Four Steps To Build Your Wealth
There is no better time than now to start building wealth that will last you a lifetime. Sounds great, right? Not having to worry about when you will retire, how you will pay for college educations or what you will do if you have an unexpected expense? I want to help lead you on this path to unlimited wealth by sharing some of my biggest real estate investing secrets that are proven to work.
If you have the desire to make extra money, then real estate investing is for you. You just have to be dedicated and willing to implement proven systems and strategies. The only way you will fail is if you don’t act now.
First, you need to define your target market. I generally advise sticking to properties within a 30-minute radius to your home. You also need to choose whom you will market to. My success has been built on finding motivated sellers. Some examples include:
- Couples Going Through a Divorce
- Relocating Out of State
- Financial Hardships
- Expired Listings on the MLS
Essentially, people who are in a bind and need to sell their home quickly. How do you find these motivated sellers?
- Develop relationships with local real estate agents. They can give you access to the MLS and things like expired listings.
- Use foreclosure lists.
- Give out business cards to your friends, family, and colleagues.
Next, you need to attract these motivated sellers. To do this, you need an effective marketing campaign. A great campaign will include a series of direct mail items sent over a period of time. You will send these mailings to the leads you developed when you were defining your target market. You can also put bandit signs around town, advertise online, and use referrals from previously satisfied clients. When you do get leads, you always want to make sure you follow-up. There is a lot of truth to the statement the fortune is in the follow-up.
Once you set your target market and start to attract motivated leads, you will need to screen them to see if there is potential for a lucrative deal. To qualify the lead, you can use a phone form that outlines all of the questions you should ask the homeowner. It will include things like their loan amount, interest rate, if they have multiple liens on the property and why they are motivated to find a quick solution. If you see potential, you can set the appointment.
Before the appointment, you want to make sure that you have an idea on what exit strategy you will use by analyzing things like the fair market value, comps in the area, and the quality of the home. Once you decide what you can pay, you will be able to sit down and confidently explain how you can help the property owner.
Once you get to the appointment, you will use something called the P-E-N strategy.
Once you have built rapport, earned credibility, educated the seller, and negotiated on a mutually beneficial price, you can get the purchase and sale agreement signed and move on to closing.
When you close, you will need to open escrow and facilitate the closing using an investor-friendly closing attorney or title company. If you are not sure whom to use, get referrals from a reputable real estate agent in your area.
As your business grows, I always suggest automating everything that can be automated. This includes your marketing campaigns, checking comps, and even things like submitting offers. If you do this, you can spend more of your time finding more deals and increasing your wealth exponentially.