Category "Wealth"

Closing Like a Pro

Good Sales People Aren’t Born, They’re Trained.

“But I’m not a salesperson,” you say. “I don’t need to close sales because real estate investing doesn’t require sales. That’s why I have an agent who sells the houses for me!”

Excuse me while I take a sip of my coffee to suppress my chuckling.

You could be the best in your area at marketing and creating leads. You could have all the distressed houses at your fingertips. But unless you can get the seller to sign, you’re out a whole lot of work while someone else snags up the properties. The ability to sell isn’t exclusive to used car salesmen or corporate jobs.

If you’re waiting fore deals to fall into your lap because you don’t want to “sell,” then you might as well make yourself comfortable because you’ll be waiting a while.

You need to be able to sell to create opportunity for yourself.

If you can’t close a deal, you don’t have a deal.

Though it takes practice—and for some, training—being a top-performing closer will drastically shift your real estate investing from hobby level to replace-your-job level. If you’ve been on a webinar with me, chances are you’ve heard my Circle of Wealth goals for you. First, you need to earn $250,000 in liquid capital. Do you think that first step to life-long wealth happens by putting out hobby level effort? I won’t even continue with the steps needed to create life-long wealth, because if you can’t close a deal, you won’t get much further than step one. (You CAN read more about it: <CLICK HERE>)

But closing a sale doesn’t have to be daunting, and you don’t have to be a character straight out of The Wolf of Wall Street to succeed at it. In an effort not to overwhelm, let’s start with the first 4 steps in training to be a winning closer. Master these and we’ll up your game even more.

  • Have Multiple Strategies

This is why I teach on making a 3-tiered offer. If you only give the seller one opportunity to say yes, you’ve instantly reduced your odds for success by way more than half. Even with a 3-tiered offer, you need to have several approaches ready to employ. Closing a sale is like going on a road trip. If you don’t have enough fuel, you aren’t going to get to your destination. You need more strategies than the homeowner has objections.

  • Stop Buying the Seller’s Story

When talking to a potential seller or distressed homeowner, we need to ask questions to glean as much information as possible. And when they start in on their story, our ears need to perk up because it’s that pain point that we can fix.

Never glaze over the meat of the story. Maybe it was divorce that lead to financial distress and pre-foreclosure, or a loss of a family member or a layoff for the bread winner. Whatever the root of the distress is, pay attention! You are not their councilor, swooping in to fix their problems, nor do you want to use their pain for your gain. But if you let the homeowner sob into your shoulder about their pains without offering a solution, you’re not doing anyone a service.

Get the homeowner out of their own head by selling them on the solution. You can provide them with the cash they need to start over, you can give them a life raft out of their sinking ship, you can untether them from a bad situation by providing a monetary solution. But the more you buy into their story without selling them on a way out, the more you reinforce their victim mentality and set them up for failure.

  • Apply Pressure to the Wound

Let’s say you suffered a serious wound on the leg and began bleeding out. You’re weak from the blood loss and don’t have the strength to rip off your shirt and tie it around the cut with enough force to slow the bleeding. An acquaintance is nearby with a sterile bandage in hand, but they are too afraid to apply pressure to the wound, believing that pressure is rude and unprofessional. And so, you continue to bleed.

Ridiculous, right?

You’ll encounter distressed homeowners who are bleeding out financially. For whatever reason, they don’t have the strength or knowledge to fix it themselves, and though they won’t come out and ask you to apply pressure, if you don’t, their situation won’t change.

Pressure doesn’t have to be a bad word. If the solution you’re offering someone is wise, well addressed, and valuable, then they may need a little persuasion to see it as such. When you see a wound, sometimes you need to apply a little pressure.

  • Train

I’m not talking locomotion, I’m talking education and practice. Sales people are the third-highest paid profession on the planet, directly behind doctors and lawyers. Consider how much time both doctors and lawyers spend in school and in practice before becoming professionals in their field.

Don’t believe you can just jump in and close your first deal and then get discouraged when it doesn’t work out. I’ve seen too many people give up prematurely because they didn’t understand that to be great at anything requires practice and developed skill. You can learn the skills; I can teach you that. But the fortitude must come from you.

You may have to get uncomfortable for a while. You’ll stretch your selling muscles, make mistakes, learn from them, and improve. But remember to ask yourself, “Who am I NOT to do this?”

YOU have what the distressed homeowner wants: a way out.

By not doing your absolute best to get a deal under contract, you’re actually doing them a disservice by leaving them in the bad situation you found them in. Not every deal is going to close, and that’s okay. Like the rest of business, it’s a numbers game.

Put your best foot forward, lead with love, and help others.

If you’d like the hands-on training needed to catapult you from meandering salesperson who hopes for good deals into a confident closer who enters each potential transaction with the needed skills and tools to secure a deal, then stop waiting and wishing. Act now and call us at 800-473-6051 to discuss the necessary courses or coaching to get you there.

Don’t worry, we’ll only apply pressure if you’re bleeding.


Lee A. Arnold


The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at to fill out your fast and easy quote. Want to learn more about us first? CLICK HERE to get to know all the ins and out!


6 Steps to Fantastic Follow Up

Indulge me by answering this simple question: Would you rather spend all your time and resources hunting for new clients, or spend less time maintaining your current client relationships?

If you chose the first option, will you send me all your old client information so I can mine for the gold?

Many people don’t realize how big a gold mine they’re sitting on with the numbers in their directory. I’ve seen people build multi-million dollar businesses off of a client base that steadily grows but remains largely the same. Why? Because these business owners understand the importance of maintaining quality client relationships that lead to more business.

Even if you only have a few clients (or none at all because you’re just starting), you can build a solid client base by practicing my follow-up system.

Maintain Communication

Regular follow-ups give the customer a chance to be heard and engaged effectively. Whether you know it or not, many clients expect you to keep in touch. People want to be told what to do and expect next, so provide them with tangible opportunities. They may even have another property or job lined up for you, but unless you reach out, they could take it elsewhere.


Following up makes your customers feel special, therefore increasing reliability from them. But, what happens when you follow up and they have a beef with you? LISTEN to it! Provide them with a chance for you to prove yourself by improving what needs to be corrected, and you may end up with the strongest client connection you’ve ever had. You can never listen your way out of a customer.

Go the Extra Mile

When you fulfill a customer’s expectations, you’ve already given them a reason to business with you again. Remind them with regular follow-ups, and you’ll inspire them to remain loyal supporters of your business.

Offer Incentives to Let Them Know You Appreciate Them

Send them a package of cookies or a coffee gift card; you’ll never know how great an impact something so small can have on your business until you do it. Studies show that when people feel appreciated by you, they associate the feeling with working with you.

The opposite is painfully true. 68% of customers leave a company because they perceive that the company is indifferent toward them. If you could avoid losing 68% of your clients by showing them you care, would you?

Make It Easy for Them to Work with You

When working with you is the next logical step for your clients, and you remind them of this through your follow-up system, then you won’t be short on business opportunities. Keep your process simple, anticipate their needs, and stay up-to-date on your consumer knowledge.

And lastly…
Make It Easy for You to Follow Up with Them!

Set yourself up for success by systemizing your follow up routine. Set up:

– A Customer Relationship Management System (CRM)
(You’re going to spend all this time making calls, dropping letters, and securing customers, but who is communicating with them when you’re on vacation?)
– An email deliverability service which sends emails, surveys, and auto-responders
– A Website
– A Blog
– A system to send out newsletters, reports, and webinar invites
– An online system to disseminate real-time information for client consumption (webinars)

Remeber; be annoying, be a pest, and be a CONSTANT REMINDER that your service provides others with RELIEF. The worst thing you can have in your business a client with a deal come to you with a missed opportunity because they lost your number!

Something as simple as a phone call can tell your client that you don’t take them for granted.

For more on creating a quality Follow-Up System, CLICK HERE.

I’m unveiling a new Lien Abatement program in Las Vegas in December. (To read more about it, CLICK HERE and HERE.) This information will give you a HUGE edge against your competition. It’s fast approaching. You don’t miss this training! Lein Abatement Specialty Certification weekend in Las Vegas on December 7th-10th, call us at (800) 473-6051.


To Your Success;

Lee A. Arnold


The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

For our latest success stories, click HERE and HERE to read how others are finding, funding, and making money on their deals.

The Long and the Short of Short Sales

- - Borrowing, Wealth


This is not a new strategy. It’s been a buzz word since the recession of 2008, but many investors are beginning to shy away it thinking that it’s an outdated strategy. They’re wrong!

If you’ve ever wondered about short sales–what they are and how you can benefit from them–consider this a lesson in Short Sale 101. A short sale is nothing more than a specified bid at a foreclosure auction done months in advance. Let me explain…

There are two types of bids; full debt bids and specified bids:
1- FULL DEBT BID. The opening bid is everything the homeowner owes the bank. It is the full debt bid you pursue in the strategy of “equity deal” we discussed HERE.
2- SPECIFIED BID. The opening bid is lower than what is owed, and though the bank is not guaranteed to get what is owed on the house. They know this but also do not want the house back.

Let’s say $220,000 is owed on a property that went into foreclosure. It’s worth $180,000 in its current condition, but the opening bid is $60,000. There’s a big different between $60,000 and $220,000, and a where the bank loses, the bidder could win. Now, the bank is legitimately willing to let the property go for $60,001 because there’s no guarantee that the bid will go any higher than the opening bid. Unfortunately, the problem with the specified bid is your abundance of competition.

Years ago, I saw the opportunity in this bidding structure but wanted the ability to buy at $60,000 without other bidders driving the price up so much that I made less and less profit. That’s where the short sale came in.

In most markets, a foreclosure process typically takes anywhere from 90 days to 180 days. And in judicial markets, like Florida and Georgia, the process can take 12 to 18 months before the property ever arrives at auction.

If you know a house in going through this process, you can wait until the process matures and jump in at auction time, or you can be proactive and pursue the property before anyone else.

Foreclosures typically begin 90 days before the sale and from the beginning, they have to post some type of notice. “Lis Pendens” or “Lean Pending Filing” (this is the bank suing the homeowner to regain possession of the property) or in a non-judicial market where they begin with a notice of default filing.

Whether it’s a lis pendens filing or a notice of default, this is a notification to you as an investor that this property is in trouble, and unless something changes over the next few months, the homeowner is going to lose the property. A lot of homeowners going through this process have no idea what the process is or how it affects them. This is where you swoop in as the alley to the homeowner and create a win-win situation where you can help the homeowner lose the house to foreclosure, but you can buy that property at the specified price.

– You can help a homeowner stay in the home longer than if they home went to foreclosure.
– Often times, you can help the homeowner lower their payments through modification and increase their equity in the home.
– You can inspect the interior where at auction you can’t do that.
– It requires no rehab in the homeowner stays in the property
– You don’t need all cash.
– You don’t have the competition of other bidders.
– We can charge higher than market rent by renting back to the homeowners (not legal in all markets, so check before pursuing this strategy).
– The tenant pays all of your mortgage which = positive monthly cash flow.
– Best of all, you’ll have instant equity in the property and plenty of options if any of the cons below happened…

Cons: (You’ll see these are similar to any property you would buy and rent out)
– There is a possibility that the tenant doesn’t pay you.
– The tenants could trash the place.
– Or the tenants could abandon the property, leaving you without a renter (until you got another one).

Now, as you’ll see, this is a pretty short list compared to the list of pros. And there are other cons that you would need to consider if you pursued a bank loan or conventional financing to purchase a short sale; such as the bank requiring a BPO, or Broker price opinion, or having to wait several months while the banks call the shots on your financing, which can be frustrating! But, you can often get private money for these short sales, seeking out competitive terms and interest.

The bottom line is there are multiple ways to find a good deal. If you think finding a short sale property is right for you, do your research and go for it! We’ll be here to offer a financing option for you when you do.

To Your Success;

Lee A. Arnold


The Lee Arnold System of Real Estate Investing

To read more articles click here.

Follow me on Twitter: @LeeArnoldSystem




I get a lot of questions, and I’d like to make it easier for you to get answers. Today, I’m fulfilling several of the questions I’ve recently received. If you have questions of your own that you’d like to see answered about using hard or private money, I’ll show you how you can get them answered!


#1 “Please explain the difference between hard money and transitional/transactional funding?”

Transactional funding is for a short period of time; anywhere from 1-3 days. It’s very expensive and very short term, and usually only comes with a “point” attached. A point is nothing more than a percent. So, if you want to borrow $100,000 for this 1-3 day period, and it costs you “5 points,” that means 5% or $5,000 you must pay just to borrow that money for those short, few days.

Hard money works like this; say you need $100,000 for 6-12 months for the residential housing market (or 18-36 months, as commonly found in the commercial sector). A lender could charge you 5 points, which is $5,000, and you’ll also pay interest monthly.

$100,000 5 points ($5,000) + 15% interest payment is going to run you $20k (I’m using simple, noncompounded numbers here for this example). That’s $20,000 spent for the $100,000 over the duration of the loan.

So, when is it a good time to borrow hard money? When it’s a good deal. If that $100,000 means you can fix that property up with a net of $50,000 made, then if you have to spend $20,000 to make $30,000, that’s a great deal!


#2 “I want to purchase the duplex I am currently renting. Is there a loan I could get to buy the place?”

If your intention is to continue living in the property, a hard money lenders will not lend to owner occupants. You’re likely going to have to go conventional.

If your plan is to move out of the property and become the landlord, then you could potential go either way, but you better have a plan.


#3 “Once I find a good deal and have it under contract, where can I find the hard money required on both a local and a larger scale?”

First of all, thank you for wording your questions in such a manner. Your first step, of course, is to find the deal and have it under contract!

Thankfully, the next part is easy. Hard or Private Money Lenders are looking for you.

First, go to your local paper and look under the section titled “Money to Lend.” With the list, call them and begin the conversation. They will likely for an email correspondence, asking for the contract to see, what the terms are, who are the parties (buyer/seller), and are you going to purchase the property under a personal name or your LLC.

Buying property with the purpose of flipping it = Buying in your LLC

Buying property with the purpose of holding it (hard money for short-term bridge, fix it up, and refinance in your name under conventional financing = Buying in your name.

Buying a property with a credit partner (someone with a great credit score who could refinance in their name) = Buying in THEIR name.

Your exist strategy should determine your entry strategy, because you don’t want a clouded title!

Then, once you’ve search locally in the paper, go to your search engine of choice (mine’s Google), type in “hard money lender, your city, your state, and the zip code of the property.” A hard money lender that is using search engine optimization will use those elements to populate their website. Again, get on the phone!

Call every single one of them. If you can’t find a lender, the problem is probably 1 of 2 things: you aren’t calling them all, or (more likely) your deal isn’t that good. If you have a good deal, funding is the easiest thing to get.

Have a deal? Visit us at to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!


If you have questions you’d like to see answered here on the blog, go onto Twitter, follow me @LeeArnoldSystem and use the hashtag #AskLee to pose your question. Then, check back on this blog weekly to watch for your answer!

To Your Success;

Lee A. Arnold


The Lee Arnold System of Real Estate Investing

To read our latest success story and learn how a high school dropout is now making 6 figure paychecks, CLICK HERE.

Building Long-Term Wealth: the What, the Why, and the How

- - Fixing, Flipping, Wealth

Do you need to make money fast or are you looking to build long-term wealth?

(If you want to build long-term wealth, read this article. If you need to make money fast, CLICK HERE.)

Build Long-Term Wealth with Retailing:

The What:
Retailing a property—otherwise known as fixing and flipping—is a real estate investing path that puts more money in your pocket and builds an opportunity for long-term wealth. How? Well, let’s first talk about what this process typically looks like at a glance, as well as the benefits of it.

Flipping properties, or retailing, is, by my definition, the process of taking an often distressed property, investing in the renovation to make the property desirable, and selling it at a competitive price. When you buy low, rehab smart, and sell quick, flipping a property can make you a lot of money.

For real-life examples of this process and payoff, CLICK HERE or HERE.

The Why:
So, what makes this route appealing to investors like yourself?
1. Retailing a property maximizes the return on your investment. You are forcing the appreciation of the property through sweat equity.
2. It creates a feeling of satisfaction in physically changing a property’s worth.
3. You don’t have to use your own money, and this capital is tied up for less time than a buy-and-hold (Rentals/lease option properties).
4. Flipping also eliminates the management and leasing risk inherent in holding real estate.
5. When done right, you make a big profit in a short period. If practiced the way I teach, flipping a property will yield a significant profit in 90 days or less, which means you have the potential to do several properties in a year. Essentially, this way you get to determine your annual income.

The How:
Let’s get you in front of the Lee Arnold “Flipping Capital” System where you’ll learn how to avoid getting in over your head on a property, mistakes to avoid, how to determine the ARV, how to formulate the MAO (maximum allowable offer), understanding holding costs, and so much more. By calling us at 800-533-1622, you can purchase the system a la carte or pay less than half for the system by purchasing a yearly subscription to our Membership site.

Click the photo if you’re already a Member!

Or, I am PAYING the tuition for a set number of attendees for my Funding Tours, where I will teach these strategies and more. To find a Funding Tour near you and reserve your seat, CLICK HERE or call 800-533-1622. These tickets are $497 at the door, so book now while I’m still paying for your seat. I highly encourage you to take advantage of this education, network with peers, and prove that you’re ready to take the first steps into your real estate investing career.

By now, you may wonder why I have retailing listed in this article under “long-term wealth.” It’s true that if you stop flipping properties, you stop making money on them. So how does this relate to long-term wealth? By pulling in more profits, you are building your capital until you have what we call “investor status.” To learn more about this and how to enter into the Circle of Wealth—where you will see the type of residual, passive income I’m talking about—check it out HERE.


Maybe this route is overwhelming to you, or you don’t have the time and effort to spend rehabbing the project. That’s fine. You’re probably better suited to Wholesale instead. READ THIS!

What Are the Four Common Reasons Real Estate Investors Fail?

- - Wealth


Number One: Concentration on a Technique (Lease Option, Subject To, Foreclosure, etc.) Rather Than on Property

Successful real estate investors concentrate on the property itself, rather than on a specific technique. This not only allows the investor to concentrate directly on where the most profitability resides, but also opens a much wider array of potential “deals” for the investor to consider. Nothing drives me crazier than when I am out at events and I am meeting with a client and I say, “What do you do?” And they say, “I am a wholesaler.” Great, understand that wholesale is simply an entry strategy to real estate. It is also an exit strategy to real estate, but if you don’t come into the deal properly you are not going to be able to exit the deal properly. Wholesaling is just one method of going out and consummating a transaction, but wholesaling is only possible if you have a viable deal. I see too many investors putting their focus on the technique or the strategy and not enough focus on the actual deal.

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Who Else Wants Their First Million? 5 Steps Setting You Up For Success

- - Wealth

Real Estate Investing

Real estate investing is the most accessible road to wealth.  Some invest as a hobby/passion and others as a means to experience and do the things they love.  What differentiates those that make it and those that don’t?  It’s resilience, connections, work ethic,  industry education level and sometimes it just comes to the simple day to day.  To be successful using private money to fund your real estate project, you must begin to change your physical and mental environment.

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