a backbone, but the psychology and process of sales are crucial. Start with a friendly greeting, acknowledge that it might be a bad time, and express interest in their property. Improvisation can be used to build rapport and adapt to the conversation. However, be cautious of dead or incorrect numbers, and consider hiring a VA to pre-screen the list before cold calling. Ultimately, success in cold calling requires a combination of a solid strategy, effective communication, and persistence.
Understanding the psychology behind sales: Effective sales conversations require identifying pain points, setting proper expectations, and using emotional understanding to build rapport.
Sales is a skill that can be learned and developed, rather than an innate ability. While scripts and frameworks can provide a foundation, true rapport and effective sales conversations require an understanding of the psychology behind sales. This includes identifying pain points, drawing a clear path forward, and setting proper expectations. The use of negative reinforcement, or the removal of adverse stimuli, can motivate individuals to seek solutions to their pain points. Additionally, it's important to approach sales conversations with an emotional understanding of the customer's situation, rather than focusing solely on intellectual discussions of numbers and facts. By understanding these principles, anyone can improve their sales abilities.
Building trust and understanding unique situations: Learn from past experiences, make informed decisions, and build trust to effectively help individuals facing financial difficulties.
During the process of helping individuals facing financial difficulties such as foreclosure, it's crucial to build trust and have genuine conversations with them. This approach sets you apart from other solutions and allows you to understand their unique situations better. The speaker also shared his personal experience with owning rental properties and how it has evolved over time due to unexpected tax issues. He emphasized the importance of learning from past experiences and making informed decisions to avoid making the same mistakes. Additionally, he recommended the books "Shift" by Gary Keller for real estate and "The Road Less Stupid" by Keith Cunningham for business, both of which focus on making smart decisions and increasing market share or avoiding dumb mistakes, respectively.
Consistent action and activity are crucial for success in real estate investing: Success in real estate investing relies on consistent action and applying knowledge from resources like BiggerPockets
Consistent action and activity are key to success in real estate investing, as well as in other areas of life. Steve Trang, a successful real estate investor and the host of the Real Estate Disruptors podcast, emphasized this point during a conversation on BiggerPockets Radio. He shared that there's no excuse for not knowing what to do, as resources like BiggerPockets provide ample information. The success of your real estate investing journey is directly proportional to the amount of activity you apply in the right direction. Steve, who is based in Chandler, Arizona, also mentioned that he enjoys spending time with his family despite not being an outdoors person. To learn more about Steve and his work, listeners can check out his podcast, Instagram (@steve.trang), and website (disruptors.com).
