Think Big – Aunty’s notes for your review
Think Big Hawaii happened over a 3 day weekend on October 26-28, 2012. Here are Aunty’s notes:
THINK BIG October 26, 2012 Hawaii Convention Center (speakers in order of presentation, names are in capital letters and bold:
Make the decision that you are going to accomplish the goal. (Be lazer focused in your goal setting)
Make the commitment to make it happen.
Make sure you hold yourself accountable, and have someone to hold you accountable.
Make sure that you have an action plan that is clear, understandable, specific, strategic.
Focus on the right things, not the wrong things otherwise you sabotage yourself.
Three Essential Skills
- Marketing – Generating Leads, finding deals, prospects
- Sales/Negotiating – Converting leads into money making transactionsIf you are great at sales but you suck at marketing, you don’t get at bat. Better to be a better marketer rather than a great salesman.
- Strategy – what are the transactions and how you do them
Business is about monetizing your marketing. You will spend time or money to get leads. Everything else is about turning that time and money into making money.
For every $100 Phil spent on marketing, he got 1 lead, for every 20 leads, he got 1 lead that made him $15,000. ($2000 = $15,000)
Take dramatic action. To have different results, you must do different actions. Schools don’t teach marketing or sales.
Immigrants are 4 times more likely to become multi-millionaires than US. (sink or swim)
Take 2 sets of notes – a regular one like you always do; and one of ideas – 3 things to do differently on Monday
Life is Good in America. People will fight fiercely to keep what they have, but it is hard to motivate them to fight for more. This makes people perfectly content to do the same thing that they have always done which gives them the same result.
What is your Motivation? Need produces Motivation which leads to Goal Directed Behavior resulting in Result. [Tony Montana (Scarface) “In this country, you gotta make the money first. Then, when you get the money, you get the power. Then when you get the power, you get the women.”]
*Look up Maslow’s Hierarchy of Needs.
Marketing budget write down how many dollars and hours you will spend to reach your goal. 85% of your time/money on marketing.
Deal flow = marketing, marketing, marketing
Skeptics, Gamblers, and Lucky Gamblers – bad for future
Never stop the machine. Some shift their attention 100% to the operations and let the marketing engine stop, so have to start from scratch.
Your next deal is always more important than the deal you have now. Focus on getting the next one.
Master Sales – or get a partner that is good at sales.
Always negotiate with a carrot and a stick (what can happen vs what you are offering)
Every opportunity has a close – the least-worse option is sometimes the best one.
Learn how to manage the clock – usually at the last possible minute (foreclosure list shows when going to auction – best time is last possible days)
Multiple strategies = multiple streams of income
Multiple strategies recession proofs your business. Focusing on a single strategy making money, one day, you start making less money, so do double of what used to do.
Philosophy of Investing
Finance, analysis, Operations – these are critical, but not urgent (traps)
Use Tools – find a lead vs. use a tools to find 1000 leads
Don’t forget about capital – relational capital. Net-worth = Network
A good network builds deals, coaches.
Left brainers: Analytical, hard to get them to do stupid things, but also tend to not do anything. Let your gut make decisions – take the opportunities.
Right brainers: quick decision makers, shiny penny syndrome (want to do it all). Learn to FOCUS.
Think differently! Transformational strategy, unique selling propositions, zero based thinking, value disciplines, focus, relational capital, marketing, branding, strategy of preeminence, chasing rabbits vs chasing elephants, intentional congruence.
*Keep a calendar and keep track of everything we do – get a true picture of what activities are spent on the most important things vs wasteful activities. Then, figure out if you can have someone else do some of the activities for you. Focus on the activities that are important.
The envelope around the business in order of importance in order to get the right offer in front of the right person:
#1 The Channel – the flow, from producer to retail
#2 The Marketing – makes you money. i.e. – the cover of a book with Fabio sells books
#3 The Product – quality, hard work
Phil found the biggest channel in the business, offered to do all the work, etc., they kept all the profits. After that when Phil became branded, the 2nd product had more weight and he could get profits.
- Website for RE – in order to capture leads:Buyer Website – properties available, resources for buyerSeller Website – services for buying houses, resources for sellersWeebly.com for custom websites to get templates
- Develop marketing CollateralMarketing materials (Phil’s home selling guide) hire via elance.com (free lance writers, market resources, etc.), 99designs.com (creative logo design, stationary, etc.), freelancer.com (writers, etc.)
- Buy a mailing list – MelissaData.com (hundreds of lists to choose from) or hire a list broker (google “lisr broker”Marketing = message + list. They both have to be rightShort sale list – notice of default list
- Mail to list – www.click2mail.com.24¢ postcard + 11¢ printing = $35 per 100 postcardsMulti-touch – industry says 4x, every 7 daysMarketing is an experiment – getting the right message to the right list
- Generate SEO traffic to websiteSEO = search engine optimization, traffic from searces for specific keywords. Google has a formula that no one has access to. Having links back to your website gives you a higher score – Being at the top is very valuable. SEO is a science and art form – too much time and effort. Shortcut is to use press releases – gets your site/company referenced in lots of recent, relevant sites, short, simple “LAH launches new national program to allow any homeowner to sell their home…” PRLog.com, Free-press-release.com, PRWeb.com
- Local online listings – local advertising. Register self at Google Places, Yahoo local. Use company address, that will show as the address on the map. Google.com/places/ http:listings
- PPC for immediate paid traffic = pay for click advertising for a fee in which you pay each time someone clicks on your ad.. Pay and Google will put you there – they are in business to make money. 85% of the time potential viewers click on the top listings.
- Social Media – Facebook.com, Linkedin.com connect with peopleKeep it simple – set up Facebook – create a fan page for your business. Do videos and post them on Facebook, linkedin, etc. pages. Link to your website. Add friends, customers, associates. Communicate with them – success stories, problems solved, status, partnerships
- Communicate! It costs 7x more to obtain a new customer vs doing business with someone that already knows you. Work what you’ve got first. Offer them valuable products and service, and valuable content and resources.
- Auto responders – series of emails automatically sent to prospects.Most common response to a REI offer is “let me think about it”. Instead of trying to offer more money, etc., follow up instead. Auto-responders keep you in the deal until the deal “bakes” long enough to get done. www.aweber.com more than doubles the conversion rate.Professional tools to manage emailing to your list.
Email and online marketing to investors/realtors. Post wholesale deals to buyers list. Market and economic updates, invite to events.
Get people to go to your website.
Offline marketing, develop marketing materials, buy a target customer list, mail to list
Online marketing – PR to get organic traffic, local listings, PPC to get paid traffic
CHARLIE DOMBAK, CPA MBA tax strategist
worked with tax attorneys for 6 years, founding member of Optimal Financial Group
Comprehensive Financial Planning
Have legal separation between personal and business – use entities = corporation, LLC, Limited Partnership. Each has unique attributes depending on business.
Attorney that knows legal and tax aspects of entity structuring, form separate entity for various investments, specialized.
Insurance agent gets 100% of 1st year’s premium, check policy accuracy. Best deals when you interject competition into the picture.
Financial Planners have financial incentives to keep you in a certain fund. Fee based fiduciary are best for your own monies.
Accountants – historians, specialized
Partnership LLC for investment class recommended by Charlie Dombek
Tax mitigation – overpaid income tax
Current enforcement trends. Enlarging tax gap, 6,000 new auditors, 30% increase in small business audits, less audits of large corps, higher audits for thosE making more than $1 million.
Coming? Personal income tax increases, higher tax rates on savers and investors, igher social security wage caps added up to a 15.3 % surcharge, higher taxes on marriage & family, return of the death tax.
Romney plan – fairer, flatter, simpler – permanently extend cuts, repeal AMT, reduce individual rates, reduce taxes on savers and investors, repeal federal estate tax.
Which entities are best? Avoid sole proprietorships (no separation, only protection is insurance), single member LLCs (not for active business, taxed like sole proprietor, legal shortcomings – in some states can order judicial foreclosure like in Hawaii), general partnerships (responsible for partner’s activities and liabilities).
Corporations fit best for active businesses (not investment activities). C Corp is a separate legal entity and files and pays taxes on separate returns. S Corp is a flow through entity.
Control Garbage Tax (FICA, FUTA)
S corp gives the most control over payroll taxes (garbage taxes) ideal for small business, internet businesses, flips (dealers)
S corp paid in 2 ways, paid through payroll, paid as a draw. Called John Edwards income splitting technique. Split income in a way favorable to you, and compliance with IRS with proper compensation formula.
Negative legal and tax consequences to holding assets in corporations. Investment assets with passive income change to income in corporations.
In a Partnership, the entity cannot be liquidated if held in partnership. Distributions are able to be used if there is a claim against a partner.
Only entity type that benefits investors best are partnership LLCs. Because partnership, have ideal legal and tax structure. Segment assets according to risk.
How to segment risk for real estate investors. Parnership LLC for residential properties (must be taxed as a partnership for maximum asset protection) set up as a holding company (has charging order protection which owns shares of several single member LLC that is disregarded for tax purposes, each owning a piece of property.
Operating agreement –
non assignable interest – partner cannot assign interest to creditor
no power to demand distributions – can keep distribution within LLC
non disclosure provisions,
non pro-rata distributions – can distribute 100% away from partner in a suit
special allocations – use to minimize taxes
poison pill provisions – person holding charging order may get saddled with tax liabilities of LLC
charging order limitations – non liquidating charging order – sole remedy. Annual distributions is the only way to liquidate.
C corporations pay tax at their own rates. (doesn’t want as first choice because of payroll double tax) Corp rates are graduated, usually lower than individual rates. Only entity type that can pay pretax fringe-benefit expenses such as medical payments, etc. Ability to have fiscal year end.
When you have significant income, set up a management company (C corp) that the Partnership LLC for Real Estate pays management fee. The C corporation pays tax deductible fringe benefit expenses.
If you have several (partnership LLCs,) pays management fees to the holding LLC.
Retirement plans: IRAs, No ERISA protection, not bankruptcy exempt, require same contribution for employees
Qualified Retirement Plans: 401(k)s, pension plans, defined benefit plansare exempt from bankruptcy proceedings and creditory attack, have discriminatory funding formulas
How: Partnership LLC for investments pays management fee to LLC taxed as Corporation (as management support)
Can use retirement plans to take income off tax return – train income stream to flow into a retirement plan. Retirement plan expansion structure. PreferredLLC turbo charges our retirement plans. The tax deductible retirement plan pays into retirement plan expansion structure with preferred and common members, holds
Preferred LLC . Your tax deductible retirement plan feeds your tax-free Roth by routing all investment returns above 6% annually to your Roth. Company plan goes to preferred, goes to common, ROR beyond 6% goes to Roth IRA
Preferred LLC example $100,000 investment with 18% return.
Net earnings: $18,000
Taxable deferred earnings: $100,00 x .06 = $6,000
Tax free earnings: $18,000 – $6000 =$12,000
tax saved: $4080
developed by tax attorney out of St. Louis
captive insurance companies – the anti millionaire tax strategy.
Primary business structure pays insurance premium up to $1.2 million annual to a Captive Insurance Company (you as a business owner owns) Is a fully licensed insurance compnay, governed by section 8319B0 of code, are 100% owned and controlled by shareholder, no restrictions on investments, can be used as rainy day funds.
Audit proofing – never file your taxes late, avoid paying taxes late, avoid matching issues, ratio analysis – scored when deductions are too high to income, etc., be careful with travel, entertainment and auto deductions.
For highly contested deductions. Five tests – valid date, receipt, amount, reason, relationship for entertainment, car & truck expenses – have mileage log, credit card statements are not considered receipts, business/asset acquisition travel
if you are traveling to look at your line of work it can be deducted. If you are traveling with expenses not in your line of work, not deductible unless the deal is done.
Charlie will move any properties on Schedule E to a partnership LLC and file a separate tax return. No protection if the property income shows up on your personal tax return.
Day 2 LINDSEY JEAN: Irresistible Influence and Wealth Creation [Aunty’s note: this was my favorite presentation]
Simply show up. Go to events. Do what needs to be done in the best way you can.
We do business with people we like the most.
For each of the statements below, write down the letter that you agree with the most:
When I have an opportunity to meet someone in business for the first time, I am:
D. outspoken & direct
I. Spontaneous and funny
S. Welcoming and friendly
In business, I consider myself to be:
I. passionate and animated
S. peaceful and laid back
C. diligent and dependable
The traits of someone I do not interact well with are:
D. slow and indecisive
I. meticulous and critical
S. controlling and insensitive
C. unorganized and chaotic
Your time management for business would best be described as:
I. move quickly to the next fun thing
S. go with the flow
C. systematic and prompt
In relation to leaders in business I tend to:
D. be the leader
I. hate directions
S. want the best for everyone
C. like exact instructions
In business, I tend to be:
D. bold and determined
S. calm and even tempered
C. predictable and conservative
When given an assignment, I am:
I. creative in finding solutions
S. focused on helping others
C. diligent and detailed
After writing down our corresponding letters (D, I, S, C) and tallying them by majority (i.e. if you had 4 “D”s then you were in the “D” group) we broke into our groups.
Everyone was to describe themselves, in one word, both the positive and negative, and someone recorded the responses. Each group had similar characteristics, very different from each other, needing different approaches.
Characteristics of the types are:
D type: dominant driven determined risk takers, results oriented, decisive, efficient, enjoy challenges, achievement driven, influential, innovative, but can be can be like dictators, bossy, impulsive, talk over others, insensitive to others. Their appearance: sharply dressed, quality clothing, wear jewelry, walk tall, have aggressive handshake, confidence in their demeanor, image conscious, talk fast, manicured hands. To make an impression on this type of person, need to be business-like, straight forward, assertive. To impact them, talk about the possibility of financial gain, get to the point, stay focused, show them what is in it for them, let them believe that they are in control. Listen attentively to their ideas, do not interrupt, be as agreeable as possible and try to build them up.
I type: influencing interactive inspirational, extroverts, passionate, risk takers, emotional, magnetic, animated, very social, stimulating, impulsive, full of life, but can be easily distracted, unrealistic, defensive, impulsive, too talkative, totally disorganized, tend to be late, too much drama, tends to waste a lot of time, not taken seriously. Their appearance: dress in bright colors, trendy, fashion conscious, love jewelry, bright makeup, tends to flirt, flatter, and touch a lot. To approach them, you need to be enthusiastic and upbeat, active and motivational, talk about exciting opportunities for possible cash for spending, make them the center of attention, visual stimulation, provide positive and fun environment. To impact them, be animated, use emotion, analogies, stories, allow them to be vocal and welcome their input, introduce them to important people and help them visualize what their future can look like.
S type: stable supportive sensitive, nurturing, agreeable, considerate, reliable, truthful, endlessly loyal, excellent listeners, compassionate, team players, giving, committed to providing service, and sensitive to the feelings of others, but can be indecisive, overly passive, overly supportive, providing help to a fault, tends to hold a grudge, sacrifice results for the sake of harmony, overly accommodating, Their appearance: casually dressed, wear earth tones, longer hair than most, soft spoken, laid back, calm, passive presence, more natural looking with less makeup. To approach them, be easy going, laid back and genuinely interested in building a relationship, be slow paced and not in a rush, ask about family, take time to build trust, recognition, inclusion, create vision of family life and cohesion. To impact them, be engaged, understanding, provide genuine sincere caring answers, tell them what to do in a supportive way, helping the greater group.
C type: controlled, conscientious, cautious, meticulous, orderly, high standards, professional, does diligence, organized, accurate, analytical, very high regard for integrity and systems, but, can be rigid, too critical of others, appear unemotional, stand-offish, aloof, don’t like change. Can over analyze. Their appearance: dress conservatively and professionally, wear blacks, browns, greys, tend be well kept, manicured, business like demeanor, pens in pocket, carry briefcase or portfolio. To approach them, be business-like, professional, accurate, slow pace, systematic, have outline, give facts, present in logical structure format. To impact them, be detail oriented and precise, do not over-embellish, ready with supportive documents, do not pressure, need time to process and evaluate.
Cater your personalities to communicate and relate with others. First you need to figure out what “type” the other person is and approach them accordingly. Look at how they are dressed, and then ask them a question, so based on their answer, you can figure out their type. Listen, observe, find their hot button to get them interested.
People like to work with people that are like themselves, so it is best to work with people you get along with. A business team needs all components and not too much of any one type.
DISCprofile.com website – gives full profile – 2 ½ hour test ~ $100 .
NLP = Neural Lingistical Programming – the unconscious brain and how it reacts. 90% is unconscious. We have belief patterns based on our life’s history. Brain does not process negatives (can’t don’t won’t) so always put things in the positive rather than the don’ts, etc.
One way to win and influence people is by mirror/matching them – speak slow if they speak slow, fast if they speak fast.
We move every 60 seconds. When you first approach people, pay attention to body movements. Most of the people will mirror the actions of the dominant person at the table – subtly copy what they do and do what they do. To test if you “have” them, do a body shift and they follow – you do have them. If they don’t follow, then go back to mimic them and then test later. C types take the longest to win. If you don’t “have “them, don’t ask. Talk to them later.
PHIL GROVE day 2
3 essential skills – Marketing (65), selling (10), strategies (12).
Advice to newbies:
1. 1st deal should be a low risk deal. No money but a lot of skill needed.
2. Learn a lot.
3. Don’t learn too much (take action).
4. REI, like all business, is a numbers game that starts with marketing.
5. Don’t try to do it all yourself. You will fail.
MARKETING – finding deals
65 methods – some paid, some free
Free: door hangers, stickeis, etc., letters of intent, business cards, FSBO marketing, magnetic signs, professional referrals, networking, realtors and the MLS, REOs and HUD foreclosures (get list, make random offers on all of them), door knocking, driving for dollars, past customer referrals, bird dogs, wholesalers, bulk REOs, social media, blogs/curation, search engine optimization, website, local search advertising.
Paid: direct mail – tax late, pre-foreclosure, divorce, probate, modeled list, bankruptcy, non-owner occupied, section 8 landlord list, bandit signs, mass media, newspaper ads, online advrtising, paid lead, affiliate marketing, pay per click advertising, REI matcher.
Phil’s top 6 Google pay per click, direct mail, paid lead service. Driving for dollars (make a list of abandoned houses) local search, craigslist
Big takeaway – #1 job is finding a deal. Most investors fail because of insufficient marketing.
STRATEGY- different ways to make money
referrals, buy & hold, house swapping, auction/option, lease/option, contract for deed, fix and flip, equity partnering, mortgage assign, wraps, wholesaling, short sales
cash = fast, advertise self as a cash buyer.
wholesaling – get property under contract, sell or assign the contract for a fee.
Buying subject-to – agreement to pay seller’s mortgage in exchange for the deed. Find motivated seller that does not want to pay their mortgage or else they face foreclosure. The catch is that they have to sign the deed over to you. (2 docs that matter – deed and the note. Whoever’s name is on the deed is the owner, the name on the note is the one who owes the money) Then you can renovate/retail, wrap, rent,
Fix & Flip – but property, renovate and sell retail. Most people underestimate cost of rehabbing by 50%. Must remember that it is NOT your house. Miscalculate what the house will realistically sell for. Non investment minded realtors tend to tell you what you want to hear, not necessarily the truth.
[Ace that you pull out when you have to get the deal] Equity Partnering – Subject-to (no $$) (with IOU for future profit share) partner with the seller and agree to share the profits. Renovate and retail.
Left brain close: when trying to negotiate with seller, negotiate profit, not price. Do a numbers close. Works well with one exception – the magic house. Then, use the magic close – get their numbers (how much they think it is worth, how much they think the rehab will be)
House swapping – trade house for house (no $)
Option-auctions buy the option contract (no $$) sell at retail auction get house on option.
Mortgage payment assignment. Buy and just get under contract w. standard master agreement (sub-to w/ option), sell by assigning contract for a fee. 82 million people that are not qualified to borrow – looking for houses that are financed.
**Buy and Hold. Sub-to owner finance conventional, rent, or sell retail in 5-10-15 years.
Million dollar plan. Buy $10 million of subject-to properties, rent them, wait until the market goes up. ****10 years from today is dependent upon what you do today.****
Listing referrals and combo plans. Do marketing for sellers, selling lead to realtor on your power team.
SALES – negotiating
Whenever send offers, have option period and subject to inspection.
Always ask, by the way do you need to have another house?
All-in-One Done-for-you video encyclopedia, one password, marketing, strategy, sales done for you.
REI marketing manager – seller website, seller squueze page, buyer squeeze pages, professional website, optional (paid) lead services, private investor MLS of owner finance deals, wholesale deals
Think bigger so great things can happen.
Disrupt the normal.
3 keys –
- all about relationships. Monetize relationships. People invest in people.
- Marketing – branding is the key. Always better when someone sells you than you sell yourself.
go from survival to competence to confidence to success to significance to legacy.
Broke people are always busy, Successful people are always productive.
BRUCE BUFFER official voice of the UFC and business and marketing and entrepreneur, told story of his businesses, life. [Aunty took a picture with him!]
Day 3 JT FOXX after an evening out and stuck in Waikiki because of tsunami warning
Strategic thinking – paint the picture for them.
“they can copy the how, but they can’t copy the why”.
The more exclusive you are, the more money you will make.
Won’t have everyone liking you -i.e. to be President with 51% of the vote, which means 49% don’t like you..
NIDO QUEBIN video highlights BetterLifeMedia.com
Examples of McDonalds, Prudential – people want to buy if you think of how to make people feel.
Pain of discipline vs pain of neglect. Performers focus on results, non performers focus on obstacles.
Do a Stop Doing list, rather than a To Do list.
Any improvement in our lives come as a result of change.
Why should people to do business with me? How easily can someone else imitate what I do? If I were to buy what you have to sell, would I think of you first, second, at all?
Brand awareness okay, brand preference better, brand insistence – best.
Great people have great attitude. Bad sandwich story. Your attitude expressed on the outside of you is the commentary of the person who resides on the inside of you.
JT FOXX resumes
Awareness – who you are, what you stand for, your mission statement, to become successful you have to be uncomfortable. Always be uncomfortable.
Education based marketing – build on client’s success.
Consideration, WIIFM – what’s in it for me. Show the immediate benefit of taking action now.
Action – want to be first to market – Innovation, determination, engagement, action.
The choices you make determine the reality of your outcome. How you change is how you succeed.
Branding – key. You want to be the authority in your field.
What gets measured gets managed, what get rewarded gets repeated. Know your numbers – what is working, what is not.
New Rules of marketing
- dominate (your niche) SOV = share of voice – have your own authority
- innovate – how are you different, stand out from everyone
- illustrate – CEO = chief experience officer
- articulate – move yourself from perception to consideration – move from”thinking about” to actually doing.
- Create the experience – inner engineering – clients want to buy the experience
- brand advocacy – reputation = brand, the brand doesn’t make the company, the company makes the brand. Brands are mirrors – want people to connect with you.Have authority, respect, aura of authenticity,
PHILL GROVE day 3
Branding How to
Started off not being on Google as the #1, now he is for Austin real estate investor
[ example of Houstons in Austin has best French dipped sandwich – Schiner Bock beer was Phill’s favorite beer to have – an insistence that he have that kind of beer.]
Brand – the personality that identifies a product, service, company, or person. People describe a brand in terms of their: thoughts, feelings, perceptions, images, experiences, beliefs, attitudes towards the product, service, company, or person and how it relates to others.
Value of Brand Awareness = 1, Brand Preference = 3, Brand Insistence = 10. Brand Advocacy is even more valuable – not only insist on using the brand but tells others about it = 12. “Life is too short to have a PC.” = the brand advocacy of Apple computers to an Apple fanatic.
How to get to brand insistence, brand advocacy is to give WOWs. Wow’s are anything that’s better than your competition. Examples: send a Christmas card, stay open past 5:00 pm, invite your customers to a special event, unexpected service. Avoid Un-Wows, i.e. un-returned phone calls, the run-around, a stupid customer service person.
You are a brand, and so is your business. Your brands are constantly “being built” with or without your attention. Googleability is key in today’s market. Good branding makes deals and business come to you, bad branding makes people avoid you.
Purpose of the marketing department is to eliminate the sales department. Good marketing makes the sale easy. Purpose of the branding department is to eliminate the marketing department.
You only get ONE chance to make a first impression. [Phil wore a suit to create a good impression.]
Branding starts with a name, or 3. For real estate, need 3 brands for different audiences – motivated sellers, buyers, investors, other services. Need 3 or more because the message is different to different audiences. [ We buy ugly houses – we sell houses by we-buy-ugly houses]
Brands take on identities (max 2-3) [ sony has a chemicals business, motorola makes bar code readers]
Motivated seller branding: audience is motivated seller, attract realtors, attorneys. Target audience wants to sell fast, no cost, no credit harm. Message, we buy houses, cash, fask, any condition, any problem = no problem. USP – Unique Selling Propostion, AMPS, solutions. Brand Equity value is low – few repeat customers, always ask for testimonials anyway.
Investor branding – other investors, power team members. What does your audience want – not to loose money, want money back with a nice return, want it back fast, ability to rinse and repeat. Message – we offer high return, low risk opportunities. USP – why would they want to do business with you. Brand Equity Value is super high – automatic deals, ask for testimonials.
Buyer branding – owner finance buyers, any buyers, realtors etc. Message – rent to own (higher response rate than “seller financing”) No bank financing. USP we do what realtor’s can’t to.
Generally recommend doing business in an entity LLC, LP, Corp. The entity that actually buys property (enters into contracts) is probably the Investor brand (or possibly the seller brand)
Consider doing dba (not really a company but using a different name as the master company), will simplify the business structure. Too many complex corporate structures for beginners not good. Instead, simplify and focus on building the business.
The 3 phases of being an entrepreneur.
- The new entrepreneur looking for the 1st deal – goes to intermediate entrepreneur – sometimes get stuck because they think they have it figured out, gets stuck at a certain level.
- The advanced
- The guru
The new entrepreneur – needs websites, business cards, voicemail message, REIAs and professional organizations. Watch your message – people don’t just listen to what you say, they watch what you do. Etiquette, USP – unique selling propositio, elevator speech, borrowed credibility (“my partner has done over 1000 deals”), aura of authenticity (at top of all George Ross’ leases even though he has 19 of them, they are called “Standard Lease”. Phill changed all his contract names to “Standard Master Agreement” and it makes things a lot simpler), mindset.
Website – most important is to capture leads. If you make people click on one more tab or link, you lose 50% of the people. Branded logo, social media integration, etc.
Business cards – getting to be billboards, making them look cool. Purpose is to exchange contact information, part of your brand. Ask “would Donald Trump do it”. Professional business cared– limit to logo on upper left corner. Name of company at top next to logo. In center of card, your name, your title (senior managing partner, etc.). Under that put your website: www.company.com. Put phone number on card, don’t put “cell phone” and your phone number, O: (808) 123-4567, F: (808) 123-7890, email address on the bottom left corner. Put your company email, i.e. firstname.lastname@example.org
Physical address on the bottom right corner. Leave back blank. Or, put picture of a project you are working on – little conversation starter.
Etiquette: Blocking and Tackling. Have great manners. Act like you belong. Dress for success – how you look – shoes, hair eye brows, grooming. Insert yourself into high net worth situations – benefits, charity events of the rich, the right parties. It can take time. Donating $10,000 to United Way, you get on the “list”. Surround self with wealthy people Have an elevator speech, include a USP. Professional storefront – company name, branding, etc.
[Case studies –
- Magic Trick Guy – poor dressed, missing teeth, stood in corner doing magic tricks, kept following around Phill, got into his personal space. His intro was “I can transform a $200K investment into $200B in under 3 months”. His brand was Crazy.
- Bulk REO guy in WDC – listend to webinar, bragged about success, intro looking for $50M. His brand was Idiot.
- Real estate club guy (multiple). Claims to have great deal but if you look into it, it is not a good deal. Brand = Rookie.
- Sharp looking kid at Billionaire Class – dressed shart, spoke well. Talked about working long hours, studying, training, doing marketing, looking for a good one. Brand – Go-Getter]Your USP – Unique Selling Proposition – if you have one, you have Super Powers. “I can sell your house in less than 30 days, at no cost to you and at no harm to your credit, even if you have little, no, or negative equity.” (as investor) “I list homes on the MLS, like other Realtors, and use 12 additional strategies to sell homes, that other Realtors don’t even know.” (as super realtor).
Elevator speech – 15 – 30 seconds. Who you are, USP
Phase II – The intermediate entrepreneur.
- position self as the expert. Make presentations to title companies, REIAs, meet up groups, etc.
- Elevator pitch – update pitch – leverage experiences
- brand leverage – leverage partnerships, affiliations – bought the preferred national vendor for short sales of Kenner Williams $5400 check to them.
- host beneficiary relationship 0 use 3rd party endorsements – always better than self promotion –
- orientation package – about me, bio, highlights, press kit, branding with picture
- social media and google-ability – build presence of Facebook, LinkedIN, YouTube (record all deals) do YouTube video showing deal, etc. case studies, publish, & on side of page all other videos, testimonials. When you do a deal, make a video.
Fan page for business on Facebook, brand yourself as a professional, talk about deals, problems that you are solving. Linkedin – more professional, has picture, various recommendations, has elevator speech, USP, links to website.
7. Internet Marketing – blog and advance internet marketing.
Phase III – Expert Entrepreneur
- Host your own events – bird dog breakfast, new entrepreneur group, meet ups, host a training event
- Loss Leaders – starting your own REI clubs, radio show, etc.helps build your brand
- Reputation management – bigger pockets, blogs, endorsements, online presence
- Internet Marketing – PPC, SEO, etc. and advanced traffic
- Alliances with other Gurus – internet marketing, affiliate marketing, partnerships (i.e. Phill and Jt Foxx)
LINDSEY JEAN – Cash Cow Know How. Single Mom Secrets to Fast Cash Finding Deals
Dave Asarnow High Heels and Hard Hats
how to get deals chasing you rather than you chasing deals
getting cash buyers fighting to give you their money for deals
do it on autopilot from home. Program your mind for success, eliminate any negativity, no excuses, stop complaining, act smarter, not harder, take action & take command of your destiny.
5 quick and easy steps to quick cash (assignments)
- build team of birddog agents – local professional agents. Most important step – recruiting the right agents that specialize in areas, Right agent – google REO agents, these control the sale. Short sales agents , brand new hungry agents. Use Lyndey’s “hot Deal” handbook.
- analyze deals they find for you – deal analyzer spread sheet (60 seconds) – determine ARV (after fixed), how much to fix, our offer price = ARV goal 65%. Cost of capital 12%, closing costs 7%, everything is done in the MLS. San Diego 73%, Santa Barbara 85%, Los Angeles 80% San Bernardino 65%. Tell agent to look at what cash buying investors are buying. Over last 6 months, look at rehabbed properties & what they sold for, look at what the investor paid, look at what they rehabbed – put in the numbers. To determine ARV, pull other like-kind properties (comps)
- submit “yes!” offers – relationship between you and listing agent, how you present your offer. Secret: clean cash offers (no contingencies/appraisals/inspections) buying as is, in as in condition, in other – “buyer intends to sell the property in some point in the future for a profit”. Never lowball – always come in with highest and best. Have agents offer price using deal analyzer. Sometimes make smaller checks – all real estate agents are happy & willing to work with you again.
- Decide which buyer gets the deal – review the waiting list – who you like the most, who has the most money, text or email blast text their purchase price, rehab, what they can sell it for. Quality of buyer vs quantity. Need integrity, honor, ethics, enjoyable.
- assign the contract for quick cash Present the deal, escrow manages the entire deal, you will be paid as a buyers consultation fee.
*do short sale offers – LOTS – because they are taking such a long time.
Better to be a normal investor rather than agent – less fiduciary duties. Can be signed on as their assistant 7 have access to MLS.
Not about who you know, it is about who knows you.
Find Cash Buyers (ask them what they want & how much they would pay for it), then find the houses that they want (using your real estate agent) = the secret formula.
More people have invested in 2012 ($11 billion) than 2010 and 2011 combined.
(sold her program to many of the attendees. Aunty did not buy)
follow through, speed of implementation, trust but verify. No excuses, crazy 8 – 8 people, talk to them 8 times, over an 8 month period, circle of influence.
Credibility equals power, power equals access, access equals brand.
Four steps towards getting branded
- Personal Branding – this is you – creating the brand – featured on “self made list” website featuring pictures and profiles of celebrities and other successful entrepreneurs – including you! 10,000 twitter followers, facebook/linkedin/google fast track 9social media in 7 minutes with Curt Maly $1997 value), the art of building brand equity Cds
- Brand monetization – leveraging the brand to make money and have deals come to you
- brand innovation – growing the brand through innovations and brand associations
- brand identity – promoting and refining the brand with advanced techniques
All in all, it was a VERY long weekend. On a scale of 1-10 with 10 being the best of the best, Aunty would rate this event as a 6. Better than most, but the content wasn’t really there. It was as if JT Foxx wasn’t really excited to be there – perhaps because we didn’t fill the room with prospects. For myself, most of the presentations were repeat performances – and so the newness of the message was diminished. However, the messages were still very good, especially if hearing them for the first time.
Raymond Aaron (does a program on the Monthly Mentor with daily videos sent to Aunty’s email) was not there, which is a big void in this group. Interestingly enough, Phill Grove ran out of time on the third day and did not go into his 9-9-9 which sounded a bit like Raymond Aaron’s 10-10-10 of getting a book written, formatted, and published in order to create one’s “brand”. Aunty misses Raymond Aaron’s excellent presentations.
Hopefully these notes are understandable to readers. If you have any questions, just send them over as a comment and I’ll see about finding the answers.
Mahalo for reading through a very long report!