In today’s podcast, I wanted to give you a short test that I gave my Executive One-on-One Coaching clients this past week. Unlike any other real estate test, this test will evaluate your true ability to function in a real estate environment.

Listen to Episode 493 “The Real Estate Test!”

While we all talk about getting a productive real estate business up and running, Few people know the actual steps required!  During this short test, what I would like you to do his grade yourself on a scale of 1 to 10.

One means that you need the most work possible in that area. 10 means that you have that area of the business under complete control! Let’s go through each of these areas of your business and grade them on that scale!

1. Time Management

In Executive One-on-One Coaching, I teach my clients how to manage their time. We go through exercises, drills, as well as close monitoring of their schedule if required.

I tell them to do the most productive thing possible 4 to 6 hours per day!

This naturally begs the question what is the most productive thing to do? In my opinion one must concentrate on the five core competencies. This would include; lead generation, lead follow-up, presentations, Handling objections and closing.

Grade your business on a scale of one to 10 in this area.

2. Prospecting

Throughout the podcast, newsletters, and other trainings I’ve done, I teach my clients how to generate leads.

I teach them that there are three ways to obtain business. Waiting for business, buying business, or going out and earning it.

Examples of waiting for business would be open houses, floor time, or waiting for a response to your craigslist ad.

Examples of buying business would be yellow letters, bandit signs, radio, and television ads.

Examples going out and earning the business would be calling on for sale by owners, calling on expired listings, and working your center of influence.

Grade your business on a scale of one to 10 in this area!

3. Past Clients and Center of Influence

Understand that 35 to 40% of your business comes from here. For businesses whose percentage of repeat and referral is too high (for example 85 to 90% of their business comes from center of influence) they aren’t growing to the fastest degree possible. They could grow their business faster by adding new business. (i.e. FSBO’s and Expired listings)

If the center of influence is too low (for example 15 to 20% of their business comes from repeat and referral business from their center of influence) than the practitioners leaving money on the table by not working this gold mine.

You must learn how to contact your sphere of influence to generate repeat and referral business!

Grade your business on a scale of one to 10 in this area!

4. Prequalifying Buyers and Sellers

Prequalifying is an exact part of the sales process. For example pilots use a preflight checklist.  Prior to seeing your doctor the nurse takes your temperature, pulse, respiration. All professionals use some form of prequalifying checklist!

There are certain questions that you must ask to determine a prospect motivation.

Grade your business on a scale of one to 10 in this area!

5. Lead follow-up

To ensure proper lead follow-up, there are two things that are needed.

First, how many leads do you need? Second, you need a way to follow up with them without wasting your time or losing valuable leads!

What we tend to do is over protect our leads in fancy computer systems that promise to help but in the end only impede our process. What I recommend is the use of 3 x 5 cards as I was taught. Writing down the names of your hottest leads, There phone numbers, the date that you acquired them, And the date to throw them away seven days later.

Grade your business on a scale of one to 10 in this area!

6. Working with Buyers.

Is critical for you’d understand that this is a step-by-step process just like working with sellers. You must control the process to make it profitable. Any agent worth their salt will tell you that from experience that working with buyers is tiresome, laborious, and costly.

In residential resale real estate, we control the buyer process by the use of buyer broker agreements and other means. In wholesale real estate however, we control the buying process by the use of nonrefundable earnest money deposit.

Your ability to work with buyers and control the process will determine the profitability you will have!

Grade your business on a scale of one to 10 in this area!

7. The Presentation

In order to be successful in any presentation you must know your scripts and dialogues. The goal of any presentation, is to get the highest percentage of prospects to sign your contract the first time. This can only be accomplished when your presentation improves. You must know what to say, how to react, and more importantly what not to say in the sales presentation.

Whether is the listing agent, the buying agent, or a wholesaling investing agent, your mastery of the presentation is critical.

Grade your business on a scale of one to 10 in this area!

8. Pricing Property

Understand that pricing property is a two part process. First, the smart practitioner understands that in a flat or downward trend in market, price is the only issue.  Secondly, the practitioner must be able to confront the seller with the truth about the price matter how uncomfortable it is.

Without being able to confront the seller about the truth of the market, regardless of their opinion, no progress can be made. Pricing is the most important factor when selling investment property. No amount of advertising will sell an overpriced property. Therefore your knowledge of this critical skill is paramount.

Grade your business on a scale of one to 10 in this area!

9. Handling Objections

You must learn that there is a direct correlation between the objections you receive and the strength of your presentation. In other words the stronger your presentation, the less objections you will receive.

The Stronger your presentation, The fewer objections you get.  Remember, during the pre-qualification phase, You were able to determine their objections in advance and hopefully prepared your presentation around them!

Grade your business on a scale of one to 10 in this area!

10. Closing skills

It’s important to remember that closing is a natural ending to a great presentation. It’s expected. I can’t tell you how many times I’ve seen practitioners fail to ask at the end of their presentation for the business!

It’s just like coffee and dessert, one doesn’t get angry at the server for asking for coffee and dessert at the end of your meal. It’s just a normal question that they ask… it’s expected. Likewise the homeowner expects you to close at the end of your presentation. Don’t disappoint them!

Grade your business on a scale of one to 10 in this area!

Now it’s time to score yourself!

If you scored between 90 and 100 then congratulations you are superstar status!

If you scored between 80 and 89 then not bad,you’re a top producer!

If you scored between 70 and 79 that I would say that your score was average.

If you scored between 60 and 69 then your skills are below average and need work.

If you scored below 60 I got here just in time!

During Executive One on One Coaching, we cover these areas of your business. I teach you how to improve them incrementally. Just imagine what a 10 to 20% improvement in each of these areas would do in your business over the course of one year!

Oftentimes I’m asked how long will these changes take? The answer lies in the individuals ability to accept coaching, willingness to put in the work, as well as their ability to be versatile. Without these three capabilities, coaching is pointless.

However, for those who do possess the ability to accept coaching, Are willing to put in the work, and have the versatility necessary, then coaching can make a tremendous difference in individuals production.

Until next time,

Have a Powerful Sales Day!

 

 

 

One thought on “The Real Estate Test!

  1. Hey Karl, I took the the real estate test just now. Let me tell you, I scored what I honestly thought I would score, under 60%. I’m new to the real estate wholesale business. I started about 9 months ago in 2015. I’ve invested in myself in a couple of different REI programs. I have some basic knowledge on how all this works. However, almost a year into this and still have not gotten a deal out of my marketing. I need help, guidance, direction, and coaching.

    Like

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