Transcript: It’s the three ways to win business whether you’re in real estate or some other business. I mean real estate is no different than any other business. Business is one and the same three ways in any business I know. I own several businesses. We flip real estate, and own some rentals or whatever, but at the end of the day it doesn’t really matter. Real estate is a product. Real estate being a product inside of a business, the business is one, and any business in the same three ways, and those are networking, marketing, and negotiating. Those are the one three ways. There’s no other way to win business.
Why don’t we do this Bryce? You want to go put three categories up there, maybe columns.
bryce: Yeah.
stefan aarnio: We do three columns. There’s networking, there’s marketing, there’s negotiating. Why don’t you be on him, and you but on me, and you can cut it back and forth.
bryce: You mean … What do you want? Marketing in the middle?
stefan aarnio: I don’t care. Networking, marketing, and negotiating. Now, here’s the thing if you don’t have any money, but you got time you’ll probably going to want to do networking and negotiating.
bryce: Yeah, these two.
stefan aarnio: Okay. But negotiation … Let’s put under negotiating. That’s time plus skill. Marketing is usually money. You got to spend money in marketing, not much time.
bryce: Yeah. This is always … Well there’s time too, but money is the big one.
stefan aarnio: Money drives it. If you can just spend more you can usually win.
bryce: You can do marketing for zero dollars. There must be a spend. You have to be.
stefan aarnio: There’s always some … There’s knocking doors I would say is a marketing strategy, but it’s a time and money thing.
bryce: Yeah.
stefan aarnio: Then the last one there is networking, and networking is again time, and skill, and maybe money.
bryce: No. This is the cheapest one. This.
stefan aarnio: It’s my favorite. Here’s the thing. When I started out in this business I didn’t have any money, and I keep telling Bryce about the days where I didn’t have any money, and I was broke guy pulling chicken bones out of dumpsters, and sucking the marrow out. That was the mentality. It was just the most broke thing. My game in real estate, how I play it I play networking, and negotiating. That’s how I play.
bryce: You should probably touch on that. You got to be too good at the three.
stefan aarnio: Right. When we’re coaching people we say, “Look dude you got to pick two of the three …”
bryce: He’s a networker and a negotiator.
stefan aarnio: Right, and I still play the game like that. I play it like a gangster. I’m like a mafioso drug dealer boss that has his tentacles in everybody’s …
bryce: Yeah. People know the stuff that you talk while me I’m more of a marketing, and a negotiating guy because I like to do systems. I try to make things that repeat, so this is a systems heavy business here. But the marketing …
stefan aarnio: They all have systems Bryce. They all have systems like negotiation is a system.
bryce: Yeah, but networking is very much like … It’s got to be repeatable, you got to be testing, and that creates marketing. Marketing.
stefan aarnio: Well you’re in the marketing game. Those are the three big general ways to win business, and then inside of each of those categories is a whole bunch of different ways to generate leads. First thing you got to do is decide where do you want to be on this game? Do you want to be somebody who is doing … I decided because I had no money. I was a networker and a negotiator. Why don’t you write under negotiation Bryce education? You got to be educated.
bryce: Yeah.
stefan aarnio: Your … Everybody statistically thinks they’re a good negotiator. It’s a proven fact with negotiation studies, but you got to study. So I wrote this book. Ten Commandments of Negotiation. It teaches you all the techniques of how to negotiate properly. We also have a course over here. The Negotiation Challenge, and this is a home study, plus we do a live event. People think they don’t need to negotiate, but Bryce when you’re coaching people most of them are horrible.
bryce: Well yeah, and the main thing with negotiating is you can do all the networking you want, and all the marketing you want. But if you can’t close it’s a big waste of your time.
stefan aarnio: Right. Let’s write that word up there. Closing. If you’re a negotiator you can close.
bryce: You got to learn to close.
stefan aarnio: If you’re not closing your deals or if you’re getting leads, but not closing it’s because you’re negotiating is really bad. Then let’s go over to marketing.
bryce: We’ll just look at in …
stefan aarnio: What are some things that are going to generate leads on the marketing side?
bryce: Well you got to be actually doing minimum … It’s a minimum, consistent effort. You can’t just one week say, “I’m going to be a marketer this week.” This is like, “I’m going to be a marketer for six months or a year,” because this system is an investment, and it comes out. You put the money in, you wait the time it comes back. It’s not like make a call, talk to a guy, close a deal. This is sends some letters and pray that someone is going to call you, and then get in there, and close the deal. You got to be committing to a particular duration. You can’t just pop in and pop out of marketing.
stefan aarnio: Right. The key is in the old days, what’s really interesting it takes seven objections to close a sale usually. In the old days it was seven penetrations of marketing to get a customer. It’s so expensive to get customers, new customers in marketing. I heard Tony Robbins say at his conference it’s like 16 to 19 penetrations now in marketing. That’s how saturated people are. The marketing that’s good … I found the last two private deals I’ve done was from a $20 car magnet, and a $60 tarp we put up. It’s a $35,000 deal. And the last one before it was a $78 Kijiji ad. The more ghetto the marketing, and the more shitty looking it is the better it works for you.
Write that down. Ghetto, and shitty, and primitive is better. High tech marketing on We Buy Hoses is not good because the customers aren’t high technology.
bryce: Like the 800 numbers? Forget about it. Your old lady or old guy …
stefan aarnio: Yeah. It’s got to be a local number.
bryce: The guy with the tinfoil on his head selling you his hose he is not calling 1-800-WE-BUY-HOSES. He’s calling …
stefan aarnio: Yeah. Put up local.
bryce: Local numbers.
stefan aarnio: It’s got to be a local number.
bryce: It’s got to be a local number.
stefan aarnio: And it’s got to be ghetto. We got a ghetto … Well actually …
bryce: We got a good one. 860 …
stefan aarnio: Check out my car. My ghetto car. My ghetto looking car with my ghetto magnet on it. Can you just get that shot? It’s a dirty yellow $20 magnet. I’m not a car guy, so I don’t care about cars, but I’ll drive that old car with that old magnet, and it’s good because it’s really starting to look shitty, that car. It used to be a nice car 10 years ago when I got it brand new.
bryce: You got to put some miles on it.
stefan aarnio: Well it doesn’t have that much miles, but driving it around it looks shitty now, and people trust a shitty looking marketing message when it comes to We Buy Hoses. If you’re slick they don’t like that.
bryce: Yeah. One thing you’re negotiating here that people might not realize in this business is that you’re actually selling. And what are you selling? The idea that they should sell to you.
stefan aarnio: Yeah. You’re selling that you’re the best choice of buyer. You’re the best buyer. A guy like Donald Trump you can love him or hate him. He’s an amazing salesman, and what he does in his deals he’s a very, very good real estate investor. He’s probably one of the best real estate investors in the world, and Donald Trump is so good because he sells people on why they should sell to him when he’s buying. “You should sell to me for less because …” and that’s what Donald’s a master of, and that’s what made him successful enough to get him in the public eye for television, and then to be the President. He’s a fantastic negotiator, probably one of the best negotiators.
Actually, this book Negotiation right here forward by George Ross. Donald Trump’s chief negotiator and attorney, his chief negotiating attorney that did all of Donald’s iconic deals. George Ross, he taught me how to negotiate. I went and learned from him, and then I wrote this book. George Wrote the forward, which is super cool. It’s interesting because I do some coaching calls with George every now and then, and he says, “Well you know, I just learn from the best. That is Donald,” and Donald is a great negotiator. You can love him or hate him. If you’re in business you should love him because he knows how to get stuff done, and he knows how to negotiate, and he knows how to make money. You should watch him.
bryce: Our networking thing is getting a little bit thin. What do you want to put in here?
stefan aarnio: Networking … Couple plays. One is join a real estate club.
bryce: Oh yeah.
stefan aarnio: I own a real estate club. When I started I would go to these clubs, and I would find all these pikers that couldn’t close, and I would take their deals from them and close for them. Now I own a club, and it’s a little different.
bryce: You continue to do the same.
stefan aarnio: We do the same, but going to clubs, knowing other investors. Other investors are a great source of deals, and the other thing that we do at the networking is I encourage at least 50 calls a week.
bryce: Yeah. 50 is tough.
stefan aarnio: That’s a part-time effort.
bryce: You’re saying dials or calls?
stefan aarnio: Well call is a dial. Call is a dial. 50 dials. Dial the phone 50 times a week. That’s a low number. If you’re a full-time person …
bryce: I did 15 in an hour yesterday.
stefan aarnio: Right. If you’re a full-time you need to be doing 50 a day.
bryce: Yeah. You can do it primary.
stefan aarnio: I would. If you’re part-time, 50 a week. But 50 calls, and then put under negotiating you got to do 10 offers a week. That’s my standard.
bryce: 10 MLS offers at least.
stefan aarnio: Yeah, and then you want to get three counters for your pricing. If you get three counters that’s good. 50 calls networking. You want to be networking, networking, networking, networking. Building those databases, building those deal suppliers, and then put on their off-market networking too. A lot of this game …
bryce: That’s like pocket insider trading?
stefan aarnio: Yeah insider trading. A lot of people look at this game, and they want to have a surefire button push where they push a button, and money just rains down, and let me say this guys it doesn’t work like that. Deal Flow in real estate is a team who is doing it up here in Canada, which his very rare. In Canada, people aren’t doing this volume of business. Doing this in Canada or in the US is about hustle muscle. It’s about respecting the grind. I got my Respect The Grind swag on here. We got our Respect The Grind shirt. We got the Respect The Grind posters.
bryce: What am I wearing? No stories, no tears.
stefan aarnio: It’s all about grinding guys. It’s all about hitting these things repetitively over, and over, and over again because some of these things work, and some of them can be more automated.
bryce: Let’s talk … Well here we got a guy. I coached a student last year using one piece of our marketing tool.
stefan aarnio: Who? Ashton?
bryce: Yeah.
stefan aarnio: Okay so one of our students Ashton, a local guy here …
bryce: He just grinded out the thing. He’s not even worried about MLS at all. He just pure grind private market with our systems, and our marketing that we teach our students. He did 24 deals in 7 months.
stefan aarnio: Okay. Yeah. Look at this. Come back to primitive. Ashton is a young kid. We trained him. He’s like 21, 22?
bryce: Yeah he just did a flyer. Flyers.
stefan aarnio: Okay. You’re getting ahead of me.
bryce: Sorry.
stefan aarnio: Ashton is 21, 22. I don’t know what his education level is. Nice guy, good looking guy, works hard, and he’s done 24 deals in the last one. It’s a great amount of business by knocking doors and using one flyer. He had one flyer we showed him to make, and he used that same flyer over and over again, same door knocking, 24 deals. Mostly wholesales. Good for him. He followed the system, and why we got this poster here. It says, “D-N-F W-T-S-D-N-F W-T-S-D-N-F W-T-S” at the bottom in the little writing. It says, “Do not fuck with the system.” He just came out with one piece of marketing, and followed that piece religiously.
bryce: Rain or shine or in the cold.
stefan aarnio: Rain or shine. That marketing was hitting, and 24 deals later it is his what? Second year of real estate?
bryce: No. He started in the spring of last year. He’s not even a year old.
stefan aarnio: A year and a half in or something?
bryce: He’s still got bathwater behind his ears.
stefan aarnio: Oh in his first year 24 deals because he took one piece, and he just hustled on that one piece. I hate to say it, I spend … My goal this year is to spend $100 grand a month in marketing. Online marketing. That’s my goal. One day I want to get to a million dollars in marketing, and then whatever. That’s my goal. I want to have big budgets, and play with the big boys because there are guys that are spending a million a month on marketing, and they’re winning. But here’s the thing. With real estate primitive marketing it’s more about the human side of the game, and sure you can have some high tech stuff. I know some guys were hitting with funnels like PPC, Paper Click. I know some guys who are … What else is a high tech thing people can do Bryce in real estate? PPC is probably the most high tech thing.
bryce: Yeah, and I mean that’s probably as it gets.
stefan aarnio: Kijiji, Craigslist. I mean that’s super low high tech.
bryce: Yeah. Kijiji is big time because it is low tech. You can buy a toaster for a dollar on there. The same person who screwed up in buying a toaster for two dollars because he can’t afford …
stefan aarnio: Bryce, you got to write Craigslist for Americans.
bryce: Oh Craigslist.
stefan aarnio: If you’re American, Craigslist …
bryce: Or in BC.
stefan aarnio: Is it Craigslist in BC?
bryce: Yeah they don’t do Kijiji.
stefan aarnio: The point is this is all about what’s the right message for the person you’re dealing with, and it’s usually a primitive message for a primitive seller. They’re messed up, they got something going on, and the high tech stuff. I do high tech marketing with books, and funnels, and all of that. But what I found is the biggest thing guys is just face to face, breath to breath, primitive. These three things. Networking, marketing, negotiating, and our program the system, which is behind me here. We got 17 ways to get deals, so we go into great detail with these.
But the theory in the main game is you got to have some hustle muscle. You got to have your 10 offers, 50 calls out there every week to keep this core going, and then you choose a couple of things to add in. Are we done?
bryce: Well, just back to the top with the thing. You got to be good at two or three. You can’t just be negotiating on three. You can’t just be marketing. Because you got to learn how to close. You see the thing is you got to learn how to negotiate. Your tool to get the lead, yeah. But you better be negotiating. You better get good because you can change your ratios from like 1 and 10 to get better to be like 3 and 10 or …
stefan aarnio: One in five.
bryce: You’re probably a one in five kind of guy.
stefan aarnio: Well the last two deals that I went into I closed both of them at really …
bryce: You’re really shooting 100 lately? 100%.
stefan aarnio: That means I’m not seeing enough things.
bryce: Yeah.
stefan aarnio: That’s the end of the video guys. Thanks so much. That is Real Estate Investor Lead Gen. The main thing is the hustle muscle. That’s what wins. I’m Stefan Aarnio, Coach Bryce Kaminski. We’ll see you guys on the next video.
