Formula for Becoming a Real Estate Millionaire

I've been asked by a reporter at the Philippine Inquirer as to what the formula is for becoming a real estate millionaire. My answer is as follows:


1. Understand your market
2. Line up your buyers; and
3. Find the properties

Understand Your Market
You have to understand what's going on in your real estate market. Is it a rental or re-sale market? What phase is your market in? There are 4 market phases - Buyer's Market Phase 1, Buyer's Market Phase 2, Seller's Market Phase 1 and Seller's Market Phase 2. Some strategies that work in one market phase does not necessarily work in another phase. For example, selling properties at top retail price works well in a Seller's Market Phase 2 but NOT in a Buyer's Market Phase 1.

Another thing to think about when talking about real estate markets is you need to know what's HOT. What property types are selling? IS it condo's, house and lot (or single detached home), or townhouses? What price range is selling? What is the median price of homes? What is the average days on the market? Within your market, which locations are HOT? You have to understand your market down to the local neighborhood level. For instance, do you know the neighborhoods to avoid?

Once you understand your market, you will know what property types, and price range to focus on. You will know which neighborhoods to put out your marketing in for optimum results.

Line Up Your Buyers
Even before you get a property, you can line up buyers. How? There are three ways. The first one is simple WOMM or Word of Mouth Marketing. Just tell everyone you know that you buy and sell houses. Tell your friends, family and colleague that you're in the real estate game and if they refer you buyers you will pay them a referral fee (if and when their buyer-referrals close on the deal). The second thing you can do is put out generic advertisements. For example you can put out something like this:

"Foreclosed houses in Marikina for sale. Spot cash buyers ONLY. Call or text 0917-123-4567"

The third thing you can do is Affiliate Real Estate Marketing which is working with other investors. You can help them market their properties for sale and in the course of doing so, you're building your buyer's database. Of course you have to do this in the right way or else you will be accused of brokering real estate without being a licensed real estate agents. This is illegal in the U.S. and with the RESA law in the Philippines this has become illegal as well.

Find the Properties
The third and last step in becoming a real estate millionaire is learning how to find the right properties that fit your buyers' needs. You can find properties many different ways. One is through affiliate real estate marketing as discussed previously. Another is through seeking or "pursuing" the properties. For example, you can browse online classified ads. You can talk to banks to get their list of non performing assets.

Another way of finding the properties that fit your buyers' needs is by putting out enough marketing out there so deals come to you. How do you this? One way is by putting out bandit signs that say "I buy houses CASH" or putting out business cards. One of my students has an oversized business card that say "I buy houses CASH". She put this as a tag in her bag. While being in the plane, her seatmate noticed it. It just so happened that the guy seating beside her owns several properties that he was selling. The properties came to her as a result of a simple marketing technique.

So there you have it: you have now read the formula that my millionaire students use. Master the steps and you'll be on your way to success. I will be discussing these steps in greater detail in my upcoming seminar "Think Rich Quick." Clic'k HERE for more details.

dedicated to your success,
Trace
P.S. Here are two other reasons why you should attend my upcoming "TRQ Seminar":