Hello! Today’s “Ask Tony” segment comes from B.S. from IL (he requested to be anonymous).
And B.S. (his real initials) wants to know…
I hope all is well with your family.
My question is about an overview of the process after we get a contract signed. Is there something already in place that I’m not seeing, or just not able to put together myself?
The reason for my question is to be FULLY prepared to understand the step by step procedure.
I’m not looking for every little detail, but like I said “an overview of the process for buying. So, from the time I get the contract signed…..etc?
Now for the answer…
Hello & thank you for your question, B.!
I’m happy to give you the answer here, and I’m glad you asked, because I’m sure there are a lot of people who would like to know this as well.
As I referred to in my powerful training article, “The Five Steps of How We Buy Houses,” there are obviously 5 steps to doing what we do, whether it’s buying OR selling a house. They’re more than adequately covered in that article, so no need to cover them again here.
So today, I’m going to show you exactly what to do in this process in more detail. It goes a little something like this…
After you have a preliminary negotiation with the seller (usually done on the phone, before going out to see them at the house but there are exceptions), you’ll make an appointment to physically see the house and do your more aggressive negotiations in person.
If you’re not able to go out and actually meet with them at the house, you can tour the house virtually.
Reasons you might not be able to see the house or meet with the seller in person:
Before you go meet with them…
Here’s a little checklist to make sure you’re not going to waste your time:
Make SURE that when you go to the house, you bring the THREE ESSENTIAL Documents with you:
All of these are easily able to be found, along with full instructions on how to use them (and share with me for help) by going to this page:
Contracts For Buying Houses. (Opens in a new window)
When you go out to the house, you’ll want to dress sharp & be professional, yet still be easy to talk to and deal with.
Greet them by name & introduce yourself, then ask if you can come in. Take control of the situation!
Take a quick tour of the house. Don’t dwell on things. You should know very quickly whether you want to move forward or not.
After the tour, you’ll sit down and begin to negotiate. I’ll write more details about this soon.
Your goal is to first agree orally, then GET THE HOUSE UNDER CONTRACT!! Yes, in writing. This is what the contracts are used for.
Just like a master craftsman uses the appropriate tools, our tools are our contracts. We get them signed by using our skills: Negotiation, communication, sales, etc.
Wake Up & Pay Attention, Here’s Where I Deliver The Goods…
Now, after you get the house under contract, you’ll shake their hand and set the next steps with them, then get the heck out of there.
Once you’re safely in your car, you can scream “YES!” as loud as you like and do your happy dance! It’s required.
You might want to take a few flattering pictures of the house and the neighborhood to use in your marketing while you’re there. And put up a few signs if you have them and have permission to do so.
After you get back to your home or office, you’ll want to contact your real estate attorney/closing agent/title or escrow company. Tell them about the deal, scan and send a copy of your signed documents, and TELL THEM TO CHECK THE TITLE. Note that checking the title is almost always one of the first things we do after getting a property under contract. This is part of doing your due diligence.
Good News!: The closing agent (attorney) will be the one to prepare all the rest of the documents, including the deed, the note/deed of trust/mortgage, and everything else you need. YOU only need to bring the docs we’ve already discussed here. The professionals take care of the rest, so you don’t have to worry about that crap. How cool is that?
Want another Checklist? Fine… Here You Go…
Checklist For Getting A Property Under Contract:
…And there you have it: Exactly what to do after you get a property under contract!!
Now you know, and I believe that this (more than) answers your question, B.
And for everyone else, I hope this helps to fill in the gaps of your knowledge, so that you can have a better big-picture view of what to do!
Thanks for reading, and have a great day!
“What’s It Gonna Take?
How to Finally End Procrastination & Take Action”
by Tony Pearl
This article was not easy to write. In fact, it was one of the more challenging articles I’ve written in a while. Why? Because it deals with something that’s not easy for us to talk about: The reason why most people don’t take the action they know they should so that they can have the success they say they want to have.
The only place where success comes before work is in the dictionary. It’s an old-school, classic, tried-and-true principle: If you want to have success, you’ve got to work hard to make it happen. And hard work means taking action.
Why do you think most people don’t take the action that needs to be taken? I believe it comes down to two things: 1. Lack of Knowledge, or 2. Abundance of Fear.
Lack of knowledge obviously means that you don’t KNOW WHAT TO DO. That makes sense, right? If you don’t have the knowledge, how can you do what needs to be done? There’s a simple fix for that: Get the training you need! There’s two ways to get it – you either go to the school of hard knocks, where you go out and try to learn it all on your own, OR you pay someone to teach you. Believe it or not, you will save SO much time and money if you just find the right teacher/trainer/mentor and pay them.
Which brings us to our second reason most people don’t take the action that needs to be taken, and this reason is a lot more wicked and common than the first: FEAR.
Fear freezes. It paralyzes. If you allow fear to rule your life, you’ll live a life of mediocrity – or worse.
A quote I once heard went something like this: “A life lived in fear is a life half-lived.” I think I heard that in a movie, but it made sense to me.
There’s only ONE definite way to conquer fear: Take Action!
Remember this: When you take action to face and conquer your fears, the fear of what you have goes away. It’s amazing, and I’ve personally seen and experienced it countless times in countless situations.
The best advice I’ve heard went something like this: “Feel the Fear, and DO IT Anyway!” Then ask yourself this: “What’s the worst that could happen, and what can I do to prevent that?” Hey, you want to be assertive & successful, not stupid, right? 🙂
Fear is a natural thing. As humans, we have a natural instinct for self-preservation. We don’t want to die, so we feel afraid when we face something that our subconscious perceives as dangerous. The unknown is one of those things we’re afraid of, hence the expression “The Devil You Know is Better Than the One You Don’t.”
So with all this fear floating around us in our everyday lives, what’s it gonna take for you to take action to conquer that stinkin’ fear once and for all? If you know what you need to do, why aren’t you doing what needs to be done to claim your success?
A few years ago, I had a personal moment of realization. At the time, I was educated but broke. I was working my butt off, doing what “they” tell us to do, but barely had enough money to feed my young family. Even though I loved what I was doing (Ballroom Dance Instructor), it was sometimes hard to put food on the table and pay all the other bills that needed to be paid.
So I decided to make a change. I got into real estate investing. I hardly knew a thing at the time, so I went out & got some training to learn what needed to be learned. After a little while & some luck, I found the best teacher & trainer I could – Ron LeGrand.
At first, I was terrified to do what needed to be done. Put up signs, mail out letters, go to meetings, and (gulp) TALK to people! Oh yeah, and make offers…and do what I said I was going to do. All that stuff. Scary as hell.
Even though I didn’t know everything, I knew enough to get started. So that’s what I did. I took massive action and kept going. Learned as I went. Made countless mistakes. Bent some rules a little bit, but I got deals closed and made money. All while being scared out of my mind.
If you know me, you know my story. In only a few short months of applying what I learned by taking massive action, I started doing real estate deals and became a millionaire!
What’s my secret? What’s the secret of so many people who have had success in this (or any other) business? There’s a lot of possibilities, but I personally believe it all comes down to ONE thing – this quote that I made up about 15 years ago. Write this down:
“Nothing Happens UNTIL… Someone (you) Gets MAD (or excited) Enough To DO Something About It.”
I’ve been saying that for years, and I really believe it’s true. I think it relates nicely to another article I wrote recently about how to get anything out of life by getting OUT of your comfort zone.
But think about that for a moment – chances are that nothing of significance is going to happen for you in your life until you’re so sick and tired of being sick and tired of your current circumstances that you make a personal pact with yourself that you’re just going to do WHATEVER IT TAKES to get to the next level.
Either that, or you just get so excited about something that you just have to take action to get what you want.
The first one is a negative/fear/moving-away-from-something kind of thing. The second is moving towards something positive. Either way works.
Most people in the world take action because they’re afraid of what might happen or would continue to happen if they don’t take action. It’s a shame, but that seems to be the reality.
So here’s the next secret you need to figure out: Which kind of person are YOU? Are you a moving towards kind of person or a moving away from kind of person? You’ve got to first figure that out for and about yourself before you really start moving forward in life.
Once you have that understood, you can start to play a game with yourself. Find ways to ‘trick’ yourself if you must so that you change your state within yourself. Ask yourself what will happen in your life if you don’t take the action you know you need to take. Chances are: Nothing. Nothing will happen! You’ll keep on doing what you’re doing and getting what you’re getting. And we can’t have that.
Follow “The Five Second Rule”
Have you heard of “The Five Second Rule?” No, I’m not talking about when some food falls to the floor and you have 5 seconds to eat it. Gross. I’m talking about the book by Mel Robbins! This is a really great book with a very powerful central message.
Here’s an excerpt. Read This: “The 5 Second Rule is simple. If you have an instinct to act on a goal, you must physically move within 5 seconds or your brain will kill it. … There is a window that exists between the moment you have an instinct to change and your mind killing it. It’s a 5 second window.”
In other words, once you get an idea or you know you need to DO something (take action), count to 5 in your head. And then… JUST FREAKING DO IT!! Pick up that phone and make the call. Send out that offer. Raise your hand. Don’t overthink it, JUST DO IT!!
How about a nice, healthy dose of PERSPECTIVE? If you don’t mind, I’d like to share one of my favorite poems here. Trust me, when you read this, it will really help to put everything in place for you. Ok?
So here we go…
I present to you the poem known as “The Dash.”
by Linda Ellis
I read of a man who stood to speak at the funeral of a friend.
He referred to the dates on the tombstone from the beginning… to the end.
He noted that first came the date of birth and spoke of the following date with tears,
But he said what mattered most of all was the dash between those years.
For that dash represents all the time they spent alive on earth
And now only those who loved them know what that little line is worth.
For it matters not, how much we own, the cars… the house… the cash.
What matters is how we live and love and how we spend our dash.
So think about this long and hard; are there things you’d like to change?
For you never know how much time is left that still can be rearranged.
To be less quick to anger and show appreciation more
And love the people in our lives like we’ve never loved before.
If we treat each other with respect and more often wear a smile…
Remembering that this special dash might only last a little while.
So when your eulogy is being read, with your life’s actions to rehash,
Would you be proud of the things they say about how you lived your dash?
Wow, right?! Talk about a powerful poem! What’s the take-away here? Quite simply this:
When you look at the DASH that you have to live your life, how the hell are you going to let a little bit of stupid FEAR hold you back from swinging for the fences and living the BEST possible LIFE you can live??
To close this up, I have one final quote for you. This one comes from the 1974 movie “Network,” one of my personal favorites. You’ve got to stand up and declare to yourself, “I’m as mad as hell, and I’m not going to take this anymore!”
Now, get out there & TAKE ACTION so that YOU can live YOUR DASH!!
Until Next Time,
Copyright 2020 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, so don’t believe a word of what he says! Instead, go use his advice for yourself, and see what happens. 😉
“Want To Play Doctor?”
by Tony Pearl
Relax… You can keep your pants on (if you want to). 🙂
In this article, we’re going to discuss something very powerful that will hopefully make a lot of sense and apply to a LOT of things in your life of business.
Have you ever noticed that there are many common experiences we have in life that relate to something that seems totally opposite? I sure have! For example, going on a first date is a lot like a job interview; Dancing is like real estate investing; and Doing a deal is like going to the doctor. Wait… What?
That’s right! Doing a deal and negotiating with a seller (or buyer) is just like going to a doctor’s appointment. Don’t believe me? Well, keep reading, because I’m about to ROCK YOUR WORLD!
If you’ve read my previous article, “The Art of Prescreening,” you’ll remember that there are THREE types of people we’re going to deal with in a sales or real estate situation. The Suspect (not motivated, usually a waste of time), the Prospect (motivated, flexible, low-hanging fruit), and the Project (fence sitters, not ready now, need more information/time). The information you’re about to discover in this article relate best to the Project or even a marginal Prospect, because here is where you’ll truly need these skills to close these nice people and make money. Got it?
Let me tell you a story. I call this…
“The Tale of Two Doctors.”
I want you to imagine something with me…
Imagine that you just sprained your ankle. Badly. You’re at the doctor’s office, and you’re just walking in to see him for your emergency appointment.
You step into the Doctor’s office to talk with him. Let’s call him “Doctor Alpha…”
“Welcome and come on in!” Doctor Alpha warmly greets you with a smile on his face. He tells you to have a seat. So far, so good. But then, things quickly change…
“Hey, have you heard about the special we’re having this week on back surgery? Did you get our coupon? Oh, and let me tell you all about the great new pain medications we just got from this hot young pharmaceutical drug rep! You’ve got to try these!”
When you try to object and tell him that you don’t need back surgery and you don’t care about coupons because you’re here about your ankle, he brushes you off and still tries to sell you on the benefits of having surgery and taking these new pills!
How quickly would you grab your crutches and get the hell out of that doctor’s office?
And why would you leave? The doctor sure seemed nice, right? And he really made that back surgery & those new pills sound great, didn’t he? The answer is simple and obvious: You would get out of his office as quickly as you could because you felt like the doctor didn’t care about you. He only cared about what HE knew and what he could SELL you – for his own benefit! In other words, it was all about him, not you.
Further, he never took the time to ask you why you were there, what your problem was, and what you wanted to have happen. Surely, it wouldn’t be long before that doctor lost his license!
Now Let’s Go Somewhere Else To Get a Second Opinion…
Alpha vs. Bravo
Now let’s go talk to “Doctor Bravo.” You’ve heard good things about him, so you’ve made an appointment, and are now walking into his office…
“Hello, nice to meet you! Please come in and have a seat…” Like Doctor Alpha, he starts off with a nice, personal touch. But once again, things quickly change – this time, for the better, as he asks…
“So, what brought you in today? Why are you here & how can I help?”
You recant the story of what happened with your ankle – how you injured yourself, and all the appropriate details. As you describe the essential details, the doctor pays close attention, and even takes notes.
“What have you done so far to fix the problem?” he asks you. So you tell him. He takes more notes.
“Ok, I see. And what would you like to have happen now? How can I best help you?” What a great question you think to yourself as you begin answering him with what you think is the obvious answer – that you’d like to fix the problem and get back to “normal” again. (Not the “new” normal lol)
At this point of your brief meeting with Dr. Bravo, you’ve easily determined that he: Understands your situation, cares about you, knows what he’s talking about, and can now make the appropriate recommendation for what you should do next. Because of all this, you feel like you can completely trust him.
So when he finally comes back with his prognosis/prescription/recommendation for what you should do next to solve your problem and get you where you want to be, you feel like he knows exactly what’s best for you, so the chances are very high that you’ll follow his advice, and do business with him.
Now… What the heck does all this “Doctor talk” have to do with real estate investing? Well, the answer is: A LOT!
Step Into My Office…
When we work with sellers, buyers, or anyone that we’re looking to help, we often find ourselves in a position where we may have to “educate” them on something new to them. For example, getting a typical seller to understand that there are other ways to sell their house…using terms! Or helping a buyer understand that there’s a way to rent to own a home…from you!
Because of this fact, we often need to follow the ol’ Pearl-established axiom of “Seek first to understand…then to be understood.” That means that it’s more powerful to first find out what’s going on with your prospect’s situation before telling them how you can help. Because only when they feel like you understand them will you get them to listen. Only when they feel like you know their pain can you sell them the solution. Because if you don’t, you’ll probably have a common problem…
Do You Suffer From “Premature Presentation?”
How embarrassing! You’re all set and ready to go. You’ve found a potential prospect – in this case, a seller looking to sell their house. They’ve initially indicated that they might consider taking payments for their house! So you get on the phone and start talking. You can’t wait to tell them all about what you’re going to do and how you’re going to buy their house.
So you spend 25 minutes describing all the wonderful details about how they can sell their house to you. You’re telling them all about selling with owner financing or a wraparound mortgage. You even describe lease purchasing – for both them and your eventual tenant buyer. You’re so busy trying to convince them but you never took the time to find out about them first. What do you think would happen here?
Chances are that it probably wouldn’t work out too well, because you were acting like “Doctor Alpha,” trying to sell them a special on back surgery.
How To Play Doctor (No Medical School Needed)
Good news! You’re about to receive an honorary “Doctorate Degree,” and you won’t have to go to school for 25 years, rack up mountains of student debt, or even write any dissertations! So… How would you like a crash course in how to do things the right way, like a good doctor? Are you ready? Ok, let’s get started! It all begins with this…
Tell Me Where It Hurts
One of the first things we MUST understand is this: As human beings, we can be a lazy species. By that, I mean that we often won’t DO anything until we’re in PAIN! They say you’re supposed to go to the dentist every 6 months, but how many people actually do that? Most wait until they’re in pain to make an appointment. The same can be said for doctors – especially for us men! Hey, don’t judge.
So it only makes sense that we’ve got to find, create, or exacerbate some sort of pain in order to have the highest chance of doing business. Due to the fact that many people don’t like to ‘air their dirty laundry’ by just openly telling you about their pain and their problems, we’ve got to get the skills needed to have them feel comfortable sharing the real underlying motivation so that we can really provide value with our solutions. In other words, we’ve got to find their headaches in order to sell them our aspirin!
Did you know that there are THREE types of pain? They are: Past, Present, and Future. Yes, just like in “A Christmas Carol!” And like that wonderful book, it’s best to start with the past, because the past pain helps us to understand how we got to where we are now.
So how do we do that? Simple. We ask!
How Long Have You Had This Problem?
When it comes to real estate (or anything), we want to focus on a common sense approach to the situation we’re dealing with at the time. For example, if you’re talking to a seller, you should ask questions like, “How long have you been trying to sell your house?” And “What have you done to sell your house up to this point? How has that worked out for you so far?”
As you can see, these types of questions help us to understand what’s been going on up to this point. This also helps the seller to get in touch with their pain, and how long they’ve had it. Is it beginning to make sense how this will help you?
Of course, it’s just as important to listen to their response as it is to ask the right types of questions. You’re trying to listen for clear signs of motivation, pain, and flexibility… or lack thereof.
After you’ve gotten them to open up about their past pain, we need to move on to their present pain. How? Same answer. By asking…
What Are You Doing NOW To Solve This?
At this point, we’re looking to focus on the present. What’s going on now. Here’s where we can really help our prospect get in touch with their emotions, and hopefully share the pain of their present situation with us if possible. Remember, if there’s no pain in their situation, the chances of doing business in a way that works for us is greatly reduced. Like the old adage goes, “No pain, no gain.” In this case, the pain applies to their situation, and the gain applies to your finances.
Some great questions you can ask to find out what the present pain is could include simple things like, “Who’s living in the house now? Is it vacant, or…?” “What kind of shape is the house in…does it need any work done?” “May I assume you’re current with the payments?” And of course, the classic & essential, “Why are you selling your house now?”
TIP: Make sure you encourage them to talk. Go deeper to help them expand their pain points. In other words, help to figuratively stick a knife in their pain. Yes, I know it sounds bad, but you’ll thank me later when you actually do this.
Once the present pain of their situation is out of the way, it’s time to move on to the future! We need to find out…
What Happens If You DON’T Solve The Problem?
This is more powerful than you know. And this can, in many times, really be your ace up the sleeve. If you’ve been able to find out the past & present pain, helping them to discover the future pain will really seal the deal for you in many cases. If you haven’t found much pain in their situation up this point, this can be your saving grace.
Let’s continue with our example of dealing with a home seller. One of the most powerful questions you can ask them is, “What will you do if you’re not able to sell your house anytime soon? Would you just rent it out?”
My friend, when you ask that subtle sledgehammer of a question, get ready to watch their reaction closely. Many sellers never even consider this, as I’ve been told many times by many sellers. So many people just “expect” everything to work out perfectly. They never even consider the possibility of needing a “Plan B.”
If they react with, “Oh, we know it will sell. We’ve had many offers. It’s just a matter of time. We’re not concerned about it not selling.” There’s one of three things going on here. They’re either a: Lying, b: Not motivated, or c: They’re not living in reality. You’ll need to use the context of the entire conversation to decide which one it is. We can’t do much if they’re truly not motivated, but we might be able to do something if they really don’t understand the potential gravity of their situation and we can get the truth out of them. But if they answer like that, it’s usually not good for us.
However, here’s how most people reply to that question… “Gosh, we haven’t even considered that! Wow, yeah, I guess we’d probably have to just rent it out, because we can’t keep making payments on a house we’re not living in!”
If they reply with something like that, you’ve just been given a green light to proceed! Why? Because you’ve helped them discover the potential pain of their future if they don’t solve the problem of selling their house. And you’re here to help!
Once you’ve completely uncovered all the PAIN of their situation, it’s finally time to move on to the SOLUTION you’re going to provide! So now we start to transition to…
What Would You Like to Have Happen?
If you’ve done a good job up to this point, you’ve placed them in an emotionally uncomfortable position. You’ve built up some stress and helped them discover all the pain of their situation. It would be cruel of you to just leave them like that, and that’s not what we’re here to do. So let’s help our prospect get some relief by providing some solutions for them.
I’m going to give you a really great question to ask anyone when they’re in this position. Are you ready for this? “If we could wave a magic wand, what would you like to have happen here?”
By asking that question, you encourage them to open up about what solution they’d like to have. You’re getting them to start to make an offer to you. Don’t be surprised if you’re surprised by what they say.
Their answer to that question will be a very nice segway to you presenting and providing your solution. Much like a doctor, we want to help take the pain away from their life. The more PAIN they have, the more they should be motivated to be flexible with the solution you’re able to provide. Now it’s time to tell them to…
Take Two of These & Call Me in the Morning
You’ve identified all their pain. You’ve asked them what they’d like to have happen. Now all that remains is for you to skillfully present your solution. The right way to do this is by first presenting them with their OPTIONS. What happens if they do this? Or that? Or nothing? Or… they could work with you, in the way you describe (in favorable terms, of course).
When you present your solution, you should highlight the benefits and advantages in a factual way, while at the same time sprinkling in some emotional appeal. But you must keep it BRIEF. You don’t want to sound like you’re selling them too much.
Bring it all home by simply giving them a choice. And give them just one more question now… “So, with all those options, which do you think will be the best one for you at this time?” If you’ve done it correctly and are talking to the right person, guess which option they’ll want to pick?
You’re CURED! Now What?
Assuming everything went well, and you got a positive commitment about moving forward with your solution, all that’s left to do is work out the minor details and set up the next steps. For a doctor, that could mean anything from scheduling more tests, picking up a prescription, or scheduling a date for surgery. For a real estate deal, it usually means getting a contract signed and checking the title.
Wrapping This Up With Some Tape…
Can you now see the correlation between going to the doctor and doing a deal as a real estate investor?
Just like the Tale of Two Doctors, make sure you don’t suffer from premature presentation like Doctor Alpha! Be the true professional, like Doctor Bravo. Find out what your prospect’s PAIN is, and dive deep. Remember to focus on the past, present, and future pain, and look for your opportunity in there. When you’ve found all that out, present your solutions in a way that makes sense for the seller.
Finally, set up what the next steps need to be so that you can be sure your patient is properly cured. Or rather – to make sure your deal gets closed.
And with that, you now know how to PROPERLY play “Doctor” so that you have more fun getting deals done… Role playing optional
Congratulations…Now get out there and have fun playing doctor! And if you like, you can even keep your pants on. 🙂
Until Next Time,
Copyright 2020 Tony Pearl | All Rights Reserved
BIO: Tony Pearl is a writer, speaker, copywriter, coach, mentor, marketer, 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!
Ballroom Dancing… and Real Estate? What gives?
Good question! Let me explain…
I don’t know if you knew this, but before I started really investing in real estate, I was a professional Ballroom & Latin Dance Instructor/Competitor of 14 years! That was my previous career. Loved it!
Although it might not seem like these two careers have much in common, I actually began to realize just how similar these apparently different disciplines really are during my early days as an investor.
For example, I remember this one time when I was talking with a seller of an ugly house and trying to get her bottom price.
I asked her the notorious question, “Janice, if I paid you all cash & closed quickly, what’s the least you could accept for your house?”
“Well, what could you offer me?” She replied.
“That all depends. What’s the least you could take?” I shot back.
“I really don’t know. Why don’t you just make me an offer?”
Do you recognize that dance? It’s the “Scared Swing!” The “Cheap Chicken Cha-Cha!”
“Ok,” I said, sensing where this was going. I used Ron’s reply, “How about a dollar?”
“One dollar? That’s ridiculous. The least I could take for this house is $100k!”
I thought to myself, “At least now we’re getting somewhere!”
“$100k??” I remember asking. “Is that the Best you can do?”
“I don’t know… How much can you give me?”…
Well, to make a long story short, we finally did get the deal done, but only after some fancy footwork.
And that’s when it hit me…
Being a Real Estate Investor is Just Like Dancing!!
Why & how you ask? Simple! Just for you, I made a list.
Here’s How Real Estate Investing and Dancing Are Alike…
1. You Have to LEAD!
In dancing, it’s normally the man that leads, because he’s the one who supposedly knows what he’s doing & where he wants to go. He’s the ‘expert.’
It’s gonna be a hard dance that won’t be much fun to watch if both partners are trying to lead!
Just like dancing, the investor has to be the one to take the lead, because…
WE are the professionals who know what to do, and it’s up to US to successfully lead our ‘partner’ through the dance, er deal!
By the way, that ‘partner’ could be a seller, a buyer, another investor, etc.
2. You Have to Deal With OBSTACLES.
Yes, when you’re dancing, you have some obstacles in your way. The floor is only so big.
There’s tables, chairs, and people to go around – or on!
In a real estate transaction, you have many more obstacles that may stand in the way of closing the deal. Even after you have a deal under contract, you still need to find a qualified buyer, deal with a title company, loan officers, underwriters, banks, appraisers, inspectors, and on & on.
Hey, there’s a TON of obstacles that could get in your way – some of ‘em on a daily basis! Like, what if you still have one of those JOB-things? :0
3. You’ve Gotta Have RHYTHM!
Well, that should be fairly obvious for dancing. And if you’re dancing, there’s hopefully some music playing (at least in your head!). Yeah, it helps tremendously to move WITH the music, not against it!
Being an instructor, I could tell you some horror stories that’ll curl your hair of people who were so rhythmically-challenged, it’s a wonder how they walked into my studio without falling down!
I remember this one guy who… Never mind, you wouldn’t believe me if I told you!
Now, in business, rhythm can be a tricky thing. It’s there, but maybe not as obvious as it is in dancing.
But the good news is that rhythm – to some extent – can be learned.
You can develop your business rhythm by first organizing your schedule.
Set times to do your marketing, to make offers, to follow up, to find & hire the right staff, etc.
And set some time to spend with yourself & your family! (See the next section). After a while of developing this habit, I’m sure you’ll find yourself in a nice groove, baby!
…Just like those people who walked into my studio… But danced out!
4. You Need BALANCE.
Now this should be obvious as well. We have 2 legs for a reason – to balance ourselves. If you’re gonna dance, you don’t want to fall down, and you don’t want your partner to, either.
So, in the dance of real estate investing, it helps to always make sure that not only are you doing well, but that the person with whom you’re doing business is getting what they want out of the deal as well.
Not only that, but I’ve been told that it’s a good thing to balance your business by selling some houses & keeping some houses.
That way, you get the best of both worlds – big piles of cash to go with your diet of a residual income stream that you get from rents/lease options.
5. You’ve Gotta Have the Right PARTNER!
Like the old expression, “It Takes TWO to Tango,” this is definitely true!
If you’re dancing with someone who is fighting you the whole time, doesn’t like how you dance, or just doesn’t want to dance with you in the first place, do yourself a favor & get OFF the floor immediately!
How this relates to our illustrious business is easy… DON’T deal with unmotivated sellers!
Don’t do business with someone who doesn’t want to do business with you. And don’t do business with someone who doesn’t care to understand how we do business!
If you only work with people who want to work with you, you’ll save yourself a TON of headache, heartache, time, stress, and effort. So just steer clear of anyone else and let ‘em be somebody else’s problem!
How do you think I know this? Yeah, I’ve got my share of horror stories in both departments – dancing AND business!
How do you think I got so “smart?” 🙂
So are you starting to see just how similar dancing & Real Estate Investing can be now?
And believe it or not, these are just a few of the things that they have in common!
Hey, I’m just gettin’ warmed up! How about you?
How about a quick review of the concepts connecting dancing and real estate investing we’ve covered so far:
1. You have to LEAD;
2. You have to deal with OBSTACLES;
3. You’ve gotta have RHYTHM;
4. You need BALANCE; and…
5. You’ve gotta have the right PARTNER!
But we’re not done yet! Yes, just when you thought it was safe to get back on the dance floor, I have 5 more things to share with you. Ready?
Here’s What ELSE Dancing & Real Estate Investing Have in Common:
6. You Should Always ASK!
That’s right… ask! ASK someone to dance… ASK the seller if they’ll sell you the house for what they owe on it… ASK them what their favorite dance or music is… ASK if they have any questions. ASK them WHY they want to sell their house.
Always ASK them for their business. What’s the worst that could happen? They could say no? (Gasp!)
Ha! Believe me, if you approach any condition with the confidence, poise, and polish of an experienced & professional investor (or dancer), the chances of anyone saying ‘No’ to you go ‘waaaaaaayyyyyyyy down!’ (Marshall Sylver).
7. You Should Make it FUN!
That’s right… fun! Something I’ve definitely noticed in the time that I’ve been alive & doing business is that people are starving to be entertained.
Now, I’m NOT saying to just give them all sizzle & no steak, or just dazzle them with your footwork, but if you can successfully make doing business (or dancing) with you an enjoyable experience for the other person, not only will you make more money, blow away the competition, have more friends, etc., but – shoot – you’ll just feel better about yourself, too! And the last time I checked, if you feel good about yourself, you’ll attract the right people to you…almost as if by magic.
How to make it fun? Call them by name. Smile more. Make them laugh. Ask them about themselves (in a way that applies to what you’re doing), their family, hobbies… and even dancing!
Before you know it, you’ll both be feeling good, and next thing you know, the dance is over & you’ve done the deal. (Take that how you want to!)
8. It’s Sexy! (My personal favorite)
A friend of mine recently said to me, “Tony, success is an aphrodisiac!” Well, guess what? She’s right! And dancing is an aphrodisiac, too… did you know that?
Think about the last time you danced. Imagine the feeling. Hopefully, it’s a good one. Were you with someone special? How did they feel?
If it was a positive experience, you probably had a good time (and a good night)!
Now think about the last good deal you closed! Did you feel all warm & fuzzy inside? How did the person with whom you were doing business feel? Were they happy that you got things done when you said you would?
I just hope you took the time to celebrate the way you wanted & deserved afterwards!
9. It’s a Partnership.
Never forget this. In dancing, you are both dancing together to the music. At least I hope you are. (I’ve seen people dancing to some music I swear only they heard!)
In real estate investing, remember that you are ALL working towards getting the deal closed. This includes the seller, Title Company, buyer, appraiser, agent, etc.
Early in my investing career, I had come up against a couple situations where I incorrectly perceived that someone was trying to stop the deal from going through. One time, I lost the deal. The next one, I simply reminded myself that this person is actually on my team, but they just had an issue with something.
By this realization, I was able to step back & reassess the situation.
I then returned & reminded this guy that we were on the same team, and how we both just wanted to get the deal closed. He agreed & this opened up a new line of conversation. From there, we got it done – he got paid, and so did I! Sweet!
10. Make Them Look/Feel Good!
Now, I must say that as a man, it’s our job to make the lady look good on the dance floor. There’s an old expression we would use in the dance business:
“The Man is the Frame, and the Lady is the Picture.”
So, if you’re a lady, your job is to look good, right? Right. But in order to do that, you would need to follow the leader – the man! If you’re fighting him the whole time, nobody looks good, least of all you. Sorry, but that’s the truth.
In real estate investing, particularly negotiating (and isn’t just about everything a negotiation?), I’ve noticed that the best deals have been the ones where I let the other person look or feel like they’ve won, or make them look good.
Hey, it’s not always about sucking every bit of juice out of the deal. Sometimes, you’ve just gotta slow your dancing down a little bit in order to move at the other person’s speed.
…And here’s the last one (Bonus):
11. Always Finish Well!
Ahhh, here we are… The music is just about to end or the deal is almost done. Everything has gone ok up to this point, so you want to make sure you finish the dance or the deal correctly… With a Big Bang!!
Make a lasting impression! Obviously, in dancing, the man would want to dip the lady or spin her with an inside underarm turn, followed by a quick bow to ‘properly’ finish the dance, right?
And what are some ways you can ‘Finish Well’ in a real estate transaction? Well, it all depends! Are you buying the house or selling it? In either case, you should always send a card, thanking them for their business – or maybe call them & let them know how things are going or went. Maybe send a basket of fruit… And don’t forget to ask for a referral!
Well, there you have it! Now you actually know quite a bit about what real estate investing & dancing have in common!
They’re not quite so different now, are they? And you thought I was crazy.
Well, maybe you’re right… But if you remember & apply this lesson, you’ll be dancing all the way to the bank!
The 11 Points That Dancing & Real Estate Investing Have In Common:
1. You Have to LEAD;
2. You Have to Deal With OBSTACLES;
3. You’ve Gotta Have RHYTHM;
4. You Need BALANCE;
5. You’ve Gotta Have the Right PARTNER!
6. You Should Always ASK;
7. You Should Make it FUN;
8. It’s SEXY;
9. It’s a PARTNERSHIP;
10. Make Them Look/Feel GOOD;
11. Always FINISH Well.
Now Get Out There & Swing It!! Shake Your Money Maker! 🙂
Let me know what you think by leaving a comment below…
Copyright 2020 Tony Pearl, YourRealEstateCourse.com | All Rights Reserved
“It’s The Zombievirus Apocalypse! Buy Toilet Paper,”
by Tony Pearl
It all happened so fast…
One day, everything is fine. People are working & we’re all living our lives as usual. The stock market is soaring. Jobs are high and unemployment is low. Then, seemingly overnight, the dominos begin falling. People start getting sick because of this mysterious new virus from China. Travel bans are put in place. Schools, businesses, restaurants, bars, gyms, libraries, and basically everything start closing. The government encourages everyone to stay & work from home, and a new buzzword is born: “Social Distancing.”
The economy tanks, and people start buying…toilet paper???
If someone can please explain that to me, I’m all ears.
While I completely understand that we need to exercise caution when needed, it seems like things have gotten completely crazy & the world has gone mad. March 2020 will forever be known as the time when #CancelCulture went HORRIBLY wrong.
“Never Underestimate the Stupidity of Mass Psychology.”
Here’s an example of how dumb some people get when they panic: I’ve heard stories about people who are so
stupid “mentally challenged” that they stopped buying/drinking Corona Beer. Why? Because they’re afraid of catching the Coronavirus! (face palm)
Just more proof that when emotions run high, intelligence runs low.
So what should we do now, in the age of this pandemic shutdown and economic uncertainty? Well, the first thing we shouldn’t do is panic. We’ll get better, eventually. In fact, I’m sure we’ll bounce back even stronger than ever at some point, and hopefully soon. Time will tell.
“Every Crisis Comes With An Equal or Greater Amount of Opportunity”
How true. So look at this time as an opportunity. An opportunity to spend some quality time with your family & loved ones (who aren’t sick). Read some books. Binge a couple movies you’ve been meaning to see. Write something. Call some old friends to check up and catch up. Plan your next moves. Write your goals & get started.
Now that almost everyone has to work from home, I’ll predict that a lot will change going forward. More people will quickly recognize how easy and awesome it is to use technology to accomplish more from home than they do at work… If they don’t go crazy first!
Here’s a few more predictions I have: More people will telework. Employers will probably start to realize that they can reduce their overhead expenses by having employees work from home at least part of the time. I think that’s a good thing. Less idiots on the road means less traffic. Maybe people will start to learn and develop more skills while they have this time off…After they’re done binging Netflix. Maybe more people will start a home-based business or side hustle. Time will tell.
So what should we do when no one can go to work or even leave the house? We reach out to people! We make more calls. We send out more text messages. If you’re talking to sellers who claim to want full price, all cash, great! Add them to the list and FOLLOW UP with them in 2-3 weeks, when the sky really starts falling. See how they feel then. Is it possible that they just might be a little more open-minded at that point? Remember that everyone’s mind will change with time and circumstance. And my oh my do we find ourselves in some crazy circumstances now, don’t we?
When there’s blood in the streets and chaos is running rampant is when the best opportunities will be available. Look at every chaotic time in our history, and you’ll easily see people who made their fortunes then. Why can’t that be YOU?
The last crash we had hurt a lot of people, but it also created tremendous wealth for those who were ready. Those who had cash were able to buy at huge discounts. Those who were creative were able to make deals when everyone else was wondering what to do.
The Next Wave is Coming. Get Ready.
It’s sad to say, but the poop may be about to hit the fan. Grab your toilet paper and get ready, because this stupid virus has just provided us with the next wave of opportunity. People are already losing their jobs, and it’s probably going to get a lot worse before it starts getting better for a lot of fine folks. Many home sellers who really need to sell their houses suddenly won’t just be able to lazily list their house with an agent and sit back anymore while people fight to pay them too much money. Oh darn.
Where will the opportunities be in real estate? Probably: Buying subject to, buying for cash at the crash, and doing lease option deals. So GET READY!
So that means that you should be able to buy more houses and do more deals, because the motivation levels will start climbing. So sharpen up your subject-to, your wraparound mortgage, and definitely your lease optioning skills. Because if things get as bad as they’re predicted to get, you’re going to need them.
Now Is The Time…
IF the economy continues its downward spiral. IF the fear and panic continue to spread the way it has been. And IF more people lose their jobs because of how things are going, then I believe we’re going to see the perfect storm unlike anything we’ve seen before.
Here’s what could possibly happen: House prices will start to stagnate, then quickly begin falling. People will start getting behind on their payments, and become more desperate to sell. All those hoity-toity sellers who want all cash today may just become the motivated sellers who are open to taking payments tomorrow when their houses still aren’t selling. Banks may start tightening things, because they may get scared that people aren’t able to pay. And more people who want to buy a house may instead have to look at renting or renting to own!
So again – start getting busy TODAY. Start making those calls & sending out those texts TODAY so that you can have a brief conversation to get yourself on their radar, and FOLLOW UP (aka “F.U.”) within a week or two or three. Ok?
Leverage Technology to Make More Offers
When times get tough, the ones who survive and thrive are the ones who get creative. If people are scared to go out, why not use technology to pump out more offers? For instance, have you heard of Docusign or Hellosign? These are powerful platforms where you can upload a Standard Purchase & Sales Agreement, edit the parts you want, and indicate the areas where you need people to sign. Then you simply email it out and get your prospects to sign the agreement right there from the comfort of their computer!
All you need to get a deal going is a signed Purchase & Sales Agreement or Lease Option Agreement, and those are totally fine to have digitally signed. You don’t even need to see the stinkin’ house! TIP: After you get an agreement signed, you’ll want to do your due diligence, and get someone to take fresh pictures of the house.
Of course, we also have to look at the possibility that this whole thing could blow over quickly, everything starts reopening, and we continue on as if nothing ever happened. You never know!
Now For Some Laughs…
All right. Let’s take a little break from all this serious & scary Zombievirus talk and have a few laughs together, shall we?
Here’s a few funny things for you to consider:
Wrapping It Up
All kidding aside, I hope you, your friends, and your family all get through this Pandemic COVID-19 thing safely and you stay healthy. I also hope you not only survive but THRIVE by using some of the thoughts & ideas here in this special article and elsewhere.
Just make sure you wash your hands a LOT. Especially if you didn’t find any toilet paper! LOL
Until Next Time,
Let me know what YOU think – leave a comment below!
Copyright 2020 Tony Pearl | All Rights Reserved
by Tony Pearl
In this article, you’re going to learn exactly HOW to form your first (or next) Corporation or LLC as quickly as TODAY!
Learning how to set up a business entity (Corporation or LLC) has probably made more people hold themselves back from really getting started with their real estate investing than I can possibly tell you. So make sure you read this article closely so that you can learn just how simple it will be for you to get this little challenge out of the way, once and for all.
We’re going to cover WHY it’s important to have an entity in the first place, along with WHAT you’ll need to form one, and the three main ways of HOW it’s done. One thing we won’t cover is which one you should form – Corp or LLC. Are you ready for this? Great! Let’s go…
Now, before we get into how to set one up, let’s first cover the reason WHY it’s a smart idea to have some sort of entity like an LLC in the first place.
It’s no secret. We live in a very litigious society, where anyone can sue anyone else for just about anything. We can thank those “wonderful” attorneys for that. Because of this, it should come as no surprise that if someone even thinks that you have money, and sees that you’re in business, guess what? It’s really not a question of IF but WHEN you’ll get sued. Especially if you’re in real estate.
As a general rule, you do NOT want to do business in your own name. Why? Because you make yourself an easy target. And because you put everything you personally own at risk if you do. Yes, that means your personal residence, your cars, your bank account, and even your wages if you’re still working a job.
Therefore, you’ll want to have some sort of entity you can use as a shield to absorb or deflect those potential lawsuits that can potentially come your way. When you do business as an entity such as a Corporation or LLC, you’re not jeopardizing your personal assets, because you’re doing business in the name of your business entity, not in your name.
Finally, there are usually some pretty decent tax advantages available to you when you have your own business entity. Naturally, you’ll need to consult with your qualified, licensed, investor-friendly CPA for more info. Got it? Good! Let’s continue…
What’s Needed To Make an LLC
It’s actually simpler than you might think. The first thing you’ll need to form your own business entity is a NAME for it, then you’re going to confirm that the name you picked is available in the state you wish to incorporate. Once that’s confirmed, you’ll register that name, file your paperwork, pay your fees, and you’re done!
Don’t worry, we’ll cover how to do those steps in more detail in this report.
Many states will require that you declare a Registered Agent. This is the person who will receive whatever paperwork the entity gets. Yes, this could someday include the papers for a lawsuit, but don’t let that scare you. The registered agent is not personally liable for a lawsuit. They just receive the papers. This registered agent could be you (the simplest way to go), or it could be anyone else. The only real requirement is that they need to live in the state that the business is incorporated.
Quick Tip: If for some reason you want to incorporate in another state than where you live, you’ll definitely need to have a Registered Agent IN that state. Those popular states that have privacy or tax advantages (I’m sure you’ve heard of them) will often have businesses that will be your Registered Agent for you for a nominal fee. If that’s what you want to do for whatever reason, just do a Google search for “registered agent” in that state.
Taking Your First Step
In order to create your own Corporation or LLC, you’ll first need to pick out a NAME for it. It could be anything, but I strongly suggest that you pick something that clearly defines WHAT your business DOES. Sure, it can be a cute and catchy name, but it should be obvious what you do and whom you serve first and foremost. An option would be to use the geographic area you serve. For example, if you’re buying & selling houses in the Dallas, Texas area, a good choice could be “Dallas Home Buyers” or “Dallas Home Solutions.”
A suggestion I have for you would be to take out a sheet of paper, and just brainstorm out as many ideas as you can. Keep writing until you can’t think straight. Then pick out the top five names you like the most. Set those names aside. We’ll need them soon.
The Next Step: Making Sure Your Name is Available
Now that you’ve picked out some good possibilities for your business name, you’ll need to make sure that it’s actually available. Someone may have already claimed that name for themselves! The way that you’ll check for this is revealed in the next part, which gives us the perfect segway to introducing you to the BIG part of this report…
The Three Ways to Form Your Business Entity
If you boil it all down, there’s really only THREE ways that you can actually create your Corporation or LLC:
Hiring An Attorney
So let’s start with that first one – hiring an attorney to set it up for you. This is usually the most expensive and time-consuming option, because you’ll need to first book a time with a qualified attorney who can handle this properly for you. And of course, you’ll need to pay them for their time. If you already have an attorney, they’ll probably be very happy to provide this service for you, because it’s usually extremely simple for them to create an LLC or Corporation for someone just getting started.
I would say that the best time to use an attorney for forming a Corporation is when your business is big and/or complex enough to warrant the expertise of a qualified attorney. The right one can assist in advanced strategies to accomplish whatever goals you may have. And the attorney would search to confirm that your business name is available or not.
Now, most people reading this will probably not have the need for such a deep and expensive level of service – especially if it’s your first time. For that reason, I usually like to recommend going with either the 2nd or 3rd options listed above.
Form It Online
Your second option – Using an online service to help you create your business entity is probably the best and easiest option. While there are fees involved, they’re usually pretty minimal, and well worth it when you consider the convenience.
There are several options at the time I’m writing this. Here are a few:
When you go to any of these sites, you’ll usually start off by picking WHAT KIND of business entity you want to form (C Corp, S Corp, LLC), then WHERE you want to form it (which state), and then what NAME you want to use. The sites listed above all differ as to what order those steps are in, but they’re all there. Of course, one of the very first things they all do is to search to see if your preferred business name is available.
The sites will also let you know what else is involved, what they do, and their fees. Usually, they’ll be able to handle pretty much everything FOR you – from checking to make sure that your business name is available in that state, to preparing and filing the paperwork for you in that state, to paying the state fees to for your entity – everything! All you do is pick your business name, state, type of business, who the members are, declare your business address (TIP: Use an address other than your home if possible), make sure everything is correct, and of course – pay the fees!
It really doesn’t get any simpler than that. And it only takes a few minutes. Naturally, the first time is always the hardest, and this is no exception. But the good news is that you’ll have help available to you through the site.
Do It Yourself
Ok, I told you there were three main ways to form your business, so let’s cover the third way now – Forming it Yourself!
This option is for the true Do-It-Yourself type person. I’ve actually done this myself many times, so I’m quite used to it. Like anything else, I’ve found that it’s only tricky to do the first time. After that, it’s as easy as pie. I’ll show you how it’s easily done, but I should also say that this should be your option only if you KNOW what you’re doing, and you have very simple needs for this. Ok? Here’s how it’s done…
The first thing you’d do is just Google something like “Form an LLC (or corporation) in STATE.” For example, Google “How to form an LLC in Florida”
…Or whatever state you want to use. Trust me, Google should bring back plenty of valuable information for you to use. Just don’t let that overwhelm or confuse you.
But what you’ll really be looking for is the search result that shows you what that state’s official website is, along with the appropriate link to get you started. Keep looking. It’s there.
Once you find and click on it, you should be taken to an official state page that has the information you need to set yourself up. I wish I could tell you everything you specifically need to do here, but since there are 50 states (plus Washington, D.C.), you’ll have to figure this part out on your own. If you can do it, great! If not, that’s what those websites I listed above are for.
When you find the right links, you’ll be able to do all the same stuff I had told you about earlier – you’ll be able to check on the availability of your chosen business name, usually right on the state website. You’ll be able to obtain and file your required paperwork. You should be able to upload those papers once they’ve been prepared and signed. Then you’ll be able to pay your fee to the state and be done. TIP: If you go this route, I recommend you pay the extra fee for expedited service. That way, you’ll get everything immediately, today! So it’s well worth it, whenever it’s available.
And just so you know, the “usual paperwork” for an LLC usually consists of Articles of Organization as well as an LLC Operating Agreement. I know. They sound scary. But they’re not too bad. You’ll see.
Which Way Should You Use?
Armed with this knowledge, you should already start to feel more confident about getting your business entity started quickly and easily. So which of those three options should you use? The answer is: It depends! I wish I could just tell you which way to go, but that would just not be right, because I don’t know what your situation is, what your expertise or experience is, or what your specific goals are for your business.
What I can tell you is that 80%+ of the time, you’re usually better off just using an online service to get it set up. They have ways of providing support built-in to their sites, and sometimes they have people ready to help you or answer your questions if needed.
The only time you might really consider doing it yourself is if you really know what you’re doing, and have very simple needs for this business entity.
Something else you might want to consider is that whatever you do, you can usually FIX IT LATER if you mess things up. So keep that in mind. And if you ever do need to fix things, you’d better fix them as quickly as you can before it’s too late.
A final tip to consider if you have any questions about taxes, privacy, and protection: You should get educated about these things so that you know what you’re doing and how to get maximum advantage for yourself and your business.
Going to the right seminars and having the right professionals on your team are integral. For example, you may want to consult with your qualified, real estate investor-friendly CPA before (or after) forming your entity. Then have a strategy and plan to legally claim every deduction you can.
Keeping Your LLC or Corporation
Congratulations! Now that you’ve formed your entity, you should know that you’ll need to consistently do certain things to keep it active and legal.
To begin, you’ll need to pay your yearly fees to the state. I know, what a shocker, right? This is another form of revenue for your state, and those fees can usually vary between $50-$800 per year. California has those high fees. Again, what a shocker. But you’ll need to know what these fees are, and be ready to pay them on time. Every year.
In addition to that, certain states have other fees and taxes, and those are usually tied in to your business’ revenue. Make more, and your state may want more. So be sure to familiarize yourself with these taxes and regulations for your chosen state.
Finally, there are usually requirements for filing your yearly paperwork for your entity. Make sure you know what these are and follow them, and you’ll be good.
What About a Bank Account or EIN Number?
Depending on what you do with your business, you may or may not need an EIN Number or bank account… But you will need an EIN Number if you DO get a bank account! To get an EIN Number is simple – just Google how to do it. HINT: You’ll need to fill out an IRS SS-4 Form.
You’ll want to have a bank account so that you can use it for your business and wisely separate your business expenses from your personal ones. So you’d simply need to bring your newly-created business paperwork with you, along with your EIN Number to the bank, and they’ll be more than happy to help you from there. TIP: It’s best to print out the EIN Number paper from the IRS and just take that with you to the bank.
Wow! Who knew that learning how to set up your very own LLC or Corporation could be so much FUN, let alone sexy, right?
But there you have it – you now know exactly what to do to get yourself started, right now – TODAY. And before you know it, you’ll be happily signing those contracts with the name of your entity and you as the agent. Look at YOU, big ballin’ and wearing your big-boy (or girl) pants! Did I mention that you’ll sleep better at nights, knowing that you have protection? Yeah, that’s a positive side-effect.
So now you have no excuse not to get started with your real estate investing. What are you waiting for? Go ahead and set up your Corporation or LLC TODAY, so you can start cashing those big checks tomorrow!
And I’ll see you at the bank.
Until Next Time,
Copyright 2020 Tony Pearl | All Rights Reserved
BIO: Tony Pearl is a writer, speaker, copywriter, coach, mentor, marketer, 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!
Before you continue, I’d like to first direct you to Part One of this article.
It’s titled, “The Joy of Text: How to Get Deals With Your Cell Phone”
(Click that link to read it if you haven’t already).
In THAT article, we discussed WHY you must use the greatest tool you have available to you now to easily and quickly contact all the sellers of houses that you want to contact, for FREE. I also gave you a quick and extremely effective text “conversation” you can use to establish contact, introduce yourself, find out their name, if the house is still available, and if they’re the owner or not.
Do you remember the reason WHY we want to first TEXT a seller, rather than call them? It’s because hardly anyone is answering their phone when an unfamiliar number calls them. Do YOU answer your phone all the time if it’s a number you don’t recognize? I didn’t think so. Of course, you can always hit them with the 1-2 punch, where you first call, THEN text when they don’t answer if you want to, and if you have the time. But that’s up to you.
So, in THIS article, we’re going to discuss the other side of things: What NOT to do when texting a seller. Note that these ideas will still translate over to what not to do when texting with a buyer, private lender, or anyone you want to do business with. Just apply a little common sense & you’ll be fine.
If you follow this advice here, you’ll avoid making the stupid mistakes most newbies make. You’ll avoid losing out on those deals you would have lost if you had not known what you’re about to learn. Ok? Ok! Here we go…
Before We Begin, Here’s a Funny Video For You!
Warning!: Profanity & drug use in here. But it’s funny as hell and introduces some CONTEXT about how easily Text Messages can be misinterpreted, even among friends. Enjoy this!
What NOT To Do in a Text Conversation
Now that you have some ideas about how to initiate a text conversation, it’s vitally important to know what NOT to do, right? And in order to keep this fun and light, while at the same time sharing these very valuable tips with you, I’ve made this handy…
TOP TEN LIST of What NOT to Do When Texting!
10. Don’t Have Full Conversations Via Text. To begin, let me just say that 99% of the time, you should AVOID having full conversations by text if you can possibly help it. You will be taking away your greatest weapon if you do that. I’ll get to that in a moment. Of course, there are occasionally going to be people who insist on only communicating via text due to whatever beliefs or limitations they may have (such as being at work and not able to talk at the time). If that’s all they can do that’s all they can do, but do the BEST you can to avoid that from happening.
Instead, keep your texts as BRIEF as possible. Remember that I recommend having only 3-5 “volleys” of messages before you take it to the next level: Getting them on the phone.
9. Do NOT Try to “Sell” Them Via Text. Don’t tell them about your fancy programs and why they’re so great or why they should do them with you. They won’t get it, and they won’t care. At least not yet. Remember that you first have to qualify them, and that’s best done on the PHONE, not by text.
8. Don’t Answer All Their Questions. Usually, the more more questions they ask, the more they’re trying to pre screen you, as opposed to the other way around (the way it should be). Instead, do your best to get them on the phone as quickly as possible so that you can have a proper conversation. Tell them “I just have a couple quick questions to ask you, and it’s best to do that over the phone. When do you have a minute?”
7. Don’t Over-Complicate Things! Always remember that a confused mind says NO. We don’t get paid with “no.” So don’t confuse people. Keep it SIMPLE!
6. Don’t say “Lease Purchase.” Remember that 99% of the time, you’re usually texting someone who just owns a house and doesn’t understand WTF a ‘lease purchase’ is in the first place! While I understand the need to pre-screen someone to find out if they’d be open to doing something a bit creative, it’s usually best to avoid doing that here.
But if you feel you have to, you can instead ask if they’d consider “renting for a little while and then selling?” Again, I’d recommend that you reserve doing that when you have them on the phone.
5. Don’t say “Owner Financing.” Pretty much the same thing that was just said in the previous paragraph will also apply here. Most sellers really don’t understand the many benefits of how owner financing works, and they’re usually brainwashed by society to believe that they have to or only want all their money when they close on the sale of their house.
For that reason, it’s best to not mention these words in a text message, and instead reserve discussing this possibility on the phone. But again, if you feel you must, consider using these words instead: “Would you consider taking payments for a little while until I can get you cashed out?” You’ll find that those words work a lot better. 🙂
4. Don’t Write Long, Drawn-Out Messages. I’ve had the pleasure and honor of coaching and mentoring a lot of people. When they finally realize that reaching prospects by text messaging freakin’ WORKS to get people to respond and engage with them, they do something understandable: They take massive ACTION.
But then the student tells me that they’re having problems, or that some people aren’t responding to their messages. So when I ask them to share what they’re texting, I can quickly see WHY they’re not getting good results…
It’s because they’re violating the rules! They’re writing long & confusing explanations of everything they’re trying to do. That’s a MAJOR NO-NO. So instead, here’s what you SHOULD do:
Keep it Simple, just like I wrote above in #7.
3. Don’t Tell Them Too Much. If you’re trying to explain or write too much by text, it hardly ever works out well.
Instead, ASK simple QUESTIONS. Very brief and to the point. For example, “Is your house still available?” “What’s your name?” “Are you the owner?” “Can you talk today, or would tomorrow be better?”
I’m telling you, by asking simple questions, the prospect is practically compelled to answer. This leads to more engagement, which leads to more rapport, which leads to more chances of success! Try it, you’ll see.
2. Don’t Close By Text. I’m not saying that it’s impossible to close someone by text message, but chances are really stacked against you…especially in the beginning. The more you do this, the better you get. But as a general rule, you’re much better off to OPEN by text, and CLOSE by phone.
1. Don’t Think That Someone Can Understand Your Tonality. Did you watch that video of the 2 friends texting each other on this page? Then you’ll fully understand what I’m saying here. Words can be easily misunderstood when texting! And there’s no way someone can “hear” your tonality!
For THIS AND ALL the reasons I’ve listed here, HERE’S the BIG TAKEAWAY from this post…
DO use text messages to establish contact with someone, then OPEN and warm them up a bit so that you can get them on the phone to have a PROPER conversation.
Once you have them on the phone, you can use the magic & powerful weapon you have: Your VOICE! And if you’ve been reading my articles, posts, and various writings, you know I talk about how to properly use your voice a lot.
Now kindly allow me to punch you right in the face and GIVE you the essential, proven cold text message conversation you can use when first reaching out to a seller with a house for sale. I had given this to you before, but we’re going to keep it short & sweet here, ok?
Here’s The Cold Text Message Conversation You Can Model:
YOU: “Hi! Is the house you’re selling at [ADDRESS] still available?”
YOU: Great! My name is YOUR NAME. What’s your name?
THEM: They reply with their name.
YOU: Nice to meet you, NAME. Are you the owner?
THEM: Yes (or no).
YOU: Ok. When you do have 5 minutes to talk?
THEM: They answer
…and you set a time to talk!
When you get them on the phone, guess what you do? Get the Lead Property Information Sheet filled out!
Using a VA? No problem. Set an appointment for them to follow up for you if you like.
So there you have it! Now that you know what NOT to do and what TO DO instead, I’ll leave it up to you TO DO what should come next: Take the ACTION you need to take by texting people today.
Want An EASIER Way to Text?
The more you do this, the easier it gets, right? And I predict it won’t be long before you’re having success and doing deals! I also predict it won’t be long before your thumbs get tired of texting people from your phone, essentially saying the same thing over & over.
But what if there was an easier way to text and engage people? Lucky for you, there IS an easier way!
It’s call the “Real Estate Prospector,” and it’s a very powerful software that’s easy to use. This software saves you HUGE chunks of time and frustration.
The software will make calls, send personalized text messages AND personalized email messages for you – in ANY combination… One at a time or however many you want to send out at once!
Best of all, it gets you RESULTS!
Thanks for reading. I sincerely hope you not only enjoyed reading this powerful article, but I also hope you heed this advice and put it to good use right away. I can practically GUARANTEE you that if you DO, your investing life will never be the same, because you’ll be having quality conversations and doing deals before you know it.
Do me a favor – let me know what you thought of this article in the space provided below. And let me know how this works for you as soon as you can! 🙂
Until Next Time,
Copyright 2019-20 Tony Pearl | All Rights Reserved
IN This Post, I’d like to show you something.
Would you like to see it?
I’ll be happy to show it to you in a moment, but before I do, I’d first like to say that after you’ve seen this, I’m going to ask you another question.
Now, what you’re about to see is NOT about real estate. Not exactly. But it DOES have to do with everything that will truly determine how you do in your real estate investing business. More than that, it has to do with your LIFE.
You see, so many people are just walking around in a trance. Although they see things around them in their environment, they very rarely (if ever) truly SEE what’s right in front of them. The opportunities. The possibilities. The people they can help.
Most everyone these days is walking around staring at these stupid little tiny screens, rather than seeing what’s all around them in the real world.
At the time I’m writing this, we’re in the last few weeks of 2019. Christmas is coming, and 2020 is right behind that.
But what you’re about to watch is “evergreen.” It’s timeless.
So I have a very powerful video I’d really like to show you now. It’s by one of my favorite YouTube artists, Prince EA.
If you’ve been on this site for any length of time, you’ve probably already seen his work. Hopefully you appreciate it as much as I do.
The title of this video is “Before 2020, Watch This…”
And THIS should make you think…
And now for the question I promised to ask you:
Did you SEE it?
And how did this change YOUR Vision?
Remember: “Eyes that LOOK are common. But eyes that can truly SEE… are rare.”
I SEE a very bright future for YOU, my friend.
Can you see it, too? Will you join me?
To Your Success,
“The Wake Up Call”
This is one of the Most Compelling Speeches you’ll ever see.
And it’s delivered by one of my role models, Dwayne Johnson, aka “The Rock.”
In this captivating video, he shares his story, how he approaches each massive project he does, and what keeps him focused and motivated every single time.
I don’t know about you, but there’s something very powerful here that I can relate to very well.
Take a look at this & I believe you’ll feel the same…
WARNING! There’s some profanity here, so either put your headphones in or kick the kids out of the room.
…Or just don’t watch it if your ears are too sensitive.
Pretty awesome, right?!!
Now I have a question for you: How can YOU use this in your life? How can you use this in your BUSINESS?
Do you have a point (or two) in your life that you can recall when your “back was up against the wall?”
Was that a long time ago, or more recent? (Maybe even right now?)
Remember what you’ve been through in your life. How did (or have) you battle through your adversities, your challenges?
How have you handled your demons?
I’ll share something personal with you. Every time I’m facing a hard life challenge, I remember the lean years – when I barely had enough money to put gas in the car or food on the table… Times when I wondered how I was going to make the rent or pay my bills.
I remember the pain & the shame of leaving a great job I had and not being sure if I could provide for my pregnant wife and 8 month-old son (back in 1999).
I remember those painful moments (those are just a couple. There’s a lot more, believe me), and I remember having to dig deep to find ways to “make it work.” Even though I didn’t have all the answers at the time or know everything about what had to be done, I just knew that I had powerful enough motivating factors that essentially compelled me to do whatever the f*** I had to do to get shit done.
And I use those memories to motivate me to get my shit together & get it done – the right way.
Can you relate? What’s your story?
Remember to always operate like you have your back to the wall. Don’t ever settle for just ‘being comfortable,’ when you’re capable of SO much more.
I challenge you. Now what are you gonna do about it??
Thanks for watching & reading.
Now if you’ll excuse me, I’ve got to go hit the gym! 🙂
Here’s to YOUR success,
Happy Thanksgiving 2019!
Hey, before we get too busy with our family, friends, food, and football tomorrow, I just wanted to take a quick break from all this cooking & cleaning to say a couple quick things…
First, I APPRECIATE YOU!
As we give thanks for the many blessings we have in our lives for Thanksgiving, I want you to know that YOU (and all my students, both present and past) are HIGH on my list of the things & people I’m truly grateful to have in my life.
And not just for Thanksgiving, but for every day of the year.
So…what are you doing for Thanksgiving? Going anywhere? Hosting the party at your house? Who are you looking forward to seeing? Who do you wish would (or wouldn’t lol) come?
And do you have any special Thanksgiving or holiday recipes to share? Don’t be shy!
This year, we’re hosting a group of about 16-20 people (as usual), and they’re all my fiance’s family (as usual).
It seems like no matter HOW much food we get, they always manage to eat. Every. Bite.
It reminds me of that scene from “The Hobbit…”
In a minute, I’ve got to get back to making a few of my special dishes.
This year, I’m making my highly-requested ceviche, the salmon, and the potato salad, in addition to assisting with the turkey. That’s right – your favorite mentor can cook, too!
Can you believe a few guests we have coming said that they don’t like turkey? If only I could un-invite some people lol! (can’t do it… in-laws. Uugh.)
So whatever you have going on, I hope you enjoy it to the MAX!
Be sure to take a moment to go around the table and have everyone share what they’re thankful for this year.
Then gorge yourself & pass out in a turkey-induced coma in front of the game. I hear that’s a good thing.
Just be sure to be careful about talking politics at the table. I hear that’s a bad thing (especially if they watch CNN hahaha).
Thank you for being a part of my life. I truly DO appreciate YOU!
From my family to yours: Happy Thanksgiving!
With a big hug,