$12k Real Estate Tycoon Beginner
The key from beginner to tycoon is building your network and connections and we're going to build own real estate wealth by acting as an intermediary.
This is actually quite simple that you won't believe!
- To make enough money to quit your job or to never need another job again, and
- To be able to buy you first house, or if you already have a house, to be able to buy another house, then another, then another
I call this the $12k Real Estate Tycoon Beginner because it's not difficult to make $12k a month with this strategy. You can certainly make more once you have the system down and do more deals but for now let's focus on making $12k. Now be careful, in the beginning, you won't be making $12k overnight, you still need to go through this course and learn but once you have gotten use to it, making $12k a month is child's play.
How have I broken the $12k a month down?
Assuming you decide to charge 3% per deal....
- If you sell a deal worth $400,000, you make $12,000
- If you sell a deal worth $200,000, you make $6,000
- If you sell a deal worth $100,000, you make $3,000
So to make $12k a month....
- You need to sell only 1 $400,000 deal, or
- 2 $200,000 deals, or
- 4 $100,000 deals
Selling deals worth $400,000 or less is actually quite easy, even selling under $800,000 is difficult. To sell a deal worth $1M is not as hard as people think and if you are able to sell a $1M deal at 3% then you're in a great spot! But's for another course, we're here to do $400,000 or less deals!
What You Need
- Real estate website
- Social media
I've put real estate website at the top because this is the most important. In the real estate business, investors and property owners only do business with people they feel that has credibility, and this can be as simple as a website. But not just any website. They don't need a website with a million pages and a million blogs. They just want to know if you have a presence and whether you can provide a service they need. I've seen experienced real estate professionals not getting enough business because they didn't have a website. In this day and age, whenever new customers come come across you the first thing they do is Google you. And if you have no website, they don't trust you. Also, I've seen real estate professional with fancy website with a million blogs. Clients are not going to spend the time to read that. People spend an average of 2 seconds before deciding to leave a website, so your website has to be simple and let them know that you have what they need.
Fortunately, for you, you won't need to create a website or guess what content to add, because as part of this course, I have already created one for you with everything you need. This website has been tweaked and tested many times and have proven to generate results from investors and property owners.
This course allows you to have lifetime access to your very own unique real estate website link where investors and property owners can feel confident dealing with you!
I will provide instructions on how to get your lifetime access to your website link below.
I've listed phone and email because you will need to be able to communicate with your clients. I would recommend you use both. I've put social media at the bottom because although you can get away without it, I would still recommend you add social media pages to build up your own reputation.
Investors and Property Owners
The strategy is to build a large network of investors who will buy from you and a large network of properties for sale. You make your money helping both investors and property owners. You are like a "personal shopper" for investors, and investors have a lot of money. If they are able to throw around $100,000's easily, then you will be able to have some of that yourself!
The best types of properties that generate the most return on investment are "below market value" properties or "BMV" for short. If you can find BMV properties then investors are more interested in talking to you and you are better than real estate agents. By selling BMV, you are selling real estate at stock price, whereas real estate agents sell at retail price.
If buyers had a choice, they would rather buy a phone at $550 stock price, rather than at $800 retail price. This is the same with real estate.
If the market value of 4 bedroom house was $500,000 and you was able to secure one for $400,000, an investor can pay the lower price, improve it and sell it quickly for $500,000 to $650,000. That's at least $100,000 or 25% return in investment for the investor, which is why they will be hungry to buy from you!
How can you find BMV real estate and why would owners want to sell at BMV?
Most people think that if a house is worth $500,000 then the owners will always sell at that price.... WRONG!
It's not about the market value, it's always about the motivation of the seller.
We need to seek motivated sellers. These are sellers that want to sell the property quick for whatever reason:
- Made redundant or dismissed from employment
- Moving to another city or country
- Family moved out
- Became ill
- Passing in the family
- Need to buy another property quick
- Can no longer afford to maintain the property
Each of these reasons gives the owner the motivation to sell the property quick and at a lower price because they want to get rid of the stress connected with the property. Your job would be to find properties with motivated sellers and offer then to investors wanting deals.
Finding Motivated Sellers
This is actually very easy.
- The first thing is to speak to as many people as you can! Whether you're at work, on the bus, waiting in a queue etc. Simple right! Most people own property and most people have problems. It's only a matter of time when you've spoken to so many people and told them that you help to sell property that someone will tell you that they have a problem and want to sell their property. Now you have a property to sell! Well done!
- Another way is to look at ads like Craig's list. People that sell property there want to sell it quick and don't want to pay agency fees. The advantage you have over estate agents is that you don't charge the seller, you charge the buyer so the seller can sell free through you, that will motivate them to use you than with anyone else
- Another way is to attend as many networking events as possible. People there are looking to connect and most are property owners and again are also likely to have problems. Spend enough time there and you will come across plenty of motivated sellers!
- My favorite is calling speaking directly with the property owners. When you are walking out in the streets, keep an eye out for "For Sale" signs outside houses, there should be plenty of them. They are obviouusly wanting to sell their property. Go knock on their door and ask to speak to the owner directly and let them know that rather than paying an estate agent to sell their property, they can instead sell free through you.
- Post comments on your Facebook saying that you are looking to speak to people looking to sell their property. If you have a large enough network, you can be suprised at the feedback
- Again, speak to as many people as you can! Whether you're at work, on the bus, waiting in a queue etc. A lot of people are interested in property investment but don't know where to start or finding good properties to invest in. When you tell people that you have access to below market value properties that can generate a high return, most people will be keen to ask you questions. Pretty soon you will have a large network of investors!
- Attend business networking events. People you will meet there tend to be business owners or people in highly paid jobs so they will, of course have money to invest.
- Try to speak to as many highly paid professionals as you can. Do you have a regular doctor, lawyer or accountant that you see? Speak to them. Do you have friends and family who are highly paid? Speak to them. Or do they know any highly paid professionals? Ask them to give their email or phone number and contact them.
- Post a comment on Facebook saying that you have BMV property to sale that generates a high ROI.
- Something that is so simple is to speak to estate agents. Estate agents will always have investors in their database including those that they cannot find properties for because they sell at market value which does not attract the investors' attention. If you have a BMV bedroom house at $400,000, tell the estate agent to refer the right investor to you and offer them 20% - 50% of your fees. If you are able to sell this deal then the estate will refer more investors to you, and so you have made a successful partnership!
Working With Clients
Communication and credibility is key! They both build trust and in the real estate world where people are exchanging $100,000's everyday, they only deal with people they can trust. So when you find your investors and motivated sellers, remember to let them know that you have website they can visit, a phone number and email. Remember, once they meet you, one of the first things they will do is go to your website to see if you have one. Your website is your business card and credibility. Not having these simple things can break your deal. Also, people in the real estate world talk and refer. People you meet might refer other people to you and that other person will also look at your site before doing business with you.
Creating The Deal
Creating the deal is very simple. When dealing with motivated sellers, they are very likely to sell a lot cheaper and so I would ask them to give a discount if you can provide them an investor. I would not accept a discount of less than 10%. 20-25% discount is quite reasonable. If you're lucky and if the seller is motivated enough, you can push for 30-40% discount.
Once you have the deal, simply give the investor the basic information on the property:
- Number of bedrooms
- How many floors
- Does it have a living room, kitchen, garden, garage, attic or basement
- Where is the location
- How far is it to shops, parks, schools, restaurants etc
- Is it in a quiet neighborhood or is there a lot going on
- Do people in the neighborhood buy or rent properties
If you don't know the answer to these, you can ask the owner. Also ask the investor what he wants to know about the property.
Once the investor has all his questions answered, he is likely to buy the property because you have given him a tremendous deal of 20-40% discount on a great property!
It shouldn't be difficult to charge 3% for each deal, so if you sold a property worth $400,000, that's already $12,000 just from one deal. However you might be dealing with cheaper properties or you might want to start off with a lower fee to earn your first few deals. Most fees range from 1-3% so if you want to get your first fee deals then you can begin charging 1%. 1% of $400,000 is still $4,000 which is still a lot of money.
So practice putting deals together. It may seem hard at first because it's new but if you practice, you won't believe how easy it becomes to work your way to a real estate tycoon!
Getting Lifetime Access to Your Website Link
Simply email me at firstname.lastname@example.org with the following details:
- Email subject line "Real Estate Tycoon Beginner Lifetime Access"
- Your full name
- Your email you used to make the purchase
- Your receipt
- Your logo (if you have one) or name of your brand
- Your email and phone number
- Your Facebook and Twitter link
- A description for the "About Us" section
I would suggest that your use a logo to help your brand. You can either create it yourself using logo makers or I suggest you visit Fiverr.com and get one created for you for $5. If you prefer not to use logos, then tell me your brand name and I will add it on the site.
I would suggest you have a Facebook and Twitter to help your brand. This could be your own personal FB profile or business page.
Once you have provided all the information to me, I will provide you lifetime access to your own unique real estate website link that will have your logo/brand name, email, phone number and social media links!
Below is a small sample of what you will be getting!