How A Real Estate Broker Uses The System To Create Leads For His Agents
Case Study – Lathe Lavada – Las Vegas, Nevada
I believe the best way to learn the business of real estate investing is to hear how others have done it.
When these interviews were recorded, I asked Tom, the interviewer, to ask questions that would help the viewer see how these folks got started.
I wanted to hear the struggles, the successes and a clear path and explanation of what they had to do to make these deals happen.
I did NOT want them to be a bunch of people telling you how wonderful Joe Crump was. I wanted content, examples and real life experiences.
I hope we succeeded.
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Read Transcript for “How A Real Estate Broker Uses The System To Create Leads For His Agents”
Lathe: I’m Lathe Lavada. I’m from Las Vegas, Nevada. I’m a Las Vegas, Nevada broker. We’ve done the rent to own and it’s been pretty successful because it puts a whole new spin on the process for me as a broker, just because it typically – I look at it from the broker’s standpoint where I have to get the listing first, so with his program, it makes you able to do it anywhere, and that’s the benefit of the program – that it opens up the entire nation or country or world to you, really, with this type of program.
Lathe: Since I am a broker, I run into people all the time, so using the rent to own method to generate some extra cash flow and help those folks who need another option rather than listing a property. Rather than short saleing it, they can keep the property, rent it out and so on and so forth rather than being foreclosed on. So that’s one of the reasons I got started in the program was to find another option for people that were in the investor vein rather than the real estate vein of things, so I could help more people solve more problems.
Lathe: Oh, it was a matter of under a week once I looked at the documentation and understood how they were handling as far as an investor. Like I said, I come in contact with people every day. So it’s a little out of the ordinary to be in that position since I am a real estate agent and I do generate leads already, having access to that – you just plug in and go, really.
Interviewer: Now, is your name on all of the documents or did you turn it over to another investor?
Lathe: No, my name was on the documents, for the lease option memo. That’s how you start the process and then you assign that to a buyer. Oh, I range anywhere from $6,000 to $10,000 but on that first deal, we made $7,000 on that deal.
Interviewer: So how many hours did you think you put into it, not counting the learning period?
Lathe: Oh, not too many, just a couple of hours.
Interviewer: So, $3,500 an hour maybe?
Lathe: Yes, that’s a good return.
Interviewer: How hard was the work?
Lathe: Oh well, like I said, it’s not hard for me. I wouldn’t say it’d be hard for anybody, because if you let the process take you through it, it’s really not hard. It’s about five different documents, and if you just read the documents, you really are able to do it. So a lot of it comes from holding yourself back, but if you just go with the process like Joe shows you, you’ll be on your way.
Lathe: Well, I’ve known about Joe for quite some time. I was looking into and researching different ways to market and generate new leads and so on and so forth, and I saw his videos on YouTube and he was talking about different things and different ways to generate business, and I thought he had a unique spin on things as far as investing and for realtors to generate new and additional business and income streams in their business.
Lathe: Well, it sounded like he actually had some real world knowledge and was doing deals and still does deals and he had that unique twist, again, that added a new spin to what I’ve already done in the past and what I am doing, so it just seemed like a natural fit, and he seemed very … what do you say? – Very up front and honest; a lot of things in common.
Lathe: I only started about 30 days ago and we’ve got about five deals in the process. I’m adding it into my other business so it’s not a full time thing for me. It’s maybe a weekend to generate some leads, and then call throughout the week along with my other calls. In the past, I’ve done as high as $10,000.
Lathe: But that was taking the listing and working with the buyer and doing it as an agent as opposed to an investor, and I’ll tell you, it saves you a lot of money getting it done as an investor, and time. Because it’s a lot more expensive to get training and a license and learn all the paperwork as a real estate agent than as an investor, so that’s the benefit of that program.
Interviewer: Have you started automating this part of your business?
Lathe: Oh yes, for sure. I have several assistants already that work for me in my real estate business, so being able to learn some of the additional things that Joe’s doing to automate his business has actually helped me automate my brokerage business here and there in different ways and be able to add that in, that additional piece, into my business. So he definitely understands automation and how to build a business, and I think that’s the biggest benefit to his program.
Interviewer: Are you using the Automarketer now?
Lathe: Oh yes, anything that generates leads I’ll add in. Well, I’ll start going outside of my state, because like I said, it’s very expensive to get a real estate license. In the past, you can’t get a real estate license in every state. I mean, when you talk about fees and licensing and this and that it becomes very, very cost prohibitive, so when you can take a system like this and implement it anywhere in the countryside, I mean I’ll implement that in as many states as possible.
Interviewer: What are your goals as a real estate investor?
Lathe: To build that long term residual income, to get those properties rented out, and to build that passive cash flow within that final income when you sell the property. I’ll continue to be a broker. I’ll ultimately automate this entire system and walk out of it and just have it run itself along with the brokerage alongside of it.
Lathe: And it gives me a way to show the other agents in my office how to do business outside of the box, because so many agents are struggling around the country who can’t generate enough business to stay in the business, so this is just a natural side piece to the business they’re already doing to generate new leads and be creative about their business.
Lathe: There’s just so many things to put into place for the business. So, I mean, the sky’s the limit, really. Build it up, sell it off, right? Isn’t that the goal? Retire to the Bahamas? Well, the biggest obstacle I believe in any business, this business included, is to get out of your own way. So, step aside, understand that the process is possible and once you do your first deal, you’ll be doing a lot more.
Lathe: It’s a big factor in your success. If you are part of a group or a mentor program, those folks and that mentor who has done the deals and been effective with it. Everybody needs a good model to follow, so being part of a mentor program is probably one of the biggest factors if not the biggest factors in your success as a real estate investor or agent.
Lathe: He actually does the work, so he does it in this business on a daily basis. He’s automated the systems and the process, and he actually goes step by step through those processes and he doesn’t hold anything back, which is very important when it comes to a mentor program – you can hold those gold nuggets back because one missing piece can spell out failure for you. And that’s, as I see it, one of the biggest problem with mentor programs is that they hold a little bit back because they’re afraid of giving too much and ruining their own business. Joe ultimately doesn’t feel that way; he’s an open book and that’s very important.
Interviewer: Sometimes he gives too much, it seems like.
Lathe: Well, yes, there’s quite a bit of information to consume, so keeping the basics and not getting tied up in the small little intricacies of it in the beginning – just getting that first deal going knowing that, this might be the old school way to start, and then growing into those processes that are more automated is probably going to be beneficial in the beginning.
Lathe: Anybody thinking about this program and wanting to get into investing should give it a shot because you won’t be disappointed.