Читать книгу How to Do Everything Wrong In Real Estate and Still Be Successful - Franklin Cruz - Страница 6

Realtor®/Real Estate Agent: A realtor is trained and licensed to assist people with the purchase and/or sale of properties. As a point of interest, I attended a real estate agent school and they mostly taught me what not to do in real estate transactions. They teach the rules without explaining how to be creative with contracts and assigning (wholesaling) properties. There are many more ways to make money in real estate than being a taxi service for someone. Your realtor should be willing to be creative. If he or she is not, find somebody who is. Remember, a realtor is not an investor - so if you want to learn how to be investor, don’t be realtor!

“A Real Estate Guru once told me the MLS (the Multiple List Service where Realtors place properties for sale) is called the BOOK OF PRAYERS because everyone is praying their property sells!”

“Always remember that every transaction is different!”

Ask the following questions of any realtor you are considering hiring. You must be strong, and to the point. This can make you a lot of money. Conversely, not asking the right questions you can lose lots of money.

How long have you been a realtor?

Are you a part of the local Realtor Association in your area?

What events or meetings do you regularly attend?

What percentage do you make on commissions?

Is your fee on top of my price?

Do you work your fee into the sales price?

If I gave you more than one property would you give me a discount, and if so how much?

If I only want your services to put my property on the MLS how much is your fee?

Mortgage Broker: A Mortgage Broker is someone who sells a loan to you and other lenders. The first step in the process is called Packaging. This is the procedure of getting all the proper documentation into one packet and forwarding it to a lender who in turn approves the loan amount you are requesting. From there, the broker works with the loan processor to meet all the specifications the lender requires in order to give you the loan. Once all those requirements are met (and they can vary by lender) you will close on the loan.

The mortgage broker’s experience in closing loans is important. New brokers will not be as savvy, and will usually not be able to respond rapidly to provide both you and the lender with solutions, answers, and essential paperwork. It can break a deal if the broker can’t close it fast enough, so make sure the one you choose has a turn-around time which works within the constraints of your contract.

“Remember: Focused ‘Go Getters’ are the key to every Power Team!”

→ The best deals are usually the ones which close in seven to fifteen days. Fast deals are best because more often or not the seller is desperate and just wants out. It’s emotional, and all he wants is for the pain to go away. I know, because I have been there. I have been through a foreclosure, and if someone had said “Here is a million dollars” I would have probably sold even though the group of properties was worth $2.5 million. People don't like stress. The faster you get these transactions completed, the better it is for both parties.

“Try to look for ‘Win – Win’ situations where everyone benefits.”

→ You need to stay on top of the points. Points are how a mortgage broker gets paid, and each one is equivalent to 1% of the loan amount. This is very important, because if the broker charges too many, he is taking equity out of your pocket. The norm is two to four points, meaning two to four percent of your deal.

→ You need to become well schooled in looking for hidden fees. Study and familiarize yourself with a ‘HUD.’ There are many itemized fees there for you to review before a closing. Sometimes a processor will put a fee separate from the mortgage broker’s on the closing documents to the tune of an extra two to three thousand dollars (a processor’s fee can range from $750-$1500) even though the processor is working directly with the mortgage broker. This is just another way to squeeze more money out of you.

→ If a mortgage broker tries to charge you an application fee just say, “Thanks, but no thanks.” There are many mortgage brokers who need the work and will do the job without charging such a fee. Ask them for all of their fees in writing so you can compare them to other brokers you are considering.

→ Most important of all: Do not let them pull your credit until you know this is the broker you want to do business with. Keep in mind, every lender will need to pull your credit. A good credit score will mean the difference between saving five hundred dollars to ten thousand dollars. It is always a good idea to maintain a copy of your updated credit report. Sign up for a service, or personally request a copy from the credit bureau.

Questions to ask:

How long have you been a mortgage broker?

What is your turn-around time on this loan or loan period?

How many points do you charge (front and back end)?

Are there any hidden fees?

Have you ever invested before?

How many lenders are you connected with?

What types of programs are available?

May I have the names and addresses of your last five transactions?

“Treat people the way you want to be treated!”

Title Company: This is where your deal will close. You need a good one, because they will order your survey and make sure your deal is closing properly. Your title company must have your best interests in mind when closing a transaction – so you need one you can really trust. Title companies are usually run by a law firm, and charge approximately 1% of the contract sales price. On the HUD statement it will itemize all costs incurred, including title insurance. If you plan on being a real estate investor who does more than one transaction a year, this is where relationships come into play. You’ll soon see the mortgage broker has his favorite title company. Why? Because that title company will break their back to make sure deals close!

“Which would you rather have protecting your investments - a Pit Bull, or a little Chihuahua?”

I would rather have a pit bull that goes for the jugular. You need one, because they are tenacious. Your team will work together because no one cares about your property more than people who stand to make a profit from it.

Questions to ask:

How long have you been in the business?

How many deals do you close in a month on average?

Will you come to my home to close?

What is your turn around once you receive a request for title?

Appraiser: The person who sets the value of a property. The best way to find a good appraiser is through referrals. The real estate agent or mortgage broker will often have a list of appraisers you can interview. You can also ask around to see who other people use.

Questions to ask:

Can you tell me some of the properties you have appraised?

How many comps would you provide for a property I’m considering buying?

How wide is the range of comps you provide and how relevant are the neighborhoods you are comping compared to the property I’m considering?

What is your turn around time?

Real Estate Attorney: A good real estate attorney is invaluable. Keep in mind that you are operating as a real estate investor, and having contracts written up which can be worth a million dollars or more. Getting a real estate attorney to look them over to make sure you are not walking into a lion’s den can save you untold trouble and profit down the road. Simply trusting that contracts are well written, and that you are doing business with honest people, is not the way to ensure your profit margins remain high. An attorney may find an error which could cost you thousands of dollars, and it is crucial for such mistakes to be found in the contract development or negotiation phase. Be smart and protect yourself!

Talk to your attorney, ask questions, and learn. You are paying him by the hour, so absorb as much knowledge as possible. Remember, they are charging you!

Contractor and Subs: More than likely some of the properties you will purchase will be distressed or in need of repair, and as a result you might need a contractor and various subcontractors. Do not hire your uncle (or some other relative) because he said he could lay tile! Hire licensed people and ask for referrals. Get pictures and addresses of homes they have worked on. These are the people you are depending on to pull the permits you need, properly follow building codes, and repair the property you have just bought. Their skill, knowledge, and expertise will have a lot to do with your profit. Choose them wisely!

“Do not hire your uncle (or some other relative) because he said he could lay tile!”

Contractors are also good property inspectors. Having a general contractor inspect your property prior to putting a deal under contract or during the due diligence period (the time usually given to research a property prior to assuming financing or closing) is crucial.

Questions to ask:

Can I get pictures of places that you’ve worked on?

What are the addresses of some of the homes you’ve recently completed?

Can you give me a list of referrals I can contact?

Copy of license and insurance?

“All Contractors are good at FIRST, so stay after them!”

Wholesaler (‘bird dog’): Someone who specializes in finding deals. That is all they do: find deals such as foreclosures or quick sales and put them together. You will want to learn how to be a wholesaler/bird dog because if you can cut out the middle man it will result in more profit. Learn all the tricks of this trade. If you master it you can make any deal a great deal - but remember, sometimes you will ‘pay’ for this experience by making mistakes!

How do you find a wholesaler? If you see signs which say, “We buy houses!” or “Stop Foreclosures” etc., call the number because you’ve just found one! Look in the newspapers for people buying foreclosures as well. As you continue in the business you will find more and more wholesalers, and not always from a sign or newspaper ad. Usually, you will be referred.

Just remember this single-most important bit of advice: Don't trust anyone! They are trying to make money just like you are. Find out their track record. Ask questions, and go with your gut!

Questions to ask:

How many houses/properties have you bought/sold in the past month?

How many houses/properties have you bought/sold in the past year?

Can you give me a list of referrals I can contact?

What do you charge for assignments or properties you have found? Is it a percentage, or a flat fee?

Are you dealing directly with the principal of the property?

Real Estate Mentor: The key to your future! Without a mentor, you are nothing. If you don’t have a guide through the forest, the lions and tigers will eat you. Remember, in a multitude of counsel there is wisdom. The blind leading the blind never located the pot of gold. To find your pot of gold you need to be led by someone who can see. A visionary just like you! You just know when you have found your mentor. There isn’t a set formula, or even a certain set of questions to ask. You make a connection on a spiritual as well as a business level. This is a person who is willing to help you succeed – provided you work for it. Your mentor will normally be someone who has been in the business for a long time. You can't buy their time… or can you?

“Remember, in a multitude of counsel there is wisdom!”

In a way, you can. I have bought books from all my ‘distance mentors.’ You know them: Donald Trump, Zig Ziglar, Sam Zell, Tom Barrack, and a couple of others. I would be willing to work for and learn from them for free, because I believe knowledge is more important than twenty dollars an hour. What I gained from my mentor has made me a small fortune thus far.

As I said, you’ll know your mentor when you find him. He is the one who wants you to succeed, and he'll help you take a step forward - but you have to show you’re serious by moving and pushing and crawling forward. Then kick down the door!

Here’s my own story of working with mentors and how they helped me recognize knowledge does not come without a price, and that it is sweeter when you are willing to work to get it. Pay the price physically and financially, and remember nothing is free. When I started in this business I was no different from so many others who wanted to step into real estate investing. I watched an infomercial, and thought the free seminar it offered was just the thing! Off I went to check out the “free” seminar, and after spending 2500 dollars was ready and willing to become an investor! As you probably already know, my first big leap produced a sour deal. You see, a seminar and 2500 dollars for a “how to” book and a “guideline” to finding properties simply is not enough to prepare a guy in the military for how to correctly invest in real estate.

I wised up and realized what I really needed was some decent networking with other people in the business - and naturally this was a lesson I learned from another program advertised on TV. Off I went to join the club mentorship program for five hundred dollars a month, which is a healthy bit of cash for someone subsisting on Army Sergeant’s pay.

After five months in the program and another 2500 dollars wasted… I mean” invested…” I truly changed gears. The mentorship clubbing approach hadn’t made me any smarter, and so many of the questions I had when I started the program were left unanswered - but some good did come of it. I made connections with people in and around the club program who knew of people who had mentored others.

That paid off. I met five men in the business, all of whom were willing to teach me in exchange for my willingness to work with and for them. I’ll call them “David, Noah, Moses, Sampson, and Solomon.” There was no pay in the form of cash from any of them, but I have used the knowledge gained to build my net worth ever since. Most people would have chosen one of the five, but I wanted to learn as much as I could from as many different perspectives as possible.

This is the way I did it: I woke up at 3:30 AM to go my “day job” on base, worked until 1:30 PM, and then worked for one of my mentors from 3 PM until 10 PM Monday thru Saturday. One mentor in particular took an interest in me, and I worked for him even though he had a bad reputation in the area.

I considered even this to be something I had to understand. What gives one a bad reputation, and how valid is the label? I had to find out for myself. I learned all of the in real estate trades through these guys. I worked with a mortgage brokerage, a title company, a real estate attorney, a real estate appraiser, and a real estate broker. During my mentoring stage I learned so much and pushed myself to learn something new every single day. I truly believe that is what makes you a player. It is the only way to truly become successful. Long story short - you have to pay your dues! To sum it all up, a “free seminar” fits into the category of “anything which sounds too good to be true is usually NOT! Save your money, find a mentor, and be willing to pay your dues while you learn the ropes. You will never regret it.

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