This episode is the 3rd of a 5-part series where Todd discusses the core steps you need to take to move your wholesaling business to the next level.
In today’s episode, Todd tackled one of the scariest things you’ll have to do as a business owner—hire an acquisitions manager.
Understandably, delegating the work that’s going to bring in the revenue for your business is no easy thing. However, the importance of having an acquisitions manager cannot be overstated.
If anything, it’s not only the best thing you can do, it’s also the most rewarding. It will not only bring in the money, it will also give you back your time and freedom.
If you need help getting past the fear of delegating work to an acquisitions manager, today’s episode is exactly what you need to hear!
- What your mindset should be when it comes to hiring an acquisitions manager
- What are some of the most common fears associated with delegating and how you can get past them
- How hiring an acquisitions manager can help you fill in the gaps and give you back your time and freedom
- How to gauge if the person you hired is the right fit for your company
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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Todd Toback: Hi, this is Todd Toback and welcome to this special podcast series on taking your wholesaling business to the next level. Now this podcast series, there’s five episodes and it’s all for the wholesaler who’s been in this business and you’ve had some success, right? You’ve done the deals, you’ve made the checks, you’ve jumped up and down and celebrated, maybe threw a picture on Facebook with that check and showing your friends and family and you’ve done it, right? Woo hoo! Now you may be thinking, “Wow, I feel good. The money is there. I’ve completed the art of finding a motivated seller,” right? Maybe you’ve wholesaled the property, maybe you whole hailed the property, maybe you’ve actually fixed and flipped a property, but you know what the mechanics are like finding that motivated seller. The hustle and grind has gotten where you are today, but you want more.
You probably got into this business because you wanted more money and more importantly, more time, more freedom to do the things that you wanted to do. I know how you feel because I was there, right? At one point, I was hustling and I was grinding and I was doing everything that was required in my business myself to make it happen. One day I woke up and I said, “Hey, I don’t want to go to work today.” Now, the funny thing was I own my own business, right? I was a real estate investor, I was a wholesaler and that was when I decided to make a shift, right, a shift in my business to slowly remove myself as the main producer in the company at least in terms of doing the deals. So if you haven’t listened to the first few episodes in this series, again, this is the third episode in a five part series, please go back and listen to that first episode and the second and then listen to this one.
This third one right here is how to hire an acquisition manager in your company to go out and assist you that you can lead to lock up deals for your company. Now imagine what it’s like. You may be the wholesaler who is answering all the phone calls from your direct mailer, from your bandit signs, or maybe you’re doing cold calls and you’re on the phone and you’re maybe answering that phone at eight o’clock at night when you’re at dinner with your family or maybe you’re single and you’re working all hours of the night and on the weekends and Saturday and Sunday, but when that phone rings, you are answering it, right? Maybe you’re out meeting with a motivated seller to the wee hours of the night or you’re running around putting bandit signs out or doing cold calling and all those things are great when you’re first starting, right?
But I know how you feel. There’s a feeling of overwhelm that when you stop working, nobody else is locking up the deals, no one’s returning the phone calls, no one’s following up, no one’s sending out the contracts. Now think about what your life would look like, okay, if you never had to call back a motivated seller again. Okay? If you never had to put out a bandit sign again, if you never had to make a cold call again, if you were never out at seven or eight o’clock at night locking up a contract, okay, unless you were training somebody else, if you never had to work in other weekend, right, if you weren’t tied to your CRM, if you weren’t tied to your computer or maybe you have that anxiety, right, of not being able to do the followup that you want to, right, and then really capitalize on that marketing.
Well, let me tell you something is that if you’re able to free yourself, okay? First you’ve got to free yourself mentally and accept that you want to get to the next level. You’ve got to get past all the fears on what it’s like to hire someone because most people are like, “Yeah, I’d love to hire somebody.” So let me dispel some of the myths. A lot of people, they’re scared to hire an acquisition manager. Now an acquisition manager is someone who you could bring on your team who will go and meet with motivated sellers for your return calls and lock up that contract and bring back you a sheet of paper that says that you have the right to buy this piece of property for hopefully, a price that is significantly below market value, right? Hopefully, that’s what you’re looking for if you’re listening to this podcast, right?
But most people have this fear that say, “Hey, if I show this person, if I hire someone to free myself up, they’re going to come in and they’re going to steal all my secrets. They’re going to steal my business.” Well, I’ll tell you what. That was a fear of mine, but then I realized then if you could relate to this, that I’d be scared of working to death the rest of my life. That’s what you should be scared of. So if you can get past that and understand that once you empower somebody, man, this is going to free up so many hours out of your day, okay? This, I promise you. If you decide that you want to lead and you want to teach, I’m telling you, it’s one of the most empowering things that you can do for really any business, right? If you have any kind of business hiring a salesperson or someone who’s going to go out and make it rain and lock up those deals, it’s one of the most powerful things that you can do and I really want to encourage you.
Now before I get into the how tos and some more of the fears, I do want to let you know that for me, hiring somebody for the first time was scary, right? Hiring someone who’s going to meet with motivated sellers, not only was I scared that maybe they were going to take some of the deals from me, right? I quickly got over that after the first day, after I heard them making phone calls. I was like, “Wow,” but you may think, “Hey, this person is not going to lock up deals as good as me.” Right? “They’re not going to be able to negotiate as well as me.” And sure, that’s going to happen when you first hire someone, but I can tell you that over time when you train them and you use a script and you role play and if our students at are next level wholesaling program, they use the resources that we give them to actually train their salespeople, okay, you will find that actually your acquisition specialists, the people who you train will actually become better than you.
I can tell you that all the acquisitions specialists that we have have locked up more houses collectively than I ever have. The first acquisition specialist that I hired in my business probably locked up more houses single handedly than me. It’s amazing the power of delegation and the limits that we put on others are just that, limits and ironically, once you take that off, people will rise to the occasion. Now the other thing is, think about this for a moment. You want to hire somebody, but you have some fears that maybe they can’t do it as well as you. Well, think about the lack of followup. I don’t know about you, but for me, when I was answering phone calls, because I was doing everything in my business, the marketing and the strategizing and looking for new marketing channels and meeting with the buyers and meeting with the sellers and running to the title company, right, all of these things, this washing machine and tsunami of information swirling around in my head, and by the way, if you could relate, please give me a shout out.
I just needed a change, right? And what I realized is because I wasn’t dedicated solely to acquisition, that I was missing a ton of followups. Now let me give you a tip that I think will really, really help you, is that when you hire somebody new, ironically, if you have them work the followups in your database, right, the people who you haven’t been able to follow up with appropriately, I guarantee you they will pull out a significant amount of money in your database. We have an acquisition specialist who works on our company and I don’t know, it was about a year ago. I said, “Hey look, I bet you there is $150,000 sitting in this database right now.” And he kind of shrugged his shoulders and was like, “Okay,” you know? So he was calling and he wasn’t getting a hold of a lot of people and getting a lot of answering machines and getting a little frustrated. I said, “There’s a 150 grand just waiting there.”
Anyway, about two weeks into it, we lock up a property and lock up another one and combined it was about $175,000, okay? Again, that money was sitting in our database, leads that I never would have gotten to because I was the business owner. Right? I was busy doing some other things in the business. So again, when you hire someone, they will actually fill in the gaps. They may not be as good of a negotiator as you to start with, but just the fact that they are solely focused on this one activity, okay, will drastically make them better than you. Focus equals power. Focus equals power. Focus equals power. If you don’t think that you’re doing a great job in your business at one activity, you need to fire yourself. You really need to fire yourself, right? You’ve got to take an objective look at yourself at the role that you’re performing in your business and say, “Okay, if if I was performing acquisition in my business, would I rehire me?” Or the same thing with marketing or the same thing with disposition.
I’m telling you, once you do this stuff and you empower others and you trust them and you’re willing to make some mistakes and laugh at yourself and really encourage others, I’m telling you, the shackles will come off and your business will become exponentially more fulfilling. That I promise you. Okay, so here’s the other thing that I will throw out, another fear that people have about hiring this acquisition specialist and that is, “You know what? I don’t have all this money for big base salaries to bring somebody on.” One of the things that really helps me when I’m going to hire someone, I take a look at the total risk of the output for the first 90 days. For me, what we do is we will pay a draw of $3,000 a month to our new acquisition specialist and then after 90 days, they do not get the draw anymore. Now the funny thing is, and by the way, you do not need to do that, right, is that I can tell you that within the first three weeks of hiring someone, I know if they’re going to be a fit or not.
If someone’s going to show up and they’re going to work hard and they’re going to role play and they’re going to be coachable and I could tell they’re going to be loyal and they’re making the phone calls and they’re doing the work, I know that person is going to be successful within the first three weeks. I can tell the usually within the first week, if someone isn’t going to be successful. So really your full outlay, your worst case scenario if someone isn’t going to be a fit is maybe three weeks of salary. I can tell you that once I’ve been working with someone for three weeks and I know that they’re a fit, I’ve never had them not succeed and make our investment back tenfold. Okay? So again, getting in there and making happen, taking a look at your downside, it’s very, very, very low. Now you may be thinking, “Okay, well I don’t even have $3,000.” Well, go out there and wholesale a deal and put away $3,000.
That’s one of the first things I would tell you, but I can also tell you that we’ve hired a lot of people on a hundred percent commission. Now, before you do that, make sure you talk to a local attorney about labor laws in your area, but we’ve hired many people for a hundred percent commission without draws who’ve done very well. So our downside was actually zero. Now on top of hiring acquisition specialists for direct mail, think about this for a moment. We’ve hired acquisition specialists on a hundred percent commission to actually work with realtors direct. That’s right, to work with realtors direct. Now you may be thinking, “Todd, what does that cost in terms of marketing?” Well, we don’t do any direct mail to realtors, right? We actually cold call real estate agents and we’ve been doing this since 2014 and every time we put somebody on this project and we’ve dedicated to it, again, we’ve generated money and you can do the same thing. So you don’t need a ton of money for big base salaries. You don’t need a ton of money for direct mail at the same time. Right?
Now, I do suggest that you have leads coming in. When you’re bringing somebody on a, you want lots of leads that you have in the database and also you want to be trickling in new leads. Now it doesn’t need to be a ton, okay? But I really want to encourage you, don’t let these fears hold you back. Some of the big ones for me, I’ll remind you, right? I was scared that maybe someone was going to take my business. I was scared that they weren’t going to be able to do it as well as me. I was scared that I wasn’t going to have enough cashflow and all of those turned out to be completely and utterly ridiculous. Okay? So I really want to encourage you, that’s the third part, right? We talked about marketing already and outsourcing that, but if you’re really willing to outsource and train and bring somebody on, okay, who’s willing to meet with motivated sellers, it’s going to take a tremendous amount of time, you’re going to be able to take a tough time back, right?
You’re going to be able to buy your time back and hiring an acquisition specialist in my company, I can tell you, has been one of the most rewarding things. That’s one of the first steps that we work with, with our next level wholesaling students in our private coaching program, is we work with them to hire that person. Of course it’s one of the scariest positions to let go because it’s the revenue generator. But let me tell you, okay, you can do it. Okay? You can do it. Here’s the great thing is that you don’t need to do it all at once. Maybe you could take some of your old leads and give it to a newer acquisition specialist then you can keep the hot ones, right? But gradually over time, you move some leads over and move some leads over and you watch them close and you go with them on appointments or you listen to phone calls and they’ll get it slowly, right? It’s not all or nothing. Give them a rope and slowly let it go.
When they’re ready to get out of the nest, let them go and let them fly. I promise you both of you, okay, we’ll be soaring like eagles. Now if you’d like to explode your income and increase your free time, head on over to WholesalingInc.com/nextlevel. All right? So our next episode is going to be on disposition, how to hire somebody on your team and I’ll give you a little hint, to help you move your properties, right, so that you don’t have to be on the phone with cash buyers all the time and also not showing properties and taking pictures. So I’m going to talk about that on our next episode, but I really want you to digest this. Let your fears go, fly like an eagle and I will talk to you on the next episode.