The Key To Success in Real Estate Investing
We meet many investors who are looking for a magic pill. They think there is a magic sentence; a special program; the perfect boot camp; the easy way to find deals. Folks, I have to tell you, there is no magic pill. You can be successful if you’ll do one thing: WORK! There are an unlimited number of foreclosures every single month. The number of homeowners who needs help is mind-boggling. In most large cities, as many as five hundred foreclosures are filed every week. This doesn’t include the homeowners who save their property before it hits public record.
Do you know what the real key to success is? It’s good communication skills. Seriously! If you can’t talk to homeowners and bankers, how do you expect to close deals? We have been studying NLP: Neuro Linquistic Programming. NL…What? NLP is the way you communicate with others. It’s simple folks, the better you communicate, the easier the deals come.
NLP is cause and effect language. It uses patterns of speech and words in the correct group to persuade others to see things your way. Here is an example: You could ask a homeowner, “Will you sell your property to me?” Or you could say the same thing using NLP. It sounds like this: “Mrs. Homeowner, when you decide now to work with me and we get your property sold, you’ll know you made the right decision. Let’s do the right thing and sign this agreement now, so we can get you what you want in the time you want it. Won’t that be great!” Doesn’t the second sentence sound better? It’s embellished language and works remarkably well.
In our second sentence, we used “embedded commands.” These are commands within the sentence that call homeowners to action. Can you guess the embedded commands? They are: decide now, work with me, get your property sold, do the right thing, and sign this agreement now. By adding just a few commands to your presentation, you’ll be able to close more deals.
Here are a few of our favorites: work with me, sign this agreement now, decide now, trust me, buy now, accept this offer, make a commitment, convince yourself, postpone the sale date, motivate yourself, take the short sale, get it approved, and begin to realize.
You might be thinking, “How do I begin to use these commands in my communication?” It’s easy folks, plan a presentation, write several basic sentences, and more importantly, practice. Here are a few examples: “When you decide now to accept this short sale, you’ll begin to realize that working with me is easy. I close my deals in record time, which makes you look great to your boss.” Here is another: “Mrs. Homeowner, you have to convince yourself that working with me is the right thing to do. Let’s sign the agreement so you can start sleeping well again. Won’t that be great?”
NLP takes practice to be good at it. We truly believe it is the difference between earning $100,000 a year and $500,000 a year. Which would you rather earn? We’re sure most of you answered $500,000. Fellow investors, have you taken the time to determine your numbers? If you sit face-to-face with a homeowner, how many deals do you get under contract? We get seven out of ten and we are certain it is because of our communication skills. With proper communication skills, you too can close seven out of ten deals.
Without proper communication skills you might close two out of ten. If you are getting two out of ten homeowners to contract, look how many more people you have to sit down with just to get the same seven deals we get. We can speak to one hundred homeowners and get seventy contracts. Likewise, you speak to one hundred homeowners and only get twenty to contract. Which would you rather do? We agree, seventy. Look how much more money you can earn from the exact same work?
Folks, take time to learn how to communicate. Read a few books on NLP, attend sales seminars, invest in books that teach how to close deals, and take the time to really listen to your homeowners to see how you can be helpful. With the right words and the right attitude, you’ll make millions! We do!
Can anybody suggest some titles of good NLP books?
http://www.biotactics.com/Celebrus/celebruscoachNLP.htm
As well as a generic search for "Neuro Linquistic Programming" on Yahoo turned up several sources of great information.
Good luck...
Hello, we are first time homebuyers looking to buy a house listed at 109,900 . It is a HUD home and is worth (as is) about 75,000 but has the potential to be a 1/2 million dollar house. We are in need of a way to get a loan, grant or other financing to help fix it up. It is a repossesed house that needs major TLC. It needs drywall and flooring in 10 of 11 rooms, which also means paint, trim and the like, of course. So we are looking at big money to help this incredible house be all it can be. It's really amazing. Does anyone know of something we can look into in the ways financing to fix it up. We can get the loan to buy it no problem but need help fixing it up. Any help would be greatly appreciated! Thank you in advance for your time! Carrie
if financing is no problem, u should b able to get rehab credit tacked onto the loan. basically, u increase the size of the loan based on u'r promise to the lender that u will use the excess money to improve the house.
Proceed with caution on HUD homes and I'm telling you this as a REALTOR and a HUD Broker. Not that they can't be good deals out there -- my first purchase was one and I made over $100K. Recently, HUD homes are being bid up WAY above their "listed" price and people are buying fixers at turnkey prices because they are caught up in winning the bid. Check in your local area to see the results previous winning bids on HUD properties and you can see that properties sometimes go for $100K+ over asking. In CA, the main site to check is run by goldenfeather. As far as fix-up loans, check into the FHA 203K loan-- it will require research for you to do and it is a pain as it is a government loan with lots of paperwork; however, it does allow you to put 3% down on the after repaired market value (doled out as it's being fixed up) up to a cap amount (check limits for your area.) A word of caution, if you overbid on a HUD home, you have to make up the difference between the overbid and the list price with this and many other type of loans which can be quite costly. There are also various fix-up loans that may be less hassle for you. Another word of warning HUD properties are totally "AS IS". You can't go after the government if something is wrong so get it inspected (you have a few days after you win the bid to do this before putting down your deposit). The hardest part with HUD homes is winning the bid. The second hardest is financing. Many lenders have stopped lending on HUD properties altogether so it may difficult to get a loan unless it's in decent shape. Good luck. If it's a true bargain, you should be able to find financing someway but be prepared to lay some money out.
Well, thank you very much but we have decided not to proceed with this home, we were finally told what happened to the home and it was that the bank payed 22,000 dollars (yes, thousand) to remove what we were told was a "minor mold problem" Well, come to find out it was black mold. Well, whether it is gone or not, I am not taking the chance with my daughter, the smallest amount will not effect an adult but that same amount that doesn't effect us can cause bleeding lungs and death in toddlers. My daughter will be two in October. I would never take that chance. Anyhow, thank you everyone VERY much for all of your time and help. And if anyone is looking to buy a hell of an investment, let me know, I will give you the link to pictures and the description, etc. The listing realtor said he might be convinced to take as little as 75,000 for it and honest to God, it would be worth hundreds of thousands with just carpet and drywall. Anyways, thanks for your time, everyone, I greatly appreciate it!! Carrie
find a contractor and split profits...problem solved