It’s one I’ve heard a lot before, so I’d say the answer’s worth a dedicated post.

Mark asks…

“…you’ve said on one of the audios that you are licensed in real estate.  Do you disclose to sellers/buyers that you are a licensed agent when you are doing deals, making offers, selling, etc. Thanks and keep the instructional videos coming!”  -mark

Well OK, fair enough question.  So here’s the deal…

Many investors who are also licensed agents tend to be concerned about disclosing the fact that they’re licensed.They’re afraid that the other guy (or gal…don’t mean to be sexist here) might suddenly feel defensive or “on guard” against you now that he/she knows your a……trained real estate professional! (enter music from Psycho shower scene.)

Let’s start with what’s required…

The fact is, here in Tennessee agents are legally required to disclose they are licensed for any real estate transaction in which they play any part, whether officially wearing their “agent” hat or not.

So even if I’m a rehabber or a wholesaler or whatever…if I’m a principal in the transaction (buyer or seller) I’m still legally duty-bound to disclose my licensed status.

The reason being, it’s assumed you have “superior knowledge” you can wield like a loaded weapon against some Average Joe who innocently mistakes you for just another Shmoe like him.

The law dogs says it’s only fair that as early as practical you make him clearly aware of your superior knowledge, market prowess, powerful telekinetic abilities and cat-like reflexes.

Now admittedly it’s been a while since I first got my license, but I believe the board of Realtor’s code of ethics makes it even more specific, saying we should immediately notify any seller or buyer during “first contact” that we are licensed agents, and that “resistance is futile”.

They even provide us with a handy dandy form to do it all in writing.  Yay!

So how do I manage all this disclosure as an investor/agent without scaring folks off or putting them on the defensive?

Well, the answer’s pretty simple.  I just tell ‘em.  Just tell ‘em, don’t make a big deal of it, and don’t worry about it.

The fact is, contrary to popular belief most folks just don’t care in the least if you’re licensed or not.  And some folks actually seem to feel even better about it.

As in…

“Hey, you’ve got some fancy  Realtor trainin’, so you must be awesomer than those other shady investors out there!”

Here’s what I say…

…And usually in my very first conversation with a prospective client (i.e. motivated seller whose house I’m scoping out)…

“By the way, I want to let you know that I am a licensed Realtor.  So you know I’ve got a little formal training.

But also just to make sure we’re on the same page here I”m not here to try and list your house or anything like that… (smiling a little at this point) …I’m not here as your agent or anyone else’s other than my own.  I’m here looking as a possible BUYER.  Make sense?”

I usually say the whole thing with a little smile on my face, and I’ve never had anyone so much as raise an eyebrow.  They usually just smile back and say,

“Oh yeah - sure, I know that.”

I also make sure the same kind of thing is clearly stated in any paperwork we put together.  Sometimes I write it on the contract and have them initial it, and sometimes it’s included in my “Best Darn Sellers Disclosure CYA” document I use, which is based off an old form Joe Kaiser put out years ago.

The bottom line is…

…the rules for this may vary a little in different states.  But probably not much.

Just play it safe and disclose it, verbally in your first conversation, and again in writing as a part of your paperwork.

Don’t make it a big deal, and it won’t be.  It shouldn’t be.  It’s nothing to be embarrassed by, and like I said, can even give them a little warm and fuzzy knowing you’ve got some kind of “real training” under your belt and didn’t just learn all this from that crazy late night infomercial guy.

(To any/all minions, groupies and cronies of the great and mighty Carlton, no disrespect intended.  Please don’t hurt me.)

Hope that helps!  What are your thoughts?  Please share them in the comments below.  I’d love to hear ‘em.

How to Find Motivated Home Buyers in Today’s Market
Video: Advice to Investors Who Need Help Selling Houses Fast…

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Investor/Agent Hybrids…Should You Disclose?

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If you participated in these workshops with me, then you’ll probably remember my candid conversation with subject-to guy William Tingle.

This segment is a real eye opener with him in which he answers off the cuff…

• In a snapshot of your business right now, specifically what marketing are you doing, who are you targeting, what’s working, and why?
• How much are you spending each month for marketing? And how much per deal?
• How would you contrast that to what you did in your first year as an investor?
• How realistic might a similar approach be for a newer investor?
• For a newbie, what are your top ideas for most effective marketing to focus on with a shoestring budget?

Honestly I forgot I even asked him these questions, until I re-listened to the whole workshop myself recently.

And getting a glimpse inside what this guy’s really doing to make it happen is darn near priceless. It’s not mythical, magical or miraculous.  It just works.  Well.

Technorati: Real Estate Marketing System, William Tingle, real estate investing tips

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Revealing Look Inside an Expert’s Real Estate Marketing System

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What if you took a very successful real estate wholesaler (let’s say, someone earning 6 figures a month or better) you plucked him out of his “home turf”, took away all his backing, cash, contacts, etc…

…then plopped him right down in the middle of anywhere’s-ville (any place he knows little-to-nothing about) with nothing more than his accumulated knowledge and wisdom to start with.

What would this guy — let’s call him “Bob” — EXACTLY what would “Bob” do in order to make it all back again as fast as humanly possible, and once again become a dominant wholesaling force in the local real estate landscape?

That’s exactly what was asked of my friend Bob (yes, his real name) in a private conversation — one of the closed-door Saturday Workshop bonus sessions.

Bob has, in fact, been crankin’ 6-figures-a-month as as a “full service wholesaler” in one of the nation’s worst real estate markets (Detroit) for a while now.  And frankly, I think he’s got one of the most fascinating and successful business models I’ve ever seen.

He’s also got this uncanny ability to predict local and national trends that’ll be effecting the real estate investing game…and then adjusting himself strategically in advance to be able to take advantage of them.

For example, he’s just recently started capitalizing BIG on a niche’ “FHA Flipping” model.  And he’s KILLING IT!

Hang a burlap robe on him, and I’d call him a prophet.

Anyways, let me tell you, Bob’s answer to the above question about starting all over again in a new market is PURE, POLISHED GOLD!

Some of what we talked about:

• Exactly how he’d quickly locate the “major players” in the area
• How he’d approach them - what he’d say,
• Shortcuts that’ll help you get a read on the local market fast - rents, values, good areas, bad areas, farm areas, etc. - and find your “sweet spot” to focus on.
• Why being the “real estate cupid” in your area is so important (and how to do it)
• Which comes first - wholesale deals or a wholesale buyers list?
• A whole bunch more.

I suggest you make time to listen to it (around 20-ish minutes) and take notes…

Any comments on this audio tip?  Please share your thoughts in the blog comments below.

And if you want to hear more from this interview (or any of the Saturday Workshop sessions) you can get details on that right here (for a limited time…and opens in new window)

Enjoy,

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How a 6-Figure-A-Month Wholesaler Would Start All Over Again

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He of course obliged.

So I started by asking him to do was to cover a couple of ways you can LEGALLY compensate real estate bird dogs.

(Side Note: You DO realize that what most real estate courses teach about compensating bird dogs is illegal in most states, don’t you? Hint: Most of the time, you CANNOT just pay a “finder’s fee” for deals they refer and you close on.  Realize it or not, it’s flat out against most state real estate codes — unless your bird dog is licensed.)

Having said that, Andy outlined two specific strategies you can use right off the bat to LEGALLY compensate your deal finders.

1. The option method
2. Pay-per-lead

Then I took our conversation and made a nifty little video out of it….

REI Tip: How to Compensate Birddogs | Virtual Bird Dog Blueprint
from REI Tips on Vimeo.

Oh, and about half way through the video I decided to offer my own personal option agreement for download at no charge - just as a related freebie to be helpful.

I’m still going to do that, but I’ve actually decided it deserves it’s own full-fledged post, and I want to make a quick video walking through how to fill it out.  I’ll have that done in a few days, so watch for it.

In fact, I may just start giving away free real estate forms from time to time if you guys are interested.  I don’t believe my paperwork’s “magical” but it works fine for me, and I’d gladly share what I can.

Let me know (in the comments) if you’d be interested in this or not.

Thanks, and hope you enjoy the tip from Andy.

PS…If the concept appeals to you, you can find out more about the Virtual Bird Dog Blueprint here.

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How to Pay Bird Dogs Without Committing a Crime

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Can you see the sarcasm dripping?

I mean, bandit signs DO WORK.  They produce leads, to be sure.

And maybe it’s kinda fun the first few times you go put them out (mainly because it’s a new experience, and there’s a certain rush to be had with dodging the sign police or the occasional sign hater).

But overall, while I do like think my house-shaped signs are pretty cool (see top-left), I’d say the experience of hanging signs is NOT on my top ten list of favorite real estate related activities.

But check this out…

Not too long ago my buddy Shaun introduced me to something pretty darn cool, that I’d honestly never seen before…

The “Bandit Sign Staplenator”

Ok, that’s just what I like to call it.

Anyways we made a quickie video together at his office to show you what it looks like and how it works.

And folks, let me just say, you’ll thank me for this if you do bandits in your real estate business.

So here it is in action…

P.S. This video was clipped from a larger video I put out a while ago.  So if it looks strangely familiar, that would be why. 

P.P.S. You can get a staplenator for yourself at BanditSignStapler.com.

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Bandit Sign Stapler Makes Hanging Signs a Snap

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Now if you’re also a subscriber to Andy’s Teamwork Lead System newsletter, then you may have already read it.  (If you’re not, then you should be.  Andy’s a class act, with an innovative, proven model worth emulating.  Seriously, check it out.)

And thanks, Andy, for the tip…

List that wholesale?…

I wanted to share a quick wholesale tip that I picked up a couple weeks ago at the Virtual Investing Seminar.

Someone - and I can’t remember who, so I apologize! - mentioned that he always markets his wholesale deals via flat fee MLS listings.

The key, he said, is to include in your purchase contract:

“Seller gives Buyer (you) the right to relist the property with an agent of Buyer’s choice”.

He said this particular clause has NEVER prevented a seller from signing the contract with him.

Then in your MLS listing, be sure to mention that it’s “subject to prior sale.”

Good stuff, huh?

Just another avenue for getting your deals sold, in addition to…

• Offline Strategies (direct mail, bandit signs)
• Online Classifieds (Craigslist, Backpage, Kijiji, Oodle)
• Online Groups & Forums (RealEstateInvestor.com, etc)
• Specialty Sites (like this one, this one, and another one)
• Online Video & Other Web 2.0 Strategies
• Your Buyers List

Speaking of your buyers list…

…You’re going to have a lot better shot of them buying from you if you’re giving them valuable  content on a regular basis.  As with any relationship, consistent communication is key.

I’ve seen a lot of wholesalers ONLY contact their buyers list when they’re in desperate need of a buyer.  This makes you look like that relative who only calls you when he needs money.  Don’t be that guy.

I’m not going to say much more about this… just get on Darren Dicke’s buyers list at www.TheColumbusWholesaler.com and watch how he does it.  And buy properties from him.

I’m off to Kalaupapa, Molokai with my wife for the weekend to help rebuild a church.  Over 8,000 leprosy sufferers were exiled to this remote peninsula from 1866 to 1969.  It’s kind of a dark spot in Hawaiian history & a very special place today.

I’ve learned that it’s usually a lot harder (and more meaningful) to give of your TIME than your money.

Have a great weekend & give your time to someone or something
special.

Aloha,

Andy Proper

Good one, Andy - thanks again, man!

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Fully expecting to be bored to tears, I was pleasantly surprised to find that eavesdropping on the commission contending with a month’s worth of real estate business is actually pretty darn fascinating.

So at the very end of the second day, I actually had the chance to address the commission personally.  I used the opportunity to pose a controversial issue that’s been burning a hole in my brain for years now:

“Can I legally pay a ‘finder’s fee’ to an unlicensed person for referring a real estate deal?  What about an ‘assignment fee’?  And what about two contracts with a double closing?”

Ok yeah, technically that’s three questions.

But the answer(s) I received might just surprise you.  It certainly reminded of an important lesson every real estate investor should learn.

So here’s a short video I made for you (from downtown Nashville) outlining what happened and the very important takeaway lesson…

Have any thoughts on this?  Please share them below…

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When Real Estate Investing Courses Are Wrong (Video)

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And when it comes to makers of technology I adore, it’s hard to beat Google.  In fact, I don’t think you can.

To me Google is akin to a close friend and colleague to whom I can go with almost any question or concern that ails me, and nearly instantly get some kind of answer to make me feel all warm and fuzzy inside.

In fact, my first encounter with Google each day is like taking that first, big gulp of ice cold Coke from a glass bottle you’ve had chilling in the freezer for the last half hour or so.

Gulp…Ahhhhhhhhh……

Ok, I can tell I’m scaring some of you.  So let me tame the Google-love a bit and just share with you my recent discovery of a new-ish feature to Google Maps that could be of great value to you as you do your due diligence on real estate deals you’re considering.

It’s called Google Street View and it’s so cool I think I’ve just crossed the line from fan to fanatic.

Google Maps Meets Google Earth

If you’ve been using Google maps over the last few years, then you already know it’s been in ongoing development.

At first is was basically another version of Mapquest.  Then they added satellite pictures, terrain, traffic stats, and a flurry of other niceties.

Then came Google earth, and you could not only view your own front yard in disturbingly good detail, but also “grab” a hold of the globe and give  it a good, god-like spin or two just for kicks.

Well in the last few months Google’s been bringing it even closer to home by strapping a 360 degree camera to the tops of cars and having them drive up and down the streets of major metropolitan areas, gobbling up images and matching them with GPS coordinates along the way.

These little cars are doing exactly what Google does so well: Gathering mass amounts of detailed data (360 street view images in this case) and making them available to the masses by way of a simple keyword search.

What Value is Google Street View to Real Estate Investors?

Well it may be obvious to some — especially you virtual wholesalers out there.  But if not, let me spell it out for you…

If someone calls you with a possible deals, Google Street View can allow you to view the house — or even the entire neighborhood — without setting foot outside.

And in this way, it can be an extremely helpful productivity / efficiency tool.

Google Street View isn’t available everywhere yet — like I said, it’s in the process of being tested in a variety of major metropolitan areas.

But to find out if you’re one of the lucky ones yet, just search for a house on a somewhat major street in your area, and see what your options are.  Look for the little “Street View” option among your other choices after you search for an address.

How to See Google Street View in Action Right Now

If you want to play around with it yourself right now, click here and you’ll find yourself sitting smack in the middle of Bay Bridge in San Francisco.  Enjoy.

And here’s a really great (and short) video Google himself made (yeah, that’s right.  I think Google’s a boy).  It’ll really give you a solid idea of the power behind this nifty little innovation…

(A hat tip to the Geek Estate blog for first turning me on to the above video.)

And now that the “OFFICIAL” version from Google is out of the way, here’s another short video I found, revealing…eh… let’s just say it’s a little creepier side of Google Street View you might want to be aware of…

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Google Street View, a Powerful Tool for Real Estate Investors

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Many investors (present company included) prefer to attract deals — to use a variety of marketing techniques to get your “we buy houses” message in front of the right set of motivated eyeballs.

Admittedly some marketing works very well, and some not so well. There’s something to be said for really understanding your audience before you go out and spend marketing dollars on them…

So the last week has presented me with a couple of really interesting and innovative real estate marketing tactics definitely worth sharing — and both involving the use of the postcard.

Killer Idea #1: The Mini Bandit Sign

So I was going through a stack of stuff that’s been sitting around my desk for a while now (yes, I’m a “stacker”) and stumbled upon a really cool marketing piece I’d saved.

Now admittedly I’m a total geek for good marketing. So when I come across something that really stands out, I keep it as part of my “swipe file” of good ideas. Even if I won’t use it now, if it’s a really great idea, it might just come in handy at some point.

(Btw…you can just imagine how much my wife looooooves that I collect junk mail )

So what I ran across was a 4×6 postcard originally sent to me by the Georgia REIA (not sure why since I live in TN, but anyway)…

What really stood out to me was that instead of card stock, the postcard was made of coroplast. In other words, it was made of bandit sign material.

Here, check it out…

Pretty nifty, eh? Yeah, I thought so too. A really creative idea, that definitely got my attention.

Now keep in mind this thing got REGULAR POSTAGE for a postcard.

Then it hit me: What a GREAT way to advertise “We Buy Houses!”

And it can’t be that expensive! In fact, I remember when I first got the postcard I called up a Bandit Signs company to ask them about making something similar and they said it would be no problem — and I remember thinking the price seemed remarkably affordable (although I don’t remember what it was anymore).

Admittedly I haven’t given this a try yet myself — it seems I have no shortage of great ideas stockpiled, just waiting to be exploited.

But it’s a cool enough ideat that I felt it was worth sharing with you.

Please let me know what you think about it in the blog comments.

Killer Idea #2: The 55 Second Postcard

I ran across a great little video on Scott Patterson’s Flip It Real Estate blog just a couple of days ago.

It’s extremely short, but demonstrates what I believe may be the easiest, cheapest and most effective way to include postcard marketing in your ongoing endeavors to attract motivated sellers.

Watch this……

Now tell me that ain’t nifty?

Using real handwriting on your direct mail pieces has been PROVEN time and time again to be a powerful attention getter, with amazingly higher response rates in split tests against similar marketing pieces without handwriting.

So there you go. Two highly original ways to consider doing real estate investor postcard marketing.

Please let me know what you think about these ideas with a comment below. Thanks!

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Two Killer, Creative Ideas for Real Estate Postcard Marketing

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It’s actually from a larger presentation I shot of Detroit Wholesaler Bob Norton’s 92 minutes presentation during the 2007 at the Flipping Homes Profit Machine Intensive.

Now if you don’t know who Bob is, here’s two quick facts you might find interesting about him:

1. He’s built like a Sherman tank (physically)
2. He’s a MACHINE of a wholesaler.

I mean, as in, averaging a staggering 6 figures in quick-flip income monthly (yes, I said monthly) flipping junkers in one of the nation’s worst markets – well let’s just say he’s someone I think we can all stand to use a few pointers from.

In this 7m:29s clip you’ll discover a few choice, personal insights into Bob’s business model, including…

• How and why almost every deal he does is spoon-fed to him…
• His unique approach to getting on the “inside” with REO brokers, who’ve become by far his best bird dogs…
• How to avoid one of the biggest, “newbie” mistakes often made when approaching REO brokers for deals…
• What is it they’re really looking for in a relationship with you? How can you turn them on to you and remain honest at the same time?
• The big contingency Bob says you should always waive on your REO offers if you want to be taken most seriously…

As a real estate investor, Bob’s just interesting to hear from anyway. So enjoy, and I’d love to hear your thoughts about it in a blog comment below…

Ps…Bob did a whole “Saturday Workshop” covering his model in detail about a year ago. For anyone interested, we’ll be re-releasing those audios for a limited time in early June, and I’ll have more clips (audio and video I think) coming your way from Bob before then. So watch for that.

And don’t worry - I’ll send advance notice out to our newsletter subscribers.

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