The Compound Effect of Momentum

How can you generate the compound effect of momentum in your virtual wholesaling business? This is one of my favorite topics when it comes to entrepreneurship and specifically being a virtual wholesaler. So many wholesaling businesses struggle because they acquire a property and then stop acquisitions to then dispo the property. Once the property is closed, they are starting flat footed on acquisitions and slowly watch all of their money disappear. In this video, I show a couple of examples of how you can compound momentum to take your virtual wholesaling business to another level!

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Chapters

• 0:00 Maintaining Momentum in Wholesale Operations
• 6:15 Building Momentum for Success
• 22:10 Maximizing Wholesale Operations Momentum

Transcript

Speaker 1: 0:00

What's up, guys? Rj Bates III here, and today we're going to be talking about the compound effect of momentum. This is one of my favorite topics when I discuss entrepreneurship and, specifically, being a wholesaler. This is one of my strong suits. It's what I firmly believe, what separates us from our competition here at Titanium Investments investments our ability to generate positive momentum for ourselves and maintain that and, if we have negative momentum, stopping it, making a small pivot and getting us back on course to gain that positive momentum.

Speaker 1: 0:39

Now I've said for years, being a wholesaler is like riding a roller coaster, right, right, specifically those of you that are sole openers or have a very small team, it is a common occurrence to not have any deals, do lead generation, get properties under contract, so you're doing acquisitions and then, once you've acquired several deals or just a deal, you stop acquisitions because now you have to start dispositions, now you have to start transaction coordination. Okay, and so in the meantime, you've stopped lead generation, you stopped acquisitions, you dispo the deal, it gets a closing, now you have money in your bank account. So what do you do? You turn on the lead generation again, you go back to acquisitions. Well, what happens that whole time while you're doing acquisitions and lead generation, your bank account plummets back down and it's a roller coaster effect all the time. This is very common for small wholesale operations, okay, so what I want to discuss today is how you can maintain that momentum and plan accordingly for those moments, those moments that are momentum killers. Ok, so when I talk about, you know my ability to maintain positive momentum.

Speaker 1: 1:57

A couple of weeks ago, I had a video called Do you Feel Damned? Called Do you Feel Damned? Okay, now, what I was talking about there was is, when things are going bad inside of your business, what can you do to change the course and get back on the positive route? And I gave five steps, and the fifth step of that was, as the leader of your organization, you need to stay stoic. Okay, now I'm gonna talk about that today.

Speaker 1: 2:26

On the positive side, so, when things are going well, everyone loves the feeling of getting a property under a contract. Everyone loves the feeling of sending out an assignment and getting a buyer to deposit earnest money. You know you've got a check coming, okay. But again, even then, it is vitally important for you, as the leader of the organization, to stay stoic and not get too high and not get too low. So during these moments of high, even if I am doing acquisitions, one of the things I pride myself on is a short little celebratory moment and then it's right back into acquisitions. It's right into let's call the next seller, let's get another one. Use that to create a run for ourselves, very similar to a basketball team.

Speaker 1: 3:21

Now you see basketball teams. They go on these runs, they gain momentum. Okay, now you see basketball teams. They go on these runs, they gain momentum. What does the other team do to stop that run? To stop the team's momentum, they call timeout. The opposing coach whose team's getting their butt kicked. The other team's on a 12-0 run. They call timeout. Why? They want to stop the other team and they want to sit their team down and cool them down and say listen, listen, guys. These are the small adjustments we need to make. We're still in this game. This is what we need to do to right the ship.

Speaker 1: 3:52

Now, as wholesalers, what do we do to ourselves? There are times where we're doing lead generation. We're on the phone, we talk to a seller, we get a property under contract and then we call timeout on ourselves. We completely stop talking to sellers, we stop the lead generating activities and we just go into okay, well, now I've got this contract, I got to send it off to the title company, I got to do recon, I got to get pictures done and I got to start dispositions. Woo buddy, you just called timeout on yourself and you killed all momentum you had in regards to acquisitions. You cannot do this, otherwise you will forever be riding the roller coaster. Okay, so there has to be a plan put in place to when I get a property under contract. This is how the contract is going to be sent to the title company, this is how the recon process is going to take place and this is how dispositions is going to get placed. Otherwise, you are calling time out on yourself and you're killing your own momentum that you generate for yourself. So I'm going to use an example of myself getting a contract and showing the small celebratory moment and then moving right on to the next one.

Speaker 1: 5:07

So let's bring that up here real quick, yeah, so? So, yeah, we, we should be good on on both of those. So, yeah, I'll get those sent over to you guys um, today. And, uh, yeah, let me also give me my. Well, actually, I did. You get my text message that I sent you the other day. Okay, so that's my cell phone number and then this is, uh, the office line. So if you ever need anything here, anybody can help you on my team. Um, you'll, actually, after you sign the contract, you'll be hearing more from other people on my team. They'll be the ones that are like, we have a transaction coordinator. He's the one that makes sure that he coordinates all of the closing and the title work and all of that. And then we've got other people that schedule the appointments for the walkthroughs and stuff like that. So, yeah, you'll hear from them. But if you ever need me, just whenever you call the office line, just ask for RJ. Okay, all right, perfect, all right. Well, I'll get that stuff sent over to you today and look forward to doing some business with you guys. All right, awesome, thank you, all right, bye-bye.

Speaker 1: 6:15

Okay, so that is me right there locking up two properties from one seller. What did I just do? I literally set the expectations with the seller that, hey, I'm not going to kill my own momentum. You will be hearing from my transaction coordinator, keaton. In your case, if you're watching this and you don't have an in-house TC, you should go to titaniumtccom and you should hire Easy REI Closings to not kill your own momentum. It's $325. It's a small, minuscule amount to not kill your momentum. And then I set the expectation You're not going to hear from me about recon. You're not going to hear from me about transaction coordination.

Speaker 1: 7:00

Now, let's celebrate this for a second. All right, bye-bye. Yeah, go ahead. Yeah, buddy, give me two, give me two. Baby, give me two. That's what I'm talking about. Hello, this is RJ, give me three. I'm talking about Hello, this is RJ, give me three. I'm just returning a call. That's a property I was trying to sell. Yes, is this Daryl? Yes, it is so right there.

Speaker 1: 7:37

I called this seller earlier today, left a voicemail. This is the compound effect of me constantly doing acquisitions right here. This is a seller calling me back from action that I took hours ago. I just got two contracts. Now he's calling me back. Boom, we're going right into the next one. I already know. All right, let's fast forward here.

Speaker 1: 8:04

It didn't do it, it just fell through. They didn't even. I said just fell through. There. You can try it right, begin enter. Is there a lot box? Or how can we? How can we gain access to the property? Oh, okay, well, it would need to do with closing the day set up. The recon lives in the area. Okay, and uh, she could meet you there with the keys to that area. Okay, I am going to reach out to my two guys down there and see when they would be available to go take a look at that. It could be as early as today or sometime tomorrow. I'm going to go ahead and send over that contract to your email. Once you sign that, I'll send my guys out there to take a look at the property, get pictures and then we'll get the process started. Okay, daryl? Okay, all right. So keep a lookout. That contract should be in your email here shortly. Okay, okay, all right, thank you, daryl, bye-bye, thank you, bye shortly. Okay, okay, all right, thank you, darrell. Bye-bye, thank you, bye-bye.

Speaker 1: 9:10

Man, I really don't like the deal. But every time I say that I really don't like a deal, um, magically, it's like the one that we like sell like that. But man, this one, it has a lot of reasons why it shouldn't. So I'll say that that's what I'm talking about. Small celebratory recap hey, give me two right after that one. I wasn't even excited. That was three contracts in less than 30 minutes. This is what I'm talking about. And what did I do? Had the tc send the contract and I dialed immediately.

Speaker 1: 9:59

Right after that, I'm still doing acquisitions. This is how you build a compound effect. You ride that momentum baby, because, guess what? My competition can't call timeout on me. They cannot stop us. This is why I'm so confident in what we are doing, because we make sure that we have the systems and processes set up. And when I talk about being consistent as a tree, this is why I talk about it right here, because the compound effective momentum is unstoppable. Right there, you see it, I have everything set up. Boom, Send out the contract, set up the recon, and what am I doing? Sending a small little message while I'm celebrating, and then I'm right back to it Give me another one, thank you. Do you guys have that set up? If you don't, you need to start thinking about how you're doing it, because otherwise what you are doing is you are killing your own momentum, that you are gaining inside of your business, is you are killing your own momentum that you are gaining inside of your business and your competition, like me, we're not going to call timeout on ourselves, so we're going to go out and we're going to eat more than you eat, which means I win. You've got to find a way to ride that momentum.

Speaker 1: 11:21

Now let's talk about on the negative side of momentum. So days where nothing is happening, you're not feeling good about yourself. It's voicemail after voicemail after voicemail. Guess what Small pivots, small little changes that you can make.

Speaker 1: 11:36

So inside of my CRM, I've got different statuses. I've got new leads. I've got called no answer. I've got follow statuses I've got new leads. I've got called no answer. I've got follow-ups. I've got contracts sent. If I always start with new leads which I do every single day and I'm not getting answers, I will change a status and go. Let's go to my follow-ups. Let's at least have a conversation. Let's change the momentum a little bit here to where I need to at least speak to a human being. Let's go to our call no answers. If every new lead that's coming in is a bad conversation, let's go to some of our leads that came in last week that we haven't gotten a hold of yet.

Speaker 1: 12:19

Small little pivots. But by God, I can promise you this I'm not going to just stop calling. I'm not going to only give myself two to three hours in a day of calling because I didn't get much traction. No, those are the days where I double down. Instead of eight hours I'm going to go 10 hours. Why? Because, again, the compound effect here. Do you know how many times I called Daryl to get him to call me back that day and then to say I got three contracts in 30 minutes. Both of those sellers took double digit dials 10 plus dials to get them on the phone to have that conversation.

Speaker 1: 12:59

And then the momentum boom, baby contract, boom baby contract. We can look back. Boom baby contract, boom, baby contract. We can look back at it and we can say, oh my God, what a dream 30-minute scenario. But what about all the work before? That's the compound effect right there, being relentless in your actions every single day, because then the results will follow and not getting bogged down. Because you know how many contracts we had during that moment Probably 60 plus contracts. So I could have easily found something else to do in regards to recon or dispositions or a TC issue issue. But because I had my team set up and the processes built around me doing acquisitions during that moment, I didn't have to stop by momentum. So even on good days, even on bad days, whatever, it was consistently me dialing acquisitions only over and over and over again to get those results.

Speaker 1: 14:03

When people look back and they say, hey, rj, what are your KPIs on closing paper leads? And I say one out of every seven and they're like no way I see posts inside of the vault where it's like, hey, the rest of us are closing one out of 15. You know why? Because you're not doing what I do where it's consistent. I don't give up on the guy that doesn't answer the first five times. I'm going to call 500 times if it takes, and then by that time I'm the only person still calling them because everybody else kills their momentum. They give up on it, but I refuse to. My theory on that is is if they came to us and they said they want to sell, I keep calling them until they either sell me their house or they tell me no, I've sold it to someone else. I'm going to have a conversation with them, otherwise it stays in my queue. Titanium Investments will continue to call that lead forever Because we ride the momentum train. We refuse to call timeout on ourselves.

Speaker 1: 15:18

Now here's the thing. This is not just an acquisitions mindset, it's not just actions that you take for acquisitions. It's in everything. I'm going to use a completely different analogy here. I'm going to bring up the results that we've had on my YouTube channel and show you what I mean by that. So I'm gonna get rid of myself here. Here are my analytics of my YouTube channel.

Speaker 1: 15:52

Okay, so on the left here we have in the last 365 days. So you see right up here, last 365 days March 10th 2023 through March 8th 2024. Okay, and then past 365 days we have had 1,948,494 views. The 365 days before that we had 191,901 views. We have 10x our views in the past year. How have we 10X'd our views? One, consistent riding the momentum okay, not celebrating, but doubling down on it.

Speaker 1: 16:58

So, bringing this back up, here you see the chart. This is by days, through the verse. I don't know what is that? 78 days, Not really a big difference. But then here we go. We started the 50-50-50 2.0 and things started popping. See how the blue goes up. And then we end the 50-day challenge day challenge. We could have just ridden that wave and said, hey, we gave it all we had for 50 straight days, but instead we buckled down and we started putting out more content. And then at the end of the year, right here, january 1st, I said we're posting a video every single day. Look at how the blue explodes from the purple Off the charts. Baby, riding that momentum, doubling down on what's working, not searching for something else. Every time I pull up my stats here on YouTube, it says you are getting more views because you are publishing more content. This is what I do in my wholesale business. Okay, we get a contract from LeadZolo. We get another one from LeadZolo. I want more LeadZolo leads. Buy lead from Speed to Lead. Get a contract, give me more more Riding that momentum inside of lead gen acquisitions constantly calling building up that momentum, building up a queue of leads for your acquisitions people.

Speaker 1: 18:46

If you are a solo acquisitions person, make sure you always have leads coming in. That is our job to make sure that we are constantly marketing, we are always lead generating so we always can maintain the momentum, because leads that come in today might close six months from now. You cannot think that the money that you're investing today is guaranteed going to generate you revenue 30 days from now. That is just not a reality. When it comes to wholesaling, every different motivated seller is going to have a different reason as to why they sell and a different timeline. So we constantly have to be building up that. Yes, of course, we're going to run into the sellers that are like, asap, I need to sell right now, and then we're going to have the probate cases that need time. We're going to have the owner-occupied situations where it's hey, I'm moving across state lines, I need you to be my solution and work within my timeline, my timeline.

Speaker 1: 19:53

So, as a wholesaler, it is our responsibility to constantly be investing in the lead generation, to make sure that we have leads, and then, as an acquisitions person, be building up that compound effective momentum every single day, dialing and not calling time out on yourself and finding something else to do, because then businesses like mine surpass you 10x, just like I'm doing right here on my YouTube channel. It's hilarious because I see my competition that I'm creeping up on ones that were millions of views in front of me. We're now passing them. Why? Because of the compound effect more content going out every single day. It's just like more dials and wholesaling. Unless they change what they're doing, they'll never be able to keep up with us, because we're just going to put out more and we're going to find more content that you guys need and want, just like I find more sellers that need us and want to sell their house on a discount. This is the compound effect that you build up for yourself, where you see, the first 78 days there wasn't much of a difference in my YouTube channel, but then it started spiking and then it goes to the stratosphere to 10X the amount of views. Same thing in wholesaling. So when we talk about the compound effect, what I want you guys to focus on is eliminating anything that will stop the positive momentum that you build up for yourself inside of your business.

Speaker 1: 21:26

So if you need to stop acquisitions to do transaction coordination, it is vitally important for you to outsource transaction coordination. If you are going to stop acquisitions to do dispositions on a deal, I think that is a mistake. Yes, you will keep 100% of the proceeds of that deal. Yes, you will keep 100% of the proceeds of that deal, but you will miss out on four, five, six, seven other deals that you could have acquired to sell one. So maybe you could go get five deals and keep 50% of that.

Speaker 1: 22:10

Let's say they average $5,000 or $10,000. So that's $50,000 in revenue. If you had JV'd those, you would have made $25,000. But if you just dispo that, you kill all of your momentum that you had with acquisitions. Then you made $10,000. You literally cost yourself $15,000 in money in your pocket to dispo the deal yourself.

Speaker 1: 22:31

And then the bad part about it is is that the compound effect is not in motion because you're starting for scratch.

Speaker 1: 22:40

You're literally standing still at the starting line again when you have to go back to acquisitions. So it's a never-ending roller coaster that you can't get yourself out of until you find a way to outsource transaction coordination and dispositions. So this is what I want you to think about specifically if you're running a smaller wholesale operation myself and find a way to double down on lead generation and acquisitions and keeping up that momentum to build a monster to eventually where you can hire it out in-house, like I have, where now I have Dispo guys, I have acquisitions guys, I have an in-house TC. So when contracts come in, boom, acquisitions pushes it to TC, pushes it to the dispo guys and the momentum keeps going. Otherwise you're never going to be able to keep up. You're literally helping your competition by trying to save a few dollars for yourself. It's just not going to work. Let me know what you guys think about this concept, this thought. Have you even had this thought about inside of your business? Make sure you like this video, guys, and we'll see you tomorrow.