Which Job in My Business Should I Outsource First and Why?


Hey, it’s Joe Crump. Here’s another video,
another question. This one is on outsourcing and the question is, “What job should I
outsource first and why?” Here’s my opinion, and everybody has their own thing because
they do it differently, but the way that I teach my mentor students and the way we do
it, and we do it for a very specific reason, because of the ease it, how easy it is to
outsource the ones that we outsource first. We want to take the ones that are easiest,
get them off the plate, off our plate, into somebody else’s hands and we don’t have
to worry about it. We don’t have to do too much training. It’s pretty easy to do.
And the very first thing that we outsource normally is our boots on the ground. Usually
these are people, if we’re not working in an area, or even if we are, if we’re, if
I’m working out of the state, you know, then I have to have boots on the ground. If
I’m working in the city I can go see the sellers myself. I can show the properties
myself. I prefer not to do that, so I prefer to have somebody who goes out, puts the sign
in the yard, puts the lockbox on the front door, puts the, takes pictures of the house,
you know, delivers the paperwork, if necessary. I can pay that person typically $10 an hour
to do that work, probably $8 an hour. But I prefer to pay a little bit more, $10 or
$12 an hour. I think it makes more sense to have somebody who’s going be more reliable,
has their own car, spends money on their own gas to drive out to the property and take
care of this business for you. This is an easy person to get just by putting a Craigslist
ad, you know, in the gig’s section of Craigslist. The second person that you want to outsource
is your admin person. This is somebody who can, you can have to set up your Automarketer
and make sure that it’s running every week, that new leads are added every week, and that
as you have new leads, and you’re using the CRM, the CRM is a Contact Relationship
Management software that’s inside the Automarketer that helps you keep track of your leads, make
sure you’re doing proper phone follow up in addition to the automated follow up which
it also does. But it’ll, it reminds you, you know, okay, I’ve called this person.
I’m going to put a note in here after I get off the phone with them that they need
to be called, you know, three days from now. Or they need to be called a week from now,
or they need to be called a month from now, depending on what the conversation sounds
like and what that person needs. So that’s the second person you do. And if you’re
the one making the calls to these sellers, you can then put a note in the CRM and it’ll
take care of it for you, but you can also have your admin person looking at these things
and saying, okay, that’s, you haven’t called these people, these people and these
people, you know, here, I’m going to tag these for you, Joe, go make those calls. And
they can keep you on track to get that stuff done.
They can also help you make sure that your ads are running in Craigslist. They can make
sure all the buyers are being followed up on. You know, as you get new properties, you’re
going to get buyers that are looking at all those properties and as you do that, you want
to make sure they’re all followed up on. And the less that you’re doing yourself,
the more you need somebody who’s looking at these leads and making sure that they’re
getting followed up on. Otherwise, you’re going to be trusting just the person who’s
doing that work and that’s not always a good thing. You want to make sure that there’s
checks and balances in your outsourcing so that everybody’s job relies on everybody
else, you know, or at least one person has somebody, he has to do a job that this person
needs in order for this person to do his job. That way, if this guy doesn’t do his job,
we find out about it from this guy over here. If this guy is completely autonomous and he
has no, you know, everything that he does is self-contained and it doesn’t affect
anybody else’s job, then it could go months, or, you know, or a long, long time before
we find out that he’s not doing his work. If we have somebody over here who counts on
getting this information from this guy on this day, then we immediately find out about
it the next day. So, that helps us get rid of people that aren’t performing or not
doing their work. You have to learn how to get rid of people that don’t do their job.
You have to hire fast and you have to fire fast in this situation. Now, I don’t fire
people just because they’re late one day, or don’t do something one day. Be patient
and you know, be humane, but also don’t be taken advantage of. Don’t let them not
do the work. If they’re doing a good job, you can be a little more patient with them
than somebody who’s not doing a good job and wasting your time. So, you know, keep
that stuff in mind. The next person that you’re going to outsource,
and now you’ve outsourced the boots on the ground, you’ve outsourced the admin person,
those are easy tasks to train. The admin person can be trained simply by the material in the
Automarketer itself. There’s training to show them how to use the system and you can
tell them, you know, where to find that and give them access to it. The next person is
the buyer finder. This is somebody who’s going to go after finding a buyer for you.
So, they’re going to run ads in Craigslist. They’re going to run ads on Postlets, which
is now owned by Zillow, and it’s going to give it, put on Trulia and Zillow and you
know, HotPads I believe and a couple of other places that aggregates the ad into multiple
different, multiple websites that sell properties. And when calls come in from that and they
come in from the sign from the front yard of the house, those people need to be, we
need to take their messages right away. We need to find out if they, you know, are interested
in the property, if they qualify to buy the property, get them into the property, you
know, show the property through a lock box instead of having somebody go over there,
if it’s a vacant property. If it’s occupied then we have to have somebody show up there,
and that’s what the boots on the ground guy is for.
And the buyer finder, all he does talks on the phone with buyers, make sure they’re
qualified, gets them into the property, sells them on the idea of buying that property.
He doesn’t have to go in the property, he never has to talk to the seller, doesn’t
have to do any of that stuff. What he will do is, once a week he’ll put together a
little sheet of how many people he talked to and what they said, and what kind of comments
they’re saying, they say it’s overpriced, you know, all those types of things. He gives
that to the admin person, the admin person sends it to the seller to make sure the seller
knows that we’re actually doing what we’re supposed to be doing to try to get it sold.
Also, that kind of feedback will help us get the seller, if we’re not selling it, help
to get the seller to drop his monthly payment. Because the monthly payment’s the most important
thing on a lease option. If it’s overpriced, then it won’t sell at all.
So if it is priced properly and you’re using the marketing techniques that I teach in order
to sell the property, to find buyers, then it’s going to sell in thirty days. If it’s
not sold in thirty days, that means your monthly payment is 99% of the time, it’s your monthly
payment that’s overpriced. You can overprice the property, but not the monthly payment.
The last one that you’re going to outsource is the seller calls. Seller calls are the
hardest thing to outsource and it takes a lot more training and it takes a lot more
skill. The way we do it is in a two-step process. We have them, you know, when they first start,
we just ask them to, you give them a list of questions, and we’ve got the two-step
process in the Automarketer, so the lead sheet in the Automarketer has the questions on it
that they need to ask. They go and ask those questions, they fill in the form, and they
find out if that person is interested in doing a lease option and is serious about it, and
understands it, and they kind of explain how lease options work.
And then they say, “My boss is going to give you a call and he’s going to make an
offer. He’s going to make two offers to you. He’s going to make a terms offer and
he’s going to make a cash offer.” And remember, we make money buying properties
two ways. Substantially under market value, so if we’re making a cash offer it’s going
to be really low. Or, on terms, which could be a lease option or it could be any of the
other zero down hierarchy structures that I teach. So, that first person who’s going
to be making the call and then you’re going to be calling the second time, at least for
a while. But, it means that that first person, they may be calling ten people or twenty people,
and you’re calling one person instead of your calling those ten or twenty people. They
can’t convert on the same level that you’ll be able to because you’re going to have
practiced this. You’re going to get good at it over time. And eventually, they’re
going to get good at it, too, so if you keep them a month or two months, or six months,
eventually they’re going to be able to start closing these deals themselves, and that’s
when you can completely outsource this part of it.
This is the last thing you want to outsource and I’m going to guess that it’s going
to take you three, four, six months, maybe a year before you get to the point where you
can start outsourcing these tasks and some of you won’t even want to do that, because
there’s a certain amount of pleasure that you get out of making offers and being a you
know, a transaction engineer, I guess, is what I’ve heard it called before. You know,
if you do that, where you’re thinking about each deal and how you can maximize each deal
that’s kind of a fun job and you may not want to outsources it. But, if you want to
really do very little in your business and just oversee everything, it’s all outsourceable.
You can extract yourself from the business and really not do very much at all.
Anyway, those are the layers of outsourcing that we’re using currently, and the way
I would suggest that you outsource your business so you get rid of all those tasks. Remember,
the first thing you do in your business is automate everything. You know, get automation
that covers as much of your stuff as possible. There’s certain things that are not necessary
once you automate everything and you realize, okay, I can get rid of this, get rid of the
junk, get rid of the wasted stuff and the wasted time. I don’t need to do this. I
don’t need to do that. I don’t need to do this due diligence, you know, all those
things that you don’t need – get rid of them. And then, all the things that you can’t
automate or get rid of, eliminate, that’s what you want to outsource and that’s what
this list that I just gave you is all about. Anyway, I hope that helps.

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3 thoughts on “Which Job in My Business Should I Outsource First and Why?

  1. Hi Joe! That's a very interesting video. It 's not healthy to carry heavy responsibility of work for a long time.. But we need, in the same time, to find and recognise a good worker.

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