Power of Relationships for Real Estate Investing

Let’s talk about relationships and how they affect your bottom line as a real estate investor.

You’ve heard it time and time again: build relationships. Well I hate to sound like a broken record, but I’m going tell you again - Relationships is a key component to your bottom line as an investor.

Let me tell you a story about a deal I did a couple of years ago to help emphasize my point.

There was this gorgeous property located in a fairly elaborate subdivision called Heathrow. Most of the homes are pretty new and are all brick with very nice amenities. The property was a large 3-bedroom brick 2-1/2 bath.

I saw the foreclosure notice in the newspaper, so I immediately start calling some of the family to make a deal on this property. I get in touch with a lady lets call Susan for the sake of privacy. Susan and her husband had built the home around five years earlier. The house was vacant and had been vacant for months. I discovered after talking with her, that Susan and her husband had a very rocky marriage and were now divorced. She was doing all she could as a single Mom to make ends meet. Her ex-husband had a medical discharge from the military from a rare disease that left him paralyzed. Susan was ready to move forward. She’d been through an ugly divorce, a bankruptcy, and now was going through a foreclosure. It was really tough on her. Now, her ex-husband had already moved to Washington and was re-married.

Here are the numbers on the deal:

Value: $165K Owed amount on mortgage: $100K Behind: $10K

I dealt with what seemed like every family member that could have had any possible interest in this deal and tried to get this deal sealed up, but to no avail. Susan, the ex-wife had already signed her interest over to me. However, the ex-husband that lived in Washington kept stonewalling my efforts and wasn’t willing to deal. Then, I get this phone call two days before the auction. No kidding, it was 2 days away, and now all of a sudden the husband wants to deal. With only two days before the foreclosure auction, I can get a deal done if the people are in my area so that I can meet with them. I’ve done it numerous times before. But when you add the fact that this guy was on the other side of the country, it makes it almost impossible. That is, unless I happen to know someone in Washington….

See, I happened to meet a guy named John at a seminar several months beforehand and we became friends. We emailed and talked on a regular basis about how to improve our businesses. So, I called him and asked him for a favor and told him I’d make it worth his while. And so, John agrees and gets the deed signed later that night and sends the docs overnight via FedEx to me. I reinstate their loan 1 hour before the foreclosure sale and the deal is complete. Whew…. Take a Deep Breath - right?

Now, after the deal closed I sent John $2K for his troubles. Anyway, my point is this deal would’ve never happened if I’d not built a friendship with John. And notice that I just didn’t call him out of the blue asking for this favor. We were already friends and had already established this friendship months before. The moral to the story is to use the Golden Rule in all circumstances. I’d never thought in my wildest dreams that John could’ve helped me in Alabama. And the truth is that there’ve been more people to help me because I go out of my way to build relationships with others.

The simplest way to accomplish this is to treat everyone with the utmost respect even if there’s no financial gain for you. Work to build win-win relationships with everyone you touch - the local locksmith, the banker, the moving company, the loss mitigation rep you called to get a short sale approved, and the local real estate agents. You never know when some of these professionals have the ability to direct you to the next hot deal for you to acquire.

About the Author

Derek Pierce, full time Real Estate Investor, shows
you the exact strategies to his success in his Free Book: “How I
Went From Corporate Guinea Pig To Real Estate Success”. Get
your copy and Real Estate Investing Tips by going to http://www.thereisecrets.com

Why Use Private Money For Real Estate Investing?

There are many reasons a real estate investor might want to have a ready access to private money for real estate investing. This article will explore a few of those reasons.

The first reason to use private money for real estate investing is to protect your credit rating. Think about this… if you borrow the money from a private individual, rather than a bank or lending institution, the loan will never be reported to the credit bureau. It won’t count against your debt-to-income ratio, and no record of the payment history will be kept. No one will ever know about that loan, unless you tell them.

Next, and one of the very best reasons to use private money for real estate investing, is the elimination of paperwork. I have never had to complete a loan application for private money for real estate investing. The lenders I work with all know me and the kind of investing I do. Many of them never even care to see the property. When I apply for a mortgage, on the other hand, the application process itself can take several days, and there are mountains of paper.

Yet another reason to use private money for real estate investing is the ready access to fast cash. Sometimes, when a deal is especially good, moving super-fast is a necessity. With bank financing, that kind of speed is often impossible. Even lines of credit don’t always give you the same speed capability that private lenders do. With one phone call to one of my private lenders, I can tie up a deal that other investors only dream about.

A great reason to use private money for real estate investing is the leverage that it gives you. Think about this… if you have $50,000 of your own money, is it better to pay all cash for a $50,000 property, or to put $50,000 cash down on a $500,000 property and use private lenders to finance the rest?

If you answered the $500,000 property, you’re right- and here’s why. Let’s say the $50,000 property rents for $500 per month, or $6,000 per year. Your Return On Investment (ROI would be 12% the first year ($6,000 divided by $50,000). It’s safe to assume the rent on the $500,000 property might be about 10 times that of the $50,000 property, or about $60,000 for the year. If your payback to your lender totals $4,000 per month, or $48,000 per year, what’s your Return On Investment (ROI) for the $500,000 property? If you answered 24%, give yourself a gold star!

Of course, you would need to take into account the cost of borrowing the money, but even after doing that, you can see there really is no comparison. Using private money for real estate investing gives you something called leverage. Leverage is the ability to move something very large with something very small… a lever. The lever, in this case, is your small amount of cash ($50,000). With it, you can “move” or control a $500,000 property, because the private lender’s money increases the power of your “lever”.

Here I’ve given you a few of the many great reasons for using private money for real estate investing. There are more, but you should have a clear picture of why private money can be so useful in your real estate investing toolkit. If you would like more information, I have written another article on my website titled Private Money For Real Estate Investing.

Now, go make more offers!

Why Use Private Money For Real Estate Investing?

There are many reasons a real estate investor might want to have a ready access to private money for real estate investing. This article will explore a few of those reasons.

The first reason to use private money for real estate investing is to protect your credit rating. Think about this… if you borrow the money from a private individual, rather than a bank or lending institution, the loan will never be reported to the credit bureau. It won’t count against your debt-to-income ratio, and no record of the payment history will be kept. No one will ever know about that loan, unless you tell them.

Next, and one of the very best reasons to use private money for real estate investing, is the elimination of paperwork. I have never had to complete a loan application for private money for real estate investing. The lenders I work with all know me and the kind of investing I do. Many of them never even care to see the property. When I apply for a mortgage, on the other hand, the application process itself can take several days, and there are mountains of paper.

Yet another reason to use private money for real estate investing is the ready access to fast cash. Sometimes, when a deal is especially good, moving super-fast is a necessity. With bank financing, that kind of speed is often impossible. Even lines of credit don’t always give you the same speed capability that private lenders do. With one phone call to one of my private lenders, I can tie up a deal that other investors only dream about.

A great reason to use private money for real estate investing is the leverage that it gives you. Think about this… if you have $50,000 of your own money, is it better to pay all cash for a $50,000 property, or to put $50,000 cash down on a $500,000 property and use private lenders to finance the rest?

If you answered the $500,000 property, you’re right- and here’s why. Let’s say the $50,000 property rents for $500 per month, or $6,000 per year. Your Return On Investment (ROI would be 12% the first year ($6,000 divided by $50,000). It’s safe to assume the rent on the $500,000 property might be about 10 times that of the $50,000 property, or about $60,000 for the year. If your payback to your lender totals $4,000 per month, or $48,000 per year, what’s your Return On Investment (ROI) for the $500,000 property? If you answered 24%, give yourself a gold star!

Of course, you would need to take into account the cost of borrowing the money, but even after doing that, you can see there really is no comparison. Using private money for real estate investing gives you something called leverage. Leverage is the ability to move something very large with something very small… a lever. The lever, in this case, is your small amount of cash ($50,000). With it, you can “move” or control a $500,000 property, because the private lender’s money increases the power of your “lever”.

Here I’ve given you a few of the many great reasons for using private money for real estate investing. There are more, but you should have a clear picture of why private money can be so useful in your real estate investing toolkit. If you would like more information, I have written another article on my website titled Private Money For Real Estate Investing.

Now, go make more offers!

Why Use Private Money For Real Estate Investing?

There are many reasons a real estate investor might want to have a ready access to private money for real estate investing. This article will explore a few of those reasons.

The first reason to use private money for real estate investing is to protect your credit rating. Think about this… if you borrow the money from a private individual, rather than a bank or lending institution, the loan will never be reported to the credit bureau. It won’t count against your debt-to-income ratio, and no record of the payment history will be kept. No one will ever know about that loan, unless you tell them.

Next, and one of the very best reasons to use private money for real estate investing, is the elimination of paperwork. I have never had to complete a loan application for private money for real estate investing. The lenders I work with all know me and the kind of investing I do. Many of them never even care to see the property. When I apply for a mortgage, on the other hand, the application process itself can take several days, and there are mountains of paper.

Yet another reason to use private money for real estate investing is the ready access to fast cash. Sometimes, when a deal is especially good, moving super-fast is a necessity. With bank financing, that kind of speed is often impossible. Even lines of credit don’t always give you the same speed capability that private lenders do. With one phone call to one of my private lenders, I can tie up a deal that other investors only dream about.

A great reason to use private money for real estate investing is the leverage that it gives you. Think about this… if you have $50,000 of your own money, is it better to pay all cash for a $50,000 property, or to put $50,000 cash down on a $500,000 property and use private lenders to finance the rest?

If you answered the $500,000 property, you’re right- and here’s why. Let’s say the $50,000 property rents for $500 per month, or $6,000 per year. Your Return On Investment (ROI would be 12% the first year ($6,000 divided by $50,000). It’s safe to assume the rent on the $500,000 property might be about 10 times that of the $50,000 property, or about $60,000 for the year. If your payback to your lender totals $4,000 per month, or $48,000 per year, what’s your Return On Investment (ROI) for the $500,000 property? If you answered 24%, give yourself a gold star!

Of course, you would need to take into account the cost of borrowing the money, but even after doing that, you can see there really is no comparison. Using private money for real estate investing gives you something called leverage. Leverage is the ability to move something very large with something very small… a lever. The lever, in this case, is your small amount of cash ($50,000). With it, you can “move” or control a $500,000 property, because the private lender’s money increases the power of your “lever”.

Here I’ve given you a few of the many great reasons for using private money for real estate investing. There are more, but you should have a clear picture of why private money can be so useful in your real estate investing toolkit. If you would like more information, I have written another article on my website titled Private Money For Real Estate Investing.

Now, go make more offers!

Real Estate Investing: Always Have a Back-up

Over the last two weeks, events have unfolded that have reminded me of an important truism in real estate investing.

“Always have a back-up!”

This was played out in dramatic form with a deal I’m closing tomorrow. A wholesaler friend of mine brought me this great little three bedroom one bath home tucked away on a dead end street where pride in ownership is alive and well. The electric and plumbing is already upgraded and this rehab is cosmetic with the exception of adding a bath.

I’m buying it for $52,500 and the as-repaired appraisal came in at $86,000. Not a bad spread. This is the kind of deal I like!

When I called my hard money broker, she was delighted and we moved quickly toward closing. I was only waiting on the closing time…

That’s when the wheels fell off.

It seems my broker’s money source decided he was only going to invest in property valued at $250,000 or more. Yikes!

So, I went to back-up hard money broker number 1.

The broker took his time…about 5 days…to finally tell me that he only wanted to loan about 60% of the as-repair value. No way. Not when I can do better (70%) with back-up hard money broker number 2.

Back-up broker number 2 is probably who I should have went with in the first place. I’ve borrowed from this source before. It took one phone call, and the money is there and I close in a couple of days. Wham-bam, the deal is arranged.

It looks like it’s time to shift around the players in my core team a bit. Back-up number 2 is now my starter. Back-up number 1 (foot-dragger, doesn’t-loan-the-70%-he-said-he-would) is benched.

I tell this story to illustrate that it’s absolutely CENTRAL to your business to have back-up plans in all aspects of the business.

I strongly recommend having two or three:

- Hard money brokers - Appraisers for quick value assessments - Rehab crew leaders - Plumbers - Electricians - Roofers - HVAC techs - Realtors

In fact, have two or three of any trade or profession lined up, ready to spring into action as a moment’s notice. Sure, I have my favorites in each of these areas, but I am striving to have 3-deep hot back-ups in each. Thing happen. Life happens! Be prepared for it.

Don’t stop there. Have back-ups when you rent or sell a property. A property isn’t rented until the rent and deposit (or lease/option fee) is paid and the keys are in the hands of the new tenant. So, encourage back-ups until the money is in your hands (in cash).

I’ve had appointments set up to sign leases, and the potential tenants never show up, no call, and they quit answering their phone. This is despite being hot for the house an hour earlier! If you are in this business long, you will learn that people will disappoint you and they will fool you. So, establish policies and make one of them “it ain’t rented until it’s paid for!”

Encourage back-up offers to purchase. Deals fall through all the time! Take as many back-up offers as you can.

Having back-ups is a mental frame of mind that fits within being a big-picture thinker portion of the Mind of the Real Estate Investor. In addition, rearranging your core team is thinking big and long term. It’s a constant process of improvement and adjustment. This approach is crucial to your business! Apply this principle and profit!

About the Author

———- Bruce W. Ford publishes the “Nothing Held Back” newsletter, a free service of Rehab Real Estate Central (http://www.Rehab-Real-Estate.com). Get a free copy of his mini-course entitled “The Mind of the Real Estate Investor by clicking here!.”

Why Use Private Money For Real Estate Investing?

There are many reasons a real estate investor might want to have a ready access to private money for real estate investing. This article will explore a few of those reasons.

The first reason to use private money for real estate investing is to protect your credit rating. Think about this… if you borrow the money from a private individual, rather than a bank or lending institution, the loan will never be reported to the credit bureau. It won’t count against your debt-to-income ratio, and no record of the payment history will be kept. No one will ever know about that loan, unless you tell them.

Next, and one of the very best reasons to use private money for real estate investing, is the elimination of paperwork. I have never had to complete a loan application for private money for real estate investing. The lenders I work with all know me and the kind of investing I do. Many of them never even care to see the property. When I apply for a mortgage, on the other hand, the application process itself can take several days, and there are mountains of paper.

Yet another reason to use private money for real estate investing is the ready access to fast cash. Sometimes, when a deal is especially good, moving super-fast is a necessity. With bank financing, that kind of speed is often impossible. Even lines of credit don’t always give you the same speed capability that private lenders do. With one phone call to one of my private lenders, I can tie up a deal that other investors only dream about.

A great reason to use private money for real estate investing is the leverage that it gives you. Think about this… if you have $50,000 of your own money, is it better to pay all cash for a $50,000 property, or to put $50,000 cash down on a $500,000 property and use private lenders to finance the rest?

If you answered the $500,000 property, you’re right- and here’s why. Let’s say the $50,000 property rents for $500 per month, or $6,000 per year. Your Return On Investment (ROI would be 12% the first year ($6,000 divided by $50,000). It’s safe to assume the rent on the $500,000 property might be about 10 times that of the $50,000 property, or about $60,000 for the year. If your payback to your lender totals $4,000 per month, or $48,000 per year, what’s your Return On Investment (ROI) for the $500,000 property? If you answered 24%, give yourself a gold star!

Of course, you would need to take into account the cost of borrowing the money, but even after doing that, you can see there really is no comparison. Using private money for real estate investing gives you something called leverage. Leverage is the ability to move something very large with something very small… a lever. The lever, in this case, is your small amount of cash ($50,000). With it, you can “move” or control a $500,000 property, because the private lender’s money increases the power of your “lever”.

Here I’ve given you a few of the many great reasons for using private money for real estate investing. There are more, but you should have a clear picture of why private money can be so useful in your real estate investing toolkit. If you would like more information, I have written another article on my website titled Private Money For Real Estate Investing.

Now, go make more offers!

Power of Relationships for Real Estate Investing

Let’s talk about relationships and how they affect your bottom line as a real estate investor.

You’ve heard it time and time again: build relationships. Well I hate to sound like a broken record, but I’m going tell you again - Relationships is a key component to your bottom line as an investor.

Let me tell you a story about a deal I did a couple of years ago to help emphasize my point.

There was this gorgeous property located in a fairly elaborate subdivision called Heathrow. Most of the homes are pretty new and are all brick with very nice amenities. The property was a large 3-bedroom brick 2-1/2 bath.

I saw the foreclosure notice in the newspaper, so I immediately start calling some of the family to make a deal on this property. I get in touch with a lady lets call Susan for the sake of privacy. Susan and her husband had built the home around five years earlier. The house was vacant and had been vacant for months. I discovered after talking with her, that Susan and her husband had a very rocky marriage and were now divorced. She was doing all she could as a single Mom to make ends meet. Her ex-husband had a medical discharge from the military from a rare disease that left him paralyzed. Susan was ready to move forward. She’d been through an ugly divorce, a bankruptcy, and now was going through a foreclosure. It was really tough on her. Now, her ex-husband had already moved to Washington and was re-married.

Here are the numbers on the deal:

Value: $165K Owed amount on mortgage: $100K Behind: $10K

I dealt with what seemed like every family member that could have had any possible interest in this deal and tried to get this deal sealed up, but to no avail. Susan, the ex-wife had already signed her interest over to me. However, the ex-husband that lived in Washington kept stonewalling my efforts and wasn’t willing to deal. Then, I get this phone call two days before the auction. No kidding, it was 2 days away, and now all of a sudden the husband wants to deal. With only two days before the foreclosure auction, I can get a deal done if the people are in my area so that I can meet with them. I’ve done it numerous times before. But when you add the fact that this guy was on the other side of the country, it makes it almost impossible. That is, unless I happen to know someone in Washington….

See, I happened to meet a guy named John at a seminar several months beforehand and we became friends. We emailed and talked on a regular basis about how to improve our businesses. So, I called him and asked him for a favor and told him I’d make it worth his while. And so, John agrees and gets the deed signed later that night and sends the docs overnight via FedEx to me. I reinstate their loan 1 hour before the foreclosure sale and the deal is complete. Whew…. Take a Deep Breath - right?

Now, after the deal closed I sent John $2K for his troubles. Anyway, my point is this deal would’ve never happened if I’d not built a friendship with John. And notice that I just didn’t call him out of the blue asking for this favor. We were already friends and had already established this friendship months before. The moral to the story is to use the Golden Rule in all circumstances. I’d never thought in my wildest dreams that John could’ve helped me in Alabama. And the truth is that there’ve been more people to help me because I go out of my way to build relationships with others.

The simplest way to accomplish this is to treat everyone with the utmost respect even if there’s no financial gain for you. Work to build win-win relationships with everyone you touch - the local locksmith, the banker, the moving company, the loss mitigation rep you called to get a short sale approved, and the local real estate agents. You never know when some of these professionals have the ability to direct you to the next hot deal for you to acquire.

About the Author

Derek Pierce, full time Real Estate Investor, shows
you the exact strategies to his success in his Free Book: “How I
Went From Corporate Guinea Pig To Real Estate Success”. Get
your copy and Real Estate Investing Tips by going to http://www.thereisecrets.com

Using Direct Mail Marketing Campaign For Your Real Estate Investing Business

In this ever-growing world of marketing and advertising opportunities many people have begun to let go of the ?old world? techniques, direct mailing and the like. For this reason, and many others, it is necessary for you to jump in to the world of direct mail marketing to get the very best for your advertising dollar. Don?t let the same old things creep into your mind when this pops in there! Don?t believe that it is a waste of time or a shot in the dark, this can really work if you give it a solid try.

One of the very important concepts to remember when you begin a direct mail marketing campaign is that it is imperative to pay attention to the wording of your direct mailer. Don?t simply make some huge advertisement about buying someone?s house because of foreclosure etcetera, tell them in more compassionate ways that you can make their life easier. They already feel strange, embarrassed, or even a little ashamed of their financial situation, you can get a good step in with them by offering to ?take it off of their hands? and take over payments ?Quickly?.

Make sure that you are pre-qualifying or sending to an area where you can make no money. It isn?t worth your time or theirs if you send them information about helping them out of their financial hardships only to let them down in the end. Make sure that you are sending to the right people for that reason and this, by getting in front of the right people you are increasing the opportunity of catching their attention and getting that all-important phone call in response!

In the end it is unbelievably important that you look at this as an opportunity to invest in the future of your real estate investing business rather than just a simple expense for the present. At the very least you are beginning to register your name in the heads of thousands of prospective buyers and sellers, if it isn?t this time that it works it will be next time. Be persistent and it will indeed pay off in the end!

Real Estate Investing: Always Have a Back-up

Over the last two weeks, events have unfolded that have reminded me of an important truism in real estate investing.

“Always have a back-up!”

This was played out in dramatic form with a deal I’m closing tomorrow. A wholesaler friend of mine brought me this great little three bedroom one bath home tucked away on a dead end street where pride in ownership is alive and well. The electric and plumbing is already upgraded and this rehab is cosmetic with the exception of adding a bath.

I’m buying it for $52,500 and the as-repaired appraisal came in at $86,000. Not a bad spread. This is the kind of deal I like!

When I called my hard money broker, she was delighted and we moved quickly toward closing. I was only waiting on the closing time…

That’s when the wheels fell off.

It seems my broker’s money source decided he was only going to invest in property valued at $250,000 or more. Yikes!

So, I went to back-up hard money broker number 1.

The broker took his time…about 5 days…to finally tell me that he only wanted to loan about 60% of the as-repair value. No way. Not when I can do better (70%) with back-up hard money broker number 2.

Back-up broker number 2 is probably who I should have went with in the first place. I’ve borrowed from this source before. It took one phone call, and the money is there and I close in a couple of days. Wham-bam, the deal is arranged.

It looks like it’s time to shift around the players in my core team a bit. Back-up number 2 is now my starter. Back-up number 1 (foot-dragger, doesn’t-loan-the-70%-he-said-he-would) is benched.

I tell this story to illustrate that it’s absolutely CENTRAL to your business to have back-up plans in all aspects of the business.

I strongly recommend having two or three:

- Hard money brokers - Appraisers for quick value assessments - Rehab crew leaders - Plumbers - Electricians - Roofers - HVAC techs - Realtors

In fact, have two or three of any trade or profession lined up, ready to spring into action as a moment’s notice. Sure, I have my favorites in each of these areas, but I am striving to have 3-deep hot back-ups in each. Thing happen. Life happens! Be prepared for it.

Don’t stop there. Have back-ups when you rent or sell a property. A property isn’t rented until the rent and deposit (or lease/option fee) is paid and the keys are in the hands of the new tenant. So, encourage back-ups until the money is in your hands (in cash).

I’ve had appointments set up to sign leases, and the potential tenants never show up, no call, and they quit answering their phone. This is despite being hot for the house an hour earlier! If you are in this business long, you will learn that people will disappoint you and they will fool you. So, establish policies and make one of them “it ain’t rented until it’s paid for!”

Encourage back-up offers to purchase. Deals fall through all the time! Take as many back-up offers as you can.

Having back-ups is a mental frame of mind that fits within being a big-picture thinker portion of the Mind of the Real Estate Investor. In addition, rearranging your core team is thinking big and long term. It’s a constant process of improvement and adjustment. This approach is crucial to your business! Apply this principle and profit!

About the Author

———- Bruce W. Ford publishes the “Nothing Held Back” newsletter, a free service of Rehab Real Estate Central (http://www.Rehab-Real-Estate.com). Get a free copy of his mini-course entitled “The Mind of the Real Estate Investor by clicking here!.”

Power of Relationships for Real Estate Investing

Let’s talk about relationships and how they affect your bottom line as a real estate investor.

You’ve heard it time and time again: build relationships. Well I hate to sound like a broken record, but I’m going tell you again - Relationships is a key component to your bottom line as an investor.

Let me tell you a story about a deal I did a couple of years ago to help emphasize my point.

There was this gorgeous property located in a fairly elaborate subdivision called Heathrow. Most of the homes are pretty new and are all brick with very nice amenities. The property was a large 3-bedroom brick 2-1/2 bath.

I saw the foreclosure notice in the newspaper, so I immediately start calling some of the family to make a deal on this property. I get in touch with a lady lets call Susan for the sake of privacy. Susan and her husband had built the home around five years earlier. The house was vacant and had been vacant for months. I discovered after talking with her, that Susan and her husband had a very rocky marriage and were now divorced. She was doing all she could as a single Mom to make ends meet. Her ex-husband had a medical discharge from the military from a rare disease that left him paralyzed. Susan was ready to move forward. She’d been through an ugly divorce, a bankruptcy, and now was going through a foreclosure. It was really tough on her. Now, her ex-husband had already moved to Washington and was re-married.

Here are the numbers on the deal:

Value: $165K Owed amount on mortgage: $100K Behind: $10K

I dealt with what seemed like every family member that could have had any possible interest in this deal and tried to get this deal sealed up, but to no avail. Susan, the ex-wife had already signed her interest over to me. However, the ex-husband that lived in Washington kept stonewalling my efforts and wasn’t willing to deal. Then, I get this phone call two days before the auction. No kidding, it was 2 days away, and now all of a sudden the husband wants to deal. With only two days before the foreclosure auction, I can get a deal done if the people are in my area so that I can meet with them. I’ve done it numerous times before. But when you add the fact that this guy was on the other side of the country, it makes it almost impossible. That is, unless I happen to know someone in Washington….

See, I happened to meet a guy named John at a seminar several months beforehand and we became friends. We emailed and talked on a regular basis about how to improve our businesses. So, I called him and asked him for a favor and told him I’d make it worth his while. And so, John agrees and gets the deed signed later that night and sends the docs overnight via FedEx to me. I reinstate their loan 1 hour before the foreclosure sale and the deal is complete. Whew…. Take a Deep Breath - right?

Now, after the deal closed I sent John $2K for his troubles. Anyway, my point is this deal would’ve never happened if I’d not built a friendship with John. And notice that I just didn’t call him out of the blue asking for this favor. We were already friends and had already established this friendship months before. The moral to the story is to use the Golden Rule in all circumstances. I’d never thought in my wildest dreams that John could’ve helped me in Alabama. And the truth is that there’ve been more people to help me because I go out of my way to build relationships with others.

The simplest way to accomplish this is to treat everyone with the utmost respect even if there’s no financial gain for you. Work to build win-win relationships with everyone you touch - the local locksmith, the banker, the moving company, the loss mitigation rep you called to get a short sale approved, and the local real estate agents. You never know when some of these professionals have the ability to direct you to the next hot deal for you to acquire.

About the Author

Derek Pierce, full time Real Estate Investor, shows
you the exact strategies to his success in his Free Book: “How I
Went From Corporate Guinea Pig To Real Estate Success”. Get
your copy and Real Estate Investing Tips by going to http://www.thereisecrets.com

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