bws module 6 team integration · blitz&wholesaling&system!by!robswanson!...

Blitz Wholesaling System by Rob Swanson Copyright © 2013, Rob Swanson Training Systems, all rights reserved. http://www.reiEducationProducts.com

Module 6 -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Team Integration & Getting 93% Of The Work Done For You

-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Blitz Wholesaling System, Module 6 | by Rob Swanson


DISCLAIMER

This publication is indented to provide accurate and authoritative information with regard to the subject matter covered. The Blitz Wholesaling System is not legal advice and nothing herein should be taken as legal, tax or any professional advice.

Neither the publisher, trainers, employees, owners, contractors, distributors, affiliates, nor anyone associated with this publication and/or presentation are offering legal, tax nor any professional advice or advice requiring a license. You must seek the professional council of your legal and/or tax advisor and/or the professional services of someone duly licensed to provide such advice.

This information product is intended for instructional purposes only. Every effort has been made to reflect the applicable laws as of the date of the publication of this book. However, this is a dynamic field of endeavor in which new laws are enacted; old laws are revised and/or reinterpreted on a continuing basis and where statutes, rulings and case laws are constantly changing.

Purchasers are advised to proceed with the techniques described herein with caution. The author, printers, licensees nor distributors make no warrantees, express or implied about the merchantability or fitness for any particular use of this product.

All rights are reserved under State and Federal Copyright Law. No part of this product may be reprinted, reproduced, paraphrased or quoted in whole or in part by any means without the express written permission of the publisher and author.


NOTE: Before you get started, I want you to know that I’ve added 5 minutes markers for you throughout this module transcription. Each 5 minute marker, which you will see once you start reading below, is denoted by [xx:xx] and represents the location of the training on the corresponding module .MP3 audio or video training which is available online.

That way, if you have a question or aren’t exactly sure what I’m teaching in a certain segment just by reading this module, you can go to either the .MP3 audio or video training and you’ll know where to look for the live training demonstration.

I did this to help you so hopefully you think this is really great and very helpful.

Module 6 Team Integration, Getting 93% Of The Work Done-‐For-‐You

Alright, hey everybody it’s Rob Swanson and welcome back to another training session in the Blitz Wholesaling System. Hey’ today’s training is on team integration and this is module 6 in the Blitz Wholesaling System and I’ll tell you what this has got to be one of the most important trainings that you’re going to get in the entire Blitz Wholesaling System, in all of the modules, in everything, if you will grasp what I’m about to show you…teach you how I run my business, show you what I do, you’re going to save yourself an enormous amount of time, you’re going to make more money and you’re going enjoy life and you’re going to enjoy this business a heck of a lot more.

Because by now if you’ve gotten all the way through module 6 and if you’ve gotten here and you’ve gone through modules 3, 4 and 5 and you’ve taken action and implemented and begun to set things up, you’ve realized that this business is a lot of work, right, any business, let me just tell you this, any business that is worth doing is a lot of work despite what everybody might say about just fast riches, quick, easy cash, all of that is true to a degree, it’s not hard, it’s simple stuff right, the whole business module is really simple but the amount of work and the amount things…you know the moving parts that are going on a regular basis as part of making this whole business work, it is a lot of work and let me just tell you it is absolutely worth scaling your business and getting those profits and making that money and especially when you follow the Blitz Wholesaling System with that, we’re going jump right into this.

Now before I do that I want to show you this quickly: today I’m going to drop this over; this was another property that we just closed on today, in fact I just got the wires back, everything is closed, all the paper work is done and I just got all the closing packages in my email inbox just a few minutes ago, I haven’t even had a chance to go through those to show them up on the screen. I don’t show you this again and I’ve been showing you when we began the process of Blitz Wholesaling together right, I told you that I was going to launch a city right alongside with you and do it along with you and show you the results well this is that city that I launched when I started the Blitz Wholesaling System training and this is our second deal that we closed. I showed you in one of the other either coaching sessions or training sessions one of the other properties that closed, this is the next one that closed so we’ve got another one coming up the following week, next week and so I want you to take a look at this one, we’re not going to get rich off of this deal but hey $2,836.08 net profit is not a bad deal either, is it?

And so for you especially considering that once you understand team integration, you’re going to see how little work I actually did to pull this particular deal off, you can see right here that this is cash


coming back to us: so to seller at closing, we just got a wire $24,044.00. this is the amount of money that we spent when we bought it so we pushed out $15,708.00, I got my earnest money back because once we went to contract and found our buyer I put my earnest money up and we paid $500 in flash cash fees, the cost to the deal and then let’s see our net profit was $2,836.00 now I’m going to tell you the little fast and short story on this particular deal and we’ll get into this story maybe more in depth at Blitz Wholesaling Live coming up. Now what I want you to realize is that we lost about $1,600 on this particular deal, our net profit here should have been about $4,500/$4,600 roughly and unfortunately it didn’t happen that way and I’ll tell you why, I’ll give you the shortened version of it.

We made our offer on the property, we got it “verbally accepted” and then we pushed it immediately out and began to promote it, market it and sell it, well we found our buyer within a 48 hours period of time well by the time we found our buyer the paper work hadn’t been signed and come back, the counter offer hadn’t been fully executed and so we theoretically, verbally under contract but we weren’t under contract with signed paper work, so our buyer.

[5:00]

End up calling his real estate agent who ends up looking into the property who calls the listing agent who figures out that yeah there was a verbally accepted offer but they have nothing in writing yet well we end up, my property wholesaler meets the buyer at the title company to do the paper work and all this stuff and basically gets fully ambushed by the listing agent who’s listing it as an REO deal, this is a bank-‐owned deal, not HUD, not federally made, this one is REO and it’s ambushed, the whole thing is you know crazy, well at the end of the day, our cash buyer was just going to go around us and submit an offer, well ended up pulling out the character card standing there and said you know I didn’t think that’s how you were going to play. I thought you had more character to do business with us long-‐term but if that’s how you’re going to be then so be it. They changed their mind but they came in and negotiated a $1,000 discount on the purchase price, then we also had to pay some closing costs and we had to pay the buyer’s real estate agent and $575 commission, well we didn’t have the property under contract but we already had it resold so we had zero leverage potential. It was a mistake, we made a mistake but we ended up still making about $3,000 on the deal, not a bad thing right? So at the end of the day, we should have made closer to $5,000 on this deal, we made $3,000 on the deal you live and you learn and you move on, all is good, but this deal closed just today as I was doing this training.

So we’re going to get into now talking about team integration and this is the stuff you guys are going to love. So the question to you is: why do, physically you in a 6 hours day, an 8 hour day, a 12 hour day, a 14 hour day, why do what you can manage? Why do what you can manage? Once you have and this is the beautiful part about the Blitz Wholesaling System, the business model is extremely simple, you can have a small team of people working and here’s the other thing, the business model is extremely profitable, see you’re not dealing with an industry where’s there’s maybe a 5%, 6%, 10% margin, 10%, 12%, 15% profit margin, you’re dealing in a business that is virtually a 100% profit margin; not quite because there’s always some costs associated with it, you know you’ve got the cost of your cell phones and computers and Internet access and that kind of thing but you know you got virtually 100% profit


margin and so there’s enough money in these deals to spread the wealth, the share the wealth and to scale up your business, so my question is why do what you can manage?

See you are the brains of the business, you don’t need to be the brawn, I want you to run your business like a business and what do business owners do? Business owners hire people that have great skills in the task that need to be done in order to get that business done, so you are the brains, having gone through this training program and going through the Blitz Wholesaling System, you know what to do, you know how to do it and you know all the little tricks of the trade. Sure you might have to review it a couple times, you might have to take some notes, you might have to work it but you are the brains of your business so I want you to start running your business like a business rather than jumping in and being the brawns inside your business.

See your business is the vehicle and your team is the gasoline, your team is what is going to make this thing run. If you run out of team, you run out of gasoline and your vehicle stops and I’ll tell you why your vehicle stops it’s because as soon things begin to bottle neck in your business through you, I’m the same way, I’m just like you guys. As soon as things bottle neck through me, things start to crash and burn because I can’t do everything, I don’t want to do everything and so I like to work hard just like you do but you know what? Sometimes I’m just going to be off, I’m going to be off playing or something like that or something else or hanging out with my kids or family or whatever and something’s going to fall through the cracks or something’s going to happen. So I can’t be the bottle neck in my team so you’ve got to have a team to help you scale this business up.

Share the wealth, this is an incredibly profitable business, make this a no brainer for people that want to jump on board. See it might be for you and I to understand but you and I are probably wired very much alike. I know I am wired very entrepreneurially, I want to be in charge, I want to be the boss, but there are a lot people

[10:00]

that are not wired in the same way, a lot of people want to work in environments where the systems are set up, the structure is there, somebody else is helping provide them in the right direction and yet at the same time they have the self-‐motivation and the self-‐drive to make things happen. Those are the people that you’re going to be working with, that you’re going to help manage, that are going to be self-‐motivated so you’re management is pretty easy, it’s not going to be that hard and you’re going to set a system in your business to share the wealth and I’m going to show you exactly how to do that.

One hundred percent of a little is not as good as 50% of a lot and especially when you begin to factor in the amount of time it takes you personally to get 100%. If keep 100% it means that you’re doing 100% of the work and I would rather see you keep about 50% and do about 50%, see that, see the ratio? That’s what we’re talking about in the Blitz Wholesaling team integration, it’s all about building a team that’s going to do 98% of the work for you, sharing the wealth and you’re going to get a big piece of a lot, versus a bigger piece of a little, makes sense, this is the only way to scale your business, you cannot scale this business doing it alone, you have to build a team and I’m going to show you how to do it.


So, Blitz Wholesaling, here are your goals, in order to have the drive and the desire to build a team and to put this into place, you have to have some goals in place, if your idea is I’m going to just flip a house or two, you’re never going to do this stuff, right, you’re never going to put your business in a place where it’s 50/60/80/$100,000 a month and that is a very reasonable and achievable and believable goal as part of the Blitz Wholesaling System. So your goal with every territory and I’ll explain territories in a minute is to wholesale 5 to 6 properties in every territory, each month. Now if you make an average net profit of $5,000 on every flip take a look at what this looks like in each territory, that’s $25,000 to $40,000 in net income, that’s the income after your costs in the transaction that are coming in to you and so you’ve seen the first two deals that I’ve shared with you in the city that I launched as part of the Blitz Wholesaling System, the first one our net profit was about $5,400, the second one our net profit was $2,800. Now that second one should have been closer to $5,000 but we screwed up, you screw up because now I’ve told you what we did, but your average, just figure your average was about $5,000. Well if you only did 5 deals a month in a Blitz Wholesaling city and if you literally if you follow because folks our third property is in Escrow, ready to close, I don’t know if we’re closing next week or whatever it is, today is Thursday so I think we’re closing our next one next week. So in the first from launching the this business, zero, having no team, having no buyers list, having no websites, having no acquisitions, having no properties, having no knowledge of the market, in the first just over a month, we’re on track to close our third deal already and so once you get up and running. See now we’ve got a buyers list, the buyer that just bought the property here that I showed you a minute ago, this little net profit calculator that I showed you, this buyer sitting at closing today was already asking us for more properties, they want to buy more from us, so what do you think, are we going to make $2,800 on the next one? no, we’re going to make 5/6/$7,000 on the next one and that buyer is still going to be happy because that whole deal went down without a hitch, it went down even though we had a little bit of a faux pas up front, it’s not going to be hard to get this city to do at least 5 deals a month, that’s $25, 000 a month in net profit.

Now imagine then just scaling your business into one more territory and then doing the same thing, now you’re picking Blitz Wholesaling cities, now these are cities that have really easy low hanging fruit, cheap deals, lots of them, lots of cash buyers that it’s very easy to turn. You’re not competing in highly competitive markets, you’re not trying to do that, you’re trying to pay a simple, simple volume game where turning 5 deals a month, you can do that in your sleep and this is very realistic. So now if you scaled into a

[15:00]

different city or in the same territory and doing the same thing, you’re talking now a 50-‐$80,000 a month, if you launched a third territory, folks, just at 5 deals a month then three territories, three cities, Blitz Wholesaling cities, we’re talking $75,000 a month.

You think those are unrealistic numbers? Those are realistic numbers and I’ve personally exceeded those numbers-‐let’s see we’re up at $75,000-‐ I’ve done those numbers times three in my wholesaling business, those numbers times three so this is very realistic I want to think territories, okay, what we’ve done is Blitz Wholesaling it was city selection or market selection and then in module 3 we broke that


down into a city grid. Well I want you to think that a city or market is equal to a territory and so one metro area, it generally equals a territory, now depending on its size you may have to split that metro area down. You may have a metro area that may have a kind of inner circle city area or you might have a metro area that’s split north to south or east to west, if it’s a larger metro area, you might spilt that into multiple territories.

Beyond the metro area, I want you to think then generally if you’re following the Blitz Wholesaling System you’re going to realize that you’re going to start in metro areas with a million population or greater but one of things that I like to do is once I get that up and running, I like to look outside of that metro area and say are there rural surrounding cities, smaller cities around that metro that I might be able to move my operation into? Oftentimes trying to use my same real estate agent to make that move, so keeping things simple, you don’t have to get too complicated with this but I want you to be thinking territories because territories is how you’re going to set your team up, I’m just giving you some ideas. You know a metro area, equal to a territory is good enough, a city market which is a metro area, equal to a territory, good enough to begin I’m just giving you some ideas on how you can begin to scale.

So here’s what your team consists of: your teams consists of a real estate agent and this is a local real estate agent in the metro area, in the city or territory that you’re doing business in, this is a local licensed, real estate agent. This is the first member of your team. Now, we all know that, we’ve gone through this whole process of the Blitz Wholesaling System. I’ve talked to you about how to contact these agents, how to build credibility, how to do this and so this is the first team member that you’re going to get on board anytime you launch into a new city or a new territory as your local real estate agent.

Now, beyond that your next person is going to be in sales and your sales team, let me explain this too, you’re real estate agent has a traditional relationship with you meaning they’re acting as your buyer’s agent, so they work for you as any real estate agent would. You don’t pay them, you don’t pay them a salary, you don’t pay them hourly, you don’t pay them out of your profits, they get paid on the HUD at closing, when a deal closes okay that’s your agent, now your sales person or what I call your property wholesaler is also a local licensed real estate agent. This particular person is a licensed real estate agent in that city, in that territory but their job is to sell your properties so if you think back to Blitz Wholesaling, Blitz Module 5, the selling property stuff, this is what they do, their job is to sell the properties, their job it to get the signs, write on the signs, put your Google voice phone number on the signs make those phone calls, talk to potential buyers, meet with buyers, show the properties, show up the closings, do all those things.

So your team consists of a local licensed real estate agents for acquisitions that you work with directly to make offers to get you access to the MLS and access to HUD and all those things, then sales is that local, on the ground person that’s going to be doing your boots on the ground, hustle work to

[20:00]

sell the properties and then finally acquisitions, you’re real estate agent is really a part of the acquisitions team but I want you to think of your acquisitions person or an acquisitions manager, project


manager as a person that’s going to be the liaison between you and that real estate agent in that city or in that territory. What does your acquisitions manager do, well if you go back to Blitz Acquisitions module 4 that’s what do, they run all of that, on a daily basis they track the HUD listings, they manage the spreadsheets, the submit all the bids, they use offer blaster pro and submit all of our REO and HUD offers , they’re not licensed, they do need to be licensed, they’re a manager, their job is project management so that have a lot of strings, a lot of things wide open that they are responsible for. Sales their primarily responsible to sell the properties, acquisitions: they’re responsible to run the entire acquisitions, work with the local real estate agent and be the center point liaison contact that connects everything up and makes all work.

I’m going to grab my pen and I just want to show you this because I’m going to draw this all out, here’s your acquisitions manger, we’re going to go to another sheet in a moment that’s going to have this all mapped out. I want you to see this, this is your acquisitions manager, okay and here is your real estate agent , right here and so what is the acquisitions manager doing, the acquisitions manager is working directly with your real estate agent and making offers on REO’s on HUD, on probate on all of these different types of properties: REO, HUD, Probate, stuff out of the MLS, we’re talking making hundreds of dollars per week, this is the responsibility of the acquisitions project manager. Now I know some of you think well shouldn’t that be the responsibility of my real estate agent? No, I say no because they’re not going to do it. Your job is to run your business and make sure things happen. Your real estate agent is an agent, they’re a broker, nothing against them, they are an integral part of our team and I love working with them but they’re not running your business and they’re not going to do all of the work that’s necessary, if you follow my Blitz acquisitions system which I’m not just telling you to go do something that seems like a lot of work, we do it in my business. The reason I do it is because I have an acquisitions project manager right here that does all that work so as soon as we get a property under contract my acquisitions manager knows about it, don’t they? So what do they do? They take that and hand that right off to my property wholesaler so they say we’ve got one, boom we’ve got signatures, hey Mr. property wholesaler, Ms. Property wholesaler, go sell it.

So what does the property wholesaler do? The property wholesaler goes and finds my cash buyers, builds those relationships, finds those cash buyers and gets the offer. Now they actually do the paper work between the cash buyer and my company and so now there’s a contract here. And so contract number 1 is over here for us to buy it, contract number 2 is over here for us to sell it, my property wholesaler then submits my contract right back to my acquisitions manager so now what does my acquisitions manager have? A contract to buy and the contract to sell. What’s their next job/ their next job is to come over here and submit everything to the title company and the property in Escrow, right that’s their job. Now their job is to manage this deal and make sure that it gets closed and that we all get paid.

I hope that this is a simple process, this person is the very hub of your business, this is a very responsible, very important position in your business, as are they all. I’m going to be straight with you, this person can be replaced quickly and easily when necessary, this is not necessarily an integral part of your team, they are access to the MLS, they are access to HUD


[25:00]

But basically we run the show, my acquisitions manager runs the show, my property wholesaler runs the show, my title company helps us do everything right and we get paid and what do I do, I check in here to make sure that my acquisitions manager is doing what they need to do, I check in here to make sure that my property wholesalers are doing what they need to do, I train them, I review with what’s happening. So I’m a part of the training process and the overall management process but these two positions are doing 98% of the work and that’s an important thing for you to understand is that ii’m not doing all of this work, I’ve put a team in place that makes it happen.

And like I said, this person is an important part of the team because they get us local access but it’s really my property wholesaler and my acquisitions manager that work for me and get paid out of our profits, that are the integral pieces. Again like I said I can replace this person, don’t take that bad if you’re a licensed agent, I’m just trying to be straight with you. I’m building these positions as my team, that’s my point.

Now, I had another point I was going to make about this…somebody’s thinking well why don’t you have, because these are both local agents licensed in that city, why wouldn’t you just have this be the same person? Well because the property wholesaler works for me and their only job is to focus on building a buyers list, building a relationship, taking donut to the title on Friday and smooching the title company for us and you know getting to know the title company and those kinds of things. So this persons job is not to be a real estate agent trying to get paid on the HUD, this person’s job is to get paid as a property wholesaler, sell my properties, that’s their only job and I don’t want these two people to be the same person because I don’t want people to be splitting their efforts.

To be honest with you this person doesn’t do much, they really don’t do much because my acquisitions manager and my property wholesaler pretty much runs the show they’re just a license number and for the most part we kind of tell them to stay out of the way, let us do our thing, get out of the way because we’ve got stuff to make happen, that’s kind of our attitude. So that’s your team.

Now let’s keep digging through this because I want you to see how this works. You’ve seen this diagram before but I thought it was a good place to put back in here because now you’re starting to get the overall thing. So you’ve got your office, your acquisitions project manager or then you here kind of overseeing, you work as the liaison between this person right here and your property wholesaler right here but then they work together, they do a lot of working back and forth together and you’re overseeing both of them to make sure they have what they need, they’re getting what they need and that sort of thing.

So your acquisitions project manager or you right out of the gates is initially working in your Blitz Wholesaling city to make offers and that’s just going back and forth. You get an offer accepted, your real estate agent sends you over the counter offers to them and now you’ve got the paper work. You take that paper work now you pass it straight up the information on the property straight up to your property wholesaler who goes out and markets it to your cash buyers, they fill out the paperwork so now you have a cash buyer that’s made you an offer and submitted earnest money. The property


wholesaler then turns that paperwork right back into your acquisitions project manager to which you then submit the paperwork up to the title company and schedule closing. That’s the process of how it works and so your acquisitions manager and your property wholesaler are working closely together, your acquisitions project manager and your real estate agent are working closely together so this person is your hub right here, this person might be you right out of the gates so you are the hub working in between the agent and you are the hub working between the wholesaler

[30:00]

As soon as you can hire this person to replace you so that you move to an overseeing management role, the better, because think about it, if you do this, if this is territory number 1, if you set this up right, then you can go set up territory number 2, territory number 3, territory number 4 and what are you doing, you are going to primarily be the liaison between your acquisitions project manager in each of these territories. So you’re going to hire and train your property wholesalers, make sure that they’re doing what they need to do but you’re going to have your acquisitions project manager doing the bulk of this day to day busy work so that you can just be helping your property wholesalers sell the property.

I didn’t say sell it for them, I said make sure they know what they’re doing to help sell the properties. Do they have signs going out today, did they have signs going out yesterday, are they meeting with and networking with hard money lenders, are they smooching the title company to tap into their cash buyer list, are they driving the neighborhoods and looking for contractors that are working. These are the questions that you ask your property wholesalers on a daily basis and help them sell the properties. You can’t do that if you’re working as hard as this acquisitions project manager; if you’ve been through the Blitz Wholesaling system you already know that it’s a lot of work, so if you were to try to run this business all by yourself one territory is probably all you can handle but by setting up your team you can scale this up into multiple locations and that’s what we’re talking about.

So team delegation, who does what? You’ve got a real estate agent in each territory, so each territory: territory 1, territory 3, you’ve got a real estate agent that is just focusing on a particular territory or area, that’s their only job. You have property wholesaler in each territory as well, so your property wholesaler works for you as an independent contractor and they sell your properties bit h of these two people are licensed real estate agents.

Now you have one acquisitions manager that can run acquisitions for up to three to four different territories. So this acquisitions manager is working with up to four different property wholesalers. I’m going to say generally about three territories is what they can handle sometimes they can go up to four if maybe you’re only closing, five deals a month in a particular city/territory, they can go up to four. If your closing over five deal generally one acquisitions manager can handle about three territories so they’ll be working with three different property wholesalers to this one acquisitions manager that’s how that’s going to work for you. So your acquisitions manager is the hub of your business as I just showed you and that is the central point between the real estate agent, between you and the property wholesaler, that acquisitions manager is an important role.


So how do these people get paid and how does this all work? It’s 100% performance based, that’s it, 100% performance based. Okay so you know how you find deals, you know how you sell deals, you know how the transactions goes down, you get that money, you get your wholesale profit after closing, so they get paid from you, they do not get paid on the HUD, when you make your money then you cut them checks. You collect all the proceeds, you do all the accounting and then you cut checks out to your team, so I want you to understand that’s an important consideration and thing for you to know, you collect all the money, track and manage the accounting and then cut checks to your team. What happens is when we close a deal, my office, my team cuts checks quickly so we get the money in, we go through the accounting in our quick books system and we cut checks out to our team. We say we do it on the first and the 15th of the month. Often times we cut checks on a weekly basis but you know, I just want you to understand the process here, you collect the

[35:00]

Money, do the accounting and then cut checks to your team. So here’s how the acquisitions party get paid. They get paid 10% of your net profits on each closing, so think about it, they’re getting to make 10% of the profits on each closing but that’s going to leverage across 3 or 4 different territories, so let’s talk about the kind of money that they can make. Let’s say you’re at $5,000 of net profit on each deal, they going to make $500 each time something closes and if you close 5 deals in a particular territory, that’s $2,500 a month in one territory. Now you multiply that across three territories and all of a sudden they’re making $7,500 a month across three territories. Not too bad is it? You know that’s a pretty good income to make $7,500 a month. Let’s see what is $7,500 a month, I can’t do this math in my head; so they’re making $90,000 a year gig and that’s if you’re just doing 5 deals a month at an average of $5,000 each, not a bad deal, pretty darn good income, almost a six figure income to go out and do that.

Now here’s how then your property wholesalers get paid. So sales your wholesalers are paid 30% of the net profits, now here’s what I want you to realize, I want you to understand that your sales guys are working a single territory and they’re doing all the work to make the profit, they’re doing that job to find that buyer and sell, they don’t have any leverage built in. okay, so they’re showing properties at 7pm at night and at 8am on a Saturday and on a Sunday afternoon, they’re working a single territory so they get paid more because the acquisitions person…more per closing, because this acquisitions person is going to get more for each property wholesaler closing, so they’re going to leverage their 10% across three or four different territories whereas the sales guys, the property wholesalers only have one territory that they can work. So this is how I pay them, I pay my acquisitions 10%, I pay my sales 30%.

So now let’s take a look at this deal that closed here today and let me just pop this down for you so you can see how this works. So my acquisitions manager on this deal that closed and look, this is a really low flip, we only made $2,800 that kind of sucks but hey it’s free money, right. So my acquisitions manager made $280 to close that deal and my sales guy that found the buyer, sold it, did the paperwork, coordinated the buyer to closing, showed up at both the buy and the sell closings and actually signed all the paperwork because they’re a local person on the ground made $850. So I think that’s important distinction for you too. So look at my net profit out of this deal then was $1,700 and how much of the work did I do? I didn’t really do any of the work, sure I could do all the work and keep $2,800 to myself


or I could do very, very little of the work and keep $1,700, which is the better choice? I think you’re all going to agree that keeping $1,700 and doing none of the work is a heck of a lot better deal.

I think it’s important though that we identify the responsibilities of your team at maybe this point because…yeah let’s just stay here and let’s just talk about this for a minute. My acquisitions project manager, their job is to make sure that offers are going out, accepted contracts are getting signed, counters are being addressed and then as soon as we have one that, that property address is being passed off to a wholesaler so they can go sell, oaky as soon as the property wholesaler sells it, the property wholesaler submits that new paperwork from our buyer back to the acquisitions manager who then opens Escrow with the title companies and works directly with our local real estate agent on the buying side and then out investor friendly real estate company on the flip, on the selling side. So our acquisitions project manager is coordinating all of that stuff.

[40:00]

Now it’s important too that we then talk about our property wholesaler and what do they do. What’s their responsibility? Well their responsibility is to take those properties that we get and go show them, go do the marketing, go put the signs out, find the buyer, fill out the paper work, send it back to the acquisitions property manager and then coordinate with the buyer to show up at all the closings, so my acquisitions project manager I actually give them…I’m sorry my property wholesaler, my sales guys, I give them signing authority, they’re on the ground, in the cities so I don’t do a lot of overnight packages at foreclosing because I give my property wholesalers signing authority so they can go in and they can sign on behalf on my company to buy the property so they can go to the A/B closing, they show up at the A/B closing and they’re the ones that are making sure that the wires and everything else that needs to hit the bank account, hit the title companies are really happening. So their job is important on the day of closing because they’re boots on the ground, at the title companies, making sure that things are going smoothly and actually happening. So I hope that explains how your team works in these deals.

So let’s talk about finding your team and Craigslist is the best way, craigslist.com and what I do is I go post a job and I’m going to provide you with the exact ad that I run when I run an ad on Craigslist and you’re going to see it’s kind of a funny little ad, let me see if I can pull this up, okay here we go, let me get this sized right so you can see it. So basically let me just kind of go through this:

‘Experienced 12 year real estate investment company is seeking a sales agent for expanding wholesale buying operation in the blank metro area, fill in the city that you’re working in. We are looking for someone that is a lot of fun to work with and add to our team. If you are set in your ways, grumpy and just a pain in the rear end, this isn’t for you. A real estate license is required but this is not traditional real estate, we are not just looking for anyone, this is a limited position and we are hiring just one full-‐time person. If you are a naturally good sales person, are honest, ethical, want to have a lot of fun doing real estate deal and are seeking an opportunity to make great money for the effort you put in and are interested in working with real estate investors every day, this position might be for you. Your job will be to market and sell the houses we buy to cash investors. We buy significantly distressed houses in all


areas and we pay cash. So we buy for cash and then we turn around and sell to cash buyers quickly, no loan, no qualification, no inspection, this is simple real estate’.

You see what I’m doing, I’m kind of setting the tone for what it is, we’re kind of fun, we’re a kind of a little bit goofy:

‘But here’s the deal we have a full-‐time acquisitions department to make sure that you have houses to sell once you join our team but this is not traditional real estate as you will not list houses on the MLS so you will not act as a listing or sellers agent. Instead we will show you the marketing strategies we have used for years in multiple cities across the country to help you find cash buyers and sell our houses within one to five days. This is a commission only position and you will earn 30% of profits on all houses you sell, you will be compensated as part of our property team not as normal real estate agent. Thos is a position for an agent that wants to make money like an investor. We typically buy and sell in under 30 days, our average profit on our properties is approximately $6,000 so 30% is $1,800 per property sold. We buy a lot of cheap houses, we are positioned to buy and sell approximately 100 houses in the-‐fill in the blank-‐area, so this is a real opportunity for the right person, do the math. We do not buy pretty houses, these are really ugly in most cases and are usually very low priced. The truth is the houses we buy probably stink, may be boarded up and most likely have no utilities connected. This isn’t for you if that turns you off. If you don’t see that type of house as money in the bank

[45:00]

This isn’t for you, we are looking for:

• Character • Honesty • Integrity • Someone fun to work with • Self-‐starter that likes to work hard for the reward. • Willingness to learn and get out of the box to be successful • Motivated by money and willing to work for it. • Reliable transportation • Working cell phone • Laptop computer • Feel safe driving into lower priced neighborhoods • Flexible schedule to get the job done when needed • Organized • Able to manage a calendar and be on time to appointments • Good people skills • Friendly

There’s probably more but we can flush that out in an interview. If you’re interested in learning more please send your resume and a cover letter stating what interests you about this position.


Contact Rob by replying to this-‐and it was a posting on Craigslist-‐interviews will begin this week.

So that’s it, that’s my add, now you should modify it a little bit, put it in your voice, change things up but keep it light, fun and just kind of enjoyable for somebody to just be interested. You know I’ve hired some really fun people off of that ad and It works pretty good, so I’m going to give you that ad so you can have it and have that list of things and kind of how I describe it.

Now this is for finding my local property wholesaler, in the city that I’m looking for and there’s just a modification to that because you can hire your acquisitions person just about anywhere, they can work locally, my acquisitions folks work here out of my office because I want them to be around, I want to be able to interact with them, I want to help guide the acquisitions, that’s an integral part of the business, I want them to be here so that’s how I chose to do it and so you’re looking for people that are going to be good fits to your business from both sides of the house.

So what makes a good, fit, let’s talk about hiring your team. First I want you to hire slow, you are not desperate enough that you need to just go hire the first person that comes to mind, you are not desperate enough that you need to give uncle Willy a job, you are not desperate enough that you just go jump on and get anybody that says that they want to go to work with you and you bring the on board, you hire slow and you fire fast, look if they suck, if they’re not getting the job done, if they’re not doing the job, if they’re not fun to work with, if they’re a pain in the butt, if they make your day miserable, if you don’t want to get out of bed and do this business because you don’t want to talk to the people that you have on your team, fire them, get rid of them, I have zero patience for…you know at the end of the day it’s my business and if there’s people that are bringing the attitude down, get rid of them.

Now I have…some of your great people sometimes go through ups and downs in their life right? So if it’s one of those situations, obviously if you’ve built an established relationship with somebody and they’re going through a slum time, help them work through it, figure it out, your team is like an extension of your family, so don’t take me as cold, I’m just running a business and if they’re a great team member that’s being productive and they’re having a rough time, you know I’ll address the issues, we’ll have a conversation about it and we’ll say hey do you need…are your goals in life no longer aligned with what the business needs you to be doing and if that’s the case maybe we need to talk about making a transition in your position. Okay, that usually shapes people up right there and they get back on track but hire slow, fire fast, hire the right person, the right personality for the job ad we’re going to talk about that.

I use what is called the DICS personality profile and everybody that I hire is required to take this test, it takes about 15 or 20 minutes. It’s the DICS personality profile and the DICS stands for: Dominance, Influence, Conscientiousness and Steadiness, okay those four things. Now let me pull something up here for us in a moment, hang tight. I’m going to show you what these each sort of means and how they can kind of affect what your

[50:00]


The folks that you’re working with, so let me go over here to one of my reports and find one that I can pull up to possibly show you here. Actually what I’ll do, I think I actually have…I think I actually have it coming up here.

So let me just explain this: Dominance, Influence, Conscientiousness and Steadiness. Dominance and influence are on the top…if you think of…let me grab my pen, this is how I can show this to you. If you think of a X, you have D-‐I-‐S and C. let me see if that’s the right order, I can’t remember off the top of my head if the…in the boxes, C and S, I felt like I did that wrong, so this is C and this is S, okay. I’m not a good artist apparently, I’m not an expert in this, I just know what I’m looking for and there’s a website that I have posted up on the site right now that is blitzwholesaling.com/hiring-‐profile and it’s going to take you to the online DISC personality profile that I use and basically, people above here are drivers, they are leaders, they get the job done, they are self-‐motivated.

• D: is very driven, tasks, results oriented. • I: is an influencer a persuader, a sales person.

On the top here, the D’s and the I’s they don’t need to be managed because they get the job done, they’re highly driven themselves. So you want D’s and I’s working for you in this kind of capacity.

C’s and S’s are great supporter personalities, they are...they make great employees…they’re good but remember what we have here, we have a position that’s 100% commission based position, they only get paid when they perform and they get paid when they perform based on their performance, based on a percentage of the profits and so you want these D’s and these I’s for your acquisitions manager and your property wholesaler positions, let’s take a look at them so your right personalities for your positions is generally high D followed by high I. So let’s talk about their traits:

• They’re self-‐motivated • Motivated by money • Results driven • Task oriented

Whereas the other person who is your sales or your property wholesaler is generally high I, high D. now, they are:

• Self-‐motivated • Results driven • People oriented and that is the big difference.

Now, let’s take a look at the difference, what you’re looking for in these people: D followed by I and the difference here is they are task oriented, they love it, these people love it when at the end of the day they can put a check next to all of their to do items. So if they’re in acquisitions…your acquisitions project manager and their job is to submit forty HUD bids that day or their job is to make sure that your offer blaster pro campaign shot out 60 offers today and they can put a check by every one of those and put a check by this and they can put a check by submitted new property to the property wholesaler and


put a check by got a new offer accepted and put a check by all of the things on a daily basis, they love tasks, they’re driven by tasks, they are motivated by tasks, they get excited by putting check marks next to the tasks on a daily basis and they will go above and beyond

[55:00]

As a self-‐motivated person to check off those things, that makes it so that I don’t have to manage them that much so that’s fantastic and the results driven, this is huge because they only get paid when they get results so the expectation is they have to get results in order to get paid. So what is them getting results? They have to get a property under contract so that they can pass off to the sales guys, so the sales guys need to be what? High I, high D, so they need to be also self-‐motivated, because as soon as that property gets passed off to them they better go hustle it and sell it, they are also results driven. What’s the result they have to get? So this person’s result is get a deal, this persons result is sell the deal, so they are results driven but people oriented.

The I in this case is influencer, so this is dominance and this is influence and that’s how…that’s the difference between our acquisitions people and our sales people our acquisitions people are paying close attention to the details of the tasks and our sales people are paying close attention to the relationships of our buyers if you hire the right people folks I’m telling you your life just get cherry, it just got easier and I hope this is making sense and I hope you’re seeing how this fits in. I can seriously tell you that if you feel overwhelmed right now just trying to do all this stuff, your next move is to start hiring a couple people because the minute you do that is the minute you step back out of having to do all of it. Look, if this is your comfort zone and you’re right here, hiring somebody is right there, you’ve got to jump out of your comfort zone folks and the minute you do it, the minute you put yourself out of this and make it happen and hire the right personalities, you’re going to make your life so much easier and so much better.

Like right now, I’m actually sitting here and I’ve got my iPhone sitting next to me, going through this training and as I’m going through this entire training, I’m getting emails and information from y property wholesaler as well as from my sales guy and from my acquisition folks. I just got a list of here’s all the HUD counters that we’ve received and I’ve got a list of three properties that we just need to take a closer look at and that email was sent to me by my acquisitions project manager as well as to my property wholesaler in that particular city and what do you think is happening right now? my property wholesaler is looking through those three bids running the analysis and saying do we think we got these at the right price that we should move forward, can I sell them? So my property wholesaler is making the decision already, can I sell these, we have them at the right price, he’s going to provide that information back to us, back to my acquisitions project manager and we’re going to either move forward or we’re not.

Then I’ve got another email that says I’ve got all HUD bids submitted today, that’s from my acquisitions project manager. So the right personalities are just doing the job and other than we closed a deal earlier today so I have a little bit of communication with my team earlier today I haven’t talked to either one of them about what are they doing today because I’ve trained them over the last 30 days and they are self-‐


motivated, motivated by money, they’re results driven, they know what results each of them is supposed to get and they’re oriented in the right way, either tasks or people, very, very powerful.

Here are their personality profiles actually, this came right out of the DISC personality profile test that if you go to that blitzwholesaling/hiring-‐profile, was that it, let me go back…url, just let me make sure…hiring-‐profile… blitzwholesaling.com/hiring-‐profile and it’s going to take you to the DISC personality profile test that I have my team…any prospective team member take before I’ll hire them. I get a 23 page roughly report on their personality, their work style, their motivation, the things that they do well, don’t do well, it’s really, really a powerful report

[1:00:00]

So here’s my…my property wholesaler in one of my cities and here’s my acquisitions project manager that works out of my office. I want you to look at their classical pattern; my property wholesaler is a persuader, sales guy right and I want you to see that he is a high D with a higher I so I is for influence, he’s an influencer, he’s a persuader, he’s a sales guy naturally, his natural inclination is to be a salesman. Okay if you’re not a salesman hire this guy. If you don’t want to do the selling and can’t do the selling because you should run your business so you can scale into multiple cities, hire this guy, he’s a natural salesman.

Now my acquisitions project manager is high D, very much dominant, tasks, results oriented followed by high I. so, gets along with people, can work with the title companies and real estate agent and the property wholesaler and everybody that’s involved but loves to check off the tasks, high D followed by high I results oriented, so persuader and results oriented. Folks if you hire this person as your acquisitions project manager, you just made a really good hire, this folks is why I do this amount of the work in my business and I make this amount of the money. I run the business, I’ve put the systems in place for my sales guys to be successful, my acquisitions project manager to be successful, I’m the person that’s finding that next territory to launch, I’m building that initial relationship with the real estate agent and then passing that relationship off to my acquisitions project manager okay, I’m doing the business set up, I’m running the business which is why I get paid 60% and I give away 40% for my folks to go get the job done, we all make more money doing it this way.

Because if you look at their whole profile and also why I hired them, they’re not going to do this on their own, they’re drivers, they’re self-‐motivated but they both want and desire structure, they want structure, they want things to be set in place, they want a system to plug into and they want somebody to lead them down the path to success, this is why they’re going to work for me of r a long time and it’s going to be a win/win situation for everybody. So I want you to understand and see how this works.

Let’s talk about the hiring process, I use a four step interview process and I don’t want you to short cut this, do not short cut this seriously. When you hire somebody I said hire slow and fire fast. Hire slow means go through this four step interview process, now this process might take you a few days, you might do a series of interviews over a period of a few days, a week and a half or whatever but go through a four step interview process. So let’s talk about the four interviews:


• Interview number one is they respond off your Craigslist ad and you have an initial discussion, you do an interview of the position, you discuss the commission structure, you discuss responsibilities, what the expectations are: hours, high pay, self-‐starter and get to know them a little bit, this is mostly you introducing them to what the opportunity is and then simply asking does this sound like a position that you would be interested in further pursuing, they’re going to say yes or no, if they say no, interview done, 10 minutes and you’re out. If they say yes you go to interview number two.

• Now you’re going to get into more detail and a Q&A type of discussion with them and I want you to find out their goals and I want you to find out their motivation and I want you to find out who they are what interests do they have, desires, experiences, work ethics, work history, where have they worked in the past, what are they doing, those types of things and remember, when they initially respond to you off the Craigslist ad I asked them two things, I asked them for a cover letter that says why they’re interested in the position and I asked them for a copy of their resume. If they don’t do those two things then I ignore them because they can’t follow instructions in a simple job posted request

[1:05:00]

And so I’m looking for people that respond appropriately right out of the gate…have them, so at the end of interview number two, you again ask, Joe now we’ve had a little bit more information, a little bit more conversation about the position, is this a position that you think is going to be right for you. Is this is a position that you would like to pursue further? So the second interview takes about 30 minutes and if they say no, interview done, if they yes-‐and remember your job is to hire slow, you’re never desperate-‐if they say yes you say well here’s what I’d like you to do next, I’m going to go ahead and I’m going to set up a personality profile that I’d like you to take, this will take you about 15 to 20 minutes, a series of questions and it’s going to give us a lot of great insight into how your personality is going to fit into this job, into this position.

And tell them one of the things that you’ve learned over the years is that if…once you know how the person that you are considering hiring ticks and thinks and works you have a much better ability to put them in a position that they are going to win and succeed at so it’s after interview number 2 that you’re going to invite them to take that personality profile and let them know, hey what’s your email address, I’m going to send you a link to this, in a few minutes and I want you to go ahead and take this test later today, I’ll get it tonight or first thing in the morning and then we’ll go ahead and we’ll set up another conversation.

• Interview number 3 folks my interview style is very casual…very, we’re having a discussion because I want peole’s real self to come out, interview number 3, review the profile beforehand, before you jump on interview number 3 and then with them while on the phone and then highlight some things, hey this jumps out at me, what do you think about this? Ask them what they think about this, are you a natural persuader, yes or no? are you a…do you like to check off tasks at the end of the day? Yes or no. hey I found this interesting, your personality profile test


said that you like to check off tasks at the end of the day, do you think that’s an accurate description of yourself. Oh yeah, absolutely, I love that, blah, blah, blah. So you’re going to use this 23 page report, it’s going to give you so much information about them and it’s accurate, that’s the beautiful thing. So here’s what I try to do in interview number 3 I kind of try to get them not to want the job or not to want the position because by this point they’ve done interview number one, interview number 2, they’ve taken the personality profile test, they want it, they’re thinking hey this is moving forward. Interview number 3 what I try to do is I try to let them come up with reasons that they’re not going to want it meaning: Joe you understand that this is a commission only position and you’re going to get paid as well as or as little as the effort that you put in. now I’ve got systems that work I’ve got a business that works and my business would rely on you in this position to help us all make money. Does that sound like something you can handle? So I do something like that to get them not to want to position at the end of that, after revealing all of this, I say well you know we’ve spent quite a bit of time together, is this something that you…is this is position that you’re thinking you would be a good fit for? If they say no interview over, if they say yes, here’s what we throw a curve ball at them next.

• Interview number 4 is the spouse/significant other interview. I know some of you guys are thinking wow that’s weird. Well guess what, I don’t hire somebody anymore, I have in the past, I don’t hire somebody anymore until I interview, my 4th interview with them is them along with their spouse and here’s why, if their spouse is crazy, they’re going to be crazy. Despite what I might get a sense of them through the first 3 interviews alone, if I find out that don’t have the support of their spouse, I f I find out that their spouse is a wack job you know who find out. Or I might find out that as we kind of talk through some of the stuff with the spouse, the spouse asks some great questions that the interviewee never even thought about and opens up new dialog and opens up either new confirmations for me that this is the right person or reservations for me that says oh, maybe this isn’t the right person

[1:10:00] Hire slow, fire fast, most importantly, hire slow. If you get the right people on your team folks, you are going to have them around, they are going to do business for you.

The new Blitz Wholesaling city that I launched as part of launching the Blitz Wholesaling System when I launched that city and put everything in motion guess what I did? I hired two people just like I’m teaching you to do right now, they both went through these four steps and guess what? Over 30 days later, 40 days later whatever it is, we’ve closed 2 deals together they’ve gotten paid twice, I don’t have to manage them , they’re self-‐motivated, they’re making things happen, they’re going to close that 3rd deal as quickly as we can and they want to get up to 6 to 8 deals a month working together and so they’re making it happen, they’re taking the structure, the system, the business that I’ve put in place


and they’re running with it because I’ve given them the infrastructure, the business and the guidance to make it happen. I hired each one of them with this four step interview process exactly like I’m showing you here.

Make the hire, offer them the position, when you do that the next thing is then the paperwork, see I’m not an attorney and I’m not a CPA so I want you to consult one if you have any questions about this stuff, but what I have them do is I have them sign an independent contractor agreement that say’s they’re working as an independent contractor, I don’t tell them how to do the job I just tell them what job needs to be done, now I give them guidance obviously on what to do but I can’t tell them hey you need to show up at 5am in the morning, you need to show up at 8am in the morning and work ‘til 9pm, what am I trying to say, I can’t tell them you need to work 9-‐5, I can’t tell them that, as an independent contractor they get to set their own job structure if you will but I get to dictate the results that they need to get and if they’re not getting those results then I can fire them a confidential non-‐compete agreement and then finally I get W9 form for taxes.

So they’re not an employee, they’re an independent contractor and they’re an independent contractor working on specific tasks that I give them and they are compensated for the results that get 100% and I give them the 10% and 30%. So I’m going to give you a copy of my independent contractor agreement and my confidentiality non-‐compete agreement so that you can see. The W9 form is a simple form from the IRS, so you can get that from your CPA or by going to the IRS.gov website, but I’ll give you this so that you have a copy of it and you can look at it, review it, it’s for your information only, do with it what you will, okay but I want you to at least to see how it sets up the structure and what it does.

So let’s talk about your next steps: go run an ad on Craigslist and start to solicit potential candidates. The first person I want you to hire is your property wholesaler, the sooner you can get an on the ground, boots on the streets person, the better. Hire that property wholesaler first, you’re going to need that person, they’re going to build your buyers list they’re going to set signs out for you on all the properties, they’re going to basically hustle it up and sell properties, they’re going to make this happen. Start the interview process, okay, this is what you need to do: make sure you use the personality profile test and let it show you whether they’re going to be a good fit, trust your gut and trust the personality profile. If you’re trying to hire somebody for acquisitions project manager that is a high C, a very conscientious type person, it’s going to be tough, they’re not going to drive forward and make it happen. I’ve made these mistakes in my business before; hire the right people for the job and you’re going to know out of that personality profile test if they’re the right person for the job.

If you make the right hires you’re going to be able to scale your business, if you make the wrong hires you’re going to create a whole lot of frustration for yourself. So I hope that makes a lot of sense, make your hire and then start training. Folks right now you have all of the tools you need to run this business successfully and start cashing checks, just like I’m showing you I’m doing. One of the key important elements here that I want you to understand it starts back at the very beginning, city selection is key, in fact I was talking to

[1:15:00]


One of my coaching students earlier and he was struggling in a city that he was trying to business in and he sent me this big email and answered all of his own questions. He wondered why he wasn’t seeing the same results I was seeing and it all boils down to selection. He was in a city that has a lot of inventory and a lot of cash buyers but it was obvious that the inventory, the deals that the cash buyers were buying were not in the areas where he was able to get the deals…it was super competitive market and it was overpriced. And just by going through the city selection process, the market selection city grid, module 2, module 3, he knew all of the right information he was just not quite sure that he wanted to believe it. And my point folks is that if I went into the city he was in I would have the same struggles, challenges and lack of success that he was experiencing because I’m going to be straight with you, city selection is one of the keys, if you pick the right city you’re going to crush it, if you pick the wrong city you are going to struggle.

So you have all of the tools you need, I’ve shown you exactly how I run my business, get someone else to start doing all of the work for you. Pay them well, compensate them well, free up your time , start running your business like a business, build a team, scale it out and there’s now question in my mind everyone of you listening can hit your business at $25,000 a month, $50,000 a month, $75,000 a month, $100,000 a month. You will not hit those levels of scale if you try to do it all yourself. You have got to scale by building a team, build a team, remove yourself from the effort, put the infrastructure in place, go make it happen.

Folks I hope you get how powerful this particular module is and how powerful the structure that I have set up in my business that I just laid out for you like an open glove, exactly how I do it, I’m giving you the tools to make it happen. Make it happen in your business, scale it up and I want to hear about all of your success after going through the entire Blitz wholesaling System. If I don’t hear from you I’m going to be disappointed, I want to hear from you. There are many of you that have made the investment in this that I haven’t heard from yet. I know who you are, I look at my list, I know who is out there, I want to hear from you, I want to hear your successes and with folks, this is Rob Swanson from Blitz wholesaling, go out make it happen, copy my business and have a great time doing it. Hire a team, free yourself up, scale your business, keep it simple, then scale and run it like a system, from Blitz wholesaling this is Rob Swanson, we’ll see you next time Bye, bye.

bws module 6 team integration · blitz&wholesaling&system!by!robswanson!...

Documents