How to Fully Automate Your Wholesaling Business in 4 Easy Steps!
Do you have a Wholesaling Job or a Wholesaling Business? For quite a few people, that is a hard distinction to make. In this episode, I talk about how to turn that Wholesaling job into a Wholesaling EMPIRE!
There is only ONE way to do that…AUTOMATE!!
I reveal 4 simple ways to automate your Wholesaling business so you could create a business that is a servant to YOU, instead of the other way around. I show you EXACTLY what to look for in a Virtual Assistant. I show you where I get all MY VA’s (I have 7 of them) and even give you some Ninja tactics for getting the BEST VA’s (you don’t want to miss this one)!
I also talk about Acquisition Managers: Why you need them, what to look for and ESPECIALLY…what you must must must avoid!
Take notes because there is a TON of information in this episode…and all in less then 15 minutes! If you know me, that’s how I do it! This is the no fluff, no BS zone! BAM!!
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Tom Krol: Woowee. [inaudible 00:01:05].
Tom Krol: What I want to talk to you guys about tonight is something that is awesome. We had a group call, one of our small group coaching calls today. It was for anybody who is doing 10, 20, 30, 40, or $50,000 per month. These were all the clients who are already doing big, big numbers in our tribe. In Wholesaling Inc. If you don’t know what wholesaling is, it’s a very, very simple way to make a fortune in real estate. You can make a tremendous amount of money by, even if you don’t have good, a lot of money or you don’t have credit, basically you just find a motivated homeowner, put their home under contract, sell the contract. That’s it. It’s super, super simple. And we had a call today with the clients who are kind of in that last phase of training, which is now automating a business that they’re already doing.
Tom Krol: So what I want to discuss with you today are the four simple ways that you can create a business, a wholesaling business that is a servant to you. If you’re not sure if you have a business or a job with wholesaling, here’s a quick way to just find out. Pretend that you stopped doing all activity today. Right now. The question is, how long can your business run without you? How long would it continue to provide an income for you and your family without you working? If the answer is less than a few months, it’s not a business. It’s a job. Now that’s okay. That’s okay. Because you could still make money. But if you really want true freedom from wholesaling, you want to create that job.
Tom Krol: So I’m going to tell you a few simple ways because a lot of people, they get tripped up here, and here are some of the most important ways.
Tom Krol: Now, the number one rule to automation is, automate what is, do not automate what should be. I’m going to say that again, and I’m going to explain it. When you start automating your wholesaling business, automate what is, not what should be. So this is the first key to automation. What that means is when you start to automate your business, what a lot of people do is they look at their business and they start to automate it by putting systems in place, a database and a virtual assistant, an acquisition manager and things like that, and then they start to change the processes that was getting them success in the first place. So the most important rule to automation is don’t change your processes while you’re automated. Just automate what is already working and get more of that.
Tom Krol: A lot of people will ask to the Tribe, well, Tom, what is the first thing I should automate in my business?
Tom Krol: Number one, first and foremost, you absolutely should have a database. You don’t need something complicated and complex and really heavy that you have to learn like Podio. You can use something really, really simple like Highrise HQ is a great database if you’re just starting out. But you must have a database. That’s the first part of automation. The second part of automation is a virtual assistant. A virtual assistant. This is before an acquisition manager. The next thing after as VA is you want an acquisition manager, but let’s just stay general for one minute. The other thing about putting, systematizing your business and automation, is systems and keeping them simple. You want to remember a few things about building a system or a process in your business, and this comes directly from great, great books that I strongly recommend you read like Michael Gerber from The E Myth and the book Traction is a great book on how to automate a business. I strongly endorse both of those books.
Tom Krol: But what you want to do is keep it simple, right? Why can Ray Kroc from McDonald’s, right? He’s a brilliant, brilliant man. First and foremost, Ray Kroc, the reason a 16 year old kid in Miami, Florida, can make the same exact Big Mac that a 16 year old in Anchorage, Alaska can make, is because he keeps it simple. There’s a picture of the cheeseburger right on the cash register, right? So first thing about your systems, keep them simple so that a child or a kid could do them. That’s number one.
Tom Krol: Number two is cover every single part of the process. So that you take the decisions away from the employees, because you don’t want people having to make decisions. They should be following a process, not, you shouldn’t be relying on all stars. That’s awesome. Good, good, good. That’s number two.
Tom Krol: Number three is that every system in your business should be closed, meaning it should have a start point. It’s triggered by something. For instance, a motivated seller. The call ends and it’s a cold call. They’re not hot. What happens? Okay. Well in our business, the first thing that happens is we write, we check off in the box that it’s cold and all of a sudden that person will automatically go to the virtual assistant. The virtual assistant knows how to pull all of the comps to create a purchase agreement and that purchase agreement goes out the door and we send every single cold client a signed and dated, a time-sensitive purchase agreement. That’s all an automatic system. It’s triggered by an event and that it ends. So remember, every system should be simple and it should be open and then closed. It should be a closed system.
Tom Krol: The other thing too is you want to, of course, not have your employees make any decisions at all. The less decisions they can make, the more automated it is, the less variable they are. Remember, systems love consistency and they hate variables. So systems like one single focus rather than multiple focuses. One thing that you can do is you can focus really just on wholesaling. So one mistake that a lot of people make is they become like a real estate expert. Here’s the thing, I run a very, very large wholesaling business. All we do is wholesaling and I don’t know anything about real estate. So here’s the trick with this is if you just have a singular focus of one exit strategy, which is wholesaling, you don’t have to worry about automating a big complicated machine where you’re doing rehabs, landlording, lease purchase options, bulk short sales of REO properties and all this other stuff.
Tom Krol: Will you make more money per deal or per case if you’re an expert in everything? Yes, you will, but it’ll be very, very difficult to automate that so that it runs without you. So if you want to go to your vacation home and not have to worry about business for a month or two, it’s very, it makes it very hard to do it if you’re the man or you’re the woman because it’s hard to replicate yourself. So a single exit strategy is really important for the strategy.
Tom Krol: The other important thing is when you are hiring a VA, so here’s, let’s talk about the VA. Somebody asked a question about a VA. Let’s talk about how to hire a VA and how to hire, let’s talk about how to hire a VA and how to hire an acquisition manager. So this is kind of for people who are already doing deals because this is kind of a next level thing, right?
Tom Krol: The number one thing is what, something that I learned from my brother Todd [inaudible 00:07:36], which is we call it the VA Gauntlet, the virtual assistant gauntlet. When you go to hire a VA, you want somebody who is intelligent and trustworthy and detail oriented. Remember, if you’re an entrepreneur, you’re usually not that detail oriented. You are 35,000 feet, not at 5,000 feet. So you want somebody who likes consistency and is detail oriented and organized. As an entrepreneur we’re usually, we don’t like to be organized, we don’t like consistency, we like variety and we’re not that organized, right? We’re creative. We’re going a thousand miles an hour, a minute.
Tom Krol: So the one thing you want is a VA who’s opposite of you. Typically as an entrepreneur, that’s going to be somebody who’s detail oriented, organized, focused, and likes a daily routine. So that’s number one. Now. So here’s the one thing to look at.
Tom Krol: I like to go right to Upwork. I have about six or seven VA’s right now. I like to go right to Upwork. It’s a great place to find virtual assistants. And here’s a little trick that I do. When I put out the job post for an assistant, what I usually like to do is put a little task in there where I’m very specific and granular about what I’m looking back for in their response. I might say only respond to this post between these days and these times and these days and these times, or I might say include some quotes about persistence, or something like that.
Tom Krol: So I always want to be very detail oriented so I can see who is following direction and who is just kind of mass emailing everybody back. That’s a little trick or a little tip that you can use to really find the right VA right away.
Tom Krol: So anybody who doesn’t respond properly right out of the gate, just take them right off your list. Number two is that they must have video, Skype, and work during my hours. That’s an absolute. So those two things are absolute. So once you put it in those three criteria, just find somebody you’re comfortable with. And that’s key.
Tom Krol: Let me talk about acquisition managers for a minute. Acquisition managers, here is the best I can tell you, every acquisition manager who works for me, we follow the same protocol. Number one, I like young, hungry, persistent, intelligent, clean cut college graduates. That is, that’s basically the entire, that will explain everybody who works for me, all my acquisition managers, number one, they must be a college graduate because that shows follow through which you need for your acquisition managers because these are people who are going to be interacting with your sellers and your buyers.
Tom Krol: So number one, first and foremost, they must be a college graduate. Number two is I like younger, hungry, clean cut people because they’re going to be, they have to be presentable, they’re going to be in front of your sellers and you’re spending a lot of money on marketing. So we’ve got to make sure we get all those deals.
Tom Krol: Here’s a little trick though too for acquisition managers that will really help you. And I found this after a lot of trial and error. Every single acquisition manager who works with me or for me, they have all come from previously being employed when I hire them. So I’ve, anybody I’ve hired who didn’t have a job and I brought them in and I was their job after being, they were fired or didn’t have a job or whatever it was. They never worked out. But everybody I’ve hired where I took them from another job, like LA Fitness or, one worked at a bakery, but the people who were already employed when I brought them in, those are the key people. That is pure liquid gold, what I just told you.
Tom Krol: This is, comes from from two and a half years of finding every acquisition manager. This is a key key thing. But this is absolute pure gold because I can tell you the acquisition managers who didn’t have a job before I hired them, they just never seemed to work out. So if they have a job right now and you have to convince them to come on over, that’s absolute gold.
Tom Krol: Number two is people always ask, what do you pay them? I only pay my acquisition managers all commission. I don’t pay anybody a salary. I don’t pay anybody in my whole company a salary, actually. And I definitely prefer commission only. Commission, it can range. It depends on how many deals you’re doing and how frequently you’re doing them and what the average assignment fee is that you make. But it would be anywhere between like eight to 20% is a typical range for wholesalers.
Tom Krol: So you want to make sure that their first year it’s projected that they should make at least 45 to $60,000 in their first year. So, that’s a great place. Where do you get them? You get them from everywhere. You’ll meet acquisition managers everywhere. I don’t get anybody who’s entrepreneurial. I don’t get anybody who’s interested in real estate. I never hire anybody I meet at a REIA meeting, those people are already wanting to get into real estate investing. The people that work for me, they don’t have a background in real estate. So, that is the key.
Tom Krol: As far as the marketing goes, I know someone asked me, I just saw a question that came across as far as the acquisition managers and the markets and things like that. We allow our acquisition managers to handle the entire process from the initial phone call that, we have a voicemail system, so the marketing goes out, the voicemails come in and then we call people back and we allow the acquisition manager to take that lead all the way through every single stage until the actual contract and it’s great.
Tom Krol: So, God bless guys, go to wholesalinginc.com, book a call with me or my team if you want daily wholesaling advice for free, no fluff, no BS, just good old fashioned advice. Text the word wholesaling to 313131, and you’ll get daily advice. It’ll be all about wholesaling and we’ll help you crush it. All right, have a good night guys.