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Hi! It’s Lou Brown. With another one of my 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 28. Give concessions slowly. If I do this, will you do that? Okay. What that means is that there are so many different items in a negotiation and it’s important because they might ask you to pay the closing costs, for example. Well, closing costs can be a large amount of money and it may be something that if you agree to that, then what are you get in return. So it’s important that you’re not giving up all the stuff in the beginning, being anxious to actually get the deal. And then later finding out that actually, it wasn’t nearly as profitable as you thought it was going to be. So consider all of the different expenses and consider that when the seller asks you for something that you get something in return.
Hi! it’s Lou Brown. With another one of my 101 amazing ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 29. Ask questions. Don’t talk. Now, what does that mean? Ask questions. Don’t talk. Well listen, you start running your mouth then all of a sudden you can actually talk over the possibilities. So whenever I’m with a seller, I think to myself, how can I ask a question and discover more? Mr. & Mrs. Jones, how long have you owned the property? No kidding. Now the loan that’s on the property currently, is that the original loan that you took out at the time that you purchased the property, or have you refinanced that along the way or adjusted that mortgage along the way? Oh, no kidding! Now tell me, have you ever updated the, say the air conditioning system or the roof or the appliances, or has anything been updated in the house?
Hi! It’s Lou Brown. With another one of my 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 30. Find out what they need, meaning the seller. Then craft your offer to show them how you’ll give them what they need. So by that I mean find the seller’s pain. The seller’s pain is a very important thing for you to discover. Number one and number two to address. So in your presentation to the seller, as you’re listening to them, as you’re discovering, in another tip I mentioned, ask questions, discover what their situation is, discover what their pain is. Now once you do that, then you’re going to use that to help solve their problem. Explain to them what it is that you can do for them to solve that problem. Tie in their problem with your solution.
Hi! It’s Lou Brown. With another one of my amazing 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 31. Justify your offer. Show the seller what it will cost them to sell their home the traditional way or the typical way. Alright, so, when I’m making a presentation to the seller, one of the things we do is a thing called a cost to sell worksheet. We actually share with the seller what those costs are. We talk about the real estate commission. If they were to list their home, we talk about closing costs, we talk about repairs to the property, all the different aspects of what it will cost them to sell their home. And if they were to move, let’s say they’re being transferred to another state, then that’s another cost that has to be considered as well.
Hi! It’s Lou Brown. With another of my 101 ways for real estate investors like you to win, close more deals, accelerate your income, accelerate your cash flow. So this is tip number 32. We’re going to talk about borrowing in this series. So this one’s going to be, Borrow private money from folks who are not in the business. Let me tell you what that is. So basically a lot of folks that are close to real estate, they also understand money and they understand interest rates and they understand the power of that and they understand just how much profit you can make by them, allowing you to borrow their money. And so typically when you’re close to real estate, you’re actually paying more for the money if you’re borrowing it from another real estate investor or if you’re borrowing from a private money lender that’s affiliated or associated with real estate.
Hi! It’s Lou Brown. With another of my 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 33. Alright, so, before you say what you’ll pay, ask them what they are earning on their money. Then offer to increase that. Now, what do I mean by that? Well, so many folks have their money sitting in bank accounts right now, lots of it, and it’s just sitting there earning 0.0 something percent, which is zero. In fact, because of inflation, inflation has averaged 3% over the last 20 years according to the Bureau of Labor Statistics, 2.94% to be accurate. Then anyone who’s earning less than that is really going backward. Now imagine that you can step in as a real estate investor and you can offer them something like what the banks charge, for example. So if you were to go to the bank as an A credit borrower and borrow at today’s rates, look at that rate.
Hi! It’s Lou Brown. With another of my 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 34. Help someone who has some money that they would like to loan. Put that money to work. And if they’ve got a self-directed IRA, fantastic, they can move that money. They can actually loan that money to you. But what if they’ve got money in a retirement account and it’s not a self-directed account? Self-directed means that they can actually direct that the money comes from the IRA Custodian to you. And what you give back is a note to the IRA Custodian. And they hang on to that and watch the payments come in based upon those notes. Well, that’s exactly what you can help Mrs. Jones do. You can help her move her money from a traditional IRA into what’s called a self-directed IRA and there’s plenty of self-directed IRA custodians out there in the world that can take care of that for you.
Hi! It’s Lou Brown. With another of my 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 35. Number 35. Now, what’s important for you is that I’m teaching you about borrowing money, but not the traditional way. I’m teaching you about how to borrow money, the untraditional way that I’ve done since I got started in this business. I’ve never been to a bank. I’ve never qualified for a loan on a single-family or small multifamily property. If I can do it, I know you can do it. I know you can avoid all of the expenses, the headaches, the pain, the suffering that it takes to qualify for a traditional loan. Now on number 35 I say, line up access to money in advance of a deal. Now, what I mean is that once you contact, in other words, plan in advance. Put this on your calendar. Know that you’re going to have a deal come and in some cases, you’re going to need all cash or you’re going to need rehab money or you’re going to need down payment money, you’re going to need some cash.
Hi! It’s Lou Brown. With another of my 101 amazing ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 36. Read all the paperwork. Know what you’re agreeing to. This is so important. I’ve seen many of my licensees around the country borrow money from third parties. They didn’t even know what they were getting themselves into. I’ve seen them borrow from banks. For example, banks love to take all of your assets, pull them together into one what’s called a blanket loan. And then make you subject to them as if they decide that your property’s not worth what they think it ought to be worth, they can call that entire loan due. Imagine that that was in that paperwork all along. They have the right at any time that they feel unsecure to literally give you a call and say, by the way, our loan committee met and we decided that we just want to go ahead and receive the money-back on that loan.
Hi! It’s Lou Brown. With another of my 101 ways for real estate investors like you to win, close more deals and accelerate your cash flow. Today’s tip is number 37. Always offer to have the interest accrue. This means you make no payments. Wow! How good is that? Well, why would that be good for the lender? Well, let’s say they have a retirement account, and let’s say they’ve loaned to you at say 6% interest. And imagine that that interest is accruing. That means that every month that you don’t make a payment that you owe interest on the original amount borrowed, plus your own interest on the payment that wasn’t paid so they can earn interest accruing. Well, what does that mean by the end of the year? Well, let’s say that the loan was $100,000 you just saved the payment every month on that. That could help your cash flow dramatically. And what you could do with that additional cash flow is buy more marketing.
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