How to Successfully Convert FSBO’s to Your Listings

I’ve been in real estate now for over 10 years. I started with no sphere of influence and in a totally new area after moving across the country to relocate. In my first year, I was International Rookie of the Year with over $12Million in Sales. One of my main target markets was For Sale By Owners.

I learned some key pieces to actually getting these prospects to become my clients, here is the plan for conversion:

The first step is to actually have a real Action Plan for converting FSBO’s to your Listings. The Action Plan should span over 90 days for the high intensity contacts, and then convert to a lifetime of “touches” to make sure that they stay your clients and customers for life.

The initial step of the Action Plan is to find prospects: you can use a variety of sources including the newspaper (online and offline), FSBO specific sites and driving around areas. Once you’ve found them, you need to add them to your Action Plan and make that initial call.

The initial call should be something that is comfortable for you. It should not be threatening or question their intelligence. You’re probably laughing at this one, but when I started there was a colleague of mine who was also targeting FSBO’s – he would come to the office early in the morning and start making calls. You have to admire him except that he would always cut off his initial call script within 30 seconds because they hung up on him!

The reason for his massive failure was that he took a course from a highly regarded and successful real estate trainer (albeit one that had never actually sold a house!). This trainer taught him the script that I hear way too often: “Hello, this is Joe Smith – is the owner around? Great, I understand that you are trying to sell your home yourself, is this correct? Wow do you know how many people try that and then end up listing with a realtor within 30 days? Do you realize that people have actually been killed trying to sell their home by themselves?…”

The conversation was one based on fear and insulting their intelligence. What would you do if you received that call at 7:00 AM (or anytime for that matter)? You would become angry and hang up too!!!

The other mistake script is telling them that you have a buyer that you would like to bring by. The only problem with that is that you really don’t have one and then you show up to see the property and use an excuse that your buyer couldn’t make it – only to proceed to try to get them to list their home with you! Warning: they’ve heard it and been there already!

Your initial call should be one of understanding and patience – not fear and insults. Remember, the FSBO has decided to sell their home without an agents help for any number …

Five Important Property Investment Ideas to Follow

Nowadays, planning for property investment continues to be high among individuals. Every investment should be about increasing your capital and secure the future. However, we cannot make sure that all real estate investment will deliver positive results. Thus, here are five important investing ideas that will be essential for every land investor.

Selecting the Right Real Estate Company/Agency/Broker

You may wish to buy an empty land, constructed home or plots for sale. If you are investing through a company, agency or individual broker, then ensure about their trust among people in the society. Further, check for their track-record and previous customer feedback or testimonials. This will be an important factor to end up with a successful property investment.

Know the Fundamentals of Realty Investment

While if you go for a property agent or broker for investment, then initially you should not rely on them. You should first gather information related to the condition of the current real estate market, and then know the fundamentals of investing in properties. As this will help you to avoid any possible risks and make a profitable investment in the city you live.

Types of Real Estate Investments

Since, there are different types of property investments such as, Buy-to-let, Below Market Value (BMV) and Off-plan properties. Thus, the type of stake is also important. So, make sure what kind of investment you are looking for to yield a good profit.

Location of the Property

The location of the property always plays an important role while investing in real estate properties. As you may want to use the property, or sell it to someone in the future. A residential or commercial property that is in a better location will always gain good future appreciation. Thus, a location of the property will be an added advantage and proves to be a wise investment.

Property (ROI) Return on Investment

While investing in a residential property and if planning to let it for rent, it brings you instant profit. In this case, it is vital to make sure that you can get tenants for your residential property and the rental demand in the locality. In addition, buying a rental asset depends on the location, home type and many other important factors. Some real estate companies also help home buyers for rental needs.

Therefore, make sure you stick on with these five important real estate investment ideas and follow it accordingly for a successful property investment.…

Ecuador Laws: 4 Important Details About Rental Properties and Real Estate in Ecuador

Ecuador Real Estate laws should be part of the information that you will research before you move into this country. It is important for you to understand the specific laws that apply to Real Estate in Ecuador and that you will adhere to once you live in a new country. Regardless of where you plan to retire or relocate, you need to be a law-abiding resident to avoid any unfortunate incident with the local government.

Foreigners typically have to understand the rental laws in their host country because most of them like the flexibility that comes with this type of living arrangement. It is important to be aware of this so that you can avoid any untoward incident with your future landlord or landlady or maybe even a purchase of Real Estate in Ecuador. You want to keep yourself from violating any of the local laws and at the same time, you want to know your rights as a tenant and as an owner of Real Estate in Ecuador.

4 clauses in the Ecuador rental law that you should be aware of & how it affects Real Estate in Ecuador

You should be happy to know as a renter that Ecuador Real Estate laws about rental homes are tenant friendly.

To give you a brief understanding of your rental rights in Ecuador, here are the 4 important details that you have to know.

On the lease period.

Most of the rental contracts, according to Ecuador Real Estate laws, are good for one year. However, the tenant has the right to request for a two year contract. During this time, the landlord or landlady is not allowed to raise the rent. So, if you know that you can stay in a home for at least 2 years, then you may want to request for a two year contract from the landlord. If they agree but they still raised the rent on you in your second year, then you can file a complaint with the rental court (Juez de Inquilinato). Should the court rule against the landlord, they will be fined for violating the law of Real Estate in Ecuador.

On contract termination.

In case of an early termination, a notice is expected from the party that initiated the end of the contract for the Real Estate. If initiated by the landlord or landlady, the tenant should be given at least 3 months’ notice so they have ample time to look for another home to move into. If the tenant or renter initiated it, they need to give the landlord at least one month’s notice before the date they will move out. There may be some landlords who will force tenants to pay the remaining months in the contract but the latter is not obligated to comply.

On the rental price.

The Ecuador laws on renting homes and Real Estate in Ecuador, the landlord or landlady is only allowed to charge rent based on the value and current condition of the home. …

Mexico Real Estate – 4 Major Types of Land to Look Out For When Purchasing!

When talking about owning and investing in real estate in Mexico, people always ask me the same question, “Can’t they take away your land, or do you have one of those 99 year things going on?” Well, I can understand the concern and misconception, but basically, neither of those concerns are true.

Fortunately, ownership policy of Mexico real estate has evolved. Mexico now embraces foreign investors and second-home owners who want to acquire Mexican real estate. But those who set out to purchase real estate in Mexico, very quickly are confronted with different types of land to purchase. And many international buyers wish they would have done a bit more research before giving up a deposit.

The four major types of land in Mexico are the Federal Maritime Land Zone, the Restricted Zone, the Unrestricted Zone, and Ejido land.

The Federal Zone is a strip of land that hugs the ocean and the international borders. No one can own this land, not even Mexicans. This includes land along the Pacific Ocean, Sea of Cortez, and Gulf of Mexico, from the mean high tide line to 66 feet up the beach. This 66 feet of coastal land is a buffer from the ocean to the first row of homes or businesses.

Some big hotels, Mexican land owners, large developments, and marinas apply for special permits to rent this land from the government. Some international and Mexican home owners with significant beach front real estate are also now applying for concessions to lease this land from the Mexican Government.

The Restricted Zone is the prime land that most international buyers are after. This is land that is more than 66 feet away from the mean high tide line and up to 32 miles away from the major oceans, and 64 miles from international borders. U.S. citizens, and other non-Mexican nationals, are buying this land using an instrument called a “fideicomiso,” also known as a Mexico bank trust.

This Mexican bank trust is a dream come true for international buyers of Mexican real estate. It gives the non-Mexican national owner of Mexican real estate the power they need to control their land purchase, very similar to the way a USA citizen would enjoy owning real estate in the USA. For example, using a fideicomiso, you would be able to will the land or home to your children, rent it, subdivide it, lease-option it, enjoy it, sell it, improve it, or do anything that can be done with real estate.

This bank trust costs about $2,000 to set up, and about $500 a year to maintain, depending on the size of the land. If you decide to sell your property the bank trust is easily transferable making your property very sellable.

Mexican nationals don’t use fideicomisos to buy land, as the restricted zone is not restricted to them. They buy land using a deed called an “escritura publica.” So when looking to buy Mexican real estate, you will be buying from someone that has …

Agent Marketing Minute: Let a Brag Book Tell Your Story

In today’s competitive real estate marketplace, I still amazed at how few agents know how to communicate their real estate business story to a home buyer and seller. First impressions count, and you need to be prepared verbally and visually to tell your story and why the consumer should use you and not the competition. Soon after I started in the business I developed for lack of a better name, my brag book, that take on all listing appointments and first meetings with buyers.

My books’ contents are always evolving and are constantly updated with current information and examples. The first section has as many active, pending, and closed listings as I can fit in. I include property brochures, postcards and virtual tours on CD-ROMs. Include a variety of price points and locations.

The second section has examples of newspaper advertisements, magazine features, and screen prints from my and my brokers web site to illustrate what types of marketing I do for a specific property.

Third in my brag book are the actual cards, letters, and emails that have testimonials from clients, both buyers and sellers, about their satisfaction with my real estate business.

Lastly, any awards or non-profit work I do in the community, I like to point out that giving back to the community is an important part of my business. After a client goes through my book, they have an comprehensive idea of what benefits I bring to the table. Let your brag book help tell your story to prospective clients.…

Four Strategies to Buy Rentals With No Down Payment

This tend to be a pretty controversial subject, and for good reason. When I was getting started in the business, I was young and broke and had no credit to speak of. I was not qualified to borrow money, yet I figured out how to buy properties, and I bought a lot of them. It was not long before I became a full time real estate investor, and on paper, I was a millionaire long before my 30th birthday. I accomplished this with a lot of hard work, education and tolerance to take the risk.

With all this said, just because you do not need money to buy houses, it does not mean you should have no money. I am a big, big believer in this. You see, although I was a millionaire at a young age, I basically lost it all when the market shifted. I was too aggressive with my growth, and did not establish an appropriate amount of reserves. After starting over, I structured things differently and am in a good position to not only survive a down turn, but to thrive in it. In this article, I will briefly walk through 4 ways to buy rentals with nothing out of pocket, but want you to understand that this does not mean you should own rentals with no reserves.

Owner Finance: This could mean many things, but for the purposes of this article I am going to assume that the seller of the home is extremely motivated and is willing to basically sell the house just to get away from the mortgage payments. This is commonly referred to as a subject-to transaction because you, as the buyer, will take title subject-to any other liens that are in place. What this means is you get ownership of the house, but the seller is still on the hook for the loan. You as the buyer will agree to either pay the loan or make payments on the loan on their behalf. If you do not, the lender can foreclose and wipe you off of title.

The seller is taking a tremendous amount of risk with this type of transaction, so it is difficult to negotiate and they need to be extremely motivated. It works well for you because you do not need down payments or to qualify for a loan. It works for them because they have someone else making the payments on their loan, which relieves them of the payment pressure, and potentially can improve their credit. As you become more experienced, this is a strategy you will want to look into. This allows you to purchase an unlimited number of cash flow properties without ever needing to qualify or sign for a loan.

Lease Options: This is the strategy that really worked for me when I was just getting started. I like it a lot because it is easy to explain to the seller and it is not difficult to get them comfortable with it. They still …

What is a Reversible Mortgage?

A reversible mortgage is a loan taken out using the equity in your residence that you are not required to pay back for as long as you reside in the house. A reverse mortgage is distinctive from contrasting kinds of loans considering that the repayment, comprising accumulated interest, is not needed up to the time the householder passes away or elects to sell the residence. It is primarily available to householders aged 62 and above, to release the value in your home into a tax free proceeds without selling, yielding the title, or paying out monthly mortgage premiums. Because there are no monthly premiums, there is no revenue or credit suitability needed. This can be an excellent source of additional income, as long as you are conscious of its disadvantages and possible risks, and all the corresponding charges. Through a reverse mortgage you will keep the title to your residence and will continue to be accountable for settling the property taxes, insurance protection, and for the overall maintenance of the estate.

Lenders of Reversible mortgages place their efforts on satisfying the elderly demographic, offering reverse mortgages to just those individuals whom are 62 years of age and older. This can be a better choice as long as the attracted individual possesses and lives in their household. Lenders will base the total they will loan to you on the pretense that your residence will go up in worth every year, therefore if your residence increases in value quicker than they are expecting you will not in reality go through your equity as you would imagine. These flexible mortgages also guarantee that a householder will remain in his or her house for as long as they exist and can therefore be an outstanding income answer for retirees with highly precise requirements.

Home Equity Conversion Mortgages make up around 85% of all reverse mortgages purchased within the United States. There are of course fees associated with these mortgages which can be significant however in some cases this upfront expense is put into perspective by the lower interest rate over the course of the agreement, although some retirees select different choices to draw on their residence equity, especially if they do not plan to stay at within the residence for more than 5 years. Additional choices which can liberate home equity but prevent the high upfront expenses of a reverse mortgage include an sale leaseback and intrafamily loans other common options are to sell the property and relocate to a less expensive residence or locality. Resting on on the amount acquired, the equity in your residence may decrease to the point where you will not be capable of purchase a retirement home should that be your long term idea.

Interest rates on reversible mortgages are decided on a case by case premise, considering that the loans are procured by the residence itself, and supported by Housing and Urban Development, the interest rate should invariably be lesser than any additional available interest rate in the …

Wholesale House Flipping 65% Rule (The Big Myth)

This is my very first article. I am just now catching up to the internet world. I played professional golf most of my life, but have been an active real estate investor and wholesaler for around 22 years.

I have contracted over 200 homes in that period of time. Most of those homes I have flipped to other investors / rehabbers and made a very quick and fairly easy profit. I have also kept many homes to rehab and retail out and many of them I kept for rental property, to build long term wealth.

I have used several different exit strategies when I buy homes. Owner financing , lease options and rental property. This is the beauty of being a professional real estate wholesaler. It gives me many options on property that I have bought at big discounts. If I keep the property for rental, then I have a great piece of real estate that has huge equity and certainly is not as effected by downturns in the real estate market.

I rarely deal with foreclosure property. In most cases there is very little equity to work with. I don’t look for a paltry amount of cash flow from a home. Rental management is too much work. Too many people and legal problems to deal with. Now, if I have a house with 25 to 50 percent equity, I certainly don’t mind the hassle as much and I am not effected by the market. Besides, I can flip a contract on a house and make a profit greater than possibly 20 rental houses will make me. I might flip five houses in one month. That is a much better scenario than leaking faucets, broken hot water heaters, leaking roofs, etc.

I have spent over one and a half years working on my educational information that is available on the web.

I live in Dallas, Texas and do strong advertising for motivated sellers in our metroplex are of Dallas/Ft.Worth. I get calls everyday from many people that have nothing to do with selling their home. The calls are from people that have taken expensive Wholesaling courses from big gurus in the business. People with some knowledge, but no mentoring. People who have spent a fortune to learn my business. Most all of these people are still in the fog. They have no clue which way to go. They seem to know the basic structure of wholesaling, but just can’t put it all together. No experience or training in applying exit strategies They have been given plagiarized facts about the wholesaling business and no support. No mentoring. If they do get offered some type of mentoring, it will cost them a bunch more money. It seems like they get piecemealed to death.

All seem to have this mindset that a wholesale price for real estate is 65 percent of the retail value (After repair value) , minus repairs and minus their determined assignment fee. Then they are supposed to find an …

Some Advantages and Disadvantages of Buying an Older Home

A lot of people think that buying a new home has a lot of great advantages over buying an older home. These days, as the difference in cost between new and old homes become narrower, the question becomes more pertinent. What kind of advantages and disadvantages do you look at when thinking about buying an older home?

Let’s say for example that you’re looking at Mooresville homes for sale and are trying to decide whether or not to buy this gorgeous albeit old Mooresville real estate property. To help you decide, here are a few positive points with buying an older house:

1. Old style constructions – One of the beautiful things about old homes is the amount of meticulous labor that went into it. You’ll find a lot of old homes that still stand and are still beautiful precisely because of the craftsmanship that went into it. Old-style appeal, when further enhanced by regular maintenance, can really give a house a certain charm that’s noticeable. Dated architecture in popular styles of the period also has a lot more character. There’s really something special about owning a classically beautiful house.

2. Living near long-term neighbors – Old houses oftentimes come with long-term neighbors who grew up in the community. It makes for a good, family-oriented and oftentimes safer environment.

3. Some measure of security in terms of changes in the neighborhood – If you buy a house in an old neighborhood, zoning changes aren’t likely to change much over the years. This means that if you’re living in a largely residential and old neighborhood, it’s unlikely that too many commercial establishments will get included in the mix. Mostly because they don’t fare too well in old neighborhoods.

4. Spacious yards – Most old-style homes have houses that are built on large yards. This is because land was cheaper years ago. Having this much room can mean a great deal for you. It could mean additional space for the kids and the pets to romp about, or an additional garage or house extension, a gazebo or maybe even an additional building for a separate office or library.

If there are positive points, there are also some drawbacks to buying an old house.

1. Ongoing maintenance. – As with any kind of house, old houses require maintenance. Since they’re old and a lot of the systems and materials used may not be readily available anymore, maintenance can be more expensive than usual.

2. Repairing systems may be more expensive. – If there’s something that needs to be replaced in the wirings, plumbings, and the likes, it may be more expensive because the system is different from newer ones.

3. Smaller closets. – Old-style houses tend to have smaller closet spaces to accommodate bigger rooms and garages.

4. Often more expensive than new homes – Older homes are often situated near schools, mass transportations, and other important establishments. As such, they can be more expensive than new homes.…

Buying Parking Lots and Parking Garages: Finding the Most Profitable Locations

There are plenty of successful investors out there, but many work so hard that it’s hardly worth the money-because they’re never freed up to enjoy the fruits of their labor! It’s far more worth it to find an investment strategy that would allow you to make considerably more money and create more time to be able to reinvest, spend that money, travel, enjoy time with family, or have fun with that “Bucket List”.

Owning a parking lot or parking garage is a great investment because they can offer you two things: free time and exponential amounts of income. Finding these gems is the hard part because most existing “cash cow” lots are sold before they are even listed. And most are purchased by other parking lot owners-they know what they have, and they want more. If you can find these potential parking lots and garages before anyone else, you can find these extremely rewarding profits too.

Think ahead

Most parking lot locations were never designed to be just that. Parking lots are built out of necessity, plain and simple. Someone would never build a parking lot and then proceed to build something that draws people who need to park; never! It sounds simple, but you need to be ahead of the building curve and search for land before it holds great value. You can do this by recalling where you would need to park a car. Think for a second: Where do people really need to park? Let’s brainstorm: shopping malls, schools, sporting events, entertainment districts, government centers…the list goes on.

Now let’s look at these ideas: malls will provide parking for customers because they want shoppers (so scratch that); schools do the same, but there always seems to be no parking at some schools (possibility here). Every time I see a concert, I end up paying to park; keeper. Last time I got a traffic ticket, it took me 30 minutes to find a parking place at the courthouse to fight that traffic ticket. Ding, ding, ding-got a good one here. Where have you needed to park? Where have you paid to park? I used the same thought process and search techniques you just practiced to purchase a one acre plot of seemingly worthless land across from a new 380 million dollar courthouse that was yet to be built. The property owner had the land for 30+ years and did nothing with it, including not reading any local newspaper that clearly highlighted the new courthouse: funding was approved, a date for the ground breaking ceremony had been set, and the severe lack of parking was already projected in the overly-crowded area!

Harness the power of Google

Seems so simple, right? After all, who has not Googled something? Google, the most popular search engine in the world, is a robust mechanism for quickly finding what you need on the web. Unfortunately, a standard Google search of “parking lot for sale” will currently return around 14.6 million results that are all …