It’s time to talk about the right time to hire an acquisition manager. We spend alot of time talking about this in the Mobsters Lounge (our secret Facebook Group for Members only). Now I feel like I have to bring it to the main Blog, where thousands of investor frequent on a daily basis. This is a very pressing and important topic in today’s fast paced business of real estate wholesaling. So let’s break this down.
I’m currently working with a coaching client that has plenty of experience as a rehabber. he typically gets his deals from the MLS, fixes them up and sells them to a retail buyer. He decided to tackle the business of wholesaling as a means to locate his OWN properties, cherry picking the deals that were the most appealing to him and then wholesaling the leftovers.
We started with Step # 1- locating Prospects. We did a marketing campaign of about 3,500 names and got a response of 45 people. Exactly what I was hoping for. We started going through the leads one by one, determining who needs a call back, and exactly where to move these sellers in the funnel.
After 2 weeks of reviewing leads with my client, I realized that he was quite overwhelmed with the whole process, and was having a hard time catching up with all of these leads.
Not having any leads is a big problem, but having leads that you cant handle is an even bigger problem. This means that you spent your money to generate some leads, but they may all end up going right down the drain because you either don’t have time to get to them all or don’t WANT to talk to them.
Pre-screening sellers is by far the most grueling process of the real estate wholesaling funnel. It can be frustrating, daunting and downright bullshit. But it must be done and it must be done in a timely manner.
Every lead should have some type of action taken within 24 hours. These seller have a shelf life and other people are competing for their business. So it’s essential that you’re professional and are moving forward with the steps.
The ultimate goal of every real estate investor should be to generate a consistent flow of motivated seller leads, and constantly be working on new leads that are entering the seller funnel. The challenge with most people is that they don’t have the time to manage the leads once they do enter the funnel. Time starts ticking away and your chances of winning the deal get lesser by the minute.
If this sounds like something you’re faced with , then it might be time to hire an acquisition manager.
I suggest that you first must know how to handle the seller leads, and know what type of action must be taken before you can train someone else how to do it. In my opinion, this means closing on 5 -1 0 deals yourself. That will give you enough of a buffer to have talked to enough NON MOTIVATED sellers so that you can easily identify a MOTIVATED seller.
Here’s a checklist to help you determine if you’re ready to hire an acquisition specialist/manager:
You have closed at least 5 wholesale deals where you’ve dealt directly with the seller. (No Co-wholesale deals or MLS)
You’ve launched your own lead generation campaign and pre-screened at least 100 of your own sellers.
You can clearly identify a “motivated” vs a “Non-motivated” seller.
You don’t have analysis paralysis. (Which means you can’t determine if it’s a deal or not).
You have a full time job or just can’t find the time to respond to sellers within 24 hours.
You’re losing deals because you’re not following up fast enough.
You log in to your CRM and see a list of leads, but don’t know where to start.
You get busy with other tasks that need to be done, and neglect the most important ones (sellers).
You don’t mind giving up a portion of your profit so that you can focus on managing your business more efficiently.
You like the idea of having a “front man” to handle the sellers for you.
If some (or all) of those bullet points sounds like you, then you might be ready to move toward hiring an acquisition manager.
Ac acquisition manager handles all of the pre-Screening of incoming seller leads, moving them down the right path of action, scheduling appointments, taking photos, doing rehab estimates, and even negotiating awesome deals with sellers.
I’ve had an acquisition manager on my team since November 2015. She started as a brand new person in the business, and I’ve trained her to be very aggressive and effective with her time. She has proven to be a very valuable addition to our company. Having her on the team played a role in making 2016 our best year ever in real estate wholesaling!
It’s a big leap of faith to put this role into the hands of someone else, but it sure does pay off with a little patience and training.
Good luck in your quest to build a team that can conquer anything! No goals are too high for you, and you can certainly achieve anything that you set your mind to.