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Real Estate Investor Mistakes

Real Estate Investor Mistakes

Most real estate investors don’t know how to prescreen their incoming leads. You need to be able to quickly eliminate the suspects in this business and only deal with the prospects. You only want to work with people that want to do business with you, period.

You should be able to instantly look at the numbers and decide if this is a deal for you to pursue. Whether it is a seller or a buyer. The information you want from the seller is their asking price, their loan information, repairs on a property and what the seller thinks their house is worth, and know at a quick glance if this is a property that you want to work with or not. For a buyer, you want to know three main things: what’s the most they can afford to put down, what’s the most they can afford monthly and their credit standing. Of course this is simplified, but the point is prescreen and proceed.

You need to get really good at prescreening your deals, because if you try to over analyze something and you’re struggling to even know if a new lead that comes in is a deal for you, then you need to go back to the basics. You need to understand and get very good at prescreening your incoming leads. So, that way you can get rid of all the time wasters (suspects) and only focus on the prospects.

That leads to another mistake made by most real estate investors when it comes to buyer leads. The big oops is putting tenants into a house without collecting enough of an option fee. Boy oh boy, does this mistake ring a bell for me. Let me share. I had a house that I put a lease option tenant into the property. And it was a house that I had vacant for a little bit longer than normal and was starting to get a little bit antsy. I wanted to get that thing occupied. I was just tired of writing a check every month and not having a check coming in.

Well, stupid me, I go and I put a tenant into the property with pretty much no money from them. And I got sloppy and then I had to evict them. They didn’t make the first month’s rent payment. And frankly, it’s my own fault.

So, don’t make the same mistake that I did. If you’re going to put lease option tenants into your houses, make sure that you get at least 3% to 5% of the purchase price from them. That is the guidelines that I usually follow. I made an exception to the rule and I dealt with it, but that’s life. I made the decision and then I had to suffer the consequences.

So, for your sake, if you’re going to do lease option properties and you’re going to put tenants into these properties, please get as much of a down payment, a non-refundable option fee from them that you can. Do not put tenants in properties without collecting enough money from them.

If you put them in for just a few hundred dollars, I can virtually guarantee you that you’re going to be getting that house back a lot quicker than you thought. So, take my advice on this one. It’s not worth the headache.

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Smart Investing

Smart Investing

I wanted to share with you a mistake that can squash your real estate investing business. This is a big one. This is very important – real estate investors, beginners and seasoned investors, do not take title to properties in your own personal name. And whether you know it or not, that is a no-no. It's not good.

If you're trying to build your empire and you're buying all these properties in your own name and something does eventually happen down the road and there's a lawsuit brought up against you for one reason or another and an attorney goes down to public records and looks up all the real estate that you own and they see 20 properties that you own, all in your own name, you're in trouble. Well, he is just going to be rubbing his hands together, licking his chops and thinking, "Man, we're going to get this guy good because we know everything he owns. We know all his assets." It's all public information. Don't you think it would be a lot smarter, at the very, very least to at least put these properties in one of your corporations, an LLC, a limited partnership, something like that. But even better, if you were going to hold title on properties, it would be even better if you put these properties into a land trust, a grantor trust. It's very simple.

A land trust is something that simply holds title to property. There are two parts to a land trust. There is the warranty deed to trustee, which gets recorded, and you as the beneficiary, appoint someone as the trustee of the property. I would recommend it not be somebody with the same last name as you, it should be one of your entities, whether it's your corporation or LLC or whatever, that should be your trustee. And the second part of the land trust is the trust agreement, about a 12-page or so trust agreement. Yours might be more or less depending on whichever one you use. Mine's about 12 or 13 pages. And that trust agreement does not get recorded. That trust agreement is simply the babysitting instructions for the trustee and it also tells who the beneficial interest is of the trust. So, the trust takes title. The trust owns the property, but you or your entity owns the trust. I don't want to get too confusing here. If you need to, go back and reread that last paragraph.

But utilizing land trusts is very, very smart in your business. And if you're not sure about doing that, contact me and I can work on helping you understand it better about land trusts or any of these other things that we're talking about. And it would just be very wise to not get into the habit of taking title to properties in your own name. You do not a want people to know how many assets you have. And the empire that you're creating, you want to remain private as much as possible, because it will just help minimize potential problems down the road. So, be wise about this. Look into using a land trust or even an entity versus putting properties into your own name. And for the record, a side note, this can also go for the actual home that you live in. The home that I live in is not in my own name. I keep it in a land trust. So, every piece of real estate property that I own is in a land trust. It does not cost any more when you buy a property to put it into a land trust than it does to put it into your own name. All it depends on is what piece of paper you use to have that filed at the courthouse and in this case it's a warranty deed to trustee if you're using a land trust. 

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Real Estate Investors Working With Private Lenders

Real Estate Investors Working With Private Lenders

You might have the best business plan in the world and all the drive to be successful that a person can have, but there are always limits to what you can do with your own resources. We’ve all been there. You start out, pick up a property or two here and there, market like you should, and at some point you hit a wall. The well of capital runs dry and that leaves you with some serious decisions to make. This concept of “What now?’ is not often addressed in real estate books or seminars and leaves many investors frustrated when they reach this point in their business. So, what do you do?

The idea of raising business capital is the answer to this dilemma and there are several ways to do it. One is to work with either local or national lenders to establish business lines of credit. Some of these are very simple and require no more than a business entity and decent personal credit. Others may require asset verification and can become larger and larger over time. A second option is to attract and raise private money.

Private money has been a foundational element of new businesses for a long time. What do you think fueled the ‘dot com’ boom in the late 90′s? Much of the capital that poured into the tech industry during this time period was private money and a lot of people and businesses got wealthy as a result. It is not at all uncommon for a business to seek and raise capital to support its growth and development, so why should your business be any different? When investing correctly, I believe that you can offer private lenders a much safer return than any stock in the stock market.

If you need capital or simply would rather not use your own, then this is a topic you need to pay close attention to. Since many investors attract capital from individuals who are not formally licensed to loan money, the term that is often used in real estate is a ‘private mortgage lender’. Over the next few posts we’ll explore some of the intricacies of raising such funding for your own business and how your credibility affects this process.

Finding Private Mortgage Lenders

One of the greatest things about using private lenders is that they can come from almost anywhere. They can be friends, family, or Joe Blow down the street. They could be conspicuous high earners like doctors or lawyers, or the millionaire farmer who still drives the ratty old pickup truck everywhere he goes. They could be obvious (like your professional team members) or completely unexpected, like someone you’re sitting next to on a plane. You just never know and you need to be prepared for whatever circumstances come your way.

The critical first step to finding private mortgage lenders is to start acting like a businessperson who is looking for venture capital. Chances are a private lender is not going to come up to you one day and ask if you need money. I’m sure that has happened in the course of investing history, but it is not common and you shouldn’t expect it to work like that. Your microphone should be on at all times, and you should be networking your business regularly. Be ready to talk shop, promote what you do, and be ready to talk the business of private mortgage loans when the topic does come up.

As you might expect, a big part of your success with private mortgage lenders will be your perceived credibility. You’ve probably heard of the term “credibility kit” before. A basic credibility kit for the real estate investor has a number of advantages, including:

  • Being able to present a basic summary of your business to others.
  • Being a foundation for your marketing program.
  • Offering an organized business summary to bankers, private lenders, and other team members.

All of these advantages are equally important. I believe it is important to briefly discuss some of the primary components of a credibility kit, so you can begin to assemble yours as soon as possible. There is no universally recognized template for such a kit but the following list will give you a good idea of how to get started. A good credibility kit includes:

  • A nice cover letter that introduces you and your business
  • A summary of your business philosophy, focus areas, and experience
  • Examples of how you market your business
  • Deals you have completed (if applicable)
  • An excerpt or full copy of a business plan
  • Testimonial letters and recommendation letters.

These components together paint the picture that your business is for real, has focus/direction, and is well organized. All of these convey serious credibility and this is why the credibility kit is such a useful tool for your business. Not only will your own kit make you accountable to its contents and help you focus your efforts as your business grows in success, it will also give you a tremendous amount of confidence.

This type of kit is perhaps most useful because private lending prospects will likely want to see something about you before offering their funds. When you have something to offer them that describes who you are, what you do, and a little about your business vision, you’re well on your way. Once you can engage a prospect in the subject of money, you need to know what terms are to be agreed upon and that is my next subject for discussion.

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The Real Estate Investor Credibility Kit

The Real Estate Investor Credibility Kit

Sample Business Plan Outline Author's Note: Although there are numerous ways to assemble a quality business plan, this particular outline can be easily adapted for a real estate investing business and is thus an excellent recommended choice for you to consider. The Executive Summary The first page of your business plan should be a persuasive summary that will entice a reader to take the plan seriously and read on. The Executive Summary should follow the cover page, and not exceed two pages in length. The summary should include:

  • A brief description of the company's history
  • The company's objectives
  • A brief description of the company's products or services
  • The market the business will compete in
  • A persuasive statement as to why and how the business will succeed, discussing the business's competitive advantage
  • Projected growth for the company and the market
  • A brief description of the key management team (if any)
  • A description of funding requirements, including a time-line and how the funds will be used

The Product or Service It is important for the reader to thoroughly understand your product or the services you currently provide or plan on providing. However, it is important to explain this section in layman's terms to avoid confusion. Do not overwhelm the reader with technical explanations or industry jargon that he or she will not be familiar with. It is important to discuss the competitive advantage your product or service has over the competition. Discuss any barriers that you face in bringing the product to market, such as government regulations, or the effects by any competitors. Areas that should be covered in this section include:

  • Is your product or service already on the market or is it still in the development stage?
  • If you are still in the development stage, what is the roll out strategy or timeline to bring the product to market?
  • What makes your product or service unique? What competitive advantage does the product or service have over its competition?

The Market Investors look for companies with a thorough knowledge of their target market. If you are launching a new product, include your marketing research data. If you have existing customers, provide an analysis of who your customers are, their purchasing habits, their buying cycle. This section of the plan is extremely important, because if there is no need or desire for your product or service there won't be any customers. If a business has no customers, there is no business. This section of the plan should include:

  • A general description of your market
  • The niche you plan on capitalizing on and why
  • The size of the niche market, including supporting documentation
  • A statement and supporting documentation as to why you believe there is a need for your product or offering by this market
  • What percentage of the market do you project you can capture?
  • What is the growth potential of the market? Include supporting documentation.
  • Will your share of the market increase or decrease as the market grows?
  • How will you satisfy the growth of the market?

The Marketing Strategy Once you have identified who your market is, you'll need to explain your strategy for reaching the market and distributing your product or service. Potential investors will look at this section carefully to make sure there is a viable method to reach the target market identified at a price point that makes sense. Analyze your competitors' marketing strategies to learn how they reach the market. If their strategy is working, consider adopting a similar plan. If there is room for improvement (and there usually is), work on creating an innovative plan that will position your product or service in the minds of your potential customers. The most effective marketing strategies typically integrate multiple mediums or promotional strategies to reach the market. Such as TV, radio, print, web, direct mail, trade shows, telephone, public relations and promotional materials. Next week I'll continue the business plan outline starting with knowing your competition.

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Selling Your Real Estate Investment Properties

Selling Your Real Estate Investment Properties

It’s Friday and that means that whatever properties you are trying to sell right now, you need to have ready to show over the weekend. Both the properties that will benefit form a little staging and those ugly ones that need attention from investor buyers. Most real estate investors don’t get the house they are buying ready to sell. This is a mistake because it will delay finding a buyer and tie up your money longer.

Sometimes this just requires a little bit of cosmetic sprucing up or some staging in the property. You would be surprised how little things like that will do tremendous wonders to the home. You can go to Wal-Mart and spend one or two hundred bucks on some small items, some kitchen towels, some bathroom towels, some fake fruit baskets, some silk plants. I mean, you name it, some rugs, some curtains, stuff that makes it look like the house is lived in, a shower curtain in the bathroom, different things like that, little cosmetic toiletry things, nuances. It’s very important and you’d be surprised.

If the house looks like it’s already being lived in and it’s warm and inviting and comforting when people walk in to the property, they are going to want the house that much more than if they walk in the house and it’s a white tornado and it’s cold and it’s empty and it just looks like a vacant home, just like every other vacant home off the streets.

So, you want to do everything you can to try to make the home look inviting and warm. And another way to do that is get some air fresheners. Even if it doesn’t smell, get some plug in air fresheners or something in there so that way when they do walk in there it smells good. Because when people are buying, people are buying with all their senses, not just one or two.

So, do all you can. Sometimes it’s just the little things, a little bit of cosmetic stuff and a little bit of staging will do tremendous wonders to your properties when you go to sell or occupy these things. Trust me, it will help 110%.

If you have an ugly home for sale, make sure you are drawing attention to it by all kinds of for sale signs in the yard. Get pointer signs on nearby street corners. The more you can let buyers know how flexible you can be with selling this home, the better. Don’t be afraid to try an ad in the paper especially a couple days before a weekend when people are more likely to house shop.

For more details on how to market homes for sale, click on the following link and learn all about it. www.freemakemoneygift.com/Invitation.html

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Investigative Real Estate Investing

Investigative Real Estate Investing

Due diligence in its more common usage refers to a voluntary investigation. As a real estate investor you must do the required and proper due diligence on a property before going to closing. In my opinion, you should view it as mandatory and not voluntary. And it is an investigation, so be a smart sleuth. Very, very important that you do the right amount of research and the proper due diligence before you buy a property. It’s simple stuff.

First, you need to double check the title, make sure there aren’t any other judgments, liens or encumbrances you weren’t aware of on that property. You will also need to verify the ARV, the After Repaired Value. You verify that with comps. If you’re unsure based on your own assumptions, get an appraisal. Get a termite inspection. Get a property inspection. Get a mold inspection. You certainly don’t want to pay too much for a property, especially if the comps are showing its’ value has decreased.

If you don’t do proper due diligence, then it’s your own fault. There’s nobody else to blame but you.

Another due diligence is get title insurance. You can’t be too careful. It’s cheap insurance to pay in case something goes wrong with the title down the road. Even if you have checked and double-checked the title, if an attorney doesn’t have the right verbiage in a deed or something like that happens you will be covered.

Do your due diligence ahead of time. Measure twice, cut once. Do your due diligence before you close. It’s a simple thing. It’s a simple checklist of what to follow and what to do before you bring money to the table whether it’s yours, a private investors or a mortgage company’s, you have to do your due diligence on the front end.

On the flip side, another angle to this is make sure you do your due diligence with a tenant buyer when you’re selling a property, before you put somebody into a home. It’s very, very important. And I am very guilty of this on too many occasions, but after awhile you start to learn. You start to get some scars on your back from all the arrows that get shot in it and you start to make adjustments and do things the right way. This entails doing background checks, credit checks and if necessary look at paystubs and bank statements. A serious tenant buyer has nothing to hide and will appreciate your thoroughness. You don’t want to risk anyone’s money particularly if you are providing seller financing to someone and you wouldn’t be doing anything different than any other mortgage broker or lender.

So, I’m trying to tell you these things from my own personal experience. Do your due diligence with a tenant buyer. Have a mortgage broker check their credit, or if you’re with the credit bureau, you check their credit. Check their ability to pay. Can they actually afford to make this payment? Do a background check. Do a skip trace check. Check all the adults that are going to be in the property. Check their tenant history, all of this stuff.

It’s up to you to prepare on the front end for what the worst that could possibly happen. It’s your job and your job alone to be the one who makes the final decision based on the due diligence that you’ve done or had done on whatever the situation is that you’re doing.

Just be smart about it and work on improving the quality of your due diligence.

Here’s a kick right into investigative investing. I’m providing all kinds of clues for you to use right from the beginning. Your first key is to click on this link:

www.freemakemoneygift.com/Invitation.html

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Real Estate Investing in Black and White

Real Estate Investing in Black and White

One mistake that a lot of real estate investors make, and I can attest to this, but I don’t make them anymore, is they don’t get everything in writing. This is a cardinal sin when it comes to real estate investing even if the person you are doing business with is a friendly acquaintance. Very, very, very, very important to get everything in writing when you’re negotiating on a deal, whether you’re buying a property or selling a property.

There are going to be a lot of nuances that come into play when you’re negotiating with the other person. They’re going to want something. You’re going to want something. You want make sure that in order to avoid any future issues down the road, questions, problems, misunderstandings, all the agreements are spelled out in black and white. The more that you have in writing, the better you’ll be able to justify and explain and understand and go back and remember what was agreed to. None of this he said, she said stuff. So, that way if somebody were to come in from third party and look at all your paperwork from an outside point of view having not spoken to anybody involved, that person from the outside in should know exactly what the terms were, what’s going on and be able to make a decision based on one way or another if it came down it and know exactly what was agreed to. There would not be much room for interpretation and you wouldn’t be left guessing how your rights in the deal were being compromised.

Get everything in writing that you possibly can. There are addendums to contracts called CYA letters, which stands for Cover Your Assets (and other things if you know what I mean). It’s very important that you get those signed in certain situations if the situation calls for it.

If there is a situation that initially may not seem as if one of these addendums is necessary, but your gut says, you know, maybe I should then DO IT. It’s kind of like my father-in-law who when building just about everything uses gorilla glue in addition to the nails. It may not seem entirely necessary, but the job is that much more complete and he feels whatever he just put together is that much more secure. Also, it’s ok sometimes to ask the other party to sign an addendum that you thought maybe you should have got signed in the first place. You should always be vigilant about protecting yourself, because if you aren’t, no one else will and your business success will be a real struggle. You want to make sure you get everything in writing so that everybody knows; all parties know what’s going on.

Let’s drive this point home; if somebody can’t come in from an outside point of view and clearly see what was agreed to and know all the terms of the deal in black and white, then you’re not being concise enough with your documents. So, get everything in writing. It will protect you down the road if you ever need protection down the road with something.

I know this sounds like a really simple thing, but you’d be surprised how many people do not actually incorporate this process in their business. Get it in writing.

I have plenty for you in writing, manuscripts, CDs, and the list goes on all about real estate investing and what you need to know to pursue this business. You must go here:

www.freemakemoneygift.com/Invitation.html

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Use Scripts for Real Estate Investing Phone Calls

Use Scripts for Real Estate Investing Phone Calls

Here’s a tip for all of you investors out there who may feel intimidated by getting on the phone and talking with buyers and sellers or anyone you may do real estate business with for that matter. USE SCRIPTS! A lot of real estate investors do feel intimidated initially and make the mistake of not working from scripts when they make phone calls.

It’s very important that you work from scripts, especially in the beginning because you don’t know everything. You don’t know always what to say when people say something. And you forget. And you get nervous. And you get scared.

You need to have a piece of paper with a prepared script on it in front of you when you’re at your desk and you pick up the phone to call somebody back about buying their property. If you have a script in front of you, which tells you what to say, it’s so much easier and builds much more confidence. And you don’t forget something that you wanted to say if you have it written down in front of you.

Something else you want to incorporate in your script is answers to questions that the buyer or seller may ask. Particularly, answers to questions posed in opposition to what you are proposing or discussing. If you are able to respond quickly and effectively to any challenges thrown your way, that’s an even better credibility boost for you. It shows that you have covered all your bases and just aren’t trying to BS your way through a deal. If you are going to become a credible, trustworthy investor who does what you say you will do, you better know your stuff and be able talk confidently to buyers and sellers.

This is a really simple tactic that a lot of people don’t utilize in their business. It’s okay to pick up the phone and have a script in front of you, so that way you don’t forget or say something stupid.

So, if you don’t already work from scripts, try it. Until you start to get good at being on the phone, asking the right questions, analyzing properties on the phone, speaking with buyers and sellers. Until you start to get really good at that, work from scripts.

Write down your script and utilize that on a regular basis when you negotiate buying and selling properties. It will make your life a lot easier. It will reduce the stress and it will make you sound more professional because you’re saying good things, you’re not starting to get diarrhea of the mouth when you talk, you’re keeping it simple, you’re getting right to the point, people will appreciate that.

And they won’t know for one second that you’re on the other end of the phone looking at a piece of paper hoping that you don’t slip up and forget what you’re going to say.

So, it’s okay to work from scripts. So, implement that in your business if you need it and utilize it on a regular basis. One more thing, the scripts you use are the result of knowing how to invest wisely. They are not meant to just get you through a phone call, you better understand what you are saying and back it up by closing the deal correctly.

Educate yourself wisely as well. Check out what I can provide and give it a test drive. If you don’t like what you see, give me a call; believe me when I say, I’ll know how to respond! J Go to: www.freemakemoneygift.com/Invitation.html

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The Five Steps to Business Success

The Five Steps to Business Success

These five steps that I’m about to share with you may or may not be new to you, but they are the five steps that you should be following in your business every day whether you’re buying a property or selling a property.

For the record, a great mentor of mine, Ron LeGrand, taught me these steps and I owe him a lot of credit for this. So, without further a due, the five steps that I’m referring to are the following:

Step #1 is you have to locate prospects. What that simply means is if people are not calling you with a house for sale on the front end of your business, then everything else doesn’t matter because you have to generate leads before you can do anything else in this business. So, step #1 you have to locate prospects.

Step #2 – you have to prescreen prospects when they call. So, you have to get them to call, but then you have to prescreen them to know, which leads are prospects and which leads are suspects. You obviously want to get rid of the suspects as quickly as possible and focus only your time on working with the prospects.

Step #3 – after you prescreen the prospects, you want to construct and present an offer to them, whether you’re buying a property, you want to construct an offer or multiple offers to the seller on how you would buy their house. If you’re selling a property, you want to construct an offer or present an offer to the buyer on how you can sell them the property. So, step #3 is constructing and presenting offers to the lead.

Step #4 – after you’ve constructed and presented your offer, you need to follow up and get a commitment. So, after you’ve constructed the offer, if they are willing to move forward with your offer, then obviously you need to follow up and get a commitment from that person as quickly as possible. And you need to tie up that commitment and do that with a contract, something in writing to tie it up with.

And then obviously Step #5 is close quickly and get paid and then repeat.

So, those are the five steps to success in this real estate business and any business for that matter that you’re in. Those five steps will and should apply on a macro point of view for your business.

So, as a little side note, if something in your business isn’t quite working right, then I would highly advise you to go back and look at these five steps and determine where in your business there is a hole in these five steps.

Are you having a problem generating leads? Are there problems getting persons to commit? Find out where the problem is if you have a problem in your real estate investing business. It will be somewhere within these five steps. So, as long as you keep these five steps as the cornerstone and the foundation to your business, then you will be very successful as a real estate investor.

To get more information about these five steps and learn how to implement them in your business, click on the lick below and take ACTION!

www.freemakemoneygift.com/Invitation.html

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Investors – Don

There are many real estate investors that make promises they cannot keep. Now, please pay attention here because this is very, very important.

The last thing that you want to be seen as when you’re a real estate investor dealing with sellers and buyers is to be seen as somebody that does not keep their word.

Now, I can pretty much guarantee you that the moment that you make a promise to a seller that you’ll buy their house, or to a buyer that you’ll be able to put them into the house and you do not follow through with that promise, you will be looked on very negatively. And you will be certainly creating a negative image in your business.

An example where a situation like this might come into play would be if you’re buying a foreclosure property from somebody that is behind on payments and you’re going to have to negotiate a short sale. So, you’re getting paperwork signed with them and obviously your goal is to buy the property. But you’re getting paperwork signed with them, stating to your seller that you’re not going to make any promises to them that you’ll be able to follow through with this short sale deal, because you’re not in control of the situation.

You can tell them that you’ll make every effort that you possibly can to buy this property and stop the foreclosure, but that you will not look them in the eye and make them a promise and give them false hope that you’ll be able to do something that you do not know you’ll be able to do.

Now, situations like these are very difficult for a lot of people, because it’s human nature to want to tell the other person that you’re talking to that you’ll be able to satisfy their need and solve their problem.

But unfortunately, as the business owner, you’re not going to be able to be all things to all people. You’re not going to be able to solve every problem. You’re not going to be able to buy every property.

So, with that said, just be very careful that you do not get yourself into a trap where you’ve made a promise to a seller or buyer that you will not be able to keep that promise.

Another big reason not to make promises you can’t keep is because you want testimonial letters from happy, satisfied clients. These clients are the ones you have been honest with and not given any false hope.  Now, I can assure you that it is vital to the longevity of your business to get these testimonial letters from your clients.

When you are trying to sell yourself to somebody, whether it is a seller or a buyer, I can assure you that there is nothing more powerful than what other people say about you. What you say about yourself is great, but it is 100 times more powerful if somebody else says something good about you. And that is where these testimonial letters will come into play with your business.

If you were to walk in my conference room in my office, you will see that we have framed dozens and dozens and dozens of testimonial letters from people that we have bought houses from and sold houses to and they’re all over our wall.

Therefore, when we bring new clients in and do business with them and they see these testimonials and they read what other people have to say about us, it makes my job as the real estate investor that much easier to persuade somebody to sign some paperwork or do business with me. Because they’ve already seen that other people are willing to do business with me and have been very satisfied in doing business with me. Therefore, they, in turn, are willing and happy to do business with me.

So, if you’re not already doing this in your business, make sure that you start asking the people you do business with for a testimonial letter. If you close on a property and you buy a house from a seller, when they go and sign paperwork, ask them to write a little something saying, “Thanks for doing what you said you were going to do and for helping me through this problem.”

If you put a tenant into the property, ask them to write a little testimonial letter when you sign the paperwork with them, asking them to say that, “You’ve worked with my situation and you were very pleasant and professional and easy to work with.” All you have to do is ask. If you don’t ask, you won’t get it.

And if you’ve already done some deals and have not been collecting these testimonial letters, then I can assure you that it’s not going to be too late to go back and contact some of the people that you’ve done business with and simply ask them if they will write a testimonial letter for you.

If you have to bribe them a little bit then bribe them. There’s nothing wrong with that. Give them a little $25 gift certificate to Red Lobster. People will gladly do stuff like this for you if you ask them.

So, if you want to set yourself apart from other real estate investors out there, make sure that you incorporate testimonial letters into your business.

Want to see how impressive a wall of testimonial letters can be?

Go to www.freemakemoneygift.com/Invitation.html

When you accept the FREE gift, you will get to see my wall of testimonials plus so much more.  Go now!

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