Why Do Most Beginners Fail at Real Estate Investing?

Author: theinvestortoday / Category: Articles

There are tons of new people who hear about the goldmine of real estate each and every day and then decide to give it a try. Unfortunately, for about 90% of people who take a real estate investment course, they will leave having never purchased a property. Why is it that the numbers are so staggering?

There are a few reasons for the failures

Firstly, not everyone has the right skill set going in. There are subtle techniques like negotiation and impeccable communication skills that typically get glossed right over by most courses. However, they fail in comparison to the biggest reason. Let’s look at the 3 biggest reasons and break them down.

  1. Unrealistic expectations
  2. Commission breath
  3. Knowledge and skills

Marketing Hype Creates All Kinds of Problems

Being a great investor requires that you harness the ability to create marketing hype around your properties. For example, our company can get 20 people to a lease option property in a down market with 5 homes for sale or more on every block. Most real estate courses are sold with the same kind of marketing hype. The problem with that is that it can lead to unsubstantiated claims.

In order to sell the product, it has to protest to provide all the easy answers. Marketing 101 is to identify your target market’s emotional triggers and then state reasons why it can fulfill those. The hype has a really big downside though and that is that it leads to unrealistic expectations.

The single biggest reason newbies fail is because they believe it will be easier than it is. At the same time, it’s not the hardest thing either. The difficulty of real estate investing probably falls somewhere in the middle. At the same time, if a person goes out with the anticipation that it will be really easy and that sellers are just waiting to earn them millions, they end up disappointed after just a few attempts.

What is Commission Breath All About?

When people get paid as a result of their efforts, it’s honestly difficult to trust them sometimes. Used car salesmen are often considered as shady as they come. When you go and meet with a homeowner, sometimes they resist you simply on the basis that they don’t trust your intentions. People can spot commission breath a mile away and even if everything else about your deal makes sense, you can and will still get sellers who will push you away. Understand that this will happen and only work with sellers who want your help. You can’t force your help on anyone so just focus on where it’s wanted and then give it to the best of your ability when it’s needed.

Sometimes They Just Don’t Know Enough

Many new investors just don’t have the ability to pull of the deal they are trying to do. Sometimes it’s because what they are trying is more complicated than they have been taught but most often, it’s because their current understanding of how to do a deal is flawed. For example, how many courses talk about the fact that your tenants aren’t going to pay on time all the time every time? It doesn’t exactly sell the dream but it’s a reality. Having the skills to fix problems when it doesn’t go as planned will go a long way.

Let’s get to the most important part.

How do you fix these problems before they happen?

Unrealistic expectations

You will do yourself a great service to expect some problems on the way. That doesn’t mean you should put negativity out into the world and go into it with a bad attitude. Rather, just remember that there are always complications involved in putting a deal and learn to expect them enough so that you can quickly solve them. It’s not about the problems that come up but what you do to solve them.

Commission breath

If a seller naturally distrusts you, that’s normal. Don’t take it personally. Learn to listen to people. I mean really listen to people. Work with people who want your help the most and focus on providing relief to their problems. If you focus on that, you’ll get your pay in the end. It’s extremely ironic that the less you worry about your payday and the more sure you are that it will come, the easier it is. Once you’re less focused on needing the individual deal, the more you can focus on helping where possible.

Knowledge and skill set

You can never have too much knowledge in real estate. The single best place to learn is at your local real estate investment club. Don’t get caught up though in following other newbies at the club. Find out first who is successful there and learn from those individuals. You are best served by doing what they do. Read as much as you can. If you can’t afford to buy low priced real estate courses like ours, go to your local library and read for free. Do your best to learn to separate marketing hype from real information and focus on the latter.

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Top Things to Consider If Hiring a Property Manager Is Right for You:

Author: theinvestortoday / Category: Articles

It’s not an uncommon thought to cross any entrepreneurs mind to lease or rent out a home to make some extra money on the side (especially in the current state of the economy). There’s good reason to, of course. As always, there is still the age old dilemma of time versus money.

If you are seeking other ventures or planning on expanding to renting out other properties, taking on the role of landlord can be a bit daunting of a task. Unforeseeable maintenance, screening tenants, uncomfortable rent collection, etc. can end up taking up more of your time and money than you had originally anticipated.

If someone is really considering renting out their property as an investment, unless this one property is their soul focus, enlisting a property manager can be a wildly more effective use of your time and money. If you are already sent down another career path, renting out your property can be a great way to make some extra money and enlisting a property manager can ensure that it is taken care of.

Top Things to Consider If Hiring a Property Manager Is Right for You:

  • What level of maintenance experience do you have? As a property manager, you will need to be available to your tenants for maintaining the property. This includes dealing with plumbing issues, electrical outlets, lighting, and anything that can be hazardous to the lifestyle of your tenants and taken care of in a timely manner.
  • Are you willing to deal with the awkwardness of rent? If a tenant is late on rent, this means you’re late on getting paid and if it’s not taken care of can lead to a poor relationship with the tenant. Finding the right balance of authority and consistency is important to this aspect. Professional property managers have created systems to make this process bearable and efficient.
  • Will you be able to learn, keep up with, and comply with housing regulations? This takes quite a bit of research to learn and then requires a consistent follow up to stay up-to-date with exactly the law is stating. Professional property managers have the time and staffing to manage this.
  • Do you have the time? This cannot be stressed enough. Especially if this is only one of your potential investments, this can take more time than anticipated. With how sporadic life occurs for tenants (rough weather damaging the home, faucets not working, etc.), the changing of housing regulations, and not to mention whatever is going on in your own life this can easily become a full time effort.

Perhaps the smartest business move someone can make with capitalizing on their property is to hire someone else who can help carry the burden. Just as when a business grows more employees become essential, so does renting out your home or property become a task not easily taken on by one.

 

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A Deal in Your First 30 Days – Reality or Fantasy?

Author: theinvestortoday / Category: Articles

Okay this one goes out to all my newbie brother and sisters who may be struggling with trying to get their first deal done. I want to show you how it’s not really that hard and you can easily get a deal done in 30 days from when you start. Let’s first understand what might be holding them back.

The main reasons people don’t do a deal:

1. Lack of knowledge

This is a big one that holds new real estate investors back. Too often we think we have to learn how to do a deal from a $5000 seminar. Since many can’t afford that, they just never seek out the knowledge. If you don’t know how, all the motivation in the world won’t cover for it.

Solution

The knowledge is out there to be had. I promise you that there is no more information contained in these seminars than you would get in a book for free at your local library and/or by reading online. In fact, the library has so much free information on the basics that you don’t even need to worry about ever stepping into an overpriced seminar. That’s why we priced our courses at affordable prices. For more information visit these links.
http://www.theinvestortoday.com/paid-courses/how-to-short-sale-course/
http://www.theinvestortoday.com/paid-courses/how-to-rent-to-own-or-lease-option-course/
http://www.theinvestortoday.com/paid-courses/how-to-rent-to-own-or-lease-option-course/
http://www.theinvestortoday.com/

Another very cost effective resource is your local real estate investment club. Don’t be afraid to ask your fellow seasoned investors what is working for them. It will usually cost money to attend but there is nowhere on the planet you’ll get better more realistic and practical advice from.

2. Analysis Paralysis

Sometimes we’re just so worried about whether or not it’s a deal, we just never act. This is especially true when you’re starting out since you don’t really know what the average house price in a certain area is valued at or you have no real basis for estimating repairs in a home. This can lead to not acting since you don’t really know whether or not you’ve really struck gold.

Solution

Don’t even worry about learning the market. In fact, you don’t need to learn any market. Learn to rely on the professionals who specialize the most in that area. However, I don’t mean realtors most times. Instead, use your buyers list to tell you what they’d be willing to pay for a property. If the number is higher than what you can negotiate your deal at, you’ve got a deal. If that’s not an option, you can always look at comparable sales through a real estate agent but you will usually have to butter them up to quickly provide them for you. For contracting repairs, getting professional estimates are free. The rest is simple math.

If an investor is willing to pay you $100k for a property as is, you need to get it at $90k or less bare minimum. If you are relying on an agent for comparables, say a property similar to yours in mint condition in that area retails for $100k and your contractor has told you that you have $15k worth of repairs, you need to get that property for $75-80k or lower in order for you to have some leeway.

3. No Buyers

Of course, step 2 doesn’t work if you don’t have any buyers to show your properties to. Most investors have no real buyers to show their properties to and as a result, they just don’t close anything. In fact, I have seen many of these people that are great at getting deals under contract but no one ever told them how insanely important it is to have a targeted list of buyers.

Solution

Always be building your buyers list. Attend real estate seminars, talk to private lenders (since often they are buyers as well), check out title companies and closing lawyers, advertise properties online, network at other professional meetings, and attend new home buying open houses. Make sure when you attend the open houses that you look for buyers who are attempting to buy 2-3 properties or more, since they won’t be retail buyers. Attending open houses on other fixer uppers works wonders as well since these are your ideal target market.

4. No Action and/or No Belief in Themselves

The biggest reason though is they’re just afraid and they don’t act as a consequence. For all the newbie investors I’ve met at clubs struggling to get a deal done, I can always ask one simple question. “How much time do you spend calling FSBO ads or marketing your properties in an average week?” Embarrassed, they will often round up a few hours from the minimal hours it is closer to in reality.

Solution

You can’t pay someone else to do your push ups for you.  At some point, you have to step up and do what’s necessary. If you work at it 40 hours a week with laser sharp focus, it’s impossible to not do a deal. There are just too many deals to be had right now. Doing a deal does not involve talking about real estate investing with others, even reading online, spending time at discussion forums, or overly networking. Get to it and hit the phones. Get a deal as fast as possible, find some buyers as fast a possible and settle on a good one, repeat this process over and over. If you’re dragging any of that out, you’re not doing it right.

 

If you’re willing to sort out all the common newbie investor issues, your first deal can be done in 30 days, if that. You can’t fail if you don’t accept failure. Happy deal making!

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Graduating to Bigger Real Estate Investments – The World of Commercial Investing

Author: theinvestortoday / Category: Articles

Sorry everyone, I’ve been busier than normal these days. As I’ve often said, I’m a real estate investor, not a guru. Yes that means I’ve been busy actually neck deep in investments and haven’t been able to update the site as much as I should.

I’ve always kind of thought that when you hit the mark of being able to buy multiple homes at once or large apartment and/or commercial buildings with multiple units that you’ve finally “made it” in real estate investing. To some degree, that is true.

Firstly, here are some of the reasons why you want to eventually reach that point.

  • More money (obviously)
  • Commercial/Multi-Residential investors are more sophisticated. Since they aren’t emotionally attached to their investment properties, you can get right to talking about money and numbers.
  • It’s quite common for them to hold financing. In fact, they might say no the occasional time but they will rarely look at you like “whatchu talkin’ ‘bout Willis?”

However, in order to reach that point of being a bigger investor, there are some things you’re going to need to do to reach that point.

  • Firstly, when dealing with larger investors, it has been my experience, that there is a higher level of sophistication and know-how required. For example, you can’t get by with just “we buy houses” signs because your phone just won’t ring.
  • Secondly, they know all about real estate. You can’t fake like you know something. You have to already know your contracts in and out or it will show.
  • Realtors matter more because so much goes through them in that arena and there are so few investments by comparison. You don’t necessarily have to get a deal with a real estate agent but you certainly don’t want to earn a bad reputation with any because you screwed up a deal because the other owners will find out.

The good news is that a lot of the same techniques work. For example, with a few tweaks in the language, you can easily change a regular lease option contract into a master lease-option that has domain over the entire apartment building. You can short sale any property that is in distress, including a large multi-residential property or a commercial property.

Our personal preference is to deal with apartment buildings of 40 units are greater. The specific reason for the 40 units or greater is that for whatever reason, the utility costs seem to be very similar regardless of a building’s size but averaged out per unit, it is much higher in a small building. Obviously, the more real estate cash flow the better and bigger units generally provide that. Unfortunately, I don’t have time to do a full complete in depth study on how to buy discounted apartment buildings but I’d like to discuss a basic outline for how I buy a discounted apartment building and sell it for large profits.

1.       Get a database first of every single apartment owner in your geographic area. There are a few companies that sell lists, you can also spend a day or two at the county courthouse and pull titles or in some places you may need to visit your city hall. I once spent 3 days pulling titles for a large database so take some time and get a complete list.

2.       The second step is to locate a motivated apartment seller. Unfortunately, they aren’t going to call from your residential marketing materials. What has worked for me is to send them a one page letter that is personally addressed to them which lets them know you are an investor who is looking to purchase an apartment building in the area. Microsoft mail merge has a feature where you can input a field like the person’s name and address and each time it will print it with the apartment building owner’s address. Because there is going to be a certain level of sophistication required, you’ll need a website and promo materials at the very least that look professionally done and you’ll want some of that info listed at the bottom of your letter. I have gotten these made on odesk and/or freelancer for less than $50. If you have earned your weight in residential property, this is just a drop in the bucket. The seller will probably check into your information before they even call you so it has to make you look “legit”.

3.       Set up an appointment with your investors and gauge their level of motivation. Obviously the more motivated the better. The same questions of “why are you selling it” and “what are you going to do if it doesn’t sell” work here. Once the owner reveals their level of motivation, there is still due diligence required. I recommend asking them to see it so that you can make an evaluation before you can come up with any sort of offer. They always agree.

4.       Analyze the property in full detail. You don’t want to end up with a lemon that will be as much trouble as it was for the last owner. Money isn’t worth stressing yourself out over. Take notes of everything you find in the apartment broken down by area. For instance, I first take notes of the common areas, then individual apartments that I view, then lastly the mechanical areas. I also speak to the tenants to gauge their interest. I then do a formal analysis of the market and the local area the building is in. This is important for two reasons, one so you are properly protected and two because the negatives will help justify a better negotiation with the seller. They rarely have rebuttals for someone who is as well prepared as you’re going to be.

5.       Make a complete list of all the problems firstly with the building and then with the area on the left half of a page in point form.  On the right half, put the potential solutions. Every problem can be solved by I look firstly for the “low hanging fruit”. For instance, one building I was just looking at this week, the management team was Macedonian and didn’t speak English. However, there were no Macedonians in the area so their closing rate on showing apartments was just atrocious. That’s what I call the low hanging fruit. Simply by having someone who speaks English, we can rent the place out to quality tenants. Look for things that are easy fixes like management issues, one problem tenant, don’t answer their phones, poor marketing, etc. and be more careful of bigger issues like extensive rehab, serious crime and/or drug dealing, major mechanical problems, etc. While you can still fix the latter problems, be advised that it’s not necessarily advised, especially when you’re first starting out.

6.       This is just a guideline but I try and weed out the remaining buildings that are cash flow negative and near full occupancy. They generally don’t make for good investments. Firstly, I don’t want to have to put my money into the building so if it at least sustains itself, I can at worst break even while I implement my fixes. Apartment buildings and commercial buildings have their value largely tied to their ability to produce income. This is different than a residence which is worth the same rented or not rented. Obviously, you need a detailed look at the building’s financial statements which 90% of owners will provide for you and if they cannot, then it is a management issue at the building and you still might want to verify it in your own way and then consider that investment. Secondly, our goal is to increase the value and therefore, increase our equity and take home. We cannot accomplish this if the building is full and making money since it just won’t have much more to go. If the building is half empty, and you’re getting a price where it makes just a little bit of money, you’re laughing. You will have to pass on a lot of buildings in each step but the end result should be at least one building that has a motivated owner who wants to sell to you privately, who has a half empty building with minor problems, and that building should ultimately at least break even. It’s hard to get around having no “rehab” but you can always use the little bit of cash flow to fix one unit at a time, then rent it and when you make that back, do it to another one. It adds up over time.

7.       If it passes all your checks and you believe that you can fix the problems, prepare a list of the solutions to come up with a real plan. You need to have a rough idea of the complete timeline so you can structure your offer accordingly. Some of the best buildings I have found are simply because the owner has an unreadable “for rent” sign from the hardware store that you can’t read the number from 10 feet away. That to me equals jackpot. Often, simply putting this property on craigslist, backpage, kijiji, and/or ebay classifieds, I can have a building that’s been half empty for 10 years fully rented in less than 30 days. It gets even faster if you provide incentives (one month free, free internet, or something that most apartments don’t include) for tenants who pass credit checks. Obviously rehab needs and/or crime issues might need longer periods to address. It will depend on your area but giving a free apartment to a police officer will make your crime problem disappear in a week.

8.       In each progressive step, you’re going to lose some properties for various reasons. Perhaps they weren’t motivated, or their building was too full, or maybe the rehab was just too extensive. However, if you take the time and complete this process, you’ll end up with some quality investments to pick from the litter. For each property that passes your criteria, make two offers. The idea is that if you give the owner an “either or” proposition, they are less likely to say no. You’d be surprised but you can get away with offering no money! In fact, that’s my only criteria. I often will offer the owner a 2 year master lease option agreement for a set assignable option of the current value or a regular assignable purchase contract with an insanely long close of like 1.5 years. Some will say no but some will also say yes. The way you pitch them on not giving “cash consideration” is that you offer to do the rehab work and fill the building up and can assign a value to that. I even print a receipt for them so they see it as a tangible value asset. If your marketing material makes it look like a very expensive service you provide then it appears as if you’ve given valuable consideration to that owner. In a way you have because if you don’t close, he or she will still end up with a more valuable building that’s in better shape as a result of our arrangement not to mention they’ll have increased cash flow.

While I don’t generally dabble in commercial investments (large apartment for me thanks) although I do a little, the basic outline is the same. The key that makes all this work as always is your marketing. You have to do the extra work ahead of time to make your prospect want to do business with you before you even walk in the door. If they are impressed with your marketing material, in a way, they’ll already assume you’re competent. If they assume you’re competent, then making an offer of “I’ll give you nothing and you give me the keys to your building to make it run properly” sounds like a great idea. If you don’t sound competent, well let’s just say you won’t be doing any deals. In a nutshell, that’s how you get involved with bigger and better real estate investments. Thanks for reading.

 

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Raising Private Capital – How to Raise More Money More Often

Author: theinvestortoday / Category: Articles

Raising Private Capital – How to Raise More Money More Often

There are numerous ways to do a “no money down” real estate deal. They all revolve around the same principle which is to utilize someone else’s capital, whether that source is the bank, the end buyer, or a private investor. “No money down” can be a misleading term. Instead, it really should be called “using other people’s money real estate investing”. Having said that, one of the most common ways to get a deal done is to use an end buyer’s capital. Unfortunately, most investors find it tough to raise private capital.

So why do many investors struggle with raising capital?

I’ve been to dozens of real estate investment clubs. Generally, the two most common things you’ll see investors ask for is a. investor contracts and b. to take a look at their deal. In the case of b, ask them about their deal, they give you some sort of vague description. “It’s a great deal on the East side, only XX dollars.” The problem is that it doesn’t convey the necessary information and it’s vague and untargeted. Good marketing plans are never vague and untargeted.

Compare that to a real estate professional

There are a lot of good and bad real estate agents alike but one of the reasons they become a real estate agent and join a brokerage is because of the marketing system that it provides. When you walk into a home that is listed with an agent, they hand you an MLS listing that summarizes the home, business cards, and often additional pamphlets or brochures. They are treating their real estate business like a business and so should you.

 

How to raise private capital

Every investor that I know who is successful in raising large amounts of capital, whether it be private capital funds, large numbers of lease-option tenants, short sale and wholesale end buyers, or private lenders all have top notch due diligence packages. If you want to have access to these same resources, you need a top notch due diligence package as well. If you do the thinking for the end investor and make your due diligence package pretty, your conversions will go through the roof. If you go the investment club and try and persuade your local investor with nothing in hand, you’ll be like most newbies that don’t close deals. Do the work ahead of time. You don’t even need to be a designer as you can outsource that work on freelancer, odesk, or craigslist in the Philippines for a very low cost.

A few things your due diligence report should contain

These aren’t the only things a good real estate investment report should contain but it’s a good starting point.

  • Comparable sales

You can illustrate what a solid deal your investment actually is by showing your investors how much your property is already under market value. You should probably also highlight the difference between your asking price and the market comparable by utilizing something like “instant equity” and drawing attention to that on your purchase.

  • Pictures

People are visual people and real estate is a tangible item. The more pictures you can include with your package the better. It will help your end investors quickly size up the area and home condition.

  • Features and Benefits of the Property

You should look at the listings for the top realtors in your area and model some of the home features and benefits they bring attention to in their listings. Very often you’ll find that average realtors have boring MLS listings and often the top agents have very detailed information on their listing. Make that investment package come to life.

How to sell my end money source?

The good news is that you really don’t have to. Most end buyers, investors, or private capital sources will have their own criteria for investments and real estate. If you try and force them to invest outside their comfort zone with something that doesn’t match their criteria, they just won’t usually do it. They didn’t usually acquire their money by accident and so these are generally knowledgeable people especially in regards to their own real estate investment criteria. By doing all the presentation work ahead of time, you’re not selling them on the investment. Rather, you’re selling them on your competence level and knowing what how to spot a solid deal. By showing this in the most visually impactful way possible, your money source will take you much, much more seriously.

So if you want to close deals, you have to make an investment package that makes it a no brainer for your money source. Marketing is your business – don’t forget it.

 

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Can You Make Money Real Estate Investing?

Author: theinvestortoday / Category: Articles

You know, I’ve probably had more people ask me whether they can make money in real estate than anything else. The truth is that it’s not rocket science.

One thing that you should understand is that all businesses work using the same three principles.

1) Purchase a product or service at a set price
2) Sell the product or service at a higher price than it is purchased for
3) Achieve this in a measurable time period

In order to make money real estate investing, there are two basic things you need to clearly understand.

a) How to Buy Real Estate

Real estate rarely sells for a significantly higher price than it costs to purchase. That means the first step to making money real estate investing means knowing how to buy property for less than market value. Making money real estate investing is both an art and a science but there are repetitive techniques that will help achieve this with regularity.

The first key to making money real estate investing is to learn to buy your equity. Later, we will sell that equity and it will produce real tangible cash. Most new investors think that you make money when you sell the real estate. The truth is that your money is always made when you buy.

Most products and services have an average profit margin of 8% after all expenses are considered. Some more profitable products have profit margins in excess of 30%. Because of the huge cost of buying real estate, a 30% profit margin for the average investor can be more than a lot of people earn in an entire year. What you don’t achieve in volume you will make up for in the large profits produced by one deal.

If you understand how to buy a product for less than market value and there is a demand for it, you can always produce a profitable business from that venture. Real estate simply works because there will always be a demand for places to live.

b) How to Market Real Estate

The truth is that 90% of any business is marketing. Having your properties sell for full price quickly and often will help you cash out that equity and get paid. The key to making that happen will be in your marketing efforts. Unfortunately, because most businesses don’t understand marketing, this key lesson eludes them. If you comprehend creative marketing techniques, any type of business can work.

Consider the obviousness of this example. Which one of these advertisements is more likely to garner a lot of attention?

123 XYZ Road – 3 Bed/2 Bath

or

3Bedroom/2 Bath Home – Must Sell $1000s Below Market

While it may be obvious, look at the different property advertisements and you’ll notice that few people incorporate good marketing into their campaign.

So, can you make money real estate investing?


Of course. If you work smarter and harder, it’s literally impossible to fail. The real benefits though are the skills required to master making money real estate investing are completely transferable. Learning to buy a product with high demand for less than the market value combined with good marketing skills will make you successful in any business. It absolutely imperative for you to learn both of these skills and you can make money real estate investing.

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Closing Techniques To Master Closing in Sales

Author: theinvestortoday / Category: Articles

Your investment in yourself is the best investment you can make. I recommend you spend the bulk of your energy and efforts learning about things that make money so that you can be financially free to do the things you want and to help those that you care about. Every little bit you learn makes you more valuable in assisting those around you and yourself. That’s true even if you stay at a company you’ve been with for a long time.

Okay so I realize that real estate isn’t really “selling”. The truth is that there is probably more negotiating involved. A lot of people don’t want to learn real selling because they think it isn’t relevant to their field of work, it is beneath them or most of the time because we have a learned image of a high pressure salesman that we just don’t really like. That person is so uncomfortable to be around that we don’t understand why anyone would want to be like them. The good news is this, those high pressure sales people are generally very poor at their job. They also generally sell people a bunch of shit (excuse my language) that people don’t want. Usually behind the scenes you will find that their customers are rarely satisfied and life is a continuous struggle for them to meet quotas they can’t reach. I’m not going to teach you to be like them because the truth is that type of selling doesn’t work.

The Misconceptions About Selling

Remember that people buy products all the time. People also buy services all the time. A lot of times people don’t need sold on the value of those services as they’ve already made up their mind to purchase them. I don’t know about you but when I went to buy my last computer, I knew what I basically wanted. All I needed the salesperson to show me was the best laptop for my price range. The salesperson advised me, I bought my computer and that was the end of it. I didn’t require high pressure sales to close, I needed advice. In fact, if he had tried to sell me via high pressure selling, I probably would have left to another store to find someone who was able to listen to my request and advise me accordingly. I knew what I basically wanted and needed the salesperson for their knowledge on the specifics. If you can learn to effectively lead people’s conversations to where they had already decided to close the deal with you and you simply had to advise them on the specifics, wouldn’t that be a lot easier? The good news is that this is just what you’re going to learn today.

I suppose a small minority of people would disagree with me but McDonald’s does not make the best hamburgers. However, McDonald’s is the best selling hamburger joint in the world. What McDonald’s does have though is the world’s best system of marketing and selling to deliver their product to their customer. Do you think McDonald’s has ever tried to force you to buy a hamburger against your will via some high pressure sales pitch? Or could it be that their success in selling hamburgers is due to something more subtle and powerful?

Becoming a successful real estate investor isn’t about being the most intelligent, motivated or attractive, it is all about who can consistently close the deal. If you want to consistently close deals a big part of it will be your learning resources like this. Every little bit you invest in yourself will only serve to make you a more powerful and confident individual.

The Great Myth

“I’m not in sales, so why should I learn selling?”

Yes you are!

Suppose you never take any of this information on this site and you never use it to become a successful real estate investor. Suppose you are content with your current job and you don’t see a need to change what you’re doing. When you went in for your job interview, a huge part of whether or not you obtained the desirable job was due to your ability to sell yourself at your job interview. Next time you go for a promotion, your success or failure will be determined by how well you’ve sold yourself and your value to your company all along. Next time you hope to attract a mate of the opposite sex, it will all be in how you present and sell yourself. Trust me when I say that I have many friends who fail miserably with women simple due to their inability to sell themselves. They often have poor communication skills and poor self belief. This leads me to…

The Great Truth

Everyone is involved in selling – all the time, no exceptions.

The problem with this is that we as a society have a learned perception that a great sales master is one who talks a lot and is boastful. The reality is that a great salesperson closes deals. The even lesser understood reality is that great selling involves great listening. I want to remind you that McDonald’s has never (via high pressure sales) sold you a hamburger but the average person will go there over 1800 times over the course of their life. I should elaborate to say that McDonald’s has never “sold” you a hamburger in terms of our preconceived view of selling. However, McDonald’s has marketed and communicated effectively enough that you have decided you would like one of their products and simply went in to the store to complete your order. That is what selling really is. You need people to have already decided in their mind to buy your hamburger so to speak so that you can simply advise them about the specifics.

In real estate, you only get paid if you close deals so understanding the psychology of people helps you drastically. Let’s simply change the term “selling” to a better more fuller term – “effectively communicating”. Communicating is a great deal different than talking even though some people use them interchangably. It encompasses your body language, the emotion behind what you say, your tone of voice and most importantly, your listening skills. If you only learn one skill the rest of your life, master communication and every aspect of your life will improve accordingly.

When I originally wrote this information a while ago, I had written it for sales people. I urge you to read it with an open mind even if you are not currently selling anything (except yourself because you will never be done selling that). All of the information is still relevant to you if you ever plan to move towards any sort of a desired outcome in your life. In real estate, you need to close deals for your desired outcome of wealth to manifest but in real life, there are 100s of daily examples where persuasion can lead you to a better result.

So What Stops People From Closing?

The vast majority of salespeople fear potential objections so much that they don’t even ask for the close. Over 90% of most sales presentations actually end without the salesperson asking for the close even just one time. Think of all the ineffective salespeople you’ve dealt with in your life. How is their demeanor? What kind of closing questions do they ask?

Closing should be a natural outcome to a well done presentation. Before we look at techniques, let’s understand the difference between poor performing and well performing salespeople. Which one are you now? Which one are you going to choose to be from now on? If you’re not already a great salesperson, make a goal to become one in the next 30 days. All the techniques in the world mean nothing without being applied.

Closing With Ineffective Salespeople

When most people picture a person who should be in sales, they picture someone who is a smooth talker. They are very cunning with their words. In reality, rarely does this type of person ever actually excel at selling. People buy products from people they feel comfortable around and even friendly with. Have you ever went to buy an electronic part and the salesperson wouldn’t stop droning on about every single technical detail and specification of it?

The three most common closing techniques of ineffective salespeople:

- They hint that you could buy the product if you want
- The fantastic and well thought out “So… what do you think?”
- They just keep talking about the product waiting for the potential client to make the first move.

None of those work for a few reasons:

- Most notably, their lack of belief is translated to you
- You can get the feeling that they’re just trying to get you to buy for their benefit, not yours
- Chances are they haven’t actually listened to you through the duration of the presentation
- They give you a sense of mistrust in them
- They are rarely passionate about the product they are selling
- They are rarely passionate about seeing you make the best choice for you
- It seems as if they’re hiding something
- If they just listened to you just a little bit, they might actually understand what you’ve said
- Seriously would you buy something from someone who just won’t shut up if you didn’t previously want the product?
- More often than not, they don’t have money themselves so they are afraid to ask assuming everyone else is as limited as they are
- They project their beliefs onto the other person instead of listening to the other person’s unique problems and circumstances

If you are one of these people, then fear is the primary motivation that holds you back from elite selling. Generally you either have money issues yourself and project that unto others, you are a poor listener, you overwhelmingly fear rejection or probably a combination of all of them.

Fear of rejection can be overcome. The key is to realize that by being scared of rejection, you get rejected all the time. Can you say irony? How do you handle this now? If you realize that this is the most rejection that you can possibly experience can we move on?

What if you could change the world for only a day so that you knew ahead of time that 99% of the people you saw would purchase a large order or in our case, do the deal with us.. The catch was you had only 24 hours to see them. How many people would you see then in 24 hours? If the answer is a hell of a lot, then clearly it is fear holding you back. Learn to master your fears. Mastering fear altogether is a whole different topic but if you’re looking for help on it, having the knowledge to be prepared for any outcome should will make your fears subside. You’ll realize that it doesn’t matter what the other person does, only what you do in response to them. If you know you can handle all the possible outcomes, then you won’t be afraid ever.

Effective Salespeople

First off, if you are looking to be effective in selling. Step 1 is to ensure that you are passionate about your product. Because everybody needs to live somewhere, I think there is always something within real estate to be passionate about. It is your space after all. When you legitimately believe that your client will be better off for having purchase your service/product, your persuasive power goes up immediately. It is true that sales techniques will allow you to be more effective in selling any product and in communicating in everyday life. However, it’s much better to do it with integrity, right? Not to mention much more fulfilling when you see other’s lives improved. The bottom line is to sell something you are passionate about.

In my own personal life, I am very pro health. I eat a lot of organic fruits and vegetables and never have any health complications. I persuade people to do more for their health all the time. In the future I will open up a business related to health and I’m already positive it will be successful because I’ve been persuading people all this time to better their lives. I’m already selling them, I’m just not getting paid for it yet. You’ll find a much easier path to success when you find out what that is for you instead of selling what you must do for a living. There is always a niche or two within real estate that you find passion with.

Here are some of the characteristics of proven winners in sales and the associated techniques. Although any 50 techniques may work, you only need a few of them that work for you and suit your individual personality:

1. They Continually Use Assumptive Language

If your presentation went as it should, it is only natural to assume they would want to make a purchasing decision. Again, being passionate about your product, you’d like to help them. They also use assumptive language throughout the presentation. Choose one that you yourself would feel comfortable and natural saying.
- Mr. Prospect, how would you like to take delivery?
- Mr. Prospect, should I write up this order for the red or the blue?
- Mr. Prospect, how do I spell your middle name on this order form?
- Mr. Prospect, I wouldn’t be doing my job if I didn’t ask, why don’t you get it?
- Mr. Prospect, what’s the easiest way to write this part up? What type of credit card are we going to use?
- Mr. Prospect, are we going to get one or two of them?
- Mr. Prospect, ok I’m filling up the order for 400 of them. No I’m just kidding. One or two will be fine. Standard delivery is ok?
- Ms. Prospect, how many am I going to fill out the order for?
- Mr. Prospect, I’m going to ahead and fill out a contract for the house for ____, is that correct?
- Mr. Prospect, I’m still a little new at this. How many of them is the order going to be for?
- Mr. Prospect, who should I invoice this to?

Take your assumptive language further. Every time your customer agrees to a benefit of a product, write it down on your order form. The first time they will stop you and they will ask what you’re doing. You just calmly respond “Oh don’t mind me Mr. Prospect, I just like to keep my thoughts organized on paper. I write stuff down as I hear it to help keep it organized”. Or you can use some humour “Oh I’m not supposed to tell you this” and then pause, lean forward and whisper, “but the IRS thinks you’re cheating on your taxes again and I’m taking notes on you.” Pause again and in normal tone again “No I’m just kidding. I just keep all my thoughts organized by writing them down on paper. Don’t mind me doing it throughout because it’s just what I do. I do it all the time.” By the time you get to the close, you’ll have all of the information ready to go. Now that’s assumptive power.

2. They Rarely Ask Yes or No Questions

There’s a serious problem with yes or no questions. Most notably, the person can say “No”. Aside from the obvious, when a person asks you “How are you doing?” you automatically say “good” without even giving it a real thought. This is true, right? A lot of yes or no questions will be responded to with “no” without the other person giving it a real honest thought. People are taught to have natural sales resistance even when the product is in their best interest. A lot of times, they are especially like this when it is in their best interest. it’s crazy, wouldn’t you say? Your job is to get them thinking again. They are always infinite choices to choose from so your job is to lead your prospect to the right product choice just like McDonald’s would. Choose questions that either have specified options as answers or make a statement that you believe in followed by “right?” or “isn’t it?” as a token of their agreement.

Mr. Prospect, would you prefer your order in the white or the black?
Mr. Prospect, would you prefer one or two of them on this order?
Ms. Prospect, would you prefer to take delivery on Tuesday or Thursday?
Ms. Prospect, are we going to be paying for this with Visa or Mastercard?
Mr. Prospect, you’re going to go with this order in the black, right?
Ms. Prospect, I just want to get this order information accurate. The correct spelling of your last name is €˜P€¦ R€¦.’ (etc.), isn’t it?
Ms. Prospect, would you prefer if I we ship the order to your home address or work address?

3. They Act As Your Advisor Instead of Selling You

This is the secret of secrets in selling. Don’t sell anything, advise. Great salespersons know that sales will come. They are greatly attached to long term outcomes but not bound by individual sales one way or another. They are very keenly aware that their long term success is assured. Knowing that enables them to play more of the role an advisor.

What if whether the person bought the largest order, the smallest order or nothing at all you got paid the same money either way? What if it made absolutely no difference to you at all what the customer purchased or if they purchased at all? How would your demeanor change?

Most people have a natural barrier to sales because so many people in various markets are trying to sell them junk. Most often after making a large purchase, buyers go through what it is called buyer’s remorse. Typically, they doubt their purchase and they often even regret their purchase.

Have you ever bought from a really professional salesperson? You’ll know it because you actually felt good about it. Let me explain this with a story. I was with a friend and had the benefit of watching a real pro of a car salesman work his magic. She had said that she wanted to spend no more than $5000 on a used car. She wanted it to be good on gas and she didn’t want an ugly car. Most car salesman walk up to you and awkwardly initiate conversation. Then they try to lead towards some car while they smile and nod “isn’t this the car for you?” They might ask a few questions first if you’re lucky. Not this pro. This is how the scenario played out.

Firstly, he came up to us and asked us if he could help us with anything to which her response was a typical “oh no thanks, we’re just browsing”. He very calmly said “if you guys don’t mind, I’d like to tag along with you. It looks bad on us if we don’t show some good hospitality to people who pay us a visit. I won’t bug you guys at all.” He was so calm and nonchalant about it that her reply at this point was “yeah sure ok”.  He went on further “It’s such a nice day outside anyways and I’ve been cooped up in the office all morning.” At this point, she sort of began walking again and partly ignored the comment, giving it no response.

We casually walked around for a while making small talk until she finally came to a car that she actually liked. “Wow this one’s pretty cute” she said. She leaned towards the salesman and asked him “how much is it?” It wasn’t posted anywhere on the window. His reply was a very calm “to be honest, this one’s new here and I’m not really sure. I can find out for you in just a minute. Can I ask you something if you don’t mind? It’s the front up here that makes it look cute, isn’t it?” he said referring to a custom decal on the front of the car. He smartly suggested something so that she would offer her own evaluation of the situation.

A little aside, if your prospect won’t tell you what’s going through their mind, suggest something and they’ll correct you with what’s really going on in their mind.

It was a very cunning move for a man who had patiently waited almost 10 minutes without being part of the conversation. “Actually” she replied, “that’s the only part I’m not really fond of”. “Oh, so what do you think is cute about it?” he inquired. She replied, “definitely the colour and the look of it over here. I’m not going to buy a car today though,” she said which is another very typical response or objection which wasn’t at all true for starters. He calmly replied, “my job is to make people happy with their time here even if they don’t purchase. If you don’t come back for ten years I’ll still be looking to make your day worthwhile here” he said very matter-of-factly. He then paused, “I’ll tell you what. I know you’re not looking to purchase but these are fun cars to drive. Let’s take it for a spin for 10 minutes before you guys are on your way. You guys have 10 minutes, right?” The enthusiasm about how fun it was hit you when he said it.

He then came back with the keys and we went for a ride. She obviously loved the car but was still struggling with the usual natural sales barrier. Though this particular gentleman could not have been more dead on which how he had handled her, ultimately the decision still weighed with her. He then went on to ask her a few clever questions to uncover what particular aspects mattered most to her decision, including how it was on gas. There were other factors but I’m trying to keep the story brief.

When he got to price, he very calmly asked her “is price a factor in your decision or can you spend whatever you want within reason?” to which she replied “Yeah, well I can’t spend any more than $5000 on a car before taxes.”

We got back to the lot and he commented to her on a series of points she agreed to. “You like the car? It’s cute enough for your taste right? It’s good on gas as you said you wanted. I haven’t checked the price yet but I’m sure it’s within your budget. Why don’t you get it?” he asked. “Oh I don’t know” she replied. “I wasn’t looking to make a decision today and we’ve still got a few other places to go.” He replied, “I see. You’ve been to a few other places. Where does this car rank so far?” Well to be honest she said, “It’s at the top right now but I still want to shop around.” His response was “I agree with you. It’s important to make a sound decision instead of an impulse emotional buy. Is that why you’re looking some more to be sure that this is your best available option?” She replied, “Yes that’s why. I just want to be sure.”

He came back “well I see that and for this model and shape, I’m confident this is the best you’ll find.” He paused again, “I don’t know the exact sticker price on this car but I’m sure I could let it go for $4500. Although, I don’t want to rush you guys to a decision. It’s your money and it’s smart to be wise with it. I see that you guys just need time to think about it, right?” She responded, “Yes just a little bit”.

He cleverly replied, “I’ll tell you what, why don’t you take it for another drive without me just to sure it in your memory before you guys leave today. You just loved the way it felt behind the wheel so one more trip will help you remember it. Take your time” She couldn’t resist, we grabbed the keys and on we went.

Upon our return she had her check book ready. She bought the car. Before we drove off, he said “I’ll get those decals taken off for you at no charge since you said you preferred it without them.” At this point she felt like royalty and called everyone she knew to brag about her new car. Even mentioning how awesome the guy was there in helping her. No buyer’s remorse there.

The Moral of the Story

When you buy from a pro you leave fulfilled and happy. They have you in mind. The lesson to be learned here: Top sales pros act as advisors.

He didn’t talk about mileage because she wasn’t concerned with it. We didn’t waste time talking about payment methods because he already knew how she was going to pay for it. He only advised on her the criteria she said was most important to her choosing. He let her name the terms and price and simply fulfilled it. We never haggled over price at any point. In fact, the car might have only been worth $3000 but what does it matter if she loved it?

I am a little more observant than her. I happened to notice his picture on the wall as the top salesman in their rather large branch. No coincidence there I might add.

As a technique to take the advisor role a little further, if you’re seated, slide your chair over to be on the same side as your customer. Advisors don’t sit awkwardly across from people, they work together. When they ask why you’re doing it just say “it’s just easier for us to figure stuff out if as it comes up”. I usually throw in a bit of humor and say “don’t worry, I won’t bite you” or “don’t worry, I don’t eat people”.

4. They Listen Well and Their Presentations Continually Invoke Customer Involvement

The simplest way to handle objections is to deal with them before they even come up. Did you know the average person has only a 3 sentence attention span? That means as soon as you say 4 things in a row without their involvement, they’re probably not listening to you anymore. How can you stop this? Very simply by getting them included. If you have an obvious point to make say it but add a simple “right?”, “isn’t it” or “isn’t that right?” at the end of your point. Use their name if you can.

“Mr. Prospect, this is the best quality product on the market today. Top quality is important, isn’t it?”

Another more effective way to do this to ask a question before you make the point.

“Mr Prospect, what would you rather have, top quality or average quality?”
He’ll reply to the obvious point and you show him why your product is the top quality.

Momentarily pause your presentation after a key benefit and say “Mr. Prospect, I just want to make sure I’m explaining this the right way to you, does that make sense how I just explained that?”

Assuming you do this correctly, you’ll deal with numerous objections before they even come up. You can deal with it here and now.

Lastly, this one is this most powerful. Illustrate the benefit. Don’t say your car has the most power, floor it and show them. Don’t say your knives cut the best, take them out and have the customer slice. The more out of the ordinary it is, the better.

There was once a man who was number one in selling hurricane-proof windows. People asked him how he became number one in the entire country in such a fast time beating out every top salesperson the company had in less than one year. He showed them that everyone claimed the windows were hurricane-proof. At his presentation, he paused, pulled out a hammer and hit the window as hard as he could which left no mark on it. How would that impact you if it happened right before your eyes? That’s how you get customer involvement and make your point.

The reason this works is that knowledge and wisdom are two different things. Wisdom is knowledge applied through experience. You may realize how great your product is but the customer does not. Further still, they may not realize how great it is the first time through. By asking them, you get them to stop and think and pull their mind back to thinking about your product where it tends to wander. As that happens, they’ll be forced to agree with your conclusion or not but one way or another they’ll have their own wisdom right then and there.

5. They See Top Prospects

A prospect is someone who has the means to afford the product or service and can definitely benefit from its use. This may seem like an obvious point but you may have a great product, a great presentation and a great close and still not generate the sales you need. If you’re a top salesperson and you’re seeing run of the mill prospects, how are you going to succeed in sales?

6. They Paint Visual Pictures Throughout the Presentation

As stated above, one way to make your benefit clear is to have it used right then and there during the presentation. However, there’s more to great selling than just that. Besides that, some products, like say investments, are too abstract to visually demonstrate. What reasons do you think people buy from you? In a poll I read, over 90% of customers said they purchased because of the salesperson’s enthusiasm and only 7% said it was because of the salesperson’s technical knowledge. You should be technically sound on your product, right? But understand that it is the picture you paint that makes the difference and not the technical detail. You give the technical detail life but illustrating its benefit. If you can’t be passionate about your product, again, find one that you can be passionate about.

Paint visual pictures in the other persons mind. When a person agrees to a benefit get them to picture using it. I start all my sentences with “Ms. Prospect, you’re going to love…”
- the way this car handles in the mountains
being so relaxed at night in bed when you know the bank isn’t beating your down door anymore
- going to the bank to find out your investments made you this much
- the way this house feels to show off when the family comes to visit
- the way this looks right over there in that room

You break down their natural sales barrier by picturing them already owning it. If you were excited about driving a card in the mountains and you were a prospect, wouldn’t you buy it too? As you they tell you they can use a benefit, throw in a visualisation about how they can use it.

7. They Are Calm and Relaxed During Closing

This may seem like another obvious point but top salespeople are very calm and relaxed during the closing. If you drastically fear the rejection of closing to the point where you can’t even ask, you’re causing yourself a whole lot of rejection.

Success is preparation meets opportunity. The more you’re prepared with handling objections, the less you’ll worry. When you realize that you can handle every possible outcome, it’s much easier to be relaxed. It’s only how it’s going to play out that is the interesting part.

Ask to follow a top salesperson in your company (or in our case a top investor at the investor club) or through someone you know so you can watch them work. The more you see them do it, the more you’ll realize €˜hey, I can do that too’. It is a quick way to turn your knowledge into wisdom. This is a must even if you are at the top. Spend a day with someone else just to learn.

Take responsibility for your results. Everything is in your control. Even the sales that got away, it was you who didn’t find the right prospect or it was you who didn’t build enough excitement in the other to warrant a buying decision. You either didn’t find the right buyer or didn’t handle the circumstances properly. All of it is within your control so when you see that, you see the big picture instead of the individual sales. They are just a reflection of your larger goals playing out. No great salesperson ever needed one individual person to say yes.

There are only about 10 really mean people in the world. They just get around a lot. You can deal with the same 10 idiots. Really, can’t you? Learn to be calm.

When people ask for the close, you’re almost always faced with an inevitable pause. Rarely does a person say yes the very first time without any hesitation.

Poor salespeople take this pause after asking for the close as a no and begin talking again. I bet you’ve all done this at some point. In all selling and negotiating, be patient. I’ve looked potential clients as long as 60 seconds in the face without any conversation to let them decide. How’s that for patience anyways? Can you imagine how long that felt in my head? If anything goes that long and you feel the need to say something, ask for the close again. A huge number of people actually talk themselves out of sales by not just keeping quiet. Your only move should be to lean back and relax. This is good practice for a good poker face too, right? Learn to keep your big mouth shut when it’s required.

Learn 5 closes you can use and how to handle every objection, when you’re prepared, being calm is a natural conclusion. One thing’s for sure, as long as you fear rejection, you’ll get rejected. As long as you know you can handle it, you’ll rarely get rejected.

8. They Are Empathetic But Not Sympathetic

People are going to give you objections during closing and throughout the whole presentation. This is just how things are. When customers give you objections, it does not mean no but rather that they are unclear on a benefit. They have the knowledge but not the wisdom. That is they understand what you have said but their experience does not lead them to see how it will save them money, make them more energetic or whatever benefit you have said it will cause. It is simply a different point of view that is neither right nor wrong. If you are selling a $5000 product that saves them $10,000 then they are simply not clear on how that’s going to happen if they give you an objection. They are not clear on the benefits as you stated them.

A lot of sales people get frustrated when people don’t immediately see a benefit. Life is wonderful because they are so many different points of view. Learn to be empathetic. That means learn to understand their point of view from their unique perspective. That doesn’t mean to be sympathetic. If they say they can’t afford it doesn’t help either of you to say “oh I know times sure are tough”. That is sympathy and allows both of you to stop thinking.

Empathy allows you to strive to see their point of view so that together you can arrive at a new conclusion. If you strive to see their point, it is natural to agree instead of argue. Never ever ever argue in a sales presentation. “I see where you’re coming from Mr. Prospect. No one ever said our product was cheap”. That’s very different than saying “It’s not that expensive” which is disagreeing and arguing. At that point your goal is to show them how the use of its benefits far outweighs the cost and how they can afford it. Poor salespersons will actually get frustrated and say, “No it’s really not that expensive at all”. If you aren’t empathetic, you’re already losing.

The way to be empathetic properly is to always agree with their point as they make it. In fact, you can even compliment them on it sometimes. “Mr. Prospect that’s really clever of you to notice. Most people don’t ask that question”. Agree with it as their truth and clarify with a question to see that you see it as they do. From there you can invite them to a new point of view on it.

9. There’s Lots of Humour In Their Presentation

Smart salespeople know that the close begins long before the close. It begins the moment first contact is initiated, generally on the phone. Most salespersons are forgettable. It’s the unfortunate but honest truth. Adding humour breaks tension, increases trust and makes you more memorable. How funny are you? My presentations are always funny. People don’t realize though that the things I say that seem very spontaneously funny are the same jokes I make again and again given the right opportunity to use them. They work for me, they’ll work for you. Feel free to steal them without crediting the source (ME! Matthew David). When I call people on the phone, regardless of what I’m doing I have a few funny ones that I use repeatedly.

“How Long Will It Take?”

It takes about 24 hours. Don’t worry though, I bring my sleeping bag over. I make eggs in the morning. How do you take your eggs? (pause) No I’m just kidding. It takes only about …

“What are you selling?”

We sell farm animals. I only need to bring over about 5-10 live animals to show you our top notch livestock. They hardly make a mess at all. (pause) Mr. Prospect, I’m just kidding. It’s actually €¦..

In the presentation, you can use things like:

Ok so it does happen to cost $10,000 dollars (or some very large figure for your product) to which they’ll object. (pause) No I’m only kidding. It really only costs…

Yeah and you can use the money you saved to play the lottery. Just when you win, don’t forget us little people. I don’t ask for much though. You just owe me lunch.

It’s going to take a little creativity here but have 5 funny things you can say in every presentation you use but that seem as if they’re spontaneous. It has to be unique to your product and your presentation.

10. They Actually Ask For the Sale

90% of sales end without the salesperson asking for the sale even one time. Also, the average person purchases after the fifth time of the salesperson asking. All you’ve go to do is ask, handle objection, ask, handle objection, etc 5 times and you’ll be a pro. This is exactly I told you that you need at least 5 closes to use. If you know 4 or less closes, that’s why you’re not at the top yet. Are you choosing to get there now? What are your long term and short term goals?

11. They Sell Benefits, Not Products

Customers don’t buy products, they buy benefits. Pros sell the emotion behind the technical detail. This ties in with visualization. If a customer finds that the product makes their life easier, illustrate this with “you know what’s going to be great? Just picture the way the kids will still be whining about dinner and the husband will still need a good kick in the pants but you’ll comfortably know your investments are well taken care of. You won’t need to call me to add to the stress”. That goes a heck of a lot further than saying that it’s an easy to use investment plan, doesn’t it?

12. Continuous Improvement

Top people in anything always strive to better themselves through reading books, taking courses, attending seminars and listening to audio. Your car should be a mobile university on wheels. As little as twenty minutes per day can make all the difference in the world if you’re committed and low on time. Being a pro isn’t a sometimes thing, it takes lots of practice of the fundamentals whether you see or not. Being the best is not a sometimes things, you have to choose it every moment of every day. What’s in your personal development library? Hopefully at least you’re using the material on this website and access to my courses.

13. The Lucky 13 All Else Fails Technique

Ok so you’ve used your 5 closes and you still haven’t finished with this person. They’ve agreed to all the benefits, its use, its price and the whole shebang but at the end of the day haven’t agreed to purchase. Your stalemate at this point should just be a result of their indecision. You’ve added humour, visuals and everything but they’re just indecisive. It happens from time to time. They’re so paralyzed with fear that they can’t decide one way or another.

Repeat after me and memorize this word for word.

“You know, we have long considered Benjamin Franklin one of our wisest men. When Ben felt stuck with a problem as you do right about now, right? (pause for agreement) Do you know what old Ben did? He would grab a piece of paper and draw a line down the middle and put the reasons for the decision on this side and the reasons against the decision on this side (draw the lines). At the end he would simply tally them up and found the decision was made for him. Why don’t we try it and see what happens?”

Some people in sales may even recognize the close but it’s perfectly ok because it is sound logic. They can’t disagree with logic, can they? You grab a sheet and draw a line down the middle. On the left you go through all the benefits they’ve agreed to. You said it would be relieve their stress, be easier, save money, be fun to use, pay off quicker, be higher quality, etc. You know your product better than anyone else. You should easily be able to spout off 7 or more. Have them name the reasons against it and for God’s sake don’t help them. Agree with them on the points they make. Usually they will get stuck at 3 maximum if they even get that far which they rarely do. There’s only a few reasons against like cost, already own a product of the same type, etc. Tally them up and it generally shows something like 9-2. Close again. Mr. Prospect it seems obvious from this, why don’t you get it? Be quiet and let them speak next.

All that’s left from this article is to use it. Turn this knowledge into wisdom through experience.

P.S.
I know that’s a lot of information to process at once. If you’re the ambitious type who really wants to succeed and you’re really interested in learning more, I’ll let you skip ahead to tomorrow’s lesson. Handling Objections – The Objection Cycle which ties in to today’s lesson.

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Handling Objections – The Objection Cycle

Author: theinvestortoday / Category: Articles

This article is a continuation from Closing Techniques to Master Closing in Sales. Although it is not absolutely required that you read it first, the previous article really helps build on some of the ideas going forwards.

Whether you are a real estate investor extraordinaire or a house wife in Boise, objections are a part of your life. If you learn to handle objections properly, you can persuade people much more frequently to your desired outcome. On top of it, because you will have clearly understood their point of view, they will actually usually be happier and more responsive in this outcome. It’s like the difference between being forced to eat when you’re already full and being offered a plate of food in a time of hunger. While in both cases you’re eating food, your emotional state will be night and day apart.

I say this not to use as some evil power, because all knowledge in the wrong hands is dangerous, but to inspire you to greater things for yourself. People can be persuaded to give you what you want and be happy doing it. I don’t mean to push boundaries but… many women are very satisfied in bed because their man “took what they wanted” and was “being a man” about it.

Yes, I understand that this knowledge can make big deals go through, attract the opposite sex, get you the job interview, get you out of arguments at home and so on. Just be positive in how you use it.

I believe that it is people’s natures to want to see others happy. I believe you can help lead everyone to that conclusion, a win-win situation for all parties involved.

Remember that over 90% of sales presentations end without the salesperson asking for the close even one time.  Most sales actually happen after the 5th time the salesperson has asked for the order. If you want to be a top pro in selling you’re going to need to at very solid way of handling these objections. More importantly, if you’re going to be a top real estate pro, you’re going to have to handle objections very smoothly. How are you handling them now?

Opposite Points of View – Neither is Right or Wrong

The world is filled with people who have a different point of view than yours. You have wisdom of the benefits of your product or service. That is the knowledge with applied experience to see how it works. Chances are the client or customer has the knowledge you have given them through the presentation, but given their unique point of view in the world, they do not arrive at the same wisdom as you. What do you use to invite them to your truth?

Follow these 5 simple steps every time.

1. Agree With / Validate Their Concern

“Mr. Prospect, I can see where you’re coming from on this point”

You’d be surprised how many salespeople begin arguing at this point and turn a potential sale into a quick disagreement. Your truth is not always the world’s truth. Strive to see other’s points of view for what they are. To clarify, you don’t have to agree with what they other person is saying, you simply have to agree that you understand how they see it that way from their personal point of view. By doing this, you empower their point of view so that when you persuade them to a new one, they will be much more decisive.

2. Feed It Back To Them as a Question to Verify

“So what you’re saying is that you definitely like this (insert benefit) about it but you just can’t see yourself affording it” (or whatever other objection they had goes here).

For instance, “So what you’re saying is that you’d like your home sold but you’re not sure this is your best option right now?”

At this point they’ll either agree with you outright or elaborate on how they’re feeling about the situation. You’ll often see that there was more to their point than the figurative cards they had laid before you.

3. Reverse the Point to Lead Towards Your Truth

“However, to tell you the truth”

Those exact words invite them to a new point of view and are extremely effective in persuasion. You’ve understood their point of view and are still standing by yours. While it is only on the subconscious level, the idea that you are standing by your point of view even after understanding their point of view is a powerful declaration to the universe.

4. Restate Benefits

This one is rather open to what the benefits of what your product or service is. Do not sell technical features. Sell the emotional benefits behind the technical feature. I once met a real estate investor who sold “happiness” to “real estate problems” and he would wish everyone a “super fantastic day”. You are in the same business whether you have realized it yet or not. Sell the happiness your product brings in the life of the customer and not the product itself.

5. Close Again

“Mr. Prospect, why don’t you get it?”

You’ve shown them your truth and chances are they’ve seen it. There’s only thing left to do. Closing should be a natural outcome to the validated points you have made.

How it Works Practically:

Altogether it works like this. A customer says for instance “I can’t afford it”. You respond back with “I hear what you’re saying Mr. Prospect. So what you’re saying is that while you can see it’s obviously worthwhile to purchase these investments, you just can’t see yourself being able to make the payments for it right now?”

The customer may reply back with something like “yeah and I have my daughter’s wedding coming up, it’s just a poor time in general to afford it”.

“So what you’re also saying is while you think the investments are worthwhile and something you would normally feel comfortable purchasing, it’s also poor timing to do them right now”.

“Yes definitely.”

“I can understand that as well Mr. Prospect. However, to tell you the truth Mr. Prospect, how are you going to feel next time something big comes up? Life doesn’t get cheaper as it goes. Money in a savings account will grow slower than inflation. At this rate, you’ll never catch up. In fact, you’re only going to get farther behind. You can’t afford not to do this so that next time something big like this comes up, you won’t be stuck. You’re going to love the way you won’t have to worry about finances like this again all from a tiny bit of money each month you’ll learn to not even miss.”

Get back to showing payment options. Find a suitable one.

“Mr. Prospect, why don’t you get it?”

It’s so simple yet so strikingly effective. Use it.

In real estate investing like we do, from start to finish, it could go something like this.

“Mr. Prospect, I can understand where you’re coming from. Just so I clearly understand it, what you’re saying is that if you knew I had an investor lined up right now, you’d sign this contract?”

“Yes and my real estate agent was telling me it might not be a good idea because I could get more if I were to wait it out a bit.”

“I can understand that too. If could get a little more, I would take it as well. However, to tell you the truth, my database of investors is the best there is. I have more qualified contacts than any 10 real estate agents combined. I market this all year round so that when someone like you comes up, I am able to quickly handle this assignment of contract. While I agree with your agent said that if you could get more money you should take it, none of your realtor’s advice has sold your home or even gotten you much traffic. There is also very little reason to think that will change without doing something. There are tons of other homes like yours that are listed in the area for the price he is telling you to list yours for. At the very least, I’ll be getting dozens of investors in here to actually come visit your place within the next few days. You’ll know that there’s interest in your home because you’ll be the one showing them. Just imagine how much better you’ll feel at night when you lay down and there aren’t any more threatening notices from the bank. You’re going to feel so much more at ease when this whole ordeal is just done and over with. You’ll also have your credit intact so you that you’ll be able to buy a home again in the near future if you really want. Mr. Prospect, why don’t we sign this contract?”

Now compare that to what some people do when they say that “You’re wrong, I have tons of investors and your agent is an idiot”. Believe it or not, there are “investors” (not good ones of course) who actually do this.

The good news is that no matter what product or service you sell, there are only a few basic objections disguised a few different ways. If you’re selling multimillion dollar industrial machinery or chocolate bars door to door, the objections are the same.

Handling Objection Types

1. Can’t Afford It

This is the most common objection. Even when a customer says other things, often this is what’s really behind their objection. You know what’s ironic? If you came in selling a brand new Ferrari for $10,000 which is actually valued at $400,000 somehow your customer could find a way to afford it. The truth is that they cannot afford it based on their current perceived value of it. Those are two very different things to be clear on. You should handle this one a few ways at the end of the objection cycle.

- you can’t afford not to
further illustrate it’s benefit
- show payment plans and how yes they can afford it
- work with them to find a suitable payment
- illustrate a need for the product so that the price becomes irrelevant
- show how its use far outweighs its cost
- show what it will cost to not make a decisions (bankruptcy, forecosure, bad credit, etc.)

2. Too Expensive

Too expensive is different than can’t afford it. It means they can afford to pay that much but just feel it’s overpriced. Often when people say it’s too expensive, they really mean I can’t afford it. That’s why it’s important to ask the question in step 2 to confirm this is the actual objection you’re dealing with. This one is just a question of benefits versus price it is worth.

- paint a visual picture of one of its benefits
- illustrate its benefit through the use of the product
- go back to the key benefits they agreed to earlier and pound home that value
- show benefits that show a few dollars more is easily worth it for their life
- ask them why they feel it’s overpriced

All too often people are afraid to ask. You won’t know otherwise. If you’re afraid to ask, suggest something and they’ll come out and tell you why.

3. I Need To Think About It

When I first joined with my magazine partnership, my partner lost more sales to “I need to think about it” than anything else in human history. I asked him how many sales he had this month and he’d say a few but “I’ve got all these people I’ve got to get back to in a few days to see how it went”. He was excited about all the people that had told him they need to think about it. A few weeks went by and he diligently called everyone back to find that he gotten only one sale from the hundreds of potential customers he had seen. The lesson to be learned here is that “I need to think about it” is a way to delay having to make any decision at all. The truth is nobody thinks about it after you leave. Five minutes after you have left, they are done “thinking about it”.

- I understand it takes some time to make these decisions, can I ask you though, what about it do you still need to think about?
At this point, they’ll give you their true objection
- It’s very smart to think over your decisions, is it because you are unsure of this model or that one?
Suggesting a reason why will cause them to say “No actually it’s just because€¦.” And you can get to the true objection
- This is my personal favourite. In our new magazine partnership, when clients would state they needed to think about it, we’d gladly agree. I completely understand Mr. Prospect. Decisions like this take time and you’re a smart man for not jumping to a quick emotional decision. I’ll tell you what. We’re just about to run up for a coffee anyways. Do you want anything while we’re out?
When you come back in 10 minutes, he won’t be able to use “I need to think about it” again.
- Agree with them and leave to your car to “get something” or go to the bathroom for 10 minutes. Come back. Ok Mr. Prospect, you’ve had some time to think about it, can I ask you then? Why don’t we sign this?

At this point the real objection will come out again or they’ll have realized in that time that there really was nothing to “think about”.

4. Don’t Agree With a Particular Benefit

This is a very simple one that even the average salesperson can deal with. As long as you don’t argue with the customer about the benefit and use the objection cycle, you should be in good shape.

- Show some emotion behind how the benefit is going to help them.
- Illustrate through a picture.
- Give a demonstration.
- Call a past satisfied customer that you’re close with to prove what you say (when you get a top customer like this be sure to ask them if it’s ok ahead of time if you were to ever call them regarding this). This is great if you’ve had past clients that you’ve closed deals with. Call them and see what they have to say.
- Show a testimonial. Don’t be afraid to ask for them either.

5. Already Own One

The chances are if you’re selling a product, it is of higher price than a lot of other products in the same field, which are not sold through personal sales. People may say they already own a car when you’re offering a Ferrari. It’s just simply not the same thing and you need only to prove it. Isn’t it ironic that people can waste 10s of thousands per year on things like coffee and restaurant meals but because it’s done in a series of small purchases it doesn’t bother them? Do people think for hours on buying a $3 pair of socks? It’s actually these small purchases that can’t be accounted for that causes most of the financial burden in people’s lives. You have to get back to showing them that your product versus what they already own should hardly be considered the same product at all.

- Show how your product replaces the other product and adds more convenience to their life.
- Show some emotion behind how the benefit is going to help them.
- Illustrate through a picture.
- Give a demonstration.
- Call a past satisfied customer that you’re close with to prove what you say (when you get a top customer like this be sure to ask them if it’s ok ahead of time if you were to ever call them regarding this)
- Show a testimonial

6. Can’t Fit It In the Budget

A lot people use the budget constrictions as the reason for not making their purchase. This is very similar to I can’t afford it in how you can deal with. All the things stated previously work for this one in addition to some other ones.

- Be flexible and show you can adjust the billing time to have it reflected in the new budget
- Work with them to look at the budget to see where concessions can be made
- Find out who makes the decisions with the budget so that flexibility can be attained
Your job is to work with them and problem solve to see that it can be made possible.

7. I Need To Talk It Over With My Boss/Spouse/Business Partner

A lot of people use this just like a modified version of “I need to think about it”. It’s important to realize that when you leave no in depth discussion with the partner, spouse or boss is going to take place. There’s a number of ways you can deal with this.

- Get them to make a solid decision for themselves.
“Mr. Prospect, I understand you cannot make this decision without (Objection person), let’s just suppose for a moment that the decision was solely up to you.”
Get them to sign the deal with a little comment “pending [Objection person’s] signature”. Meet with the other person separately or with your current prospect again as soon as possible.
- Ask them to call their boss, spouse or business partner into the meeting
- Get them to sign the deal now on their own merit and give them a few hours to discuss it over with the objection person
- Most importantly and effectively, qualify them up front on the phone. Mr. Prospect, are you the person who makes the decisions for purchasing? You’ll find that most objections are easiest when dealt with before they ever come up.

Now relating this all to real estate, understand that like in everything else, clients will disagree with you from time to time. Use these 5 steps to turn your situations into winning deals. If you disagree with someone and argue with them, you won’t close deals. If you disagree with them and you use the objection cycle to turn the disagreement into an agreement, you’ll close a lot of deals. You can practice this technique any place, any time that someone has a different point of view than you.

All that’s left for you to do is to put these steps into practice. Turn your current knowledge into applied wisdom.

See also Closing Techniques.

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How To Get Rich Quick

Author: theinvestortoday / Category: Articles

Seriously? Why do we click stuff like this?

Step 1
Stop clicking things like this that present the easy way out. If you were commited to long term meaningful change, you might already be there. I bet you weren’t expecting someone to tell you the truth, were you?

Step 2
Change your thinking and stop worrying about what everyone else is doing.

“The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time. ”
~Henry Ford

Keep with your new path towards financial education. Can you drastically change your financial situation in 90 days? Of course… but not without knowledge and actions. Focus on mastering yourself.

Step 3
Make a long term plan of action that you can stick with. Without real goals, you’ll never get there. While I can teach you to make upwards of 6 figures per year through real estate, you’ll need a plan.

“Give me a stock clerk with a goal and I’ll give you a man who will make history. Give me a man with no goals and I’ll give you a stock clerk.”
~JC Penny

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The Top Ten Marketing Techniques to Magnetically Attract Motivated Sellers

Author: theinvestortoday / Category: Articles

If you’re going to make a lot of money for a long time through real estate investing , there’s just no way around it. You need to master marketing. The best techniques will work to consistently and magnetically attract motivated sellers to you.

Understand This:
If you don’t have a consistent stream of motivated sellers calling you every week, then you don’t have much of a real estate investing business at all, do you?

Many of these techniques are free and you should at least begin with these immediately. All of these techniques work to bring sellers to you. As you master your marketing campaigns and generate a lot of money from deals, you can outsource these tasks to let your leads come to you on autopilot.

10. Expired/Expiring M.L.S. Listings

When listings expire on the MLS, you’re going to see a whole lot of the good, the bad, the ugly and oh yeah, the really really ugly. However, scattered through those listings will be some quality deals and some sellers who are motivated enough to work with you. A good realtor will provide these to you if you offer a fee per property you close on.

Approximate Cost:
$0 Up front, $500 per closed deal.

9. Online Classified Sites


There’s really two different ways you can use online classified ads to generate your leads. You can post your “We buy houses” ad amongst the homes for sale. However, you will have to be diligent in reposting it as it will get taken down consistently and often. Alternately, you can just copy and paste multiple sellers’ emails and send them the same “We buy houses” or “We do short sales” email. Use the “bcc” (blind carbon copy) line for inputting the email addresses so that sellers don’t see just how many people you’re really sending your ad to.

Approximate Cost:
Free

8. Business Cards

You should use every available opportunity to pass out your “We buy houses” business card. It works a lot like a fridge magnet in that, until you fridge is broke, you don’t call. When they need to sell their house, they’ll call you which may not be for months later. People know people and business cards are a great way to network. Hand them out at the grocery store, Starbucks and all the other places you visit. Simply ask that person about their job and when they return the question, hand out a business card with it.

The single best person to give your business card to is the mailman who will see many vacant houses on his or her travels which usually translates to a motivated seller. Do all the mail carriers in your city have your business card? Why not?

Approximate Cost:
If you shop around, business cards will cost you less than $20 and they are well worth the investment.

7. Classified Ads in the Freebie Newspapers

A lot of motivated sellers need to pinch pennies at every corner. One of the great ways to reach them is with an ad next to where they will be clipping coupons from the freebie marketing newspapers.

Approximate Cost:
$50-500/edition but it will vary depending on your local area.

6. Classified Ads in the Mainstream Newspaper

It’s been my personal experience that sellers don’t tend to view the “real estate wanted” section and so if you can convince the newspaper, you should get your “we buy houses” ad in amongst the FSBO listings. It works because they always open it to try and see their own ad and in searching through to find it, they’ll often find you in that search. If you can’t get them to put your ad in that section, the “money to lend” is another great section motivated sellers will use. Often, their first consideration is to try and refinance even if it is not possible.

Approximate Cost:
$100-2500/month depending on your local area.

5. Mortgage Brokers

There are tons of motivated sellers who are overleveraged calling mortgage brokers all day every day. Especially, if you do short sales, these are a great group of people to network with. There will be some rapport building required but it will be well worth your initial efforts. They may not turn over the sellers to you directly but if they advise your clients about your services and provide your contact information for you, that’s just as good.

Approximate Cost:
- Either you can pay them $500/deal you close
- Alternately, I recommend you simply offer that either you or your end investor will use them to obtain a mortgage when buying the short sale so that they will make their commission from that seller. In which case, the approximate cost is $0.

4. Flyers

You want sellers to call you without you actively pursuing them at every corner. Without a means of doing that, you won’t get paid. You should take advantage of every opportunity to post up an ad with pull off tabs. Make sure to take off 2 or 3 so it seems as if people are already calling you. It has a profound psychological effect when they don’t think they are the first person. Include your contact number on the main ad too in case all the tabs get taken. Ask around and see who will let you put these up. Make sure to target these places.

- Unemployment office
- Grocery store bulletin boards
- Laundromats
- County courthouse bulletin board
- Convenience stores
- Factory bulletin boards (this works in my area but may not be an option in your area)

Approximate Cost:
$10-20 depending on just how many you photocopy or print.

3. Bandit Signs

There’s a consensus with many investors that you need to spend a lot of money having a sign complete with a pole and official looking information. I don’t necessarily agree with that. We’re bombarded with so much traditional advertising that you always notice those “yard sale” signs because they’re different. That’s why our bandit signs intend to accomplish the same thing. Tape a bright color paper sign to a pole or tree at a busy intersection with “We buy houses” and your number, that’s it. What most yard sale signs don’t get is that your sign must be visible from the road so make sure it’s legible from at least 100 feet away.

Approximate Cost:
$20

2. Direct Mail

Take the time to head down to the county courthouse and get a “lis pendens” list. If you can get a probate listing, that is an asset as well. Ask around at your county courthouse because they are both real estate investing goldmine.

Some investors believe that you should send postcards and other investors believe that you should include a void check visible through your envelope. I believe that your ad just has to be different. We get so much junk mail that either postcards, visible void checks or handwritten (and then photocopied) letters will work. The bottom line is that it must get opened and it needs to be different from every day junk mail to have that accomplished.

Approximate Cost:
- $0.50-$1.50/mailout depending on type and quantity sent
- Search the people on that list using the online phone book and call them for free.

and finally…

1. Calling FSBOs

I’m amazed still at how many investors are either afraid or don’t see the value in calling FSBO ads. I was able to do over 40 short sales in just over 3 months from simply spending a few hours every day calling FSBO ads. Before I knew anything about creative marketing and having your business run on autopilot, I knew how to get leads for free using this method. It really works.

Approximate Cost:
Free

Can you pick out the motivated sellers on the phone?

In all these cases, you’re going to need to determine just which sellers are actually motivated. You should say something like the quotations in blue.

“Mr./Mrs. Seller, I’m calling about your property on 123 ABC Road. Can you tell me a little about the property?”

[Seller talks and you just be quiet and listen]

“Mr./Mrs. Seller, it seems like a nice place. How come you’re selling it?”

Unclear answer = Ask again another way. “Mr./Mrs. Seller, and what are you planning on doing if it doesn’t sell?”

Unmotivated answer = “Ok well that’s not what I do. I buy properties from owners who really need to sell and I help them out of those tough situations. If you find yourself in that situation in a few months, don’t forget to call me back. Thanks for your time. Bye.”

Motivated answer = Schedule appointment and close when you meet them. Get paid and do this all over again.

If you don’t have motivated sellers calling you consistently, your journey as an investor will be tough irrespective of how well you know your techniques. Real estate investing will make you rich if motivated sellers are calling you off the hook. The choice to build the strategic marketing campaigns that will make that happen is up to you.

You stay classy San Diego.

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