Thankful Investor – John Martinez

 

Hey, welcome back for another segment! This is the 3rd and final segment that I wanted to share with you from my recent live event called the Thankful Real Estate Investor. We hosted this live right before Thanksgiving and it was an interactive event. Our 3rd speaker is Mr. John Martinez, the top real estate investor sales trainer! Let’s get started!

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Resources and Links from this show:

  • Investor Fuel Real Estate Mastermind
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  • Investor Machine Real Estate Lead Generation

Listen to the Audio Version of this Episode

FlipNerd Show Transcript:

[00:00:00] Mike: [00:00:00] Professional real estate investors are a different breed. We’re not afraid to go all in and take educated risks to build stronger businesses and help our families live better lives.

This is the FlipNerd professional real estate investor show. And I’m your host Mike Hambright each week. I host a new episode live and bring you America’s top real estate investors as guests.

Let’s start today’s show. Hey everybody. Welcome back for another segment. This is the. The third segment of three that I wanted to share with you from my recent live events called the thankful real estate investor. We hosted this live right before Thanksgiving. It was an interactive segment. So, uh, hopefully if you weren’t there, you’ll join us on an upcoming events.

Uh, our third speaker is mr. John Martinez, by the way, I’d love for you to join us at our future live events. We’re going to be doing these several times a month, going forward events like this that are live and interactive, answering your questions in our private. FlipNerd Facebook group. The way you [00:01:00] get access to that group is you go to flipnerd.com/pro event has a hyphen there pro dash event flipnerd.com/pro-event.

Make sure you go there and register. We’ll get you in the group and you can join us if you didn’t this time on our next live and interactive, uh, event. Let’s go ahead and jump in with mr. John Martinez.

I’m going to bring my buddy John Martinez and. John, how are you? You’re a little bit cut off. I think.

John: [00:01:27] Let me adjust the camera here.

Mike: [00:01:30] We want to see your good side.

John: [00:01:34] So you have to just deal with it.

Mike: [00:01:37] Yeah. So how are you? My friend.

John: [00:01:38] I’m good. I’m good. How are you  doing? How are you doing Mike?

Mike: [00:01:41] Good. Good. So as we’re kind of getting started here, I’ll ask a really a couple of things. First is if you guys have questions for John, if you don’t know John.

That’d be kind of unusual. So if you know, John is, and you want to ask some questions about what’s working now from a sales technique standpoint, or an approach of how you handle your leads, start to chat those in I’d love to get to your [00:02:00] questions. In the meantime, John, while we’re waiting on some questions, maybe you can share a little bit about what you’re most thankful about.

We’ve got so much to be thankful for. What would you share that, uh, I know you probably have, might have a long list if we had time to talk about it, but what are one of the things that come to mind that you’re most thankful for?

Uh, my health, uh, man, I turned 40 this year. So it’s funny how I that’s like more and more of a top of mine topic.

Like, uh, every year you get older. So, uh, turning 40 every day. I’m thankful for my health. Uh, thankful for parts of me that don’t hurt when I was picked up. And then, I mean the same with my family. Yeah, me too. My kids and my wife are all healthy. And I think, um, as long as you have that, you can basically basically get through anything else.

So that’s gotta be what I’m most grateful for.

Awesome. Awesome. Well, that’s great. So, so John, while we’re kind of waiting on some more questions, or maybe you could kind of share a little bit about what’s what’s working now, like we’ve been through, I wish we were through the COVID, so I don’t know if we’re through it earlier.

Trevor said we’re kind of. In the middle of this [00:03:00] code. And I’m like, hopefully we’re at the tail end. I don’t know where we’re at, but it’s, it’s changed. The dynamic has a lot of people that are doing stuff virtually now, or certainly vetting more out on the phone than they used to. What are, what are some of the things that are, that are kind of working now that people have had to adapt to over the last six or eight months?

Yeah. So it’s, you know, in sales, what’s worked for forever was having a plan or we call sales process. But I think it’s more important now than ever because we’re not doing as much kind of face to face or belly to belly selling. Um, so a lot of people who could kind of get away with just their wit and their good looks inside of a house and really building rapport that way and going buddy, buddy, and, um, having really good conversations because of, of that ability.

It’s it’s a lot harder to do that on the phone. So you have to start to rely on your plan or your sales process. I think even more now than ever before. Right? Your plan about what I want to accomplish during this call, how do I want it to begin? What do I want to, uh, [00:04:00] what’s the agenda for the middle? How do I want this thing to end?

What will, what will the acceptable outcomes be? Um, you know, if I run up against hidden decision makers, influencers, Pushback resistance. How am I going to deal with that? So I think it’s always, you know, the cornerstone of any good sales organization or sales person is, is process or having a plan. But I just think it’s more important right now than it’s ever been since we’re so disconnected.

Yep. Yep. So we’ve got a question from Matt here. That’s talking about kind of, how are you negotiate remotely? And I think, you know, a lot, like we just talked about a lot of people who have transitioned to doing this over the phone. And you lose some things on the phone, right? You don’t get to see the facial expressions or exactly how they’re living.

You don’t really get any indication of what the house is like by just walking in the front door. Um, maybe, can you maybe share some tips on how to make that transition for those that have had to make that transition that we’re buying at the kitchen table, if you will, to doing more over the phone?

John: [00:04:57] Yeah, I, I can’t so great point.

So usually in [00:05:00] a negotiation, you know, by the time you get there, A negotiation. You’ve got to walk a pretty tight line because you want to negotiate aggressively to get yourself the best deal. But at the same time, you don’t want to put yourself in a position where you, you upset someone or offend them in such a way that you kill your own deal.

Now, when you’re face to face, you can basically just read it. Right. Do you know the body language, the tonality? Um, no one can really hang up on you when they’re face-to-face either. Quit and say, get out of my house now they can, but it’s harder. Right? So in order to do that over the phone, one best practice I found what’s working right now is always assume the worst during the negotiation.

And then I’ll tell you what I mean by that. Um, you’re always safe if you assume the worst, um, uh, in a, in a sales negotiation and when it comes to keeping the conversation going and not offending someone or, or losing rapport. So here’s what I mean by that. Um, if you’re, if you’re making offers, you know, always assume that they’re not going to take it.

So here’s, here’s some examples, [00:06:00] uh, listen, I’d love to offer you a 75,000 for the property, but you know, based on this phone call, I’m guessing that if I offered that and I’m way out of the ballpark. Um, so, so you tell me, am I, am I, am I right? Am I in my way out of there? So just always assuming the worst there, you won’t put your prospect or the seller back on their heels and, and start that kind of confrontational negotiation.

So even as you go through the negotiation and you’re going back and forth, you know, Hey, I think I could offer you more money, but that would require you to, um, help it to clean out a little bit, or certainly shorten the timeframe or commit, uh, you know, within the next 48 hours. And, you know, we haven’t had a chance to think about that.

So I’m not sure if that, you know, the more, the extra money would even be worth, you know, you. Cleaning out a little bit more or painting the living room or getting their old car out of the garage. So I think, um, in order to be safe with negotiations, just err, on the side of caution and what it’ll actually do is it’ll build a, and it’s more amount of rapport.

It’ll [00:07:00] keep the conversation going. It’ll keep you out of that kind of enemy, confrontational battling type of negotiation and extend the conversation. So you can actually get through the negotiation and not end it prematurely.

Mike: [00:07:11] Yep. Good, good. That’s good stuff. So we’ve got another question here. I’m going to, I can’t tell with who the user is, but they’re saying what’s the best way to start a renegotiation or price with sellers.

So I don’t know the context of that, but let’s just say when people are buying virtually more frequently, now that they are, you’re making assumptions on repairs and stuff. And sometimes, you know, you find out that, you know, you told me the kitchen was remodeled, but it turns out is remodeled 20 years ago.

Right. And, uh, that it’s going to cost more. And so I think we all. You know, some people have an approach and I know John believes the same way that I do. You really want to use renegotiate as, as a. As a last defense, like you just really miss something and not this approach of like, well, I’m gonna try to lock it up and then go back and renegotiate.

I think we’re in agreement with how we, how we believe that. Um, but let’s just say we made [00:08:00] our best effort. We put an offer forward, an offer that we thought was good and later we found out we totally missed something or were misled on something. Cause we did it over the phone and we have to renegotiate.

So maybe talk about how to best start to renegotiate a deal with it. Somebody after they’ve agreed to something else.

John: [00:08:17] Yeah. So good question. So it pops up all the time. Um, it just happens. It’s the nature of the business is real estate and buying houses that are in disrepair or, or distressed sellers. Um, it’s going to happen.

So when you do it, you just need to really put yourself in the seller’s shoes when you go into that conversation. So here’s what I mean. We already know. And if you got one with a renegotiation and you’ve agreed to applies, and it might’ve been a tight negotiation to get to the price you originally agreed on.

When you go in and say the deal’s off, or I need even less, you have to understand how they’re going to feel. They’re going to be a little bit shocked. Um, they’re going to probably be a little upset and disappointed. And so as you go into the negotiation, first and foremost, you have to [00:09:00] realize what that will do.

If it’s with a seller it’s going to, they’re going to react the same way as is Mike, or I would react if we got upset or maybe even, you know, in that situation, you might even feel like you’re taking advantage of, or someone trying to pull one over on ya. Um, so you’ve got to realize that that’s going to be met with some type of resistance.

And now resistance in sales really shows itself in two ways. It’s either it’s kind of a fight or flight, right? If you get upset or you feel like you’re being taken advantage of, you’re either going to just shut it down and say fine, it’s off whatever. And I’m sure people have experienced that, right. They go in with the renegotiation and they just say, well, deal’s off.

No. Uh, or if there’s going to be a tremendous amount of pushback aggression, right. Um, get into a, uh, you know, a yelling confrontation or something like that. And that neither of those is going to lead to a smooth negotiation. I think we can agree on that. Right. If they’re shutting it down or, or getting pretty aggressive.

That’s not where you want to start off. So first and foremost, you got to know where your prospect’s mind is going to [00:10:00] be an address mindset first, before you get into the nego renegotiation. So knowing they’re upset, I’m just going to be open and honest and say, listen, I’ve got some bad news. I’m really reluctant to even bring it to you.

I feel like a schmuck because I know I’m going to rain on your parade today. Um, but I’ve, I’ve exhausted every option looking into this, and then we’ve got to have a really tough conversation and I want to let you know, I apologize up front because, um, it’s not going to be a fun one. Right. Uh, so if you see what I saw there, I just, I called the situation what it was.

Um, I took the temperature down using what we call tactical empathy in our sales training. Bye I’m going not okay. Just kind of, you know, going down and, and feeling bad cause you’re about to give bad news and that’s what a normal human being would do. Right. Um, and there’s some science behind it, but anyways, that’s it.

You want to go into it smoothly. And then, uh, I’m going to borrow from the last tip I gave, um, about negotiating over the phone. We want to, we want to come at it from a position where we’re [00:11:00] assuming the worst. So when I renegotiate, I started out just like I said, on the call, and then I’d say, listen, I, there’s no way I can pay 110 grand for the house.

It’s just based on what we found and everything going on. I, I can’t do it and I feel horrible about it, but I assume that if I had to pay even a dollar less, you don’t want to do it. And then just be quiet. Now, the reason why I didn’t say the number that I actually need is we feel tested this quite a bit.

And we found that we just say, you probably don’t want to sell at this point, or I’m not even sure I could buy at this point. Oftentimes sellers renegotiate down lower than, than what you need. Uh, I, I have countless emails and messages from people who said, I need a 10 K off. I went in with that exact read negotiating strategy.

And they said, well, would you take it if I took 20 K off? Right. And then, okay. Uh, so, so that’s it just know their mindsets slide into it, knowing you’re going to upset them and addressing and being real about it. And, and if it doesn’t [00:12:00] feel good to give bad news and don’t hide it, um, and then kind of go negative and assume that.

They’re not going to consider it or not like it, or you might not be able to get the deal done and then just go silent

Mike: [00:12:11] and see what happens. Yep. Yep. And I think some of it too is if you’re, if you shifted your model to bind more virtually, is there some things you can do to pre-frame that upfront? Like here’s our offer.

If part of your processes, we’re going to have an inspector come out and look what I want to try to give you a price. Now you can kind of pre-frame frame that is, uh, like we’re based on what you’ve told me. You know, here’s what we’ve come up with for repairs. And we’re going to have somebody come out and double check this.

And so you can kind of slip in there that in the event that any of that, that I missed anything here, we’ll find out and I’ll let you know, or right. You can kind of pre-frame them.

John: [00:12:44] Absolutely. Um, you know, that, that was kind of the assumption I was running with. No one likes surprises, prizes, especially bad news surprises.

So covering that upfront is definitely a best practice.

Mike: [00:12:56] Yeah. Good. We got a question here from our buddy John Harker, who [00:13:00] says hello?

John: [00:13:00] Hey John,

Mike: [00:13:01] uh, what do you do when a seller just won’t give you a price and just keeps. Saying look online. I don’t know what he means by that. Like,

John: [00:13:10] yeah. Maybe he’s, he’s referring to Zilla or do your research.

Mike: [00:13:13] They’re kind of celebrates online. They just won’t give you a price. And uh, so talk a little bit about what do you do when they just won’t show you their cards and they’re just waiting for you to give an offer.

John: [00:13:23] Yeah. So there’s a lot of strategies to get the number, but I want to come at this question two different ways.

Um, the first way is, okay, how do we get the number again? You’re probably seeing a pattern here. We’re going to pull back a little bit. Um, there there’s two ways to get it. One is I usually just suggest they don’t know the number cause people like to argue and push back. So one way to ask is. Listen, I’m guessing you don’t even know what you’d even what you’d want for the house we contacted.

You probably haven’t had time to do research, to think about it. That’s one way, another way to do it is to ask about a similar property. Oftentimes people don’t want to talk about themselves, but they’ll talk about their neighbors or a member of house in the [00:14:00] neighborhood. So another way you can ask is, Hey, listen, um, Houses in this neighborhood.

Do you know any that have sold recently? What are they going for? Right. And when you have a hundred K 200, 300 and you can kind of whittle it down from there real simply like really were you expecting to get more or less for yours? And now we’re starting to bracket them in and kind of drilling down on.

I was actually expecting a bit more. Well, why is that? Well, it’s a bigger house. It’s a nicer condition we rehab. So you can start to get to it in that round about way now, now that I gave the two ways that you’ll have more success doing it than just asking straight out, um, kind of some caution I want to throw out there.

Um, Oftentimes, unless you’re qualifying, let’s say this makes sense. If you’re qualifying, let’s say you have a bunch of leads and you want to find that, who am I going to work with? Who am I going to send my acquisitions out to? Who am I going to talk to? Where am I going to spend my time? Then you might be asking that price.

You, it’s a, it’s a level of your qualification. Now, if it’s not a level of your qualification, I’ll want to [00:15:00] caution you on asking what their expectations are, because it actually does more harm than it does. Good. Number one, it could get into your head. Um, I’ve worked with plenty of sales reps. Who’ve gone into sales calls gone.

We’re at two 50 for this house. They want 500 why even go, right? And they’re talking themselves out about, out of even showing up. But then when we show up and we run through the sales process and uncover some things, and sometimes those people actually sell for what they need to, right? No, one’s going to.

Call you up and you say, Hey, what would you like to sell for? And they’d say, Oh, 50% of what I think I could sell it for. That’s insane. Right? So sometimes that can kind of get in your head and stop you from even taking the appointment or really going full force at the appointment. The other negative.

About getting their offer is they’re setting expectations. And whenever you come in under it, cause you will come in under whatever they expect, 99 or 999 out of a thousand times. They’re going to be disappointed. [00:16:00] So, because I don’t want to disappoint them. I want to set expectations. I want to come in instead of saying, what would you like?

I’d like a hundred and me saying, I could give you 50 that’s bad. I’d rather go in and say, I’d love to give you 40, but with this, I think if we did it quickly, I could do 50. So then I’m setting, setting expectations. And then, uh, my comparison, it actually sounds a little sweeter. Um, so, so that’s my take on it.

So be careful asking, asking for asking price only do it. If you need it. Because of mindset and the expectations that sets, and then kind of the psychology that goes along with what’s called price anchoring. It could actually have a negative effect. So if you don’t need that information, you might not want to get it.

Mike: [00:16:36] Yep. Good stuff. Good stuff. So, John, we’ve got a really long question. I don’t want to put up on the screen cause I think it’ll block the whole screen, but effectively says, uh, you know, what kind of techniques are working well with speaking to homeowners or landlords? There’s a lot of trouble landlords out there these days because of all the rents, deferments and all this stuff, um, about.

COVID w on the value of their property versus kind of the future. So I think that there’s a couple of ways [00:17:00] I could translate that. I think, um, you know, there’s a, there’s probably a lot more landlords that are hurting now than there were before. COVID. And then on the other side yeah, for home owners and even, I guess for landlords is property values have gone up pretty substantially during, since COVID started because there’s just very little inventory, so prices have shot up.

So we’re, we’re kind of dealing with this whole COVID mess, but at the same time, knowing that prices just feel kind of artificially high right now because of what’s been going on. And so, uh, that’s like a huge loaded question ultimately, but kind of how do you integrate those things into. Talking about value when you’re talking to a seller.

John: [00:17:39] Yeah. So, uh, interesting questions. Um, we can break those

Mike: [00:17:44] down into a couple of smaller questions if

John: [00:17:45] you don’t know. It’s okay. It’s okay. I’m just thinking through it. So, uh, really I think having that conversation unless it needs to happen is kind of a trap. So I’m going into that question with the premise of, we’re [00:18:00] trying to convince someone that their house is worth a, when they’re trying to convince us that it’s worth B.

Yeah. And if you are in the real estate investment business, that’s, that’s not the conversation you want to be having. That’s a retail conversation, right? Um, that conversation is, is not going to do a lot for you as far as increasing your conversion rates. What you want to do is pivot that value conversation, not the price isn’t worth more because of COVID or is it worth less?

Two, what’s it worth to you right now? Uh, here is what I can offer. Let’s have a conversation about, is it worth even considering that offer? So shifting the conversation is where I’d want to take the answer to that question. If you’re having that conversation of, I think it’s worth 50. Well, I think it’s worth 60.

I think if we’re  that’s not a winning strategy and sales, you have to pivot the conversation. To listen, I’m going to give you an offer and I’m not sure it’s going to be more or less than, than what you were expecting, but let’s chat a little bit about what you want to accomplish. [00:19:00] And, um, so I know how to structure it and make sure I can maximize my offer.

And then you can just figure out at the end of this, Hey, with what I want to accomplish does accepting this offer makes sense or not make sense. And that’d be a pretty easy, easy answer for you. And then I’m shifting the conversation to, you know, what even got you started thinking about selling. Is there a, you know, is it, is it kind of a situation you want to get away from, or is there, do you want to use the money for something else?

Do you want to move across the country? What’s going on? And I want to redefine it and read it and just pivot that conversation to what’s your problem? What do you want to accomplish? And, and I’m going to ultimately give you an offer and then your only decision is in order to accomplish that. Is it going, is it worth it?

Is it worth taking the offer? And doing that you can, you can really stroke a tremendous amount of motivation. You can bring a lot of motivations to surface that your prospect may not have been thinking of. You can understand their situation a lot better. You’re going to build a lot more rapport, their urgency to take action.

The more they talk about their situation is going to increase. So I don’t know if I’m giving the right answer, but, but my answer [00:20:00] is that’s probably the wrong conversation to have, and we need to pivot.

Mike: [00:20:03] Yeah. Don’t look at the underlying issue of COVID it’s just the situation of what you think the value is versus what you can pay.

Right, right. Yeah. Yeah. I think there’s a lot of, there’s a lot of landlords that are hurting. Right. And I mean, there’s, let’s be honest. There’s a lot of landlords that didn’t buy, like. For me, all my rentals were bought at wholesale prices. And in fact, most of them were from many, many years ago. So like prices that are inconceivable now, uh, cause I’m actually older than John.

Uh, I was talking about age earlier, but, um, uh, but I think there’s a lot of landlords that, you know, they bought it off the MLS and they, in their mind, you know, or, or they bought a turnkey property at close to retail value and they never. Thought about like, well, what could go wrong? The house is newly renovated and like things go wrong, you know?

And of course, with, with COVID it’s even, uh, kind of unprecedented in terms of. You know, some States saying you don’t have to pay the rent and all that stuff. It’s just crazy. So I think what you really focus on there is that pain of like, you’re not even getting paid right now. When do you think you’re going to get paid again?

Right.

[00:21:00] John: [00:21:00] The reality of the situation is we all overpay for stuff happily because it’s worth it. Right. And we all take massive losses on things that we have when we sell them, because again, it’s worth it. So just think about any time in your life, where you said, you know what? I probably could have gotten more.

But I’m just thankful it’s over. I’m thankful I got rid of it. Yeah. I know. I overpaid for that, but here’s the opportunity it opens up. I’m glad I did. Right. And you’re excited about overpaying for something. So if you start thinking those terms, that’s how your seller’s thinking, right? It’s not always about getting, you know, fair market value to them.

Is what it actually accomplishes to them, not, not what Zillow says or what your, your, your maximum allowable offer is, or whatever you calculate the ARV to be. It’s, it’s going to be what’s it worth to them. So again, just another way to rephrase my answer is you’ve got to figure out what, moving that property is worth to them and get away from the ARV conversation.

Mike: [00:21:54] Yep. Yep. Well, guys, we’ve got time for a couple more questions, so please chat them in here. Uh, John saw this, [00:22:00] I got a question for you. How do you use, or how can you utilize the end of the year? Beginning of the year kind of phenomenon. Uh, and I’ve always kind of explained it as it’s like a health club.

Like people want to, you know, January 1st, there’s this line in the sand, that’s really just in their mind. And now I want to start the year and lose 40 pounds or whatever. There’s also people that have had. Problem rental property or a house they inherited, or a fixer upper of some sort that they’re like, I don’t want to deal with that next year.

I just want to get rid of it. How do you kind of utilize that in the year? Phenomenon of people wanting to start fresh?

John: [00:22:33] Yeah. I mean, you can use it just like you said. I, I typically don’t care. What time of year. It’s a great time to use scarcity. I can use really use scarcity no matter what time of year it is, but it works really well at this time.

Um, I’ll tell you when I was out, uh, training salespeople and kind of men buying houses coast to coast. Whenever we didn’t get one at the kitchen table, we would drive two blocks away and I would call and say, listen, We could give you a little bit more money if we can walk this up in the [00:23:00] next 60 minutes and we would often lock them up then because that’s scarcity.

So having, having a cutoff, and I think it speaks really to the broader, uh, sales strategy of having an offer expiration or having, uh, making a, no one, no right Treme salespeople out there, 20 acquisition agents and real estate investors, I think because there’s a fear of losing a potential deal. They never make their prospects actually make a decision.

Right? Think about it. Think about it. I’ll continue to follow up with you. And there’s never any cutoff where a decision has to be made. So the prospect never feels a fear of loss, a fear of actually losing the deal. So, um, cause the investors

Mike: [00:23:40] is afraid to say, I’m never going to call you again, right?

John: [00:23:43] Yeah, absolutely.

Uh, so sorry, my Alexa just went on and off. I don’t know what happened to you guys

Mike: [00:23:52] are winding it down. Guys, ask the questions. Cause the lights are going

out

John: [00:23:56] probably in the other room it’s like in it, but yeah, no. [00:24:00] And anyways, I want to just, just go back to that and say, Hey, every time you make an offer, you just word of advice.

You need an exploration, whether it’s by the time I, you know, if it’s not a yes. You know, by the time we wrap up our conversation. Totally cool. It’s no, uh, you know, don’t be a jerk about it. Uh, or Hey, you know, offers you a stand for a week. Obviously I can’t make an offer on a property and let it hang out there for a year.

If things change, my situation will change. Number of houses. I need changes the real estate market’s going to change. So I can, I can let this offer stand for three days, seven days, whatever it is. So you’ll do yourself a favor. If you just start giving a cutoff to when your

Mike: [00:24:34] offer expires. Yeah. Yeah. I remember when I first started this a long time ago now.

Um, and I used to sit there like, how good, how good is the offer for? And I was like, Oh, you know, 30 days. But even then I’d still be interested in buying it. And I was like, well, would I in hindsight, you know, so stupid, what would you do? You’d like, you’d go shop at everywhere in town. And like, I’m like plan B if they need it, which they would never need it.

So then we, then we got better. [00:25:00] Yeah. Awesome. Well, John, what do you think differentiates, let me ask you a question. What differentiates you? You, you’re a member of investor fuel as well. You know, you surround yourself with a lot of amazing people, just like I do for Schwartz, I’ve run in some of the same circles.

What do you think differentiates those that are doing really well at crushing it from those that are good, doing some deals, but kind of just getting by and kind of stuck in the grind. What do you think differentiates those two people from a sales perspective,

John: [00:25:26] from a sales perspective, It’s gonna sound funny, but it’s, uh, getting out of the sales role.

Um, I think the, the more successful people in invest a fuel, um, and, uh, you know, just, just investors in general. Um, even if they’re really good at it, uh, sometimes even if they like it pulling themselves out so they can grow, right. If they can have three acquisition agents that are half as good. Uh, the numbers typically work where you can turn up lead flow and, you know, still, uh, grow them at, uh, in the business.

So I think it’s [00:26:00] getting out of the seal rule so you can focus more on actually growing the business. And I, I train sales people, so I love to train an investor. So I don’t want to talk anyone out of, uh, investors buying houses, but at the same time, getting out of the sales role, hiring others to do it.

Even if they can only do it a fraction as well as you will allow you to focus on the actual and pull the levers that will grow your business and then turn everything off because now you’ve got the bandwidth to handle, increase everything else. So that’s when you can do sales. If you’re an investor business owner, entrepreneur is get out of the sales role and get yourself a couple of people who can do it

Mike: [00:26:36] for you.

Yeah, you can even say that about your whole business. Like we’re we’re in our way, right? I, I just, uh, before today’s event here, I did, uh, I recorded an investor fuel show with clay Rockwood. They’re doing a hundred wholesale deals a year and adding a hundred rental doors a year to their business. They’ve been in business for three years.

These guys are crushing it. And that’s what he said. That’s what he said is like, we just. I’m not the best at [00:27:00] anything that our company has to do. And I just had to get out of the way. And so I can focus on, you know, being the visionary or God forbid living your life. Right.

John: [00:27:09] You know, I’ve, I’ve, I, um, we’ve got one client in York, Pennsylvania.

This guy is probably one of the best natural salespeople I’ve met in my life. Like just, just he’s got it right. He was born with it. Um, that being said he doesn’t train the sales team. Um, he outsources that to, to me. Um, and the reason is, is not because he can’t do it. Um, but he knows his, his focus is spent elsewhere.

Now he’s doing 70 deals a month consistently and half for the last year or so last year. So we’re talking about how do you hit that volume? Um, and he’s not involved in the business that much anymore. So I just wanted to kind of throw that out there. He’s probably one of the best sales people I’ve met in my life.

He’s not selling his, he’s not even training his team, let alone selling the deals or buying the houses that are just positioning him because he knows he needs to [00:28:00] keep stepping up and taking kind of a higher level view of what’s going to grow the business instead of just taking that micro view.

Mike: [00:28:08] Yeah.

Awesome. Well, John, appreciate you spending time with us today. Great. To great to see you. My friend.

John: [00:28:12] Yeah. Good to see you, Mike,

Mike: [00:28:13] have a great Thanksgiving and a, well I’m sure we’ll be talking again soon. Okay. Thanks for joining me. On today’s episode, there are three ways I help successful real estate investors take their businesses and their lives to the next level.

First, if you’re in search of a community of successful real estate investors that help one another, take their businesses to the next level and a life changing community of lifelong friends. Please learn more about my investor fuel real estate mastermind. By visiting investor, fuel.com. If you’d like a cutting edge solution for the very best done for you lead generation on the planet where we’re handling the lead-generation for many of America.

Top real estate [00:29:00] investors. Please learn more@theinvestormachine.com. And lastly, if you’re interested in a free online community of professional real estate investors that isn’t full of spam solicitations and newbie questions, please join my free professional real estate investor Facebook group by visiting flipnerd.com/professional.

 

Source: flipnerd.com

What to Do With a Childhood Savings Bond

savings bond

A savings bond used to be a common gift, though not always a welcome one. Well-meaning relatives gifted savings bonds for your birthday or the holidays. The goal was often to help you pay for college in the future. But for us kids, all we knew was it wasn’t the Pound Puppy or Care Bear we really wanted!

Nowadays 529 plans and other higher-interest earning options have replaced the savings bond. But that doesn’t mean they’ve disappeared. In fact, they may be sitting at the back of your closet right now. But you are cleaning out your closet or your safe deposit box, and now this long-forgotten and unexpected savings bond can help you clean up your finances.

It’s Still Good

That savings bond is still worth something. That’s the good news. Savings bonds gain value over time by earning interest and keep earning interest for 30 years. They pay interest every six months until they mature. So depending on how long it’s been since you cleaned your closet, you may still be making money as you read this. Now there are some steps you have to take to get money in return.

What Type of Savings Bond

There are several kinds of savings bonds. So you much determine which kind you have in your possession. Savings bonds are a contract between you and the federal government. If it’s an old bond from your childhood it is probably either an EE or an I bond. It will be clearly specified in the title which one you have.

EE bonds are similar to savings accounts. Paper bonds used to be sold at half the face value (you paid $50 for a $100 bond) and the interest continued to increase even after the face value is reached, so your $100 savings bond is probably worth more than $100 now. Paper EE bonds are no longer available and digital EE bonds are purchased at face value.

I bonds are similar to EE bonds. The chief difference is that the interest earned on an I bond is determined by a combination of a fixed rate and an inflation rate.  So there is some cost-of-living protection for the bondholder.

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Find Out What It’s Worth

Before you decide to cash in the savings bond, you’ll probably want to know what it’s worth. The interest rates and even the way interest rates are determined have changed over the years so it matters when you got yours. The best way to determine the current value of your savings bond is to use the Treasury Direct website. Whether you want to cash in the bond or continue to let it mature is then up to you.

There are some penalties for cashing in the savings bond early. If you redeem the bond early, you will lose three months’ worth of interest during the first five years. There are no penalties after five years. The earliest you can cash in the bond is after one year. If the bond is more than 30 years old, it has stopped earning interest and you should cash it in.

While you will have to pay federal taxes on your bonds, you do not have to pay state or local income taxes. There are some exemptions – most notably when bonds issued after 1989 are cashed in to pay qualified higher education expenses at an eligible institution.

Visit the Bank

Most banks should be able to help you cash your paper bonds. If they aren’t, they should be able to direct you to a financial institution that can. You will have to prove your identity to cash in your old bonds. You will have to fill out an tax form either when you redeem the bonds or at the end of the year. Your tax preparer should be able to help you with this part of the process.

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  • How Credit Impacts Your Day-to-Day Life

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The post What to Do With a Childhood Savings Bond appeared first on Credit.com.

Source: credit.com

What the Flip? A 1909 Family Home Is Fully Restored and Grabs Top Dollar

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Flipping a house is a lot of work, and can yield a big profit. But not every project is guaranteed to be lucrative. So what’s the key to successfully making over a fixer-upper and selling it for a gain? Our new series “What the Flip?” presents before and after photos to identify the smart construction and design decisions that ultimately helped make a house desirable to buyers.

Oklahoma City is an alluring place for home buyers these days. Its cost of living is low, there are plenty of opportunities for work and play, and you get the pace of city life with the quiet of the country nearby.

With a median listing price of $225,000, Oklahoma City is certainly a place to score a sizable single-family home for a reasonable chunk of cash, but finding an age-old property with good bones is a challenge. So when our flippers stumbled upon this four-bedroom, three-bathroom home from the early 1900s—in one of the city’s most prestigious and historic neighborhoods—they jumped.

Sure, the home wasn’t exactly in great shape, but that’s where the flip comes in. This old home went from drab and dusty to absolutely fabulous. It was purchased in July 2018 for $325,000, and in September 2019 it was sold again, for $642,000. The sellers doubled their money in just over a year—a result that any flipper could hope for.

So what made this such a successful flip? We turned to our experts to uncover the winning design and home improvement moves.

Living room

The living room is often the first space buyers see when they enter the home, so bringing this room up to date was key. The original room felt dark, dirty, and cramped, so the sellers had a big project on their hands.

“Lighting is key to this room,” says Malissa Kelsch, real estate adviser with Red Rock Real Estate. “Removal of window coverings and additional can lights deliver a distinctive sensation of relaxation.”

“They resurfaced the walls, which was a great choice to make the walls feel like new construction,” adds architect and interior designer Alondra Alberti. “The light paint and blond floor stain showcase how large the space actually is.”

But one of the most impactful changes was simply the removal of the accordion doors leading to the kitchen.

“The living room seamlessly flows into the kitchen to make it a perfect home for entertaining,” adds real estate agent Sarah Bernard. “This is the open, bright look that buyers today are demanding in new construction, so to renovate with this in mind makes lots of sense.”

Office

Previously, the home office looks like a strange afterthought. The flip transformed it into a gorgeous, usable room.

“Home offices are one of the most sought-after spaces in our current climate of working and teaching kids remotely,” says Bernard. “The new floor, lighting, and open, sleek modern space with windows make this a strong selling point for busy buyers.”

“The hardwood floors throughout facilitate the visual flow between spaces, creating a more harmonious relationship between the office and the rest of the house,” says Alberti. “I also love the contrast of the black-matte stair raisers and wooden handrails. It provides a sophisticated rustic appeal that a lot of buyers look for in a home.”

Kitchen

“It looked like a sad little kitchen crying in the corner,” Alberti says of the pre-renovation space. But the flip made a huge difference in this all-important room.

“They have repositioned and expanded the kitchen, creating an open concept tied in by a beautiful, massive island that not only provides contrast but also bar seating,” Alberti explains. “They did a great job combining different materials and textures. … It’s a design risk that elevates the home.”

Kelsch says the new kitchen is definitely more appealing to potential buyers.

“Additional usable counter space, storage, and lighting make this a desirable kitchen and a ‘wow’ feature in the home,” she says.

Bathroom

The old bathroom in this home was like a walk back in time, but not in a good way.

“The wallpaper and the top-and-bottom built-in cabinets made the space feel enclosed and restricted,” says Alberti. “The old shower doors are always a must-go—they have had their run for far too long.”

The updated bathroom now feels warm and welcoming.

“The shower wall niche was a particularly nice touch because it provides practicality to the user,” adds Alberti. “Those kinds of details are never overlooked by buyers.”

Bernard agrees: “The new, beautiful bath lets in natural light for the tranquility that homeowners want in their bathrooms,” she says. “The updated shower and more functional and modern vanity feel clean and fresh compared to the original.”

Bedroom

From the gray wall-to-wall carpet to the heavy drapes, can we all just agree that the old bedroom was the stuff of nightmares?

“The new bedroom sheds pounds of darkness that were exhibited in the old carpeting and bulky cabinets,” says Bernard. “The white walls and wonderful new windows are inviting in a room that anyone can envision themselves waking up in. This is a luxury look that buyers in all price ranges desire.”

“This bedroom has had a complete turnaround. The new vaulted ceiling helps make the room feel more spacious, and removing the cabinetry opens up the room,” says Kelsch. “Bringing in as much natural light as possible by taking down dated old drapes and updating furnishings and fixtures will bring top dollar to this house.”

The post What the Flip? A 1909 Family Home Is Fully Restored and Grabs Top Dollar appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

5 Signs You Should Sell Everything and Move

Have you ever felt like the universe is telling you you need a fresh start? Many of us get the urge to scrap everything and start over from time to time, but it can be challenging to know if this is just a fleeting feeling or if it’s meant to be. With that said, there […]

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Source: blog.apartmentsearch.com

See the Small but Pivotal Repairs That Helped This Southwestern Home Grab a Profit

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It doesn’t matter how perfect your home is—if your listing photos don’t stand out, potential buyers won’t come by to take a look. In our series “Lessons From Listing Photos,” we dissect the smart updates sellers have made to their homes, and how their listing pictures highlight the home’s best assets.

Living in Santa Fe, NM, is all about taking advantage of the gorgeous landscape, mild climate, art culture, and a city with just enough activity to keep you busy but not overwhelmed. And the suburbs outside of Santa Fe give you access to all that, plus the ability to own a sizable chunk of land.

Those reasons help explain why this four-bedroom, 3.5-bath house, just 20 minutes from the city center, was purchased in 2014 for $435,000 despite it being a textbook fixer-upper.

The 3,000-square-foot-house is on a 1.17-acre lot in a gated community. It comes with a private pond and walking trails, making it the perfect purchase for a buyer looking to enjoy the culture of the area while still keeping to themselves. Sure the home’s interior was in desperate need of an update, but the buyers saw the potential.

After six years and some stylish yet strategic renovations, the buyers sold the home for about $200,000 more than what they paid. There weren’t many big changes—just cosmetic updates and some nicely staged listing photos. So how did they make a profit? We went straight to our experts to find out what home improvements brought in the buyers.

Living room

The setup in this living room is a little different thanks to an adobe fireplace in the center of the room. In the before photos, it’s easy to see how a potential buyer would be confused by what to do with the main living room space as well as the space behind the fireplace. But a quick cleanup and careful staging helped to illustrate the best use of the space, according to designer Lori Bitter, of Dalia Staging & Design.

“The formal living space feels inviting for entertaining, while the second space feels more intimate for family and TV time,” Bitter says.

Careful design does a lot more than make a room look pretty, though. Bitter points out that the details help to accentuate some of room’s best features.

“The blue accents are a perfect balance for the dark floors and wood on the ceiling,” she says.

“Not a lot changed in this room, but it shows what a big difference a few details can make,” adds designer Mark Cutler, of  Mark Cutler Design. “The new ceiling fan, uncovered windows, and brighter white paint all contribute to a more modern take on Southwestern design.”

Kitchen

An updated, functional kitchen is pretty high on the must-have list for many home buyers, which is why the sellers put a lot of time and effort into this space.

“The new kitchen feels fresh, open, and modern,” says Cutler. He adds that moving the wing wall on the peninsula substantially opens up the space.

“The combination of white tile with the gray cabinetry and updated lighting is so fresh,” she says. “Bringing the backsplash to ceiling with the modern hood is a dramatic touch.”

And while everyone loves a kitchen island, the sellers made the right move in removing the old island; the pine wood was channeling outdated ’90s vibes.

“Replacing the old island with a rustic furniture piece carries the warmth of the wood from the living space into the kitchen and keeps this kitchen feeling cozy,” says Bitter.

Bedroom

When a potential buyer visits a home, there are a few different things they might be looking for in a bedroom space. They might want a room that’s relaxing, maybe even luxurious—but they’re definitely not looking for a bedroom that looks old and dingy. Before the overhaul, this bedroom was full of clunky fixtures like that light fixture and ceiling fan.

But the sellers knew just what to do to lighten this space up.

“A white color palette will always create a room that feels larger and cleaner,” says Cutler. “And removing the window shades allows for more light and expands the view.”

“What a great example of how staging can make a room feel more impressive and larger,” adds Bitter.

Bathroom

Nothing dates a home like a bathroom in major need of an update, so our experts were pleased to see what happened in this space.

“Two main areas changed for the better: the shower tile and the bathroom vanity,” says Cutler. The brown palette of the old shower and the stained-wood details dated the room.

“The bright, white color scheme with bronze accents feels fresh and makes the room, especially the shower, seem larger.” he adds.

“This is a ‘wow’ moment for this home,” says Bitter. “Like the kitchen, the footprint hasn’t changed, but the finish choices [like the new light fixture and sink vanity] open this space up.”

Back patio

The back patio of this home is a terrific example of the power of a good listing photo.

“Outdoor living spaces are coveted today,” says Bitter. “Staging an outdoor dining area shows buyers the possibilities for this valuable additional square footage.”

“Once again it’s about small details that make a large impact,” says Cutler. “Architecturally almost nothing has changed, but the room, with the addition of the seating area, feels larger.”

Cutler also likes the potting area, which gives buyers another example of a creative way to use the space.

The post See the Small but Pivotal Repairs That Helped This Southwestern Home Grab a Profit appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com