Here's a way to get on the short track to making real estate investing work faster for you. Having a team of other people to bring you leads is invaluable to your bank account but it doesn't happen by accident. Admittedly this technique is harder to achieve for newbie investors who have not done many or a lot of deals. The more you can show a history of being a great investor, the easier it will be for you to build a strong team. As you become a more successful real estate investor, more and more people will look to you as an authority figure to look up to and you can capitalize on this by getting free quality streams of business.
Most businesses will often struggle with finding motivated employees that will make a difference in their company. If you wanted to get a new employee, how would you go about it? The chances are everything you do is what everyone else is doing and so you should expect pretty much the same results. You might advertise in a newspaper, in a job website or through an HR company. Then you interview some of the employees to determine which one you feel is the best. What if there was a better way?
I invite you to overused clich #1215, “think outside of the box.” You're only going to get everyone else's results if you do as they do. To reach that next level, you simply can't do the same things.
Let me show you how you can first recruit a new employee and set clear high expectation that will make you a great living. Then I'll show how you can get them to bring you deals without paying for that employee.
How Do Top Schools Get the Best Athletes?
Well duh. They go out and recruit them. So why would you post an ad and then patiently wait for employees? Chances are that you know a competitor who's paying less than you could and is getting all kinds of productivity from a quality employee. Make them an offer to work for you. Your goal is to find someone you can give a more fulfilling opportunity to.
Go looking for employees in a competitor's business. You are not committing a crime by offering them an opportunity to join you. In order to be the best, you must do all of the things that lead to being the best.
Don't Over-Exaggerate Qualifications and Learn to See Potential Instead of “Already Is”
Your education is the most valuable thing you can learn but I admit that I've always felt though that traditional school is overrated. It teaches you oh so little about what you really need to know in the real world to earn an income.
Attitudes and behaviours are the most important traits for employees to possess. Often the schooling will reflect their diligence with these behaviours but that isn't always true. There are some people whose life circumstances prevent them from going to school or there are students who will one day change the world but they are not there yet. The world is full of people who lack the education to demand high pay. However, many of these people are currently making excellent employees for other companies for very insignificant wages.
Have you ever gone out to eat and you saw one employee that is clearly heads and above everyone else? For measly pay, they are positive and efficient in their work. That is what I call employee “potential” in a nutshell. These are exactly the types of people you want to recruit in your business. They are often prone to working harder for you to prove that you gave them a high income chance for a good reason.
Potential employees are everywhere. Don't leave the house without looking for them. You want to find positive, motivated, hard working, efficient and punctual people. If they have already mastered that, you can teach them anything else that they need to learn. Open your eyes and learn to see these people at the grocery store, gas station, restaurants, etc. Don't be afraid to ask them how their current job is going. Without knowing your intentions, they'll think it's just a general interest question anyways. Building a quality real estate company is like a puzzle and these are great puzzle pieces to add.
Hell Freezes Over With No More Resumes
Do you know what other companies looking for new recruits do? They ask for a resume and sometimes a cover letter. It gives your prospective employee a whole lot of time to B.S. what they're really about. Test your employee's ability to be creative and think on their feet by challenging them right away especially if you've found them.
I personally force people to think on their feet by giving them 30 seconds to come up with a 3 sentence or less response on why I should hire them. I need someone quick who can think on their feet who deals well with other people. I can't imagine a faster way to find that out. What's more valid anyways, an employment history or demonstrating that they can do the job today? Ask them a question that applies to the real job. Potential employees quickly learn what is expected at our company.
Create Your Own Competitive Environment Reality Show
Have you ever seen Donald Trump's reality show? The tests they endlessly endure to prove themselves to him are ridiculous. Think about this though. When they finally achieve the goal, how can they have worked that hard and then give up? They can't. It creates this huge sense of accomplishment within those people to have been identified as the “winner”. You can create your own reality show environment. Immediately set long term large goals that employees must continually be tested on and strive for.
What if the reward for working with you was $100,000? Make them aware that they're up against other candidates. Enforce clear expectations. It's funny because people work so hard to win reality shows. They can get so caught up in the competition of being the best that they actually don't realize what they're even going for anymore.
Provide great opportunities and have people work to get them. Make them show their willingness to take hold of that opportunity. It is a drastically different mentality than one where an employee strives to do as little as possible to get by.
Ask questions from the start that enforce your high expectations.
“Mr. Interviewee, let's say you are hired for this position. I always think that each person's responsibility is greater than just their individual job. Knowing what you now know about us, how would you help us get more customers in the door without increasing spending? “
“What could we do to improve our advertising?”
“How would you make your own job better?”
They will usually struggle to find good answers because it is just so radically different from what they are typically asked. The point of the question is that it sets a tone right off the bat that they are not just responsible for one task but that they are responsible for the success of the company as a whole. Constant critical thinking will be required from them instead of just worrying about the quick lazy fix that most employees will be satisfied with. Your company will quickly succeed when you have 10 people thinking like an owner to see efficiency and generating leads like you do.
The reality show tests begin from day one. Lay out specific short term and long term goals to lead them to the next step in their employment as well as the clear rewards for achieving them. You need to know right away how much they plan to make. The two of you work out a series of goals to get there within the required time period. People always work better with specified goals and you are essentially forcing them to create their own. Just like the reality show, always be testing and putting new goals up. Make them constantly earn the next step and the next step after that. If the rewards are worth it, they'll either take hold of the opportunity as a quality employee or walk away under not wanting to do all that as a less than stellar employee. Give someone what they want financially through real estate and you provide opportunities to get there, they will be extremely appreciative. In the end, you'll have one hell of an employee.
Wait For the Right Fit If Need Be
Never fill a position just because it needs filling. To be the best requires no weak links in your company. Quick fixes always have drastic long term effects on a company.
Most pro poker players fold over 80% of their hands. When they've waited until receiving a good hand, they get aggressive with their moves. Similarly, in finding employees, you'll have to fold a lot more than play. Get aggressive when you find the right hand dealt to you.
Here's how you get yourself a free productive employee
When you're recruiting, this works better because the person won't even realize that you are actually testing them for their responses until it is basically over. It's really a job interview in disguise.
1. If you don't mind me asking, how do you like this job?
You are looking for positive and upbeat answers.
If they complain about their job and then don't go looking for a new one, whose fault is that? That last thing you need is an employee like that.
2. If you could make a lot more money, would you?
obviously everyone says yes
3. What's stopping you from making more money?
a perceived lack of education, schooling, kids, etc
I'm happy where I'm at I guess. Ambition is a must for your position.
3. I've got a company that I think might be willing to pay you right now. I'm not sure you'd be interested in it
Them: No, I'm interested (or something like that).
You: Well you know all those people who talk about making money doing real estate investing?
You: Well I'm one of them and I'm looking for an executive to help me with my operations. Do you want to hear about it?
4. Ok first though, I'm giving you 30 seconds. Tell me in 3 sentences or less why I'd be stupid not to hire you.
Creative response that shows they would deal well with people.
Generic response. Don't be afraid to stop them and tell them “you can do better than that.”
5. Can you handle starting out part time to prove yourself to me? You're going to be up against other people I'm considering for the long term as well.
6. Would you rather be paid a big commission for helping me put together each big deal or would you rather be paid hourly?
Commission. You'll only pay them for helping you close. You'll essentially acquire free hourly assistance.
Hourly, since chances are you may not be able to pay it. Even if you can, why would you pay someone hourly in real estate? Realtors get paid by commission. You can respond with something crass like “if you don't help my business, do I get to ask for the money back? It's just that I pay for performance only. I can make you money but it has to be worth my time as well. What if we tried it out for a week on a commission basis to see just how serious you really are?”
You can use your new employees to call FSBO ads, which always generates motivated sellers. They can also perform various tasks you don't want to take the time to do yourself. Have multiple candidates complete the same task to see who is willing to go the farthest for your opportunity. You will end up finding gems that you actually want to work side by side with for the long term.
If you manage multiple employees, you can have a person designated to manage your marketing efforts, one to meet with your motivated sellers, one to use for due diligence and all the other relevant tasks you require. If you're committed to long term success in real estate investing, having a qualified team to handle your deals from start to finish is an absolute must. Learning how to build a creative team creatively to buy creative real estate is a great way to build an empire creatively.