When most people hear the term virtual assistant, they assume that a VA’s job is to call potential clients. However, a virtual assistant can act as a business administrator and serve as your right-hand man. A real estate virtual assistant can cover a range of diverse tasks—such as lead generation, database management, as well as finance and marketing—so, of course, hiring one is essential for your business to grow. But when is the right time to do so, and how do you know you’re hiring the right one?
In this episode, Brent Daniels will discuss everything you need to know about VAs, drawing from his own experiences. He will present the advantages of having experienced and manageable VAs, and he will share the key to building a pipeline in your business.
Breaking Down the Numbers – How Many Cold Calls Does it Take to Land a Deal
Let’s get onto our topic, which is hiring virtual assistants. I want to split this up into two parts. The first one is when I hear VA, Virtual Assistant, it’s exactly what it means. It’s an assistant in your business that does operational activities. Most people think of VAs as phone prospectors and lead generators. The people that you upload the list, give them the dialer, start making calls for you, and start getting leads because that’s where the tilt and the balance, most people are thinking that way.
Most people are thinking of virtual assistants as people who will pick up the phone and call for you and add some horsepower to your business. I’m going to start with that and break that down. I’ll then give you some tips on hiring an actual virtual assistant because the one that I have, Lisa, from the Philippines, has been with me for many years. I paid her over $100,000 over that time. She’s been phenomenal. She’s the person that’s been around the longest with me.
This is the breakdown and the nitty-gritty because I have had the fortune of not only talking to tens of thousands of property owners and making millions of calls, but I’ve coached the best of the best. I’ve coached people since 2017 on how to effectively make calls and hire virtual assistants and phone prospectors to expand their business. These are the stats. This isn’t theory. It’s a bit of rounding up to make it look a bit cleaner, but this is where you can sink your teeth into it.
This gives you a light at the end of the tunnel, especially as you’re starting to build momentum in your business and you’re picking up the phone and you’re consistently making calls. Maybe you feel like, “I love the idea of cold calling. I don’t want to do it myself. I’m at the point now where I’ve made enough from my efforts that I can start hiring people.” If your goal is to make $400,000, this is going to help you break that down. If your goal is to make $100,000, this is going to break it down. Twenty hours. I get the question all the time, “Mike, how long does it take to get a deal?”
It’s twenty hours of you making calls. What if you wanted to hire somebody? What if you’re like, “I don’t want to do twenty hours of calls. It sounds like a nightmare. I don’t have that much time. I have too many responsibilities, but I still want to fuel my real estate ambitions. I want to hire somebody.” When you hire somebody that is experienced and that is managed, they are about a quarter as good as you.
You’re going to see that number jumps up to 80 hours for one closed deal if they are experienced and managed. In the past, I’ve made a distinction between foreign callers versus American callers. I’ll show you how to interview and look at what personality types are the best and the most long-lasting for your business. We’ll break that all down here. If they’ve got good experience and you feel good and you can pay somebody $10 an hour versus $20 an hour, $10 an hour is typically what you’re going to pay for somebody who has managed that lives either in South America, Philippines or India.
You can test them out. Test out how they sound. Test out how they actively listen. This is the most important thing. Are they actively listening when you’re interviewing them? When you’re hearing recordings of their past experiences? Are they saying stuff like, “Uh-huh? Yes. Sure. Yeah. Okay. Great.” Are they confirming and approving or are they interrogating? Are they having a conversation or is it one-sided with them peppering people with questions? That’s what you want to look for with experienced callers. If you can do it for $10 an hour, do it for $10 an hour.
I do it for $20 an hour. Those are my best calls. I’ll explain why and explain all the resources. Eighty hours per deal is typical for when you hire a phone prospector who is managed and has experience. What a lot of people do is they go, “I want to hire somebody myself. I want to find somebody independent. I’m going to pay them $4 to $5 an hour.” That’s fine, but it’s going to take 400 hours per deal for unmanaged phone prospectors. Let that sink in. You think that you’re saving money, but there are about 5% as good as you.
If they’re unmanaged and they’ve got some experience, but maybe not experienced when it comes to sales. When you hire people or when they raise their hand when you do a job posting on any of these virtual assistant sites. When they raise their hand and have experience, is it customer service experience or sales experience? There’s a big difference there. You want to make sure that it’s a sales experience. What I would highly recommend is, first of all, you do the calls first because you’re going to get there faster and you’re going to keep all the profits.
Make sure that they are experienced and managed. You do not want to add more stuff to your plate to manage these people. I would take that third option and completely throw it away. The minimum that you should be spending on your phone prospect or for quality leads is $10 an hour for real. By the way, it’s managed. All you have to do is upload the list and it’s plug and chug. That is my suggestion here.
Twenty hours is if you make the calls yourself. Eighty hours is if you hire somebody like calling reps or call motivated sellers. Somebody who specializes in cold calling where they’re managed. Four hundred hours is if you go rogue and try to find somebody yourself, either virtually or local. What are those 1,000 hours? What does that mean?
They have 1,000 hours of experience. I glazed over that. The 1,000 hours there is that’s the amount of time that they’ve spent on the phone. You can verify that based on whoever’s managing them. We’ll say, this is how many hours they’ve worked in a sales environment, either real estate, insurance, warranties or whatever else, whatever they’ve done for lead generation. There’s a big difference between lead generation and customer service.
The more you are talking and building up your experience talking to strangers about real estate, the better you will communicate with everybody. It bleeds into every part of your life.
Let’s keep going. This is critical. The key is consistent lead generation for 90 days or 12 weeks. If you’re going to hire somebody, you have to have a budget for 90 days. I’m telling you the efforts that you make, even yourself, are going to pay off in 90 days. When you call them, very rarely are they going to be ready to sign a purchase agreement?
You do the lead follow-up, you’re pre-qualifying them and it takes a bit of time, about 1 month, 45 days. You get that property under contract, but it typically takes 30 days to close it. Let’s get realistic with it. Ninety days you talked to somebody, now, it’s a lead. Ninety days minimum is the average that that lead turns into income into your bank account. When you’re doing this yourself, which I highly suggest you do because it’s going to build communication skills that you never even dreamed you could have.
I’m telling you this from personal experience, the more you are talking and building up your experience, talking to strangers about real estate, the better you’re going to communicate with everybody. It bleeds into every part of your life. I’ve said that 1,000 times, but it is the absolute truth. I highly suggest that in the first 90 days, you make these calls yourself. If you’re like, “I’m not going to do it. I don’t feel the fire in my belly to go out there and hunt myself. I want somebody else to do it,” then make sure that they have 1,000 hours of experience in a sales position and then test them out.
If you could do it for $10 an hour, do it. I pay $20 an hour because my deals are double the size. If you do the economics, it makes a whole lot of sense. Two hundred and forty hours equals twelve deals for you. That’s the math. Twenty hours per deal makes it very easy. We’re extrapolating over twelve deals here because, during those twelve weeks, you’re putting in 240 hours of calls. You’re going to get enough leads. You’re going to have about 2,520 contacts, 168 leads from that. You’re going to go on probably around 18 to 20 appointments. Of that, you should be closing twelve.
This is over time. You got to do the lead follow-up. You’ve got to be in front of these people. You’re going to constantly be adding new people to your pipeline because you’re replacing the ones that are coming in. These are the numbers. All we do is study the numbers of the people in our coaching program and the numbers of our businesses. Nine hundred and sixty hours for twelve deals with your experienced phone prospector. That’s an average deal size of $10,000 that’s across the country because some places are way more, some places are way less with the price points.
If you hire somebody that you want to get for $4 or $5 an hour of 4,800 hours, they have to call. You’ve got to hire 1,000 of them. I would avoid that. Let’s get excited about this. A hundred deals of $10,000 is $1 million. That’s 2,000 hours for you if you want to keep it. I know you’re not going to do it. You’re going to start getting these deals and you’re going to start hiring people. That’s great, but use these numbers to factor into your KPIs and your business analytics so that you can have accurate assessments and expectations. Is this all making sense, Mike? Is this broken down clearly?
I want to clarify. What you’re not saying is if you spend twenty hours on the phone, you’re not going to get a deal. You’re saying, if you spend twenty on the phone, you’ll get a deal over the next 90 days?
Right. They then start popping. You’re building consistency up.
You are building the pipeline.
When you talk to 2,520 people on distressed property, this is why we push getting distressed property list, driving for dollars, probates pre-foreclosures, tired landlords, tired multifamily owners and vacant land, all of these lists. If we’re targeting those people and we’re using the TTP script, you’re calling distressed property lists. You are going to get those twelve deals.
What I also took away, Brent, is if you’re not going to make the calls yourself, go with a managed VA company with sales experience. They should expect to pay at least $10 an hour.
If you are interested in joining the most proactive group in real estate investing, it is the TTP program. Go to WholesalingInc.com/TTP. Scroll down and check out the hundreds of testimonials. Check out what the program is about. If it feels good in your guts, then sign up for a call. I look forward to working with you.
About Brent Daniels
Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…
Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!
Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…
A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!