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!
P.S. UPDATE: If you’ve read this far, I have a SUPER treat for you!
I recently created a powerful new TOOL you can use to easily get to the bottom line, right on the phone, with a seller. It’s a Cost to Sell Net Sheet Script Form, and you can have access to it for FREE, right HERE. Go check that out now!
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:
The ONLY possible disadvantage of using Land Trusts is that many/most so-called "Professionals" don't quite fully understand them. This is due to the fact that they don't spend much time at all on trusts in law school, real estate classes, etc.
Most of these "professionals" (real estate attorneys, title companies, agents, brokers, etc.) are not used to doing business in these entities, and they'll attempt to steer you towards using something that's 'usual and customary,' such as an LLC.
Attorneys are notorious for doing this, probably because they get PAID to set these entities up for you, sometimes on a recurring basis!
Pro Tip: Whenever someone asks you WHY you want to use a Land Trust, just reply with this magic bullet reason:
"For ESTATE PLANNING Purposes."
That will usually shut them up. Plus it sounds cool! 🙂
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?
The Main Parties/Entities You'll Need in Order to Form a Trust:
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 Privacy & 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 (Optional). 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?
This is different than REAL Property (aka Real Estate).
Most real estate is owned by an individual or a corporation, such as an LLC. Attorneys love that, because the owner is easily able to be found...and sued. But when a TRUST owns the real estate, the beneficiary owns that trust.
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.
Don't feel bad if it takes you a little while to fully comprehend how these things (Trusts) work. As the saying goes, "If it was easy, everyone would be doing it!"
And like anything else, it's only difficult the first few times you do it.
Do You Have a Land Trust Situation or Emergency?
Need HELP Forming or Creating a Land Trust?
Whether this is for...
I can help!
As a Certified Trust Expert, I've seen many situations where I've personally helped people to make money, save (a ton of) money, saved their a$$ by helping them KEEP a property, or just helped them sleep at night by having their property protected by the right land trust.
If this describes YOU, and you need help - or even if you're just a bit curious about a particular situation, LET'S TALK!
Just reach out to me by sending an email with the Subject Line:
"Land Trust Help" and let me know a bit about what's going on.
I'll reply and we'll go from there to see if/how I can help. Sound good?
Here, I'll even make it easy for you. Just click the button below...
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!
P.S. Ok, I couldn’t help myself. Here’s an example LOI you can use as a template for yourself below….
IMPORTANT DISCLAIMER NOTE: Ron doesn’t like to use these LOIs, so please know that this package is being provided by me as an additional option and resource for you to use. Please disregard this package if you wish to stick to the program as it’s designed.
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 #
UPDATE!! Ok, due to popular demand and lots of arm-twisting, I’ve changed my mind and made Another, More Complete sample Letter Of Intent Package for you to use as an option.
Use the link below to get access, and Be Sure To Read The Full Instructions!
Letter Of Intent To Purchase Package (access via Google Docs):
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!
The MOST Important Thing You MUST Do to Be Successful
Knowledge. Training. Networking. Marketing. Meeting people. Studying. Preparing. Wondering & worrying about 'what if,' etc.
Yes, these are all important things to do. And they're all necessary.
But if someone held a gun to my head and told me to name the #1 MOST Important Activity that MUST be done in order to bring you success in this real estate investing business, I'd have to say this...
The MOST Important thing for you to do is...
Talk to Sellers.
The SECOND most important thing would have to be to Make Offers.
But that's a subject for another day.
You could spend a TON of time doing things like...
But NOTHING else even comes close to being AS IMPORTANT AS talking to sellers.
"If You Ain't Talking to People,
You Ain't Gonna Make No Money."
Listen, it's a very, very simple process. Please don't complicate things.
Here's How it Works...
Rinse & Repeat to insure your success.
If you just suck at talking to people, don't worry. Do it anyway. Gauge how you're doing and look to constantly improve every time you talk to someone. You won't suck for long.
Wait...what's that? You don't know what to say? Sure you do. Stop complicating things. All you've got to do is go grab a fresh Property Information Sheet, a phone & a pen.
Then, "just pick up the phone & start dialing..." (see below)
Have a nice, friendly conversation with the seller. Ask the questions you need to ask so that you get the information you need. See if you'll be a good fit for each other, and set up whatever the next step needs to be.
And if you really feel like you need a script, just look for the tools I've provided here on this site for you. And there's more coming, so stay tuned!
In the meantime, here's a little motivation/inspiration to Prove My Point, courtesy of one of the most successful guys on Wall Street, Jordan Belfort, aka The "Wolf of Wall Street"
WARNING!: There's quite a bit of delicious profanity in this video. So if your ears are sensitive, you have small children running around close by, or if you're the type of person who is easily offended, don't watch this. Otherwise...this is awesome!!! (Your part starts at 2:20)
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.
How To Identify Them:? ???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. OPTIONALLY: If you had a good conversation & think there may be a reason to follow up later, you can send them some information (or use the Fast Offer Generator) and follow up in a few weeks if you like.
Look, if you were to continue trying to "sell" them on why they should sell their house to you with owner financing, on terms, or on a lease purchase, you're wasting your time!! If you were selling anything else, this would be like trying to shove your product or service down the throat of someone who's not in the market to buy what you have, or is not qualified to do so, or can't afford it, etc. For example, if you sold women's shoes, it would be like you trying to sell a pair of fashionable pumps to a straight man with no wife and no kids (and no, he doesn't dress "funny" on the weekends). In other words, he's NOT qualified nor interested. So don't waste your time!
Got it? Good, now let's look at the exact opposite...
2. The Fully-Motivated, Qualified, and Interested PROSPECT:
These are God’s gift! The "low-hanging fruit," as Ron likes to say. 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.
How To Identify Them: 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. Make an appointment to 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!
Listen, THESE are the deals we're looking for! And you'd better have your act together, because these situations are rare - they don't come up often, especially in a hot seller's market. They're definitely out there, but not as often as we'd like. So when you find someone like this, GO out there and GET IT! Okee-dokey?
The next one is kind of what like a wife will give her husband to do over the weekend...
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?
How To Identify Them: These people say things like, “I don’t know what to do,” “How does that work?” and “How can you help me?” But - get this - they may also say things like, "Let me think about it," "Let me talk to my wife/husband," and "Sounds interesting...Can you send me some more information?"
How To Deal With Them: Use the right psychology & sales tactics to help them understand that they need your solutions. Don't beg! Sharpen your sales skills. You’ll probably need to follow up. Scratch that - you'll definitely need to follow up!
One of Your First Goals/Missions: Get them to make you the offer by asking questions. Yes, I'm referring to "The Million Dollar Script." (This refers to "The Big 3," Price, Down payment, and monthly payment. Get intimately familiar with that. You can learn/practice that by using the Closing Call Script.
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!
Let me explain.
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 (it's true).
Real 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, because the competition is not skilled enough to handle them.
These people will truly justify the investment in your education, many times over.
Ask me how I know this.
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. You'll need to use the right vocal tonality and body language, while giving them the right feedback thru active listening.
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 (also known as qualifying or gathering intelligence) 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 (Suspect, Prospect, and Project), how to determine who belongs where, and why. You also learned what to do with people in each category.
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 2017-19 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!
Here is a handy list of websites to use when searching for
For Sale By Owner listings!
In this Post, I have a PHENOMENAL set of resources to share with you. Here, you’ll have a TON of places you can quickly go to find all the For Sale By Owner houses you can handle. I’m also giving you some great Pro Tips you can use to get you going FAST.
One of the things I always advocate for my students is for you to start off by gathering all the leads of FSBO houses you can for FREE or for CHEAP. Use these to practice and develop the essential skills you need in this business. Take the profits from the first deal(s) you do to begin to pay for the tools that will make your life easier. And invest in the marketing to help you scale your business up. In other words, I suggest that you bootstrap your business – have it pay for itself so that you can grow as it does. This will help you avoid throwing good money after bad at things & wondering where all your money went. Just trying to look out for you. Sound good? Ok…
Here’s How to Use all This Info:
First, you’ll check out the list of websites I provide for you below.
You’ll want to open up the Lead Tracking Spreadsheet to stay organized & track all the leads you gather here.
If you have a VA, you can forward these FSBO house leads to your VA for them to contact.
If you don’t have a VA, or if you want to get a JUMP-START on things, then you’ll want to open the PI Lead Script in another tab in your browser and be ready to contact the homeowners of the houses you’ll easily find on this list.
If they look decent, you’ll conduct a Closing Call and seek to make an appointment to go buy their house. If not, you can either “Whack ’em” or follow up later (sending materials/offers is optional).
Ok, are you ready for the list? Great! Here we go…
THIS LIST WAS RECENTLY UPDATED AS OF OCTOBER 2019!
Old, outdated sites were removed/replaced.
The List of FSBO Websites:
That list should keep you busy for a while. Remember to use the proper search features that most of the websites on this list have.
Target the area, the number of bedrooms & bathrooms, and you can play around with the price ranges if you like.
We’re looking for at least 3+ bedrooms & 2+ bathrooms… and I suggest at least 1,000 square feet.
Be sure to TRACK your leads somehow. I suggest just using the Lead Tracking Sheet I provide.
Good luck & have fun!
PRO TIP: Ok, you COULD work yourself silly & go to all those sites to manually search for everything…OR you could take a shortcut…
Wait…What If There Was An EASIER Way?
There is! And here’s your shortcut (use this): https://yourrealestatecourse.com/secret
That site will hand-feed you leads every single day.
AND you’ll be able to go back as far as 3 months to find all the possible FSBO leads in your chosen area.
AND you can target the specifics of what you’re looking for (beds, baths, sq. ft., price, etc.)
AND there’s a FREE 14 Day Trial just to check it out.
So why are you still reading this? Go to this link now & get started!
PRO TIP: I Can’t Resist sharing the Good Stuff with you! So here’s another KILLER TIP I have for you…
Be sure to take a look at the FOR RENT listings on sites. And when you’re driving around.
Why rentals? Because many times, these people would rather SELL their house, but they just haven’t been able to do so yet for whatever reason. PLUS, they’re not living in the house, so they’re not as inclined to be as emotionally attached or have the same circumstances as most home sellers.
These could be the perfect fit for them to sell on terms. Or Lease Purchase the property to you.
With that in mind, I have another GREAT RESOURCE to find these rentals automatically every day!
Click HERE to go to another Secret Site for For RENT By Owner listings!
And with that, you now have more than enough to keep you busy and have your machine fed for a WHILE.
Go check these resources out, and let’s do some deals!