Why Having Tons of Leads Can Be Bad! | Wholesaling Real Estate

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If you’re new to my channel my name is RJ Bates III. Myself and my partner Cassi DeHaas are the founders of Titanium Investments.

We are nationwide virtual wholesalers and on this channel we share EVERYTHING that we do inside our business. So if you’re looking to close more deals - at higher assignments - anywhere in the country… You’re in the right place.

Who is Titanium Investments and What Have We Accomplished?

Over 10 years in the real estate investing business
Closed deals in all 50 states
​Owned rentals in 12 states
​Flipped houses in 11 states
​Closed on over 2,000 properties
​125 contracts in 50 days (all live on YouTube)
​Back to back Closers Olympics Champion
Trained thousands of wholesalers to close more deals

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Chapters

• 0:09 The Lead Hoarding Problem
• 0:24 Close Or Kill: A New Standard
• 2:35 Designing A Clean CRM
• 3:15 Lead Lifespan And Decision Points
• 5:15 Valid Follow-Up Vs Dead Leads
• 7:29 KPIs, Costs, And Real Opportunities
• 9:56 Empowering Closers, Outsourcing Revivals
• 12:01 Managing Queues For Daily Wins

Transcript

SPEAKER_00: 0:09

Oh man. Well, apparently we need to talk about this. Having a bunch of leads is not a great thing. This got brought up during the Titanium University implementation call yesterday. And uh man, it sparked a great debate. Apparently, we have an issue inside of our industry that I was not aware of. I I thought I was doing a pretty good job of keeping my my little thumb on the pulse of where everybody was, but apparently the majority of wholesalers are hoarders. Hoarders of leads, right? They want to chock fool their CRMs of a bunch of dead leads with the hopes that the gold is in the follow-up and we can resurrect these zombie leads from the dead and create something. Now, here's the thing: you guys can chew me up and spit me out in the comments. You can tell me about all of your deals that you've gotten from months and months of drip sequences and follow-up calls and voicemails. I know that we can get deals from old dead leads. I'm not denying that. What I am wanting to change the thought process around wholesaling is that when you're on the phone with the seller, the objective of that conversation is to come to a resolution of either receiving a signed contract or finding out we are not their solution and killing that lead. And here is the reason why I want that to be the case. I want my acquisitions team to be able to log into their CRM and see right in front of them that each one of those leads that exist inside of that CRM are an opportunity for them to make money today. I do not want an acquisitions manager to sit there and call a lead over and over and over again, asking the same questions and trying to resurrect that lead from the dead, even though they told you three months ago that they're not in a position to sell that property for the discount that we need. Now, let's go back to the lifespan of a lead. It comes in, it's a new lead, it's sitting inside of the new lead status inside of your CRM. Your job is to then get that seller to answer the phone and communicate with you so you can then determine the price that they need, their motivation, and everything that's going on as to why they would need to sell that piece of a real estate for a discount. And if we are the solution, then you get them to sign a contract. Otherwise, you should be pointing them in the right direction to what is their best solution, whether that's hiring a realtor, a short sell specialist, listing it for sell by owner, whatever that is, you should be educating that seller on their best solution. This is how you can have a 100% success ratio with your leads. Because no matter what, you are pointing them in the right direction. Now, if we are ending the conversation in a can I call you back in 90 days to see if your situation has changed, essentially what you're doing now is you are signing yourself up to be a cold caller later on in the future, where you are always going to be following up with leads that have already told you no or you have told them no. And so I want to be very aggressive inside of my wholesale operation where the acquisitions manager has 100% rights to kill that lead, move it to dead lead, and then be able to stare at a queue of leads and say, Hey, these are all the opportunities that I have to lock up a deal today. Otherwise, you're going to end up with a queue of leads of hundreds, if not thousands, of leads that you're always trying to get them to answer the phone and hope and pray that their situation has changed. And that is not what I want my acquisition managers doing. I have no problem hiring a virtual assistant to resurrect dead leads, but that's not where I want my closers spending their time. That is not the skill set that I want them to have. I want them to be able to look at a fresh set of leads and say, there's a new opportunity for me to be able to close a deal. So when I say a bunch of leads is for losers, what I mean by that is I'm not calling you a loser. It's a losing mentality. You're afraid to walk away from the no when you should be embracing the fact that you're not the solution for that seller. Now, during this conversation, there was a bunch of questions, and rightfully so. If you have not been doing this, this kind of is a shift in your mentality to your business. Some of the questions that were asked of me were what do I do with a lead that can't sign today? For whatever reason, a valid reason. Like, hey, it's an inherited property, and I have three siblings that I need to check with. Hey, I have a spouse that I need to check with before I can sign this contract. That is perfectly okay to move that to the follow-up status inside of your CRM. You do not kill those leads. That is a valid reason. Another example was what if we're just slightly off on price? Say it's 15, 20,000,$25,000. Well, that's a viable lead. That could be something that could be converted 20, 30, 40 days from now. And that happens all the time. I'm not saying kill those, I'm talking about the ones where the after-repair value is$250,000 and the seller says, I want$275,000 because I know what I've got. Okay. Now there are people that are saying, I'm afraid to kill that because I spent money on that lead. And what if their situation changes 90 days from now? Well, you could build that bridge and tell that story over and over and over again and never get rid of a lead. And then you have no idea how many real opportunities actually exist inside of your business. See, I want to be able to look inside and say, all right, I know for a fact that today there are actual real leads that can be signed and closed today for us to make money. If I'm staring at a huge list of follow-ups, a couple of different things happen. One, my acquisition managers are going to be demoralized by the amount of follow-ups that they're having to make that have already told them no. Two, from a business, we are now running on hopes and dreams and not the reality that actually exists in front of us. If an acquisition manager is staring at 250 follow-ups, that's not 250 opportunities to make money. Maybe we could pull one or two deals out of there, but you're gonna have to follow up with the 248 no's that already told you no. So there's not a reality there. And so we start accumulating leads, and it becomes contagious inside of our business where we're always clinging on to the hope. I want to be more realistic about what's happening inside of my business. Track the real KPIs of what is taking place. We buy the leads, what's our contact rate? From the contact, how many leads do we need to get to a contract? And then from there, how many contracts do we need to get to a close and funded deal? And then what is our average assignment fee per close it funded deal? Now we can reverse engineer and know how much does it cost us to get to a close and funded deal. Now we know as a business how much money we're making. But if we're always clinging on to these leads that are already no, they're already dead upon arrival, we're just going to be running in circles and never coming to the realization that we should have killed that lead months ago. I want my team to be efficient, I want them to be aggressive. I I consider myself the coach in my organization and the acquisitions team and the dispositions team as the players. Players make the plays. If I'm always sitting there and micromanaging them and saying, we're not going to kill that lead, then at the end of the day, they are going to feel like they do not have the freedom to sit there and make plays inside of my organization. They're always going to feel like I am counting every single penny. I'm sitting there and saying, no, I bought that lead. I need you to continue following up with it because, as an industry, that is what we have continued to say. The gold is in the follow-up. No, the gold is in your ability to get a hold of a seller and to close it when you are the right solution. Actually getting to the point where you can resolve the seller's solution on that moment of truth. When you have them on the phone, is it going to happen each and every time? Absolutely not. There's going to be scenarios where it takes two, three, four, five dials. But the reality of it is, when you have them on the phone, your intentions as the closer should be to close the deal or kill that lead. And when you kill the lead or you get a signed contract, what happens the next day? You get a new lead inside of your queue of leads to replace that one. So this is how I always want to manage the team. If my closer shows up and their queue of leads is 50 leads, and throughout the day they get one signed contract and nine dead leads, they're down to 40 leads the next day. I want them to receive 10 new leads that next day. So they're always maintaining a queue of 50 leads to work on. And they they now know this is what my opportunity is here at Titanium Investments. Otherwise, you're just gonna be staring at a bunch of hopes and dreams. And yes, like I said earlier, I'm sure you guys could come in the comments and say, I disagree. And this is how I disagree, RJ, because I've had all these closings that have come from dead zombie leads, and you would have walked away from them. I'm not saying you never have to work those leads again. It just shouldn't be your acquisitions manager. Have somebody else that has time and can work cheaply, go call each one of those leads and see if they can resurrect them and then pass off those warm, hot, inbound leads to your acquisition managers who are the skilled players on your team. So I can't wait to hear what you guys have to say inside of the comments because I know this led to a several hour long conversation inside of TU's implementation call. So I can only imagine what it's gonna be like outside of TU. Let me know what you guys think in the comments. Regardless, show me some love, like today's video, and we'll see you guys tomorrow.