All Forum Posts by: Daniel Moore

@Meghan Helbick I received the RD Hall of Fame in 2013 from Robert and Kim, and with that being said here is my take. The first free event is about an hour long expo of hype with a final sales pitch getting you to attend their 3 day seminar that will "end all your problems". The three day will give you a reasonably good oversight into the possibilities that can come from investing as well as the different strategies that you may be able to pursue. The three day class, for 199, really wasn't all that bad and a reasonable networking event.

DO NOT BUY THE ELITE TRAINING CLASSES.

The classes are "theory" more so than "application". RDE is such a large company they are hyper sensitive to litigation so make their education so mellow that you could Google a topic and come away with as much info. On the other side of that statement is that RDE is HUGE. I met many, many quality people, PM sources, as well as JV partnerships from these events. Again though, you can find these opportunities elsewhere.

Last and final disclaimer - I bought two RDE classes, and then after getting into the system I found that I could purchase unwanted classes from other students for as little as a few hundred a piece. I completed the entire RDE circuit minus very few classes (there's over 15 of em). Since attending RDE my business has skyrocketed and do not regret it at all; I just feel that if you are seeking education you can find much better at a far better price. 

Welcome to BP @Jim Robertson 

What he is asking for is essentially coercion and I wouldn't personally appreciate nor want to do business with anyone that has that approach to business. Had you listed it with another agent and sold it i think I could feel the agents complaint since they are doing a lot of work with you, but you sold it on a lucky walk through!

The downside is obviously that he could possibly cause some rift in the flow of your business.

Personally, I wouldn't pay somebody that didn't deserve it out of fear of recourse. I would distance myself from those types of people because in the long run when something really matters i would hate to find out their course of action then. 

 Using the same paint colors, as small as it may seem, saves a TON of time effort and money.

Also remeber, the "deals" that you pass on are often the ones that will make you the most money. So many new investors "starving" for a deal will try to turn everything into "deal". Learn to quickly decide what to focus on and drop the leads that are not worth pursuing.

Thank you everyone

That is a very common question and always falls back into what is your goals and current financial abilities. For some people taking the quick forced appreciation and rolling those gains into more forced appreciation until there are pockets of cash that can be set to the side for long term cash flow (as well as many other benefits like amortization, irs depreciation, economic appreciation, inflation etc). For many just starting out that don't have large amounts of capital like to do wholesales/rehabs to create the capital necessary to buy the cash flow, and often once you get the cash flow the capital gains are always great to maintain the cash flow.

I always look at a property deal by deal and look at what the COC returns would be, and what is the best use of my resources. Can i spend 60k today and receive 1000k a month in cash flow, or could I take a 40k capital gain and use that infusion to purchase 1500k a month in cash flow with minimal leverage?

The most important in my opinion are the basics - name, address of property you are looking to sell, best form of contact, how much do you want, and how did you hear about us. Some easy questions to ask that "help" gauge motivation is how much do you think the home would be worth if it was in perfect condition, and then ask how much are you asking. This is by no way the "answer" but if somebody says that there house is worth 100k fixed up and they want 20k that there may be some play time. If they say it's worth 100k fixed up and they want 95k for it then unless you adjust your strategy and work other options a cash purchase probably isn't viable

IF you are shy on the phone or nervous the above will at least let you pull comps and get back in touch with the person after you have collected your thoughts. 

Other key things would be to ask a lot of open ended questions to get the seller talking like "can you tell me a little about the house?"  Hopefully that question will open up a flood gate and get the seller talking about the house telling you beds bath etc etc. Other questions can be "can you tell me a little about your current situation?" when people open up and talk it creates a connection and people like to do business with there friends. Building rapport before negotiating has always worked well for me.

One close that works really well for me (and many probably won't agree) is I start by offering double what the ARV would be. It really throws the seller off because they are expecting a low offer and a difficult negotiation. Once i broke the ice on price the seller is normally joking/laughing now. I then explain that obviously that number would be great for them, but probably wouldn't be the best move for me. I then jokingly offer then about a 1/4 of what i want to buy the house for and immediately say, but that probably wouldn't work for you would it. By offering in that manner i can start ridiculously low without being offensive and has worked very well for me.

If you want to see the questions that i ask you can go to paymeretail.com and fill out the first form and it will take you to a list of follow up questions that i try to get. If you fill out the form please put your name down as TEST so my assistants know not to follow up with you.

My number one piece of advice is marketing. It's the absolute most important thing that can drive your profitability; whether you are marketing yourself by social networking, direct mail, on-line presence, mass exposure etc. it's imperative to creating consistent deals.

Once you get the leads follow up.

And just a general response to the "only take advice from someone in the business more than 20 years" - I would personally revise that to say "only take advice from someone his is where you want to be". Putting an age on someones success or ability is very limiting and could stall your success.

@Dmitriy Fomichenko thanks for all of the great tips! I will get great use from the key word searches.

And  I probably should have proof read that before posting ;)