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Real Estate marketing is a science, not an art. One of the greatest books you could ever read for Real Estate marketing, whether it be by marketing articles and tools for your website, is called “How to Master the Art of Selling” by Tom Hopkins. The book is fantastic for Real Estate professionals who are looking to win more referrals and leads while at the same time baking the cash every single month.

Before I go into this simple, yet very effective technique, I should clarify that this is not some kind of a mind control technique or anything like that.  The way I see it, it’s 100% ethical and it is being used by someone every hour of every day.  Also, I hope that by reading this post, you’ll see the power of it and apply it not only in your business but in your personal life.  I know that this is a very popular blog and what I say here will be seen by a lot of people.  In the end, this strategy can benefit both parties involved.  So, let’s get going here.

For your 2009 marketing proposals and pitches, instead of trying to push a product or service, in this case a home, start your salesmanship by listening and opening yourself with questions when a customer comes to you for advice. Whether you are an investor, realtor or a broker, you should remind yourself that the average sales person would talk more than he would listen and because of it less amount of communication will be from both parties.

Instead, try asking questions and eagerly listening with your body language pointing obvious enthusiasm to your potential buyer or future prospect. If you come to think of it, Tom Hopkins would agree that this is a champion salesmanship process. You listen and gather rapport. You establish communication and involve the client by establishing genuine interest. Not by trying to push a sale or manipulate the brain for what already is one of the most emotional purchases for most people.

Among the most important sales skills you begin to process is a plan to clear potential objections based on what the customer really wants once he asks more questions.  Not only do you win by passing the potential buyer of a home into a selling process, but if you take the time to learn about the client’s interests, you win through adjusting your salesmanship and abilities whether you ultimately win or lose the sale.

So, next time you get a possible buyer or seller on the phone or see them in their house, be quiet and listen to what they have to say.  Remember, silence is extremely powerful.  Train yourself to be quiet and let the other party talk.  Most people are very uncomfortable when there is silence and they’ll just start talking.  Now, I know this isn’t an easy task.  Believe me, I’m still working on it.  My wife is an amazing woman and she reminds me of it once in a while

But the simple fact is that when you let other people talk, you BOTH end up in a better position if you were to be the one talking and not listening.  Even worse, talking over each other.

So, do you want to find out your buyer’s real problems? Do you want to know how you can help them?  Then BE QUIET!  Try it and then come back here and let me know by commenting on the post below.

To Your Success…

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Tags: marketing tools for Real Estate website, Real Estate article marketing

Today I am going to share something with you that can literally change your life.  This little technique will give you the power to master your own business and your own life.  You need to master this technique if you want  to be successful in life.  What am I talking about here?  I’m talking about Effective Time Management.  Without it, you’re just spinning your wheels and get nothing done.  Without it, you’ll look back at your own day and say:  “What happen?  Where did the day go? I didn’t get anything done!”

If you look on the internet and type in time management in Google, there are thousands of different ways to manage your time.  I will show you one technique that I use in my own life and my own business.  You can use that technique or you can use something else but this technique has proved to be most effective for me.

First of all, I have to give credit where it’s due.  I learned this from Alex Mondossian, an internet marketer and an old school copywriter whose been famous for a long time—his name was Eugene Schwartz.  By the way, if you want to learn effective copywriting, Eugene Schwartz books and swipe files are amazing.  So check them out.

Here’s the simple time management technique:

Step 1 - Create your master to do list.  Your master to do list is going to have to have all of the items you have to finish the next day.  You can use a notebook or 5″x7″ index cards.  So, if you are writing your master to do list on Sunday, you are focusing on your to-do list for Monday.  Don’t write more than 20 items though.  When you complete an item, cross it out with a RED pen.  Believe me, it works.  It’s a psychological thing.  One tip I learned is to do couple of fun items first. Not only does it get you going but it gets you excited about your list and your day.

Step 2 – You are going to blackout your daily prime time hours.  Now you may be a morning person or night person.  I am a night person and tend to sleep in the morning, so my prime time hours are late afternoon (after I get up) or later at night because everyone is away and I can focus on what I am doing.  I would suggest that you should keep your prime time hours between 1-4 hours.  These prime time hours are going to be your focus hours on items that are critical to your business and your profits.  Focus on those items and avoid interruptions.  Turn off your phone, close your office door and whatever else interrupts you during the day.

Step 3 – You are going to use a countdown timer during your prime time hours.  It can be any kind of timer as long as it counts down.  You will set your prime time hours to 50 or 55 minutes. Mr. Schwartz was teaching about 3 minutes and 33 seconds or 33 minutes and 33 seconds.  He would set his clock for that amount of time. Play around with the time and see which one works better for you.  At first, you might start with 33 minutes and 33 seconds because you might not be used to focusing for so long.  Then, as you get better, you can ramp it up to 55 minutes. So, you turn the timer on and start working.

Let’s say you want to write an article for marketing purposes but you have no clue as to what to write about. Turn on the timer that you set for 33 or 55 minutes and sit there in front of that paper.  If you can’t think of anything that is fine just start writing crazy stuff down and sooner or later something will come to you.  Here is a critical point you need to remember, after your time expires and your timer beeps you need to stop.  Step away from the desk put your pen down and go do something for about 5 or 10 minutes.  It doesn’t matter if you are in a middle of something or that you have finally started writing.  You need to do this step.  It’s extremely critical you do.  Here’s where the magic happens.  Your mind will start working on what you have been doing and will start creating ideas for you.  You can be getting a drink or walking around your office.  It doesn’t matter, your mind will do it’s job.

That’s it.  Just rinse and repeat.  After a while, you’ll be amazed how much work you’ll get done and how effective you’ll become.  Believe me, I’ve seen this technique work and it is amazing.  So go out there and start doing it, today!

One last thing, let me know in the comments below about your thoughts on this.  Have you used this technique?  What do you think about it?  Maybe you have some really good tips you can share with others on this blog.  Thanks again and I’ll talk to you soon.

To Your Success,

Peter Kolat

When people first decide to buy an apartment building it is common for them to make a few easily preventable mistakes. The most common error that I see new investors make is not having what I like to refer to as the “investor tool chest”.

For example, if you wanted to build a house you would need a few things to get started. You would need first to have a blue print for the home drawn up by an architect. Second, you would need to have the proper tools to actually complete the building, You would need the nails, hammers, saws and drills to work on the raw materials. Thankfully, investing in apartment buildings doesn’t require any physical tools or skills. However, investing in apartment building does require the same kind of mental planning and in this case your “tool chest” is actually a “tool chest” of knowledge.

To Be a Successful Apartment Investor, You Must Have a Plan!

The best way to acquire these essential educational tools is to read many books and magazines on the subject. The first and most important tool that an investor can have is the ability to determine the investment value of apartment building. There is no way that an investor can be sure that he or she will be buying a cash cow or a money pit without the necessary ability to analyze the value of a building. There is an endless array of information available about debt coverage ratios, cap rates and real estate evaluation. In my opinion the first time commercial real estate investor should operate with one simple mental “tool” or presumption and that is to determine what the building is worth to him or her and to ignore almost everything else. What this means is that investor should virtually ignore what prices other similar properties have recently sold for in the area. Instead, the investor should figure out the price that will allow him or her to buy the property and make the profit and cash flow that will make it a good investment.

In order the figure out what price you should pay for an apartment building, assuming for example that you want to realize a certain return, or Cap Rate on your investment annually, simply use the following formula:

Net Operating Income
__________________ = Price You Can Pay to Realize a Desired Cap Rate
Capitalization Rate

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Tags: apartment building course, apartment building education, apartment building investment, apartment building news, buy apartment building, buy apartments

With the US Dollar falling and rising inflation many individual investors are looking for alternative methods to preserve and grow their capital. Apartment buildings are starting to receive a lot of interest from many investors who have little or no experience in the world of commercial real estate. Investors are now attracted to apartment building investments because of their relative security, positive cash flow and growth potential. These new investors are hungry to learn how to buy an apartment building. However, the first time buyer should do his necessary homework before actually investing his hard earned money in a multifamily property.

The last thing a new investor should do is to buy the first apartment building deal that comes across his table. In fact, in my role as a commercial property finance consultant, as soon as I hear that the investor I am speaking with has never bought or managed a multifamily building previously AND that this is the first deal that he or she has ever looked it, then I know immediately that it is a deal that will never get done. I don’t even have to look at the rent rolls or the income and expense statements. To many readers this may sound cynical or brash but it is simply the truth. And it has nothing to do with the intelligence of the investor it just simply has to do with the fact that banks will not lend money on an apartment building that is not or will not soon become profitable.

Many beginner commercial real estate buyers are under the assumption that they will somehow be able to convince their commercial mortgage broker and the commercial mortgage bank underwriters the property is such a great deal at the purchase price because there is a new mall scheduled to be opened down the street or that the neighborhood is undergoing revitalization or because a big employer is moving into the city. All of this may be true but a bank will not generally lend money on an apartment building unless it is already profitable and the bank will usually want to see at least a 20% down payment. And I don’t blame beginning investors for believing what they do. Many real estate agents and property owners will say just about anything to get a building sold. The job of the real estate agent and the property owner is to get the property sold for the most amount of money that the market will bear.

The first time apartment building buyer needs to be aware of the fact that the real estate agent selling the multifamily building represents the seller’s best interest and not his or hers. For this reason it is imperative for the first time investor to have as much education and knowledge going into the deal as possible. The first skill the buyer must have to separate the junk deals from the deals that will be profitable, cash flowing apartment buildings. He or she should begin by taking all or some of the steps below:

• Get a book education first. Learn about the industry and terminology by reading many commercial real estate investment books Stay away from the books that over promise and under deliver. It if seems to easy to be true then you know that it is.
• Develop your analytical skills. You need to be concentrating on Debt Service Coverage Ratios, CAP rates and Internal Rates of Return. You don’t want to be thinking emotionally about the investment. This does not mean that you should eschew creative financing and acquisition strategies. It just means that these strategies and methods should be firmly based and tested in the real world.

• Network and forge relationships with commercial real estate professionals and investors. Every major metropolitan area has at least one very active real estate investment club.

• Build a “master mind” team of advisers that will help you evaluate your investment decisions. This team could include attorneys, accountants, appraisers, realtors, mortgage brokers, business men and other entrepreneurs.

Tags: apartment building investing, buy apartment building, first time apartment building investor, how to buy an apartment building, how to invest in apartment building, investing in apartment buildings

Buy an Apartment Building Today?

In today’s turbulent financial markets many investors are looking for ways to grow their money that will offer a steady flow of predictable income and limited market risk. More and more people are buying apartment buildings to help diffuse the effects of inflation on their portfolios. Apartment buildings offer many exceptional advantages over traditional investments such as stocks, bonds and mutual funds. This is especially true in a recessionary market environment. In fact there are many attractive attributes of an apartment building investment that many investors who are new to commercial real estate may not even know about. There are some interesting facts about buy multi-family property investing that could radically change your perception about this fascinating and lucrative part of the investment world and inspire you to go out and buy an apartment building of your own.

Warren Buffet once said that “wide diversification is only required when investors do not understand what they are doing.” This quote seems especially true about the average investor in the United States who is listening to the advice of a financial adviser who in reality knows little more about the markets then himself. Usually financial advisers will recommend that a client be well diversified in investments ranging from stocks, bonds, mutual funds or maybe even a real estate investment trust. The adviser is putting his or her client into a group of “diversified” investments that were recommended by the firm’s top adviser and the research department. Unfortunately, however, for the individual investor is the fact that these investments are basically designed to preserve the firm’s capital under management and they don’t take into great regard the individual investor’s need to grow his capital.

The most successful investors and those that see the greatest returns are those that specialize in a particular sector. And the timing has never been better to begin specializing in apartment building investing for the average investor. The stock market is under intense earnings and inflation pressure. Investors need to look at a direct investment in an income producing apartment building to establish a profitable stream of cash flow that could last for decades to come. Many thousands of individual investors have been able to secure their financial futures by specializing in this unique niche and leaving behind the mediocrity of financial advisers and stock pickers.

If there has ever truly been a recession proof business it has to be apartment building investing. Even with the US economy is turmoil and business cutbacks people will always need a place to live. The actual demand for rental units in the US has never been higher then today. A total of 36 million of all households in the US are renter occupied. In total, a full 83% of all households under age 25 in the US are occupied by renters. Furthermore, a full 55% of all households between 25 and 35 are renters. The growing senior segment of society will be living longer and looking for rental properties as well. These are a few impressive statistics that demonstrate the strong current and projected demand for rental housing.

Tags: apartment building, apartment building investing, apartment building investor, apartments, buy apartment, buy apartment building, how to buy apartment buildings, learn apartment investing, learn how to buy an apartment building, learn how to invest in apartment buildings, multi-family investing, multi-family property

We have all heard the classic saying: It’s not what you know, but who you know. It’s true in life, it’s true in business and it’s certainly true in real estate. The people you know and the connections that you make have a profound impact on all aspects of your life. This was something that I discovered fairly early in my business career.

When I started in the financial services industry as a stockbroker I spent the majority of my time dialing for dollars. I spent countless hours calling people I didn’t know in the hope that they might be willing to have a conversation with me, let alone become a client. I was sure, or at least I hoped, that there had to be a better way. I asked successful veterans for tips on building a business and what they had done to achieve the degree of success that they had.

Two answers were constantly thrown back at me: networking and referrals. I was told to join the Chamber of Commerce and other business groups in order to build relationships that would lead to a steady stream of referrals. I was also warned that there is no instant gratification, relationships take time to develop. It is important to remember that it is called net-work-ing because you have to work at it.

Stage One

The first step in networking is to get out there. Have plenty of business cards and develop a 30-second commercial that clearly explains what you do. You need to develop your listening skills, you have two ears and one mouth – use them in that proportion. It is easy to spot the novices at networking events, they’re the ones running around trying to sell their product or service to anyone with a pulse. They usually go home empty handed.

At this stage you should be focusing on building relationships. Ask people what they do or what they need, then shut up and listen. In his book, The 7 Habits of Highly Effective People, Stephen Covey calls the 5^th habit: “Seek first to understand, then to be understood.” If you understand what other people want and help them get it, you will wind up getting what you want as well.

Stage Two

By now you’ve met a bunch of people and collected a lot of business cards. What do you do with them? This is where the real work begins. Many people do all of the stage one activities and stop there. They’ll say that networking is useless or ineffective, for them it is. Many people you meet will be nothing more than contacts, you’ll wind up seeing them at other events but rarely will you go beyond a casual greeting. That’s to be expected and there is nothing wrong with that.

However, you will also meet people that you are truly able to connect with. Perhaps your life objectives are similar or your businesses overlap in some way. These are the relationships that you need to nurture. Grab a cup of coffee or share a meal and get to know this person. Focus more on developing the relationship than on any one transaction. People tend to do business with people that they like.

Stage Three

In stage three you have reached the point where people come to you. When you strive to help other people they will work to return the favor in kind. You become known as someone who is well connected and is a good source of information. This does not happen overnight, but it is well worth the effort.

In real estate you need to clearly define your goals and clarify your message. Go to real estate investment clubs and become known to others. Don’t ignore other groups just because they are not real estate related. If you are looking to buy distressed properties or pre-foreclosures, you can find leads just about anywhere. You may find that you are the only real estate investor in attendance and that certainly gives you an edge.

I have built several businesses over the years using the power of networking. It is an incredible tool when you learn how to use it.

One secret of success in life is for a man to be ready for his opportunity when it comes.
Benjamin Disraeli

Tags: networking, real estate, real estate investing

Another New Year is upon us, where did the last one go? Sometimes it seems like I’m still preparing to celebrate the new millennium, yet here we are almost a decade into it! With every New Year we have the obligatory resolutions, I’m going to lose weight, exercise, save money, get out of debt and so on. Yet the majority of those resolutions don’t make it past the first few weeks. If you need proof just check out the crowds at the local gyms, most of those people will be gone before spring arrives.

What happens to those resolutions? Resolutions, by their very nature, are doomed to fail. They are nothing more than vague wishes or ideas of what could be. To have a better chance of actually achieving something worthwhile we need to set goals. A goal differs from a resolution in that it is much more specific and has a date attached to it.

The SMART System

When setting goals you should follow the acronym SMART.

Specific

Measurable

Attainable

Realistic

Timely

Specific means that your goals are very detailed. Measurable means that they can be quantified and tracked to monitor your progress. Attainable means that they can be achieved with the proper effort and are not “pie in the sky”. Realistic means that they can be accomplished given the reality of your life and circumstance. Timely means that they have a set date to be achieved by.

I started setting real goals about twenty years ago. Prior to that I just had a general idea of things that I wanted to do. When I started setting goals I was able to create action plans to make them happen. It was at this time that I started having real success in life. Before that time I was just wandering through. Goal setting has since become an annual exercise with adjustments taking place as the year progresses.

The goals that you set should be a little bit of a stretch without being so difficult that they are impossible to achieve. In addition to business goals you should have personal and family goals as well. One important step is to share them with others. By openly stating your intentions you are holding yourself accountable. If you do not state your goals it is very easy to let them fall by the wayside.

Dream Board

About fifteen years ago a friend introduced me to a process that he called Dreams to Reality Mapping. The idea was to create a visual map of your goals, or a Dream Board. A group of us got together over beer and pizza and created these boards by cutting pictures out of magazines and pasting them onto a piece of posterboard. The board was then placed in a frame and hung where it would be seen on a daily basis.

The truth of the matter is that I was there for the beer and the pizza, I did not put much stock into any of this hocus-pocus. I did hang the frame up where I would walk past it everyday but I ignored it from that point on. A little over a year later something made me take a look at that board. I was absolutely shocked when I realized that I had achieved everything on it.

It’s not like I put little things on that board. I had a trip to Paris on there, I went there when I came across an unbelievable deal on airfare. I had an Acura Legend on the board, which, at the time, was way beyond my means. I also had my first rental property on there as well as some other minor things that also came to pass.

So how did I achieve all of this? I didn’t inherit money or marry a wealthy woman. What happened was that as I passed by that board every day the visual images were being imprinted in my subconscious. That daily reminder kept me working towards my goals and kept them in focus.

A Great 2008

As we head into 2008 take the time to write down some goals. Be as specific as possible and set a deadline. Share those goals with others and create your own dream board. Review those goals periodically and evaluate how you are doing. Was last year one in which you said “boy, I’m glad I did” or “man, I wish I had”? Now is your chance to make this a great year!

Tags: goals, landlord, real estate investing