The Hidden Potential Working with Investors Wendy Patton
Wendy Patton Novi, Michigan Regional Instructor 2
Tell Keller Williams University what you think! Simply enter www.evalfr.com into any mobile device to complete your evaluation for this session. 3
The Blue Book 4
Build Investor Clients for Life Why Real Estate Investing? Who Is a Real Estate Investor? How Do You Find Investor Clients? How Do You Keep Them? Making Offers for Investors Consulting vs. Selling Ideas into Action 5
Seven Top Reasons to Invest 1. A solid investment and tangible asset 2. Best way to leverage finances 3. Timing of the market 4. Pay down and pay off for wealth 5. Tax benefits 6. Cash flow 7. Creativity 6
Additional Reasons to Invest MREI Accessible Anyone can buy Improvable Sweat equity Livable Shelter in more ways than one 7
Why You Too Should Invest Because it builds WEALTH! You learn by doing, expanding your knowledge. You increase your value to clients. You are investing in your profession. 8
Financial Wealth Is... the unearned income to finance your life mission without having to work. 9
Who Are Real Estate Investors Now? 59% younger than age 45 36% household income $75K-$100K 47% household income > $100K 59% 2+ household income earners 62% buy detached SFHs Can be great repeat clients 10
Why Real Estate Investing? Why are you NOT investing in your own profession? Why is investing NOT a part of your budget? What is holding you back? Time? Money? Knowledge? FEAR? 11
Who Is a Real Estate Investor? A person who buys real estate for an investment. It is not their personal residence. They make calculated decisions, not risks. They are sometimes unusual. 12
But... They can also be a great repeat customer/client. 13
Real Estate Investors Might Think they know more than you Have bad credit Have good credit Have no credit Not want to use their credit Have cash 14
Real Estate Investors Might Have no cash Not want to use their cash Lowball Want terms Want REOs Want fixer-uppers 15
They Can Be Unusual Enough said 16
The Seven Ways Millionaire Real Estate Investors Think 1. Powered by a Big Why 2. Big Goals, Big Models, and Big Habits 3. Money Matters 4. Net Worth 5. Real Estate 6. Value, Opportunity, and Deals 7. Action 17
The Power of Proven Models Over Trial and Error Your Highest Level of Achievement Where You Begin with Action Based on Proven Models 18 Your Natural Ceiling of Achievement Where You Begin with Action Based on Personal Experience Trial & Error
Think Value, Opportunity, and Deals Know Value Find Opportunity Make Deals 19
A LEAD? 20
The Law of Numbers 30 Consider 10 Look At 3 Offers 21 1 Buy
How Millionaire Real Estate Investors Find Opportunity Networking 32% Real Estate Agents / MLS 28% Driving / Walking Newspaper and Ads Foreclosure Listings 10% 9% 7% For Sale By Owners Internet / Database Research Targeted Marketing 2% 4% 3% 22 Other 5%
How Do You Find Investor Clients? Real Estate Meetings and Conferences Real Estate Attorneys Real Estate Investor Websites Mortgage Lenders Newspaper and Internet Auctions 23
How Do You Keep Them? Find Out How to Help Them Act Quickly Opportunity Deal Educate Yourself Network with Other Agents Build a Network Provide the Best Service Know How to Work With Them 24
Educate Yourself Join Local Groups Learn the Terminology Take Classes Read Invest in Yourself and FOR Yourself Network 25
Your Network Your Net Worth Small Sm all Ne tw ork Network Small Sm all Ne tw ork Net Worth Big Sm all Ne tw ork Network Big Sm all Net Worth 26
The Millionaire Real Estate Investor s Work Network Consultants Partners Mentors Consultants Partners Mentors MILLIONAIRE REAL ESTATE INVESTOR INNER CIRCLE INNER CIRCLE 27
The Millionaire Real Estate Investor s Work Network Consultants Lenders Partners Real Estate Agents Mentors Investors Attorneys MILLIONAIRE REAL ESTATE INVESTOR Accountants Property Managers INNER CIRCLE Contractors SUPPORT CIRCLE 28
The Millionaire Real Estate Investor s Work Network Landscapers Title Companies Appraisers Inspectors Leasing Agents Developers Builders Financial Planners Insurance Agents Concrete Companies Roofers Plumbers MILLIONAIRE REAL ESTATE INVESTOR Appliance Rentals Cleaning Services Lawn Service Flooring & Carpet Carpenter Electrician 29 Masons Courthouse Clerks SERVICE CIRCLE Painter Maintenance Technician
The Millionaire Real Estate Investor s Work Network 30 Landscapers Developers Financial Planners Insurance Agents Concrete Companies Roofers Attorneys Plumbers Property Managers Masons Title Companies Lenders Consultants Courthouse Clerks Appraisers Real Estate Agents Partners MILLIONAIRE REAL ESTATE INVESTOR INNER CIRCLE SUPPORT CIRCLE SERVICE CIRCLE Inspectors Mentors Investors Leasing Agents Accountants Contractors Painter Maintenance Technician Builders Electrician Appliance Rentals Cleaning Services Flooring & Carpet Carpenter Lawn Service
A Thought... What if YOU provided these contacts? Or just some of them? 31
Suspects vs. Prospects Suspects? Prospects? 32
Making Offers for Investors Two Kinds of Criteria What they will consider What they will buy Negotiate Everything Current Financing Available Short Sales/Foreclosures Lease Options Rent to Own Seller Financing 33
Consulting vs. Selling Selling is Consulting is The Value of Consulting 34
The Best Ways to Help MREIs 1. Know Suspects vs. Prospects 2. Have Patience 3. Provide the Best Service 4. Know Landlord Tenant Laws 5. Write up Multiple Offers Quickly 6. Understand Tax Implications 35
The Best Ways to Help MREIs 7. Learn Different Techniques and 1031 Exchanges 8. Potential Partnership 9. Know Depreciation Rates and Schedules 10.Know the Area and Comps 11.Keep on the MLS and Set Up Searches 12.Do Not Take Anything Personal 36
Ideas into Action 1. Learn About and Become an Investor 2. Read The Millionaire Real Estate Investor The Blue Book 3. Attend: MREI Reception 4. Join Your Local REIA 5. Build Your Network ASAP! 37
A few good real estate investors can be your income stream for life. -Wendy Patton 38
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