What is the difference between a common wage earner and a first generation real estate millionaire?  Why do some people “make it big” while others only dream of success?  Most of the time, “dreamers” fail in their attempts for success because of a combination of poor planning, lack of knowledge, and failure to follow a plan.

Dreamers are like fledgling hikers trying to reach a distant mountain peak.  Although they can see the peak far above the trees, they get turned around and lose their way when they try to reach the summit.  Sadly, most dreamers quickly give up.  Once upon a time I was a dreamer, but I found a way to summit my mountain peak.

I’m not smarter or better than the average person, I just had a map.  My map for success was charted through trial and terror by my father, an enthusiastic real estate entrepreneur.  His map for success consists of three parts: 1) Visualization, 2) Affirmation, and 3) Actualization.

Visualization
The first part of the map is called visualization.  Define in your mind and then on paper, what success means to you.  Are you working towards a $100,000 income, a bigger home, college tuition?  Is your idea of success sustaining your present lifestyle and income level, but without a job?  If so, list your current income as Financial Goal 1 (write it down.)  Feel free to add subsequent goals, for example:

Financial Goal 1—replace my salary with real estate income in 12 months
Financial Goal 2—create a $50,000 cash cushion in 18 months
Financial Goal 3—grow income by 50% in 24 months

Affirmation
The first part of the map involved setting a destination.  Now you must prepare for your journey by affirming a successful attitude.  Your path to wealth will be fraught with obstacles, and in order to reach your destination you must resolve within yourself that success is the only acceptable outcome.  Don’t be naïve, attitude is difficult to adjust, and change is only possible if you believe in yourself.  Financial freedom is entirely up to you.

My students at Investors United School of Real Estate include stock brokers, doctors, programmers, business owners, as well as cash-poor folks like Thurman, a laid-off baker with four children to feed, or Justin, an unemployed 23-year-old with bills to pay.  Many people would say that the cash-poor folks are at a disadvantage, but last month Thurman made over $40,000, and Justin made $32,000!  Why?  These students needed the money so badly that they were forced to believe in success.

Do you believe that success is possible?  Moreover, do you believe that you will succeed?  There is no room for doubt.  Say to yourself, “I will change my life.  I am capable of great things.  I can, I can, I can, I WILL!”  Clear your mind of bills, clear your mind of nay-sayers and negative influences.  Pull up anchor, and believe in your ability.  You can do it.

Actualization
In the previous two steps, you conceived a goal, then affirmed that reaching your goal is possible.  Step three requires action.  Take out a sheet of paper and ask yourself:

What information do I need to accomplish my real estate goals?
Who are the people or groups that I need to work with?
What are the obstacles between me and where I want to be?

Your answers to these questions will form a path of action to reach your financial goals.  Will you make calls to real estate owners?  Search courthouse records?  Contact owners in escheat?  Attend auctions?  Will you educate yourself?  Seek a mentor?

When your written plan of action is complete, make it part of your everyday life.  Success is a result of successful habits.  We all have the same 24 hours; take the opportunity to replace bad habits with successful ones.  Every moment is an opportunity to make a difference.  Turn off the television, eliminate frivolous gossip.  Allocate 15 minutes to one hour to make progress.  When your time is over, stop.  A little effort goes a long way.

Your successful habits are based upon priorities, the mark of a successful lifestyle.  Recently, a friend asked when I plan to replace my old Jeep.  “Would it be more frugal to spend $2,500 in repairs, or $30,000 on a new Jeep?” I questioned.  According to the best-selling study of America’s millionaires, The Millionaire Next Door, most millionaires believe that financial independence is more important than displaying high social status.  Live below your means.

To maintain their motivation, many successful people admit to using a simple technique.  They write their goals on three slips of paper:  one for their purse or wallet, one for their bathroom mirror, and one for their desk or workspace.  I have found this little trick to be an extremely effective reminder to take action.

The difference between dreamers and successful people is the system of visualization, affirmation, and actualization.  Proven and powerful, these steps are a map for success in any endeavor.  Handed down from my father, I used the map to control over four million dollars in real estate before my 23rd birthday!  Using the same  map, many of my students create tens of thousands of dollars (or more) every month.

Seize the opportunity and apply what you’ve learned here.  Even if your goal seems far, far away, use your new map to conquer your mental mountain and summit success!  After his final descent from Mount Everest, one climber was asked how he was able to climb the tallest mountain in the world.  To which he answered, “one step at a time.”

All real estate owners are required to pay property taxes, but most are paying more than their fair share. A few savvy owners, however, are saving thousands by appealing their property taxes. Of the 1% of real estate owners who appeal, more than 80% are successful in having their property taxes reduced.

In Baltimore City, it is especially important to understand the assessment process because tax rates are more than DOUBLE the rates in other counties. For example, in Anne Arundel, Harford or Baltimore County, an owner of a $100,000 property currently pays between $1,200 and $1,500 in taxes each year. In Baltimore City that same house would have a tax bill of $2,400! Here are some important facts you should know about appealing your taxes:

Types of Appeals

Real estate owners have 3 separate opportunities to appeal property taxes:

1. Three Year Assessment Appeal: Every three years the state reassesses (revalues) real estate for the purpose of adjusting taxes. Notices are mailed approximately the last week of December, after which owners have 45 days to begin the appeal process.

2. Petition for Review: If your property is not being reassessed in the current year, you can still appeal your taxes by filing a Petition for Review by December 31 of any year during the three year period. If your appeal is successful, the reduction will remain in place until your property is reassessed in the regular three year cycle.

3. New Purchase Appeal: Owners can also appeal their taxes by filing within the first 60 days after purchasing a property. If you file between January 1 and June 30, the appeal will apply to the tax year beginning that July 1. If you file after June 30, the appeal will be treated as a Petition for Review and will apply to the following tax year.

When to Appeal

The appeal process is prospective, meaning that you must file for the appeal before the taxes are due. Tax bills are sent in July each year and are due September 30. The time to start the appeal for your July tax bill is the previous December or January. Once you have received the tax bill in July, it is too late to appeal the tax for that year.

What to Appeal

After reassessment, the state sets a value on your property called the “New Market Value.” This number should represent the amount for which your property would sell in an arms-length transaction. The New Market Value is then multiplied by the tax rate to determine your property taxes. To appeal the New Market Value, show that the value determined is too high by compiling evidence such as photos, information about comparable properties, repair estimates, etc.) If you are successful, the New Market Value for your property will be reduced, thereby reducing your actual tax bill.

Types of Properties to Appeal

The higher the value of the property, the higher the amount of the taxes, and the more important it is to appeal. Appealing the taxes on your personal residence is not as important as appealing investment property, because of partial protection from large tax increases by the Home Owners Property Tax Credit (a.k.a. the Homestead Credit.)

How to Appeal

You can appeal your property taxes by filing the assessment notice you receive with the State Department of Assessments. You will be granted a hearing wherein you can plead your case. Alternatively, you can hire a professional real property tax reduction specialist to review your situation, handle the appeal process, and fight for your savings. Most property tax reduction experts charge a percentage of the tax reduction if they are successful.

Although all real estate owners must pay taxes, well-informed owners negotiate their tax bill. By diligently following the process of property tax appeal, you too can save thousands. And given the fact that that most appeals are granted, you should never again have to pay more than your fair share.

A well-written real estate contract of sale is like a Picasso. Simple, yet complex. Just as a painting speaks for the artist and conveys meaning to viewers, a real estate contract speaks for the parties and directs agents, the title company, lawyers, and perhaps a judge in a court of law.

The “Skinny Contract” I have been using to control millions of dollars in real estate over the last 30 years is a simple, one-page document. The “standard” Realtor contract of sale is 40 pages intended to protect homeowners, but largely unnecessary scribble-scrabble for use by investors. Though “skinny,” every one of my contract clauses is as deliberate as a brushstroke.

To paint your contract for real estate investment profit, you need to learn the right techniques. You need a palette of clauses to choose from, mastery over every word, and understanding of what each is designed to accomplish. With practice and guidance from a master, your contract of sale can be a valuable work of art – a product of your creativity, your imagination, your motivation, your inspiration. It can be your gateway to equity and cash profit.

As you practice your contract “painting” lessons, consider the clauses that will give you:

• Ability to make 10-20 or more offers a week without running out of money
• Immediate possession without obligation to legal owner
• Rights to sell the property you have under contract before settlement by private treaty or public auction
• Profit sharing with seller without ownership
• Cash back from sellers escrow account
• Settlement delayed for 90-120 banking days with the right to cancel offer without penalty
• Contingency on third party funding
• Ability to have a seller pay you to buy the property
• A front porch clause with immediate donation for the cash down payment from the seller
• “Right of first refusal” to buy up to one year
• Ability to motivate the seller to accept or reject offer on your terms within a limited time period
• Subject-to language that gives buyer rights to create additional profits using discounts
• Ability for you and the seller to take advantage of existing financing
• Guarantees of condition, profitability, seller participation.
• Etc.

A woman strolling down a Paris avenue stopped to have her portrait captured by a street painter named Pablo Picasso. She posed, he painted, and in 15 minutes he was finished. “That will be $5,000,” said the painter. “But it only took you 15 minutes!” she exclaimed. “No, Madame,” said Picasso, “it took me my entire life.”

Master these and the many other real estate investment concepts and investing will become easy, fun, and profitable. With solid lesson plans and competent coaching, you can learn to paint profits beyond your wildest imagination.

Charles Parrish is CEO of Investors United School of Real Estate – America’s 1st and only brick-and-mortar career school dedicated to real estate investing where you can “Earn while you learn.”®

Develop your own “Skinny Contract” by enrolling in Real Estate Contract Engineering online or by contacting Maxine in Admissions. ]]> http://www.investorsunited.com/ask-ian-blog/investing/contracts-works-of-art/feed 0 http://www.investorsunited.com/ask-ian-blog/investing/contracts-works-of-art http://feedproxy.google.com/~r/InvestorsUnitedAskIanBlog/~3/np98G8NpZlg/top-10-ways-to-sell-your-home-yourself-10-effective-real-estate-marketing-strategies http://www.investorsunited.com/ask-ian-blog/investing/top-10-ways-to-sell-your-home-yourself-10-effective-real-estate-marketing-strategies#comments Wed, 16 Dec 2009 01:14:45 +0000 Ian http://www.investorsunited.com/ask-ian-blog/?p=1105

  Today, even time-pressed homeowners can sell their property quickly using simple marketing methods that are often overlooked. With a friendly title company to write up and record the transaction, selling real estate can be fast, easy, and inexpensive.

  Typically, people sell real estate by: 1) hiring an agent, 2) hiring an auctioneer, or 3) selling the property themselves. But more important than who sells the property, is how the property will be marketed best. The key to selling anything is to make the public aware of the opportunity. Consider the following creative marketing methods to best market your properties:

1. Prepare a Flyer
  The first step is to create a detailed flyer about the property. Your flyer should display a picture of the property, its address, your contact information, and all positive attributes and potential benefits. Include specifications such as bedrooms and baths, heating, cooling, plumbing, electric, windows, roof, upgrades, zoning, proximity to landmarks and schools, and any special incentives or warranties. Tape an envelope full of your flyers to the front door and distribute them to potential buyers.

2. Price It to Sell
  Given holding and opportunity costs, there is a time value of money. Instead of waiting for top price, take advantage of the time value of money by establishing a price at or slightly below market. To determine market value, examine recent sale prices of nearby comparable properties. In Maryland, visit www.dat.state.md.us or have a friendly real estate agent pull “comps” for you. Compare your property to others with the same zoning, features, and amenities, then set a price to attract buyers.

3. Use the Internet
  Within seconds, any search engine can locate dozens of For-Sale-by-Owner (FSBO) websites. Log on and chat with potential buyers. For greater exposure, consider listing your real estate on the multiple listing system. Several Internet companies offer inexpensive listing services without the need of an agent.

4. Network with Investors
  Local real estate networking meetings are excellent places to advertise property. Find investment clubs using the Internet. Distribute your flyers and be prepared to announce your opportunity to the group. Selling to an investor does not mean “giving it away;” on the contrary, entrepreneurs can often structure creative transactions to offer you more than expected.

5. Attend Auctions
  Real estate auctions draw crowds of cash buyers, so go where they go. Introduce yourself to bidders, promote your property, and if the auctioneer allows it, distribute your flyer. Consider holding your own auction. Although the allure of bargain property drives the popularity of auctions, competition among bidders often drives prices skyward. Moreover, auction sellers bypass contingencies, commissions, and closing costs. They receive cash in 30-45 days, and can accept or reject the highest bid. You do not need a license to auction your own property, but consider hiring a professional auctioneer registered with the National Auctioneers Association (www.auctioneers.org) such as Auction Brokers.

6. Explore Regionally
  Residential buyers frequently come from the immediate region, so cover your bases with newspaper ads. You can increase response with phrases like “owner financing,” “flexible seller,” or “trades accepted,” but mean it. Also, make your flyer available at regional libraries, places of worship, colleges, hospitals, and businesses.

7. Look Locally
  Given that they are already invested in the area, neighbors are excellent prospects. Be proactive and offer your property to local owners by phone or mail. Affix a “For Sale” sign or banner to the property and use directional signs to attract attention from side-streets.

8. Turn Tenants into Buyers
  Tenants are an untapped source of buyers. To find them, identify absentee-owned property in the public record, then call or knock on those doors and introduce them to the opportunity of home-ownership. A mortgage payment might be less expensive than rent. Refer them to a friendly banker who will help with funding.

9. Accept an Annuity
  Perhaps the best way to induce a sale is to take back financing. Many people would rather pay a little more to you, than deal with mortgage brokers. In the long run, you can sell for a higher price plus an interest profit. In the short run, your annuity can be sold for cash, leveraged as a down payment on other property, or exchanged for value.

10. Hold an Open House Event
  Like auctions, open houses generate competition among buyers. To heighten desire at her luxury open house event, a friend rolled brown paper throughout the house to protect the floors, asked prospects to remove their shoes, and limited the number of buyers allowed in the house to three at one time. After the spectacle, she asked the buyers to write their best offer on a blank page, and allowed only the top three bidders to stay for an impromptu auction. She sold for $130,000 more than expected.

Ian Charles Parrish is a professional real estate investor and founder of Investors United School of Real Estate – America’s 1st and only career school dedicated exclusively to real estate investing. Read Ian’s Blog at InvestorsUnited.com

Learn more creative real estate ideas by taking Real Estate Contract Engineering online or by contacting Maxine in Admissions.

Wonder how Ian might handle an issue you’re facing as an investor or home owner? Click here to Ask Ian your question. ]]> http://www.investorsunited.com/ask-ian-blog/investing/top-10-ways-to-sell-your-home-yourself-10-effective-real-estate-marketing-strategies/feed 0 http://www.investorsunited.com/ask-ian-blog/investing/top-10-ways-to-sell-your-home-yourself-10-effective-real-estate-marketing-strategies http://feedproxy.google.com/~r/InvestorsUnitedAskIanBlog/~3/BriT-XudGuc/the-most-overlooked-secret-to-real-estate-success-have-fun http://www.investorsunited.com/ask-ian-blog/real-estate-mentoring/the-most-overlooked-secret-to-real-estate-success-have-fun#comments Wed, 11 Nov 2009 23:27:45 +0000 Eric http://www.investorsunited.com/ask-ian-blog/?p=1092 In the video below, Charles makes a phone call on behalf of a student who sent out a mailing. Charles makes a successful “trial offer” to negotiate $100,000 off her original asking price, along with some interesting discussion about the…”peculiar” habit of one of her tenants (you’ll have to watch the video).

One of the secrets overlooked by many aspiring and experienced real estate investors is to have fun and to not take anything too seriously, including yourself. If you can make an activity fun, you’ll look forward to it more, put out more positive energy, and have more success!

When the crowd was reluctant to bid, Charles shows why he is known as the “Ben Franklin of Real Estate” by breaking out a new technique he invented: “Bidder Bonus Tme”.

By having an auction company on your team, you can your sell properties quicker with less hassle. If you have questions about the Auction method of marketing call Auction Brokers at 410-426-2622, or take the course “1-2-3 SOLD! How to Profit from Real Estate Auctions” today!

I have been contemplating establishing a Web site for my real estate investment business for the purpose of generating leads for sellers, buyers, and financial partners. I wanted to know if this is something that you do. If so, what has been your experience?

(Aaron Davis; Baltimore, MD)

Hi Aaron,

There are two good reasons to have a Web site for your real estate investing business: Branding and Lead Generation. Let’s take a brief look at how a Web site can best be used for each.

Branding

Like the traditional branding of cattle, a business can be branded so that it is readily identified by consumers. A brand is a singular message communicated by a set of audio and/or visual elements. For example, the NBC peacock and the three simple tones, the “golden arches” and “I’m Lovin’ It” slogan of McDonalds, or BMW’s “blue and white crest and “The Ultimate Driving Machine” slogan.

More than just identifying markings, a brand is an assurance of quality. It tells consumers that you have thought about whom you are and what you do, and that you cared enough to invest time in coordinating your appearance to make a good first impression. Think of your brand as your attire on a first date.

The last brand example above, BMW, also demonstrates a brand differentiation strategy; that is, a leadership position within a given industry. The intent of BMW is to tell the marketplace that no other vehicle drives as well as theirs. Another example, Walmart’s differentiation strategy is the “low cost provider” position. Volkl skis occupy the “high cost/high quality” position in the skiing industry. Head tennis rackets differentiated themselves by the physical size of the racket.

When crafting your brand, first consider your differentiation strategy. What are your values? What do you do best? How are you different and unique? What do you do better than anyone else? What are you offering that nobody else can or does?

All of these questions were at the forefront of my mind when establishing Investors United School of Real Estate. Investors United was the first and only school for real estate investing in the country, so that became our differentiation strategy – “America’s 1st and only brick-and-mortar professional school dedicated to real estate investing.” Another unique attribute of Investors United is the fact that instructors are available to partner with students on actual real estate investments for profit; therefore, I established the slogan “Earn while you learn.”

Once your brand is established, be sure to use it as your calling card when advertising in any of the five media: Grass Roots, Print, Radio, Television, or Internet. Always include your Web site on business cards, in ads, announcements, blogs, e-mails, etc. Even better, give people a reason to visit; e.g. “Take your first real estate investing class at no charge. Find out how at InvestorsUnited.com.”

Lead Generation

In addition to establishing who you are and what makes you unique, your Web site needs to generate leads. It’s simple: you want consumers to understand your brand, and then take action by doing business with you. So, like the Godfather said, “Let’s make them an offer they can’t refuse.”

To craft your irresistible offer, consider first “Who is my target market?” and then, “What message (or messages) will appeal to them?” You are not limited to making just one offer on your Web site. Bait several hooks, but be aware that several advertising studies have shown that fewer choices often result in higher results. The ideal number of offers on your home page is three to four. In exchange for contact information, consider offering a free newsletter, a no-charge consultation, a market analysis for no-fee, etc.

Once your branded Web site is up and your offers are made, be sure to track your results. Which offer pulled most? Which pulled least? And always test new strategies. Failures are the most important part of learning. Find out what does not work, in order to enhance your business and your income.

There is much, much more to the concepts we touched upon here. If you would like to tour of my personal library or sit down with me to chat about real estate investing, feel free to reach me through my Web site: www.InvestorsUnited.com.

Ian Charles Parrish is President of Investors United – America’s 1st and only
brick-and-mortar school for real estate investing. “Earn while you learn.”

Hello Mr. Parrish. I watched the online videos already today! Great Job! I do want to ask one question….as I market toward my motivated sellers….while watching the videos….would it wise to get a toll free number (800, 888, etc) or do you just give out a cell phone number? I have heard also of people getting ”live receptionists” to take calls as well? Thank you, and hope to meet you soon!

Manny Branco

When considering your real estate investment marketing plans – such as which telephone number to use – begin by asking yourself, “What’s my goal?” The goal of giving out a telephone number is to capture prospects. So, what kind of telephone number works best?

The best telephone number is one that will allow you to capture prospects. Prospects who may be intimidated by the thought of reaching a pushy salesperson may prefer to call for a 24-hour recorded message. To cover your bases, consider using both a phone number for a recorded message and one that will be answered by a live person.

Here are some tips to remember when crafting your recorded message (or voicemail):

1. Be professional. State your name, your business, and your message. For example, “Hi, you’ve reached the office of Ian Parrish with the Parrish Family Trust. I look forward to speaking with you about real estate. Please leave your name, the best number to reach you, and the best time to call, and I will return your call as soon as possible. Thank you for calling.”
2. Be brief.
3. Put a smile in your voice. People like to do business with people they like. (Imagine that!)
4. Don’t be a pseudo music producer, you will be perceived as an amateur.
5. Don’t be cute. “You’ve reached John, Jane, Rover, and Felix” is not a good message. Prospects want to believe that you are someone who can solve real estate problems.
6. Avoid lengthy messages offering quotes, wisdom, or life advice. Nobody wants to sit through a selection of your favorite proverbs, they want to leave a message and move on. Keep your message short.
7. Consider announcing when you will return calls.
8. State pertinent information. For example, “If you’re calling about the house on The Alameda, we will be showing it Sunday between three and five.”
9. Polish your professional reputation by returning calls promptly.
10. Consider setting up an answering service that will call you as soon as a message is left.

Most – and the best, most motivated – prospects prefer to get answers from a live person when they call. Curiosity may be enough of a reason for a prospect to call but not enough of a reason for them to leave a message. Unless you can capture that lead on their first call, it may be lost forever. Leads are valuable, so here are a few tips to help you capture them:

1. Use a cell phone number, rather than a home number so that you will get the call wherever you are.
2. Use a toll-free number to capture prospects that may be reluctant to call because of the cost. (A toll-free number can also disguise your out-of-town exchange when prospecting long-distance.)
3. Consider using a live answering service to take calls when you are unable. Many companies offer this service, you can find them online.
4. Consider using different phone numbers in order to “split test” various marketing efforts. By running two different ads with two different phone numbers, for example, you can track which ad works best.
5. Track your leads by debriefing prospects as quickly as possible. In addition to capturing your prospect’s name and phone number, always ask, “Who referred you to me?” This simple question can save you thousands of advertising dollars.
6. Get the most bang for your advertising bucks by enhancing your real estate investment education. Prospects are useless if you cannot turn them into profits. Even if you are looking for one type of real estate business, wholesaling for example, it is only a matter of time before you receive leads involving tax sale, foreclosure, notes, commercial property, REOs, land, rehab’s, bankruptcy, joint ventures, SDIRAs, 1031 Exchanges, apartment buildings, delinquent tenants, etc. The more you know about the real estate investing business, the better your chances of creating income. Which subject to study first? The Investors United Admissions Office is open to help you figure it out. I hope to meet and partner with you soon.

Ian Charles Parrish is President of Investors United – America’s 1st and only
brick-and-mortar school for real estate investing. “Earn while you learn.”