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Helping a Real Estate Wholesaler Scale — Transcript · YTtoTranscript

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Helping a Real Estate Wholesaler Scale

MoreMozi · 2,041 words · 10 min read · EN-ORIG

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Below is the complete, readable transcript of Helping a Real Estate Wholesaler Scale by MoreMozi on YouTube. Read the full text, copy any part you need, or generate a transcript for any video with our free tool.

I am a real estate wholesaler. Okay. >> Um, we're currently averaging about $450,000 a month >> Okay. >> in revenue. I would like to be at a million. >> That's your spread? That's what you're making or that's like house volume? Uh, that's gross. Okay. So gross is >> your What's What's your spread on that?

What's your take home on that? So we're at 40%. So right around 250, 240. Interesting. Weird. That's high. What kind of What are you wholesaling? >> [laughter] >> All right, so here's the um >> [laughter] >> He's >> heard of brothels. So imagine a brothel, but now it's all midgets. Okay, keep going. You're good.

Okay, but here's the challenge we run into. So we're currently at 450 average, yeah? We've had 700k months this year already. >> Okay. The challenge is every time we get to those numbers and I try to Hey, you know what? It's time to ramp up. Uh, for some reason we tend to tank to, you know,

200, 250. Okay. >> Um, I'm sick I I have cause to believe it's the sales team and just >> You know, they have those power months where everyone you know, takes home 20, 30 grand. Uh-huh. And then the month after it's like Are they pure commission or is it split? So there is a base

salary Okay. What's the split between commission and base? Um So they're at 42 base Okay. uh, per annum and then 10% of the assignment fees. Okay. of the fees. Um, all right. This is So So you have You have an ops issue. Which is sales ops. And so it's go like this is going to be

much more weedy in terms of like tactics to answer this question. Um, but it's like there's probably like 20 things that you need to be doing and you're probably doing like 13 of them and the other seven are going to be the thing that make the difference in creating the consistency of the team.

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That's at the service level. At the at the at the deep root of this is who's the leader of the sales team? I do have a sales manager. Okay. So, he or she is the problem. Because like sales at the end of the day is a culture game. Well, everything's a culture game, but like sales you can

feel it so quickly when things are good or not good because the performance the feedback clips are so fast. Um but for whatever reason, you do not have a culture of consistency within your team. I would wager that script adherence is low because you have such variability in close rates. Unless there's a change in

lead quality, which would be something else. But are the leads the same like this month as last month? >> Yes, the leads are the same. >> Yeah, so it's a sales discipline issue, which then comes down to the training cadence, the scripting, um how people are being managed on a daily basis and weekly basis in terms of their

career goals, how like you're doing morning like it's it's this is all sales ops. Um I could I could like just start talking about sales, but like this is a pure sales ops issue. And so at the like there's there's a two-step like I would approach this in two steps. Step one is we should do all the stuff

that we are not currently doing and we should be doing. Everyone should be reading the same script. If they're not reading the script, why are you on this team? Right? Uh we need to have training that's every day to make sure that they are saying things the right way. We need to make sure that everyone memorizes the

script. Some of you guys might have seen the YouTube video I put out like two days ago about this. But like they have to breathe the script. If they are not saying the script word for word, you cannot be on this team. You cannot take these calls. I'm getting these leads and not for you to go cowboy and make

up. And that then if we cannot solve that problem because for whatever reason you keep trying it and they don't adhere and they go off script because they just want to close the deals, it means you have a cultural issue, which is a leader problem. Because it means the leader is reinforcing behaviors that get people

to go off script, and there's no consequences for doing it. And so, if you want to have a consistent world-class sales team, the process has to always go above the player. No one is above the process. And I do think that 95, maybe 98% of sales teams have no idea how sales training, how sales culture, how any of

this stuff works. They just hire a bunch of people, see who closes deals, fire the rest, and so then you just have a bunch of mercenaries who work for you, but there is no culture. There is no team, and it's every man for himself. And that is what creates this volatility in sales. And some guy says something

and he closes a deal, and then the other guy's like, "Oh, I'm going to try that now." And there's no consistency across the board. And that also gets you in trouble long-term because they start promising things and making deals that you can't cash. That makes a lot of sense. I um up until

now, I mean, we have scripts, but they're more of suggestions. >> Guidelines. Yeah, yeah. I mean, No, it's I mean, like I've done a lot of sales. Um like this is a straight out of the book checklist problem. Like, we have to do all of these things. If we do this entire checklist, we will get this

outcome. If we can't do this checklist, the leader is the problem because they don't know how to reinforce culture, which then means that they're not able to get the right people on and the wrong people out, which sometimes means we might have to fire half the team to get the right people in so that we

can build the culture we need to get to where we want to go. Cuz you are in like I showed the shapes of businesses, you are in a sales and marketing business. There's functionally no delivery. Like, you're just basically like like are you are you guys doing an outbound or like smiling and dialing, or

do you buy leads from setting teams? >> is Google Ads. Google Ads? Yeah. Okay. So, you have inbound leads that are coming in and then you close. Like that's the business. Like you buy media, you sell And so like this has to be a core like you have to be world-class at this

if you want to be world-class at wholesale. Got you. But that's the constraint. In the events that I have to, you know, let go of half the team because they're just not good enough. Where do you suggest I look for um It's not about where, it's about how. So, it's not like I'm going to find like

the better you get at training sales and creating consistent sales processes the less skill someone can have and create a consistent outcome within your team, which becomes the arbitrage of your business. Just like I said the cleaning thing before, if the whole constraint of that business is going to be finding, you know, basically taking a

human being and then turning them to a great cleaner that actually shows up on time, you have to take the raw input of somebody who has no skill and just has work ethic, just has energy, and in 14 days you can get them closing deals on wholesaling. That box is the value that

your company That is your IP. That is the trade secret. That's how your company is valuable. And so, when I say who versus how, like where do I find these people? You could run Indeed ads and find like for this caliber of salesperson, they're everywhere. Uh the issue is then what is the process and what are the

expectations we're setting for those people as they walk in. And so typically when you're doing high-volume sales like you are, how many guys you have on the team? Um currently 17. Okay. So, when you have that that like I mean this you know, mid-size. Uh someone comes in, uh usually you get constrained because the

amount of churn you have of people quitting leaving is about equal to what you have to hire and that's what keeps you stuck, right? And so it's a process issue kind of on the demand gen side for talent. And so usually you look at that and say, "Okay, what part of this can we screen ahead of

time?" So, it's like let's send them the script before they even show up. So, people apply, we send them the script. And then send us a 60-second video of you saying the script. And then from the 60-second videos we're going to invite people to a group call, not one-on-one cuz we don't have time for that, and

we're going to go quick drill, say the script, give a piece of feedback, see how they do it again. If they could take the feedback well and they were prepared, great. It means they're coachable, they have work ethic. Awesome. Now we can take you to a a job offer call. Somebody, you know, has

attitude on the coaching, they're out. If someone doesn't show up prepared, they're out. Very easy screening. And so you take 10, you pick two, pick three, they go to the next one, you make job offers. And that's the flow. But like the entire sales process of selling them on selling for you sets the frame for

how the company operates. Like how disciplined you are and how militant you are in terms of how you set the frame for this is how we do things here. You either get in or get out. I do not care, but we win. And if you can set that frame, you will attract winners.

And winning's not for everybody. And so that means that on the team, there's probably some losers. And it's not for everybody. So that's a decision you make, and that's from top down. So there's the tactics and then there's the red issue. I would try this first. If this doesn't work, you have to

probably gut things. Thank you. If you're a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So my team and I put together the $100 million scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what

stages of growth they went through, and more importantly, where they got stuck and how they got past it. And so we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at, and the most important part for you,

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plug in your business information, and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page, you can just book a call with my team and we will look at the business, see if we can help, and if we can, we'll invite you

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