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Technology for Real Estate Business – Friend or Foe?
Today I want to discuss something that really annoys me and lots of business professionals are guilty of doing and it’s a huge mistake. There are too many people attached to their cell phone, their e-mail, and their computer. Real Estate investors fall into this category as well. It’s amusing to me when I’m in a public restroom and the guy next to me answers his phone while he’s using the bathroom!
To me it doesn’t make sense. You’re telling me that you could not wait to pick up that call until after you finished using the bathroom? If you’re reading this post and you’ve been guilty of that, hopefully you will start to change your ways because it’s sucking the time out of you. Plus, you do not impress anyone by talking business in a public restroom, restaurant or department store. In fact, it comes across as very unprofessional and disorganized if you can only do business somewhere where you can’t be entirely focused on the business. Make sense?
Really, I think that these cell phones and these e-mails and these computers are great. Don’t get me wrong. In fact, I use them and we use them in my business all the time and without them we would be lost. But these electronic business necessities are also a tremendous procrastination tool and they need to be turned off once in a while and you need to go out and get dirty.
If sellers and buyers are calling you and asking you questions about a house or calling you because they’ve got a house for sale and it’s going right to your cell phone, then something is wrong with the structure of your business. You need to recognize that.
Whether you believe me when I tell you this or not, you do not need to be accessible every second of the day. You may think that you need to be accessible every second of the day, but you do not. I don’t have a problem with people using e-mail and cell phones and computers in their business. I mean, they’re phenomenal tools. But if you’re going to use them, use them wisely. Do not let them secretly force you to procrastinate.
If you’re going to check e-mails, I would advise you to check e-mails later in the day. Check them during your lunchtime. Do the important things that need to get done in your business first, and then check your e-mails. It’s okay if phone calls go to a twenty-four hour voice mailbox. It’s okay if they go to a live operator system.
Think about some of the things that you can do to help manage your time better, because once you recognize how valuable and important your time is, you will soon start to recognize that you need to spend more of it doing things that are productive. A lot of times cell phones and e-mails and computers do not result in productive time. It’s easy to get caught up in just using the device and not accomplish what you initially set out to do which was check something off your to-do list.
Recently, one of my staff shared a conversation she had with one of our VIP members. This member is actively pursuing real estate investing, has a couple deals in the works and is excited about the opportunities ahead. The only problem is this individual is struggling to make the most use of time. While working throughout the day, being tied to the computer and phone, time has the upper hand. You need to have systems, you need organization and you need to stick to it. Setting up the systems will take a little focus in and of itself, but once you have something in place you will be amazed at how much you can accomplish in a short amount of time. Part of doing this is getting away from the phone and emails from time to time. And for goodness sake, when you run errands, have lunch with a friend, are in line at the bank, using the restroom, don’t answer the phone!
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Meetings with Your Real Estate Team and Partners
Meetings With Team Members
Meetings with team members are less frequent than other meeting types but are no less important. I think these are some of the easiest meetings to work with, because you can have a set agenda and expect that it can be followed with little deviation. For example, you schedule a meeting with your realtor to discuss a new market niche you want to pursue. While you aren’t exactly sure what the meeting will produce as a result, you should have a pretty clear idea of what you are going to talk about and that will make the meeting go easier.
When meeting with team members, let them know in advance why you are meeting and how long you expect the meeting will last. This is referred to as the meeting before the meeting. Ultimately if you want your meetings to be successful then the appropriate parties should know what to expect. This allows them to prepare and also is respectful of their likely busy schedule. As far as meeting conduct goes, be sure you are on time and, minus a little friendly chitchat, keep things on task so nobody feels like their time is being wasted. I suggest also summarizing the meeting when it ends so each party knows the answer to ‘So where do we go from here?’ When you can do these basic things, your professionalism as a goal-oriented and organized entrepreneur will shine through and impress your team members.
Meetings With Business Partners
Some of you have formal business partners, some of you are married to your business partners, and some of you may simply be considering whether or not a partner is right for you. For many investors, partnerships can be good ways to capitalize on the strengths of the members and should result in more overall productivity. Some partnerships are simple relationships between a financier and an investor for a particular deal. Others are more detailed relationships, which impact the business on a more regular basis. Regardless, your meetings with them will have some similarities.
Chances are your association with a business partner has already been at least partially established so the whole first impression thing is less of an issue. However, if you’re in charge of getting something ready for a meeting or have progress to report on, then it is a good idea to have done what you were supposed to do. This is very logical but is also often overlooked. It is wise to make sure partners have proper accountability to each other and that each partner is comfortable with both receiving and giving opinions or criticisms as warranted.
Whatever you do, if you decide to operate with a partner make sure that you get everything in writing up front. Each partner should know at the outset of the partnership what the other person is accountable for. I’ve personally seen and been involved in business partnerships that have succeeded as well as those that have failed. Sadly, partnerships seem to end because one person is doing more than the other that in turn creates bitterness and hostility. Know your roles and do what you say you are going to do to the best of your ability. Another option you may choose to consider if you are unsure about establishing a long-term partnership is to create a partnership on a deal by deal basis. This way you are not locked in to any long term commitments to anyone. If you can’t or don’t want to be accountable to anyone then don’t go into a partnership. The good news is a partner is not at all needed to be wildly successful in this business.
As you’ve seen from my little discussion here, meetings in this type of business are critical to your success. Sometimes meetings are cut and dry, right to the point if you will. Sometimes they are speculative and involve a lot of brainstorming. Sometimes they are a mystery, giving you little advance notice of what to really expect. Regardless, your approach to meetings and ability to handle them will be a huge part of your business arsenal. Treat each and every meeting as if it was worthy of your full and undivided attention and your various clients will never be left feeling like they were a waste of your valuable time, even if the meeting doesn’t end up being as productive as you might have hoped.
The way to approach meetings is a lot like approaching a client for the first time. In an initial meeting, the first impression a client has of you will have a lot of bearing on whether they choose to do business with you or not. Similarly, a scheduled meeting is basically a continuation of that first impression a client has of you. You may have to use a little intuition or gut instinct to gather what their first impression may have been. Beyond that, you have a great opportunity with meetings to either:
- Continue a good relationship that started off on the right foot
- Right the ship if your first encounter with a client ran into some snags
When you are organized, attentive, task-oriented, and just plain personable, the general flow of most meetings will be in your favor. Clients know that you are meeting for a reason and, more often than not, they will be expecting that you will dictate the flow of meetings. Be prepared to run the show, have an agenda, and be ready to adapt as needed. When you can do these things, you will get the most out of meetings you have and your productivity will shine.
The Real Estate Investor Credibility Kit – Part 5
Section 7: Testimonials (optional)
Testimonials add a lot of value in many sales settings and, that said, they are optional here in your credibility kit. While a testimonial from a past client may add value to present or future clients (from the standpoint of working deals), many readers may not need to see validation from other people that you are the real deal. If your kit has done a good job of summarizing your business, that will often be enough. If you choose to use testimonials, keep them brief and don’t overdo it. Your readers want to be compelled but may not want to feel like they are reading a sales pitch so be modest with this section.
Should you choose to use testimonials, make sure you get permission from the source and only use as much information about the source as they feel comfortable with. Some readers will see a testimonial signed Dave N. as hokey, so, if a testimonial source is hesitant to allow you to offer more about them (e.g. a full name, phone number, etc.), you must decide whether or not the value of the testimonial is enough to still use it.
Along a similar train of thought, I’m also asked about the need to have a list of references and I feel the same way about them as I do about testimonials. If you have a sterling reference and want to include it then, by all means, do so. Just understand that most readers will not dismiss you if you don’t have them so rest assured. After all, this isn’t a job resume, so it doesn’t need to have all the things a resume would.
Additionally if you have any other letters of recommendation, newspaper articles, interviews, etc. that will enhance your image to the readers then show it off here. It can’t hurt and can only help build your credibility.
Section 8: Summary
Any good proposal needs to start and end on a good note and a credibility kit is no different. A short statement to the reader, thanking them for their time spent in reading through it and welcoming them to contact you for more information, is usually all that is necessary here and it gets the reader thinking about the next step before they set your kit down. This little step alone can be a difference maker so take it to heart and think about what you’d like to see if you were reading one if that helps you prepare the exact content. An example summary statement is shown below. You’ll see that the example shows a signature and this final touch can really carry some weight so please give it some consideration.
Example Summary Statement
In closing, I sincerely thank you for your time and attention in reading through the summary of my business that I’ve provided to you. I hope you have found it informative and that reading it has helped you get a better feel about what my business has to offer and how we might possibly be able to work together in the future.
Should you have any questions, please don’t hesitate to contact me at 555-555-5555 or simply send me an email at my business@businessname.com. I look forward to the opportunity to answer your questions and also look forward to the possibilities that lie ahead. Best regards.
John Q. Investor
I will be taking a few days off for the New Year celebration, but will return Monday to continue sharing all the content that builds an impressive credibility kit. So to you and yours, Happy New Year! Remember to be grateful and purposeful in the days ahead!
I am also providing material for only the cost of shipping and handling by going to the following: www.freemakemoneygift.com/Invitation.html This is the best real estate investing tool on the planet! You do not want to miss the opportunity to start this New Year off right, with invaluable information to make REAL money in this fun and exciting, life-changing world of real estate investing! Go now!
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The Real Estate Investor Credibility Kit – Part 4
Section 4: How You Calculate Returns
Many readers of your credibility kit may be playing the role of lender, in some fashion or another. As such, you want to be able to briefly show how a lender’s return would be determined in your kit. It is not to suggest that a lender prospect would be unable to do so themselves, as they most certainly will be able to do this. What you want to show is that a lender’s return is important to you and that you have put some thought into this, and that you would be ready and willing to walk them through it if it was a deal in which they were involved.
Even if a reader of your credibility kit is not in a position where they might be a money lender, this section shows some examples of basic numbers that will generally resonate well with someone who is deciding whether or not they think well of you as a business owner.
Example of How You Calculate Returns
Initial Investment: $100,000
Agreed Interest Rate: 8% fixed for up to 12 months, 2% per quarter thereafter
Term of the Loan: 18 months
Total Return (%) 8%+2% for each of two quarters after the first 12 months= 12%
Total Return after 18 Months: 12%*$100,000+$100,000= $112,000
Section 5: The Pro Forma
The pro forma is a document summary of a deal you would present to a funding source, be they a traditional lender or one that is private. While this is listed in the main section of the credibility kit, some of you may choose alternatively to list this in the Appendix, especially if many of your readers are not sources of funding.
You can be as brief or as detailed as you want to be, but the point is to give the reader confidence in your ability to analyze real estate deals. You not only demonstrate the ability to do your homework when evaluating a deal, but also show that you can communicate the value in a deal when you do a good job preparing a pro forma. Readers love to see that you have your act together and a demonstration of what they would experience when working with you is a great way to show this.
As a way to hit some middle ground when building your own credibility kit, you might consider listing this as a section in the main body of your kit, and simply listing what the pro forma would contain if it were “live”. For those kits that are intended for funding sources, the full pro forma could then be included in the Appendix for their reference.
If you would like to see an example of a detailed pro forma to give you a good idea of what types of information you’d want to include in one of your own, please make a request at www.BrianEvansSupport.com or in the comment section below.
Section 6: Examples of Advertising
Does your business walk the walk or does it just talk the talk? Readers of your credibility kit may be wondering about this as they are evaluating whether or not they wish to work with you and there’s nothing quite like real examples of marketing or advertising to show them that you are indeed for real. You don’t necessarily need to divulge your overall marketing strategy here but at least show some examples of the different tools and messages that you are sending out there so the reader can see that you are serious about your business and that your message is prone to capture the interest of quality clients and deals. Clients who have come so far as to be reading your credibility kit likely do want to do business with you and they want to feel reassured that you will have some deals to back up what you’ve told them to date.
I am happy to provide examples of advertising. These strategies are essential in getting your phone to ring so you actually have the opportunity to do business with someone and share your credibility kit with others. Please let me know you would like more information on advertising by leaving a comment in the section below.
I am also providing material for only the cost of shipping and handling by going to the following: www.freemakemoneygift.com/Invitation.html This is the best real estate investing tool on the planet! You do not want to miss the opportunity to start this New Year off right, with invaluable information to make REAL money in this fun and exciting, life-changing world of real estate investing! Go now!
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The Real Estate Investor Credibility Kit-Part 3
Section 1: Company and Program Overview
This section of the kit is where you provide a quick summary of who you are, what you do, and why you are worth doing business with. There’s no exact format for how to do this but I suggest some or all of the following components in this section:
Ø Company history (brief)
Ø Company mission statement (if you don’t have one, create one)
Ø Brief description of why your target area is good for real estate investing
Ø Types of deals/clients you focus on
Don’t go overboard with any one part of this section but make sure it is clear and conveys a good message
As I stated in my previous posts, I can and will provide you detailed information about the basic points and samples of items I refer. Just email me at www.BrianEvansSupport.com or comment on this post. I’d be glad to help.
Section 1b: Personal Bio
A personal bio is an optional feature for the credibility kit but it can often add a human touch to the kit that may carry some weight with certain clients. If you have a particularly compelling success story to tell as a real estate investor, a personal or professional background that you feel would speak to many of your readers, or simply want to tell the reader a little about you and what you believe in as a business owner, then this the place to do just that. My suggestion is to be brief; compelling as your story may be, you also don’t want to detract the reader from the mission at hand, which is why your business deserves their attention.
Section 2: Project(s) You Have Completed
You can give all the hypothetical examples you want for things to come but there’s nothing quite like an example of a past successful deal to validate that you are for real. You may be thinking ‘That’s great, but I haven’t yet done a deal!’ and that’s OK. Omit this section if you haven’t yet done a deal and also see this omission as motivation to get a deal or two under your belt as readers of your credibility kit will see value in your experience and that you are not relying too heavily upon them to make a living as a real estate investor.
Now here’s an extremely important piece of not only your credibility kit, but also how you put together your offers.
Section 3: How You Evaluate Real Estate Deals
A reader of your credibility kit may be compelled by your ambition and the possibilities of working with you but they will still want to see that you know the difference between a good deal and one that is questionable. You may have different ways that you evaluate deals and the important thing is to be able to clearly and concisely communicate how you look at deals in which you may invest. Sure, numbers shown here may be just an example, but it can go a long way towards giving your kit readers the confidence that you choose deals carefully and have a system in place to make sure the deals in which you participate are of the highest caliber.
Example of How You Evaluate Real Estate Deals
Property Address: 123 Main St. Anytown, USA
After Repair Value (based upon recent comparable sales): $225,000
Less Profit Margin (20% of ARV, but can vary) -$45,000
Less Repair Estimates -$15,000
Less Closing Costs (10% of sales price) -$22,500
Less Holding Costs (6 months, ~3% of ARV) -$6,750
Less Miscellaneous (10% of previous cost total) -$8,925
Maximum Allowable Offer (MAO) $126,825
If you would like to explore more about evaluating your real estate deals and making the numbers work for you, then you need to check: http://www.freemakemoneygift.com/Invitation.html
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Strategic Buying
Want to know how I make BIG checks in real estate investing?
Well, the one thing you must do first so that you can go to the bank later is to consider how you will sell a property before you buy it!
Proven types of Exit Strategies We Consider
The exit strategies we consider are determined at the beginning of a deal process. We make our money when we buy the home, such as when we negotiate a sellers debt in a short sale process, however we don’t realize our money until we exercise one of the below exit strategies.
- Wholesale - The business of locating houses, usually needing repairs, at bargain prices and quickly passing them off to bargain hunters well below retail value.
- Retailing - The business of locating houses at bargain prices, usually rehabbing them and selling to the end user for all cash with new financing. This exit can offer the greatest return however, requires the most resources.
- Quick Turn - The business of acquiring a home, needing little repairs, well below market value, perhaps through a short sale, and immediately putting the home on the market to find a 100% financed homeowner.
- Getting Ownership - The business of getting ownership to pretty houses in lovely areas by taking over existing debt. Creating seller carry back financing, and finding a new homeowner.
- Lease Options and Options - Taking control of a property by leasing it from the seller or obtaining ownership from the seller with the intent to quickly find a new quick turn buyer or lease option buyer for the home.
- Auctioning - The business of taking a home that we acquired well below market value and holding an auction for the home to create instant buyers and quick sales. This exit strategy is targeted for executive style homes.
Why is it so important to know how you will sell? You need to know your options. Let me explain. If you don’t know all your options to sell than you taking a huge risk of losing a deal when new complications arise that I refer to in one of my courses, The 77 Biggest Mistake Real Estate Investors Make.
Biggest Mistake #44 that a lot of real estate investors make is they do not have more than one exit strategy to their deal. Now, the reason why this is important for you to know is because the more exit strategies that you have in your business with your properties and your deals, the easier it’s going to be for you to get in and get out and get paid and move on to the next deal.
Whereas if your only exit strategy is to sell a property for all cash to an end-user buyer, then you’re very limited on the people that can buy that property from you, and you’re really cutting yourself short to a lot of different exit strategy avenues. Quite frankly, most of what you’re going to be able to do with your exit strategy is going to depend on how you purchased the property.
So, just keep in mind that whenever you plan to make an acquisition, whenever you plan to purchase a property, you always want to have an idea on what your exit strategy will be when you purchase that home. For example, if you can buy a property and have the seller owner-finance it to you, then you have a lot more flexibility on what you can do with it in the back end.
If you want to sell it for all cash to an end-user buyer and the numbers make sense, you can do that. If you want to sell the property as a lease to own and put a tenant in it and collect a down payment, you can do that. If you want to sell the property with owner financing and do a wraparound mortgage to your end-user buyer, you could have the option to do that.
Whereas if you buy a property and get a mortgage on it in your own name and do a small rehab job to it and it’s a one or two year ARM where the rate is going to go up soon and you’re going to be very limited after the rate adjusts, your only goal and your only intention is, “Man, I’ve got to sell this thing for cash so I can get out of it and pay off that loan!”
Well, you’re very limited to what your exit strategy is with an approach like that. And unfortunately, this is where a lot of real estate investors fail, because they do not have flexibility with their exit strategies. They only have one exit strategy that they can do in their business.
So, just keep this in mind as you begin or continue and grow your business: Always think about what your exit will be before you buy. Keep your exit in mind and be as flexible as you possibly can to the end-user buyer so that way you can get in, get out, and get paid quickly.
Want to learn more? Go here: http://www.freemakemoneygift.com/Invitation.html
Check out pure powerful money making, business life altering real estate investing resources. This is a $1,620.94 value, absolutely FREE!
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Perhaps you have never done a real estate deal in your life…
Perhaps you don’t even own your own home. Perhaps you just started this business recently. Perhaps you are a seasoned real estate investor but are over-leveraged and doing everything you can to avoid a financial crash. Perhaps you are equity rich and cash poor. Perhaps your credit is extended to the max.
Whatever your particular situation, did you know that there are some tricks of the trade that will help you move faster along that proverbial learning curve to reach greater levels of success. If you could learn to do a better job of tapping into your own potential, and stop making decisions based on conventional wisdom, how many cool doors of opportunity do you think may begin to swing open in your business and in your life?
What I’ve found, time and time again, is that the doors for success are always there and always waiting to be opened no matter where you live, what your life history is made up of, or what you have (or don’t have) in your bank account. If you’re like me, you weren’t born into money and wealth. And whether you choose to believe me or not, this is a good thing. At least it was for me, because I decided to take my life into my own hands and accept responsibility for my own actions indefinitely.
This type of mind set is not common in today’s society, and this is the exact reason why the majority of society is broke. Think about it, virtually everyone we’ve encountered throughout our entire lives is broke or slightly above broke. When we were born we were handed to a broke nurse, who handed us to our broke parents. We went to school and were taught by broke teachers. We got jobs and were hired by broke managers, and now perhaps you are a broke manager.
Don’t you think it is about time to break this cycle? I personally don’t want to see you dismayed by what is keeping you from a more fulfilling and more successful life. Whether you think you are ready for a change or not, now is the time to take your life into your own hands. The good news is, you don’t have to be born with this mindset, it can be taught. When the student is ready, the teacher will appear. Are you ready for change?
If you’re reading this report today, you are probably someone who is hoping that doors will open for you in your life, your work, or your real estate investing business. You may feel like your life is pretty good but it could stand some room for improvement. You recognize that opportunities are out there, but the doors between you and opportunity won’t open. Why is that? Do you feel like you’re missing something, that maybe something is slipping through the cracks and keeping you from reaching your full potential? Chances are, this missing element may be more income and more time.
Life should be fun and challenging at the same time. If it isn’t yet, it can be. If you are looking for a new direction then perhaps real estate is the answer.
Here’s an invitation from me to explore that answer.
Go here: http://www.freemakemoneygift.com/Invitation.html
to check out pure powerful money making, business life altering real estate investing resources. This is a $1,620.94 value, absolutely FREE!
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Real Estate Investing Reality Check
Listen to this 1 on 1 recording with a current VIP Member about Real Estate Investing. This is Very Real, Very Powerful, and Very Implementable Content that you can use Today.
If you are Not a VIP Member and Have NOT received The Incredible Free Gift then go to: http://www.FreeMakeMoneyGift.com
To your Ultimate Success,
Brian Evans
Q&A Testimonial with One of My Most Prized Students
If you are a skeptical person, or someone interested in learning more about how to make money as a real estate investor, and choosing the RIGHT program to spend money on, then it is very important that you listen to this eye opening, reality check, 24 minute Audio Interview Testimonial, below Elizabeth’s picture, where I ask one of my most Prized Students (Elizabeth Lisk, from Lake Forest, Illinois) what it really takes to go from having no experience to closing 3 deals in one month, and netting approximately $70 grand!
If you think you are FINALLY ready to pull the trigger and try something that works no matter where you live and what your budget is then the FIRST thing you need to do is go to www.FreeMakeMoneyGift.com and pay shipping and handling to get “The Most Incredible Free Real Estate Money Making Gift on the Planet, Guaranteed” ($1,620.94 Value which I will deliver to you like delivering a pizza to your doorstep).
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Just Days Away Until The Most Incredible… (See Video From Brian)
Today’s Real Estate Investor Coach Insider Video is called, “Just Days Away Until The Most Incredible Free Real Estate Money Making Gift on the Planet, Guaranteed ($1,620.94 Value)… NO Strings Attached.
I can’t divulge all the secrets just yet, but if you sign in below today you’ll get a sneak peak at what this INCREDIBLE FREE GIFT is all about, that is coming to you on OCTOBER 1, 2009! Trust Me!…Brian Evans
Be sure to take 30 quick seconds after the video and tell me what you think by posting your comments below. THANKS!
To your Real Estate Investing Success,
Brian Evans
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