Never in history has there been a time that a realtor just getting started had access to so many resources to become successful. Yet the statistics of realtors failing their first year are still as high as 50% or higher. In this article I am going to share with you one major cause for failure as a start up realtor and how you can avoid being another statistic.Make decisions quickly and change them slowlyMost of failing start ups happen because we change our direction to frequently. What happens is we are smart and we want to get to a give goal in the shortest amount of time with the least amount of effort. So we look for ways to do that.We start marketing processes to grow our business or to reach a business goal only to find out that something is challenging or maybe a little harder than we thought it was going to be. Then most well meaning inspiring realtors look for an easier or simpler way to get to a that result.Most new realtors do this every time they are met with any kind of resistance to achieving their goal.I know when a realtor moves from marketing process to marketing process never really becoming successful with on or the other they just searching for a way to get the fastest results possible.But that intention still doesn’t make it OK to walk away from a marketing plan we have already started.Now along the path of developing our real estate business something completely unavoidable has to happens. We reach a point of resistance. Now this point of resistance has to happen because certain skills can only be developed by rolling up your sleeves and actually doing a business activity.And if you have never done a business activity before there is going to be a learning curve. And your results will be a reflection of where you are along that learning curve.This moment in your new business career is a pivotal moment. Because this is where we either graduate to the next level of our journey or fail and have to take this very first class over again.Many of use will start to feel discontent with this friction of learning something new and begin looking for a better ways to accomplish our goal outside of the present process.But since we start out by looking for outside solutions to our challenges we never really master any given business building process.So what’s the answer?We need to make decisions quickly and change them slowly. Because there will always seem like there is a better way to get to a result. But if your just starting as a realtor, don’t move to some other business process until you have mastered and fully leveraged the results you can get from the process you are engaged.
Getting into the business of buying and selling real estate properties can be quite lucrative. The commission involved in these deals is pretty high and that is why you will find lot of people getting into this business. However, not everyone becomes successful in this field.No doubt that the excessive appreciation of the property rates in the last few years has proved to be a boon for both the owners of the house as well as the estate agents or firms, but there have been many cases of failures also.You need to understand that this business is a 24/7 business. You can get clients anywhere and anytime, thus you need to make sure that you have got the best inventory with you available all the time.
You need to invest a lot to start this business. Not only this, you need to put in a lot of efforts and time. Some states require you to clear exams. You also need to also obtain license from designated authority before starting your business.You need to market your estate business well. Make sure you adopt the best of the techniques to promote your products. Reading good material on the same subject is highly recommended as it will make you aware of all the aspects related to realty state markets. Since property involves a lot of money, thus you need to manage your finances well. Sometime the buyer instantly pays you cash, whereas sometime he will take a longer period of time to pay you the money. Thus, you should be prepared for all these situations.Litigation is something which plays an important role in any real estate agency. You need to make sure that all the deals that you are indulging in are safe and in accordance to the law. There have been many cases where real estate agents or agencies were imposed heavy fine in spite of no fault of theirs. Thus, there must be proper compliance with the local as well as state authorities.You must also realize the power of internet to make your real estate business even better. You should look for the properties, rates, latest update on internet so as to keep you updated.Lastly, you got to be patient if you want to do well in this business. Sometime it will happen that you will not get clients for months and months, whereas sometimes you will be flooded with clients. Thus, it is important for you to keep your nerves.
Once you have put up your advertising and marketing to attract motivated sellers for your wholesale business, you must know how to take a call and screen potential sellers. You should practice taking in leads at least 2-3 times a day until this becomes natural for you. You will want to make an interview sheet with a check list and space for the answers.**Please Note: Although many courses tell you to take calls live, I use a business service and I never take seller calls live. I have setup a business voice mail where people call in and listen to a message asking them to leave name, addresses, and how fast they want to sell. This helps me screen them better and know what my strategy will be before calling back**The following advice is structured after my take-in sheet that I have use plus my own experience wholesaling real estate in Chicago.Initiating the Conversation: Begin by calling back and stating exactly who you are calling and why. Many times when they see your number and they don’t recognize it, they are apprehensive when they are speaking. Just get to the point and say something funny like, “I’m the guy/girl you’re going to sell your house to”. That helps ease them into wanting to talk.Start Probing: When calling a potential seller for your wholesale deal, you must know if that person is on title or not. Many times the person who called is a family member just looking for information so when you ask who is on title, you will know if he is a decision maker. Then you will want to get the contact information of the person on title as well. Make sure you get email and cell phone numbers.Property Information: Ask if the property is vacant or not, how long they’ve owned it, bed and bath count, and ask if it has any special features. If they wonder why you are asking so many questions, just remind the seller that it is standard procedure.Property Condition: After you get the details about the information, now ask about condition and repairs. Any seller will tell you how decent it is and doesn’t need that much work. Never listen to a seller! The best way to get an idea would be to literally ask, “if you were to sell this home, how much would you put into it, and what would you do?” This will question will help you dig better when looking for info.Is the home listed? Most likely you will know whether it is or isn’t listed before you call back, but if it is, get all your info ready. Learn about how many days it’s been listed, if there have been any offers, do they have a good realtor, and when does the listing expire? Many wholesale properties are not listed and/or have been listed for over 4 months. This is a great way to highlight how you can close fast with cash, at a lower price.Motivation and Price: This part is vital to any wholesale deal. Many motivated sellers are not always selling for the heck of it but because something is pushing them to. Ask their particular reason for selling, how quickly they are looking to sell, what will happen if they don’t, and for how much. Once you know their reasoning behind why they want to sell and they say what will happen if they don’t, you basically can start creating solutions for them regarding the property.Mortgage and Liens: Once you know the price, ask how much their mortgage is and if there are any liens on the property. Motivated sellers will tell you this information upon request, so make sure you ask. If there is on mortgage and no liens, start negotiating! But if your property has liens and a mortgage, you MUST consider these things before making an offer.Talking Numbers: RULE #1 in negotiating, the FIRST person to say a number LOSES! NEVER, never say a price regarding a property unless you know what they’re range is. After all getting all the information and taking good notes, just ask, what it they are asking. No matter what they say, remind them that you are a cash buyer and can close in 30 days and ask for what is their best. Once they tell you what their lowest is, you know what you can work with. Do not counter, say you will look that up and get back to them. If you know it’s a good area and a decent price, set up a time to meet. This part is tricky and will take some practice to know whether or not you can offer over the phone or in person, but for starters just do as I say.Obviously you will add your own parts to it once you get used to this structure but until you know what the heck to say, just follow this and you will be find. Now wasn’t that easy? Just create a take-in sheet using these steps and use it to start talking to people and getting some wholesale real estate deals under your belt.Now GOOD LUCK!More info at www.chicagocashflowproperties.com