I got this on my email this week...from a "desperate" housewife - she's not really desperate. She is thrilled and excited to become a millionaire just like some of my students. I get questions like what she ask below all the time - about how to sell properties specially if it's their first one. Below is her question and how I answered it:
"Good day! I am housewife for 8 years now and I have three sons, ages 7, 5 and 3.
I've been receiving notice for your webinar but wasn't able to attend one. Until last Wednesday, when we (my husband joined me) decided to give it a try. We were really inspired listening to you and Bo Sanchez. My husband right away advise me to join your mentoring program and so we avail of your promo.
Since then, I started reading blogs on your website. I wanted to do it right away and so i contacted my friend who has been offering me to sell her sister-in-law's lot here in Cavite. It's been two years now since she offered it and surprisingly the lot is still available. I just would like seek advise from you, as to where should I start to be able to easily sell this lot? What are the things I should consider?
Thank you in advance. And i know that I have taken the first step of becoming the next millionaire.
God Bless.
The next millionaire,
Jennifer B.
Jennifer,
Since this is your first deal and I am assuming you have no money to buy it, you should look into the strategy of "selling it before you buy it". As I explained in the webinar, the way to do it is put a non-exclusive option to buy the land in order to control it and once you have control you can market the property in order to sell it. I posted the recording of the webinar here - http://trulyrichclubrealetv.blogspot.com/
How do you market it to sell it?
You can use the Marketing Triangle (which I discussed several times in this blog) - which is comprised of three legs - you have to know your target Market or target buyer for the property, once you do or set who your target market is, you can then formulate a compelling Message which attracts your buyer to the property...which in turn you deliver through the appropriate Media that will reach your target market.
I know it sounds complicated at first but you have to think it through using the Marketing Triangle. If not, you will become like the thousands of failed beginning real estate investors who never took the time to understand marketing. And marketing is key to success in this business and in any other business.
So in this instance, who is your target Market or target buyer for this lot/land? In order to answer this question you have to answer the following questions:
- How big is it? That will determine who will be able to afford it.
- is it appropriate for a builder?
- or is it appropriate for a developer?
- is it suitable for a single family home?
- if so, is that house big enough for a family or for a young single professional?
- what about the area where the land is in? is it a purely rental area or an area suitable for a home buyer?
After answering these questions, you will then formulate your Message. If your target Market is an investor-landlord for instance, then your message should contain things that appeal to landlords. Use words like ROI (return on investment), cashflow, turnkey, etc. Are you going to sell the lot based on price - that is, you will provide tremendous discount to your target buyer? Or are you selling it based on location?
Lastly, based on who your target market is, what are the appropriate media you can use to reach your target market? For instance, if your target market is an OFW (Overseas Filipino Worker) then you need to do online marketing. If you target market is a landlord who lives in the area, you cannot ignore bandit signs. Notice I said "media" not medium. You need to use several marketing media - at least 5 to reach your target market. Going back to the example of the OFW, you can do the following:
1. email blast - asking people in your contact to refer you a buyer and in exchange, you pay a referral fee of P10,000 or $200
2. Craigslist.org - or other online classified ads (google the term "free online classifed ads")
3. Bahay.ph - which is a must since this property is in the Philippines
4. Friendster - social media is becoming more and more popular. You need to combine this with asking people to refer you a buyer in exchange for a referral fee.
5. Bandit signs - on the lot itself and near the property
6. Pass out flyers to the neighbors again asking for referrals
I know I did not give you the answer you're looking for. I did not give you a "fish" ready for you to eat. Instead I taught you how to fish - I taught you the thinking process in order to not just answer your specific question but this thinking process will help you sell any property.
dedicated to your success,
Trace
P.S. Last week Bo Sanchez and I did a powerful webinar - How to Buy Real Estate using your Spit or Saliva. For those who were not able to attend it, I posted the webinar recording or replay at http://trulyrichclubrealetv.blogspot.com/
Saturday, July 11, 2009
Tuesday, July 7, 2009
How to Buy Houses Using your Saliva (part 2)
Bo Sanchez and I had a great webinar last night about how to buy real estate using your "saliva" or "spit". As we Filipinos say "Laway lang ang puhunan" (Saliva is your only capital). There are so many questions from 260+ of you who have attended this awesome event.
As a BONUS for attending, here's the link to the $39 eBook "got Spit? Make Money in Real Estate Even if You're Broke".
http://monneyyoda.posterous.com/got-spit-make-money-in-real-estate
dedicated to your success,
Trace
P.S. There are still a few slots left for my "virtual mentoring" program - http://TrulyRichRealeTV.com. Sign up NOW for only $0.99.
As a BONUS for attending, here's the link to the $39 eBook "got Spit? Make Money in Real Estate Even if You're Broke".
http://monneyyoda.posterous.com/got-spit-make-money-in-real-estate
dedicated to your success,
Trace
P.S. There are still a few slots left for my "virtual mentoring" program - http://TrulyRichRealeTV.com. Sign up NOW for only $0.99.
Saturday, July 4, 2009
How to Buy a House Using Just Your Saliva
We Filipinos have an expression: "Laway lang ang puhunan"...which literally means "Saliva is your only capital". We use this expression when we hear about an entrepreneur who is able to start a business without any capital. The entrepreneur just used guts, street smarts and "sweat equity" to pull it through. This is Filipino resourcefulness at its finest. This is how a janitor like Henry Sy can become a multi-billionaire entrepreneur in his lifetime. They start a business with very little..sometimes ZERO capital and their first business becomes successful and funds their subsequent businesses.
In real estate investing, I've heard 2 complaints when I tell people that real estate is a great investment:
1. Trace, real estate is good but I have no money to invest. The bank told me I need 20-30% downpayment. That's a lot of money.
2. Trace, real estate is good but my bank said I cannot qualify for a loan because I don't have any credit and I have no collateral either.
Well you can buy a house...even a big apartment complex just using your saliva. I have done it... and a lot of my students have done it too. Let me explain how.
There are two ways to buy real estate without using any money or credit..."Laway lang ang puhunan". The first one involves selling the property even before you buy it and the second one is by taking over the loan payments. Let me discuss both methods in detail here.
1. Sell it before you buy it
How would you like an extra $5,000 or P250,000? What I am about to reveal here will give you the ability to create quick cash with zero risks and you don't need any money or credit. There are five steps to doing this:
1. Find a property - this is usually a house in a good area that needs some repairs or renovation
2. Control it - notice I did not say "BUY" it. All you need is control a property with an Option to buy. An option gives you the right to buy the property but not the obligation. Since you have the right to buy it, you have the right to sell it even without owning it.
3. Find a buyer - now that you have control on the property, you can then put out marketing out there to sell the property
4. Sell it before you buy it - after you have found a buyer, you can have your buyer sign a Purchase Agreement to buy the property from you or buy your Option to Buy
5. Profit from it - it's not over until it's over. You need to go to closing and ensure that all the documents your buyer need to buy the property are handled properly by the title company or your lawyer. If you do this last step well, you will get paid and paid handsomely at that.
So with Selling a house before you buy it...how do you buy it with no money or no bank loan? Your buyer brings the money or the cash to buy the house NOT you. Your buyer gets the loan or mortgage (if ever) not you. So...even if you're dead broke, penniless and no banks will lend you money, you can buy a house and profit from it.
If you think this only works in the US, think again. My very first student Thea Santos, made P260,000 on her very first deal acquiring control on a property then selling it to a landlord for a price higher than her acquisition price.
To know more about this, I am doing a webinar with Bo Sanchez on July 6, 8 PM Eastern time or July 7, 8 AM Philippine time. Here's the link to register. https://www2.gotomeeting.com/register/433193595
958 people have already registered and there is a total of 1,000 "seats" - so there are only 42 seats left.
2. Take Over the Loan Payment
In some situations, one can acquire properties by taking over the existing loan payment. This will not work in all cases but when it does, it can be a gold mine. I've made $30,000 on one house that I "overpaid" for by taking over the loan payment. I sold the house on a rent-to-own. The buyer paid the monthly rent, a part of which went to paying the loan and I got some passive income to boot. I discussed the details on how I did it in my book "Think Rich - Quick". You can read it by clicking on the link to the right hand side of this blog post.
dedicated to your success,
Trace
P.S. For more details on how to acquire real estate using just your saliva, register for the webinar NOW while there are still some seats left. Here's the link: https://www2.gotomeeting.com/register/433193595
P.P.S. You can get me as a mentor for less than a tall, Frapuccino Starbucks coffee! Here: http://TrulyRichRealeTV.com
In real estate investing, I've heard 2 complaints when I tell people that real estate is a great investment:
1. Trace, real estate is good but I have no money to invest. The bank told me I need 20-30% downpayment. That's a lot of money.
2. Trace, real estate is good but my bank said I cannot qualify for a loan because I don't have any credit and I have no collateral either.
Well you can buy a house...even a big apartment complex just using your saliva. I have done it... and a lot of my students have done it too. Let me explain how.
There are two ways to buy real estate without using any money or credit..."Laway lang ang puhunan". The first one involves selling the property even before you buy it and the second one is by taking over the loan payments. Let me discuss both methods in detail here.
1. Sell it before you buy it
How would you like an extra $5,000 or P250,000? What I am about to reveal here will give you the ability to create quick cash with zero risks and you don't need any money or credit. There are five steps to doing this:
1. Find a property - this is usually a house in a good area that needs some repairs or renovation
2. Control it - notice I did not say "BUY" it. All you need is control a property with an Option to buy. An option gives you the right to buy the property but not the obligation. Since you have the right to buy it, you have the right to sell it even without owning it.
3. Find a buyer - now that you have control on the property, you can then put out marketing out there to sell the property
4. Sell it before you buy it - after you have found a buyer, you can have your buyer sign a Purchase Agreement to buy the property from you or buy your Option to Buy
5. Profit from it - it's not over until it's over. You need to go to closing and ensure that all the documents your buyer need to buy the property are handled properly by the title company or your lawyer. If you do this last step well, you will get paid and paid handsomely at that.
So with Selling a house before you buy it...how do you buy it with no money or no bank loan? Your buyer brings the money or the cash to buy the house NOT you. Your buyer gets the loan or mortgage (if ever) not you. So...even if you're dead broke, penniless and no banks will lend you money, you can buy a house and profit from it.
If you think this only works in the US, think again. My very first student Thea Santos, made P260,000 on her very first deal acquiring control on a property then selling it to a landlord for a price higher than her acquisition price.
To know more about this, I am doing a webinar with Bo Sanchez on July 6, 8 PM Eastern time or July 7, 8 AM Philippine time. Here's the link to register. https://www2.gotomeeting.com/register/433193595
958 people have already registered and there is a total of 1,000 "seats" - so there are only 42 seats left.
2. Take Over the Loan Payment
In some situations, one can acquire properties by taking over the existing loan payment. This will not work in all cases but when it does, it can be a gold mine. I've made $30,000 on one house that I "overpaid" for by taking over the loan payment. I sold the house on a rent-to-own. The buyer paid the monthly rent, a part of which went to paying the loan and I got some passive income to boot. I discussed the details on how I did it in my book "Think Rich - Quick". You can read it by clicking on the link to the right hand side of this blog post.
dedicated to your success,
Trace
P.S. For more details on how to acquire real estate using just your saliva, register for the webinar NOW while there are still some seats left. Here's the link: https://www2.gotomeeting.com/register/433193595
P.P.S. You can get me as a mentor for less than a tall, Frapuccino Starbucks coffee! Here: http://TrulyRichRealeTV.com
Monday, June 29, 2009
Online Marketing Does NOT Work
I've heard it before...even from my own team.
"Trace, we tried everything...but online marketing does NOT work. Only signs sell properties"
Hmmm...let me think this through. NO...online marketing works if you do it right. I teach my students the concept of the Marketing Triangle. The three components of the marketing triangle are:
1. The Market
2. The Message
3. The Media
If you get one of these "legs" wrong, or one of them is "broken", you don't have a triangle and your marketing will fail. So it's crucial to get all components right.
The Market
There are 4 different types of buyers:
1. Renovators - these are folks who will renovate a property then re-sell them for a profit to..
2. End buyers or retail buyers - these are folks who will buy a property to live in it
3. Landlords - these are folks who will buy a property, maybe renovate it a little and then rent them out
4. Tenant/buyers - these are wannabe retail buyers but can't and so they rent the property with an option to buy it
Depending on the area and depending on the property, your target market or target buyer could be different even within one type of buyer. For example, let's say the area where your property is at is mostly a rental area. In this case, you're most likely looking for a tenant or tenant/buyer. Let's say the price range is affordable to first time home buyers. The property has only 2 bedrooms. Therefore, your target market is probably a couple or a couple with only 1 kid and this could be their first home. However, since the area is mostly a rental area, it will probably attract tenant/buyers or perhaps you should be ready to accept purely tenants.
If on the other hand, the property is in a good neighborhood with some re-sale activity, then you can probably sell the property to a newly wed couple, or a couple with no kid or just 1 kid. Obviously, the property is going to be too small for a family with 2-3 kids.
The Message
The marketing message you put on your marketing must appeal or must be relevant to your target market. You have to think of WIIFM - which is what everyone are thinking "What's in it for me?" That is: you have to think of your target market and what are the things that are relevant for them. In our example, since our target market is a first time home buyer...a couple or couple with 1 kid...the things that are relevant to them are:
1. concept of home ownership - since it's likely their first home, they are renters and they can't believe they can be home owners
2. downpayment - they probably have not saved much
3. monthly payment - it has to be affordable
4. just enough room...
If these are the things that are relevant....then the message on your marketing must say things like:
"STOP MAKING YOUR LANDLORD RICH! YOU can OWN a HOME. Email me to find out HOW"
"Own your first home with NO MONEY DOWN and only $14 a day!"
"Can't afford a home? It's easier than you think."
"STOP RENTING! Buy a home with NO BANKS"
"CRAMMED IN A ONE BED APARTMENT? Live in a 2 bed home for lower than your rent"
If you say things like the ones I listed above in any marketing media, whether online or offline, I guarantee it...your phone will ring off the hook!
The Media
Based on your target market and your message, what media do you use to reach your target market? If your target buyer is an old time landlord who wants to build a portfolio of rentals in a lower priced neighborhood which is purely a rental neighborhood, then marketing online will likely not work because the landlord buyer is probably not looking online to buy these "cheapies". He is relying on what people in the neighborhood are telling him and if such is the case, then Word of Mouth marketing is key.
If on the other hand if we go back to the example of a first time home buyer - couple with 1 kid (or no kids)...is it possible to use online marketing to reach this target buyer? YES! You have to ask...where online do these folks are looking?
Craigslist is a good starting point and definitely should NOT be ignored. You can blog and use keywords like "first time home buyer", "Obama credit", "home ownership" in your blog. These folks could be looking at For sale by owner websites - so check out FSBO.com, byOwner.com, etc. If you want to take it to the next level, you can ask which websites do these folks check out? For example, if they are a young couple with 1 kid..there kid is probably a toddler, even a baby (since they are first time home buyers chances are they are young and have a young kid). Therefore, maybe you can advertise in websites geared towards toddlers...or pediatricians' websites...or even websites that sell toys...you get the idea.
So...there you have it. I have given you the three legs of the Marketing Triangle - and Media is just one of them. Online marketing works if your target buyer is using it to find properties and if your marketing message is relevant to them.
dedicated to your success,
Trace
P.S. Talking about online marketing, you should NOT miss my webinar tomorrow night - Tuesday, June 30, 9 PM Eastern time (that will be Wednesday, July 1 9 AM Philippines). In this webinar, I am interviewing a Filipino American internet millionaire. Click the LINK to register: https://www2.gotomeeting.com/register/657070530
"Trace, we tried everything...but online marketing does NOT work. Only signs sell properties"
Hmmm...let me think this through. NO...online marketing works if you do it right. I teach my students the concept of the Marketing Triangle. The three components of the marketing triangle are:
1. The Market
2. The Message
3. The Media
If you get one of these "legs" wrong, or one of them is "broken", you don't have a triangle and your marketing will fail. So it's crucial to get all components right.
The Market
There are 4 different types of buyers:
1. Renovators - these are folks who will renovate a property then re-sell them for a profit to..
2. End buyers or retail buyers - these are folks who will buy a property to live in it
3. Landlords - these are folks who will buy a property, maybe renovate it a little and then rent them out
4. Tenant/buyers - these are wannabe retail buyers but can't and so they rent the property with an option to buy it
Depending on the area and depending on the property, your target market or target buyer could be different even within one type of buyer. For example, let's say the area where your property is at is mostly a rental area. In this case, you're most likely looking for a tenant or tenant/buyer. Let's say the price range is affordable to first time home buyers. The property has only 2 bedrooms. Therefore, your target market is probably a couple or a couple with only 1 kid and this could be their first home. However, since the area is mostly a rental area, it will probably attract tenant/buyers or perhaps you should be ready to accept purely tenants.
If on the other hand, the property is in a good neighborhood with some re-sale activity, then you can probably sell the property to a newly wed couple, or a couple with no kid or just 1 kid. Obviously, the property is going to be too small for a family with 2-3 kids.
The Message
The marketing message you put on your marketing must appeal or must be relevant to your target market. You have to think of WIIFM - which is what everyone are thinking "What's in it for me?" That is: you have to think of your target market and what are the things that are relevant for them. In our example, since our target market is a first time home buyer...a couple or couple with 1 kid...the things that are relevant to them are:
1. concept of home ownership - since it's likely their first home, they are renters and they can't believe they can be home owners
2. downpayment - they probably have not saved much
3. monthly payment - it has to be affordable
4. just enough room...
If these are the things that are relevant....then the message on your marketing must say things like:
"STOP MAKING YOUR LANDLORD RICH! YOU can OWN a HOME. Email me to find out HOW"
"Own your first home with NO MONEY DOWN and only $14 a day!"
"Can't afford a home? It's easier than you think."
"STOP RENTING! Buy a home with NO BANKS"
"CRAMMED IN A ONE BED APARTMENT? Live in a 2 bed home for lower than your rent"
If you say things like the ones I listed above in any marketing media, whether online or offline, I guarantee it...your phone will ring off the hook!
The Media
Based on your target market and your message, what media do you use to reach your target market? If your target buyer is an old time landlord who wants to build a portfolio of rentals in a lower priced neighborhood which is purely a rental neighborhood, then marketing online will likely not work because the landlord buyer is probably not looking online to buy these "cheapies". He is relying on what people in the neighborhood are telling him and if such is the case, then Word of Mouth marketing is key.
If on the other hand if we go back to the example of a first time home buyer - couple with 1 kid (or no kids)...is it possible to use online marketing to reach this target buyer? YES! You have to ask...where online do these folks are looking?
Craigslist is a good starting point and definitely should NOT be ignored. You can blog and use keywords like "first time home buyer", "Obama credit", "home ownership" in your blog. These folks could be looking at For sale by owner websites - so check out FSBO.com, byOwner.com, etc. If you want to take it to the next level, you can ask which websites do these folks check out? For example, if they are a young couple with 1 kid..there kid is probably a toddler, even a baby (since they are first time home buyers chances are they are young and have a young kid). Therefore, maybe you can advertise in websites geared towards toddlers...or pediatricians' websites...or even websites that sell toys...you get the idea.
So...there you have it. I have given you the three legs of the Marketing Triangle - and Media is just one of them. Online marketing works if your target buyer is using it to find properties and if your marketing message is relevant to them.
dedicated to your success,
Trace
P.S. Talking about online marketing, you should NOT miss my webinar tomorrow night - Tuesday, June 30, 9 PM Eastern time (that will be Wednesday, July 1 9 AM Philippines). In this webinar, I am interviewing a Filipino American internet millionaire. Click the LINK to register: https://www2.gotomeeting.com/register/657070530
Monday, June 22, 2009
How to Sell a Property You Just Can't Sell
Selling a property that just can't seem to sell is a tough one. I've been through it before and I won't even wish it for my worst enemy (if I ever I have an enemy which gladly, I don't). The anxiety of not knowing what will happen next month...the terrible feeling that once again...you will most likely pay a mortgage payment without any income coming in...and the certainty that the profit you expected when you first bought the property is now a lot less and continues to drop every single month you don't sell the property...all combine to make you stressed out with a property I call the "slow mover".
If you're in this situation...I can completely relate to you. I've been in that situation several times. There are several solutions to a property that is NOT selling and here are some of them (if you have others, email them to me at MoneyYoda@Gmail.com or put it here as a comment. I would like to learn from you too):
1. eXtreme Marketing - this is what I teach my students and franchisees. Simply put, eXtreme Marketing is putting out a compelling marketing message to your target market (or target buyer) exposed several times through multiple marketing media. If your house is NOT seling, what is your marketing message? Is it the boring: "3 bed/2 bath house for sale $90K"? If I am your buyer, why will I call you with your boring message when there are gazillion other houses with the same marketing message? Instead, make it something like this: "Own a 3 bed home for the price of dinner" (or something like that). You're wondering...price of dinner...what could this mean? See, I've aroused curiousity in your mind because of a simple twist and if you're in the market for a 3 bed home, you will likely call ME versus my competition. I will talk more about this in my webinar this Thursday 9 PM (Eastern time in the US which is 9 AM Friday in the Philippines). Register here: https://www2.gotomeeting.com/register/274254043
Lastly, the other aspect of eXtreme Marketing is having multiple media exposed several times. You need to put out 10-20 bandit signs per week with your eXtreme marketing message spread out along busy intersections near the house you're trying to sell. You just can't have one or two signs. You also need to market your property using multiple media - not just signs. You have to put your property online. You need to talk to real estate people about it (real estate people? You know...real estate agents, real estate lawyers, people working in title companies, property managers, insurance agents, etc) and ask them to refer you buyers for your property.
2. Be flexible on your price and or terms - you have to sometimes cut your losses and move on. You can recover your losses with other properties so be flexible on the price or terms or both. For instance, maybe offer to finance the closing costs of the buyer or give the buyer some repair credit at closing such that the downpayment your buyer needs to come up is close to ZERO. In fact, market the property as ZERO DOWN and watch your phone ring off the hook. If they are qualified for a mortgage, show the house and if they like it, sit down with them and brainstorm how they can buy the property with ZERO DOWN. Maybe there is something you can buy from them or trade with them such that the cash value of that trade is their downpayment. Be creative.
3. Stage the property - that is help the buyer imagine what it would be like to live in your house. Make it feel like a home to them. You can put small furnitures, paintings, floor mats and other stuff that evokes a good emotional response from your prospective buyers. Candles by the kitchen counter top or rubber ducks by the bath tub are just some examples that come to mind. Staging the property will result in you separating your property from the competition.
4. Owner financing or rent to own - in today's environment, financing is hard to come by since banks are so strict. Offer owner financing or selling the property on a rent to own basis. Doing so means you've just expanded the pool of buyers for your property. Sometimes, some of your prospective buyers think they can't qualify for a mortgage but some of them actually will. Of course when you do rent to own, keep in mind your buyer might end up returning the property to you or he/she might not be the good tenant you think he or she is. Be prepared for this possibility. Collect as much non-refundable downpayment or option consideration as you can from your buyer or tenant/buyer to protect yourself from this downside.
5. Use the property to generate a buyers database. This is a radical idea. Instead of crying over spilled milk (or the property NOT selling)...maybe just use the property to attract buyers like bees get attracted to honey and have the bees produce more honey! What do I mean by this?
Market the property using eXtreme Marketing as I prescribed above. Get the names, email addresses and phone numbers of everyone who call you. Check who among these buyers are pre-qualified for a mortgage to buy their homes. Then, you can do one of two things (or even three things):
a. Look for properties for these buyers
b. Sell the information you get about these qualified buyers to other folks who have products they can sell to these qualified buyers, or if you don't want to sell the information, you can explore doing joint ventures with them. For instance, insurance agents will gladly work with you to provide home hazard insurance to a qualified buyer when they buy their home(and in exchange, you can get a referral fee).
c. Sell information to these buyers (this is something I teach my students). The idea here is to sell eBooks, webinars, seminars, videos and other information products to buyers related to buying a home, renovating a house and other topics that could be relevant to them so much so that they're willing to pay you money to get the information. I will talk more about this in my webinar this Thursday at 9 PM (Friday at 9 AM in the Philippines). Register here NOW: https://www2.gotomeeting.com/register/274254043
Related to this idea...
6. Get everyone who look and have looked at your house as "talking and walking billboards" for your property for sale. Ask them to refer you a buyer and if they do, you'll pay them a referral fee - say $500 or even $1,000. If you do eXtreme Marketing, you should be able to get 50 people walking through your property and perhaps 5 of them will refer some buyers to you. You'll never know until you ask.
SO net, eXtreme Marketing combined with being flexible and creative should lead you to selling your house or profitting from it in some way even if it does not sell. Attend my webinar this Thursday at 9 PM (Friday at 9 AM in the Philippines) for more information. Click here: https://www2.gotomeeting.com/register/274254043
dedicated to your success,
Trace
P.S. One time, over 800 people registered for this webinar on how to sell houses fast. If I were you, I'll reserve my seat NOW - and it's free! Click here: https://www2.gotomeeting.com/register/274254043
P.P.S. I have a $79 gift for everyone who attend the webinar. Here (again): https://www2.gotomeeting.com/register/274254043
If you're in this situation...I can completely relate to you. I've been in that situation several times. There are several solutions to a property that is NOT selling and here are some of them (if you have others, email them to me at MoneyYoda@Gmail.com or put it here as a comment. I would like to learn from you too):
1. eXtreme Marketing - this is what I teach my students and franchisees. Simply put, eXtreme Marketing is putting out a compelling marketing message to your target market (or target buyer) exposed several times through multiple marketing media. If your house is NOT seling, what is your marketing message? Is it the boring: "3 bed/2 bath house for sale $90K"? If I am your buyer, why will I call you with your boring message when there are gazillion other houses with the same marketing message? Instead, make it something like this: "Own a 3 bed home for the price of dinner" (or something like that). You're wondering...price of dinner...what could this mean? See, I've aroused curiousity in your mind because of a simple twist and if you're in the market for a 3 bed home, you will likely call ME versus my competition. I will talk more about this in my webinar this Thursday 9 PM (Eastern time in the US which is 9 AM Friday in the Philippines). Register here: https://www2.gotomeeting.com/register/274254043
Lastly, the other aspect of eXtreme Marketing is having multiple media exposed several times. You need to put out 10-20 bandit signs per week with your eXtreme marketing message spread out along busy intersections near the house you're trying to sell. You just can't have one or two signs. You also need to market your property using multiple media - not just signs. You have to put your property online. You need to talk to real estate people about it (real estate people? You know...real estate agents, real estate lawyers, people working in title companies, property managers, insurance agents, etc) and ask them to refer you buyers for your property.
2. Be flexible on your price and or terms - you have to sometimes cut your losses and move on. You can recover your losses with other properties so be flexible on the price or terms or both. For instance, maybe offer to finance the closing costs of the buyer or give the buyer some repair credit at closing such that the downpayment your buyer needs to come up is close to ZERO. In fact, market the property as ZERO DOWN and watch your phone ring off the hook. If they are qualified for a mortgage, show the house and if they like it, sit down with them and brainstorm how they can buy the property with ZERO DOWN. Maybe there is something you can buy from them or trade with them such that the cash value of that trade is their downpayment. Be creative.
3. Stage the property - that is help the buyer imagine what it would be like to live in your house. Make it feel like a home to them. You can put small furnitures, paintings, floor mats and other stuff that evokes a good emotional response from your prospective buyers. Candles by the kitchen counter top or rubber ducks by the bath tub are just some examples that come to mind. Staging the property will result in you separating your property from the competition.
4. Owner financing or rent to own - in today's environment, financing is hard to come by since banks are so strict. Offer owner financing or selling the property on a rent to own basis. Doing so means you've just expanded the pool of buyers for your property. Sometimes, some of your prospective buyers think they can't qualify for a mortgage but some of them actually will. Of course when you do rent to own, keep in mind your buyer might end up returning the property to you or he/she might not be the good tenant you think he or she is. Be prepared for this possibility. Collect as much non-refundable downpayment or option consideration as you can from your buyer or tenant/buyer to protect yourself from this downside.
5. Use the property to generate a buyers database. This is a radical idea. Instead of crying over spilled milk (or the property NOT selling)...maybe just use the property to attract buyers like bees get attracted to honey and have the bees produce more honey! What do I mean by this?
Market the property using eXtreme Marketing as I prescribed above. Get the names, email addresses and phone numbers of everyone who call you. Check who among these buyers are pre-qualified for a mortgage to buy their homes. Then, you can do one of two things (or even three things):
a. Look for properties for these buyers
b. Sell the information you get about these qualified buyers to other folks who have products they can sell to these qualified buyers, or if you don't want to sell the information, you can explore doing joint ventures with them. For instance, insurance agents will gladly work with you to provide home hazard insurance to a qualified buyer when they buy their home(and in exchange, you can get a referral fee).
c. Sell information to these buyers (this is something I teach my students). The idea here is to sell eBooks, webinars, seminars, videos and other information products to buyers related to buying a home, renovating a house and other topics that could be relevant to them so much so that they're willing to pay you money to get the information. I will talk more about this in my webinar this Thursday at 9 PM (Friday at 9 AM in the Philippines). Register here NOW: https://www2.gotomeeting.com/register/274254043
Related to this idea...
6. Get everyone who look and have looked at your house as "talking and walking billboards" for your property for sale. Ask them to refer you a buyer and if they do, you'll pay them a referral fee - say $500 or even $1,000. If you do eXtreme Marketing, you should be able to get 50 people walking through your property and perhaps 5 of them will refer some buyers to you. You'll never know until you ask.
SO net, eXtreme Marketing combined with being flexible and creative should lead you to selling your house or profitting from it in some way even if it does not sell. Attend my webinar this Thursday at 9 PM (Friday at 9 AM in the Philippines) for more information. Click here: https://www2.gotomeeting.com/register/274254043
dedicated to your success,
Trace
P.S. One time, over 800 people registered for this webinar on how to sell houses fast. If I were you, I'll reserve my seat NOW - and it's free! Click here: https://www2.gotomeeting.com/register/274254043
P.P.S. I have a $79 gift for everyone who attend the webinar. Here (again): https://www2.gotomeeting.com/register/274254043
Monday, June 15, 2009
Will Shortsales Work in the Philippines?
I’ve received tremendous response with the webinar I hosted for Bob Massey about shortsales. If you’ve missed it – here’s the replay: http://agentmagnet.blogspot.com. One of the most commonly asked question is: Will shortsales work in the Philippines?
Before answering the question, let me refresh your memory on what a shortsale is. A shortsale is one in which you are buying a property from a seller at a price lower than the loan balance or mortgage on the property. That’s why it’s “short” – because it’s short of the loan balance and there’s a sale – there’s a buyer – YOU and there’s a seller. NOTE: the bank is NOT the seller because at this point, the bank does not own the house yet. However, you need to get the bank’s approval because obviously, the bank will take a loss.
Let me demonstrate how shortsales work by giving you a real example of a deal I closed last March 10, 2009. It’s a duplex in a nice area in Cincinnati called Norwood. The owner and her wife are getting a divorce and he wants to liquidate all his properties quickly. He is 90 days late on the mortgage on the duplex and that’s why the bank agrees on a shortsale. His loan balance is probably around $100,000 – which is close to what the duplex is worth - $120,000. Upon negotiating with the bank, the bank agrees to sell the duplex to me for $52,000. One week later, I found a buyer for $64,900.
My buyer is happy with this deal because he is buying a duplex in a nice area (which by the way, it’s already rented and making about $1,000 a month) for basically half price and I am happy because I made money very, very quickly with no risk on my part. The bank is happy also. Why?
You see banks are in the business of lending money. In the US because of Federal regulations, per every dollar of bad loans a bank has, it cannot lend out $2. That is, the bank has to keep a reserve of $2 per every $1 of bad loans. That means in our example above, the bank cannot lend $200,000 in addition to $100,000 it has tied up in the property as a bad loan. That means, the bank is not making any interest income on $300,000. By doing the shortsale, the bank gets $52,000 cash AND it can now lend $200,000 that it put in reserves. So it’s a win for the bank as well.
It’s also a win for the bank because by generally, the bank actually gets less money by the time it forecloses on the property and sells it. The foreclosure process is expensive and time consuming. The bank has to pay $5,000 in legal fees or more. Then the bank has to wait to get the deed or title before it can sell the house. With all the foreclosures going on, getting a clean title takes 45-60 days in most counties throughout the US. Then, when the bank is ready to list the property, it will take 9-12 months before it gets sold – and by that time, the bank is paying its depositors interest on $300,000 (while not receiving any income), it is paying the cost of heating (otherwise, the pipes will freeze in the winter), cutting the grass and the costly insurance on a vacant house. What if the house gets vandalized?
So, going back to the question: Will shortsales work in the Philippines? The answer is: YES it WILL work. It’s probably more difficult because it’s new and there’s a slight difference on how houses are owned, but it will work. It depends on the bank, the situation it is in and what you can offer them. The banking system in the Philippines is very similar to the US. The ownership though is slightly different. In the US, the loan and the deed are separate – you can have the deed or own the house and the loan is a lien on the title. That is, you cannot sell the house without paying off the loan. In the Philippines, home ownership is like car ownership in the US. The title is being held by the bank until you as the borrower pays off the loan in full.
Because of this, banks in the Philippines have more control. Technically, you are buying the house from the bank itself because they hold the title. Also, generally home buyers in the Philippines put 20-30% down and typical mortgage has a 10-year amortization with an interest rate of 11-12%. Lastly, because of the Philippines’ increasing population, the appreciation of house prices is higher – 7-10% is common and higher than the 4-5% typical in most areas of the US. A typical bank in the Philippines holding a typical mortgage on a house carries less risk than a typical bank in the US. The typical US mortgage before the collapse of the subprime market in the US is amortized over 30 years with a 6% interest rate and 10% downpayment or less is not uncommon. This is why shortsales in the Philippines is likely to be more difficult because banks are more in control and they have less to lose.
Having said this, banks in the Philippines do not have the same sophistication in checking the borrower’s credit. Hence, banks in the Philippines have a higher chance of lending money to the wrong borrowers and foreclosure inevitably happens. Moreover, there are less buyers in the Philippines (less than 30% home ownership while US has 55%). So when there’s foreclosure, the typical Philippine bank is still motivated to sell because there are less buyers. You can use these two factors to convince the bank to do a shortsale specially if you can position yourself as a cash buyer (in the Philippines, this is called “spot cash buyer”). The bank does not have to foreclose and spend money in the foreclosure process. Shortsales will work in the Philippines if you can convince the bank it’s in their best interest to do so.
To find out more about shortsales and other techniques of buying houses, attend my free webinar (online seminar) this Thursday 9 PM Eastern time or Friday 9 AM Philippine time. Click HERE - https://www2.gotomeeting.com/register/757624995 to register.
Dedicated to your success,
Trace
P.S. My webinar has limited slots available so grab your seats while there’s still some left. Here: https://www2.gotomeeting.com/register/757624995
P.P.S. Can you afford to buy a Starbucks coffee everyday? Sacrifice 1-2 Starbucks coffee a week and you can get me as your real estate mentor. Here: http://TrulyRichRealeTV.com
Before answering the question, let me refresh your memory on what a shortsale is. A shortsale is one in which you are buying a property from a seller at a price lower than the loan balance or mortgage on the property. That’s why it’s “short” – because it’s short of the loan balance and there’s a sale – there’s a buyer – YOU and there’s a seller. NOTE: the bank is NOT the seller because at this point, the bank does not own the house yet. However, you need to get the bank’s approval because obviously, the bank will take a loss.
Let me demonstrate how shortsales work by giving you a real example of a deal I closed last March 10, 2009. It’s a duplex in a nice area in Cincinnati called Norwood. The owner and her wife are getting a divorce and he wants to liquidate all his properties quickly. He is 90 days late on the mortgage on the duplex and that’s why the bank agrees on a shortsale. His loan balance is probably around $100,000 – which is close to what the duplex is worth - $120,000. Upon negotiating with the bank, the bank agrees to sell the duplex to me for $52,000. One week later, I found a buyer for $64,900.
My buyer is happy with this deal because he is buying a duplex in a nice area (which by the way, it’s already rented and making about $1,000 a month) for basically half price and I am happy because I made money very, very quickly with no risk on my part. The bank is happy also. Why?
You see banks are in the business of lending money. In the US because of Federal regulations, per every dollar of bad loans a bank has, it cannot lend out $2. That is, the bank has to keep a reserve of $2 per every $1 of bad loans. That means in our example above, the bank cannot lend $200,000 in addition to $100,000 it has tied up in the property as a bad loan. That means, the bank is not making any interest income on $300,000. By doing the shortsale, the bank gets $52,000 cash AND it can now lend $200,000 that it put in reserves. So it’s a win for the bank as well.
It’s also a win for the bank because by generally, the bank actually gets less money by the time it forecloses on the property and sells it. The foreclosure process is expensive and time consuming. The bank has to pay $5,000 in legal fees or more. Then the bank has to wait to get the deed or title before it can sell the house. With all the foreclosures going on, getting a clean title takes 45-60 days in most counties throughout the US. Then, when the bank is ready to list the property, it will take 9-12 months before it gets sold – and by that time, the bank is paying its depositors interest on $300,000 (while not receiving any income), it is paying the cost of heating (otherwise, the pipes will freeze in the winter), cutting the grass and the costly insurance on a vacant house. What if the house gets vandalized?
So, going back to the question: Will shortsales work in the Philippines? The answer is: YES it WILL work. It’s probably more difficult because it’s new and there’s a slight difference on how houses are owned, but it will work. It depends on the bank, the situation it is in and what you can offer them. The banking system in the Philippines is very similar to the US. The ownership though is slightly different. In the US, the loan and the deed are separate – you can have the deed or own the house and the loan is a lien on the title. That is, you cannot sell the house without paying off the loan. In the Philippines, home ownership is like car ownership in the US. The title is being held by the bank until you as the borrower pays off the loan in full.
Because of this, banks in the Philippines have more control. Technically, you are buying the house from the bank itself because they hold the title. Also, generally home buyers in the Philippines put 20-30% down and typical mortgage has a 10-year amortization with an interest rate of 11-12%. Lastly, because of the Philippines’ increasing population, the appreciation of house prices is higher – 7-10% is common and higher than the 4-5% typical in most areas of the US. A typical bank in the Philippines holding a typical mortgage on a house carries less risk than a typical bank in the US. The typical US mortgage before the collapse of the subprime market in the US is amortized over 30 years with a 6% interest rate and 10% downpayment or less is not uncommon. This is why shortsales in the Philippines is likely to be more difficult because banks are more in control and they have less to lose.
Having said this, banks in the Philippines do not have the same sophistication in checking the borrower’s credit. Hence, banks in the Philippines have a higher chance of lending money to the wrong borrowers and foreclosure inevitably happens. Moreover, there are less buyers in the Philippines (less than 30% home ownership while US has 55%). So when there’s foreclosure, the typical Philippine bank is still motivated to sell because there are less buyers. You can use these two factors to convince the bank to do a shortsale specially if you can position yourself as a cash buyer (in the Philippines, this is called “spot cash buyer”). The bank does not have to foreclose and spend money in the foreclosure process. Shortsales will work in the Philippines if you can convince the bank it’s in their best interest to do so.
To find out more about shortsales and other techniques of buying houses, attend my free webinar (online seminar) this Thursday 9 PM Eastern time or Friday 9 AM Philippine time. Click HERE - https://www2.gotomeeting.com/register/757624995 to register.
Dedicated to your success,
Trace
P.S. My webinar has limited slots available so grab your seats while there’s still some left. Here: https://www2.gotomeeting.com/register/757624995
P.P.S. Can you afford to buy a Starbucks coffee everyday? Sacrifice 1-2 Starbucks coffee a week and you can get me as your real estate mentor. Here: http://TrulyRichRealeTV.com
Wednesday, June 10, 2009
Use My Money to Buy Foreclosed Properties
I've heard it time and time again...
"Trace, I have no money...I don't even have a house and I live in an apartment. How can I buy houses?"
And I am tired of that excuse. So I am going to obliterate that excuse forever. What if you can use my money to buy foreclosures? Seriously. This is what I do for my students and I can do the same thing for you. Seriously. But you have to take this real estate business seriously. I don't want to deal with people who just want to "try" real estate investing. As Yoda told Luke in the movie "Star Wars", 'there's no try...just do'. I want people who commit to being rich.
So if you like to use my money to buy foreclosures, here are two things I want you to commit to doing:
1. Learn the basics of buying foreclosures from a shortsale expert - Bob Massey. Attend his webinar (which I will be hosting) tonight, 9 PM Eastern time (for you in the Philippines, that's Thursday 9 AM) that explains the basics. In this webinar, you will learn what shortsales are and why you should buy them. You will also learn why you can NO LONGER assign contracts anymore when buying shortsales. Click below to register if you have not done so already: (by the way, this webinar is FREE!)
https://www2.gotomeeting.com/register/478241491
2. Attend my OWN webinar on Thursday at 9 PM Eastern time - that's Friday at 9 AM Philippine time - that explains how you can use my money to buy foreclosures. Not only that, I will share with you five tips to help you sell these foreclosures really fast so there's no risk. I want you to have ZERO RISKS because you're going to use my money! Click below to register: (also, another FREE webinar)
https://www2.gotomeeting.com/register/513121963
These are back-to-back webinars I want you to commit to attending. Only some of you will register and still only half of those who register will actually show up, attend, listen, ask questions and learn. To YOU who will show up, I will even send you a $79 eBook "How I Raised $1 Million for One Deal" absolutely free as an ethical bribe just for attending these 2 webinars. Seriously.
Why? I am seriously committed to helping you succeed. My billionaire mentor (I will introduce him in my future blog post) said that foreclosures are going to increase even more because the Obama administration will be forced to buy out a lot of banks and will be forced to sell millions of homes in foreclosures in just a 1-year time frame (because it will be election time for Congressmen by 2010). My mentor became a billionaire back in the 80s when the government was forced to do the exact same thing. His actual words were, "I am seeing the same movie and I know its ending. I became a billionaire." The bottomline: RIGHT NOW IS THE TIME TO BUY THESE FORECLOSURES and make MILLIONS from them.
I am giving you, not just the knowledge but also the CASH to buy them so that you have NO excuse for failure. If I were you, I'll attend BOTH webinars. It's time to change your life. It's time to take this seriously.
dedicated to your success,
Trace
P.S. Bob's webinar tonight is almost full and there are only 24 slots left. Register NOW by clicking this: https://www2.gotomeeting.com/register/478241491
P.P.S. If you're still reading this PS, shame on you! These webinars are both free so what have you got to lose for attending? So stop thinking about it and register here for my webinar on Thursday: https://www2.gotomeeting.com/register/513121963
"Trace, I have no money...I don't even have a house and I live in an apartment. How can I buy houses?"
And I am tired of that excuse. So I am going to obliterate that excuse forever. What if you can use my money to buy foreclosures? Seriously. This is what I do for my students and I can do the same thing for you. Seriously. But you have to take this real estate business seriously. I don't want to deal with people who just want to "try" real estate investing. As Yoda told Luke in the movie "Star Wars", 'there's no try...just do'. I want people who commit to being rich.
So if you like to use my money to buy foreclosures, here are two things I want you to commit to doing:
1. Learn the basics of buying foreclosures from a shortsale expert - Bob Massey. Attend his webinar (which I will be hosting) tonight, 9 PM Eastern time (for you in the Philippines, that's Thursday 9 AM) that explains the basics. In this webinar, you will learn what shortsales are and why you should buy them. You will also learn why you can NO LONGER assign contracts anymore when buying shortsales. Click below to register if you have not done so already: (by the way, this webinar is FREE!)
https://www2.gotomeeting.com/register/478241491
2. Attend my OWN webinar on Thursday at 9 PM Eastern time - that's Friday at 9 AM Philippine time - that explains how you can use my money to buy foreclosures. Not only that, I will share with you five tips to help you sell these foreclosures really fast so there's no risk. I want you to have ZERO RISKS because you're going to use my money! Click below to register: (also, another FREE webinar)
https://www2.gotomeeting.com/register/513121963
These are back-to-back webinars I want you to commit to attending. Only some of you will register and still only half of those who register will actually show up, attend, listen, ask questions and learn. To YOU who will show up, I will even send you a $79 eBook "How I Raised $1 Million for One Deal" absolutely free as an ethical bribe just for attending these 2 webinars. Seriously.
Why? I am seriously committed to helping you succeed. My billionaire mentor (I will introduce him in my future blog post) said that foreclosures are going to increase even more because the Obama administration will be forced to buy out a lot of banks and will be forced to sell millions of homes in foreclosures in just a 1-year time frame (because it will be election time for Congressmen by 2010). My mentor became a billionaire back in the 80s when the government was forced to do the exact same thing. His actual words were, "I am seeing the same movie and I know its ending. I became a billionaire." The bottomline: RIGHT NOW IS THE TIME TO BUY THESE FORECLOSURES and make MILLIONS from them.
I am giving you, not just the knowledge but also the CASH to buy them so that you have NO excuse for failure. If I were you, I'll attend BOTH webinars. It's time to change your life. It's time to take this seriously.
dedicated to your success,
Trace
P.S. Bob's webinar tonight is almost full and there are only 24 slots left. Register NOW by clicking this: https://www2.gotomeeting.com/register/478241491
P.P.S. If you're still reading this PS, shame on you! These webinars are both free so what have you got to lose for attending? So stop thinking about it and register here for my webinar on Thursday: https://www2.gotomeeting.com/register/513121963
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