Steps to Success: Doing a Deal

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Steps to Success: Doing a Deal by Mind Map: Steps to Success: Doing a Deal

1. 1. Generate Leads

1.1. INbound (They Call YOU)

1.1.1. GOAL: Drive Calls to Your Phone/Clicks to Your Website

1.1.2. Direct Mail

1.1.2.1. Types Of Mailings

1.1.2.1.1. Yellow Letters

1.1.2.1.2. Postcards

1.1.2.1.3. Lumpy Mail

1.1.2.1.4. Oversized/ExpressMail Envelopes

1.1.2.1.5. 2-Window Envelopes

1.1.2.2. To Targeted Lists

1.1.2.2.1. Absentee Owners, FSBO, NOD, Free & Clear, Large Equity, Expired Listings, Zip Codes, Carrier Saturation Routes, Vacant Houses, etc.

1.1.2.3. Have the right message match the market & media

1.1.2.3.1. Yellow Letters: Invitation Envelope, Handwritten everything, personalized

1.1.2.3.2. Postcards

1.1.3. Bandit Signs

1.1.3.1. Place in target areas

1.1.3.1.1. 3-4 lines, simple message: HEADLINE, BENEFIT, CALL TO ACTION

1.1.4. Websites

1.1.4.1. Your Own

1.1.4.1.1. Simple URL (Domain name) (Ex."FredBuysHouses.com")

1.1.4.2. 3rd Party

1.1.4.2.1. Craigslist

1.1.4.2.2. Facebook

1.1.5. Radio

1.1.5.1. 30 or 60 second spot

1.1.5.1.1. Use a proven script

1.1.5.1.2. Use a great voice that commands attention

1.1.5.1.3. Negotiate w/ local station OR use Media Buyer

1.1.5.1.4. Always Test Results

1.1.6. TV

1.1.6.1. Have it professionally produced

1.1.6.1.1. See "Radio"

1.1.7. Newpapers, Magazines, etc.

1.1.7.1. "Copy" a proven ad

1.1.7.1.1. Test results

1.2. OUTbound

1.2.1. Craigslist, Zillow

1.2.1.1. Search for houses that fit your criteria in your target area

1.2.1.1.1. Call & get PISH filled out

1.2.1.2. Get daily property feeds emailed to you

1.2.2. Other online sites

1.2.2.1. FSBO.com, owners.com, redfin, forsalebyowner.com, etc.

1.2.2.2. Get Automatic Daily Feed: ByOwnerDaily.com/investor

1.2.2.2.1. Get daily property feeds emailed to you

1.2.3. Get yourself set up on Gold Club

1.2.3.1. Get daily property feeds emailed to you

1.2.4. Call FSBO Ads from newspapers

1.2.5. Local FSBO Sellers

1.2.5.1. Driving around town? See a sign? Take a picture & write the address & # down!

1.2.5.2. Find Local Bird Dogs to BRING you deals!

1.2.5.2.1. You'll have to find & train them.

1.2.6. NETWORKING!

1.2.6.1. Professionals

1.2.6.1.1. Real Estate Agents

1.2.6.1.2. Mortgage Brokers

1.2.6.1.3. Title Companies

1.2.6.1.4. Real Estate Attorneys

1.2.6.1.5. Divorce Attorneys

1.2.6.1.6. Immigration Attorneys

1.2.6.1.7. Probate Court/Attorneys

1.2.6.1.8. Appraisers

1.2.6.1.9. Home Inspectors

1.2.6.1.10. Bankers

1.2.6.2. Friends, Family, People

1.2.6.2.1. Ask "Who do you know who...?"

1.2.6.2.2. Use the "5-Foot Rule"

1.2.6.2.3. Remember: You're only PRESCREENING!

1.2.6.3. Organizations/Meetings

1.2.6.3.1. REIA

1.2.6.3.2. Meetup Groups

1.2.6.3.3. Chamber of Commerce

1.2.6.3.4. BNI

1.2.6.3.5. Facebook Groups

1.2.6.3.6. Google Groups

2. 2. Prescreen the Leads

2.1. Fill Out the Property Info Sheet (PISH)

2.1.1. Who Does This?

2.1.1.1. VA (Virtual Assistant)

2.1.1.2. Staff Member

2.1.1.3. You

2.2. Essential Information Needed: ARV, ASK, OWE + PMT, REP, WHY, WHEN

2.2.1. $ARV: After-Repaired Value (What house is worth in tip-top shape)

2.2.2. $ASK: Asking Price (What do they want?)

2.2.3. $OWE: How much do they Owe on any underlying liens/mortgages?

2.2.4. $PMT: What is their monthly Payment? PITI

2.2.5. $REP: Repair cost - How much to fix it up?

2.2.6. WHY: WHY are they looking to sell now? (Motivation!)

2.2.7. WHEN: When would they like to have it sold? (Motivation!)

2.3. Probe for Flexibility/Motivation

2.3.1. Ask: "Would you...?"

2.3.1.1. "Sell for what you owe?" (if little/no equity) =SUBJECT TO

2.3.1.2. "Consider taking equity in monthly installments?" (if large equity/free & clear) =OWNER FINANCING

2.3.1.3. "Consider a Lease Purchase?" (Fall back if no to above) =LEASE PURCHASE

2.3.1.3.1. BETTER PHRASE: "Consider RENTING for a little while and THEN selling?" =LEASE PURCHASE

2.3.1.4. "Be flexible in your asking price? Or is it firm?"

2.3.1.4.1. If they're flexible, can sell for a discount for all cash, and want to close quickly =CASH

3. 3. Construct & Present the Offers

3.1. "Closing Calls:" Call the Seller back

3.1.1. Use the 4-Step Process:

3.1.1.1. 1. Build Rapport

3.1.1.1.1. The more they feel comfortable with you, the more they'll work with you

3.1.1.2. 2. Verify the info from the PISH

3.1.1.2.1. "I have your information that my assistant gave me & I see that..."

3.1.1.3. 3. Use that info to Construct & Present Offer

3.1.1.3.1. "Based on what you're saying...What if there was a way that we could..."

3.1.1.3.2. USE THE SCRIPTS!!! (Essential)

3.1.1.4. 4. Set the Next Step

3.1.1.4.1. a. Possible Deal?: Appointment-See the house

3.1.1.4.2. b. Not now?: Follow up later-1-2-3 weeks later

3.1.1.4.3. c. ONLY Want all cash/retail?: Turn over to Realtor (partner)

3.1.1.4.4. d. Unreasonable asshole?: Trash

3.1.2. Use these 5 Core Principles

3.1.2.1. 1. Be CONFIDENT

3.1.2.1.1. People only want to do business with people they feel are able to perform. Make them feel like you can!

3.1.2.2. 2. Be a CONSULTANT

3.1.2.2.1. Make them feel like you're on THEIR side - like you just want to help. Be like a consultant.

3.1.2.3. 3. SPEAK the truth. SEEK the truth.

3.1.2.3.1. Always be honest. Tell them you're going to be honest with them & you expect the same from them. Fair enough?

3.1.2.4. 4. QUALIFY your prospects

3.1.2.4.1. Three Types of Sellers:

3.1.2.5. 5. Keep things MOVING FORWARD

3.1.2.5.1. They'll try to stall you, give you BS & excuses. That makes the cycle longer, delaying your payday/solving their situation.

3.1.2.5.2. "What if I could...(Do A, B, C) so that you could (BENEFIT 1, 2, 3)? Would something like that work for you...or maybe not?"

3.1.3. PRO TIPS:

3.1.3.1. Focus on the PAIN

3.1.3.1.1. 1. Past

3.1.3.1.2. 2. Present

3.1.3.1.3. 3. Future

3.1.4. How to PRESENT Your OFFER:

3.1.4.1. Use the Magic Words, "What If..."

3.1.4.2. "What will you do if you don't sell the house? Would you just have to rent it out?"

3.1.5. To Summarize:

3.1.5.1. Follow the 4=Step process & use the other elements

3.1.5.1.1. Find out what their PAIN is (if any) & AGITATE IT

4. 4. Follow Up

4.1. Go to Appointment

4.1.1. Be prepared. Show up on time. Bring paperwork

4.1.2. Paperwork: SPASA, Lease Option, Authorization to Release Info

4.1.2.1. 1. SPASA: Standard Purchase & Sales Agreement (aka "P&S")

4.1.2.2. 2. Lease Option and/or Option

4.1.2.3. 3. Authorization to Release Information

4.1.2.3.1. For sellers with underlying financing/loans on the property.

4.1.2.3.2. Gives you permission to talk to the bank on the sellers' behalf.

4.2. Call back later

4.2.1. Be organized

4.2.1.1. Use spreadsheet

4.3. Turn over to Realtor

4.3.1. Have a couple local agents to network with

4.3.1.1. Split the commission when the deal closes

4.3.1.2. Or just sell leads to them

4.3.1.2.1. As "Marketing Fee"

5. 5. Close Quickly

5.1. Have all paperwork set up with attorney/title company

5.2. Know what your Exit Strategy is before you go into the deal

5.2.1. Wholesale?

5.2.2. Lease Purchase to Tenant Buyer?

5.2.2.1. Pretty house, ready to move in

5.2.2.2. Work For Equity - Fix it up

5.2.3. Sell with Owner Financing?

5.2.4. Rehab & Retail for all cash (loan)?

5.2.5. Or just move into the house yourself?

5.3. Dictate how you expect the deal to go

5.4. Have your tenant buyer lined up

5.5. Close on the deal

5.5.1. Fund it

5.5.1.1. Private Lender

5.5.1.2. Hard Money Lender

5.5.1.3. Seller Financing?

5.5.1.4. Use funds from Tenant/Buyer to pay Seller

5.5.2. Have funds from buyer

5.5.3. Get all paperwork signed

5.5.4. Collect Your Money!

5.5.5. Go to the Bank

5.5.6. Celebrate with your family

5.5.7. Repeat the whole process often

6. First: Identify types of houses & areas you want to invest

6.1. It all starts here!!

6.1.1. Can do online research

6.1.1.1. Zillow, Redfin, Realtor.com, Listsource.com

7. COMING SOON: NEW MINDMAP FOR SELLING HOUSES!! (Stay Tuned)