Tag Archives: real estate agent

8 Tips for Real Estate Investing Success

April 28, 2016 nit Leave a comment

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As you prepare to become a successful real estate investor, I encourage you to take the following tips into consideration. They have helped me greatly as I have navigated my way through the world of real estate–and life in general. I hope these tips will make just as big of an impact on your life as they have had on mine.

Tip #1: Create a game plan.

Decide what you want to accomplish and outline the steps that you must take to get there. Who will be involved? How will you meet them and gain their cooperation? How much time will it take? Where will you find this time? How much will it cost, and where will you get this money? What’s the risk? How will you handle it?

This plan will serve as your guide each day, so you need to get it right. That brings us to the next tip…

Tip #2: Have an expert review your plan.

The first real estate investing plan I created involved me single-handedly buying 100 houses in a year. And it listed several different marketing strategies that were completely cost ineffective. I had a friend of mine (who isn’t even involved in real estate) review the plan, and he said it looked good. How silly of me!

About eight months into working this over-reaching and misguided plan, I had an expert investor review it. He tore it apart, and together we reconstructed a better plan with more realistic goals (buy 12 houses, not 100) and a more effective marketing plan.

Shortly thereafter, I bought 6 houses, and I actually felt good about my progress. Six out of twelve feels much better than six out of 100!

Tip #3: Don’t give up.

The life of a new real estate investor is filled with countless highs and lows. You’re on a high when you think you have a property all locked up to purchase, and then you hit a low when it suddenly falls though at closing.

Or you’re on a high when you finally do close on that house, but you hit a low when you hit a 3-week dry spell and it feels like you couldn’t get a seller to agree to your price–even if you paid double.

I hit a personal low when I was jobless and $5,500 in debt from fruitless marketing attempts. But I got up early each morning and worked toward my goal of financial freedom. Even though a voice in my head told me to give up, I never did.

That’s probably the #1 key to success: Don’t give up. Even someone who’s as dumb as a box of rocks will eventually succeed if he doesn’t give up.

Tip #4: Take baby steps.

When you break it all down, big goals, big dreams, and big plans are nothing more than a series of miniature action steps or “to do” items. When you dissect the daily life of a successful investor, you’ll find that he or she does 8 to 12 things each day that are real estate related.

One item might be “Watch DVD #5 in the new investing course I bought.” Another item might be “Call the title company about the name on the warranty deed” or “Meet the inspector at the house on Watson Street.”

All of these little tasks each day add up to what is, or what eventually will be, a large and highly profitable real estate investing operation. So don’t toss that “to do” list by the wayside, thinking that your small efforts today don’t mean much. They mean everything.

Tip #5: Become comfortable with discomfort.

I was actually nervous at the first real estate investing meeting that I attended. I was wondering if I would say something stupid or if I wouldn’t fit in. After all, most of the investors in the room were 40 or 50 years old, and I was 22.

But by the third meeting I attended, I became comfortable with the crowd. Had I quit after the first meeting, I would have missed out on the very information that enabled me to buy so many properties.

I’ve learned that one of the biggest keys to success is persisting though uncomfortable situations until they eventually become comfortable. This is where true growth occurs.

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Tip #6: Do what you say you’re going to do.

As a real estate investor, your reputation means everything. They say it’s a small world, but the world of real estate investing is even smaller. So be honest, be courteous, and for heaven’s sake, do what you say you’re going to do. If you say you’re going to buy another investor’s house, by golly, you better move mountains–if that’s what it takes–to buy it!

Otherwise, your name will eventually become mud, and you’ll have a tough time buying from not only that investor, but just about every other investor in town. Believe me, I can count at least 10 local investors of the top of my head who I will NOT do business with because their word means nothing. And I know several other investors who won’t deal with them either. You DO NOT want to be black listed.

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Tip #7: Be on time.

Showing up late is just about one of the most disrespectful things you can do to another real estate investor, inspector, contractor, or anyone for that matter. It shows them that you don’t value them or their time, and time is MUCH more valuable than money. Money can be replaced. Time cannot.

When someone shows up late for a meeting with me, they instantly lose credibility. And there are countless other investors who feel the same way I do. On the other hand, when an investor or business associate shows up on time or early, it makes me want to smile, reach out my hand, and strike a win-win deal.

So be on time. You’re much more likely to create trusted allies who can help you along your path to success.

Tip #8: Eliminate certain activities.

I’ll wrap up with one more tip that is closely linked to the first tip, “Create a Game Plan.” That game plan will involve a series of goals and steps or “to do” items that you must follow to become successful. But what many people don’t seem to realize is that for all of these things to happen, certain activities in your current schedule must be REMOVED.

For example, if you’re going to attend two real estate meetings and make five offers per week, what must go? Possibly TV time. Possibly a friendship. Possibly your workout plan. Of course, what has to go is unique to each of us, but you must realize that if you’re an extremely busy person, you’ll have to make some TOUGH sacrifices.

But these sacrifices are only for the short run. If you have to quit your exercise program to have enough time for real estate, for example, then so be it. You can resume in two years after you’ve achieved financial freedom through real estate. And you’ll have more time to exercise than ever.

Early on in real estate, I gave up friendships, exercise, sleep, vacations, and leisure time. How much you give up depends on how quickly you want to become financially independent.

It can be a tough to integrate all of these tips into your daily routine at once. So for now, I encourage you to focus on the one tip that you think can benefit your investing business the most. After you’ve turned that tip into a habit that’s part of your daily routine, then move on to the next. Keep moving forward and never give up, and you’ll be a successful and financially free investor in no time!

Credit to Doug Smith

Doug Smith has bought and sold over 40 properties using almost every method–wholesaling, rehabbing, landlording, subject to, lease options, and more. He is the founder and president of MyHouseDeals, a company that provides a constantly-updated list of bargain-priced investment properties in some of the nation’s largest metro areas.

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Real Estate Know-Hows

7 Ways to Help New Agents Succeed

April 27, 2016 nit 1 Comment

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When prospective agents come into Matt Schwind’s office, he asks them why they want to get into the real estate business. Many say they love houses or HGTV, but those answers are red flags, says Schwind, managing broker for the Bettendorf, Iowa, branch office of Ruhl & Ruhl, REALTORS®.

“The real estate business isn’t about houses. It’s about people. And if you can’t communicate with people — not by text or e-mail, but face to face and on the phone — then this isn’t the right business for you,” he says.

A big part of Schwind’s job is to recruit and coach new salespeople. Unfortunately, a high percentage of new agents barely make it through their first year.

Schwind and other brokers have some tips on how owners, managers, and team leaders can help newbies buck the trend and make it through year one:

1. Emphasize to them that they’re starting a small business. “I explain to them that if they were going to open a coffee shop, they wouldn’t expect to make money for the first three to six months,” Schwind says. “Real estate is the same way.”

Saving enough money ahead of time or having another source of income (like a spouse’s salary) is the only way to actually make it through those lean times.

The top 10 percent of earners in real estate made $178,770 in 2014, according to the U.S. Bureau of Labor Statistics. The median annual wage was $43,430 in May 2014. But the lowest 10 percent earned less than $23,880.

“It’s a tough business. New agents have to be realistic. They probably will go backwards a little financially before going forward,” Schwind says. “You will give up about two years of your life to enjoy the next 10.”

2. Be realistic about prospecting. David Bracy meets with his new agents every Tuesday. They talk about prospecting methods, and he offers advice and ideas for staying on track.

“If they come in and tell me they only had three appointments that week, I already know what is going to happen to them in six months: They won’t be in the business anymore,” says Bracy, vice president and managing broker of the Koenig/Rubloff Realty Group of Berkshire Hathaway HomeServices Magnificent Mile and Gold Coast offices in Chicago.

New agents need to understand that they’re not going to get paid if they’re not producing, says Eric Bramlett, broker-owner of Bramlett Residential in Austin, Texas.

“They see the TV shows and are looking for a quick buck in real estate,” he says. “But you actually have to pound the pavement and make lots of cold calls.”

3. Endorse office presence. As much as technology allows agents to do business outside of the office, there is a huge disadvantage if they aren’t involved in the synergy of the office atmosphere, Schwind says.

“If they stop coming into the office, they aren’t engaged in the business,” he says.

Schwind encourages his new agents to come to the office at least 40 hours a week and attend all the company trainings his brokerage has to offer.

4. Consider setting up mentorships. By officially placing new agents side by side with senior agents, they’ll not only get on-the-job training but also connect with an established pro. Rookies can go out on home tours, assist at open houses, and tag along on listing appointments before they do it on their own, Schwind explains. Make sure the mentors are rewarded for their time too.

5. Value customer service first. Schwind doesn’t hang photos of his top salespeople in his office lobby. Instead, you’ll find pictures of his company’s top-rated agents in customer satisfaction.

“It’s one of the things we value highly,” he says. “Those rewards are given quarterly, and they can’t be bought.”

New agents are eligible for the award, which are based on customer surveys and feedback, and Schwind finds it motivates his team.

6. Teach them the ins and outs of open houses. An open house is an opportunity to meet potential clients, so tell your new agents to invite the neighbors, Bracy says. “Eighty-two percent of those who walk into an open house buy real estate in the next 12 months,” he adds.

Don’t talk about the dishwasher; instead, coach agents on how to get open house guests to talk about themselves, Bracy says. He gives his rookies a script and series of questions for interacting with open-house guests.

“They need to create the condition where that person is talking twice as much as they are,” he says. And for safety, Bracy always has multiple agents at every open house.

7. Help newbies connect with an experienced closing team. A new real estate agent and a new mortgage broker are a bad combination, says Bramlett. Ideally, a new agent should be paired with a closing team that can answer questions or quietly step in if they see a potential mistake.

“A good closing team will typically know more than their role in the transaction,” Bramlett says, adding that it’s a key part of giving new agents the tools and resources to stay on track.

“I can’t make a new agent be committed,” he says, “but I can show them the way.”

Credit to Lee Nelson

Lee Nelson is a freelance journalist from the Chicago area. She has written for Yahoo! Homes, TravelNursing, MyMortgageInsider, and ChicagoStyle Weddings Magazine. She also writes a bi-monthly blog on Unigo

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Real Estate Know-Hows

Agents: Stop Saying Buyers Are Liars

April 19, 2016 nit 1 Comment

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People naturally go through buying stages as their lives change. Whether they’re aging, gaining wealth, expanding their families, or just maturing in their tastes, each potential client is going through an easily recognized cycle. That cycle puts buyers into three categories: those who are starting out and are truly just looking; the ones who have decided they are definitely going to do something, but haven’t decided what yet; and the ones who have a clear idea of what they want, including their price range and other details.

Stage one buyers are just toying with the idea of making a change. They’re not trying to be coy when they give vague answers to your questions about what they’re looking for. They legitimately don’t know. Agents can put themselves in a position to win their business down the road by taking on the role of adviser and asking them questions that move them forward mentally.

In stage two, buyers have chosen to make a change. They’ve put their houses on the market or have decided not to renew their rental agreement. They’ve already made a verbal commitment to each other or to friends and family that they are going to buy. They don’t know exactly what they want, but they do know a change is coming. Agents can distill two or three different options to help them narrow the field.

In stage three, customers come to the table knowing what they want — their price range, the features they can’t live without, and a notion of the type of floor plan that meets their needs. They are definitively in the market, and it’s only a matter of who’s going to win their business.

When agents fail to win that business, too often their response is that “buyers are liars.” They write them off as unserious people only interested in wasting their time. In truth, agents who are surprised by a customer going a different direction most likely aren’t asking the right questions to get inside buyers’ heads. When agents aren’t aware of what their potential buyers are thinking, they are the ones wasting their own time with the wrong people, losing business in the process.

On the other hand, when agents find out which stage buyers are in, they can meet them there. They don’t need to talk about price range if the prospects haven’t even decided whether or not they need a change. In this stage, buyers don’t need to hear specifics. They need to first understand the how their lives will improve if they make a change. In stage three, they don’t need to be persuaded that a change will improve their lives. They already know that and that’s why they came to the agent. Stage three buyers need to know why the agent, community, or home is the right one for their specific situation.

It’s important for agents to spend time with buyers in all stages of the process. This way, they’ll have a healthy pipeline of prospects as potential clients move through the stages. If agents are ever surprised by a customer’s decision, coach them to identify customer stages. That will allow your agents to meet customers where they are so they can move them into the next stage (and subsequently, their next home).

Credit to Jason Forrest

Jason Forrest is a sales trainer; management coach; member of the National Speakers Association’s Million Dollar Speakers Group; and author of three books, including his latest, Leadership Sales Coaching. One of Training magazine’s Top Young Trainers of 2012, Jason is an expert at creating high-performance sales cultures through complete training programs. He incorporates experiential learning to increase sales, implement cultural accountability, and transform companies into sales organizations.

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