How to Make 100k a Year in Real Estate With This ONE Lead Source

In this video, Jared Wright from The Share Group and I discuss a detailed plan on how real estate agents can earn over $100k a year working only absentee owners.
 

Video Transcription

Introduction

Jared Wright:
What the elephant in the room is? It just makes me mad, I want to reevaluate our pricing is what that initial cost is for those 2,800 records, your initial investment of the data.

Brandon Mulrenin:
You make a hundred thousand dollars. I can't, whatever that ROI is, it's insane.

Jared Wright:
Internal investment that turns into a whole lot of zeros on the end of it.

Brandon Mulrenin:
All right. So today you and I, Jared are going to walk the viewers through literally a step by step action plan on how to create six figures as a real estate agent working just one source of business, which is today absentee owners. And they can get all the data from you. It's so funny. 80% of the common into my YouTube videos are like, where do you get the data? I don't, can't tell you how many times I type in the share group.

Jared Wright:
The share group.

Brandon Mulrenin:
The share group, the share group, the share group. So you guys, I'm going to put a link in the description, right underneath this video. You just click the link literally, and I'll show you what happens. And then we'll get into this a little bit.

Jared Wright:
Yes. It's been a hot minute, man. That's good to see you out here.

Brandon Mulrenin:
Yeah, it is a hundred percent. It is really good to see you. This is just my inside of our online training portal for our coaching clients.

Jared Wright:
Yep.

Brandon Mulrenin:
But, you'll still take us to the same place. Okay. So once you click on this link, you guys, you're going to go to this page right here and you can just type in anything you want. Like, you could just wherever you're at and you could type in the zip code and Jared and his team have made these very, very simple to use now. And you can see just by zip code, how many absentee owners there are by zip code. It's like the easiest thing of all time that you and your team have created, Jared. So thanks for that.

Jared Wright:
Man. It's amazing. It hats off to my dear friend, Drew, who I told him the vision and the idea and the guy made it happen. So yeah, it's amazing tool for us and we absolutely love it.

The Blueprint to Smashing it with Absentee Owner Leads

Brandon Mulrenin:
Let me just do it. Now, I'm all. I just love the tool. So, I just like to play around in here. You know what I mean? But, here's the thing you guys like once you work with Jared and his team, like go in here and see, okay, these are all the secret seller leads. So, we've got our likely to sell our divorce homeowners. There're different ones, too. Downsizers by market. Like there's so much opportunity and I don't want to go down the rabbit hole, but Jared and I have made other videos on different lead sources. Today, I want to give you the blueprint for smashing it with absentee owners.

Jared Wright:
And that's what the relationship was built on, man, from five years ago, you and I started.

Brandon Mulrenin:
I know.

Jared Wright:
Based off of the absentee owner conversation. So it makes perfect sense that we're going to paint a picture of what it takes to get to that, to that hundred thousand mark or whatever the mark is, step by step. So this is going to be super awesome.

Brandon Mulrenin:
Yeah. And you're right. That was a second. We've been tracking this and doing this now for five years. We have it down to a science. All right. So, I'm going to get right into nerding out with Jared and we're going to get into the numbers.

Jared Wright:
Yep.

Brandon Mulrenin:
All right. So here's, I'm going to give baseline conversions first and then we're going to work the numbers backwards into earning six figures based on some average commissions.

Jared Wright:
Perfect.

Brandon Mulrenin:
First like this, where this conversation starts, as you know, selling the data, it is all about contact rate. Like that's the top of the funnel.

Jared Wright:
Right.

Brandon Mulrenin:
And so that's why we're all obsessed with your data is because we're seeing contact rates. And I told you off air 10%, but we're seeing them as high as 20%.

Jared Wright:
That's crazy. Right?

Brandon Mulrenin:
Yeah. So for this conversation, we're just going to use 10% baseline. This means when you dial out 10 people, you talk to one person. Hundred people, you talk to 10. 1000 people, you talk to a hundred. 10% from dial to conversation, that's the first KPI.

Jared Wright:
Okay.

Brandon Mulrenin:
Second for the audience is what I call. And I have all the notes from all the data over five years of tracking this stuff, you guys. Contact to lead generated. Okay? So of the people we talk to 30% turn into an actual lead. Let me define what we call a lead. So, we call the absentee owner. They must meet these four criteria. One, they have clear motivation to sell. It's not like, ah, yeah, if I get some ridiculous price, I'd sell, they have clear motivation.

Jared Wright:
Right.

Brandon Mulrenin:
Number two, they have clear timelines around they want to sell. And what we look for Jared on our team is anywhere from zero to 12 months, we want to have a conversion with inside 12 months.

Jared Wright:
Okay.

Brandon Mulrenin:
Number three, they're not obligated to another real estate agent. And they would be open to interviewing us for the job of selling their house.

Jared Wright:
Perfect.

Brandon Mulrenin:
And four, they give us their email address.

Jared Wright:
There you go.

Brandon Mulrenin:
So, if we get all four of those criteria, we call that a lead.

Jared Wright:
"The lead," right.

Brandon Mulrenin:
That's right.

Jared Wright:
Okay. That's the 10%. That's 30% of the 10%, right?

Brandon Mulrenin:
Yep.

Jared Wright:
Okay.

Brandon Mulrenin:
Exactly. Well, we make out a hundred dials. We talk to 10. So far, we got three of them that fall into this lead category.

Jared Wright:
The four steps you discovered. Perfect. Yeah. Makes sense.

Brandon Mulrenin:
Yep. Next, we have how many leads it takes to like, what is the conversion between lead and listing appointment set? Now here's the beautiful thing about the absentee owner business model. You can do listing appointments at home over the phone or via Zoom. You don't even have to go to the client's house. Like you would on a retail sale deal. Like most of our appointments, we tracked it. 70% of the appointments are done either over the phone or over Zoom without the agent ever after leaving their house or their office.

Jared Wright:
That's crazy. And that's a huge advantage.

Brandon Mulrenin:
Oh, massive.

Jared Wright:
Yeah. That's crazy.

Brandon Mulrenin:
Yeah. So we're doing most of the appointments virtually now, which is really good. So, that is 25%.

Jared Wright:
Yeah. Okay. That's the three, so 25% of the three. So one of the three basically, right?

Brandon Mulrenin:
That's right. And we'll back into the numbers, it'll make a lot of sense, but yes, 25% of those turn into actual listing appointment. A Person says, yeah, let's jump on a Zoom. So, you guys [inaudible 00:06:19] do to help me get this property listed and sold. Of those, we're seeing about 70% turn into listing contract signed, where the person says, yes, I'd like to move forward. Here's a six month contract.

Jared Wright:
Awesome. Yeah.

Brandon Mulrenin:
And then the last KPI is of the ones we list because the market's so damn hot. We're seeing 80% of those go to a closing table and get paid. Now those are the baseline KPIs. So Jared let's walk people through like, okay. Using those numbers, what it actually looks like to earn a six figure income in real estate working on one lead source.

Jared Wright:
One lead source. All right. Yeah. Let's figure this out.

The One Deal a Month Challenge

Brandon Mulrenin:
All right. So, we're going to use the average commission right now in the country, which is about $7,500. Okay. So, 7,500 divided by a hundred thousand dollars. They need to close one deal per month. Okay? So this is what I call the one deal per month challenge. Okay.

Jared Wright:
Okay. Yeah. I like that.

Brandon Mulrenin:
I love it too. It's the best. So, what I call it, the one closing challenge.

Jared Wright:
Yeah. One deal a month challenge, you said.

Brandon Mulrenin:
One deal a month challenge. I like that better. All right.

Jared Wright:
Yeah.

Brandon Mulrenin:
So this is how you guys do it. All right. So everybody watching this, just write this down. We're going to start, we're going to work the numbers backwards as Jared and I always like to say.

Jared Wright:
Let's do this.

Brandon Mulrenin:
Again, we took a hundred thousand. We divided that by 7,500, that comes out with 12 closings. Okay.

Jared Wright:
Yeah.

Brandon Mulrenin:
Of the 12 closings, we have to say, okay, if I need 12, how many do I need to list? So we divide that by 0.8, which means we have to list 15 of these absentee owners to close 12.

Jared Wright:
Okay.

Brandon Mulrenin:
All right. In order to list 15, the next thing is, well, how many listing presentations do I need to go on, right? In order to get that 15. So we divide that by 0.7.

Jared Wright:
Sounds good now.

Brandon Mulrenin:
So it's 21 listing appointments over the course of the year that we need to go on in order to list what we need to list in order to close one a month.

Jared Wright:
Right.

Brandon Mulrenin:
Now, in order to get the 21 listing appointments. We said that the lead to listing is 25%. So, we need to generate 84 of the leads. And just to remind everybody, Jared, the lead is clear motivation, clear timeline, not obligated to another agent. And they give you an email address.

Jared Wright:
Yep.

Brandon Mulrenin:
We need 84 of those bad boys over the course of a year.

Jared Wright:
Right.

Brandon Mulrenin:
Well, if we keep working down the conversion funnel, we take 84 divided by 30%, which is our contact to lead generated.

Jared Wright:
Right.

Brandon Mulrenin:
So we need about 280. And then we take that number to say, how many people do we actually need to talk to in order to generate that many leads? We're going to use 10%. Right?

Jared Wright:
Okay. Let's do the 10. Let's be conservative here.

Brandon Mulrenin:
Be conservative. So that's 2,800 conversations over the course of a year. Right?

Jared Wright:
Right.

Brandon Mulrenin:
So, let me put that in context for everybody. 2,800 contacts divided by 240, that's 11 a day.

Jared Wright:
Right.

Brandon Mulrenin:
That's 11 people you have to talk to per day. Now in order to talk to 11 people a day, we said, there's a 10% answer rate. So I mean, simple math, right? It's a hundred absentee owners you have to call per day.

Jared Wright:
Per day. Yeah.

Brandon Mulrenin:
To have 11 conversations to generate your leads, that turn into listing appointments that follow that conversion waterfall.

Jared Wright:
Right.

Brandon Mulrenin:
It's very straightforward. It's very cut and dry.

Jared Wright:
Yeah. And you know what the elephant in the room is, that just makes me mad and want to reevaluate our pricing. It's what that initial cost is for those 2,800 records.

Brandon Mulrenin:
That's right.

Jared Wright:
It's crazy. It's 560 bucks, you know?

Brandon Mulrenin:
Is that what it is?

Jared Wright:
Yes.

Brandon Mulrenin:
Hold on. This is so good. So say that one more time. So for how many is that?

Jared Wright:
Yeah. For 2800 records at 20 cents a piece, I have my calculator watch. I was horrible at math. It's $560. So yeah, your initial investment of the data is the 560 bucks.

Brandon Mulrenin:
Yeah.

Jared Wright:
Now I will say, over the course of the year, you probably want to spend another 150 bucks to update those phone numbers and keep it current, but that's a whole different podcast.

Brandon Mulrenin:
Yeah. Absolutely. And the other thing, I guess, to be fair is because that's 2000 conversations, right?

Jared Wright:
Yeah.

Brandon Mulrenin:
So, really let me just look at that for a second. So let me just see. So divided by one more

Jared Wright:
That is more than fair. I guess I was excited about it.

Brandon Mulrenin:
I know. I was like, holy crap, is that right?

Jared Wright:
I thought it was though, but yeah.

Brandon Mulrenin:
So you need more probably like 15,000 records.

Jared Wright:
Totally. But still that's still under.

Brandon Mulrenin:
Run that really.

Jared Wright:
Yeah. So 15,000 records over the course of a year.

Brandon Mulrenin:
Correct.

Jared Wright:
Yeah. You're spending under $3,000 on the data investment for the year.

Brandon Mulrenin:
That's the key thing. So 15,000 records. Yeah. So roughly three K to get the data.

Jared Wright:
Yep.

Brandon Mulrenin:
It's 3K, you make a hundred thousand dollars on a 3K investment. I can't, whatever that ROI is. It's insane.

Jared Wright:
Yeah, exactly. I'm in the wrong business. That's for sure. But, no, that's still amazing internal investment that turns into a whole lot of zeros on the end of it.

Finding Absentee Owner Leads by City and ZIP

Brandon Mulrenin:
Yeah. And so the way that we look at this from a data perspective is, so when we refer a coaching client to your team, Jared.

Jared Wright:
Yeah.

Brandon Mulrenin:
We say, just get the data from the county, you know?

Jared Wright:
Yeah.

Brandon Mulrenin:
And so, can I search that just for the group right now on the, or is it just

Jared Wright:
You can search by counties. Yeah.

Brandon Mulrenin:
All right. Watch this. You guys, I'm just going to go into.

Jared Wright:
So I think it's city, perhaps, maybe on the bottom left, like you can do city, I believe like, so type in a county, let's try a county.

Brandon Mulrenin:
Oh, Oakland county, Michigan as an example.

Jared Wright:
There you go. Yep. Boom.

Brandon Mulrenin:
There you go. Okay. So I say, this is only pulling two zips though.

Jared Wright:
Yeah. Something's different about it, but I think you put in a Detroit or a larger city in Michigan. Type a city in.

Brandon Mulrenin:
Got it. Oh, I see.

Jared Wright:
Yeah.

Brandon Mulrenin:
Let me see. All right. So that pulls more. So it's probably the bigger one, like let's just see, San Diego, a county.

Jared Wright:
It's a city. I think it's based off city and zip. I think we should change that to county though, too. If we're looking for a larger audience, county would be ideal. The way that the data is searched because absentee is different zip codes on the record. So your mailing address is a different zip code versus your property address. The way the data is searched, we search by SCF, which is the three digit zip code ahead of the five digits. So the SCF for San Diego's 921, and that would encompass San Diego county. So if you search the first three zip codes for Detroit, that would probably incorporate the whole county. And that's the way the data is sorted just for the way we report it. So, county is a little tricky. So when we run county, I have to pull the SCF and then we pull the county just the way we report the mailing address versus the property address.

Brandon Mulrenin:
Got it. So what I want you guys to do is just get, when you talk to Jared and his team, just have them pull the records for the whole county.

Jared Wright:

Yeah.

Brandon Mulrenin:
Because for most people, like in like my county, like I can get to every square inch in my county and probably a 45 minute drive. So when I coach a new agent, I tell them you want to work a one hour radius around where you live.

Jared Wright:
Right.

Brandon Mulrenin:
And so that will get people plenty, plenty of absentee owners. We're not even talking about downsizers, right? That's a different,

Jared Wright:
Oh, that's a whole different conversation. So, this is the one pillar that I think still agents today don't even know about or still don't even understand what it is.

Brandon Mulrenin:
I know.

Jared Wright:
And so it's the wild, wild west still.

Brandon Mulrenin:
Yeah.

Jared Wright:
We were running some reports on how many zip codes we have sold of absentee and the lead shop alone. And it's amazing to see how many zip codes are out there, 25,000 plus, and we've sold under like 600, you know?

Brandon Mulrenin:
Wow.

Jared Wright:
And so it's just crazy a potential of the share group data is still the hidden gem of some of these successes, because you're targeting a lot of people that aren't getting hit by everyone else.

The Best Seller Lead Generation Opportunity the Industry has Ever Seen

Brandon Mulrenin:
Well, and you nailed it. Like if you talk about an elephant in a room, that's it. Because every realtor has heard about calling for sell by owners and expired.

Jared Wright:
Right.

Brandon Mulrenin:
We've been doing that for 50 years.

Jared Wright:
Right.

Brandon Mulrenin:
But it is amazing when you talk to agents like, Hey, obviously you're going after absentee owners. Right? They're like what nobody is, nobody is. 

And so how long this lasts? You and I don't know, like from a business perspective, you're probably like, yeah, dude, I want to sell all which I did.

Jared Wright:
Right.

Brandon Mulrenin:
But at some point, the point is for the viewers are watching this episode. It's like, man, what an opportunity you have right now to find.

Jared Wright:
Still to find.

Brandon Mulrenin:
The best seller lead generation opportunity the industry has ever seen ever.

Jared Wright:
Right.

Brandon Mulrenin:
Right now. And so.

Jared Wright:
And no inventory ever, like, Nebraska, like in Omaha and Lincoln, the MLS is combined now. There's under 300 houses for sale. And that number's all been well over a thousand all the time. So what does a real estate professional have to do? You have to go get listings and you have to find off market motivated homeowners. And, I think that's what we're pretty good at.

Brandon Mulrenin:
So, I want to just for the sake of conversation, I want to run this real quick one more time and go through these.

Jared Wright:
Yeah. That's all right. Yeah.

Brandon Mulrenin:
No, it's all right. I want to just look at something for like, and I'll show this on screen for you guys. I'm going to pull up a word doc. I'm a visual guy. 

Jared Wright:
Yeah. So I obviously.

Brandon Mulrenin:
All right, cool. So let's talk about this. So as an example for everybody watching, let's just say they contact, like what's the average order size that you guys are getting from a record standpoint? Like, are they getting 2000?

Jared Wright:
Yeah. 3000.

Brandon Mulrenin:
Okay. All right. So let's look at this. This is an average order size of 3000 records. And again, can you see that one? You make that even bigger?

Jared Wright:
Yeah. I can see it pretty good.

Brandon Mulrenin:
All right. So 3000 records, what would that cost?

Jared Wright:
Yeah. Three times two is 600 bucks.

Brandon Mulrenin:
All right. So $600 order. Okay. This is what we're talking about on a $600 investment on what could be possible. Okay.

Jared Wright:
Yeah.

Brandon Mulrenin:
So there's 3000 people you should be able to make contact with at least 300 of those people. Right? So that's 10%.

Jared Wright:
At our conservative 10% contact rate, you know?

Brandon Mulrenin:
Yep. Exactly, right. So of the people you actually contact, all right. So of the 300, 30%, right? So what is that? That's 90. 90 of those people turn into actual leads. Right? So that's 30% conversion.

Jared Wright:
Yep.

Brandon Mulrenin:
The next piece of the waterfall is lead to listing. So of the 90, you have 25%. So maybe you're better at math than I am.

Jared Wright:
Yeah. That's the one subject I see it, like, my kids would be laughing at me at this one, watching me sweat.

Brandon Mulrenin:
Twenty Two, listing appointments.

Jared Wright:
Yep.

Brandon Mulrenin:
Okay. So that's a 25% conversion.

Jared Wright:
Yep. And then you close 80% of those.

Brandon Mulrenin:
Correct. Twenty two times 0.8. So you're going to get seventeen listings and that's 80%, right?

Jared Wright:
Yep. And then fourteen come to fruition of those seventeen.

Brandon Mulrenin:
Fourteen sold.

Jared Wright:
Yep.

Brandon Mulrenin:
7,500 bucks, which is the average, right?

Jared Wright:
Yep.

Brandon Mulrenin:
So 7,500. So what does that equal out? So 7,500 bucks, times four, so 30K, $30,000 on a 600 buck investment.

Jared Wright:
And that's the average of what we share.

Brandon Mulrenin:
These are all averages that's right. Something may even go higher.

Jared Wright:
Higher than that, but at least four sold. And so we talk about us in the treasure map to the gold, right?

Brandon Mulrenin:
Yes.

Jared Wright:
You have to buy the map, but you have to definitely go in the hunt. And this is what the hunt looks like. That's what you shared.

Brandon Mulrenin:
That's right.

Jared Wright:
And we hear, four listings, I got six listings, I've got eight listings, I've got four. And so you're looking at that ROI. It's 10 times at the bare minimum. I think it's worth that investment of the time and money.

Brandon Mulrenin:
Yeah. And to give, so the 3000 is that, like probably average per city or people getting like two or three cities.

Jared Wright:
Two or three zip codes, five codes.

Brandon Mulrenin:
Yeah.

Jared Wright:
There're about five zip codes.

Brandon Mulrenin:
So one city, two or three zip codes in a city.

Jared Wright:
Exactly. A small city. But yeah, when you talk San Diego, there's 48 zip codes and over a hundred thousand absentee owners.

Brandon Mulrenin:
Wow.

Jared Wright:
That San Diego is a crazy market too. We have an investor client of ours that calls through a couple, 10, 20,000 records every 60 days. And they're just turning business. It's been pretty really lucrative for them.

Brandon Mulrenin:
Yeah. And I agree, any coaching client I get in San Diego or California for that matter, we don't even have them mess with for sale by owners or expired.

Jared Wright:
Right.

Brandon Mulrenin:
We just haven't focused on absentee owners and downsizers.

Jared Wright:
Yeah. That's awesome.

Brandon Mulrenin:
So, dude, this was fun. This is really tactical, like stuff. This is very real. This is all data driven analytics.

Jared Wright:
And it's like, you're pulling back the curtain telling these people exactly what they need to do to make that money. And we have those resources available. It's pretty exciting. Outside of me jumping the gun on my premature math. It was really good.

Brandon Mulrenin:
That's great. So if you guys, all you have to do is again, click the link. It's right beneath this video.

Jared Wright:
Yes.

Brandon Mulrenin:
You'll jump on. You'll go to that site. I just showed you guys, you'll be able to put in your zip code, your city, and then Jared's team will get you guys the data. And then all you have to do is do the work. You got to make the calls.

Jared Wright:
Go on the hunt. Yes, exactly. Our team's available live chat, the function is available on there. And so we try to be very service oriented in any questions or comments you guys might have. So yeah, you got to do the work, but gosh, this thing is in place for a lot of success, man. It's awesome. You paint that picture for everybody.

Brandon Mulrenin:
For sure. So dude, thanks for jumping on with me. Like always, if you guys have any questions about the strategy, you could put them in the comments below this video and Jared and I, or somebody from our team will get it back to you guys. But hopefully you got some value. You got some good takeaways, some meat and potatoes. And if there's anything that we can do for you guys, let us know.

Jared Wright:
Yeah.

Brandon Mulrenin:
So appreciate guys watching.

**Footnote - In the video our math was a bit off, in a good way.  $105,000 Commission is the real number!!

Actual Metrics (*revised)

  • 3,000 records / cost $600
  • 300 contacts (10%)
  • 90 leads (30%)
  • *22 listing appointments (25%)
  • *18 listings (80%)
  • *14 Sold x $7,500 (average)
  • *$105,000 Commission - Yes this is real!

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