Episode 14: 25 Minute Coaching Call with Jason Watson

Glenn:

Good afternoon and welcome to the 25 Minute Coaching Call Podcast.  Today I’m pretty excited ‘cause we have Jason Watson from Keller Williams London Lifestyle Realty.  How’re you doing, Jason?

Jason:

Good Glenn.  How are you?

Glenn:

I’m good!  And I’m really excited for this call today.  And…so let me just give…maybe…the listeners a…a quick 10 or 15 second introduction, and then I’ll ask you to kind of fill in the gaps….But…Jason Watson and Stephanie Rock work together.  They trade under the name Rock Watson Realtors.  Stephanie’s focus is more first-time buyers, and Jason is really passionate about helping his buyers buy investment properties to create passive wealth streams so that they can kind of provide for their family.  So…just tell me a little about you, Jason.  What have you done so far?

Jason:

Okay.  We started in real estate 2015 at Century 21, and last year made the move to Keller Williams, I believe in August early September.  And we’ve just been having a blast since then.

Glenn:

Okay, and so what’s important to you?  I mean…I know I mentioned earlier in the call about building wealth, but what’s…why is your… why are you so passionate about investment properties?

Jason:

At this point, I really enjoy helping people find what they’re looking for and properties that can fit their needs.  So we’ve been focusing on that by collecting names from open houses and sending people math formulas and listings, and…so basically just doing a bunch of different things; not exactly sure what works the best, so….

Glenn:

But your primary lead generation right now is, you know, meeting…probably doing…you know open houses investment properties….And when people come through, you kind of talk to them, get to know them, and that’s where you kind of pick up your future clients from.

Jason:

Exactly.

Glenn:

Right.  Well, you know I’m a big proponent of open houses.  They’re a very great source of lead generation if you’re the right person at the right open house, meeting the right people.  There are some agents I know who have built an entire business just on open houses.  And there’s other people who…just like…“I can’t stand open houses.”  And I think the whole point of these 25 minute calls is for people to realize that you don’t have to be good at everything.  You just have to be really, really good at one thing, and then just line up your…all your lead generation activities to a target market of people that you’re really, you know, passionate about and love to work with because you want to be a hero to them.  And the secret is, once you kind of pick that target market, is how can we…what kind of unique process can I create that would deliver a steady stream of great investor-clients to me so…that’s predictable, that I could almost with certainty double or triple the size of the business.  And so I think that’s kind of…are you okay that’s what we’re going to be focusing on today?

Jason:

Yeah, that’s great!  That’s the big question.

Glenn:

‘Kay, great!  So here’s what I would kind of say…first the starting point is I would plan your lead generation and marketing campaign from their point of view.  Always like plan from the customer’s point of view which…you know most of us…a lot of agents are used to going to seminars…or like… “Oh, give them this…give them this….”  I’m like, “You know what?  Why don’t we just ask the consumer, or why don’t we just pretend we’re the consumer and…what’s keeping them awake at night? What is their biggest fear?”  So what do you think that would be for potential….Just imagine you don’t know these people, they’re in London, Ontario, they’re having a hard time getting to sleep at night…what do you think they’re worried about as far as, you know, building wealth and investment properties?

Jason:

I guess it would vary: it could be financial, obtaining money - it could be one of them.  If they have more than one property already, it could be difficult.  Otherwise, people might be afraid of the risks of having a vacant…or something like that. 

Glenn:

Right.  Right.

Jason:

Or…or the fact that some people want…want to do this but don’t have time to manage it, and they don’t know about management companies or how they work.

Glenn:

That’s right.  Yeah, I always find it’s so interesting when you…we talk to somebody about investment properties, and their first initial reaction most of the time is, “I don’t want to be a landlord.”  Like it’s almost like they were…it was beaten into them or something…I don’t know….Something had got into their brain like, “I don’t want to be a landlord; I hear like tenants are hell.”  And I really think it’s kind of one of those like urban legends because the big challenge once you get into buying more and more investment properties and helping people buy more and more investment properties, is the challenge is…there’s so few sellers once they buy an investment property that ever sell them. 

Jason:

Right.

Glenn:

And…isn’t it weird that…that most buyers think, “Oh my god, it’s hellish to be a landlord.  All the landlords I know tell me it’s hell?”  And when the reality is almost all the landlords I know have great tenants.  You know, do they have bad tenants from time to time?  Of course.  But, you know, you can give your people the right tools to screen and get the right people in.  But I almost think it’s this urban myth that’s kind of created by landlords, right?  They don’t want anyone else coming to buy those investment properties, so they’ll just kind of tell people, “Oh, it sucks!  It…it’s…you know…it’s not fun.”  You know?

Jason:

Right, right.  That makes sense. 

Glenn:

Yeah, so…so we can kind of use that kind of information aside that…that when someone is talking, their first reaction is, you know, “Oh, I don’t want to be a landlord.”  You can just say, “Isn’t it so curious that I hear that all the time from people, but…yet if you talk to anybody who actually owns investment properties, they’ll tell you they rarely sell them.  They’re actually buy and hold investors, if they’re buying like income-type properties.”

Jason:

Right.

Glenn:

So, within that investment property umbrella, there’s a bunch of sub-niches, right?  There could be an investor who wants to buy a house to fix and flip it.  There could be someone who buys a house with…like on a double lot, and they hope to sever it and build a…a home and then sell…and sell that.  There could be people who are trying to get a duplex or triplex just for the income.  It could be a bungalow with a basement apartment.  If you had to pick one area of investment properties that gets you excited, what area would you love to kind of focus in?

Jason:

I think I would like to focus on multi-units and such.

Glenn:

Okay.  And what’s important to you about…kind of…the multi-units?  Like what gets you excited about it?  Why is that your focus?

Jason:

I like the idea of offering people the ability to make 10 to 20 percent return of…rate of return on their…on their investment or their money because there’s not many places out there that you can get that kind of a return. 

Glenn:

Right.

Jason:

If the…if the math is right for the property.  It’s a way for you to offer people an opportunity they may not have elsewhere.

Glenn:

That’s right.  You know, isn’t it amazing that when you look around London, that probably most…a lot of the most wealthiest families in London will always be in the real estate game?

Jason:

Yes.

Glenn:

From owning commercial to owning residential, yet there’s a whole capital market, stock market industry that bombards the public all the time that their only great chance at building wealth is through their RSP or through, you know, investing in the stock markets.  And I always think that’s so crazy because…and maybe it’s just ‘cause I’m a…being in the real estate industry for 28 years… is to me buying in an investment property is the lowest risk possible just because we kind of have legal inside knowledge, and we can share that with our clients and we still don’t break any laws.  And that legal inside information is we know what the value of the property is, right, ‘cause we can look at comparable sales; we know what the market rents are because we can compare it to similar units in the neighbourhood and get a pretty good, accurate estimation.  Would you agree?

Jason:

I agree, for sure.

Glenn:

Right, we know what the interest rates are for the next 5 to 10 years, and we can lock in that money.  And finally we can do home inspections and/or do more in depth inspections and find out what our future capital costs is going to be on that property for the next, you know, 1, 2, 5, 10 years.  And based on that, if you already know what the property is worth, you know what the rents are, you know what your mortgage payments going to be because you can lock it in for 5 or 10 years, and you have a pretty good understanding of your capital.  To me, I don’t see where there’s any risk now if the income that you generate off the property is breaking even or you’ve got positive cash flow on it.

Jason:

It seems like a pretty good thing.

Glenn:

Right, whereas…

Jason:

That’s why I like it because telling people that opens their eyes to different options.

Glenn:

Yeah.  And if you compare that to the stock market, the stock market is…I don’t know…like I’ve got lots of money in the stock market, I’ve also got other money in real estate, but the stock market…like, I don’t know.  I don’t know really how it works.  I can’t predict it.  I can’t beat it.  Lots of people way smarter than me spend 24 hours a day trying to break a market, yet if you look at the historic returns of the stock market compared to real estate, it’s not even close.

Jason:

No.

Glenn:

Yeah.  So…so let’s get to the kind of nuts and bolts of the matter.  How can we create a conveyer belt of steady, qualified, great leads to keep coming into your world so that you can fill your passion for helping people buy income and wealth-building…income properties, right?

Jason:

Right.

Glenn:

So the first thing I would do, I would recommend, is there’s two great books that I think should be mandatory reading for anyone who’s thinking about buying an investment property or any agent who wants to start focusing on investment properties.  And the first one is The Millionaire Real Estate Investor by Gary Keller.  We call that the MREI book – The Millionaire Real Estate Investor.  And the second one is a book called Hold.  We call it the yellow book, and it’s written by good friends of mine, and I’m not here to push their books, but Linda and Jim McKissick, who started 24 years ago, wiped out, financially ruined, and then the last 24 years….Well they started with a goal to own 10 properties; now they own 120 properties.  I think they own about 7 Keller Williams offices, 2 regions.  You know, at Keller Williams, of course, we have a profit-share system, and I think they made 1.4 million in profit-share last year.  So from dead heat broke to multimillionaire, positive cash flow in really 20 or 24 years.  And their book is just fantastic.  And would strongly require…you know I think should be required reading for everybody who is going to go into this game because it’s pretty interesting.  The Millionaire Real Estate Investor book doesn’t really tell you the ‘how;’ it tells you the ‘why.’  And Hold tells you more of the…of the kind of ‘how’ that you should do it.  But what I can send you is…there’s a whole PowerPoint and the script presentation that goes with the Millionaire Real Estate Investor book.  And I would strongly encourage you to hold your first investor seminar at your office maybe over the next 30, 60, or 90 days.  And what I would probably do is maybe create some sort of Facebook page called, you know, Buying London Properties, or you could even go through your existing sphere of influence.  And…I don’t even care if two people show up at that seminar because you’re not going to be that good.  Have you done many seminars before?

Jason:

Zero.

Glenn:

Zero, right.  And you know what?  The people who do seminars a lot, like me, we all started at zero also.  And it’s going to be nervous…nerve-wracking, and you’re going to kind of worry a little bit.  But I’m going to tell ya, it’s going to be fantastic.  And the reason you want to do a seminar format with investor clients is because the learning curve is fairly steep on buying an investment property compared to buying a residential house.  Right?

Jason:

Right.

Glenn:

So if you could almost…instead of spending an hour, two, three hours explaining to people what capitalization rates are and what cash on cash returns are….and…you know breaking down the minutia of buying and investment properties.  And it’s not that complicated; it’s just a different language with different acronyms.  Sometimes if you can get 10, 20, 30, 40 people in a room, you can save three hours because you’re giving the exact same information at the exact same time to those people.  But I’ve would invite any past clients you may have who bought investment properties just to come to that seminar, too, because they actually turn out to be great resources for everybody in the room.  And I probably done 20 or 30 at least of these seminars, and my favourite one I ever did was when I brought two of my investor-clients.  And I talked maybe for the first 10 minutes, and then someone in the class asked them a question, and for the next hour and a half they just answered all their questions.  It was awesome!

Jason:

That’s great!

Glenn:

The best seminar I’ve ever done!  People said, “You were great!”  And I’m like, “Yeah, I know.”  It didn’t say anything; it was awesome!  People love to hear the truth, right? 

Jason: 

Right.

Glenn:

From…their…someone who just did it.  And my clients were just so gracious: they were kind of like, “Yeah, I was you a year or two ago and now I own a couple properties.  And…so I know what you’re going through.”  And…you know, great people like to help other great people.  Right?

Jason:

Right.

Glenn:

So I would probably order some books.  You can get that book at Chapters; you can order it at Amazon.  But I’d probably order 10 or 15 books, and I would target people who you know already and give…and ask them if they’re interested in coming to an investor seminar. 

Jason:

Okay.

Glenn:

And just start talking about it in your sphere of influence, and you’ll be amazed at how many people are thinking about doing it, but it just seems too overwhelming to them right now.

Jason:

Right.  It’s a great idea.

Glenn:

And…Yeah!  And just start telling winning formulas like…so if I was…in my sphere of influence and I wanted to fill my seminar, I would…you know, people always ask you, you know, “Hey Jason.  How’s real estate?”  It’s like the most common question we get.  And instead of kind of saying, “It’s great!  And we’re really busy.”  What if you said, “Oh, it’s fantastic!  And I just helped this couple buy their first investment property in London.  They were so nervous at the beginning, but we were able to get a three-unit, like a triplex, and it’s cash-flow positive, like $400 a month.  And the tenant’s paying $600 a month every…like down on their mortgage, so they’re really…like positive $1000 per month.  And they’re just so excited about having their first investment property.”  And I think the more…

Jason:

That’s a nice approach.

Glenn:

Sorry?  Go ahead….

Jason:

That’s a nice approach…that’s a nice…conversation to have – the way you’ve laid that out.   

Glenn:

Yeah, they’re called…yeah, they’re just called ‘Winning Formula Stories’, right?  Because they…you know…people like stories.  We were raised on stories, you know?  From people reading nursery rhymes to….They love fables and they love stories.  And I would at the same time, telling that story, I would say to them, “You know, there’s another income property that I think is one of the best deals in London right now, but I don’t have any clients for it.  Do you know anyone who’s thinking about buying an investment property?” 

Jason:

Okay.

Glenn:

And I think you’re going to be pretty surprised how many people go, “Oh, yeah!  I know….”  Or they’ll say, “I’m interested.”  And then I would just say, “You know what?  The learning curve’s really steep.  And I’m actually going to be doing a seminar…you know…at the office in two months.  It’s going to be Thursday night from 7 to 9 PM.  We’re going to have some wine and cheese.  And…I’m going to go in there, and I’m going to…we’re going to talk about, you know, the best strategies to buy the best…income properties in London.

Jason:

Okay.

Glenn:

And you’ll find that the PowerPoint that you get and the script….It’s about 140 slides, but I’ve condense it down to about 80 because it’s hard.  People don’t have a lot of patience to sit and watch every single slide.  And I’m happy to work with you and actually go over exactly how you do that presentation.  And you’ll just be amazed! 

Jason:

Okay.

Glenn:

And then as a bonus, what I would do is on the Saturday after you do the…say it’s a Thursday night presentation, I would go and like preview a whole bunch of income properties prior to the presentation.  I would bring those active listings to the presentation and hand them out.  And then I would offer that those people can join you for a group orientation tour.  And on Saturday between 10 AM to 12 noon we’re going to see 6 income properties in a row, and you can jump in and jump off the tour whenever you want. 

Jason:

Okay….That’s a great idea.  Just writing this down.

Glenn:

Yeah, no problem.  I did that....Royal Bank asked me to come in and talk to all their financial planners first, and then those people filled up a room, and we had about 90 people at the Royal Bank branch when I did the seminar.  And we lined up 9 properties to see afterward, and 28 people joined us on the tour.  So it was like Saturday 9 AM to 11 AM, we did the actual seminar, and then the tour was 11:30 to 1:30.  You make quite an impression on the street when, you know, 20 different cars show up to see 1 property. 

Jason:

I bet. 

Glenn:

Yeah, all right.  So much fun.  So the issue is how do we fill the seminar, really.  And I would be…one is, you start with your sphere and you offer to give them books.  Number two is you create a Facebook page - a business page not your own page, but you can post it on your own page, too.  But a business page through Facebook is really cool because it’s very targeted.  And…have you done Facebook ads, yet? 

Jason:

I have not.

Glenn:

Okay.  So Facebook ads are a very inexpensive way for you to promote your page directly to a targeted postal code and demographic in age, and geography, and interest group.  So you could target people between…I think the most likely people who buy income properties right now just from past experience, no scientific research, is someone between 40 and 55 who is already started to get their house paid off, is interested in building more wealth, is willing to refinance their property to put the down payment on….And you could target people…London between 40 and 45 in these postal codes only, who like…any investor book you can read about like David Bach is a great author, I think it’s The Millionaire Secret or something.  There’s The Millionaire Next Door which is another great book by Stanley, I believe.  You could do…you know people love Thinking and Grow Rich by Robert Kiyosaki.  Well, all of these authors…

 

 

Yeah, all of these authors have Facebook groups and Facebook pages.  And if you…what you could do through Facebook is just target someone’s interest.  So I could just target everyone in London who likes Robert Kiyosakis’ page. 

Jason:

Okay.

Glenn:

And then I would also invite some of the other agents in your office, if you wanted to, to bring, if you wanted just help filling the room or even if they were to co-teach with you, to bring some of their clients.  And now you just create this atmosphere in the room of 10, or 15, or 20 people who are all there to learn about it.  And I would probably bring maybe a banking person in on how to finance these properties.  And I think you could bring in an accountant on how to structure, and you could bring a lawyer in on how to set them up.  But that’s kind of like the mastery level.  I think at this point even if you get five people in the room and you sit around a round table and just chat that would be the best step forward for you. 

Jason:

Okay.

Glenn:

So what do you think about that idea?

Jason:

I think it’s a great idea – something I can work towards for sure. 

Glenn:

Does it seem overwhelming, or do you think you can do it?

Jason:

No, I think I can handle it…even invite the people that I’ve had planning open houses that I know are looking for investment properties.  And I’ll have to get a hold of that book, the yellow book. 

Glenn:

Yeah.

No, it should be good.

Glenn:

I think if you brought both of those books to your open house and even just…people would ask you about the books, like just lay them on the counter, right?  Or ask people if they’re in…interested and hand them…if you brought extra books, you could also just give them a book.  You could hand them the invite to come to your investor seminar.  You could offer to give them a free list of the top ten best investment properties in London right now.  There’s lots of different kind of ways…and all we’re trying to do is…if you imagine this is what it’s going to look like 12 months from now.  So 12 months from now, Jason, you’re going to have…you will have done probably 9 to 12 seminars.  On average you will get 10 to 20 people at each seminar, which should book between 3 to 6 appointments per seminar, which is 36 to 60 booked appointments in the next 12 months, which should translate into probably…worst case scenario 30 transactions and best case probably 40-42. 

Jason:

Wow.

Glenn:

Yeah.

Jason:

That’s exciting!

Glenn:

It is exciting, isn’t it?  And the beauty…the beautiful thing about it is it’s just that is your unique process of getting people into your…into your world.  And you’re flying under the radar, you’re just building, building, building.  And then once you get this…you’ll get so good and you’ll learn all the inside wisdom of buying investment properties that the sellers will start getting attracted to you because you’ll be posting every time you sell a new investment property.  So now you start building your own seller inventory.  And I would even suggest you start joint-venturing with some of these people who buy properties saying you put the down payment down, I’ll find the property and I’ll manage it, and we’re going to hold it for 10 years and we’re going to share the growth – you get your down payment back, and we’ll share the upside.  And this is the way that agents can start to build long-term wealth and get more into the passive income world, which is way safer than the active, you know, selling world of real estate.  It’s great, but the market can go up and down and sure it’s going to hit you and all that stuff whereas if you move more into the passive world of getting income streams from 5, 10, 15, 20 properties it just becomes a beautiful thing.

Jason:

Sounds awesome!

Glenn:

All right, so we’re almost done!  Do you have any questions about it, is there anything I missed or…

Jason:

No, I think you got it covered.  I’ve made a bunch of notes here, of course.  No real specific questions.  I think you’ve covered…you’ve helped me with like a game plan – some definite goals to work towards.

Glenn:

Yeah.  Does it seem too overwhelming, or do you think you can kind of slowly…like what if you only had 2 people at the first one, and 7 at the next, and 13 at the next, but you eventually you got up to 30 or 40?  Like it’s…this is what it going to happen to you.  It’ll…It’s not like…Rome wasn’t built in a day.  You won’t have 35 people in the first room.  You know?  So….

Jason:

Well, that’s…I could…I could…I could certainly handle a few people and work it from there, I guess, as I become more comfortable. 

Glenn:

Yeah.  I then think what would be really cool is, 12 months from now, what if you had the London…you had a group called the London Investment Club, and you guys just met for, guys and girls and families – whoever it is, you met every month separately from these seminars.  And you brought in, you know, guest speakers and wealth-builders, and you shared the best books and the best ways to build wealth - that’s the way that a niche market helps people build a tribe.  And just remember, like the riches are in the niches.  And I’m so excited for you.  So….

Jason:

This is cool!  Thank you, Glenn. 

Glenn:

Oh, you’re welcome.  Thank you, Jason.  And I’ll say good-bye to all our listeners right now; Jason if you could just hold on the line for a sec?  But thanks a million for joining me on the call, okay?  Have a great day, Jason!

Jason:

Thank you.  Thank you.

Aaron Kyte