What Scares Investors? Part 3 of 3

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Didn’t we get into this business so we could make money? There’s lots of businesses we can make money with. I’m in this business because I get to help people. I get to help people solve problems with their properties. I get to help people who don’t think they might ever own a home, get to own a home. I provide quality housing for people. I’m a professional home buyer and with my PHP certification.

So, when I start walking up a driveway or I get ready to get on the phone or I answer a phone, I recognize that my mission is to be helpful and helping people is a good thing.

You want an example of how fear disappears when you are focused on helping people? Imagine if I saw a little kid in the street about to get hit by a car. Trouble is, I just jumped out of the shower and I’m wrapped in a towel. If I go running out like a maniac, I will certainly look foolish. God forbid there’s a strong wind. I would really look foolish.

But, what’s more important? My focus is on helping the kid, not worrying about me. Well, it’s the same thing when we’re dealing with a seller. We’re trying to help somebody that’s got a problem.

Seek to solve those problems and if you do that, you can provide some benefits. One is peace of mind. It’s one of our primary products. The other is debt relief. If somebody was just transferred and they’re worrying about the fact that it’s going to take six to nine months to sell their home and you can solve their problem right now, they might sleep a lot better. If somebody’s in foreclosure and worried about ruining the rest of their credit and you can put a deal together that stops the foreclosure and helps them move on with their life, you’ve provided them debt relief, haven’t you?

How bad are those goals? How bad are those missions? We provide solutions. That’s what we do and when you think of yourself as a solution provider, you’re going to have a very different attitude on those fear issues. When I start thinking of you, I’m not nearly as afraid as when I’m thinking about me and what you might think of me and at the end of the day, by me not being afraid, I’m putting the onus on you.

I’m here to help you. You can accept or reject my help. It’s not me you’re rejecting. It’s the help I offer you. It’s the help I offer you that is being judged. It’s not me and when you can kind of separate that, you have a totally different mental picture and you can hear people say “no” all day long.

There’s a story about Robert Allen. He’s the guy that started with the book No Money Down back in the early ‘80s. In one very famous account, Allen gets dropped off somewhere in California with $100. He goes and buys a roll of quarters and the newspaper and he sits there dialing for dollars. He ends up buying some real estate before he gets to the end of his roll of quarters.

On that first deal, he only made about $5,000, but let’s say instead of making 40 calls he made 50. That’s an average of 100 a phone call, is it not? Since then every time somebody says no, he says, “Great. I made another $100,” because there’s only so many “no’s” between a “yes.” So, every time you hear a no, there’s a “yes” getting closer and that’s important to understand.

Too many people take this business personally. This is not a hobby. It’s not a crusade. It’s a business. Now, do you think if you go to Macy’s and look at something that’s on sale and choose not to buy it, they’re offended? It’s business. Yes, they’d like you to buy it. I’d like to buy somebody’s house. I’d like to sell somebody a house, but if they don’t buy it or sell it, it’s not the end of the world. Remember this expression, SW-SW-SW-SW. That stands for: Some will. Some won’t. So what? Someone’s waiting.

In Part 1, we looked at what causes fear. And in Part 2, we examined the fear of being judged, rejected, and abandoned. What did you think of our 3-part series on “What Scares Investors”? Let us know in the comment box below!

Did you find this article helpful? Imagine getting to learn nuggets like this from the very mentors and experts I personally contact when I have questions…in person! Now you can have access to my “little black book” too, at the REI Rainmaker Retreat. It’s a live 2-day event held in Orlando, and our next one is coming up on April 2-3. Have you reserved your spot yet? If you haven’t, what are you waiting for?

Each of our instructors are carefully hand-picked and vetted by myself personally, and they are committed to your success. We’ve signed an agreement with them to ensure that 90% of their time with you will be all-content. Unlike most presentations that are only 90 minutes long, each of our speakers will spend a full half-day with you in person! To learn more about the event and reserve your seat (while they’re still available) go to http://www.reirainmaker.com, and enter coupon code “CREIG” (to get a special $300 discount just for my faithful blog followers). See you there!

CLICK HERE to learn more about the REI Rainmaker Retreat

What Scares Investors? Part 2 of 3

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Another fear, and one I experienced during childhood, was fear of being judged. I grew up in one those households where if you brought home a 98, the only question that was asked was, “Did anybody get 100?” The 98 I got right wasn’t nearly as important as the two I got wrong.

Fear of being judged is a real thing and if we get judged and we’re judged harshly, that’s going to cause emotional pain or embarrassment. Most of us are afraid of emotional pain. “Wow, if I suffer emotional pain because I was judged harshly, I’m going to be embarrassed. People are going to know and then they’re going to abandon me. Gosh, I’m afraid. I don’t want to be abandoned.” Isn’t abandonment just another word for rejection?

If we get rejected and feel abandoned, what happens? We kind of clam up and we’re afraid to express our true feelings about things. We have a fear of becoming intimate. Letting people know our inner secrets. Letting people know who we really are and that’s a problem.

I’ve really learned that when you’re open, you’re not only open to giving, but you’re open to receiving. I kind of visualized it from the perspective of a little kid and they grab a toy and go, “Mine.” You ever see them do that? Mine! Mine! And, they hold it in. Well, the big problem with that is if you had another bag full of toys, they’re can’t get without letting go of what they have. They couldn’t take another toy. But if they have their arms open, they can get all that can be given to them and we’ve got to remember that too.

Another fear investors encounter is fear of the unknown. Not knowing what could happen is a very significant fear. A good story to illustrate is the one about the farmer’s daughter. Not THAT one about the farmer’s daughter. In this one, she is married to this fellow Hans and they live with her mom and dad on the farm. Hans is out hunting one day and the daughter comes home to find an ax stuck in the beam over the hearth. Right away she begins to fret.

What happens if Hans comes home and the ax loosens and falls? Hans could be hit on the head and killed. The young woman thinks of how she would be destitute. “I’d be desolate. I’d be lost without him,” she thinks.

With that, the girl’s mom comes in from milking the cow. She asks her daughter what is the matter. The daughter explains, “The ax is in the beam. Hans could come home from hunting, it could fall and hit him in the head and kill him and then where would we be? No food and I’d be all alone.”

The mother joins the daughter in her despair. The two of them are sitting there in front of the fireplace crying their eyes out when the father comes in from gathering the eggs. He asks the women what’s wrong and they tell him the story. “The ax, Hans could come home. It could fall. It could hit him in the head.” They’re so worried. They’re fretting over this whole thing.

Hans walks in 10 minutes later and sees the three of them there crying like lunatics. “What’s wrong? What is going on?” His wife tells him, “Darling, that ax is in the beam. You could go over by the hearth. It could fall out of the beam and hit you in the head and kill you. We’d be lost without you.”

Hans replies, “You people are sick,” and he grabs the ax and yanks it out and throws it in the corner.

Instead of taking action, they all worried about what might happen. Fear of the unknown paralyzed them. So many investors are like that goofy family. They worry about what might happen. Will I be a failure? Will I be a success? Will I be rejected? Will I be abandoned? Will I look foolish? God, don’t judge me because if you judge me and don’t like me, I’m going to feel bad, but what would happen if you did happen to be successful and you did make a ton of money and you changed your life. How bad would that be?

In Part 1, we looked at what causes fear. And in Part 3, we’ll examine what investors can do to overcome the “fear monster”.

In Part 2, we’ll take a look a fear of being judged, rejected, and abandoned. And in Part 3, we’ll examine what investors can do to overcome the “fear monster”.

Did you find this article helpful? Imagine getting to learn nuggets like this from the very mentors and experts I personally contact when I have questions…in person! Now you can have access to my “little black book” too, at the REI Rainmaker Retreat. It’s a live 2-day event held in Orlando, and our next one is coming up on April 2-3. Have you reserved your spot yet? If you haven’t, what are you waiting for?

Each of our instructors are carefully hand-picked and vetted by myself personally, and they are committed to your success. We’ve signed an agreement with them to ensure that 90% of their time with you will be all-content. Unlike most presentations that are only 90 minutes long, each of our speakers will spend a full half-day with you in person! To learn more about the event and reserve your seat (while they’re still available) go to http://www.reirainmaker.com, and enter coupon code “CREIG” (to get a special $300 discount just for my faithful blog followers). See you there!

CLICK HERE to learn more about the REI Rainmaker Retreat

What Scares Investors? Part 1 of 3

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What are the reasons that investors advertise? You may say to get leads, find sellers, find buyers, or to market yourself. Those are all good reasons, but the main reason an investor advertises is to get the phone to ring. Until it rings, we don’t know if there’s anybody out there in the world and until we answer it we don’t know if we have a buyer or a seller or whatever else.

Let’s imagine that your advertising is successful and the phone rings. What happens now? Don’t say, “panic.” The information in this blog series is designed to help get you over that hurdle today that there shouldn’t be any fear when they call.

So many new investors will put money into advertising. They’ll setup their office. They’ll print business cards. They’ll run ads. That phone will ring. They’ll look at a strange number on their caller ID and say, “I’m letting it go to voicemail.” If you sit down and figure the average cost of a quality lead, it might be $1,000, but if you figure the average transaction should net about $27,000, how many times would you spend $1,000 to make $20,000 or more?

I would try to do it as often as I could, but the problem is there’s a disconnect because the phone rings. Whatever will I say? Am I going to sound like an idiot? I hope not, but maybe I let it go to voicemail, that way I can kind of prepare myself and once I’m prepared, I’ll call them back and find out that Tom already bought the house or that some other investor already closed the deal.

You need to be ready to respond. Preparation meeting opportunity creates success. Very simple formula and it really works.

Do you have fear? What kinds of things make you nervous or afraid, especially in this business? Fear, as an acronym, is really false evidence appearing real. Fear is one of those things that has been around for a really long time. It’s a very ancient and universal reaction. Every culture experiences fear. If you think about it, the fear mechanism is built into each one of us.

I think I’d more accurately define fear as a sensation of danger. I’ve been involved in many, many, real estate transactions and I’ve known people involved in many, many more and I have yet to find the fatal transaction. I don’t believe anyone has ever died from doing a real estate deal.

Now, my wife said I could be the first, but it’s not because of fear or the sense of something ominous. Have you ever felt that something bad is about to happen? What bad thing could happen in our business? Somebody says, “No?” That’s probably the worst thing that can happen.

This fear is usually accompanied by a host of physical symptoms and those can be really disturbing. They say the greatest fear in the world, often ahead of dying, is public speaking. Even today, I can get a few butterflies before getting up in front of a group, but I look at it from the perspective of what’s the worst that can happen. You can laugh at me. You can laugh with me or you can go” boo”. I think I’ll survive. It took me many, many years to realize that mom was right. Sticks and stones break your bones, but words, not a big deal.

When fear isn’t justified by danger or a threat, or by any kind of rational cause—and you find yourself avoiding something because of that fear—that’s called a phobia.

If you consider all the investors you will meet, you will see a great many of them go to classes and focus groups. They join organizations and buy products and setup LLCs and learn all about land trusts. But they never do a deal because they have success-a-phobia. It’s out there. Believe it or not. People are afraid of failure and rejection, but they are also afraid of success. They are afraid someone might actually say “yes.”

In Part 2, we’ll take a look a fear of being judged, rejected, and abandoned. And in Part 3, we’ll examine what investors can do to overcome the “fear monster”.

Did you find this article helpful? Imagine getting to learn nuggets like this from the very mentors and experts I personally contact when I have questions…in person! Now you can have access to my “little black book” too, at the REI Rainmaker Retreat. It’s a live 2-day event held in Orlando, and our next one is coming up on April 2-3. Have you reserved your spot yet? If you haven’t, what are you waiting for?

Each of our instructors are carefully hand-picked and vetted by myself personally, and they are committed to your success. We’ve signed an agreement with them to ensure that 90% of their time with you will be all-content. Unlike most presentations that are only 90 minutes long, each of our speakers will spend a full half-day with you in person! To learn more about the event and reserve your seat (while they’re still available) go to http://www.reirainmaker.com, and enter coupon code “CREIG” (to get a special $300 discount just for my faithful blog followers). See you there!

CLICK HERE to learn more about the REI Rainmaker Retreat

Foreclosure freeze holds open door of opportunity

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Three major banks are freezing foreclosures, and in turn, are giving distressed homeowners extra time (often months) to remain in their homes and stall the process of being removed from their home.

However, this new development also is threatening to gridlock already fragile home sales in a fragile market.

REOs (“Real Estate Owned”) properties comprise nearly 40% in the Florida market, and actions taken by Bank of America, GMAC, and JP Morgan Chase could prove to be a major blow to this battle-hardened segment of the residential real estate market.

Right now, REOs are one of the few types of property that is selling. As this process gets slowed, the housing recovery will further be delayed. However, for investors, there is a small silver lining. The window of opportunity to continue picking up deals at historically low prices will be extended. For investors getting started, that means more time to learn the ropes. And for experienced investors, it’s simply more time to do what they already know is working.

As reports of foreclosure sales that are being stopped in their tracks before closing, buyers are being shut out as the banks try to resolve issues brought on by “robo-signers” and unverified paperwork.

Many banks have put the brakes on foreclosure proceedings after it was discovered that personnel had been signing thousands of legal documents monthly without verifying case details. These documents contained critical details to each property, such as the amount owed and owner of record. The fallout from this discovery has opened the floodgates, with people nationwide asking if the paperwork is tainted by forgery and fraud.

There is no definitive consensus on when this issue will be cleared up. As it plays out, a slowdown in the bargain basement prices from bank-owned properties will further depress existing home sales. And so one of the hottest techniques in real estate investing now runs the risk of going cold.

So, what’s the best way to proceed in the face of the unknown? Educate yourself. This fiasco sheds light on why it’s so important to stay up-to-date on industry issues. Things can change at any time, and the successful investor is always prepared to change directions to move with market conditions.

This is why I emphasize “transaction engineering”. Once you have the tools and confidence to work directly with homeowners and craft creative solutions, you hold the key to your own destiny. When the banks falter, you can keep going. When the market changes, you can be excited to take advantage of new opportunities. Most importantly, you get the staying power to remain in the business and build a portfolio for the long-term.

Are you prepared for anything the market can throw at you? If not, take a step in the right direction and learn how to successfully invest without bank interference by “becoming your own bank!”. On October 23-24, I’m hosting the REI Rainmaker Retreat, an event focusing on alternative financing where you can learn how to succeed in a troubled economy. You’ll learn how to leverage creative financing, notes, seller financing, subject-to, and more.

The window of opportunity for great deals has been extended, but it won’t last forever. It’s time to take control of your future, and I hope you’ll join us.

Building Wealth – Episode 6.2 – Planning for Effectiveness

Leverage Your Time

Establishing a routine can increse your effectiveness, reduce anxiety and put you on the road to freedom!  Once you know where you want to go, you can create a map to get you there.  The fuel for the journey is time so don’t waste it!

Decide what block of time you’re going to set for your communications (email, phone calls, etc.), your education, your marketing, etc. Once you start living by your schedule, it will become second nature and you’ll see that you get much more done with your time and elevate your effectiveness to a whole new level!

To your success…

Augie

Building Wealth – Episode 6.1 – Planning For Effectiveness

Super Size Your Results

Want to know how to maximize your effectiveness in 6 simple steps?  Planning to be successful demands effective execution. Without it there’s little productivity and that’s where the results are!

Step 1  Establish goals for daily, weekly, monthly, annual results.  These goals become destinations.  Once you know your destination,  you can design a system or a roadmap to guide you on the path to obtain your goals.  Simply set and organize your  tasks to establish an effective pattern and then take action.  Once you do this on a regular basis, watch the changes unfold!