Think and Grow Rich
Think and Grow Rich
The Science of Getting Rich
The Science of Getting Rich

Coach’s Response: What Are Your Four Answers?

As the market improves, I have more and more people coming to me for coaching. I am excited about this because it means that you are taking responsibility for your success. You are reading my articles, and you are talking with me to achieve what you want in your life.

One thing that I continually ask new investors to do is reflect on each deal, each interaction, each transaction. This allows you to see what was successful so that you can apply it again and thus achieve even more success.

Here is what I have found that will make our relationship even better (and thus your experience and profit even better): ANSWERS.

Before I can truly help you, there are…

Four Answers You Must Know

  1. How much Money is in it for YOU?
  2. What are you buying?
  3. What is the owner’s story?
  4. What is the area?

You MUST have these 4 questions answered
BEFORE I can help you make a deal.

Recently someone I was coaching came to me with what he thought was a great deal.

“That’s exciting!” I said. “Tell me about the property. What are rents and house prices in that area?”

“Well,” he said, “I’m not sure yet, but the house is a great deal.”

“Okay,” I said, “How much money do you think you’ll have to put into it?”

“Only $30,000,” he replied. “At least that’s what I think. I haven’t put all of the numbers together yet.”

“I see,” I said, thinking about the area where the house was. “Where will you get this money?” I asked. “Once you buy the house, where will you get the money for renovation while it sits empty?”

“I’ve got some ideas,” he replied. “I’m going to ask a few people.”

You see, in this kind of interaction, I can be only one kind of coach: the kind who says, “You need more information.” There is not much more I can offer even though I would like to help him.

What if he had come to me with the questions already answered? What if we had been able to sit down and look at the profit possibilities?

Then the coaching I could offer would show him if this was a deal or not. That is the kind of coaching that will offer you the most valuable information, and that is the kind of coaching that I want to give you.

Your Wealth Starts With You

In order for me to support you in your wealth building model, I need information—and so do you! Your information will be answers to the 4 Questions.

Once you gather information, you can send it to me or talk to me at the weekly meeting so that we can decide on your best plan of action. Please answer each one carefully. **A more complete breakdown of these questions is provided in the attached worksheet, but this will give you a start.

The Money: How Much Is In It For You?

  • Why do you think this is an Excellent Deal? (not just a good deal: an EXCELLENT deal)
  • Who are your potential buyers/renters?
    • Do you have a current list of those customers?
  • What is your fee?
  • How long will it take for you to get paid?
  • What are the risks?
    • How much of a risk can you afford to take?
    • Do you have the capital to make payments until you can start making money?
  • Do you need a partner to pull this off?
    • What are you bringing to the partnership table?
    • What is your estimation of an equitable split?
  • How much money will it take out of your pocket?
  • How much total profit are you going to make?
  • What is your minimum ROI?
  • What is your Exit Strategy?

The Property: What Are You Buying?

  • How many beds and baths are there? Square footage of the house?
  • What are the repairs required? How much will this cost?
  • Is it occupied?
  • What are the taxes on the property?
  • What is the insurance?

Owner: What is the Story?

  • Why is the owner selling the property and how motivated is he?
  • Does he have a deadline?
  • Will he do owner financing?
  • Is he behind on taxes or payments? If so, how far behind?
  • Are there any title issues? Tax liens?
  • How much does he need to make on the deal?
  • What is the current monthly payment? The current interest rate?
  • What is the bottom-line price?

The Area: What is the Area?

  • What are the comparables in the area?
    • Are there any houses being built?
    • What is their price range?
    • How many have sold recently?
    • Do you have an appraisal?
    • What is the rent range in the area?
  • What is the area like?
    • How good are the schools?
    • Is it convenient? (Grocery stores, public transportation, etc.)
    • Is the house located on a corner? On a busy street? On a large lot?

Your best way to success starts with a plan and a coach, and I can be that coach. I hope that you’ll gather your information and contact me so that we can work together.

Russ HinerRuss Hiner is an active real estate investor, coach and mentor. Russ is currently the leader of the Atlanta REIA Creative Deal Structuring Group and co-leader of the Atlanta REIA Mastermind Group. Russ also teaches several Atlanta REIA Workshops throughout the year on a variety of real estate investing topics such as Negotiations, Wholesaling 101, Wholesaling 401, Real Estate 101, Property Management and more.

Contact Russ Hiner

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7 Deadly Mistakes You Can Avoid – Part 3

(This article is continued from Part 2 in the August 2013 Edition of The Profit Newsletter.)

  1. Lack of action. There’s an old saying that goes “Even a turtle won’t get anywhere until he sticks his neck out.” Another old saying (that I made up) is “You’re never going to get rich sitting on your behind and waiting for it to come to you.” You have to make it happen. You have to get things started. You have to put the wheels in motion. And if they get stopped, guess who has to get them started again. You guessed right.

    Movement, action, activity, progress… they’re essential in any successful business. Without activity on your part, nothing positive will happen for you. It starts with that first call, that first conversation with a seller, even the first visit to a Realtor. But your ship can’t come in if it never gets launched.

    By action, I don’t mean running in place. Sure, you can go to the seminars and listen to the tapes so often you memorize everything I’ve ever said. You can acquire all the tools you need to do this business. But then the time comes to fish or cut bait and you find yourself standing by the creek bank watching the water flow by. My friend, all the education in the world is worthless until you put it into practice.

    The best time to start is now. And I mean right now. I want you to get up after you’ve finished reading this newsletter and do something that will get you going on your first deal. Call a Realtor for leads. Call a couple of sellers in the classifieds. Drive around looking for FSBO signs, or place your own “I Buy Houses” ad in the paper. Just Do It. You’ll be surprised how taking a tiny step will propel you forward towards your goals. You see, any one action on your part can produce a result. Of course the more actions you take, the more results you’ll get.

  2. Wasting time with un-motivated sellers. They may be interesting. They may be wonderful people. They may have heartbreaking stories to tell. But if they’re not motivated to accept your offers, they’re wasting your precious time and sucking dollars out of your pocket. If you waste enough of your time waltzing around with people who aren’t serious about doing business, then you’re not going to be in business for very long. It’s just that simple. Trying to deal with unmotivated sellers is like trying to pick fleas off a dog. Neither you nor the dog is going to benefit.

    Unmotivated sellers will think up so many reasons “why not” and give you so much crap, you’ll soon become convinced this business doesn’t work for you, only for other people. I can’t stress enough that these are people that you must avoid like the plague. But to avoid them, you have to learn to recognize them, figure out their game and move on. If you have listened carefully to my courses, it shouldn’t take you more than five minutes to pre-qualify a seller.

  3. Chasing dead-end leads. Chasing dead end leads is very similar to dealing with unmotivated sellers and can be a tremendous waste of time and energy. Unfortunately, many people never really learn how to avoid it. Well I can solve this problem very simply. Pre-qualify every prospect that comes your way.

    I’ve found if you spend as little as five minutes getting pre-qualifying information out of a prospect, you may avoid spending hours and hours gathering details about a property you never have a chance of buying. And any time you can spend minutes to save hours, it’s like putting money in the bank. Some students of mine have a tendency to take a phone call from a prospect and rush right out to look a house hoping something will develop. Especially if business has been slow. They’ll be out there measuring for carpet and gathering useless facts before they even know if they have a chance to put the house under contract. What a crazy waste of time, especially when you know you should never leave your desk without a solid reason to do so.

    Properly pre-qualifying a prospect will help you to determine if further action is warranted. When making the initial contact with a prospect, you should ask yourself three questions to determine whether you can make a deal:

    1. Can I buy the house wholesale?
    2. Can I create a subject- to deal or seller financing or both?
    3. Can I option the house? If the situation doesn’t fit one of these three models, you don’t have a deal. It’s that simple. There is no reason for you to waste any further time on the conversation, much less traveling across town to look at a house you’ll never own.

    Five minutes is all it should take to determine if you can create a deal with the prospective seller. Of course, you’ll have to take the seller’s word on things like the condition of the house, mortgage balances, liens, judgments, etc. However, if the information seems reliable, and you feel the seller is motivated to pursue one of the three money-producing models we discussed above, then you should arrange a meeting and verify your assumptions about the viability of a deal.

When I leave my desk, my chances of putting a house under contact are about 80%. By the time I ease the old Mercedes out of the driveway, I’ve fully qualified my prospect and I know I won’t be just collecting a lot of useless facts.

So instead of being professional fact finders, we should get into the business of being professional offer makers. If you follow this pre-qualifying procedure on every lead, you’ll save yourself a lot of wasted, un-productive hours and you’ll start to find this business really coming together for you.

Ron LeGrandRon LeGrand is the world’s leading expert in residential quick turn real estate and a prominent commercial property developer. Ron has bought and sold over 2,000 single family homes over the past 30 years, and currently owns commercial developments in nine states ranging from retail, office, warehouse, residential subdivisions and resort

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