I am going to show you how to have investors eating out of the palm of your hand and begging you to work with them. Finding investors and being able to set up successful and profitable relationships will make a huge difference to your business.
You will be the Rainmaker and will you be bringing together a group of serious real estate investors on your team. The key is that you want to have investors that focus in various areas that you do not. This is to ensure that any deal that comes your way, you will be able to handle. These will be strategic relationships that you will be able to use to leverage your time by using a whole new set of resources.
First let’s examine why you are going to be dealing with investors and how you and the investors can benefit from this.
How Working With Investors Will Make You A Fortune! Here are the three types of real estate investors you will come across…
- Newbies who have little to no experience but want to get started in real estate.
- Part-time investors who have bought/sold some homes but are not dependent on their real estate income
- Full-time investors whose income is primarily from real estate
We will be setting up a business model that allows us to work with each type of investor!
The first two types of investors probably have bought houses by getting loans and risking their credit. They are usually looking for income along with the long term appreciation. Sure, they would like to make cash if they can get it, but they usually don’t know how to do this. They normally have a job and hate it, they would love to be able replace their income and quit their job with their real estate income. You show them how to do it and they will love your for it.
The third type of investor will depend on real estate to make a living. These investors are usually rehabber’s that buy houses then fix them and sell them again. Some of these investors may live off the income of the properties. Either way they have an income source from real estate and they are constantly looking for new deals.
Why is this important to know?
Because before you build a relationship and provide value with anybody you have to know what they want. You must know what they are looking for, and you must be able to give them what they want, what they need. You need to give people a compelling reason for people to work with you. If you are given a good enough reason to do anything you are going to do it. This is why you want to make it so easy and profitable for investors to work with you and that they have no choice. Make is simple and compelling to work with you.
To be able to give investors a compelling reason to work with you is that you must know what they want. You want to know what gets them excited. You want to know what they are willing to pay for. When you know their hot buttons you can turn your investors list into a money machine.
Let’s examine what investor want. Then will we know how you can make money giving it to them. Some want equity, some want income, some just want houses that they can fix up and turn around to sell at a higher price. Basically any investor is looking for one of two things; immediate profits and/or residual profits.
I want to teach you to start building our a list of investors. You will want to set up your marketing system so that these investors will hear from you every 7-10 days. You want them to be looking forward to hearing from you.
You can use your email program inside your website from Super Smart Website OR you can use an email program such as Group Mail at www.infacta.com. (There is a free version for lists of fewer than 250 people. After 250 people, the application cost 99 dollars). Another option is to use a free service such as www.MailChimp.com
As we begin to develop your list of investors, you need to find out exactly what they want. You want to keep this list constantly updated with deals that fit their criteria and simple steps they can take to make money with the deals you send them. This is creating that compelling reason for them to work with you. Always remember that knowing the “why” is always more important than the how.
I am going to be very conservative so you get a very real idea of what is possible. Lets assume that the marketing I have you do will get you 10 calls. On top of that we will say that you come across 10 more investors by just going to the ads,
Using the 90-10 rule only about 10% of them will be “doers”, so that means every week you will be finding one investor a week or four a month. As you recall our target with each deal is to make $3,000-$5,000. So of your 10 investors that you are dealing with every week your goal is to make $3,000 with each deal you do. Since we are assuming that only one out of the 10, or just 10%, are going to be actually doing deals and taking action you will have a one new serious investor every week.
The only reason a serious investor would not want to work with you is because you did not give them a compelling reason! Give them what they want and you will get money and be able to do deals!
So how much money will you make with this one investor?
Remember our goal is for $3,000-$5,000 per deal, and then the question is how many deals are going to be able to do with this one investor. Let’s be conservative and say you do one deal a month and you make $3,000 a deal. Now let’s parlay that :
The second month!
Remember that this one investor came from just the first week! There are three more weeks in the month and that would me four more investors. Stick with the same conservative numbers and only find that serious investor a deal a month, you are making $12,000 a month.
This is the $3,000 per deal times the 4 investors. $3,000 x 4 = $12,000 a month! PLUS
You will be getting better at finding and dealing with investors. Your business will continue to grow. What about the next month when you have a total of eight investors? $3,000 x 8 = $24,000 month!
That is over $24,000 a month by MONTH THREE!
Remember that on top of that you have to include the money you made in the two months beforehand, the first month you made $3,000, the second month you made $12,000 and the third month you made $24,000. Add that up and you get $36,000.
That is $36,000 in your first 90 days!
This also does not include the other deals that you are doing, this $36,000 is only from dealing with investors a few hours a week. In order to make this happen you really only need to be able to do three things…
- Have A System For Getting In Touch With Investors
- Find Out What They Want
- Have Deals That You Can Send Them That Fit Their Criteria
NOTE : If you do not have a private money investor website internet system yet, NOW is the time to upgrade. Only $995 . To see what a private money website can do for you please view our demo at www.high-profit-returns.com If you are interested, email me directly at Duncan@duncanwierman.com to get this set up for you.
How To Find Unlimited Investors Wanting to Give You Money!
There are many ways to do this using online and offline marketing! First we will start placing small ads into free online classified ad sites, local newspapers, Ebay and Angel Investor type lending websites. Below are the ads and the types of investors that will from them.
Free List of 27 Income Properties You Can Own Today
No Qualification / Easy Terms
CALL 888 123 1233 24 hour
This advert will bring calls, and will get responses from all three types of investors. Just run the advert to get the responses going. We can go and get the houses a few days after we start getting investors on board.
You can assign all types of deals including Sub2 deals, wholesale, etc. where they will pay an assignment fee and you walk away. Please be careful about is who you assign the deals to, you want to make sure that your seller is protected and you assign the deal to somebody who is going to take care of it.
One way to ensure this is to do a temporary lease with investor so that you are satisfied the seller is in good hands. If there is a problem you just have to step in and do it again, while keeping the assignment fee for your trouble.
Putting “No Qual” on your investor ads will increase your response and you can explain the assignment technique pretty easily, they will be very open to this because they don’t even have to speak with a lender.
You can also charge for this list as it has many attractive features. I have done this many times on ebay to get buyers using the 19.95 Ebay classified ads
List of 23 Income Properties
Own Today No Qual. $9.95
Call 888 123 1322
List of 23 Income Properties
Take Over, Must Qualify
Call 888 123 1344
With the second ad you will get investors that have good credit. Why, because you used “Must Qual” instead of “No Qual”. This means they will have money and be able to get money via loans. Now you have to send those that responded to the advert your list. but first you need to talk to them and find out where your 5% of doers are.
Here is another ad…
Handyman Special – U Fix’em
11 Houses At 40% Below Market
Call 888 123 1231
11 Houses 50% Below Market
Need To Sell!
Call 888 123 1332
The first advert will bring you more rehab type investors when selling rehab houses or looking for rehabber. Let’s look at a few other types of adverts that will focus on opportunity seekers.
Investor Special – $400/month net income
Good Shape. Own Today, No Qualify.
Must Sell.Call 888 123 1231 /24hrs Website
You can also run this add with and use the “Must Qual” instead. Remember to test your adverts and tweak them. These ads will all work in any area in the country. You can also use the same ads on websites like www.craigslist.org, www.backpage.com, www.kijiji.com and other investor and seller sites.
When you run these ads and get flooded with calls, So you may want to direct them directly to your website as you want to get everybody’s contact info. The more you tweak the adverts the more you are going to get investors ready to deal. You can run the ads in any “investment property” classified section, the real estate in general section, online or offline.
Now let’s talk about using my secret weapon, the Online Lead Finder, it’s a cheaper way to get in touch with investors. This is the cheapest and quickest way to get your investor list going; Use the email extractor section and use words like “we buy house for cash contact us,” and extract emails or phone numbers in one go. All over the country you can find investors advertising with ads like “I Buy Homes”, “We Buy Homes”, “We Stop Foreclosure”, “Cash For Homes, etc. These people are not your competition. Never think that! Nobody, and I mean nobody, will be doing what you are doing so you will never have to worry about competition.
You want to work with not against these investors in your target area. You want to gather all the information on these people. What will you say? You will say the same thing in your advertising!
How To Make Money with Other Investors
Remember that we spoke before about finding out what the investor wants? So here are the questions and then an explanation of why you are asking them…
Be conversational and don’t sound like a canned interview like you are reading a script or questions. If they question you or you feel awkward just tell the truth and explain that you are trying to build long term relationships with serious investors in your area.
Questions to ask:
- What types of deals do you want to do?
- How do you want to grow?
- Where do you see your focus going?
- Where do you normally find your homes?
- I am calling off or your ad/sign, what kind of response to you get from that?
- How are you normally getting your leads?
- How are you buying your homes? Do you make cash offers and use your own money?
- Are you working with a Hard Money Lender?
- What is your minimum profit on a deal?
- In other words, what is the minimum profit you must have in order for a deal to be worth your time?
- So you make about “x” dollars on each deal, how long does it normally take you to make that?
- So you are netting about “x” on each deal, how long does it take before you get all of that?Once you know the time frame that is is taking them to close deals and how much money they are making per deal you have a much clearer picture of what they are doing and how you can help them.
Probably about half of time, the investors you will talk to are “rehabbers” these guys are guys that will often spend $35,000-$50,000 to make $10,000. But the worst part of it is, that it often takes months to close deals.
So you know you have a good sense of who you are talking to, so it is time to look deeper and find out how to make money together. Lets start asking more questions
- What is your ideal home?
- What kind of deal do you love to see?
- So if I had some deals that were 3-4 bedrooms on the north side that you could make about $300/month from, you would want to buy them?
I am trying to build relationships with serious investors like you. I think we can make some real money working together, I want to make money and I know you do as well. How could I help you make more money? How could I make money helping you?
Essentially you are going to set the expectations of the relationship in this part of the conversation. See what they say. Let them know that you have resources like buyers, sellers, Realtors, etc. You don’t want to be arrogant about it you just want them to know that you are the Rainmaker.
So if their answer is vague or they are asking you a question in return you can respond with something like…
Right now Jack, I have about 26 deals that match what you are looking for. I have 84 buyers, 12 Realtors, 17 other investors that specialize in various areas, on my list AND I think there is potential that we can also make some money. I believe I can assign you some deals, normally my assignment fee is one fifth of what you will make on the deal, my minimum fee is between $3,000-$5,000 for the assignment fee. How does that sound? I guess the real question is what kind of deal is worth $3k-$5k to you?
Or in case you don’t have a list yet, say :
Jack, I am just getting started here so I come across some deals that fit your criteria do you want me to let you know?
(Of course they say “Yes,”)
Great, let me ask how much could I expect to make from any deal I send you? I know that I should be doing this for several thousand dollars but just to get this started I am willing to take a hit there, if I find deal like (give the numbers again) how much can I expect to make just right now?
You want to plant a seed in their mind that you are willing to take assignment fees for much less than what you will normally do. There will be a few more questions you want to ask as you are going to be in contact with them and you want them to know what they can do to make money with you. You will have buyers and sellers lined up quickly, so once you do you go to them to possibly move the deal.
- Right now I have 7 homes that need lease option tenants, I think I can work with some investors and we can both make some money here, can you help?
- Do you normally come across lease option buyers, because I have got more homes than I know what to do with and I would love for us to work together and make money getting folks into these homes, what do you think?
- I have got about 52 lease option buyers that need homes, do you come across many lease option homes? Do you have any homes, obviously you would get a cut of the deal, do you have any right now? Do you come across many?
- Do you have a list of homes that you are trying to sell now?
- Do you need help moving some deals right now?
- Are they any homes I could help you move right now?
Question number four is where you are going to get the start of your list of homes!
Now not nearly every investor will have a list for you. In fact it could happen that many of them won’t have any deals they are working with. It’s a numbers game. If you talk to 10-15 investors you will find at least one with a list of homes. So you know what we do now? RIGHT! We have some deals that we will take and present to other investors!
Here is where you want to start talking about your “fee”. Find out what they are willing to pay you. Remember the script above and the “willingness” to take less right now!
Now you have a list of homes that you make money with and also help your investor with as well. You will solidify your relationship with the investor, with your buyer or investor that you sell the home to, and you will make money. If the investor has lease option homes you try to get a lease option tenant, if they are discounted or full price cash deals then you can see what your Realtor and buyers can do, if they are simply rehab deals you see what the investors want. Either way you send these deals out to everybody on your list. Simple ! You are now the Rainmaker and Matchmaker!
That is all you need to do when talking to investors.
When you commit to going through this process it will put you in touch with the investors and it allows them to know who you are. Most of them will want to work with you because of the resources you have in place! Why? You have deals you can move immediately, You have several ways to help these folks and make money at the same time.
Now that you have a list of investors and you know what they want, how are you going to give that to them? How do you find the deals that they want? How do you make money handing them off to your investor? Let’s go over that right now.
How to Find Unlimited Deals For Investors
Here are just a few ways to have a steady flow of deals for your investors. First you need to realize that a “deal” can be either a buyer or a seller. You can bring a buyer to the table or a seller and you and the investor can both make money doing this.
Here are the method.
1.) Use your current business marketing activities found in the 30 day plan.
I have already covered various methods to find buyers and sellers, remember that at least once a week everybody on your list should hear from you.
Every week your buyers and sellers should hear from about the deals you are coming across. Just be keeping in contact with your investors will establish your credibility and rapport very quickly, and by sending them some details of your business and how you can both make money with your deals, you are going to be that much stronger. So that is the first, way, send out your buyers’ and sellers’ criteria and see if your investors can help.
2.) Use deals from other investors.
These may not be terrific deals, but as long as the numbers are in the zone, you should be able to sell them. You can also bring buyers to these investors for the houses that they have. So you can help them move their homes by moving them to one of your buyers, or to other investors, either way you are going to be able to make money with deals as long as the numbers work and they are reasonable.
If you are just starting this is the best way to get deals on your list and houses that you can make money with. Another way that you will be making money with this is, you will have started to acquire a list of buyers that call on a particular home. You can still help them get into something. You want to be versatile and be a matchmaker!
Realtors have access to the MLS and can pull up listings, both active and expired, that match not only your criteria you have and that of your investors. You can go to any Realtor at first but then when you see the same Realtor listing the homes that your investors are looking in you can work directly with that Realtor. You see there are certain types of deals, namely fixer uppers and rehabs, that normally a few Realtors will specialize in, a good Realtor should sell hundreds of homes a year. These won’t be the high end luxury dollar homes but they will be your middle income , or very low price homes. You want to build a relationship with a Realtor because it can become a profit center. Here is an example.
You have an investor that you are working with that is looking for rehab property in the west end of town. You will simply contact your new “team” member. ie. Realtor, and tell them you have some investors you work with that want rehab type property in the west end of town, and you want to get the best of those house on your inventory list. Then you send this list out to your investors. The secret is not to put every deal, but just a few in the email to them and say “I have 8 more rehab deals on the west side, call me for info.”
So what if some of you investors are already working with Realtors and getting houses like that already? What do you have to do to work with them? The key is “Specialization” There are only some Realtors that focus in those types of houses in that area. You will be able to find them by looking at the listing agent with the houses you get. OR you can find this out just by looking at the listings ONLINE! So you get in touch with the agent and mention your list of investors.
Most investors are lazy and they want deals handed to them on a silver platter. Your job is to provide incredible value with everybody you work with, so you want to do the same with your Realtors that are on your team. The way to do this with this kind of Realtor is to allow him to profit from your list of investors. You can tell this Realtor about your list and what you are trying to do as far as get your investors deals so they can buy them.
Realtors soon realize with the list of house you have will see you shortly as a profit center to their business. In a very short time they will also give you “pocket listing” or access to deals before they are even put on the market. Realtors get these deals through banks, auctions, foreclosures, etc. so they have a steady stream of them. They know you can move the deals quickly then they will send the deals to you first.
To make this all happen though, you have to have serious investors on your list! That is why I have come up with the questions prior in this report.
Now you know how to find out what your investors want, how to build a loyal list, how to get more deals than you can possibly handle, how to get deals for your investors that they won’t find anywhere else, what is the last piece of the puzzle?
You are probably asking.. How Do I Make Money Doing This Exactly?
I hope by now you have seen the process come together. Now it comes down to the big HOW we are going to make money with your investors.
The easiest sort of deal is where you find your investor a deal that meets their criteria and they want to buy it from you. You control the home by writing a purchase agreement on it and then you are going to assign your rights to the investor.
I suggest that you should make a minimum of $3,000-$5,000 on each of these deals. There are many investors that will take these deals from you consistently. When you assign a deal you want to make sure that there is money in it for the investor, you can explain this as you send out your weekly email to your list.
Its very important when you “package” your deal, that you show the investor where they will make money and exactly how they will make it. Here is an example we used before :
The house is worth $100,000 but your seller just wants $60,000 for it so that they can get out of it. The cash deals that you are going to be doing will normally be moved by assigning them to an investor. So you control the home for $60,000 and then you assign the rights to it. You sell the house for $65,000 to your investor.
Your investor pays you $5,000 and they pay the seller $60,000 and they still have about $35,000 in profits. You want to explain that $35,000 to you investor immediately when hear about deals like this. As long as you keep a solid mention of how much they are going to make you will find much less objections and they will be wanting to work with you more and more.
It all begins by writing up a purchase agreement with the seller, this gives you control of the house. Then you go to your list, or you start creating one, and you assign your rights to the home to your investor. Your investor pays you the assignment fee, they pay the seller their asking price, and now your investor owns the home with immediate equity. Remember to keep your investors’ best interest in mind, this is what will keep them coming back again and again.
You can get your fee at either time. Immediately, Either your investor will pay you the assignment fee , or At Closing, they pay you when they pay the seller and they will use the “source” money to do this at closing.
TIP If you have to wait to get your money then you should go for at least $5,000. You can lower it and do $3,000 but you don’t want to go any lower, you don’t want to do a split with these deals normally because you are waiting. If the investor brings you cash and does it immediately you can work a discount out with them.
Those are the basics of making money with investors from assigning a deal.
Finding Buyers For Your Investors
This is where an investor brings you a buyer or you find a buyer for one of your investors’ homes.
If your investor has a deal that you find a buyer for you want to make at least $1,000. This amount normally would be for a lease option tenant. You really want to be aiming to make $3k-$5k, but you want the investor to make money as well. So, I believe that to start off just making $1,000-$3,000 is fine as long as set the expectations and make it clear that in the future you are going to be working closer to a 50/50 split.
The norm is usually $500 for finding an investor a buyer. You can explain that you pay $1,000 to 50% of the down payment and that is the way you want to work.
When starting you can accept this $500 but explain that this won’t last. Once you show your investors you can deliver they are going to be much more likely to work with you. With a lease option tenant the down payment is usually the only item available to be split, the income and equity is almost never split.
Let’s say that you have a house that you need a lease option tenant for you can go to your investors and see what they can do for you. It doesn’t really matter if you are taking ownership of the house because either way you need a tenant. By paying more to you investors to find you buyers you are doing two powerful things at once; you are justifying charging more for buyers when you find them and you are getting them more excited about working your deals by giving them more incentive to help you help them.
Once you have this system with your list up and running you can always send out an email and get flooded with buyers from various investors. Many times your investors won’t have the time, or the knowledge, to find homes for these buyers. This leaves it wide open for you to make money! You can find any of your buyers, or you investors’ buyers, house and do this quickly and easily. So once you get a home you need a buyer for, go to your list.
Conversely once you get a buyer go to your list as well and see what is available. You want your investors to look forward from hearing from you. So if you have some buyers or your investors have some homes that need to be moved, or you have some homes that your investors are going to bring you buyers for, it really doesn’t matter. You can make money in either situation.
If you are dealing with another investors’ leads or homes you do everything the same way, get access to the house and start your marketing.(and signs up at the house). You Get your email list hot list out immediately. This will get your phone ringing and you will have business coming in fast and furious.
When you use other investors’ resources you create a win-win-win situation where you can all make money. The documentation is very simple, the purchase agreement with the “split” stated in the further conditions. Although this is a legally binding agreement you are still somewhat exposed, this is why you will only need to do this a few times to know who the winners are. Anytime you get a deal you want your entire list to know asap so they can take action
How To Get Money Wired Right Into Your Account!
You want to make this process as easy as possible to build a big profitable business. The key is relationships. Build your trust and credibility. Let them see how hard you work. You also want to know who they are and what they want. Then you want these deals going out via email to your list of investors.
So what do you do once you have an investor that wants one of your deals? If you are in the area, sure you can do it the old fashion way to show them the house, etc, but ideally you want the investors to wire the money directly into your account. How are you going to make this happen?
You need to set the expectations of the relationship from the beginning. As long as you do this and make their relationship with you valuable you will never have problems doing this.
Here is how you want the deals structured…
When an investor wants your deal they have to wire $3,000-$5,000 (or whatever your profit is) directly into your account. This will “tie up” the home for 10 calendar days not 10 business days.
During this time you investor/s can do whatever they want with the home, inspect it, appraise it, comp it out, etc. whatever they want. During this 10 days you only accept back up offers because the money your investor has paid gives them the exclusive rights to the home for 10 days. Within this 10 days, or at the end, your investor will tell you one of two things; either they want to move forward and close the deal or there are issues with the deal and the investor does not want to move forward. If they don’t want to move forward with the deal you want to make it clear that you will give them their money back immediately.
Realize that they didn’t pay you for you to give them their money back, they wanted to make money. So now you need to look at how to salvage the deal and still enable them to make money. Here is how to do this…
When you talk to the investor and the deal doesn’t look like it makes sense ask them what would make sense. You can say something like the following.
“Well Jack I am sorry the numbers aren’t adding up the right way, I just told you what I knew and what I was told. Before we completely lose this deal here though, is there an offer that would make sense to you? It seems like the original numbers aren’t working or they are slightly off, what do you think it would take to make this deal work? What numbers do you think would work?”
At this point you are basically getting a counter offer. You know this investor is serious, he already paid you, so you want to work whatever you can out with him. Probably nine out of ten times your investors will tell you what they need to make it happen. When they tell you this you want to repeat it back to them and confirm that at that price with those terms they will buy. You can say this in a few ways, below is one.
“Alright Jack so if we want with $40,000 instead of the $55,000 and we did with a one year contract with payments of $350 month, that would work? If we can make that happen then you are ready to close on this thing today?”
If there is hesitation repeat the first “script” to find out exactly what it will take for your investor to close the deal today. Remember you know they are serious so you want to make them happy.
Once you know what will work for them call the seller immediately and tell them the situation. They may have been dishonest about certain details or maybe they didn’t know, either way your counter offer is much more powerful now because you already have a buyer in place.
At this point you are not haggling price with the seller just to get them down, you have legitimate concerns that your investor/buyer has regarding the property. Now when you explain these issues to the seller and why the numbers don’t make sense unless they are changed, and you present this with factual information from your buyer who is waiting to hear from you so they can buy the home… This adds up to a pretty closable deal.
Now your seller knows that you have a buyer in place and they have done the research on the home and they ready to move immediately. This is also another reason why you don’t have to ask many questions, when you come across deals that looks decent take it work out the details later. If the numbers are right you will have no problem moving the home.
If the numbers are wrong then you will find this out as you are moving it and you will be able to negotiate much more effectively once you have a buyer in line waiting for the details to get sorted out.
You are structuring this so that your homework is being done for you. This way you get paid for what you know versus what you do.
So you let your investors know once you have deal, then you make it clear that you need the money to tie up any of your deals. They can mail you a certified check or wire the money into your account but you need the money to hold the home for them. Then they have 10 days to verify everything.
I bet you are really wondering…Are People Really Going To Do This?
The answer is YES! You are working with investors and finding out exactly what they want. Then you are sending them deals and showing them how to make money. All they have to do is pay you pennies on the dollar for what you find them. Any serious investor will do this in a millisecond once they know you are real.
If I told you right now there was a deal in your area that you could make even just $10,000 on and this would be doing what you are already doing… What would you say?
What if I said I need $3,000 wired into my account and you get 10 days to check everything out? If there is any problem just let me know and you get the money back.
If you had the money why wouldn’t you trade me $3,000 for $10,000? It is a no-brainer.
That is how you want people to view working with you “a no-brainer”. Think about this program, buying it was truly a no-brainer. You must do the same thing; go big or go home. You want to make it easy as pie for people to work with you. You want to bring so much to the table that people need you and they would be stupid as hell to walk away from what you bring to the table.
The beauty of my system is that you are able to buy deals and sell them with little to no time or work involved. With just this technique in your arsenal you will get cash coming in without even seeing the deals… You see everybody wants to know how to do this stuff but the real secret lies in the way you do business and how you deal with people and what value you provide them.