Getting Prepared for Sales Before Sending Offers
Jack Butala: Getting Prepared for Sales Before Sending Offers. Every Single month we give away a property for free. It’s super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don’t even have to read it. Thanks for listening.
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hi.
Jack Butala: Welcome to our show today. In this episode, Jill and I talk about getting prepared for sales before sending out offers.
Jill DeWit: Not too prepared.
Jack Butala: Great show today, Jill. Before we get into it, let’s take a question posted by one of our members on landacademy.com, the free online community.
Jill DeWit: Cool. Seriously, we’ll laugh about this because there’s ways you can be too prepared and we’ll cover that, too.
Jack Butala: Analysis paralysis. Yes, we will. That’s a good point.
Jill DeWit: Exactly. Here is the question. George asked, “I can devote a strong 10 to 20 hours a week to this business. I have not mailed a single piece yet, still listening to the DVDs on the first run. How many direct pieces would you drop on that schedule a month to keep the deal flow coming or flowing?” I love it. I know. I know. I know.
Jack Butala: Go ahead. Yeah, go ahead.
Jill DeWit: Our 1,500 is a pretty good thing. If you could devote that much time, if you can get into a system that maybe you’re in the middle of the month or whatever your cycle is and just keep doing it every 30 days, 1,500 offers going out at a time and don’t look back, it’s going to work. Jack?
Jack Butala: 1,500 has always been the magic number. I think 1,500 the first month for sure and then take a look. You want to turn it into a cycle. If I was just brand new and I really was comfortable sending out data, I would do 1,500 the first shot and then probably about a thousand the second month. Take a deep breath and see if it’s too little, a lot. That seems to be the magic number as long as you’re grabbing the data properly. Then get on a 15 unit cycle. You’re going to get some serious deal flow coming in. Get creative about the counties that you’re using. That’s the key, too.
Jill DeWit: Right. Once you find one, this is what our members figure out, too … Once you have a knock it out the park mailer, stay with that county. My gosh. I did so good on the five acres. Now, I’m going to reach all the people with 10 acres. Now, I’m going to reach all the 20 acres and stay with that.
Jack Butala: You’re going to find a little subspecialization. That’s not really what the show is about. A real quick example is we have a member who for a lot of reasons chose to help this person settle an asset and an estate. It’s really just a matter of filing some papers and stuff, paperwork with the counties. Now, that’s he’s specialization.
Jill DeWit: Exactly. Now, we all go to him.
Jack Butala: It’ll find you. It’ll find you like that. That’s a good question. It’s a very good question to ask. Go out with 1,500. Don’t go out with 200 just to see what happens. That’s really dangerous.
Jill DeWit: Exactly.
Jack Butala: If nothing happens, you get all upset.
Jill DeWit: Exactly. Thank you, Jack.
Jack Butala: If you have a question or you want to be on the show, reach out to either one of us on landacademy.com. Today’s topic is the meat of the show, getting prepared for sales before sending out offers. Jill?
Jill DeWit: Take it away. This is my area, Jack.
Jack Butala: It is.
Jill DeWit: We just relaunched our website yesterday. Yay. We had to rewrite some things on our founders’ descriptions about each other. It’s interesting reading yours, Jack, and reading mine. It really comes out your strengths, and where you are, and then how different I am. It’s so great because in a real healthy way, boy, do we complement each other. I cannot imagine being this successful on my own. There’s just no way.
Jack Butala: Me either.
Jill DeWit: It’s so interesting. When we talk about sales and psychology things, I love it. You know it all. This is one of the areas that I have the most experience in, and I get to share some of my stuff, so thank you.
I have three points I want to make about being ready for sales before you flip the switch like this guy George is about to do. One is be ready but not too ready. You want to have a mental game plan. You want to think about how this is going to go. You want to have your script ready, whatever it is to help you when offer starts coming in or potential sellers start calling you back. You want to have that thought out. You want to have your website ready. You want to have some things like that. It doesn’t have to be perfect. That’s why I say not too ready. Don’t spend $4,000 in four months making your website perfect before you do a mailer.
Jack Butala: Great advice.
Jill DeWit: Don’t get a pretty office, and fancy business cards, and the perfect office chair, and all that stuff before you send an offer.
Jack Butala: There’s two ways to start a company in my opinion – by the seat of your pants like most of us do it. You just want do enough to not embarrass yourself and establish some revenue. The second way is, and you read about this in the paper and this is how private equity groups do it, is you raise a bunch of money. Get several million dollars. You get professional, professional, professional people, professional website developers, and you spend that private equity group’s money. You give away half … Usually, half of the equity in the company to do that. Uber started like that when they needed to because they needed to develop an app that’s [inaudible 00:05:44] but perfect. That’s not how we roll here. Jill paints a picture. She’s done it several times over the years where your pencils are all in the cup on your desk and you’re-
Jill DeWit: Exactly.
Jack Butala: Go ahead and paint it again.
Jill DeWit: The business card. You got your tape dispenser. Everything matches.
Jack Butala: Everything smells nice.
Jill DeWit: You’re like, “Now, we can flip the open sign on the door and now we’re ready for customers.” No, don’t do that.
Jack Butala: No, don’t do that.
Jill DeWit: That’s what I mean by be ready but not too ready. That’s point number one. Point number two is, as you’re getting prepared for sales before you send offers here, don’t stress … I talk to people … I do consulting on this stuff, too. Don’t stress too muchabout people calling you back and don’t be afraid to answer the phone. They don’t know what to say also. I always tell folks, “Be ready. It’s okay.” You’re going to make a few mistakes. Have a cheat sheet there. There’s going to be some things people call you back and you’re going to go, “Shoot. I forgot to ask on that.” So what? Call them back. “Hi, Mr. Smith. I totally forgot to ask you. Is your wife able to sign because I noticed she’s on the paperwork here, or I’m sending up the notary. I forgot to ask your address.” That’s okay. Don’t be afraid to make little mistakes. They don’t know what you know or don’t know. This is new to them, too. When I say they, I mean, the sellers and you’re working on buying these properties.
Jack Butala: Sales 101. I’ve always been told this and I truly believe it. The more contact you have with somebody, the better. If you’re calling back with a question, not a sales pitch … “Geez, I forgot to ask you this, Mr. Smith. Is everybody available to sign?” You’re further now establishing the relationship and the trust legitimately, don’t you think? Sales is your area.
Jill DeWit: Don’t purposely do it.
Jack Butala: Yeah. Right, right.
Jill DeWit: If you forget something, don’t want to sound like you’re not with it. Don’t make 18 phone calls back and say, “I’m establishing trust. I called them 18 times.” No. Now, you’re starting to sound like you don’t have your act together. If you do forget a little something, have your notes ready. Think about what you need to know and just have those simple notes ready. I have a cheat sheet that I share. I’m going to put it out on our website at some point now that we have a new website. Yay. I’m going to publish that for everyone to copy, and download, and share. I’m going to put it in one of our member newsletters here soon, too.
My little thing when I’m asking people so I don’t forget to say little things I learned over the years like, “Do you have anything else to sell?” That’s a great one.
Jack Butala: Yeah, Jill. That’s a good idea.
Jill DeWit: When you have this in your head and you have your little cheat sheet, your cheat sheet is going to be constantly evolving and changing. You’ll get better and better about this. That’s number two. Then point number three is about getting ready for sales before you send offers is hang in there. 10 deals from now, you’ll feel like a pro. That’s really it. Yeah, you’re going to goof up. Expect it. Are you going to make mistakes? Heck, yeah. Expect it. Be ready for it. Don’t get upset. Don’t get hung up on it. Don’t let it bring you down. Expect you’re going to go up. I’m not going to do that one again. It’s going to happen.
Like I said, if you hang in there … 10 deals is a good number. When you have 10 acquisitions and preferably 10 sales in there, you’ve gone 10 properties through the whole cycle, A, you’re staring at a nice bank balance and you’re feeling good.
Jack Butala: Hopefully.
Jill DeWit: Exactly. B, now you’ve got the gist of it. You’ve got this.
Jack Butala: Yeah, you’re right. Just concentrate on getting past that first deal because it’s going to be ugly. Your first deal is not going to be your best work. As the old adage goes, everybody remembers their first real estate deal like you remember your first kiss and all that stuff. I remember every last detail. I remember the seller, the buyer, the whole thing in my first deal and it was not pretty.
Jill DeWit: That’s so funny. I don’t. Is that hilarious?
Jack Butala: Really?
Jill DeWit: No. Mine all blurred together. I know specific deals because they were like so … I remember because they were so knocking out of the park like, “My gosh, I can’t believe we just made that thing.”
Jack Butala: I doubled my money. I sat down and I said, “This is what I want to do.” I knew it wasn’t a fluke, and it wasn’t through a mailer or anything. I found a property in, this was how long ago it was, in the ’90s. I found a property in the paper, in the classified ads of the paper. I cleaned it all up. I bought it for cash, cleaned it all up and sold it,
Jill DeWit: That’s fantastic.
Jack Butala: … for double.
Jill DeWit: I love it.
Jack Butala: Just by changing the environment that it was being sold in.
Jill DeWit: There you go. You’ll feel like a pro 10 deals in. You got this. Jack?
Jack Butala: Any last advice for getting prepared for sales before sending out offers, Jill?
Jill DeWit: I know it’s hard to say, support. Here’s the biggest difference right now. When you started this, Jack, you had no one. When I started this, I had you. Now, anybody starting this has so much-
Jack Butala: Has us and everybody in our group.
Jill DeWit: Exactly, for free like our podcast. Well, there’s one. All our blogs, there’s two. Our website, all kinds of stuff, there’s three. Our online community, there’s four. There’s so much out there. Maybe a TV show coming or something similar to that. That’s a possibility.
Jack Butala: Right now, we do something called data review and deal review. You can schedule it with me. I’ll look at the data before you send it to the printer and I’ll say, “Yeah, this is probably going to work or you totally miss the mark on one detail here.” The same thing with deals. If you go on our website, there’s a collection of deal reviews on a video that I’ve made. It is video of me talking to a member, a series of phone calls, one member and the properties that he purchased, and how it goes. It’s actually pretty cool stuff. You’re right, Jill. There’s a ton of support. That’s why we do this.
Jill DeWit: Exactly.
Jack Butala: Join us in another episode where Jack and Jill discuss how to use information. That’s me.
Jill DeWit: Inspiration, that’s me.
Jack Butala: To get just about anything you want.
Jill DeWit: We’ll use it everyday to buy property for half of what it’s worth and sell it immediately.
Jack Butala: You’re not alone in your real estate ambition. Man, that first deal brings me back.
Jill DeWit: Does it?
Jack Butala: Yeah.
Jill DeWit: Give me a funny one. Give me a deal that went totally sideways that you’re like, “I screwed that up.”
Jack Butala: All right. I’m trying not to get upset about it. There was a guy that was on my A-list for quite sometime, and this is his negotiation tactic. He and I, wholesalers like this, they all do business with each other, right? Some of them have ethics and some of them don’t. This guy does not. His initials are as follows, DW. His tactic is to agree on a price, and review everything, and agree on the properties, and then an hour before payment is made and there’s contract at the very end … These are huge deals, by the way. 500 unit property deals. They’re not like 140. We haven’t done anything with this guy in years. He says, “I did some research and I just can’t pay the price that I agreed to.” There was one time …. The first time he did it, I said, “All right. You know what? I’ll split it with the guy.” That’s it. I didn’t even look at that as a negotiation. I just said, “Maybe this guy is right. Then the third time it happened … We just don’t do deals with him anymore.
Jill DeWit: I know what you’re talking about.
Jack Butala: It’s hundreds of thousands of dollars.
Jill DeWit: I know.
Jack Butala: It’s not 140 acre property.
Jill DeWit: You’re buying so many properties like buying a huge list. That’s just not cool.
Jack Butala: If you’re brand new at this, don’t be that guy. There’s better ways to negotiate.
Jill DeWit: That’s so funny. That’s hilarious.
Jack Butala: Information and inspiration to buy undervalued property.
If you have any questions or comments, please feel free to email me directly at jack@LandAcademy.com.
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