Today’s REI Classroom Lesson
J. Massey with Cash Flow Diary reveals the necessary steps to be successful in real estate investing.
REI Classroom Summary
Uncover what to do after you have your buyers, sellers, and investor leads in order to create a lucrative real estate investing business.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the Flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level.
And now, let’s meet today’s expert host.
J. Massey: Hi, this is J. Massey with the CashflowDiary.com and in this video we’re going to talk about the seven steps to successful real estate investing.
Mike: This REI Classroom real estate lesson is sponsored by VirtualStaffNow.com.
J.Massey: Now, I don’t know how long you’ve been involved in real estate investing. In fact, I don’t even know how long you’ve been involved in business, but here’s the point: Business and real estate investing. Most people try to separate them and think that they are somehow different, and that is so not the case. So I’m going to lay out for you right now this seven step process that will guarantee you have the ability to know exactly what you need to do to further and deepen those relationships to actually create business, and in this case, business inside of real estate investing.
Step number one: One of the unique things about being a real estate investor, or having a business that does real estate investing, is that you have three primary customers. That’s one of the unique things that we get the privilege of dealing with. Step number one is learning how to find buyer leads. So be very clear about this, a buyer lead is someone who wants to purchase something from you.
Now, I don’t mean only a house. Some of you, you may go down the route of owning and controlling notes. Well you need a buyer for those, too. Others of you, you may go down the road of being able to obviously fix and flip, but some of you are going to go down the commercial path, some of you are going to go down land. It doesn’t really matter. But guess what? Each type of buyer that I just named is completely different, and there are different ways and techniques and things to understand, especially in your marketing message, to be able to attract them.
Step number two: You need a seller. So in the same way that you could go to an electronics retail store, they need a supplier of those TVs so that they could sell them to you and I. Correct? Well, the same is true here. The seller is the supplier of the inventory, whether that is you are acquiring someone else’s debt, you’re doing notes, you’re buying someone else’s house. It doesn’t really matter. The point is you need to know how to find that person.
Here’s the quick key. When you understand that people exchange equity for peace of mind, all the time you’ll be able to find your sellers because they’re the ones who have the problems.
Person number three and step number three is learning how to find the investor leads. These are the people who just have extra cash. They have cash that they want to use. They don’t necessarily want to use their knowledge or time or any of their skillsets or network. They just want to put their money to use. So the only thing you’ve got to really think about here is sending the money out and having it come back with a few more friends. That’s really what it comes down to.
Now step number four is where it begins to be a lot of fun. Here’s what you have to do. You need to become an expert in your local area in one strategy, and I don’t really care which one. But while you’re becoming an expert, practice this. You must learn to educate to dominate. Understand that today’s world means that education is your marketing message. The more you educate your marketplace, the more you will dominate, and more importantly, attract to you those individuals who will know, like, and trust you and be able and willing to do business with you. You’ve got to educate to dominate. The more you can learn how to serve individuals in this way, the easier it’ll be for you.
One of the number one tools that I have used personally and have taught a lot of people to use is the Cashflow 101 game by Robert Kiyosaki of Rich Dad fame. That particular tool has been very, very excellent at helping people through their own educational, and dare I say, transformational process to becoming those buyers, sellers, and investors that we need.
Once you have established yourself as that expert, the next thing you must learn to do is sit down with a person one-to-one, knees-to-knees, face-to-face, or sometimes I guess it’s going to be Skype-to-Skype, right? You need to be able to sit down with them and understand what it is they are looking for real estate to do for them. This isn’t the time for you to suddenly tell them about how great your opportunity is. It’s more about understanding their needs.
Think of this as a whole bunch of interview questions that help you to make sure that what you’re doing, your deal, will fit with what they are looking to do. It’s a process that I call evaluating someone’s investor identity. We always start with their investor identity. We then understand the marketplace identity. The team has an identity, and then the deal, and in that order. Step one is to understand the investor, the marketplace, the team, and then the deal.
Once you’ve gotten that far, step number six is simply going to be to enroll them in the vision that you have for this particular deal or project so that they can see how they can achieve their goals with what it is that you’re looking to do. Whether that means they’re buying the house from you and they’re using that as part of their portfolio to build their retirement plan, whether it means that they are selling their house to you or note to you in exchange for receiving some cash that hopefully recedes or relieves some of their pressure, and sometimes they’re just contributing dollars, which is completely fine, but at the same time you still have to put that on a plan so they can see the vision of what they’ll be able to do down the road.
There’s a tool that I developed called the Profit Analysis Quadrant that you use to help actually show people how their deals work on a napkin. So it allows you and allows anyone to be able to do these things at Starbucks.
Last, and by no means least, the most important step, please remember this. Write this down. I want you to understand the number one thing I’m concerned about is you staying in business. It took enough courage for you to start, so now I’m going to make sure that you stay. You must remember to train each and every person that you speak with to send you more business.
The number one reason, in my opinion, that we’re all in business isn’t actually profit. It’s actually, here’s what my goal is, is to get you to introduce me to everyone you know, and you should be asking for a referral. Long before the deal is closed, long before escrow is open or closed, none of those things matter. What matters is how you treated them and do they know anyone who is similar to them that would like the same quality product or service that you just delivered.
So as a quick review, step number one: buyers, number two: sellers, number three: the investors, and then if you remember, step number four is where the fun begins by you becoming that local market expert by educating to dominate. Then you must learn to follow up, enroll, and ask for referrals.
It’s been fun talking to you today. I look forward to talking to you soon. Until next time.
Mike: VirtualStaffNow.com is the leading virtual system provider for real estate investors. As busy real estate investors, there’s nothing more valuable than our time, and VirtualStaffNow.com not only helps you find the right real estate virtual system for your business, they train them on an ongoing basis, manage them daily, and make sure they’re staying productive and effective. And in the event they’re not the right fit or need to be replaced, they handle that for you, too. Whether you need 1 or 100 virtual assistants for your team, start the process right now at VirtualStaffNow.com.
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