Mitch Goldstein | Coach Mitch | March 1st, 2008Coach Mitch’s REFLECTIONS
REI – Real Estate Investing
When you first think about real estate investing, most people probably think about fixers, or land lording or perhaps foreclosures, etc.
Of course, the late-night infomercials promise to teach you to buy property with no money down – but they never say how to do it.
“Buy low, Sell high.”
This is the common thought. But how do you do it?
How? That is the #1 problem
The #1 real estate investing problem is: How do you get the great deals?
Even better – How do you get the great deals on a consistent basis?
That is really a two part question, but don’t worry, we’re going to handle it.
Successful sales professionals know that no one makes any money until a prospects problem is solved.
Successful Real Estate Investors know
that they must spend their time seeking out people with real problems, and the real estate may be a part of the problem.
Then they use their specialized real estate knowledge and personal skills to create a solution for that problem and the profits usually follow.
The BIG Secret…
Focus on the people more than you focus on the real estate.
Real estate “wanna-be’s”
spend their time studying the newest course. You see, reading or listening to a tape is something that is under their control and it makes them feel good.
Apparently, feeling good is more important to most of us than doing good, work,that is.
Unfortunately, newbies don’t spend time doing what is really important, namely, trying to find the people who would benefit from their knowledge. Rather, newbies focus on seeking out that winning strategy and not on talking with people about their particular circumstances and what can be done to fix the problem.
Newbies think that their knowledge of the right real estate strategy will translate into profit.But that is simply not the case. The only time a profit is generated is when a problem is solved.
Problems -errr, I mean Opportunities are everywhere
Look around. Do you know anyone without problems? Most of US are hanging on by a few paychecks. Many have lost their way and folks are sliding into the abyss, hoping a white knight will find them. This last thought is so true.
Most people freeze – like deer looking into the headlights
Most people in trouble will try a few things and then just give up instead of continuing to seek a solution. They wait and hope someone will come by and lend them the monies to fix their problem. Instead of looking for the white knight, folks hope the white knight finds them. It seems like they just crawl into a ball and die. They are very, very fragile and that is why you must be very careful in how you treat them and their situation.
Motivated sellers
What are the typical motivated sellers’ situations? The gurus teach you to seek out a divorce situation, a bad tenant situation, a mortgage foreclosure, a property needing fix up, etc.
Well, these situations are often very motivated, but they are not desperate.
Other gurus don’t teach you to seek out tax delinquent property owners
How would you label this situation?
A mother who can’t pay her property taxes because she needs the money to pay for medicine for her daughter who was severely burned. No, of course she does not have medical insurance.
What would you do
if you had to choose between paying your taxes and getting medicine for your child?
It’s an easy choice but it has consequences.
In 3 days there will be a tax auction sale and the tax delinquent is going to lose the home that had been in her family since the Civil War. She has nowhere to go and no money to get there. The motor in the car is blown so she doesn’t even have the ability to be homeless in her car. What does she do with her burned daughter? No, she doesn’t have relatives or friends who can or will help.
Now that is a bad situation!
How does a tenant who plays loud music compare?
Do you now see the difference between a mere motivated situation and a truly desperate situation?
Just such desperate situations are often the kind of situations that you come across when you are looking at tax delinquent properties. Why else would a person not pay their property taxes?
Specialized knowledge is needed
in order to handle a situation like this. What sort of strategy would you employ? Purchase? Owner financing? Purchase and lease back? Option? Wrap?
Coach Mitch’s “Ridiculously Simple System…” speaks to this type of situation. That’s because I know, from experience, what you will be facing and how to properly handle these eventualities.
First and foremost, a situation like this needs tact and empathy.You do not go in, licking your chops because you see a person in trouble. They will turn down anything you say if they feel that you are seeking to profit from their misfortune.
Show me a guru that tries to instill tact and empathy in their students? Coach Mitch does.
First, this person in trouble is looking for you to make a connection. You must show that you understand her feelings and that you feel bad about her situation.
Only then will you be able to get the relevant information you need to try to determine a strategy that will satisfy her.
Most investors just don’t understand
that folks who are in truly dire situations do not expect much. This is your ace in the hole.
“What are you looking to accomplish?”
These six words get me straight to the heart of the matter. Just try to give her what she wants. If it is too much, then you can negotiate. Typically these folks are so beat down that you can get a great price and great terms.
The most motivated of all motivated sellers
Tax delinquent property is the only type of real estate situation that consistently provides truly motivated sellers. In my experience, tax delinquent property owners are the most motivated of all motivated sellers.
Coach Mitch’s “Ridiculously Simple System…”consistently puts you in front of desperate sellers with the tools to succeed.
See Coach Mitch’s “Ridiculously Simple System…” for details.
Be kind,
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