“Baby Steps to Success,”
by Tony Pearl
In this article, we’re going to address something that holds a LOT of people back from having the success they desire & deserve. I’ll tell you what that is in a moment, but first, let me ask you a question…
Have you ever been on a date? I’m sure you have.
Now let me ask you this: Did you or your date propose on any first date you ever went on? I’m sure you haven’t done that or know anyone who has (except in very rare instances).
No, chances are that you first got to know the other person, felt them out a bit, let them get to know you, and then determined the correct course of action to take. I’ll let your imagination wander just a little bit on that one.
In other words, you probably took it a little bit at a time (unless you were at a bar). Guess what? Business works the exact same way! Doing a real estate deal works the same way!
Here’s the problem: A lot of the students I’ve coached come to me with some crazy beliefs, like ‘the only way they can do a deal with a seller is if the seller says “Yes” to one of the major questions on their Property Information Sheets.’ Or the new investor believes that the seller’s asking price is their final price. Or that it’s not even worth it to talk to the seller because ‘they probably wouldn’t want to sell with terms.’
These new investor students must have magic psychic abilities, because they seem to be able to tell all these things about a seller – get this – without ever even personally talking with them! Isn’t that amazing?! You can only guess what happens as a result of forming such an opinion: Nothing. No phone call. No offer made. No deal done. No money made. It’s sad.
On the rare occasions that the calls are made, the effort is so weak because the belief has already been declared in their own mind, so the results are typically consistent with their pre-determined beliefs. And they get shot down.
Now, I’m not saying that every seller you talk to is going to want to sell you their house on terms or sell at a big discount. They might actually have a legitimate need to get their cash out right away. They might not be a good fit for whatever reason. On the other hand, maybe they ARE a good fit for what we can do for them! But the only way we’re really going to discover that is to actually have a proper conversation together. To present them with some proper facts & options. To engage them at the right level so that they’re aware of what else is possible… rather than assume that there are no deals out there or that no one would want to sell their house or do business this way.
Another way of putting it: You’ve got to take Baby Steps to Have Success!
The fact is that MOST sellers you talk to believe there’s only 2 ways of selling their house: Through the services of a real estate agent, or on their own (FSBO). In addition to that, most sellers believe that they have to get paid off all at once, either with all cash or by the buyer going to the bank to get a loan.
Most buyers you talk to believe that the only way to buy a house is to go to the bank & get a loan, and they believe they probably won’t qualify anyway.
Most private lenders probably believe that the only way to invest their money is in a typical investment like stocks, bonds, CDs, mutual funds, precious metals, etc.
So when we come to these people and let them know that there are other ways of selling, buying, or investing, their pre-programmed brains go into ‘confusion mode.’ And we all know that a confused mind says “No!” So the way to keep things moving forward with most of these people is in small increments… One baby step at a time.
The same thing that can be said for dealing with sellers or buyers can also be said for private lenders or most “professionals” we deal with in this, or any other business, for that matter.
The “Secret Sauce” to Mastering Better Results
So, what’s the ‘Secret Sauce’ to break through most people’s limiting beliefs when it comes to doing business together? How do we help them to understand that there is, essentially, more than “one way to skin a cat,” as the old expression goes. (who came up with that, anyway? PETA wants to have it removed from our language lol)
I believe that it all comes down to: Asking them the right QUESTIONS! Doesn’t that make sense? Give a little information, then ask a confirming question to gauge comprehension and/or interest. For example, if we ask a potential tenant buyer a question like, “What if there was a way that a portion of the amount you spend every month on your rent went towards the purchase of your house. Would that be of interest to you?”
Can you see how that works? You’re not TELLING them something, because telling is pushing. And, in psychological parlance, when you PUSH, you’re potentially challenging someone else’s beliefs, and you may get resistance. But when you ASK QUESTIONS, you’re PULLING, so you’re inviting that person to engage with you. You’re asking them to think and reply. Therefore, you’ll get a much better result. Don’t believe me? Why not try it out for yourself and see?
Finally, A Better Way…
Listen, I know firsthand that picking up the phone and cold-calling someone you don’t know can be intimidating & scary. We’re all afraid of rejection, possibly embarrassing ourselves, or looking bad. Many of my students have been there. I’ve been there. It’s only natural to feel this way.
But everything we want out of life is on the other side of our comfort zone. Yes, I said that in a previous article, and stand by what I said. We know that these calls need to be made. We know we’ve got to talk to strangers to get things done.
So what if there was a better way? What if it was easier? What if you didn’t see the act of talking to a stranger as risking rejection, getting yelled at, or looking stupid or something? What if you saw the act of picking up the phone or shaking someone’s hand as a way of possibly making a new friend? What if you suddenly realized that all you needed to do is ask that other person a few questions to see if you’re a good fit for each other? What if you knew that this was all it took to add value to your life and the lives of all those around you? What if THIS was the magic belief & skill you needed to master so that you could get out of debt, quit your job, and provide true financial freedom for yourself & your family?
What would you do then? Would you act on it? Or just continue to do what you’ve been doing…and how is that working out for you?
To Wrap This Up: The thing that holds a lot of people back from the success they desire & deserve is: You don’t have to know everything before you begin. You don’t have to accomplish everything in one step. You don’t have to have all the lights on the road be green before you begin your trip.
I believe the great Chinese philosopher Lao Tzu said it In other words…
“The Journey of a Thousand Miles Begins With a Single Step”
When you were a baby, you took your first step. Then another, and another. You fell down a few times along the way, shed a few tears, then got back up and started walking again. But make no mistake: Those first little Baby Steps eventually led you to where you are now: Walking all over the place!
What’s the first baby step YOU need to take to get you where you want to be?
And when would NOW be a good time to start?
Until Next Time,
Copyright 2017 Tony Pearl | All Rights Reserved
This is the BEST script for opening a prospect I’ve ever written & used. Well, it’s really not a script, per-se. It’s more like a scripted guideline for the beginning of a powerful business interaction.
What makes this so perfect? It’s because it FRAMES the conversation you’re about to have, states WHAT you want to do and WHY you’re doing it the way you are. You’re not hiding anything. You state your intentions clearly up-front, in a way that sets you apart from anyone else (in a good way).
It’s designed to establish YOU as a credible professional who is also sincerely interested in getting the right information from them in order to determine if it’s possible to work together or not…and how you’re totally fine if it’s not.
By showing them that you’re emotionally detached from the outcome, the prospect will feel comfortable answering your questions & continuing with you, because they’re not feeling any pressure from you sucking up to them to try and ‘sell’ them anything. They’ll also be curious!
Tired of annoying objections that you have to awkwardly overcome, like “why do you need to know my mortgage balance?” Use this script, and you’ll dramatically reduce the number of people who ask you that, because you will have framed the conversation properly.
Another great feature of this script is that it’s perfect for ‘selling’ anything! Any product or service. All that needs to be done is a little tiny bit of tweaking to match what you’re doing. This is done in the opening sentences, when you state your intentions and reason for the conversation you’re having. For example, if you’re selling cars, you’d just say that you’re talking to them because you have several cars in your inventory and you’d like to just ask them a few questions to see which ones would serve their needs and desires the best. If you’re selling houses, just replace the word cars in the sentence above with the word houses, and BAM! It fits!
I’m sure you’re intelligent enough to figure out how to modify this for any purpose needed, but I’ll show you how to use it to buy houses in the example below.
Please Note-This is the First Of The 3 Steps in Our Sales Process:
1. State your Goals & Agenda (THIS SCRIPT)
2. Qualify the Prospect (This script is the perfect transition to this next step)
3. Close (or “Fire” Them)/Set Up the Next Steps/Get Commitments
Ready? Great! Without any further delay, here’s your simple intro script…
(This example: For a cold outbound call for Buying Houses)
“Hi! I’m calling about the house for sale at ADDRESS. Is it still available?” (Yes)
“Great! My name is YOUR NAME. And yours|What’s your name?” (They reply)
“Sounds like I caught you in the middle of something. Is it not a good time?” (reply)
“PROSPECT’S NAME, The reason I’m calling is because I’m actually interested in buying a house like yours in that area as an investment to add to my/our portfolio…
FRAMING THE CONVERSATION–(Continue this part without hesitating):
“Would you mind if I ask you just a few questions to see if this would be a good fit for the both of us and if we can possibly do business today?” (They reply YES)
“Thank you – I appreciate that! And listen, if it looks like there’s a possibility that we CAN do something, we’ll just set up the next step at the end of the call and go from there…but if not, can you please do me a favor? If you don’t like whatever solution or offer I propose, can you please just let me know up front that it won’t work for you so that we can help save each other’s time, and we’ll still part as friends… Fair enough?|Is that ok?|Sound good?” (They reply YES)
…And that’s IT! (You’ll simply transition to qualifying them next)
Do you see how simple, yet direct and to the point that is? Can you recognize the refreshing beauty of this? Believe me, your prospects will really appreciate this unique approach to the conversation. They’ll be so off-balance by your candor, they won’t even think of questioning you (assuming you use this properly with the right confidence, posture & tonality)!
IF you use the Lead Submission Form I provide for you (or your staff) to submit leads, you’ll notice that the beginning of the script/form on that page incorporates this script. However, I thought that it would be extremely beneficial to expand on it so that you can have the full context of why this works so well.
—>NOTE: Everything above can be modified to suit whatever purposes you need, whether it’s outbound or inbound, buyers or sellers, even private lenders. Whatever. It’s just an intro that gets you introduced, gets them to want to talk to you/clearing time, and starts the conversation. Everything BELOW is where the REAL magic happens. This is what will frame the conversation properly, as you’ll see. We continue…
And Now, a Very Important Word About POSTURE:
While the script itself is powerful, the REAL power MUST come from YOU.
YOU need to have confidence in yourself AND in the power of these words. You’ve got to come across as:
1. Sharp as a TACK;
2. An AUTHORITY at what you do; and
3. A FORCE to be reckoned with. Your VOICE and VOCAL TONALITY MUST reflect this posture.
If you come across as weak, begging, not confident, or unsure, even the best scripts (like this one) won’t work for you. Nothing will. You’ll get blown out of the water. You will have lost before you even start to play the game.
HOW TO HAVE UNSHAKABLE CONFIDENCE:
Many people advocate that you ‘Fake it ‘till you make it,’ and sometimes, that’s just what you’ve got to do. But it’s really, vitally important that you get yourself in PEAK STATE before you make those calls and talk to people. Here’s what I do & what’s worked for many people I’ve coached and mentored:
SO, what you SHOULD do is ask stop asking yourself WHY-type questions and INSTEAD, ask yourself HOW-type questions! For example, “How can I get better at ____?” or “How can I be the best I can be at talking to people?”
When you ask yourself that type of question, your subconscious brain will work FOR you instead of AGAINST you. That makes sense, right? Right!
So there you have the Perfect Opening Script guideline for starting a conversation with anyone, whether you’re buying or selling a product or a service. This works exceptionally well for real estate. Just go put it to work right away, and watch the magic happen!
Practice & USE this incredible Opening Script on every call you make or receive!
Oh, and Have FUN!
Part 2 of 2, by Tony Pearl
In Part One of this article, we discussed YOU and why you do the things you do. Specifically, we talked about WHY people do or don’t do things for two primary reasons: To gain pleasure or to avoid pain. This is also known as the Carrot or the Stick – the carrot is something good that we want, while the stick represents the pain we don’t want.
We also mentioned a few common things that most people in this world want/desire, like love, money, and good health as well as a few things that most people don’t want/are afraid of, like fear of missing out, getting hurt, rejection, or clowns. 😉
Finally, we talked about some stuff that you might not like – why you may not be as successful as you’d like to be, or why you don’t always do some of the things you know you should be doing.
In other words, we started with YOU. Still stuck on that? Ok, go back and read the article again. But if you’re ready to move on, let’s go…
It all comes down to TWO things: The Carrot and the Stick.
The CARROT represents something GOOD that we WANT, while the STICK represents something BAD that we DON’T want.
In THIS article, we’re going to talk about how to get what you want from others by understanding their key motivations, and how to best position yourself so that you have an incredibly powerful advantage over others. Maybe that might help you? 🙂
It goes without saying that once you truly know yourself, you can begin to understand everyone around you. Now that you’re armed with those convenient lists above, let’s see how we can help (or help influence) those sellers to sell their houses to US for OUR Terms, shall we?
Ok, Let’s Break This Down & Figure This Out, Carrot & Stick style!
First, the CARROT: What do most sellers want? To sell their house, duh! But HOW? What’s important to them? What do they truly WANT, and what do they want to AVOID? Even though this is a case-by-case basis, I think we’d agree that most sellers have several things in common. They desire to have a fair, easy sale of their house so that they can accomplish their goals and move on with their lives. They want to feel like they sold their house for a fair price and that they are getting some VALUE for selling.
Now for the STICK: What they don’t want is to have their time wasted, deal with someone they don’t like, know, or trust, and I think it’s safe to say that they don’t want to feel like you’re taking advantage of them. Agreed?
So now that you know all that, HOW will you treat them? WHAT will you say, and how will you say it? Be sure to refer to my earlier articles about these topics.
Something else that’s important to consider: Your MARKET. Is it hot? Are there a lot of buyers? Are people offering full price, all cash? If that’s the case, the only way you’re going to have a snowball’s chance in hell with informed sellers in these markets is to develop an emotional bond with them & offer them something no one else can.
Maybe they really want to make more money from selling their house, so you can demonstrate how selling to you with owner financing can do that. Show them how much it truly costs to sell their house the traditional way (average 10% cost of sale), and how you can save them that money instead. Or maybe they really want a fast solution that makes sense because they have some sort of immediate need. So frame your offer around that.
A good stick to use for many sellers is the time-sensitive offer. As we’ve already agreed, most humans have a FEAR of MISSING OUT. So even though it may seem counter-intuitive, I highly suggest you put a DEADLINE on the offers you make, such as “This offer expires Friday at 6 p.m.” Something like that works quite nicely.
Naturally, some sellers will call you back after that deadline, and while you might still want to do business, at least you’ll have a reason to re-negotiate a deal.
The final (and most powerful) figurative stick you can use with sellers is the one that few investors truly grasp, despite the fact that it’s the most obvious one at your disposal: The Seller’s own self-stated reason for selling. Why are they selling their house? Specifically – what is the potential painful outcome that may happen if they DON’T sell their house?
Now, if the seller with whom you’re talking doesn’t seem to have any real need, then you may not be dealing with the right type of seller. For example, if they say the reason they’re selling is to ‘test out the market,’ or ‘because it just seems like the right time,’ and you can’t get anything else out of them, you’re probably going to be wasting your time by continuing to attempt to negotiate a deal. They don’t have much motivation and you can’t provide much value in this transaction. These are suspects, not prospects.
But if they say that they have a job transfer that’s taking them clear across the country, they have to be out in 3 weeks, and they don’t have any offers on their beautiful house, now you’re in the game!
In this example, you’d want to agitate their pain. Give them a taste of what the stick might feel like if they don’t sell their house. In this case, you could ask them something like, “What would you do if you’re not able to sell your house? Would you probably just rent it out? Gosh, have you ever been a landlord? Have you ever dealt with tenants? Can you imagine what that would be like if you’re 2,000 miles away??”
Can you see the magic here? By giving them an idea of what the negative outcome might be if they’re not able to reach their goal, they’re now emotionally open to the possibility of YOUR alternative solution that would make sure that doesn’t happen!
Oh, by the way, this also works in just about any sales, social, parenting, or business situation. Use these tactics wisely, grasshopper.
Congratulations! You now know more secret psychological strategies that can help get you more business, close more deals, and get what you want out of life whenever you’re dealing with other people. Combined with the self-mastery we discussed in part one of this article, and you’re well on your way to being as rich and successful as you want to be.
The only thing left to do is set yourself up to succeed. How? Ha, you should know by now: Give yourself an incentive to do well (work for a carrot), while at the same time have personal consequences for not taking the appropriate actions (the stick). Don’t punish yourself for failure, because we don’t always have control over the outcome. We can only control our ACTIONS, attitudes, and beliefs.
For example, if you make a simple goal of calling 10 sellers today, and you accomplish that goal, you’ll reward yourself by eating…something special (almost had you there!). That’s your ‘carrot.’ But if you DON’T do what you set out to do, you don’t get that reward – and/or you have to do something embarrassing. In front of people. That’s your ‘stick.’
I think you get the idea. What you do with it now is up to you. And I think I’ll close this up like I did the last article by saying, “Now go grab a carrot!”
Until Next Time,
Copyright 2017 Tony Pearl | All Rights Reserved
Part 1 of 2, by Tony Pearl
In this article, we’re going to discuss something vitally important that may very well help you understand a LOT about yourself and everyone around you on this planet. Yes, that includes dealing with sellers, buyers, private lenders, and even those alien creatures we love to call tenants. Also-your mother, brother, father, sister, sons and daughters, uncles, best friends and distant relatives.
So You might NOT want to read this article… Unless you want to discover the secrets behind the reasons WHY people DO or DON’T Do the things they do…or don’t do.
It all comes down to TWO things. The Carrot and the Stick.
The CARROT represents something GOOD that we WANT, while the STICK represents something BAD that we DON’T want.
It’s taken from the example of getting a donkey to pull a cart. You dangle the carrot in front of him, while having the stick ready to give further “motivation” if needed.
There are many ways that this same sentiment can be expressed, such as:
Moving towards something vs. moving away from something (thank you, Tony Robbins).
Love vs. Fear; Pleasure or Pain; Good vs. Bad; Good vs. Evil; Desire to Gain Pleasure vs. Desire to Avoid Pain (thank you, Napoleon Hill); or Incentives vs. Consequences.
All of those expressions basically represent the same thing. And while many of us are at least somewhat familiar with the idea, have you ever really stopped to consider what truly motivates YOU? What kind of person ARE you? Are you the type of person who typically seeks to get what you want, or do you just try to avoid pain?
And don’t just casually blow this off because you think you know. Honestly ask yourself this question. It’s vitally important. Start with yourself, because it’s all about you. And once you truly understand yourself, you’ll be in a much better position to understand and properly, positively influence others around you – both personally and professionally. Still not sure? Ok, keep reading…
Things That People Are Typically Afraid Of:
Fear of missing out; Fear of getting hurt – or of hurting someone. Fear of regret. Fear of FAILURE (that’s a big one). Fear of SUCCESS (crazy, right?). Fear of the Unknown. Fear of abandonment or of being alone. Fear of the dark. And everyone’s favorite: Fear of clowns (watch the movie “IT”).
Things Most People Desire:
Love, money, sexual gratification, good health, a sound mind, a clean conscience, desire to express yourself, desire to give back or help out our fellow man, better relationships, to laugh more, to do more of the things we enjoy doing, peace of mind, simplicity, good food, drink, and music, desire to improve ourselves, desire to show that we matter and that people care about us. Peace.
So now that you know of some of these common fears and desires, I’m sure you’ll recognize some familiar things from those lists. And while we all seem to want the same things from the ‘good’ list and not want the things from the ‘bad’ list, one is always going to be stronger than the other. I didn’t make this up. It’s just human nature.
Did you know that most people are ‘moving away from’ type of people? They do the things they do because they’re AFRAID of something. This is why scarcity is so effective in sales – because people are afraid of missing out! It also explains why some people remain in a toxic relationship instead of getting out – because they’re afraid of being alone or they’re afraid of the unknown. As they say, “The devil you know is better than the one you don’t!”
If you’re not as successful as you’d like to be, chances are it’s because you’re afraid of something. You might be afraid of what you’d have to give up in order to be successful, so you keep hanging out with your stupid friends that are bringing you down. You might be afraid of getting rejected or looking stupid, so you don’t pick up the phone and make the calls you know you need to make. Sound familiar?
I could go on and on about this, but space is limited here. So we’ll have to get to the next juicy part: Secrets to understand & influencing others in next month’s article!
So be sure to check this space here one month from now, when we’ll finish up our discussion.
In the meantime, go grab a carrot!
Until Next Time,
Copyright 2017 Tony Pearl | All Rights Reserved
I have a VERY special surprise for you today!
What you’re about to receive here will give you an extremely powerful negotiating tool you’ll want to add to your arsenal. Immediately.
Keep reading to see WHY and HOW to use this tool properly…
Let me ask you a question: Have you ever talked to a seller who’s asking TOO MUCH for their property?
(Gee, that never happens, right?)
Or have you talked with a seller who OWES (for example) $200,000 on their underlying loan, and the property is worth (for example) $250,000, so they THINK that they have $50,000 in equity, so that’s what they think they’re going to get at the closing table? (NOT!)
HOW do we deal with these people? How do we ‘educate’ them to the reality of a realistic real estate transaction.
First, the WRONG way to deal with them is to take an antagonistic approach and just directly tell them something like “No! You’re wrong! Your property isn’t worth that much!” or “Haha! You think you’re going to get that much at closing? Are you really that stupid??”
While it may be ok to THINK those thoughts in your head, you definitely don’t want to say that stuff out loud, or I can practically guarantee you’ll get shown to the door before you can blink.
So what IS the RIGHT way to handle this situation, without
pissing them off? making them angry?
How can we show them the truth about what they’ll realistically walk away from the closing table?
Well, I’ve got you covered! Introducing…
The ‘Cost To Sell’ Worksheet!
WHAT IT IS: This is a TOOL that you’ll use to help a seller recognize – with his/her own eyes – the real numbers that factor into a typical real estate transaction. Used properly, this will help you help the seller come to the shocking reality of how much they can expect to walk away from at closing, AFTER all the typical fees, costs, etc. are factored into the equation.
HOW TO USE: It’s quite simple. The first thing you’ll want to do is download the files I’m providing for you below.
I’ve taken great pain to make them both visually appealing AND highly functional for you. I’ve also included several versions of this form, which are explained below.
Next, you’ll want to open each one up & examine them so that you can get a feel for how they should be used properly.
After that, you’ll want to edit the forms to match YOUR identity – your name, company name, website, and phone number, then save the document or spreadsheet.
Then you’ll print out a few of these and put them in to your ‘Buying’ packs. These are the packs that you should always have available to take with you when you go on an appointment to meet with a seller. The other docs you should have in there are: 2 copies of each of the following: 1. Purchase & Sales Agreement; 2. Lease Purchase Agreement (the one WITHOUT the Table Of Contents); 3. Authorization to Release Information.
When you’re in front of a seller, and the opportunity presents itself, you’ll whip out your handy Cost to Sell Worksheet, and hand it to the seller, saying something like “Mr. Seller, can you help me out with something? Have you ever sold a house before? So I’m sure you’re aware of several factors that influence how much you’ll actually walk away from at closing when you sell a house. Can you help me go through these, so that you can know what to expect from your house at the closing table? Great, thank you…”
“So, as you’ll see here, this is a simple Cost To Sell Worksheet, which will help us figure out what the costs are for a typical, traditional sale of a house. So the first thing we need to start out with is what your asking price for the house is. How much do you think this house is worth again? Ok… Could you please write that down in the right blank at the top of the page there? Thank you….”
“Next, do you remember when you bought this house? Did you just automatically offer the full asking price? Probably not, right? Like most people, you probably asked for a discount, didn’t you? So do you think it’s reasonable that any potential buyer would ask you for a discount, too? We have a national average of about 3%. Do you think that’s a fair number to use? Ok, please write that down there. Do you need a calculator to figure that amount?”
…and keep working through the sheet, all the way down. The KEY here is to get the seller to write down the numbers himself.
The last significant number here is going to be the loan payoff amount.
So have them figure out all the numbers, then subtract the amount that is owed on the house, and BAM!!
That bottom line number will be a slap across the face on a cold day!
Sometimes, the number that is figured is a NEGATIVE number! This means that the seller would have to come out of pocket and PAY in order to sell his house! This is when it gets fun, because you can occasionally get the SELLER to pay YOU to buy his house from him! Think I’m kidding? I’m not. How do I know? Because I’ve personally done this at least 5 times! Would you like the magic words to get this result? Ok, I’ll give them to you. Just show them the shocking negative number and ask them, “So how much would you be willing to pay me to take this property off your hands?”
And then shut up! Let them talk.
Good stuff, right?
Wouldn’t it be awesome if there was an easier, alternative way of doing this? What if you could use an electronic version of this form… maybe even one that would automatically fill in the appropriate values, calculate percentages, and figure out the numbers as they’re typed in? All you would need to do is whip out your smartphone, tablet, or laptop computer, bring up the spreadsheet, and hand it to the seller for THEM to type in the values as YOU direct them. It doesn’t get any better than this!
But gosh, wouldn’t it be awesome if that was available? (shameless hook there, I know)
Well, you’re in luck, my friend. Because I’ve already created that FOR you!
Yes, it’s below. Go get it now (look for the last 2 docs that have ‘AUTO-COMPLETE Formula’ in the title)…
Download/Access Your ‘Cost to Sell’ Worksheet Below:
This will SHOW you an idea of what it should look like & how to run the numbers.
This is for YOUR learning use only.
Cost to Sell Worksheet, (WORD Version)
This is a simple version you can use. You’ll need to use some math here.
Cost to Sell Worksheet, (PDF Version)
In case you wanted to have this, here it is as a pdf.
You’ll need to alter this to match your information first, though.
This is a nice but simple Spreadsheet you can use.
Ok, I heard you! I know you wanted to have a simple, fillable excel spreadsheet that you can use to automatically calculate the amounts FOR you!
That’s what you’ll use THIS one for. Enjoy. And put it to good use.
By now, you should know how much I love using Google Drive. This is a very convenient Google Sheet I’ve set up for your use. It’s the same as the above Excel version.
WHAT TO DO: Be sure you’re logged into your Google (Gmail) account. Click on the link above. When you get to the next page, click on ‘File–>Make a Copy‘ then save it to your Google Drive. YOU WILL NOT BE ABLE TO EDIT THE SPREADSHEET UNLESS YOU FOLLOW THOSE INSTRUCTIONS! But if you make a copy, you’ll be fine. If you even think of ‘requesting access’ to my spreadsheet via Google Drive, I’ll know that you haven’t read these instructions, and I’ll have to pull your card. 🙂
If you want to get fancy or convenient, you can even put this in front of your prospect when you’re at the house – either on your phone, laptop, or tablet.
So there you have it! I hope you have much success using these forms and sheets in your investing business.
***Do not underestimate the POWER of this tool. I’ve used it many times to validate and justify MASSIVE discounts on equity spreads in deals. I highly recommend that you practice using this a few times before you go out and put it in front of a seller’s face. Plain and simple: This spreadsheet will make you more money with less hassle.
You’re welcome. 🙂
Now go out there and MAKE SOME OFFERS!
In this article, we’re going to be discussing one of the essential skills you must possess if you’re going to be successful in this real estate (or any other) business. When you master this skill, you’ll be MUCH more efficient with your time, reduce frustration & anxiety, and keep your self-respect and motivation. Sound good?
Of Course, I’m Talking About How To Properly Pre-screen People.
We all know that the first thing we need in any business is LEADS - People who have raised their hands to signal that they’re interested in either our product or service...or are at least interested in getting more information about it. In real estate, this could simply be a list of people who either want to sell their house or buy a house.
There are many sources for these leads - you can either find, buy, or create them...but that’s a topic for another article. For now, we’ll just assume that you already have several leads, and you just need to find out if you can do business together.
And this is where a LOT of people have challenges. The problem is that most people mistakenly believe that they have to convince people to do business with them! However, nothing could be further from the truth. I’ll let you in on a little secret...
The truth of the matter is that we’re not going to convince anyone of anything. Instead, it’s our job to sift and sort everyone we talk to so that we correctly identify only those people who are flexible and motivated enough to consider other ways of getting things done...And whack the rest at lightning speed! But in order to do that, we need to know:
Did you know that there are only three types of people? Well, of course there are many more than that, but for our intents & purposes, we need to only concern ourselves with these three:
You know the type. These are the sellers who ONLY want full price, all cash, and don’t even want to think about anything else. These people will waste your time, suck all the life & motivation out of you, and almost make you want to quit. Unfortunately, these are going to be the majority of people you talk to.
Someone in this category would say something like “Oh, we wouldn’t do anything like that,” “We don’t need to sell,” or “Yeah, we’re just testing the market to see what people are willing to pay.
How To Deal With Them: Identify early & get out fast. Follow up later if you like.
2. The Fully-Motivated, Qualified, and Interested PROSPECT:
These are God’s gift! This person is a total lay-down, ready for your solution...and desperate for what you can do to help them. Just treat them right and move fast.
You’ll know them when they say things like “We’ve got to sell, like, yesterday,” “I don’t know what else to do,” and “Please just make me an offer!”
How To Deal With Them: Recognize WHAT they need and HOW to give it to them. Go out to see them as quickly as possible - with a contract in hand, ready to go, because the first one there with a workable solution gets the deal!
3. The Somewhat-Motivated & Qualified, But Not-Quite-Ready PROJECT:
These people need your help...they just may not know it yet. In order to best serve them, you’ll need to have your skills sharpened and ready, because they’ll test you.Think about them as being PROSPECTS that just need a little more work & skill to be able to turn them into deals, ok?
These people say things like, “I don’t know what to do,” “How does that work?” and “How can you help me?”
How To Deal With Them: Use the right psychology & sales tactics to help them understand that they need your solutions. You’ll probably need to follow up. Get them to make you the offer.
Why Is It Important To Know The Difference Between These Three?
Because the SUSPECT will make you BROKE.
The PROSPECT will make you MONEY.
But the PROJECT? They can make you RICH!
If all you ever talk to and deal with are suspects, you’re going to get frustrated, start to think that this business doesn’t work, and want to punch someone. True prospects are great, but like a needle in a haystack, they’re usually a lot harder to find. Projects are the ones who will truly make you rich, because you’re not only able to add value to these people’s lives, you’ll do more deals, as the competition is not skilled enough to handle them. These people will truly justify the investment in your education, many times over.
It’s actually very simple to effectively prescreen the leads you talk to. The method is so simple, you’ll be tempted to just blow it off or take it for granted, but that would be a mistake, believe me. Here it is: The best way to prescreen people is to ask them the right questions. Obviously, you need to get the right information about their house & their situation, determine what their needs and greeds are, and to gauge their levels of flexibility and motivation.
But like anything else, there’s a right way and a wrong way to do it. The wrong way would be to interrogate them like a handcuffed suspect accused of committing a crime. You don’t just go from question to question, forcefully extracting information from them, because it won’t be long before they resent and resist you.
The right way means that you should first frame the conversation properly so that they understand the context of your questions. You should also skillfully and respectfully converse with them to find out what you need in order to determine which of the 3 categories they belong. The right way also means that you’re open, honest, and confident about what you’re able to do for them.
The Bottom Line is This: ONLY after you’ve gotten the right information you need to know do you present a possible solution to their situation. Stop wasting your time trying to convince people about how smart you are or all the creative real estate techniques you just learned this week. Nobody cares. All they truly care about is what you can DO for them. We’ll talk about how to best present your solutions in another article.
So there you have it! You now know the importance of the art of prescreening people, what the 3 categories are, and how to determine who belongs where, and why. Armed with this information, you’ll save yourself a TON of time and frustration, because you’ll only be dealing with qualified people who want to do business with you, while the rest will most likely drive your competition crazy when they talk to them.
Until Next Time,
Copyright 2017 Tony Pearl | All Rights Reserved
BIO: Tony Pearl is a writer, speaker, copywriter, mentor, marketer, coach, musician, poet, ballroom dance instructor, world traveler, father, fiance, internet marketer, voiceover artist, and real estate investor. He’s also a Politically-Incorrect Insomniac with ADHD who specializes in adding massive value to people’s lives by helping them overcome limiting beliefs, have more fun, and make more money while improving lifestyles through investing in real estate!
Land Trusts are one of the most confusing and often misunderstood aspects of real estate investing.
I'm often asked about these wonderful 'things' called Land Trusts, and the techniques & benefits that are associated with them. As a land trust expert, it's an AMAZING feeling to have the knowledge & confidence to be able to use them correctly.
Listen to this Powerful Audio where Ron LeGrand interviews Lou Brown about Land Trusts:
This enlightening audio will teach you a LOT about the basics & benefits of land trusts and how they work. These are two of the most knowledgeable & experienced real estate investing teachers on the planet. Enjoy!
Speaking of benefits, let's look at a few benefits associated with land trusts and WHY it's vitally important for you to be familiar with them, shall we?
Some Benefits of Owning Property in a Land Trust:
When To Use a Land Trust:
Whenever you buy a house - whether it's for an investment or to live in, you'll want to buy it in a LAND TRUST. Why? Because of all the benefits listed above & what you'll hear in the audio!
Honestly, there's not a single reason I can think of on why you wouldn't want to buy in a trust. Well, actually, there is - when you're getting an institutional loan (from a bank) to buy a property, they'll want you to close on it in your own name, because you have to personally sign for the note, and that's one of the big ways they 'get' you.
But since you're not going to be going to the bank to get a loan, you don't have to worry about that, right?
Remember, the main parties/entities you'll need in order to form a trust include:
1. The Grantor: The person/entity putting the property in trust (Usually the seller)
2. The Grantee: The person/entity receiving the custody of the trust (Usually the Trustee)
3. The Beneficiary: The person/entity who will have the BENEFIT of owning the Trust (Usually this is YOU or one of your entities)
You'll also need to pick a NAME for your Trust. This could be anything you want it to be. One popular naming strategy is to name the trust after the address of the property, and that's fine. What you DON'T want to do is name it anything with your name in it, because one of your goals of owning a property in trust is anonymity!
The Trustee and the Beneficiary CANNOT be the same entity, or the trust is invalid.
The 3 Documents You Need to Form a Trust:
In Order To Create a Trust, You'll Need:
1. A DEED. This could either be a Warranty Deed to Trustee or a regular Deed (Warranty, General, or Special), just as long as that Deed names the TRUST, the TRUSTEE, and the date the trust was formed. Of course, the Legal Description needs to be a part of it.
2. A Trust Declaration. This is the document that sets the framework and names the parties, conditions, and powers of the various people/entities of the trust. Think of it as a set of instructions. It also stipulates who the beneficiary/ies is/are, what percentage of ownership he/she/they has/have, what the powers of the Trustee are, etc.
NOTE: This is a PRIVATE Document that is NOT recorded!
3. An Affidavit of Trust. This is a powerful piece of work, because it lets you show people that a trust exists, what the Trustee's powers are, and the basic/main information that the outside world needs to know - WITHOUT revealing any of the 'juicy details' of WHO owns the trust, etc!! I like to think of this like a receipt for something.
Did You Know...?
Putting real estate into a trust converts it to Personal Property? Therefore, if you want to SELL (or Assign) your beneficial rights in a trust, you can do so without anyone in the outside world knowing about it?! All you'd need to do is create and sign a simple 'Assignment of Beneficial Interest' form! Let that sink in.
Naturally, there's a bit more to it than that. And there's still a lot to learn about all the wonderful details of how to properly form and use a land trust in your real estate investing business.
We've only scratched the surface here, so I encourage you to learn all you can about Land Trusts and how to leverage them for your maximum benefit.
I hope you've found this report/article to be informative.
Thanks for reading!
Until Next Time,
Have you ever talked to a seller and heard them say something like this...
"I might be interested in that, but I need to see some more information before I do anything."
"How does that work? I don't understand. Can you send me something to look at or read?"
"Can you just send me some information?"
If you've ever heard a seller tell you something like that, you're not alone. Many homeowners will say something similar to this when they don't understand your creative real estate buying proposal.
Why? Because it's something new. Something different. A departure from the "Normal" way of buying/selling a house.
As I'm sure you already know by now, the real estate industry, led by agents, mortgage brokers, appraisers, etc. has most folks brainwashed to believe that the only way to sell a house is for the buyer to either pay all cash or get a loan.
They've been conditioned to believe that selling your house with owner financing or a lease purchase (aka 'rent to own') are 'bad,' 'risky,' 'confusing,' 'not for me,' etc.
And that's for people who have at least heard of these concepts. Believe it or not, most people haven't. They need to be a little 'educated' about these strategies first.
So... what to do?
Well, you have a few options. You could:
This is RON's Script When They Want More Info...
Seller – "Can you send me something in writing?"
You – "There’s nothing I can put into writing until we have an agreement and we can’t agree until I see the house and we come to terms. When I visit the house I’ll bring an agreement and answer your questions and then if it’s a go I’ll know what to put in the paperwork. All I need to know now to set an appointment is your confirmation you will consider……. (a lease purchase) – (taking payments for your equity).
Should I come look?"
BUT... Before we go any further, I MUST say this:
If you're getting this type of reaction from a seller, it probably means that they're just not motivated enough to entertain a solution like what you're proposing OR you just really haven't done a good job presenting your solution.
Sorry. Just being real.
But it doesn't mean that they wouldn't be open to selling their house with a creative solution. It just means that you're going to need to work a bit harder through your follow up methods.
The NEXT thing I have to say is that the solution you're about to learn here is NOT for people who ARE motivated, flexible, and ready to do business. For those people, you should definitely get yourself out to meet them at the house and negotiate a deal!
...Unless that's just not possible because they're either out of town or you're working a market virtually.
Ok! Enough talk. Ready for the Solution??
For those times that a seller just tries to blow you off and 'request more information,' here's what you do IF YOU FEEL IT'S WORTH IT:
1. Send them a simple package.
2. Set an appointment to follow up with them on the phone.
3. Use the package you sent as a CONVERSATION STARTER!
What's In The Package?
Keep it simple. Don't stress yourself.
Just send a simple package that has:
1. A simple cover letter that thanks them for their time, acknowledges that you may have a solution/proposal that might seem a bit "different," but is quite real & legitimate.
2. 2-3 offer examples of how you can buy their house.
These offers, also called a "Letter of Intent with Multiple Offers" can include:
a. An all-cash offer (you don't have to put in a number, but you'd definitely want to say that it would have to be a low number because it's an investment)
b. An owner-financing offer.
c. A Lease Purchase offer.
Make sure you add the benefits for each offer type.
If you have any testimonials, you'll definitely want to add those.
Close your package by saying that these are some of the more typical offers you can make, but if they have any questions, thoughts, or suggestions, to give you a call or email you.
This entire package can either be emailed to the seller or mailed out to them. Be sure to get both their email and physical address.
The next KEY for success: FOLLOWING UP!
Remember: The Fortune is in the Follow-up!
So you'll want to set up an appointment to follow up on the package you send out. This could be in a day, a week, or a month. You'll need to gauge this from person to person.
Obviously, you'd want to set up an appointment for a time soon if there's some motivation & flexibility. If they're just trying to blow you off or are the typical "I'll just sell it when the perfect Jesus-like buyer comes along," then you could tell them that you'll just give them a call in a few weeks to see how things are going and answer any questions they might have about the information you're sending them.
So Here's the Deal:
I'll be super-nice & give you an example of what an initial 3-Option Letter of Intent looks like (below), but I'm NOT going to write this full package for you. Sorry. It's enough that I'm giving you this advice on what to do for this situation because it's beyond the scope of this mentoring program.
In fact, I don't think that Ron really wants you to do this.
So this advice is on me. These are my ideas & suggestions.
What does Ron want you to do?
Only deal with the low-hanging fruit. Only meet up with sellers who are ready to go and/or only send contracts that have been filled out to these sellers.
But finding those motivated sellers who are ready to go NOW (the low-hanging fruit) is getting harder and harder these days...and in this market. There seem to be more sellers who MIGHT want to do business with us, but just need a bit more info, time, and follow-up.
Sending them SOMETHING rather than nothing might just mean the difference between success and failure for a lot of investors.
Remember - most people will do business with you AFTER the 5th or 6th "touch."
Ok, so here's what to do next...
Like Ron, I don't want you to waste your time. I want you to create & develop a simple system that works for you to follow up with these people.
So for those times when you may get stuck, but think you'd like to keep things moving, I'm going to suggest that you create a simple package and make it your standard TEMPLATE to send out to these sellers.
You'll occasionally need to tweak a tiny bit, but I also suggest that you set it up so that it works for a wide variety of people.
However! Make absolutely SURE that you do ONE thing that's essential for every "Package" you send out:
Make sure that the each individual seller's name & property address appears on the cover page that you send out. That's a requirement.
Everything else after that can be pretty much standard.
So that's pretty much it!
I hope this helps you with your investing, makes you a TON of money, and gets you a LOT more deals!
It will - if you use this tactic.
So now you'll feel more confident when a seller tries to blow you off or request more information.
Oh - and one more thing... You get to say that you've made an offer in your Weekly Report for every package you send out! 🙂
Now Get to Work!
Here's an example of a decent Letter of Intent to Purchase real estate.
This can be sent to SUSPECTS/Sellers you're NOT going to meet soon.
Use this as A MODEL for crafting your own letter. You don't have to name a downpayment.
Keep this as simple as possible. Remember: This is a TOOL that is to be used to keep things going, educate the seller on other possibilities, and to START ANOTHER CONVERSATION with them later.
FOLLOW UP IS THE BIG KEY HERE!!!
Date: TODAY’S DATE
Name: <<SELLER’S NAME>>
Address: <<PROPERTY ADDRESS>>
<<CITY, STATE, ZIP>>
Thank you for the opportunity to review and consider your property. Based on the information that you shared with me and what I was able to gather on my own from the local market conditions, I am prepared to purchase your property in one of the following ways:
Purchase Price: $52,500.00, All Cash. Close within 30 days.
Purchase Price: $82,500.00
Down Payment: $2,475.00 (OPTIONAL! YOU COULD JUST LEAVE THIS PART BLANK)
Terms for Remaining Balance: Seller to carry back balance @ 3% APR.
Interest-Only monthly payments of $200 with full balance of $80,025.00 due in 10 years.
Purchase Price: $92,500.00
Down Payment: $ 4,625.00 (OPTIONAL! YOU COULD JUST LEAVE THIS PART BLANK)
Terms for Remaining Balance: 300 monthly payments of $ 292.92.
To close in 14 days or less, all we need to confirm is the current status of any encumbrances and repairs.
Please let me know which of the offers above looks best to you.
Seller(s) Acceptance: ___________________________________________________________
Seller(s) Acceptance: ___________________________________________________________
Upon acceptance, or if you have any questions, Call YOUR NAME (OR Your Company Name) at YOUR PHONE #
How to Get Help With the Contracts & Paperwork
Are you scared to death of filling out contracts?
Not sure what to put where?
Or maybe you just want to make sure you’re doing it correctly?
Hey, it’s ok… We’ve all been there!
And that’s why I’m here – to help you out and make sure you’re filling things out correctly.
Because if you don’t, you’ll go to jail, someone will come in the night & burn your house down, and the boogeyman will personally come get you! Just kidding! But seriously…
Here’s how to collaborate with me on your contracts:
Here’s What to do Now:
Hope that all makes sense.
Listen, I know that all of this might seem difficult (for some more than others), but this is the BEST way I’ve found to collaborate on contracts with my students. The old way: You download, print out, and write everything on the contract, then scan or take a picture & email to me. Who has time for all that?
Doing it this way is only hard to do it the first time… Like most things in business (or life).
Thanks for your cooperation. Let’s Make It Happen!!
Reminder: Under ‘People’, type in my email address: [email protected], then click ‘Done’
If you want to have success in this business of real estate investing, one of the most IMPORTANT things you absolutely MUST have is LEADS...LOTS of Leads.
And what better way to get them than FREE, right? Right!
That's what I have for you here today - how to get FREE Leads from Craigslist.
But I'll do you even better than that - I'm about to show you how to not only get FREE leads from Craigslist, but I'll also show you how to get them AUTOMATICALLY!
Sound great or sound great?
All Right! Let's Get Started!
Use the simple method I show you how to use in this video to get all the leads you want, sent directly to your email inbox every day.
Here are a few keywords and parameters for you to play with when you create your search criteria (use these to narrow or expand your search):
Here, I'll make it easy for you, you lazy bastard! 🙂 Just copy & paste this into Craigslist if you like.
Note: This list is usually associated with the "junkers/ugly house" side of the business. So you might want to create an automatic search JUST for this stuff & another one for the pretty houses. Yes, you can do that. Here's your list:
motivated seller, need to sell, must sell, need cash, cash only, probate, estate, estate sale, desperate, desperate seller, must sell fast, quick sale, needs repairs, handyman, fixer, rehab, investor special, priced to sell
REMEMBER to set up your Craigslist Account FIRST so that you can SAVE your search criteria and have it sent to your email address automatically.
Depending on your chosen market, you should start to receive regular emails quickly and consistently.
REMEMBER - This is only part one. Part two is for you or your VA to call/contact them to get the Property Information Sheet filled out, then test for motivation, flexibility, etc.
Now go put this powerful tool to good use... It should only take you 10-15 minutes!