Category "Communication"

Broker Clientele Building

Do you know the fastest way to build your clientele?

If you are a Private Money Broker, you may be paying HIGH opportunity costs by not maximizing your clientele.

 

With $77 Trillion sitting in bank accounts, savings, and retirement accounts in America, there’s no shortage of investable money. Additionally, 30% of all real estate is owned free and clear.

 

With all the real estate owned in America, can you wrap your brain around how much equity that is to tap into?

 

In short, there’s a whole of money out there that doesn’t know what to do with itself. It’s sitting in IRAs and 401ks and bank accounts, and it’s waiting to be deployed.

 

If you’re a broker, consider yourself an “Agent of Deployment.”

 

With all that money out there, you clearly can’t blame a “shortage of funds” for a stall in the deals you broker. Money is looking for a place to go where it can grow. Money wants someone to swoop in and take control of it, someone to place it where it can mature. But does money trust YOU?

 

How much of other people’s money do you have under management? That will dictate if money trusts you.

 

When you compare apples to apples (good broker to good broker), some are getting all the business while others are fighting tooth and nail to close only a few deals a year.

 

Why?

 

There’s a clear reason. The private money brokers who are getting all the business are active at one simple thing…

 

Is it a website or business cards or a suit or knowledge that makes the difference?

 

No.

 

The #1 way to increase your business is to use 3rd party endorsements and testimonials.

 

This results in referrals. Referrals are the key! People will give you money faster if someone else told them to give it to you than if you ask for it yourself. Referrals are a strategic tool in marketing, and you need to start revolving your business around them if you want to stay in business.

 


Take a few minutes to consider the following 10 questions about how well you are (or aren’t) soliciting endorsements, testimonials, and referrals.

  1. Are you asking for testimonials from clients?

 

Attract other high-value prospects with evidence that you walk the walk. For some of our testimonials, click HEREHERE, or HERE!

 

  1. Are you asking for referrals?

 

If not, create a way for clients to recommend people to you and your services. Have you ever notice that when we ask for video testimonies at the end of an event, we do it in front of a wall plastered with our logo? Can you get clients to fill out a simple survey on your services? Can you link your website to social media and ask your satisfied customers to spread the word? Are you actively promoting on social media in a way that people can easily share, retweet, and email your content to others?

 

  1. Are you following up to see if people need anything else after working with you?

 

Repeat clients are more likely to give referrals. Are you active on LinkedIn, keeping people you’ve worked with in the past engaged?

 

  1. Do your current clients know all the services you offer?

 

Don’t assume everyone knows the full scope of your business. We have content up all over–websites, emails, radio stations, etc.–and even a business as large as the Lee Arnold System of Real Estate has to constantly remind our clients of all the ways we can help!

 

  1. Are you asking people to hand out your cards to other potential clients?

 

Don’t assume that if someone is happy with you, they will pass your information on.

 

  1. Are you asking new clients how they heard about you?

 

If they give you names of the person who referred them to you…

 

  1. Are you recognizing and thanking the referrals you get?

 

It’s important to express appreciation to those who connected a client to you, helping to ensure that they do it again.

 

  1. Can you provide valuable content to your referral sources?

 

An email list with a roundup of (occasional) updates can be helpful to others in the industry. If you share unique content, people are more likely to remember your name, use your services again, and pass your name to others.

 

  1. Are you treating people you work with like allies/partners?

 

Let them know that you view them as a strategic partner and encourage them to see you in the same way. This creates an active channel to share professional referrals.

 

  1. Are you providing a remarkable service?

 

Do people WANT to refer you to others? If the answer is “no” (even questionably), then you need to address any glitches you have and plug informational holes by educating yourself with the latest industry knowledge (I suggest attending one of our Private Money Broker events, call 800-533-1622 to speak with a business consultant and find out which one is right for you).

 

Be on top of your game and referrals will role in.

 

With a proper, honest assessment of the questions above in mind, where can you improve? What do you need to focus on to gain a new layer of a client base?

 

The most important thing you can do is to ask.

 

Open mouth, open business.

 

To Your Success;

Lee A. Arnold

CEO

 

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com 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!

Don’t Let This “Problem” Get You Down

Problems are just learning tools; each an opportunity to do better next time; each a tool you can sharpen.

The most consistent problem we hear about when our borrowers renovate a property is finding a contractor that delivers on their promises, doesn’t do expensive and unnecessary work, and maintains both budget and timeline.

If you’ve ever done a flip, you may have encountered a less-than-stellar contractor or subcontractor.

Not all contractors are bad. There are some amazing people in this world. But, sometimes you discover a wolf in sheep’s clothing.

Do you know what to do when it happens?

Do you know how to tackle problems? Do you know how to manage people the right way so that you keep as much profit as possible, build lasting relationships, and can consistently repeat your success?

The unfortunate truth is that there are too many dishonest people out there. We work with real estate investors from coast-to-coast, from the Rockies to the Appalachians, from desert to farmland. With most of the continental states, thousands of towns, millions of contractors, we can’t give specific recommendations or dismissals of anyone.

And, sadly, if you get stuck with a bad contractor, you could end up losing money, time, confidence, and belief in yourself. I’ve seen it happen, and it sucks.

In the wrong hands, you’re a number, a paycheck.

In our hands, you are a person.

What we CAN do is train you to manage anyone the right way; to minimize your risk and maximize results and profits. If you’re not familiar with The Lee Arnold System of Real Estate, a great place to start would be by attending a 3 day Funding Tour.

If you’ve been here more than 20 minutes, chances are, you’ve heard of Funding Tours before. And why do we talk about them so heavily? You may even know that if you go to FundingTour.com , you can get your tuition paid and have a guest ticket, too.

Well, the Funding Tours are part of the backbone of our business because we can train you on what to do, show you what to look for (we have an epic bus tour), and then lend you the money to get it done.


But what can you do in the meantime?

Well, the first thing to know about contractors is that the relationships between investor and contractor is vital to the success of any project, but can become trying when any of the following problems creep in:

  • Lack of communication
  • Poor communication
  • No communication
  • Misunderstood communication
  • Conveniently “forgotten” communication.

(Notice a trend?)

You must to be in continual and efficient communication with your contractors. No news is bad news.

You need to know what is happening, when it’s happening, what the costs and projections are, what the deadlines are, how closely the schedule is being adhered to, etc. If you don’t know, they don’t know, so start the conversation.


For more, check out some of these links:

A few weeks ago, we covered project management HERE.

For a tip on being HANDY, click HERE.

And finally, if you need a list of items to check for upon your contractor’s completion, CLICK HERE.


And if you haven’t been a part of a Funding Tour yet, well you can just give us a call at 800-473-6051 and explain why.

Or you can go to FundingTour.com

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem

Have a deal? Visit us at www.cogocapital.com 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.

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.

Listen

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

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com 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.

Warm up to Cold Calling

- - Communication

What if I told you that you’re sitting on a gold mine?

At one of my recent events, I had a woman in the crowd who told me, “Lee, I want to grow but I don’t want to make outbound calls.”

I said, “Well, I’ll make you a deal. I’ll hire you to come work in a cubicle in my office as a full-time employee, give you all the leads you need, give you a phone and a script and all you have to do is sit there and dial all day, every day, and I’ll pay you $100,000 a year. You’ll have to move out to my office to do it.”

She looked at her husband and says, “I’ll take the job. We’ll move 3,000 miles to come work for you to make $100,000 a year.”

Who out there would like the same opportunity? Do I have your attention?

Now, wait. I’ll tell you the same thing I told her. I said, “I wasn’t trying to employ you, this is just a scenario. But I’m trying to make you understand how valuable your leads are. If I’m willing to pay you $100,000 a year to dial those leads, how much money do you think I’ll make off those sales? I’m looking at a five-to-one or even a ten-to-one return on every dollar I invest in my employees. So, I stand to make up to a million bucks.”

And I’ll ask you the same question I asked her… “Why would you let me make that money if you’re doing the very work that you have to do to make it yourself?”

 

I’ve been in business long enough to know why people don’t pick up the phone and call leads.

  1. You’re afraid of rejection. You never know what is on the other end of the line. Maybe you’ll get hung up on, maybe you’ll get yelled at or asked a question you don’t know the answer to. You’re afraid you’ll be put on the spot without proper preparation and it’s terrifying.
  2. You don’t want to do it. You haven’t seen the benefit of the dial. I can tell you, I’ve made more money on the telephone than any other tool in business. No matter how you’re getting your leads, if you’re not calling them, then that’s money wasted!

 

So, what exactly IS cold calling?

Cold calling is calling a potential client at any given time (not an appointment), following up with potential clients that have responded to your ads, calling people when they have no expectation of hearing from you, or even calling or emailing referrals.

It’s you, the phone, and the unknown.

Why is it necessary?

By now, you should have a good idea why it’s necessary.

In a perfect world, you’d plaster bandit signs on every street corner, mail out fliers to homeowners, and place ads in the local newspaper or on Craigslist and have you phone ring off the hook. But, if the only deals you’re making are a result of people who are reaching out to you, how many more are you missing because you aren’t picking up the phone?

 

How can you do it better?

  • Contact Management System/CRM. Simply put, these are technologies or systems you can use to control your interactions, improve your business relationships, and help retain clients. I like my CRMs to follow up on the leads and get people committed to appointments because I don’t like making outbound calls more than you do. If technology does the hard work for me, I’m suddenly calling someone who is interested in hearing what I have to say, and that means less dialing for me.
  • Hire telemarketers with a script to turn cold leads into appointments. Get your kids to make the calls or pay someone $10 an hour to dial and set appointments. Then, you’re not making cold calls, you’re dialing your appointments because they’ve weeded out your list for you. You can value your time and make calls. (Check out this article on TIME MANAGEMENT.)
  • Be organized. You can use Excel or Google Docs, or even an old-fashioned lead-sheet, printed on paper and filed in a folder. Whatever way works best for you, make sure to notate the lead—“disposition” the lead as called and schedule a follow up. (For more information on the importance of following up, CLICK HERE.)
  • Don’t waste time. Learn to spot a “real client” from a “tire kicker.” It can be hard to decipher at first, but you’ll get the hang of it. A tire kicker might say all the right things to keep the conversation going, and then casually mention that they don’t have any offers on their property, and admit they aren’t motivated. A real, potential client is going to tell you 2 things: What they want and when they want it.
  • It’s a numbers game. For every 30 calls you make, you may get 10 leads, and from those you’re looking at 1 deal. Is it still worth it to make those 30 calls? Yes! You got a deal!
  • Self-analyze. Go over your notes or record the phone call. What could you have done differently? Learn from your mistakes and your triumphs and improve.

Without leads, you don’t have much of a business. But, getting those leads is just one part. Unless you communicate with those leads, it doesn’t matter how good they are or what potential they hold.

If you’re not picking up the phone, you’re sitting on a gold mine without ever tapping into it.

If you’re ready to kick it up a notch, join us for a FUNDING TOUR and we’ll provide you with a $250,000 pre-approval letter to support your next transaction. For more information on what a FUNDING TOUR is and why I believe so strongly that you should attend that I’ll pay for your $497 seat, visit fundingtour.com or call 800-533-1622.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com 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!

Helping Distressed Homeowners

 

People lose their homes. It’s an awful experience for most, and the situation comes with a myriad of emotions. Although you can help turn the situation into a win-win experience, if you don’t know how to properly tackle the sensitivity of the topic, you aren’t going to help anyone.

I recently walked you through the basics of an Equity Deal (to read and watch, click HERE) and the fundamentals of Short Sales (click HERE). To further your understanding of these processes, you need to understand the etiquette necessary when talking to a homeowner in trouble.

Put yourself in their shoes. Many owners who are on the brink of losing their homes are emotional, desperate, and/or in denial. You must be aware of their position and ready to step forward with confidence.

Tips for Working with Troubled Homeowners:

– First, you HAVE to be respectful. Smile and be courteous. Don’t present yourself as a money-hungry investor unless you want a door shut in your face. You are not doing them a favor, and you don’t have the upper hand. This is a win-win situation. If the owner feels you’re taking advantage of their plight, you won’t build any trust.

– Assure them that you will help if they’ll let you. You need to know what you’re doing (If you don’t, let us help you learn CLICK HERE to learn more about events coming up where you can learn the basics). Appearing as a novice investor will not gain trust. Practice with a friend or spouse if you need to, and deliver your polished pitch with professionalism.

– Explain that foreclosure is inevitable, and if they don’t take action now, they will lose their home at auction. But don’t ever threaten or say anything to purposely upset them.

– If they want to tell you their “sad story,” as many will, listen to them. You will likely learn a great deal about the history of the home and the loans associated.

– Be compassionate, sympathetic, and understanding of their situation. There’s no reason to be rude or disrespectful, ever.

– Don’t force the issue. If they aren’t ready or if you didn’t explain things well, leave and try another time.

– Dress business casual. You want them to feel relaxed around you, but know you are competent.

 

Now that you have some pointers, marry them with this simple process for a winning formula.

1. Contact the homeowner (or respond if they contact you). We’ve talked about how to do this before, but if you still need help getting started, PLUG.

2. Schedule an appointment to discuss in person how you can help, determining their needs and getting the appropriate paperwork signed. If the initial conversation happens on the phone, that’s fine, but express the importance of meeting face-to-face because you need them to sign…

3. Paperwork: You must get a homeowner to sign the proper documentation to begin working with them (each state and lender requires different paperwork, so do your research). Be sure to know what is needed and have it ready to be filled out.

a. Authorization letter: This lender-required document is vital in order to begin working together, stating specifically whom they may release any information to about the loan.

b. Purchase and Sales Agreement: This creates the ability to purchase the property IF the bank accepts the offer, allowing you to be the sole investor with whom the homeowner and bank can do business with. They can be at ease, however, because this document is only valid when the lender agrees to the purchase price or if you offer more than the homeowner owes.

 

Assure the homeowner that they are not signing their life away and should be comfortable with the process! This is simply a step they must take to get the ball rolling, but for you, it is the goal of the meeting.

Stay tuned, we’ll soon discuss where to meet (and what the pros and cons are of each location) as well as questions to ask them along the way. For now, continue to make contact with homeowners; send out those letters, make those calls, and refresh your ads for maximum exposure!

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

To challenge yourself personally and in your business, CLICK HERE.

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

6 Questions To Ask A Seller

- - Communication

paper_question_mark_19357Before structuring the deal, you need to understand the seller’s motivation. Why are they even having this conversation with you? To do this, here are some questions that I want you to make sure that you’re asking. The answers will help you in the negotiation and give you some idea of the terms to put into the purchase and sale agreement.

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Meet the Loan Processor

- - Communication

Yesterday, we talked to Bill Koder about how to ensure that the borrower and the broker do their part to make sure that loans close quickly. They key was organization and timely delivery of the necessary documents.

Today, let’s take a look at what “loan processors” do seeing that they’re also key to getting your loan closed in a timely fashion. If you have closed a loan, you may or may have had a discussion with Haley Welton; our loan processor. We took a minute to ask Haley what the main issues or objections that causes a loan to be stopped or slowed down.

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Here’s A Method Helping Rehab Investors Build Close Ties With Their Agents

- - Communication

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How To Find An Agent For Your Rehab Investments

If you do not have your real estate license (not a bad idea to entertain), you must find a speedy agent who can get you as many listings as possible, fitting your rather unusual criteria, perceiving a miniscule commission rate from your bargain, and… they are thrilled about it.  What a dream team.

When you wake up from your dream, you will learn that you can keep an agent for a long time and this can be a mutually beneficial relationship.  But? You just need to take some burden off your agent, clearly relaying your minimal expectations. Continue Reading