It is so much fun to be around friendly people. One of the best things about investing in real estate is that you get to meet wonderful people and help them out. In a recent webinar I shared some ideas on how to quickly make friends with sellers and get them to say “Yes!” to your creative offer.
I’ll describe a little known secret for making friends quickly which means that you’ll be able to get more sellers to feel good about selling you their house when they accept your creative offer.
One of the concerns that was brought up by many of the beginning investors that I met was this: “I’d really like to make a full time income as a real estate investor but I’m just not comfortable taking advantage of sellers who are in a desperate situation.”
This common misconception is believed to be true by beginning investors and also by much of the general public. How can you make money without “taking” money away from the seller of a home? One simple answer to this question comes to you through the magic of appreciation. Appreciation is where some of the biggest profits are made in real estate. By owning or controlling an asset like a nice home in a nice area, you get the benefit of any increase in value as the market moves up.
By using a lease with an option to gain an ownership interest in a nice piece of real estate, even if your purchase price is at today’s full market value you’ll be making a large chunk of money as real estate increases in value. Once you learn how simple it is to put together lease purchase deals and that sellers will actually thank you for helping them out, you’ll never worry about taking unfair advantage of sellers again. You really can help sellers out and make a bunch of money for your efforts.
For example, if you were to pick up five to ten properties over the next year using purchase option techniques like the lease purchase, you’d be in control of about a million dollars worth of real estate. If you structure your deals correctly, you won’t need much of your money and you can even get your tenant buyers to take care of the maintenance.
Once you control a million dollars of real estate, when the market for nice homes goes up just five percent in the next year – you’ve just made $50,000. If you need more than $50,000 to create a full time income then go out and use purchase option techniques to control five to ten more homes. You have now created a six figure income and also have the freedom to do whatever you want each day.
This is because you are creating passive investments which free you from the responsibilities of traditional real estate investing. Now you can enjoy more time with your family, go for a mountain bike ride, or drift lazily down a river on a raft if you want to.
Here’s how I learned a powerful secret and how you can use this idea too. A few weeks ago Darcy, our operations manager, said “Peter you really should smile more often, you have a beautiful smile and it’s a shame to keep it hidden away.” Oops! I know I should smile more. I thanked Darcy for her comment and then set a goal to beam a huge smile out to ten people before the day was over.
I discovered that people smile back! This was so much fun that I continued through the next weekend when I was out buying properties with several students. We had set up appointments non-stop all weekend long so I had a chance to beam a great big smile at close to a dozen sellers. I found that sellers were quickly warmed up by this newly re-discovered secret. Even the sellers that didn’t end up doing a deal with us were pleased to have met my students and intrigued to learn about the win – win purchase option offer we shared with them.
You can tap into the power of this simple little secret starting right now. Your objective is to get ten people to smile back at you in the next 24 hours. You can’t say anything to them. The only thing you can do is smile at them. You’ll discover as I did that anything you practice will soon become a habit. Practice enough and you’ll soon have sellers smiling back at you as they nod their head saying “yes” to your creative offer.
Little habits like this really do make a difference. Good Luck!