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

1.1.1. Direct Mail

1.1.1.1. To Targeted Lists

1.1.1.1.1. Postcards

1.1.1.1.2. Yellow Letters

1.1.1.1.3. Lumpy Mail

1.1.1.2. Types of Lists: Absentee Owners, FSBO, NOD, Free & Clear, Large Equity, Expired Listings, Zip Codes, Carrier Saturation Routes, Vacant Houses, etc.

1.1.1.3. Have the right message match the market & media

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

1.1.1.3.2. Postcards

1.1.2. Bandit Signs

1.1.2.1. Place in target areas

1.1.2.1.1. 3-4 lines, simple message: HEADLINE, BENEFIT, CALL TO ACTION

1.1.3. Websites

1.1.3.1. Your Own

1.1.3.1.1. Simple URL

1.1.3.2. 3rd Party

1.1.3.2.1. Craigslist

1.1.3.3. Facebook

1.1.3.3.1. Advertise here

1.1.4. Radio

1.1.4.1. 30 or 60 second spot

1.1.4.1.1. Use a proven script

1.1.4.1.2. Use a great voice that commands attention

1.1.4.1.3. Negotiate w/ local station OR use Media Buyer

1.1.4.1.4. Always Test Results

1.1.5. TV

1.1.5.1. Have it professionally produced

1.1.5.1.1. See "Radio"

1.1.6. Newpapers, Magazines, etc.

1.1.6.1. "Copy" a proven ad

1.1.6.1.1. 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

1.2.2. Other online sites

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

1.2.3. Call FSBO Ads from newspapers

1.2.4. NETWORKING!

1.2.4.1. Professionals

1.2.4.1.1. Real Estate Agents

1.2.4.1.2. Mortgage Brokers

1.2.4.1.3. Title Companies

1.2.4.1.4. Real Estate Attorneys

1.2.4.1.5. Divorce Attorneys

1.2.4.1.6. Divorce Attorneys

1.2.4.1.7. Probate Court/Attorneys

1.2.4.1.8. Appraisers

1.2.4.2. Friends, Family, People

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

1.2.4.2.2. Use the "5-Foot Rule"

1.2.4.2.3. Remember: You're only PRESCREENING!

1.2.4.3. Organizations/Meetings

1.2.4.3.1. REIA

1.2.4.3.2. Meetup Groups

1.2.4.3.3. Chamber of Commerce

1.2.4.3.4. BNI

1.2.4.3.5. Facebook Groups

1.2.4.3.6. Google Groups

2. 2. Prescreen the Leads

2.1. Fill Out the Property Info Sheet (PISH)

2.1.1. VA (Virtual Assistant)

2.1.2. You

2.1.3. Staff Member

2.2. ARV, ASK, OWE + PMT, REP, WHY, WHEN

2.3. Would you...?

2.3.1. Sell for what you owe? (if little/no equity) --SUBJECT TO

2.3.2. Consider taking equity in monthly installments? (if large equity/free & clear)--OWNER FINANCING

2.3.3. Consider a Lease Purchase? (Fall back if no to above)--LEASE PURCHASE

2.3.4. Sell for a discount if we pay you all cash & 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..."

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. Generally, sellers fall into 1 of 3 categories.

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.

3.1.3. 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..."

3.1.4.1.1. "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?"

3.1.5. 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 (f 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. GOAL: Drive Calls to Your Phone/Clicks to Your Website

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

7.1. It all starts here!!

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