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We’ve got a shiny new blog!

Come visit our new blog at www.richdadeducationblog.com

Come visit our new blog at http://www.richdadeducationblog.com

 

Hello loyal readers,

Rich Dad Education is happy to announce that we have a brand new blog! We have redesigned our old blog and given it a new home at http://www.richdadeducationblog.com. Now, you can find all of our content on one convenient blog site that’s easy on the eyes.

In order to stay up-to-date with our weekly posts containing the best real estate investing, stock, and motivational convent, be sure to follow us at the new blog. After you take a look, send us a Tweet (@richdadedu) and let us know what you think about the new design!

Selling the Lease

groupSelling the Lease by Jim Aviza

With so many options available to renters and so many properties that are very similar, how can you get them to choose you over the competition?  Appeal to the emotional aspect of their housing needs.  Selecting a home is more than a matter of economics to renters.  As investors, we know how to determine market values for rental and purchases.  We’ve done our study of what people are willing to pay based on square footage, features, locations, amenities and so on.  But the one thing that can tip the scale in our favor is to provide an answer to their question, “Will I be happy here?”

From the start of working with your prospective renter, you should be building rapport.  Find out what their “triggers” are and use those to anchor them to your property.  Do they like sports?  There’s a great gym (or park) right around the corner.  Do they like cultural events?  Point out the theaters, galleries, museums, and other points of interest in the area.  Are they new to the area?  Talk about the wonderful people in the building, in the community or organizations they may want to join.  Do they like to cook or entertain?  Point out the counter space for food preparation, the openness of the floor plan for hosting gatherings.  Find out what their interests are and make it a point to turn features of your property into benefits they can envision as part of their future in that particular home.

They will also get a sense that you are interested in their happiness and that will carry over to liking you as well.  When people like you, they do business with you!   Remember to keep your relationship professional.  Do not blur the line between friends and a professional relationship.  Be personable, find out what they want and then help them see how your property suits their needs above and beyond the price, location and condition.

Expand Your Real Estate Empire

Real Estate Investing

How to Expand Your Real Estate Empire

In many parts of the United States, children have recently gone back to school after the summer break. It is a time for children to connect with old friends, form new friendships and learn new skills. It’s also a time for parents to breathe a sigh of relief for surviving the summer.

As real estate investors, we should look at our investing business as returning to school as well. It is a time to connect with old team members, find new team members, and learn new skills. These are the fundamentals that will help you expand your real estate empire. By focusing on just a few tasks, investing will become easier and easier and you will do more deals.

Let’s go into each of these a little further.

Connect with Your Power Team

While attending your training classes, you have heard us teach you about the importance of having a power team that assists you with various aspects of your business. Strengthening your team is one of the best things you can do on an ongoing basis to do more and more deals.

Real Estate Power Team

Some of the key players you will want to further your relationships with are real estate agents, lenders, and hard-money lenders.

Real estate agents are always bumping into deals and properties before they ever hit the market. But their value is far greater than just getting comparables. Use them right and they can really help you.

Here is another strategy on how to use real estate agents as a valuable resource for your business. When homes do not have enough equity, agents cannot sell them unless they do a short sale and that is a long qualification process. In any of these cases, the agent cannot list the property because there isn’t any equity for the owner to pay them a commission. You could benefit by having the agent refer that seller to you and you could structure a creative deal using your tools as an investor.

Lenders can also be valuable for the same reason. If the homeowner cannot refinance their property, they may be looking for creative alternatives to get out of the home so that they can move on.

Hard-money lenders are great resources to be constantly adding to your team. They give you more ways to finance deals should the need arise.

Find New Team Members

Even though you are a real estate investor, you need to understand that real estate is a people business — it is not a house business. You are constantly dealing with people, so the better you are at developing relationships, the easier your business will be.

The simplest way to expand your real estate empire is to constantly be growing new relationships. In addition to reconnecting with your team like mentioned above, you constantly want to be adding new team members too. Here are some of the relationships that you should always be developing, no matter how far along you are as an investor:

Wholesalers are great connections to develop as a real estate investor. Some investors struggle to find more deals to invest in. These connections are great to have because you can get people to find the deals and bring them to you. Wholesalers may not have the money or resources to put together the deal so they are looking for other investors who can. When you get several wholesalers that you work with, you start to develop a constant stream of potential deals coming your way.

One of the best places to find wholesalers is through real estate investing clubs. They are there looking for other investors that they can sell their contracts to.

Bird dogs are also great connections to constantly nurture. A bird dog is someone who refers a deal to you and you pay them a referral fee for the deal. Most people know someone (a friend, family member, or acquaintance) that needs to sell their home and they usually have the inside story. This is a great opportunity for them to earn a little extra money and a great way for you to find deals that you never would have known about. Be sure to communicate to the bird dog what kind of deals you are interested in so that you aren’t wasting your time with deals that don’t interest you.

Financial partners are another resource you should constantly be developing. Your financial partners can provide you with the money you need to put together deals you couldn’t on your own. While it is beyond the scope of this article to discuss ways to structure the partnership, the whole point is that you can get into some other deals and they receive a return for their investment in the deal.

Be sure to take care of your financial partners. You have a responsibility to communicate with them about the project and how things are going. When you take great care of them, they will tell others and word will spread. This is one way to develop a constant stream of funds for future deals.

Keep in mind that in order to move your empire forward, you must constantly improve your ability to get deals coming to you as well as your ability to finance them. These two things should always be on your mind and you should be looking for ways to improve them.

Learn New Skills

The last area of focus for building your empire is to learn new skills. If you think about everything that you have become as a real estate investor, it is because of the skills you have acquired. The way to become more and to grow your business is by learning new skills.

Real Estate Investing Training

We highly recommend becoming a master of your craft. Devote time to learning new techniques and skills so that you do not have to miss out on opportunities. Set aside time to take new classes that will teach you how to do deals you didn’t know how to do previously. This will open up new doors of opportunities.

Take the time to learn from books, classes, mentors, and other investors around you. When you put the emphasis on learning new skills, many new opportunities will come to you. Your mind will always function best when you keep it open. Learning new skills refines who you are and what you are capable of as an investor.

Be a life-long learner.

As real estate investors, our children remind us of these three valuable tasks when they go back to school. You can constantly improve your business with a constant, steady focus on just a few details.

Politics and the Real Estate Investor

Real Estate Investor Politics

The Impact of Politics on Real Estate Investing

The politicians in Washington are arguing about the national budget again.  It is basically the same thing we saw at the end of last year, but this time there is added drama with all sorts of new twists that we are now seeing and are going to see in the coming days.

I think all of this drama may help me buy some better real estate deals in the near future.  You see, quite a few real estate sellers seem to panic when they perceive the economy is unstable. They talk like “the government is going to run out of money” or “the government could default on its debt payment obligations.” This has an effect on those sellers and that can have an effect on the local real estate market.  Now, I’m not saying that this country is or isn’t in for some rough times in the next month or two.  However, sellers in general seem to over-panic at times like this.  This means that if you hunt hard, you can probably find a few sellers who think the sky is falling and willing to sell at a big discount for a quick sale.

So what do I think the politicians should do about the national budget?  As a CITIZEN, I have a strong opinion, but this is not the forum for those viewpoints.  As an INVESTOR, I really don’t care what the Republicans do, what the Democrats do, or what the President does. My success does not depend on any of them. My success depends on me and only me.  Because of that, I need to do four things:

  1. Be well educated on many different investment strategies
  2. Be an expert on my local real estate market
  3. Watch for changes in that market
  4. Take ACTION

Eric Buchanan
Rich Dad Education Elite Trainer and Mentor

Wholesale Properties: 10 Tips to Help Sellers Find You

Wholesale Property Marketing

Wholesale Property Marketing

I was told the other day by a friend of mine, “Wholesaling is difficult.”  I gave a blank stare back with thoughts running through my head as to why would they would think that.  They stated it was hard to find a great deal.  Still taken aback from their comment, I realized it was not the first time I had heard it.  I’d like to believe that it must be easy for me because “I am the Queen of Wholesale,” but in reality it just goes back to the basics.

I have taught a lot of students the strategy of wholesaling properties throughout my 14 years as a real estate trainer, and I have given the same message to each class I teach.  In order to purchase a great deal, you must have a motivated seller.  Anyone can put a property under contract, but it doesn’t mean it’s a deal. It has been my experience that if you can’t sell your wholesale contract, then one or two things are probably a problem.  One, you have not marketed the property correctly or two, you contracted the property for too much.  If you don’t have enough profit in the deal for your new buyer, they will not be interested in buying your contract.

So, how do you find a great deal at the right price? Find a motivated seller, or better yet, let them find you.   As a full time real estate investor, I must find deals on a regular and consistent basis.  I need to find a source of real property leads where no one else is looking.  Once I have targeted possible motivated sellers, I spend time marketing, marketing, and marketing to that demographic.  I find that a seller tends to be much more motivated when they call me.

Once the seller calls you, then just run the numbers like you are taught in class. Don’t over think this part, and stay true to running the numbers.  You have been taught in class that everything is based on the numbers.  You cannot make an emotional decision; you cannot “will” the numbers to work for you.  You have to put them into our time tested formula.  While many sellers will not take your offer, you will find that the ones who are motivated enough will.

Not everyone will like your offer. So what?  If the seller wants more than what you can offer, refer them to your realtor.  Do not overpay for a property!  If you overpay for a property, then you will be the motivated seller down the road.

The key to successfully finding properties is to market, market, and then market more.

10 Tips to Help Sellers Find You

  • Advertising (REI Blackbook, Craig’s list, local paper)
  • Bandit Signs
  • Building your power team
  • Contacting Expired Listings
  • Direct Mail
  • Driving for Dollars
  • Fliers
  • Networking (Who do you know?  Who do they know?)
  • Social Media
  • Websites

Margie Cromwell
Rich Dad Education Elite Trainer

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