Are you building a business or just chasing deals?

One of the huge benefits I get by being a Team Leader with Keller Williams is access.  Access to the highest level thinkers and doers in real estate.  The talent I can tap into at any given time is amazing and makes such an impact on what I do each day.  Out of this I, in turn, get to make an impact on my staff and associates.  And that is what it’s all about…being a resource to help others live their best lives and build a thriving business.  Notice I said “Business” and not real estate business.  You see we view our associates as business owners and not just agents.  This is a fundamental difference between us and the rest of the industry…that we work for our associates…they don’t work for us.

mreaIn the Millionaire Real Estate Agent (MREA) book Gary Keller shares the 4 models that comprise the KW way.  They are the Economic, Budget, Lead Generation and Organizational models.  I work each day to ensure these are ingrained into our associates so they can do what the book teaches.  And that is to build a career worth having, a BUSINESS worth owning, and a life worth living.  So MREA is not something you read once and set up on a shelf.  It’s an operations manual that is to be referenced constantly as you move through your career.  Which brings me to my point and poses a question.  How does one really tap into MREA at a high level and maximize it’s lessons to build a profitable business?

The answer…Commitment To Excellence!  CTE is a platform that literally brings MREA to life and allows you to implement each of the four models.  This amazing tool incorporates each of the models, their formulas, and strategies into one seamless tool where you can plan, execute, and track your results in real-time.  And it grows with you.  So as you add staff and additional team members you can plug them in and watch as they work towards accomplishing their goals and your teams as well.  CTE address the six reasons agents fail.

  1. They don’t know their numbers.  In fact I’d go so far as to say most agents don’t even know what numbers they should know.
  2. They focus on buyers instead of sellers.
  3. They don’t lead generate consistently.  MREA teaches the 4 Laws of Lead Generation as a fundamental aspect of a highly successful real estate business.
  4. They fail to hire the right people.  KW also teaches Recruit Select so you can constantly attract talent and ensure they are in the right job.
  5. They fail to implement systems.  CTE is that system!
  6.  They don’t write a business plan.  This is incorporated into CTE as well.

I would like to invite any real estate agents who are out there just chasing deals to take a hard look at implementing this system.  Ask yourself what challenges do you have?  What is the one thing about your business that keeps you up at night?  And where can I get real help in building the kind of business I deserve?  Right now CTE is exclusive only to KW associates.  At KW La Mesa we provide it FREE to all of our associates.  If you are with KW ask your Team Leader about it.  If not I invite you to connect with me to learn more about CTE and Keller Williams.  There is a reason we are ranked as the #1 training company in any industry!  And CTE is just another example of our commitment to keeping real estate an agent-centric business where our associates have the best opportunity to grow, thrive, and create any opportunity they want.

CTEFlyer

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Lead Generation Law #3: Communicate with your database in a systematic way

Commune  Welcome back.  I have gotten some great feedback and comments on the first two parts of the lead generation laws and I wanted to say thanks!  I always appreciate comments and feedback so keep it coming.

Now that you have built your database and are feeding it with contacts, it’s time to move to the next step which is communicating with your contacts in an effective manner.  In the last post I talked about the importance of creating groups for your contacts.  Well, this is where that will pay off.  Because you grouped your contacts you now have a systematic method from which to begin.  You can now create specific messaging for each group and that will help you establish top of mind perspective in these potential clients.  And that is a constant battle, staying top of mind.  According to the Millionaire Real Estate Agent, 76% of sellers have one agent in mind and 16% have two.  On the flip side, 59% of buyers have one agent in mind and 22% have two.  So the question is, “How do you become one of those top two agents in your prospects mind?”  Simply put, you have to create targeted messages to each group based on their needs.

Remember, it’s a numbers game.  Top agents know that when it comes to lead generation the quality is in the quantity.  They constantly feed the machine and target market to their groups.  Your lead generation is like a wheel.  You are the hub and you have spokes shooting out.  Each spoke represents a lead source or in this case a target group.  You have the FSBO’s, the expireds, the open house leads, buyer leads, sign calls, etc.  Each group must have a targeted message based on their needs.  And those messages must be delivered consistently.  As an example, I coach agents on what we call the 8×8 system.  The 8×8 is an 8 week contact plan that utilizes various methods of contact including letters, calls, e-mails, etc.  It is designed to create that “mind share” perspective so you are positioned as one of those top two spots I mentioned earlier.  Again, it’s a systematic way to connect 8 times over an 8 week period.

Communication       You also need to focus in on all the different ways you can connect.  I like to use the “in kind” method.  If someone calls you, you call them back.  If they text, you respond by text.  If they e-mail, you reply via e-mail.  That will most likely develop later and your initial communications will be phone, letter, postcard, etc.  But don’t underestimate how your leads want to be communicated with.  Sometimes it’s a generational thing so remember the Platinum Rule of treating others how they want to be treated!  One other aspect I want to point out is that your messaging should primarily be focused on building a listings based business.  That is a huge creative angle you can exploit because research shows that if your lead generation program consistently delivers listings, you can count on marketing those listings and create a steady stream of buyers organically through the marketing of those listings.

As always, I’ll wrap up saying again, my job as the Team Leader/Chief Business Strategist at Keller Williams in La Mesa is to help you accomplish your goals.  So why not start today by reaching out to me to set up a business analysis and planning session to get you heading in the right direction?  I’ll be back next week with the 4th and final Law of Lead Generation and until then have a great weekend!

Lead Generation Law #2…Feed the Database

LeadGenLast week I covered the first law of lead generation which is to build a database.  Law #2 states, “Feed it everyday.”   You have two options when it comes to feeding your database.  You can fill it people you have met or those you have not met.  Let’s start with those you know or have met.  This group is significant in that you probably have some kind of relationship in place with these people.  But a few things to consider here.  First, as you add these folks into your system it is important to categorize these leads into groups.  Start with the people you know really well, this includes close friends, family, neighbors, etc.  Keep it simple in terms of group names so you will know exactly who is in each group.  The next group might be people you come into regular or semi-regular contact with.  This could include people from church, your kid’s school or sports activities, heck even your Starbucks barista., dry cleaner or grocery clerk.  The next group is very important as well.  People you have done business with!  Some in real estate call this group “past clients”.  I don’t like that term because it infers I won’t do more business with them.  I just like to call them “Clients”.  We’ll talk more about this group next time, but get them into your database!  The next group for the “Met” category will be those you have met in your lead generation activities but have not yet transacted with.  These folks may not be quite ready or are in the tire kicking phase.  A very important group we will discuss more as well.  Lastly don’t forget your allied services.  Title reps, escrow officers, loan officers, etc.  They are always hitting you up for leads and you need to be doing the same!

Let’s move onto the “Not yet met” category.  This group is made of people you have spoken with but have not yet had a meeting with.  Maybe they called you on a mailing or you called them during your routine prospecting time.  This group will be HUGE!  And by that I mean in terms of sheer numbers.  You will talk to a ton of people you will never meet.  But that does not mean you can’t generate business from them!  Follow the same process for adding these folks into groups, however you will most likely use more specific group names like FSBO, expired listing, cold call, etc.  It’s important to use easy to understand group names so you have a point of reference when it’s time to contact them.

The last point I want to make, and one I will expand on later, is that the “have not met leads” will be a lot more in term of the amount of people in this category.  The way it works out for lead per sale ratio is, for every 50 have not met, who you market to 12 times, will turn into one sale.  So a lot more work here compared to the met group, but again I will go into more detail next time.  I’ll wrap up saying again, my job as the Team Leader/Chief Business Strategist at Keller Williams in La Mesa is to help you accomplish your goals.  So why not start today by reaching out to me to set up a business analysis and planning session to get you heading in the right direction?  I’ll be back next week with Law #3 and until then have a great weekend!

Here’s a question, “Do you know the 4 laws of lead generation?”

get-trafficLead generation is at the heart of everything we do in real estate.  It is also the #1 issue agents struggle with!  I learned a long time ago that there are only four things we do in real estate that actually produce income.  Now, there are lots of other things we need to do, but you must find a way to stay focused on these four things.  They are, Lead generate, effective lead follow up, present your services and negotiate contracts.  If you spend 80% of your day in these areas then you will succeed.  So let’s break down the  four laws of lead generation.  And today I will focus on the first law.

Lead Generation Law #1: Build a database!

da·ta·base [dey-tuh-beys]
noun
1. A comprehensive collection of related data organized for convenient access, generally in a computer.

I know it sounds easy, right? But be brutally honest with yourself. Have you ever had a client use another agent after you worked with them? How good was your follow-up AFTER the close? I used to adopt the other agents client after close and market to them AS IF I was their agent. I sent them just listed/sold cards, market updates, invitations to events, etc. None of that happens unless they are in my database! OK, let’s get real. You know you can improve in this area, and I can help you.  You need to segment your database into two areas, people you know or have met with, and those you don’t know.  Using the proven model in the Keller Williams lead generation system the target number is 1,920 people in the MET category.  From there it is a simple process of communication with the big goal being 320 sales.  When is the last time you closed 320 sales?  Now, there is more to this to be sure.  And that’s where I come in.  As the Team Leader/Business Strategist at Keller Williams in La Mesa, CA, it’s my job to help you accomplish this big goal.  So why not start today by reaching out to me to set up a business analysis and planning session to get you heading in the right direction?  I’ll be back next week with Law #2 and until then have a great weekend!

Time for change…

KellerWilliams_Realty_Sec_Logo_RGB-revSpring time…the time of re-newel.  A time for change, growth, and opportunity.  And for me a big step in a new direction.  As of today I am proud to announce I am the new Team Leader at Keller Williams Realty in La Mesa.  This is an added bonus because I live in La Mesa…like 5 minutes away!  That’s huge because most of my career has been spent in larger regional and statewide management roles that often required travel.  I like to travel, but with a young family it can take a toll.  Who wants to miss softball and soccer games, and piano recitals?  I live for that stuff man.  So this move represents a sort of homecoming for me.  There are over 100 agents in the office, many I have known for years.  That’s a cool thing because I get to reconnect with old colleagues and meet some great (and productive) agents I did not know.  I always loved that part of this business, building relationships and getting to hang with some cool people.

There is work to be done here.  A kind of re-launch if you will.  This market center was one of the first KW offices in the San Diego region and has a great history.  But like many real estate companies, it struggled over the past few years.  The good news is this team is primed for growth and willing to step up and make some great things happen.  The goal is nothing short of market domination and continuing the tradition of serving our clients and each other at the highest level possible.

I have been keen on KW for a few years, having met with some key players in S. California.  Timing and geography always seemed to come into play, so being in my hometown makes this even more special.  Keller Williams has a long history of helping agents “Build careers worth having, businesses worth owning and lives worth living.”  I’m excited to now be a part of that.  Being able to affiliate with the largest real estate company in North America, and soon the world, has its advantages after all.  More than that however, is knowing that because KW is a company of systems and models, I get to share that with others and impact people on a daily basis.  And that’s what gets me up and going each day.

I’d love for you to reach out and connect to learn more about why I made this change.  If you are open to learning more about Keller Williams Realty you can visit:  http://redcareers.com/lamesa for information and to connect with me.  I look forward to hearing from you and here’s to a fantastic 2014.

Jason

The best real estate investment strategy is…

1031_Exchange_2For my money it’s the 1031 tax-deferred exchange.  The 1031 allows owners of investment property to exchange certain types of property and may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due.  In essence you can sell (exchange) your rental condo in Arizona and buy a duplex in San Diego.  The catch is the properties must be “like-kind” which means the properties must be investment property.  It does not matter if one is a single family home and the other is a 4 unit building.  Like-kind simply means property held for investment.

Now, there are many rules to follow, which I will cover in my next post, but I want to show you the real benefits of a 1031 exchange.  Here are the 5 main reasons to exchange, courtesy of Asset Preservation.

  1. PRESERVATION OF EQUITY
    A properly structured exchange provides real estate investors with the opportunity
    to defer 100% of both Federal and State capital gain taxes. This essentially equals an interest-free, no-term loan on taxes due until the property is sold for cash! Often the capital gain taxes are deferred indefinitely because many investors continue to exchange from one property to the next, dramatically increasing the value of their real estate investments with each exchange!
  2. LEVERAGE
    Many investors exchange from a property where they have a high equity position, or one that is “free and clear”, into a much more valuable property. A larger property produces more cash flow and provides greater depreciation benefits,
    which therefore increase the investors’ return on their investment.
  3. DIVERSIFICATION
    Exchangers have a number of opportunities for diversification through exchanges. One option is to diversify into another geographic region, such as exchanging out of one apartment building in Denver, Colorado, for two additional
    apartments – one in Los Angeles, California, and the other in Dallas, Texas. Another diversification alternative is acquiring a different property type, such as exchanging from several residential units to a small retail strip center.
  4. MANAGEMENT RELIEF
    Some investors accumulate several single family rentals over the years. The ongoing maintenance and management of what can be a far-reaching group of properties can be lessened by exchanging these properties for one property better
    suited to on-site maintenance and management. Exchanging into a single apartment complex with a resident manager is a good example of this strategy.
  5. ESTATE PLANNING
    Sometimes a number of family members inherit one large property and disagree about what they want to do with it. Some want to continue holding the investment and some desire to sell it immediately for cash. By exchanging from one
    large property into several smaller properties, an investor can designate that, after their death, each heir will receive a different property, which they can either hold or sell.

Stay tuned for the next post relating to the 1031 exchange where I will cover the anatomy of the exchange and also share a case study.