How to Scale Your Business and Get a Dozen Leads a Day
Did you know that lead generation is the most important aspect of real estate investing? It’s your lifeblood. Believe it.
Did you also know that in order to have consistent, killer lead gen, you have to systematize your business?
And having a rockin’ systematized real estate investing business is how you’ll be able to scale up and grow your biz, right?
Are you wondering how the heck you do all of that?
Well, fear not, friends – my good buddy and fellow genius investor, Rob Swanson, is here to show you how to take the painful hustle out of investing by systematizing the most critical piece of your business – lead generation.
In Swoops Swanson
I’ve been pals with Rob Swanson for 8 years now – and I’m just going to say it—I have a major man crush on this guy. It’s mostly because of his brain, his investing success and his insane teaching abilities. (Mostly) 😉
One reason Rob is such a great investing coach is because he absolutely loves this industry and loves sharing his knowledge with others so they can reach the same success he has.
He’s able to live a terrific active family life while crushing REI. He’s done a kazillion deals (yep, made up a word), actively does deals in 14 states and owns several real estate investing companies. After all, Rob’s an expert in wholesaling, structuring deals and raising money.
Most recently, Rob’s done something that every single investor can benefit from – he bought and then transformed the FreedomSoft software program into an uber-powerful tool.
Rob was generous enough to spend more than 2 big fat hours walking us through every step of his updated program. I’m talkin’ about a comprehensive walkthrough from start to finish – to show you how to organize, track and systematize every lead that comes in.
You are going to be blown away by the freakin’ awesome features this software offers – and how stupid-easy it is to implement – like, today.
But, of course, the point of this is not to sell you a product – it’s to show you how and why you must have systems in place in your business, which bring me to…
It’s Systems, Stupid
In this video replay, we’re breaking down the lead gen process into small, easy-to-digest nuggets of actionable info that you can get crackin’ on now.
By doing it this way, you’ll be setting up a solid framework for your business, which will then provide you a clear path to get you where you want to go and put you way ahead of the competition.
Here’s the thing…
You can’t scale your business until you have systems in place. As you’ll hear Rob explain, you need 3 simple things from which to build your business.
Once you understand that overarching concept, you can focus on the most important aspect of investing: lead generation. Rob tells us there are 5 phases of a seller lead – he’s sharing what those are and why those 5 phases matter.
As if that wasn’t enough, we’re also talking about why the fortune is in the follow-up of those seller leads. You’re going to be shocked to learn how many deals Rob closes from hang-ups he followed up on.
Shocked, I tell you!
And, we’re serving up several questions you should be asking a seller you just did a deal with – your relationship with them does not end when the deal closes. No siree.
Plus, Rob tells us what the ‘status of a lead’ means and how it affects how you work your leads. He’s also explaining the phenomenal idea he came up with called TRAP. Trust me, you want to learn about this.
And I’m adding my .2 cents as well – by sharing a profound story about transforming from a hustler to a wholesaling CEO. After all, there is a difference in simply doing a deal and running an investing business.
Again, the key to it all is organization and systems.
Watch, Learn, Grow
I want to stress again that his packed webinar replay is not to sell you anything – that’s not our agenda…
It’s to literally show you how systemization can take the pain out of this business.
See, systematizing and outsourcing allows you to focus your time and energy on your highest and best use – yes, you need to understand and know how to do the day-to-day tasks, but you don’t need to do them long term.
Look, his complete ‘show & tell’ will provide you a bigger vision of what’s possible in your business.
As far as I’m concerned, Rob’s newly updated FreedomSoft software is a robust system with everything built into it that an investor uses and needs.
And, to make sure you’re protected, Rob will also cover what the TCPA is and how to avoid getting yourself in trouble with them. (Your attorney will thank us. You’re welcome, in advance.) And he blasts through a great Q&A session about repair cost estimates, how to import stuff from your other CRMs, and lots more on the concept of scaling and systemizing your business.
After this webinar, you just might cancel any other 3rd party subscriptions you have and jump all in with FreedomSoft.
Get going on this now!
This is a full webinar, so if you're short on time or attention span, feel free to use the lower-right “gear” to speed it up and watch faster… Or slow it down to hear us sound drunk if you want. Cause that's always fun.
JP Moses: Hey guys, welcome to the webinar. We are going to have a blast tonight! I want to thank you guys for clueing us in or counting us into the time that you have for this evening because there's a lot of other things that you could be doing, but you're here with us right now.
All right, so guys, welcome to AwesomeREI Live. I'm JP Moses and this is Rob Swanson. Tonight, we're going to talk about how to scale your business and get a dozen leads a day for as little as $2 a lead.
I'm excited to do this! It's going to be an unscripted open conversation. I'm going to ask a lot of questions, Rob's gonna answer a lot of questions and—we're going to basically pick his brain. I'll sprinkle in some of my thoughts, and we'll have a good old time for at least an hour, maybe more depending on how the questions go.
Okay, we really want to give you some good information tonight for the time that we have you. Thank you so much for giving us a little bit of your time. We really have no agenda other than just have a good time and learn some stuff. We do take that seriously… we want you to walk away with some good solid information that's going to help sharpen your real estate investing ax. We’re going to have a good time along the way as well.
Rob, before we move on… cheers to you and to the evening, my friend.
Alright, so what's this all about? Little bit of housekeeping before we get into the nitty gritty… this is all about:
- getting more seller leads
- how to scale a real estate business
- killer tools and systems that are going to help you accomplish that
- answering your questions
- having some fun
So, some of you guys may not even know who the heck we are. We, meaning me and Patrick of AwesomeREI.com. So, for any of you who are new, who may not be familiar with us, just in a quick, tight little nutshell, AwesomeREI.com is our home base, and we are in real estate investing for awesome people. That includes you too, Rob, for tonight. You're not so awesome after tonight, though. 🙂
So Patrick is my partner in crime. We have 12 company values on the site and on the About Us page, you can learn more about who we are. Our values as a company are things that we try to reflect in everything that we do. We always keep them in front of us every week when we have a team meeting, we incorporate these in one way or another.
- always care
- always have fun
- always keep it real
- have an abundance mindset
So, we want to give first, we want this to be awesome… we want to have a positive impact and make a difference in some form or fashion. Want to know more about us? Head over to AwesomeREI.com.
Who's JP? I'm a lifestyle-driven, family-focused guy. I'm a faith-centric person. And so you'll hear me talk a lot about my family, my faith and my values. I've been in real estate investing since 2000. I've been a full-time wholesaler since 2002. I have over 400 transactions… notches on my belt. Currently in our wholesaling business, we do around 3–7 deals a month here locally—even though our business is wholesaling-focused right now, I've done a lot of other types of deals in the past.
Wholesaling is just the best fit for me personally. I like a lot about it. My experiences outside of wholesaling are various and sundry as well. And, I am the El Presidente of AwesomeREI.com.
But, enough about me. Most of you guys know who I am. Let's talk about Rob Swanson. This dude lives this insane, active family life that just is awesome. And there's no other way to put it. So, I'm gonna have you tell us a little bit about you, Rob, but first, just a couple of things that I know are worth saying…
First, he hails from the Denver area. He colleged in North Dakota. (I don't know if college is a verb, but we're making it a verb.) And you lived to tell about it. You're used to the cold, obviously, but in a nutshell, how did you get from North Dakota to Denver?
Rob Swanson: Yeah, so let's ask this question first: How did I get from Minnesota to North Dakota? So I grew up in Minnesota and I knew from the time I was 15 years old that I wanted to be a civil engineer. That's just what I wanted to be and that's what I wanted to do. And my uncle was a civil engineer. I asked him, “Hey, where's the best place to go to school?” He said, North Dakota State, because that's where his firm hired a lot of people from. So that's where I went to college. That's how I ended up in North Dakota.
JP Moses: Man oh man, so there's not a lot of people who go to North Dakota intentionally? Most people flee from North Dakota!
So, we've been friends for about 8 years now. I'm pretty sure if I did the math right, the official number, I believe, is that Rob has done, bagillions of deals in 14 states—it's probably been more than that—we’ve been saying 14 states for the past 6 years or something like that…
We, in the business, call him a super-duper expert in real estate investing, wholesaling, structuring deals, raising money… and he is one of the few guys on earth I have a man crush on because of his mad teaching skills.
If you're on the interwebs and the real estate sphere, you may have run across Rob with his training on Blitz Wholesaling and Micro-Wholesaling. He is also the owner of FreedomSoft.
All right, one more thing before we turn to Q&A with Rob…
I mentioned already that he's the owner of FreedomSoft, and some amount of what we're going to be talking about is going to include references to FreedomSoft. Many of you are familiar with FreedomSoft. Many of you are not, and we're not gonna have an opportunity to answer a whole lot of FreedomSoft-related questions, because our goal here is not to make a sales pitch—we're not leading up to an offer of any sort—but as a courtesy, I want to make sure you guys know where you can get more information. We're going to show you a little bit of it because some of the tools and resources that are applicable to our discussion tonight are in FreedomSoft.
So, as we're showing it to you, if we don't get to answer whatever questions pop into your head… if you're interested in it, I just want to let you know you can get a free trial, a 14-day free trial of FreedomSoft—give it a whirl, kick the tires…
It's basically a home base for your business. I won't go into any detail, but the link is AwesomeREI.com/FreedomSoft, that’s what we call an affiliate link. So, if you decide to give FreedomSoft a shot and it's a good fit for you and you integrate it into your business, then we'll get a little referral fee for doing—that’s just in the interest of full disclosure…
But, I don't mind saying that FreedomSoft is a frickin’ awesome resource. And for those of you who remember FreedomSoft from a few years ago, it ain't the same thing today that it was back then. It has been completely revamped from the ground up and has some of the most impressive features of any software I've ever seen for real estate investors.
Again, my goal is not to sell you on it here. I just want to make sure that you guys know where you can go to get information and to pick up a free trial of FreedomSoft, if you're interested.
Alright, so let's do this man. Our topic: scaling your business and getting up to a dozen leads a day for as little as $2 a lead. Those are really 2 different things, but they can be very symbiotic with each other. So, Rob, I want to ask you where should we begin the conversation in your view?
Rob Swanson: So you know, JP, if you and I are just having a conversation… we're just sitting around having a beer and talking real estate scale and systems and all of that stuff—where our conversation would go would be: You can't scale your business until you have systems built in your business that allow you to do this.
Now, I want to give you the definition of scale because if we're going to talk scale, we have to define it first. And here's what I mean. Scale is defined as:
“A significant increase in the output from little to no increase of input.”
Output is what you get: profits, leads, deals, whatever the output is of your business. Input is money or time or effort.
So you're going to get a lot more out with very little increase in extra in. That's what I define as scale. Now, how we get there and how we actually scale a real estate investing business starts with 3 things… and all of this is going to lead us into the actual detailed training.
I get a kick out of doing this stuff—teaching people something so they can walk away from this and execute and implement something in their business tonight and get results back.
So, 3 things:
This is the framework from which you're going to build your business.
Keep it simple, okay? There's a lot of people out there, a lot of YouTube videos, frankly, a lot of podcasts, a lot of things that can complicate the business.
#1: I want you to keep it simple, because if you keep it simple, then other people can do it. The only way you scale your businesses is when you start to begin to grow your team—and that doesn't mean you come out of pocket and pay people—but you're going to grow your team… And the way to grow your team is to keep it simple because then they can do it.
#2: Build a system, because when you build a system, they will do it. And when other people start to do stuff… #3: your business can scale and you get out of the way.
So keep it simple, build a system and let it scale. Those are 3 things that are really important.
To answer your initial question, JP, on where do we start this conversation?
- With the definition of scale.
- With those 3 things.
I want to focus on simple, system and scale because as we start to grow the team, and as we start to grow the business, and as we start to grow the leads… all of these other things come into place.
So, why would you ever grow a team?
Well, you grow a team when you start to grow your lead generation. No real estate investor is successful without consistent good lead flow. Leads are the lifeblood of every business. It's, perhaps, the most important system and where we can take this conversation…
One of the things we can talk about is the lifecycle of a motivated seller lead. And this all leads into how we turn this pipeline on and start generating dozens of leads a day. While we're talking, I’m looking at Skype messages from one of my VAs…
I'm looking at the past few days for some of the lead flow in 2 of the markets that we're active in: I've got here 16 leads in a day. Then the next day I've got 32 leads. Then the next day I've got 26 leads. Then the next day I've got 13 leads… then 22 leads… 19 leads…
I'm looking at today's numbers—23 leads from the lead generation strategy that we'll be talking about today. So the lifecycle of a lead in this business falls into 5 phases. And here's why I want to teach this aspect of this part of the business.
See, people will do trainings, and they'll hear, “You've got to build systems in your business, you've got to systematize things.” And where I think a lot of the training fall short is they say build a system, but they don't ever teach somebody how to build that system.
So it's difficult to scale a business without a system, but it's difficult to build a system without a framework of how that system should come together. And 2 of the most important systems that you'll build in your business are:
- lead generation
You've got to build 2 systems around getting the money and constant, consistent daily lead generation.
Well, you break down the lifecycle of a seller lead, so that you can build a system. Here's how it's broken out into 5 phases:
Those are the 5 phases a lead goes through.
So when a lead comes into your real estate investing business, phase 1 is capture. You've got to capture that lead. How do people do that? They do it with a phone system that comes in to a voicemail. It comes into a Google Voice number and it forwards to your cell phone. It comes in in a variety of ways through your website and through an opt-in form. So, the first thing is this phase of capture, and you've got to automatically capture the leads from all of your marketing.
The second thing is you've got to engage that lead—and what that means is that the system has to trigger something that goes back to that lead. Once they're captured, something has to immediately and automatically trigger engagement… o that lead connects to your business, because if you don't engage right away, the lead moves on.
A truly motivated seller will not stop at being captured by your system and hoping that something happens. If they're truly motivated, they will call you, and if they do not get an immediate response… they'll call the next guy or gal. So phase 2 is engage.
Now phase 3 then is nurture. Once you've engaged, the best scenario of engagement is you make an offer. They accept… you close… you profit—that's the best. But we know that that doesn't happen 90% of the time. It’s a nurturing process and a follow-up process that occurred. So, engaged turns into nurture… those nurtures come back—I'll give you some stats: about 60%–75% of the deals that we close are from leads that called into our phone or voicemail system, listened to a message and hung up. 60%–75% of our deals are from hang-ups.
And most people don't call the hang-ups back. If a caller says, “Hey, I've got a house on 123 Ash Street, and it really sucks and I'm done with it, and I want to sell it at .40 cents on the dollar,” they’ll call those people back. But you have to call every lead back… nurture those call backs… engage, and then nurture.
And there's a follow-up sequence that happens… after nurture comes the closing process. So once you've gotten into nurture, then you've made an offer. They've accepted through this phase, now you get into the closing phase 4, and that’s managing the transaction to the title company to the closing.
The last phase is at or right after the closing… and it's the referral phase. Here's what the referral phase is—this, this will be a big deal for anybody who’s already closing deals… for anybody who's not closing deals yet, don't forget this.
The 5th phase is the referral phase, and here's why it's so important. When you help a seller and you buy their house and they're happy with you, do a couple of things.
- Get a testimonial from them:
- shoot a video with them
- Ask them if they know anybody else who has a property that they would be interested in selling.
That's 3 ways in that 5th referral phase to generate more leads. You want to know a 4th little secret ninja thing that you could do with a seller?
The 4th thing that you do is: ask the seller—you just put $20k or $50k or $90k or $180,000 into their pocket at the closing table. You ask the seller:
“Hey Mr. Seller, what do you plan to do with that money? Because we're active
real estate investors and we buy properties all the time, and a lot of times we work with people like yourselves who have some extra cash and would be interested in lending
it secured against real estate. We pay a fairly attractive return.”
So, you can turn your seller—who just got cash from you—into a private lender just by building rapport and asking a question.
JP Moses: Smooth, Swansonater.
Rob Swanson: Here’s why these five phases of the lifecycle matter, if you're going to build a system. Remember, our whole goal is to create this conversation to get to scale… you can't get to scale until you start to understand the components of your business… and lifecycle is broken into phases, which creates a status. Now, here's what I mean…
Inside the phase “capture lead,” that lead lives in a certain status. So when the lead first comes in and it's captured, the status equals “new.” It's a new lead and the status of that lead equals new. As soon as you or somebody on your team does something with that lead, the status changes—and here's what I mean by that…
If you try to call the seller back and you don't get them, you get a voicemail or you just can't get ahold of them… the status goes from “new” to “called seller, no contact.” So, that moves from capture into the engagement phase, but now you have a status that's no longer new for that lead. Now it's called “called seller, no contact.” So now everybody on your team can log in and look at the status of your leads and you know exactly where every lead sits.
Here's why this stuff matters…
So, we have lifecycle phases and statuses, and with every status there's a series of actions that have to happen next. Those are the tasks that are associated with the status. Here's what's interesting… people talk about building a system, and they tell you—you’ve got to build a system to be successful in real estate—but they don't break it down into these simple, compartmental or modularized ideas, so that at the end of the day, you have 1 thing to manage inside your business on the lead generation side—and that is the status of your lead.
And with every status, there is a corresponding series of tasks that occur. When you change the status of your lead, those tasks automatically fire, so now when a lead comes in, you look at that lead and say, “Oh, I have a new lead. Status equals new, and it's in the capture phase of the lifecycle of a seller lead.”
You get that lead in, you pick up the phone and call them back. You've done phase 2. You've started the engagement process, so the status changes from new to called seller left message or called seller, no contact… as soon as you change that status, it triggers a task to follow up with that seller later… today, tomorrow, next week—so all of the tasks necessary to engage that lead are automatically triggered and you know exactly what has to happen because you know what status that lead is in.
So, the framework is all about recognizing the lifecycle of a lead broken down into 5 phases, and then looking at the different statuses in each phase and assigning the right task to that status.
Now, I know I'm throwing some heavy system stuff onto this, but I'm trying to make it as simple as possible because if we can fulfill on our objective to teach people how to scale their business—whether they're doing their first deal or they're doing their thousandth deal—sometimes it's just the framework of how you see your business that helps you say, “Oh, there's a clear path to get where I want to go.” And that's my goal here…
First is to just set up this framework to say lead generation is the most important thing, so if you can wrap your head around how to systematize your lead generation, and then your lead management—you are light years ahead of most real estate investors or even most wannabe investors out there.
JP Moses: Let me jump in… now that you've described the concepts from a cognitive perspective, I think it's a good time to make it visual. I think I need to turn the screen control over to you and a and let you show us a using FreedomSoft.
Now, a couple of disclaimers:
- First of all, our goal here is NOT to directly try and sell you anything, but we're going to use FreedomSoft to illustrate some of the points that we're making here about tools and ways to scale your business. If you don't use FreedomSoft, maybe you're into another software, you can set it up like what you're about to see. You'll have to customize it, but a lot of the other common softwares that are out there probably do function very similarly, so this will apply to you. If you want to check out FreedomSoft, I gave a link earlier for that: AwesomeREI.com/FreedomSoft. You can get a trial subscription there.
- I also want to tell a short story that ties into this. I mentioned earlier, I've been investing since 2000 and I started wholesaling in 2002. My journey in the real estate realm has involved a lot of mistakes. It's involved a lot of doing things the wrong way, so that I can see how wrong it is. And then finally figuring out how to do it the right way. And I'll be completely honest about this—it's involved a much slower learning curve than is necessary for a lot of people when it comes to the difference between doing a real estate deal and running a real estate business. Those are not the same thing. It’s a completely different skill set.
Building and running a true business, which involves people, processes and systems, versus doing a real estate deal. Some of you may be real estate hobbyists, maybe you're not trying to build a business. And if that's you and you just want to do a deal here and there, then probably a lot of what we're gonna look at here is overkill for you. If you just want to do a deal every 6 months or a house every 3 months, you can do that with a yellow legal pad.
The early, two-thirds of my career as a wholesaler… I pretty much did business with email, a cell phone and a yellow legal pad. You can definitely close deals that way. Long before the internet was created, people were closing real estate deals. But, with the resources that are available to us today, you can build a business, if that's your goal, faster than ever before. The barrier of entry from ground zero to a business that's up and running like a full business with a systems in place to handle your leads… and your team… and getting to closing… to have that handled in an expert business-like fashion—the barrier of entry is so much lower than it's ever been. And that excites me. It really excites me.
I had to stop my real estate business and step away from it for a time and get back into it after a break in order to reset my thinking… maybe some of you guys can relate to this, but when I first started wholesaling houses, I got caught in the hustle. I got excited to do a deal and I'd stay up late, get up early and just—it was all about deal-making, deal-making, deal-making. I'm running all over town, I'm meeting sellers…. it was fun and exciting, and I saw myself as this hustler. I'm just making it happen.
And then after a few years, I was like, “Holy crap, this is like the hardest job I've ever had in my entire life!” I'm telling myself and other people that I have a business, nut what I really have is a nightmare. Yes, I'm living the real estate dream… I'm a fulltime wholesaler… I was very respected… I'm doing deals and people want to do deals with me… I'm standing up at the REIA meetings and teaching. It looks exciting and I'm like, “I don't know my kids anymore. This is not the life that I thought I was getting into.”
I had read the email years ago and had loved the idea of building a business, but not enough for it to sink in that there's a HUGE difference between what I was doing and actually building a business. So once I stepped away, I said, “Never again, never again going to be a real estate hustler. It's just not for me. It's not concurrent with my vision. I'm a business owner and anything else I do, I'm going to run as a business.”
I don't know if the story resonates and connects with any of you guys, but for me that was one of the most profound internal shifts that I ever went through. And when I rebooted my wholesaling business, that's exactly what I did… it runs like a business and I run it like a wholesaling CEO.
Rob, that's another one of your trainings… so I just want to say, I don't know where you guys are in your real estate investing universe… I don't know what your goals are… what your aspirations are… whether you're a hobbyist or whether you're trying to build a business—but I know for a fact that if you want to run what you're doing like a business, start sooner than later to implement systems and processes and people that are time-tested and proven.
So, stepping off the preacher stump, that's where we're at tonight and that's why it resonates with me so much.
Rob Swanson: Well, just to advance that conversation a little bit for people, because again, this isn't an agenda to sell anything… if we were hanging out having a beer, this is what we'd be talking about and we’d be talking about the TRAP:
JP Moses: Did that come out of your brain?
Rob Swanson: It did.
JP Moses: It's amazing, I love that! That's why I have a man crush on Rob Swanson. He is talking about the TRAP.
Rob Swanson: JP, it was a conversation that you and I had and you were the one who said, “Hey, you’re talking about transactional, residual, active and passive… I think that spills trap. Isn't that a typical real estate investors trap?”
So, here's what I want people to get out of this, and we're going to dive in and show specifics how to do this lead generation strategy. So stick with us.
So transactional and residual: this is the frequency of how you get paid. You do something one time, and with transactional income, you get paid one time—the frequency is one. With residual income, you can do something one time—but the frequency is multiple. You get residual income. So this is about the frequency of payment.
Active and passive are: How much effort and work do you have to put in to generate the income? So wholesaling is transactional. You do it one time and it's active. You have to hustle. You’ve got to work your butt off to do this. Passive income is different.
Now here's the thing… most people will interchangeably confuse residual and passive income:
- Residual income is the frequency.
- Passive income is the effort.
So, are you going to have transactional passive income or transactional active income?
Wholesaling is transactional active income.
When we talk about building a system, keeping it simple, and letting it scale… what we're saying is—we get real estate investing. We get what this is all about. I've been doing this for a decade and a half and transactional active income means: let me put the hustle in today to generate cash, so that I can take the cash from my hustle and turn it into something that is residual and passive.
So… let's turn the cash into cash flow… then let's turn the cash flow into wealth. And here's how you do that.
Once you do the hustle and you make some money, you take the money and you create a residual passive income out of that money. You do that by increasing your knowledge base. That's what we're talking about here today. And then once the residual passive income takes care of your monthly lifestyle expenses, you then jump back into a little bit of the hustle and you build wealth.
At first, the hustle is just to make some money so that you can create passive residual income and generate lifestyle. Once the lifestyle is taken care of, then you turn the hustle back on and you go build wealth. So this cycle of hustle, lay back, hustle is a natural evolution of being a successful entrepreneur.
The reason I showed you that is because if you understand the purpose of real estate investing—depending on where you're at, if you're starting with zero cash, zero credit, zero—it’s hustle to get cash, create residual passive income, and then hustle to build wealth. You might be starting in a different phase… but all of that said, the goal is to take this hustle and systematize it as much as possible—so the hustle is less painful.
That's why I bought FreedomSoft. I'll be perfectly honest with you, I bought FreedomSoft not because I thought FreedomSoft at the time I bought it was an awesome software product. I thought it had a great brand. I thought it had a good user base and I thought it had great bones, and I believed that I had the insight into how a real estate investor can create success in their world, to take the bones, rebuild it and give people the tools and the systemized approach to their business that would force them toward success.
I'm not saying it creates success automatically, but it forces people toward success. So we rebuilt 70%+ of FreedomSoft over the past 15 months. So, if someone aw FreedomSoft even 5 or 6 months ago and looked at it today, they would be like, “Holy cow, what is this?!”
JP Moses: It’s like 10 x what it was.
Rob Swanson: So the goal of any software system is to take this transactional, active effort that you're going to do wholesaling, fix & flip, anything that's transactional and active—and systematize it so that the hustle, the pain, the effort becomes significantly less.
If we go back to the definition of scale… it's a significant increase in output with little to no increase in input. And that's what software and systems allow people to do.
So here's what we did with FreedomSoft—we recreated the entire structure so that somebody who’s brand new to the business can use the tool and basically move from left to right top to bottom. The whole idea is to make it simple. In western U.S. culture, we read from left to right, from top to bottom. So it's how we naturally move as we look at a software system.
So in FreedomSoft, it starts with marketing because you've got to have something that goes out to pull and generate leads in, it moves across into the lead management system, leads go under contract, and they create your property pipeline where you decide what you’re going to do with this:
- Am I going to wholesale it?
- Am I going to fix & flip it?
- Am I going to buy & hold?
Then it moves into the rehabbers GPS, which is our built-in project management system that manages this lifecycle of a lead that we're talking about.
So, I want to show a practical strategy that anybody could use today in their business through FreedomSoft.
JP Moses: We're going to visually walk through a lot of the concepts that we've been talking about. This is going to start to congeal.
Rob Swanson: So, generating dozens of leads a day very inexpensively. In fact, JP decided to promote this training around the fact that the lead generation was going to cost $2 bucks a lead, because I told him I'm going to show people how to do it for free. Well, he thought that $2 bucks sounded more realistic than free. So here we are. I'm going to show you how to do it for free and not spend $2 bucks. And then I'll show you how to spend $2 bucks and do the same thing here.
It's going to start with Craigslist.org, and I'm going to show you how to do this in 2 different ways. I went to Craigslist, and we're going to build a list of landlords that we can buy houses from. We all know that some of the best deals out there are vacant house leads…
Well, what causes a lot of houses to go vacant? A tenant moves out. So now the landlord is stuck with this vacant house. Maybe the tenants trashed the place. Maybe the landlord had to go through a lengthy eviction process. Maybe they had to sit there on tenants who squatted the place for 9 months because of a bankruptcy…
You know there's things that create motivation in a landlord that may give us the ability to buy a great deal. So, go to Craigslist.org and go to your city area. I want you to go into “housing,” and then I want you to go to “apartments for rent.” You are going to make sure that this little notch right here is set to “newest,” and then you're going to come down here and click this little + sign next to “housing” and you're going to select “house” right there, and then you're going to “update your search.”
Now, you could put some additional filters, and you could do some different things inside this strategy as well, but here's what I want you to get…
Let's take this one, it’s pretty ugly—it says “updated flex lease.” When we click on this listing, this one happens to be listed by a broker, probably a property manager… and I would have either you or your virtual assistant look through this listing and find the person's phone number or their email address.
And one of the ways you can do that is you can click on this “reply” right here and there's an email address that you can use to contact these people. So here's what I want you to do. I want you to go through these list by list, every single one of them.
JP Moses: So we're going through alt the houses for rent in your area and gathering the contact information.
Rob Swanson: So, you can filter this down and target a certain zip code or you could put in a price range, you could put in rent range. So, what is a house that's for rent? It's vacant. So the first step I want you to do is go build a list of 100 phone numbers using this strategy—the landlords who have a house for rent in the areas that you want to target.
Then you're going to come back, and if you're using FreedomSoft, you're going to create a FreedomSoft lead campaign. So, I'm going to create a new lead campaign… there’ll be a pop-up and I'll call this “Denver for Rent, First 100,” because I'm just telling you to go create a list of 100 phone numbers. We’re going to say that this is a manual campaign, and we're going to target sellers. And we're going to create a lead campaign…
We're going to link a phone number inside FreedomSoft, so that you can send those 100 people a text message and generate leads.
Guys, I just picked up 5 properties—3 duplexes and 2 single-family houses—from one out-of-state seller using exactly what I'm teaching you right now. Phenomenal cash flow using this exact strategy.
JP Moses: So, we’re assuming in this situation that there is a phone number included in the Craigslist ad for the landlord or the property management company. A cell phone.
Rob Swanson: So I want you to go through the process and find your first 100. Don't stop until you find your first 100. Then, grab the phone number and go into FreedomSoft… and I'm going to go over here to my settings, to numbers, my phone numbers—because we want to track, when we send out these 100 text messages, we want all of those replies to come back right to our FreedomSoft account.
I'm going to click “add number,” and I'm going to go with 303…
JP Moses: So you can basically add to your account and use as if they're yours… local phone numbers for any area.
Rob Swanson: Yeah, so I could go back and I can put in any area code. Let's say I was in Cincinnati—513—is the local phone number. So these are all tracking numbers built into FreedomSoft. And so
JP Moses: So you basically built a version of Vumber into FreedomSoft? Is that what I'm seeing here?
Rob Swanson: Yeah, exactly, but even more powerful because it's all integrated in.
JP Moses: Our business predates FreedomSoft, for anyone who hadn't figured that out. So our business is not tied in to some of these features, and we've been using separate features… there are separate services, rather, for a lot of these. I did not know that you had tied a service like this directly into FreedomSoft. That's phenomenal!
Rob Swanson: Yeah. So watch this because it even gets better… here’s the thing—if you're using any outside third-party phone system, we don't charge more than anybody else. We're basically passing the costs through because our goal is not to make a bunch of money on phone numbers. There are direct costs to having these phone numbers. So we are the same price as just about everybody else out there.
So you can add a phone number to your account just like I'm doing right here. It's going to process my card, and I'm going to show you guys the setup. So here's the number that I just added to my account, and I'm going to call this “Denver for Rent, First 100” because I remember what campaign I'm going to link it to right now. I'm NOT going to upload a custom message, I'm going to record a message in line… I clicked the record button:
“Hey, this is Rob and thank you for calling me back. If you're calling back because you recently received a message that I'm interested in buying a property in your area, would you do me a favor and leave me a phone number and your name and the best time to call you back and I'll get back to you as soon as possible. Thanks.”
So we now have our phone message done.
JP Moses: That’s frickin’ awesome!
Rob Swanson: Yeah, it's great. It's super simple. So I could set up call forwarding… I could set up notifications if I want to send an email. I'm not going to do that, but I am going to set up this text auto reply because here's where systems and automation start to come in:
“Hey, I saw your text. I'll call you back shortly. Rob.
So this is an automated reply that's going to go back if somebody sends a text message to this phone number. So, as soon as I click save, I’m done with this… you guys could start texting this number and you're going to get this reply back. So mess with me if you want. Test it out right now… go ahead and inundate me with text messages.
I'm going to see your new leads come in and I want to show you guys how this works. I'm going to go back to my lead campaigns… here's my “Denver for Rent, First 100,” and watch how simple this is—I'm going to link this number to this campaign. Boom, it's now linked.
This is one of the things that we call “lead central.” So your business lives around this hub of your lead campaigns, and I just linked my phone number to this campaign. So If people start texting, I'm going to capture these leads right here.
Look at that, we've got 11 leads already. That is awesome. Now 30. Watch this: I don't know who this is, but they sent the lead to me, so I'm going to assume that it's okay for me to text them back:
“Hey, saw your rental ad on Craigslist. You wouldn't be interested in selling, would you?”
Okay, I just sent the message. Now if I do that 100 times—if you send out 100 messages to landlords, you're going to get replies back.
Okay. So let's go see if the eight three. Oh,
So, I’m going back to click on that new lead that came in, the one that I just sent… and it shows me the the entire communication string between all of these parties. So now I know exactly what was said. So now I've got the entire email… so you send out your text messages, you get all these replies back and they're all organized in your lead campaign. I can click on “view all of my leads,” and here's all of my new leads that I get to work.
Now let's go back to our campaign because I can click on “my history” and I can see that if I had 100 texts that go out and 33 reply, I can go click on the replies and it goes straight to the message system, and I know exactly what's going on.
Then, inside the system (I'm going to assume that this person is okay with me actually calling them), I'm going to click their phone number right here and they don't have to answer, but I'm going to call you from my “Denver for rent, first 100” phone number—I'm going to click “call” and from right inside FreedomSoft I'm calling that lead.
JP Moses: Whoever you are, answer, let's do it!
“Hey, Jack, what's happening down in Texas?
Jack: “What's up, man?”
Rob: “Well, if you've got a $2,000,000 house, I will absolutely pay you a million for it. Hey, Jack, thanks for being a great sport.”
So, you didn't have to go set anything else up. It was all tracked right here. Now watch this, as soon as I refresh the page it shows me that there was an outbound call from this number to the seller’s number and the call lasted 34 seconds. You now have complete tracking.
How long did it take me to set it up? I created a lead campaign in like 15 seconds. I added a phone number, and I named it, and I recorded the voicemail in like 30 seconds. So in under a minute, I created the entire lead management and capture system inside FreedomSoft.
JP Moses: Okay, something else I need to make sure we shine a spotlight on here that is the beautiful undercurrent of this whole thing. So some of you are like me…. you're watching this and going, “Oh man, this makes me feel squishy inside. It's so cool how this works and functions.”
The real beauty underneath it is that you don't have to do any of this. Everything we've done so far is so entirely capable of being done by somebody else. My 14-year-old daughter could do everything we've done, which would allow me to leverage the tool and the system built inside the tool to focus on my highest point of leverage as the CEO of the company.
We're don’t have time to get into the conversation about what your highest point of contribution in your company is—it's not the same for everyone—but once you figure out what your highest point of contribution is… you are, frankly, not being a good steward of your company when you let yourself get into doing things that aren't that.
So what we're seeing here is a phenomenal system. It's a phenomenal tool. I think it's absolutely one of the most impressive. I've seen this whole process handled before, but it's not something you have to do. It's something you need to understand how to do and have somebody else do.
Rob, I have a couple of clarifying questions: When you send out the messages, does it have to be done one at a time or can you send it out to the whole 100 at one time or was it 100 individual messages to your 100 list from Craigslist?
Rob Swanson: Great question, and let me add a caveat it by saying this: I'm not a lawyer and I can't give you legal advice, and you're asking a question that requires legal interpretation because this really gets down to the TCPA—the Telephone Consumer Protection Act. The way we built it is to help our users be what we feel is TCPA compliant—and that is sending one at a time. And the reason we send one at a time is because the minute you get into what's called robocalls or automated blast texts, you start to cross some dark gray lines.
So, we have set it up where you do it one at a time because we believe it keeps you safer.
JP Moses: So, the second question I have is: Let's say you launch a campaign of 100 text messages that you send out, and maybe you do it all in one day, and then the next day maybe you start other text messages through the system, and before you know it, there can be a lot of information flowing around on any given day…
I don't want to take us too far off track and we still have a lot to cover and we want to hit a lightening round to get through the rest of it in terms of what you're going to show us this can do as a system.
But is there some kind of inbox or notification that says, on any given day: here's all the replies you've received that you need to respond to all in one place? So you don't have to hop from campaign to campaign to campaign.
Rob Swanson: Yeah, absolutely. So here we are inside the “Denver for Rent, First 100” leads. These are just leads in this campaign. If we go back and we go to this” all seller leads,” you can see all leads from all campaigns on one nice dashboard view.
So you can click into any of these leads and follow up. And you can change a lead status to “under contract” or “called seller, no contact.” You can add occupancy, “absentee owned” and “vacant”… and you can track all of this stuff on the lead dashboard. And can mark this as green so that it's easy to find. Let’s say it's tomorrow and I'm like, “What was that one that I wanted to follow up on?” I can go here to my advanced search and I can search by status “called seller, no contact.” And there's that one that we just were working on.
JP Moses: Oh, that's great.
Rob Swanson: And this goes back to what I was saying about the lifecycle of a lead… the 5 phases of where the lifecycle lives, and then the statuses inside those phases.
So, the first status is “called seller, no contact.” When I change the status from “new” to “called seller, no contact,” I know the tasks that have to happen next that are associated with that status—and they automatically trigger.
I've tried to organize FreedomSoft from a CRM standpoint. It's completely logical and as linear as this kind of thing can and should be.
JP Moses: What you've done in the revamp here, I can completely see it. Yeah. Awesome.
So, what will be the next step?
Rob Swanson: So now you've generated leads and I've shown you guys a great strategy to get leads coming into your business. And here's the thing… if you guys use this strategy and if you follow up on the leads—you're going to do a deal.
I don't know how fast you're going to do a deal because I don't know your skillsets… I don't know where you're at. We do this every day in our business, and we do deals out of this all the time.
And you've got to stay organized with it because if you try to launch this strategy on a piece of paper, it'll never work because you will get overwhelmed by leads. But this will really help your business.
Okay, now I want to take this lead, and we’ve reached out to Mary Jones and we found out Mary Jones’ address is… I'm going to put a street address here in Denver, Colorado… get rid of the zip code and click “Save lead.” So, now we've had some interaction with our seller/Mary Jones, and she's interested in selling. So I want to learn a little bit more about this property. Here's what we know about it so far…
The situation is a evicted tenants, a trashed house, out of state owner, sick of it. So, there's 3 numbers we’ve got to get.
- We've got to get the comps. What's the house worth?
- We've got to get the estimated repair costs for this property.
- We've got to run a deal analysis to see how much could I offer Mary so that the deal works for her and me. (My job is not to make an offer that works for her, necessarily. My job is to make an offer that solves their problem, and if it solves a problem and works for me and she accepts my offer, it works for her. The best investors figure out how to solve problems in that process.)
Let's do this… let's come down here to comps. We're going to click on the comps in FreedomSoft and it's going to pop up the subject property. I can zoom in and see that I've got nearby properties right here. So we would know that house is a 5-bedroom, 2.5-bath, 2,500 square feet…
So let's look at properties that are close that are similar. And notice, as I check these off on the left, it's going to put them up into your comps, and every one that I selected turned blue. So here's the properties that are the closest to my subject. And here's the one I'm talking about… let me click on the street view so you guys can see it. Here's the house I'm talking about. It's a nice little ranch house.
So now you've gone through and you said, “I'm going to build my comps and the house is worth $351,000.” So, I want to save my estimate right to my attachments for this house. So I clicked “save 2 attachments.” I'm going to go back to my lead details to put in my details and I'm going to put in 5 bedroom, 2.5 bath, 2,489 square feet. And I'm going to click “save.”
Remember, I saved my comps. So now you've got your comps as attachments. So if your team logs in, if your husband or wife logs in later, and you've just done some work on some leads, it's all right there, all of the work that you've done.
So now we know the value. Let's figure out how much it’s going to cost to fix this house up if it's trashed. So inside FreedomSoft, we built something that's called the “Rehabbers GPS.” And I've rehabbed hundreds and hundreds of houses… so I'm not even going to tell you the math that goes behind what I'm about to show. Just know that the math is doing serious calculations like:
- how many 2x4s
- how many sheets of drywall
- how many gallons of paint
- how many labor man-hours does this require
I'm going to do it all in like 20 seconds.
We're working inside this lead record… so everything is being tracked, and it’s super organized inside it. If you don't have years of experience as a contractor or rehabber, here's a great way to get the numbers you need to analyze any property. And what I'm showing you here is included in every FreedomSoft account. So you guys could sign up today and have access to this stuff.
We know the house is a ranch because we saw the picture—it was 2,489 square feet. Let's go ahead and say that the finished square feet was a 1900, and that that's going to assume that there's a basement unfinished of 800 square feet. So we’ve got 1900 finished, and an 800-square-foot basement. There was a one-car attached garage. Let's say that the roof needs to be repaired and let's build a 5% contingency because we know that Murphy’s Law happens. This is very scientific and this is the condition of the property in the existing state.
It's either a total beater, it's livable but needs work, or it's livable and clean.
Now let's say that because it was just rented and usually when tenants trash a house, it needs to be cleaned up and fixed up, but it's not bank-owned or completely trashed. So let's call it livable and needs work.
So guys, now we've got our property after repair. So step 1 is: what's the existing property? Step 2 is: what's the property after repairs. So we put in the same stuff and we come down here to finished quality. It's either economy, so lower-end, it's average, or it's luxury. We'll just leave this as luxury based on what we saw in the neighborhood on the street.
Now we're going to do a housing market adjustment. We're going to adjust this to Colorado and we know that this particular house is in the Denver metro area, and I'm going to click “create estimate,” and just like that, I've created both a rental grade and a fix & flip grade complete repair cost estimate across over 22 different project categories.
It gave you a rental fix up of $18,655.50 and a fix & flip fix up a $43,642.06.
This is pretty cool… I can click this and I can save that estimate right to my attachments. So now if I go back to my attachments, I've got my comps and my repair cost estimate. Listen guys, when you are negotiating with a seller, particularly a landlord like this, like the strategy I just taught you, when you can come to the table and say, “Hey, I've run all my math. I've run all my numbers. I know why I can offer you what I can offer you,” there's justification behind the offer. Your credibility and your success rate goes straight up.
Now we've got repair cost and our comps. Let's do something else. I go back to my rehab estimator dashboard that's tied right to this lead that I'm working, and I can see that this is 525 Everett Rehab Existing House. Well guys, what if you wanted to finish the basement? Let's duplicate the estimate. Let's click on it. Let's go rerun the estimate and let's say finish basement.
Let's change the property after repairs. Finished square feet to 2,489, and when I do that, I come down here and I “save estimate,” and it reruns all of my math on the entire house and I just got a new fix $ flip and rental grade. Complete rehab.
So If we look at our dashboard now, I have rehab existing house and then finished the basement, and I can see the difference in cost to do those different things. I'm going to show you one more pretty cool ninja thing and you can build all sorts of scenarios into…
I'll go back to rerun the estimate… actually I want to duplicate the estimate first. Then I'm going to rerun the estimate and now I'm going to say finish the basement, add bed plus bath, and I'm going to save the estimate. And it just ran all of the math to finish the basement and add a bedroom and a bathroom in the basement.
Now, you've built out scenarios to give you the numbers to actually say, “Do I have a deal or not?” Now what are we going to do with this? We're going to take our repair cost. We're going to take our comps and we're going to go right here on this lead details and we're going to run our deal analyzer.
Now, JP, you pick: Do we want to run this deal as a fix & flip or buy & hold fixing.
JP Moses: Flip, man, I don't hold properties. Fix and flip.
Rob Swanson: So we're going to run our fix & flip deal analyzer and we're going to say that we're going to buy it on this day and we're going to purchase. Let's just put in a purchase price of say $195k. And how do we want to pay for this? Do we want to pay cash or do we want to finance it?
JP Moses: Cash.
Rob Swanson: What was our fixed-up costs? When we finished the basement on a fix & flip, it was like $43,500. And we're going to pay cash for that. But, let's actually, let's finance it. Assuming that we're going to use private money… we're going to borrow private money for the purchase price and for the fix up. Let's say our closing costs are $2,500. We're going to borrow private money for that.
Say taxes are $1,450 a year. And our insurance for this project is $750 bucks per project. And we'll go and pay cash for those two things. Utilities, let's say that we're at $75 a month and we'll roll that into our private money because I'd rather have the private lender fund it than me.
What kind of a down payment are we going to put in on this thing? Well, we're going to put zero because we're going to borrow a 100% from our private lender. It's the only way we do business. And let's say that we're going to pay our private lender 9%, and we're going to defer their payments to the end. And we're going to pay them zero points because we know how to go find good private money. That's just how we do it.
We're not going to borrow any money on a second loan, this is just our first loan, private lender. What's the estimated sale date? Well, let's say that this project's gonna take us a few months, so we'll kick it out a ways.
Our after repaired value was $351,000. So, 6% commission to an agent to sell it. Closing costs when we sell it, let's say it's $3,000 seller concessions. Let's put zero in today's financing world and let's run our analyzer…
It spits out all of our math and tells us if we paid a $195,000 and put in $43,500 and borrowed private money and did it over a 91-day day period of time… we made $80,000 on that deal. That's our net profit, cash-on-cash return and our annual ROI.
Now I saved my analysis, and it drops it right onto my dashboard. So now I have a complete record of my lead generation, my communication history, my comps, my repair cost estimate, my deal analysis for fix & flip for buy & hold.
And I can play with all these scenarios to come up with something that works. I never wonder what my numbers are because they're right here. Now, here's what's really cool for you wholesalers out there. If you're saying “Right now, we’re just in the deal analysis mode. Should I do this deal or not?” We'll look at this…
You can come right down here to your “buyer matching” tool and you can click “buyer match.” And if I had buyers loaded up into this particular account that we're matching on the criteria, when I click on that lead and when I click on that buyer match, it's going to put all of your buyers right there that are a perfect match. So when I click buyer match right now, it says this property has no matches. That's because the 6 buyers I have loaded up in this demo account aren't matching on the zip code.
But it's super powerful to say, “Whoa, I don't know if I want to do this deal because I'm not sure if I have buyers in the area,” well, boom!
JP Moses: I was actually going to ask for the wholesalers and the buyer matching, is the criteria zip code or is it possibly other criteria that it would match it on as well?
Rob Swanson: So we could put all of the buyer’s relevant details in here and here's where the buyer matching starts to match up. I can target… this buyer wants to buy in Colorado, they want to buy in either all counties or I can select specific counties like Adams County and Denver County. So I can build out my specific criteria and filters, and then I can put in zip codes—and things should match up.
The point is, if you set your buyers up right and, and they're targeting the same areas that you're going after, when your leads come in, they can match up on:
- construction type (single family, multifamily)
All of the different criteria can match up.
JP Moses: All right, let me pause you for a second. I want to get to some questions, I think we have some people chomping at the bit…
So could I ask you to pull up a couple of levels and have you hit the highlights, so they can get kind of the full picture from above. And then I want to open up for questions.
Rob Swanson: So guys, I'm gonna take this lead and I'm going to put in their mailing address—Mary Jones’ mailing address. And I'm going to build all of this, so that I can come down here and make her a cash offer.
I'm going to make her an offer of $205,000 cash. I'm going to offer $1,000 earnest money. Um, I'm going to offer her $204k for cash at closing—my full price minus my earnest is the cash at closing. And I'm going to go ahead and leave this stuff all blank. It should be all I need. I'm going to click “save” and then I'm going to click right here to “generate document.” And now I have a cash offer purchase agreement with my seller.
So what did I do? I worked the lead on my details page. I clicked, “make a cash offer, purchase agreement,” I clicked next step and it automatically fills in all of my stuff. I clicked “next,” to preview my document. It's all filled out exactly how I want it, including my signature.
I click “complete” and it generates my contract, and now I have my comps, I have my rehab costs and I have my cash purchase offer with a few clicks it just generated it. So I could simply email this to the seller right now just by clicking “email,” and it'll pop up and attaches my purchase agreement right to the email, and I can send it straight to the seller.
And guess what? All of that communication history, sending it out, getting it back. It's all tracked right on your dashboard.
JP Moses: A beautiful thing.
Rob Swanson: The point of this… go back to the big picture: It's all about systematizing and taking the work out of hustle. And that's what I'm hoping people like.
So, here's what we did. Now, Mary accepted our offer. She sent it back to us. We've got it here and we're under contract. So what do we do? We go over here and change our status… I'm going to move this from a lead… I'm now under contract. I'm going to say “convert to property,” because now I'm building my property pipeline:
- Am I going to wholesale it?
- Am I going to buy it?
- Am I going to fix & flip it?
- Am I going to buy & hold and rent it?
What am I going to do? So I'm going to convert this to a property and it moves me right onto the properties tab. Now I have separation from all of my leads and the actual properties that I'm deciding what I'm going to do with them.
You have a contract, it becomes a property, not a lead. So, I'm demonstrating what I think are best practices to stay organized. We have a lot of users who do it different ways. For me, once it goes under contract, I move it into the properties tab, and then I decide what am I going to do with it. That's how I approach it.
Okay, so now we decide what we are going to do with it… once I move it into my properties tab, I can then take this property and all of the details here, and I can syndicate it out to my website. I can syndicate it out online for marketing. I can do an email broadcast to all of my buyers right here.
It pops up my “compose broadcast message,” and I can pick all of my confirmed buyers… and you can say, “only send to confirm buyers who want to buy in the specific zip code that this property is in,” or we can send it to all buyers. So, you can send it to the specific people that you want.
Type in your subject, then you can attach:
- your comps
- your repair estimate
- your deal analysis sheet
It can all go straight to your buyers and give them the tools to make better decisions faster. It's all right here. Type it up, click “send,” and it's out the door. Guess what happens? Then your buyers receive it, and when they start to reply back, it's all tracked right here. It's going to notify you when a buyer says, “Yeah, I'm interested,” and the entire transaction history with your buyers is going to be right there. That's it, man.
JP Moses: Do you have the ability within FreedomSoft at this point to send text messages to your buyers about a lead?
Rob Swanson: Yes, sir. We go right here to our Marketing tab. We go down to a SMS broadcast. We say “compose message.” We pick our confirmed buyers. We pick the number. And you'd want to have a number included in your account that you've reserved, that you've rented. Basically, that’s reserved just for text messaging out… just for your broadcasts.
JP Moses: Text messaging.
Rob Swanson: That's exactly right. And so now there's that number. I would type up my message, and I would click “send broadcast,” and it can go out to all my buyers.
JP Moses: Okay, I want to make sure I understand. So, if I have a property in 38125, and I have all my cash buyers in here, and I've told FreedomSoft which ones have told me that they're interested—I’ve told FreedomSoft, here's all the cash buyers who want 38125. I could then use FreedomSoft to send a text blast to the group of buyers at one time who are interested in that zip code according to what I've put into FreedomSoft.
So, I don't send a group text to marketing leads for sellers—those are one at a time. But it sounds like you can send a group text to your cash buyers. Am I hearing that correctly?
Rob Swanson: We built a hybrid broadcast system… it does cue them up and you have to click the button, because that we feel that keeps our users TCPA compliant.
JP Moses: But it’s not like open screen, copy, paste, send, open screen…
Rob Swanson: No, let me show you. Let me, let me show you here. I’ll write: Check out this hot deal.” And insert the link. I'm going to “send broadcast,” and it's going to put my buyers who match what I want to send right there and I'm going to click “send SMS.” And if there were multiple buyers, it would have “send message” next to each one and you just click it, rapid fire.
Here's the thing, guys, if you send blast text messages and you violate the TCPA, it's a $1,500 per day per violation. Okay, so sending 100 texts in violation for 3 days… it adds up really fast. It's called bankruptcy—and lifetime bankruptcy as well.
We believe that real estate investors are going to get this. There's going to be some who are made an example of. I've been around this business long enough… we're trying to use our legal team to give us guidance on how we can help keep our users as safe as possible—and if that means it takes an extra 3½ minutes to get that broadcast text message out. I'm okay with that.
JP Moses: Yeah, I concur. And thank you for taking that into consideration and not doing this sloppily.
Alright, let's jump into some questions. We're going to do a 15-minute lightning round… it's actually been 2 hours for this webinar. So high-five for endurance, everyone. Bam! Appreciate you guys being here. You guys are champs.
We're going to get into some Q&A now. The first question has to do with the “Rehabbers GPS” function. Here’s the synopsis:
“Contractor costs are different nationwide.
So does it assume that in it its calculations or are they the same for the entire country?”
Rob Swanson: Let me go back into the one that I showed you guys right here, and we'll go back to our rehab estimator, and we'll just click into this first estimate, and we'll go back and rerun the estimate… great question.
FreedomSoft has a built-in housing market adjustment right here. So you could adjust this to any state and to any city in any major city in any state, and redo my estimate. And it gives you local repair cost estimates.
JP Moses: Excellent. I also want to clarify this… I'm going to make a statement here that may be a bit of an assumption, but I want you to correct me if I'm mistaken—the Rehabbers GPS… it's purpose is to give you an estimated number that you can use to make an educated offer, but it's not meant to be used as your final rehab budget that you go to your hard money lender with and say, “Hey, I want to do this deal. Here's my rehab estimate.”
I think maybe that's kind of common sense… that you're not going to use software that's never seen your house to put together a rehab estimate that you're going to base your funding and your entire rehab upon if you're a rehabber.
But it is something that you can use to very quickly and effectively get close enough based on the area that you're I and based on the costs in various markets that will allow you to get that property under contract.
If you're a wholesaler, your buyers end up having their own numbers anyway—whatever you come up with… the person you're selling it to is going to have a different version of it. But if you're a rehabber, once you have it under contract, then you have to actually get your contractor in there and it'll be interesting to see how close those numbers are.
Rob Swanson: I'll tell you a story on that… time and time and time again, we have hundreds and hundreds and several thousand people using this, right? And the hundreds of people that we actually get to hear from on a regular basis are blown away by how accurate these repair cost estimates are. Now, there's a couple of things that throw a repair cost estimate out of the water: mold. If you have to do mold remediation, asbestos remediation, structural damage remediation, and meth remediation… those 4 things will throw a general repair cost estimate out.
I was sitting in a meeting recently with a guy who does a lot of fix and flips all over the place, and he was looking at this tool for his business. He happens to be a real estate agent who works with dozens of investors and they introduced him to do a lot of their lead analysis. So this guy is sitting in the meeting, and I go through this thing with them… I show them the Rehabbers GPS and he likes it. He goes to the question: “How accurate is it?”
And I said, “Give me an address. What are you guys working on right now? Give me something that you know what your budget is.” So, he pulls up his laptop, he fires up an address… I punch it in, I click submit—and this is up on a big screen with a with a bunch of people in the room and I'm like throwing it out there—and I look at him… he looks at his laptop, he looks up at the screen, he looks back at his laptop, he looks up at the screen, he closes his laptop, he looks at me and he says, “We want it.”
His budget was $60,000. Or repair costs estimate using exactly what I just showed you guys, was $59,438. By less than $600!
I can tell you story after story after story like that. But one of the really neat things is this: Let's try to drive the point of estimate versus budget home. It’ll take me 2 minutes. If I click “convert to project,” I'm going to take this property and I'm going to say, “Yup, I want to go get hard money. Private money… I want to do this fix & flip myself.”
I convert it to a project and I select the project type from cosmetic, rental, rehab, remodel, fix & flip from doing an addition or scraping a house or new construction. Guys, listen, we have new construction builders running their entire business on FreedomSoft today.
That didn't happen 6 months ago, and I'm going to show you why right now. I'm going to say this is a full fix & flip. We're going to close on it here. We’ll give it a construction completion day and I'm gonna click “save project.” I'm converting it from my property pipeline into my project manager in the Rehabbers GPS, and as quickly as doing that… I just built out my entire construction sequence from start to finish: every step, every task, every reminder, all along the way.
So I can click on any of these and it shows you the details… what you should be thinking about at each stage—and if there's something to do, you can build and create a task right inside FreedomSoft and assign that task to someone on your team or to yourself so you don't forget. So you can run your entire construction process right here.
But the reason I was going into this to show you, is if you go to the rehab estimator inside the project manager… we punched in $43,000 so that was just rehabbed the existing house. And now look: I've got a rental-grade estimate, I've got a fix & flip grade estimate, and then I have this third column that's new—it’s called “build your budget.”
We have experienced investors who are asking these smart questions, and we have an experienced investor who built all this stuff because we know what you need and that's why we built it the way we built it.
So now we can edit any of this that we want. I’ll just say paint, that's only going to cost me $1,500 instead of $1,800. I could go through and I could build all of my project categories. I can adjust them as necessary if I want to get bids from my contractors and piece it all together. It's all there. I click “set as my budget,” and it moves it from my estimate column into my budget, and I click “use as budget.”
And as quickly as I do that, I've got a complete budget manager that I can run my entire project on. What's really cool about this is, if you're out in the field and you buy $2,500 worth of windows, you put” “Home Depot,” Materials,” “$2,500,” “paid with your credit card ending in 5544,” the date that you paid for it and you click “save changes.” And now I've got a running history of this.
But here's what you do…. you take your cell phone, you take a picture of the receipt when you're at Home Depot, and you email it into this project email address right here. So every project gets a unique email address. The next time you log in right here and see your attachments, you're going to have your Home Depot receipt right there.
JP Moses: So one of the questions that Greg here is asking is basically… He was about to pull the trigger on Podio as a CRM. And he's wondering:
“How similar or dissimilar is Podio to FreedomSoft?”
I have a lot of experience with Podio in our business, so I want to give a quick answer, and then you can see if there's anything to add to that, Rob. Podio is very Robust. It's a solid system. It used to be free. They don't have the free option anymore, so it caught head. There's a monthly fee attached to it that didn't used to be, which is fine. But it's not built for real estate investors. It's built as a blank slate. It's basically—build your own swiss army knife…
And you're like, “let's decide what we want to do, and then let's start plugging things into it.” So it has a massive learning curve. It just is what it is. We had to go through it when we started using Podio quite some time ago. Huge learning curve. And everybody kind of ends up with their own version of how they run Podio.
It's kinda like when you set up Outlook… you look at 12 different people who use Outlook and they're going to all have it set up a little bit differently or a lot differently. What I like so much about what Rob, has done with FreedomSoft is, as far as I can tell, everything that an investor uses Podio for, you have built into FreedomSoft if it wasn't there already.
I don't know if I'm missing anything, but everything I'm aware of that an investor would shape Podio into or use an add-on to make Podio do, you've built into FreedomSoft now and it's built for real estate investors out of the box. Like, it's baked in. This is for 1 industry, and you can customize aspects of it, but you can also pull it right out of the box and start using it exactly as it is without having to go through the massive learning curve.
Rob Swanson: That's exactly right. We have investors, every day, who are canceling 3rd-party systems, canceling Podio setups, canceling all their global flow integrations… saving themselves thousands of dollars a month because here's the thing… I was a big Podio user too, before I bought FreedomSoft. And what was so frustrating was—I had a technical person on my real estate team that just managed our Podio apps and kept everything working because some 3rd-party integration would break, and then we'd have to figure out how to fix it. That's why I said, “Let's build all of this stuff into it.” And one of the things that people love about Podio is that you can customize all of these different things.
Well, if you go to “custom fields,” and you want to customize the entire leads, properties and Rehabbers GPS workflow right here, you click on this and you can completely customize this entire thing. So the guy or gal that wants to fiddle around with customizing everything, can come down here and say, “You know what, I want to have this primary contact record at the top of my page, so I can just drag it to the top of my page and the next time I log in, it's right where I want it to be.” So you can customize it however you want.
JP Moses: And that's the thing, you can… but I love that you don't have to. Because some people are the mad scientist and they want to make this into their own thing. Other people are like, I just want to use what works as-is and have as little customization as possible—I'm actually more that way now because I just don't have the time to get in and fiddle with it. It'll suck all my time away or my employee's time.
Agnes is asking about the “Community in Classroom” tab, and then tied to that, we have a couple of specific people who've asked about training on this… we’ve covered a lot in this video, but in terms of systematically going back or teaching an employee how to do a lot of what we've learned how to do… can you just show us where and what that training looks like?
Before you do, one of your customers here, Roy Leach said, “I've been using FreedomSoft for several months. I had no idea it was this powerful.”
You're welcome, Roy!
Ron Swanson: Yeah man, we hear that a lot because it does do a lot, but it's simple, out of the box. You can be up and running in minutes… but then you can really dive in and once you discover the power, it's awesome.
So to answer the Classroom question… under the “Classroom,” we have our success trainings and I'm gonna click on this, and it takes you through every little nuance that you might be interested in. Here, on “how to set up your buyer matching,” there's a 3-minute 59-second video on setting up your buyer matching… working with making offers… using FreedomSoft… how you use that document generator, a 15-minute video here. Most of our videos are very short. “Scrubbing leads,” here's a 5-minute 42-second video.
So we have fantastic Success Trainings inside the Classroom. We also do something else… there's 27 videos in our Success Lab. Then we also do weekly FreedomSoft lab trainings, where we come on and teach you guys, as FreedomSoft users, best practices, how to get the most out of using FreedomSoft, tricks and tips that we implement in our business.
We open our business and show you guys how we set up our dashboard… how we manage all of our lead flow… so we’ve got you covered when it comes to training. The other thing is, we have world-class customer support. Trying to go get customer support about a real estate issue from Podio… it doesn't exist.
We're here. This is a crazy concept—we actually answer the phone and we actually reply to our emails. And I have a team that is really dedicated to helping investors succeed with this.
JP Moses: We're at two hours now, so we're gonna wrap this up. A couple more questions. One is:
“Can you import buyers from other CRMs? If you're a Podio-user, for example, or something else, and you want to switch to FreedomSoft, but you've got all this stuff in Podio? Is it manual all the way to make a transition or is do you have something built into assist?”
Rob Swanson: One of the things that I knew when I bought FreedomSoft and said we're gonna make the frickin’ best system out there for real estate investors is: I knew that in order to win people to our platform, regardless of how awesome it was, we had to make it easy to move from any existing system or from wherever they were today.
So whether it's a lead… whether it's your entire contact database… whether it's your buyers list… whether it's your property pipeline—it doesn't matter what it is. We've built simple importers to import your entire existing database into FreedomSoft with a couple of clicks. You can choose your upload file right here. You can set up your data to group it however you want. You can put it into an existing group or leave it blank… match up the field so we know what you're bringing in… preview your import to make sure it's good to go… confirm it and it's uploaded.
So the short answer is yes, you can import your entire database in about 50 seconds.
JP Moses: That's beautiful. Alright, the last question, which has been asked a whole bunch:
If people give it a 14-day trial, what happens after that? If they decide they want to stick with it, what can you tell us about what it costs and what's involved in that kind of thing after 14 days?
Rob Swanson: We offer 3 different plans for FreedomSoft:
- Basic $97/mo.
- Plus $197/mo.
- Max $297/mo.
If you guys go start your free trial, you'll be taken to select your plan page. And what we're doing right now is we're offering a Max Plan for the price of Plus, so you can get a Max Plan and unlock everything in FreedomSoft…
All the power that I'm showing you here today for $197 a month. JP, I think you’d agree, if you start to go put an email marketing system together and automation, a task management system, a CRM or marketing automation, phone system, voicemail, text messaging, you start to add up all these systems, you're going to blow past $200 a month in a heartbeat.
JP Moses: Oh yeah, I'll tell you what this replaces right now. This replaces Podio, which has a cost also. You'd have to have GlobiFlow tied into Podio. For those of you who know Podio, you know what I'm talking about. So there's more monthly costs associated with that to be able to do what we've seen here. The whole phone number thing, this also would replace CallFire. What else? Your email marketing, Aweber or whatever your replacement of that's going to be. And one of the biggest costs that people have of these things are little fees that start to add up, right? $50 bucks, $100 bucks there.
The big one that people realize is that they get to get rid of either the pain of doing it themselves or the cost of paying someone to take leads out of one system and move it into another and manage this list and put it over there. All these disconnected systems trying to connect together. You guys have seen this is all connected in one system. And everything's very symbiotic—all the components are interlinked really elegantly.
Alright, that was a power session. I was not expecting 2 hours, but it was 2 hours of really meaty stuff, because we took almost the whole first hour just to talk concepts, right? We just talked about the TRAP. We talked about the concept of scaling and what it looks like to scale a business… the difference between the hustle and owning a business… and the criticalness of that transition.
Then, giving you a picture—whether you're at the beginning stages of starting an actual business and not just a hobbyist in real estate or whether you're well-entrenched into it and you do deals like clockwork, but you're all over the map and you're using 14 different things to do it. We've seen a really robust and rich system here that is available to us.
I want to emphasize what I said earlier: Our goal here was not to see how many trials of FreedomSoft we could start. I mean, that may be Rob's goal, it's probably his goal. I don't know. But my goal is not to do that. I want to make sure that you guys have a bigger vision for what's possible in your business when it comes to scaling. When it comes to lead generation… when it comes to using a tool like FreedomSoft or something else, whatever it is—tools and systems will level up your business. When you take the time to get your head around them, implement them, and then hand them off to people who will run them for you.
It's truly powerful and it's the difference. Those of you who are Kiyosaki fans: it’s the difference between people in the S Quadrant, the self-employed quadrant versus the b Quadrant, the business owner. I spent most of my early career as a real estate investor squarely in the S Quadrant. I thought I was a B, but I was an S. That's pretty funny…. a lot of BS. I thought I was a business owner. I was a self-employed person, and I was just on a different hamster wheel.
And a lot of times, you start out that way, but you don't have to stay there any longer than you have to stay there. So get off the hamster wheel and start running a business using some kind of system. Take what you've learned today, the principals, if nothing else, of what you've learned today and apply it in your real estate investing endeavors, and it will take you to the next level faster than anything else. I can guarantee it.
I want to thank you, man.
Rob Swanson: Absolutely. Look my goal is obvious: to deliver value. And convince you by showing the value that we've created… that using FreedomSoft in their real estate investing businesses is the only smart choice… that's my second-tier goal and that's why we focus so much on building the right product, so that I can come on here, and I can deliver so much value and give people tools to go out… and they're going to look back and say, “Man, that makes sense… to use that system and that tool to help me run my business.”
So I hope we successfully delivered. We didn't even get to show them Lead Swiper, the 53 different built-in lead campaigns and all that other cool stuff.
JP Moses: Uh oh, I smell another webinar coming in the near future.
All right, Rob, thank you so much man. Thank you, guys, for dialing in with us. Those of you who've been with us for the 2 hours, wherever you are, whatever is going on in your world—you carved out some time to be with us, and we're grateful for that. Grateful for you.
That's a wrap. This is JP and Rob Swansonater outta here. Thank you, guys.
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