“The Red Pill Condensed” Video Montage of The Matrix
In the following few blog posts, I will attempt to lay out a systematic way to assign real estate contracts (AKA “Wholesaling”) real estate for profit. I believe that if you are a Realtor® or an Investor and you choose to add assignment of contract to your services, then you will be light years ahead of your competition. You will be able to add to your listing inventory, your buyer list, as well as add thousands of dollars to your bottom line. Interested? Keep reading!
It is my belief that if you are in real estate sales as a Realtor®or Wholesaler, you are both suffering from the same malady. Not enough money. While you work, and strive to better yourself, at the end of the day there is more month than money.
Fortunately, you are in the industry they can provide ridiculous amounts of money in very short periods of time. Two things stand in the way however. First, knowing what to say once you get there, and secondly finding a predictable, duplicatable way to get the same result over and over again.
The Red Pill Sales System was designed to handle both of these problems. First knowing what to say in every sales situation. From For Sale By Owners, to Expireds. From Attorneys, to Title Officers; being able to control every sales conversation is key to your success! Secondly, the purpose of The Red Pill Sales System was designed to create a business that had the following characteristics.
1. Predictable- You know how many contacts it takes to make a certain amount of money.
2. Duplicatable- You know how many contacts it takes to get an end result.
3. Repeatable- Being able to do it again and again.
Like the links in a Chain, each forms the System.
How we do it, is through a systematic approach. A change of mindset and business is required. If you want different results in your real estate business; then you must do things differently! Approaching the real estate business from traditional points of view will not serve in this business model. What is required is the adoption of the “Buyer Mindset”
What is the “Buyer Mindset?”
You personally are a Buyer. Stop labeling yourself as a Realtor®, an Investor, a Wholesaler, or anything like that. I am not saying not to disclose your Realtor® status if you are a Realtor®, just stop pigeonholing yourself.
Buyers and sellers are on contracts, not Realtors® or Wholesalers. Why this is important to you is that it gives you incredible flexibility, control, and power to realize you are a full partner in the contract process.
Buyers and sellers have rights on the contract, not Realtors® or Wholesalers. Why this is important to you, is that when you begin to exercise your rights as a participant to the contract, you will find that others will respect them. Namely, Title, Attorneys, Realtors® and the like.
Buyers and sellers make the decisions on the contract, not the Realtors® or the Wholesalers or Title, or Attorneys. So long as the purpose of the contract is legal, the will of the parties takes precedent.
It’s when you begin to label yourself as a Realtor®, an Investor, or Wholesaler, that you begin to diminish your negotiating power.
Why is a “Buyer Mindset” important?
It allows you to have the protections afforded you under the contract. As a buyer, you have certain protections afforded you when working with agents and attorneys. These protections are in the form of obligations called “fiduciary duties”.
A fiduciary agent/attorney that has a client relationship you has certain obligations. They are including but not limited to loyalty, obedience, disclosure, confidentiality and others. Additionally as a Realtor® you must be cautious and your identification as a principal in the transaction.
Article 4 of The National Association of Realtors® Code of Ethics specifically calls you to identify yourself as a principal. Why? Because the public must know that you were acting on your own behalf as a buyer. So be the buyer!
What is the strength of this mindset?
First, you have the ability to negotiate on equal footing with the seller. No longer are you a Realtor®, or an Investor subject to their preconceived notions. You are the buyer they’ve been waiting for! Nobody else is coming!
Home seller facts
Nearly 87% of all for sale by owners change their plans or list their home.
This is important to the Realtor®, or Wholesaler to know because the likelihood of them selling their home themselves is extremely lowThose that do list, over half do not sell in the first 30 days.
This is important especially for the person who is an emergency seller. If they cannot wait, as sometimes the situation dictates, then a listing is not going to work.
Between 40 to 50% of the homes that go on the multiple listing service do not sell at all.
It’s not a guarantee that the home will sell the first time. Often times it is subject to multiple sets of listings. If MLS was all it took to sell a home, agents would be unnecessary.
Of the ones that do expire, 40% will relisted the first 72 hours after expiring.
This means, that for many, the dream of selling their home is still very real. You as an investing Realtor, can often times make the difference. If you are able to purchase the home, then!sell for a profit, then everyone wins!
Therefore, what they need is not another listing if they have to sell. But a buyer, a trained capable buyer.
No credit? No money? No problem!
No it’s NOT ok! Don’t learn to live without it!
While I appreciate the “snake oil “feel to this, it really is true. There are ways to purchase a home and assign the contract for a profit without cash. Remember, assignment of contract is much different than flipping a house! To assign a contract, you do not need cash nor credit! But I will go into that in the next post! Take care, and Have A POWERFUL SALES DAY!!!