Epic Real Estate Investing - Battle - Tested Debt Strategies & Real Estate Lead Generation Secrets Revealed | 1266

Episode Date: May 18, 2023

Step right up and prepare to be blown away by an electrifying journey through the exhilarating world of wealth creation! The Epic Real Estate Investing Podcast is here, dishing out red-hot strategies and explosive insights that'll have you gripping the edge of your seat, hungry for more! In this adrenaline-fueled episode, we're cracking the code to liberate you from the suffocating grip of debt! Brace yourself as we plunge into the epic clash of debt demolition titans: Debt Avalanche, Debt Snowball, and Debt Delegator! Who will emerge victorious as the undisputed King Destroyer of Debt? You'll have to tune in to find out! But wait, there's more! We're also serving up the ultimate face-off on how to unearth good real estate leads! Uncover the astonishing technique that skyrockets your lead generation success by a jaw-dropping 92%—and it all boils down to THIS ONE SIMPLE TRICK! Prepare to unlock the hidden treasures of real estate mastery and rocket your investing career into the stratosphere! And, as the cherry on top, we're treating you to our tantalizing Deal of the Week, a heartwarming spoonful of Good News, and the freshest, most buzzworthy scoop in Cryptocurrency! This action-packed episode is brimming with value bombs designed to ignite your passion and propel you to victory in the thrilling quest for financial freedom! So, what are you waiting for? Don't miss this opportunity to supercharge your wealth-building journey! Hit that play button and let the battle for financial freedom begin! P.S. Whenever you're ready... here are 3 ways I can help you become the healthy, wealthy, beast of an investor God designed you to be: 1.    Become an Epic community member at “Epic Real Estate Investing.” One of Mercedes’ and my favorite things to do is share with investors real estate trends, interesting guests, and housing market news. We do it every week, and you can listen in by subscribing to Epic Real Estate Investing on Apple Podcasts - Click Here. Or WATCH HERE on YouTube. 2. Become an Epic partner (I'll pay you) If you want to go deeper and further as a real estate investor, looking into my partner program to help you get your first deal might be the move... take the first step here for free. 3. Work with me One-on-One If you'd like to work directly with me on your business... meet me here, answer some short questions, and we'll hop on the phone to brainstorm some cool ideas for you and your market. Also...check these out :) FreeEntity.com (Need an LLC? Get one for almost FREE) DealEngineer (Most powerful data for finding motivated sellers) TrueProfit.net (Less stress and greater profits for your real estate business) Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Ladies and gentlemen, boys and girls, fasten your seatbelts and prepare for a ride through the world of wealth creation like you've never experienced before. Welcome to the epic real estate investing podcast, where we're serving up sizzling strategies and explosive insights that will leave you on the edge of your seat, Craven More. In today's power-packed episode, we'll be unearthing the secret formula to break free from the shackles of debt.

Get ready to dive into the battle royale of debt obliteration strategies. Debt Avalanche versus Debt Snowball versus Delegator. Who will come out on top as the King Destroyer of Debt? But that's not all. We're also bringing you the ultimate showdown on how to find good real estate leads. Discover the mind-blowing technique that can increase your lead generation success by a staggering 92% just by doing this one thing. Get ready to unlock the secrets of real estate success and catapult your investing

career to new heights. And as if that wasn't enough, we're topping it all off with our deal of the week, a heartwarming dose of good news and the latest buzz in cryptocurrency. Stay tuned because this episode is jam-packed with value bombs that'll have you fired up and ready to conquer the world. Let the battle for financial freedom begin. Hey, strap in! It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing stores. strategies and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com.

Let's go, let's go, let's go, let's go, let's go, let's go, let's go. Let's go. Listen up, if you're serious about paying off your debt, you need to know about these three methods, the debt avalanche, the debt snowball, and the debt delegator. And even though I'm an advocate for taking on more debt to build wealth, I'm not ignorant to the fact that there is such a thing as bad debt. So if you've got some that you'd like to wipe out, let's do it. And let's see if we can do it as fast as possible, as easy as possible.

And let's see if we can actually make some money along the way. So the avalanche and the snowball are the two most popular strategies for getting the job done. The delegator strategy, though, not so popular. And only because very few people know about it. I mean, if they knew they could pay off their debt and make money at the same time, I'm sure it would be much more popular. Regardless, I'm going to give you all of the information that you need so you can choose which one of these three is best for you.

All right, let's start with number one. the debt avalanche. It's a debt payoff strategy where you focus on paying off your debts with the highest interest rates first. The logic is that your debt with the high interest rates are the ones that are costing you the most money in the long run. By paying them off first, you'll save money on interest and be able to put more money towards paying off your other debts. So let's say you have three debts to your name, a credit card with a 20% interest rate, a personal loan with a 10% interest rate, and a car loan with a 5% interest rate. If you use the debt avalanche method, you would prioritize paying off the credit card first, then move on to the personal loan, and then finally,

the car loan. But what about your other debts? I mean, won't they keep accruing interest while you're focused on paying off the high interest ones first? Yes, the debt avalanche method assumes, though, that you're making minimum payments on all your other debts while allocating more of your money to paying off the highest interest one. So you're still making progress across the board by saving the most when it comes to interest payments. The debt avalanche, though, it does take some discipline because depending on the amount of debt that you have, it could take a while before you actually recognize any real progress. But be patient as all the fun happens at the end, meaning the avalanche. You know, just as the literal large mass of snow starts rolling down a mountain

gaining momentum, so does the momentum of paying off your debt. It gets easier and faster as you go. Now, number two, the debt snowball. You know, the debt snowball is where you focus on paying off your debts with the smallest balance first. The logic here is, it gives you a sense of a common. and the motivation that most need to keep going. So if you have a credit card with a $500 balance, a personal loan with a $1,000 balance, and a car loan with a $5,000 balance, the credit card gets paid off first,

then the personal loan, and then finally the car payment. Like the Avalanche method, it's assumed that you're making minimum payments on all your other debts, too. Your savings and interest payments, it may be less, but the motivation to stay the course may be even more valuable for you in the long run. The debt avalanche, you save more money, but it takes longer to see progress.

the debt snowball may cost you more, but you see progress quicker. So which one is better? Well, like most financial questions, it depends. If you have a lot of debt with high interest rates, the debt avalanche might be the better choice for you. However, if you have a lot of small debts that are weighing you down, the debt snowball might be the better choice for you. The ultimate decision, though, really comes down to your own self-awareness.

I mean, are you cool with all the rewards that come with delaying gratification, or do you need immediate gratification? I mean, you know your situation better than I do, and I won't judge you either way. Now, there is another way where you don't actually pay the debt down at all. Someone else does it for you. It's an alternative method that I subscribe to almost exclusively. And there are many other alternatives that you might have heard of,

like balance transfers and debt consolidation, biweekly payments, snowflake payments, the high-income earner plan, debt settlement, proportional payments, the debt lasso method, but that they all require, to varying degrees, patience, discipline, and sacrifice. No thing. I use the debt delegator method to pay my debts. and it's just like it sounds. I literally delegate my debt payments to someone else. I mean, why would I want to pay them if someone else will volunteer to pay them for me? Here's the gist.

Rather than being reactive about your financial future, give proactivity a world. Like Monique, a hardworking single mother of two. She had always struggled to make ends meet, and her debts had been piling up over the years. And despite her best efforts to pay them off, she just couldn't seem to get ahead. Then one day, she stumbled upon a podcast discussing a new debt payoff strategy called the debt delegator method. Intrigued, she listened, learning about how she could invest in an income-producing asset like a rental property to help pay off her debts. At first, Monique was skeptical. I mean, she had never considered investing in property before, especially given her situation, and the idea seemed very counterintuitive. I mean, take on more debt to pay off debt. But she

listened and the potential benefits were starting to make sense. I mean, what she had been doing wasn't working, and if she wanted a different outcome, she would need to do something different. So, determined to take control of her finances, Monique decided to give the debt delegator method a try. She found a small rental property in a nearby town and was able to arrange a loan with a local bank. She set up the special debt delegator bank account and had the rental income directly deposited into it. And to her surprise, it was as advertised. Monique found that the rental income was enough to cover the monthly loan payments and even leave a small monthly profit for her. With that extra income, Monique was able to make automatic monthly payments towards her debts without having to worry about missing a payment.

or sacrificing other areas of her life. Over time, Monique's debts began to decrease, and her confidence grew. She was able to pick up another rental property, too. And for the first time, financial freedom was within her sights as she watched her debts get paid off, and she realized that she would still own the rental property once they were. Thanks to the debt delegator method, Monique was able to not only pay off her debts, but also built a brighter financial future for herself and her family. She had learned the importance of being proactive with her finances and positioning herself

properly to make her money work for her as hard as she had worked for it. So the benefits of the debt delegator method are threefold. First, Monique wasn't paying down her debt. Her tenants were paying it down for her. So that's nice, but it's not the nicest part. The second thing is, once Monique's debts are paid off, she will still own the rental property or properties in her case. Rather than being at zero, as she would have been following the avalanche or the snowball

method after paying off her debt, She will own two income-producing assets that appreciate, depreciate, and pay for themselves. She will hardly be at zero. She'll be way ahead of the game, in fact. And third, she's on the fastest path to financial independence that's available to the average person, by creating streams of cash as opposed to struggling to make mountains of it. And that's how you pay off debt and make money. We'll be back with more right after this.

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get good real estate leads, the type of leaves that will actually sign your contract. Because right now, they're ghosting you, aren't they? You're tired of chasing them. You're tired of sitting around the phone, wait for them to call back, and it's just nay, nothing going on. I mean, it's like a horror movie when your leads just vanish into thin air. And all you want to know is, how do I get good real estate leads? I mean, you've done your absolute best that you can to generate what you've got.

But it's still a real bummer that it takes eons for them to convert. Or they just end up saying, nope, sound familiar? Yep, I bet it does. Which is why, if you're struggling with converting your leads, I've got something very special for you today. Actually, two things. One, this is a very common real estate investor and real estate agent problem, so don't throw in the towel just yet.

And number two, I've got the magic potion for you. Trust me, you can convert way more leads than you're converting right now. And yes, you can land those motivated sellers that you absolutely deserve. That is, if you know how to approach those leads with the right strategy. It's a strategy game. I'm good at strategy. But first, let's look at who you are targeting. A good real estate lead for a real estate investor is a lead that has a problem.

Because no property owner really in their right mind is going to sell you their property at a discount unless they have a problem. The types of problems I'm talking about are owning a vacant house. That's a problem. Or being behind on your mortgage payments. That's a problem. Or having a tax lien being behind on your property taxes. That's a problem.

Those are the types of problems we want to look for. But you know it's better than a problem. A crisis. Crisis. A crisis. So to find better real estate. estate leads, start looking for the crisis that's going on because where there's crisis, there is cash and there is cash flow. And what constitutes a crisis is a property owner that's

dealing with multiple problems. So you want to look for the property owners that own a vacant house that are also behind on their mortgage and also have a tax lien attached to them as an example. But you can stack all types of problems on top of your marketing list, like any type of lien, an HOA lien, a sewer lien, a solar lien, you can look for drugs and death and disease, you can look for divorce, you can look for properties in probate, you can look for bankruptcy, you can look for people downsizing, you can look for properties that have judgments on them. You can look for properties that are in foreclosure, whether that's pre-foreclosure or they've been foreclosed on. Frustrated landlords, that's another really good source. And if those frustrated

landlords live outside of the state or where their property resides, that's another good problem potentially. So those are the types of problems that you're looking for, but when you start stacking them on top of each other, now you're looking at a crisis. And your percentages of finding a good real estate lead are so much more. But, But still, if you went out there and you found a bunch of property owners that owned vacant houses that were behind on their mortgage and had a tax lien attached to their property, that still doesn't mean they are going to be motivated to sell to you at a discount. In fact, most of them won't be. But you can take it a step further. Of all those problems I just ran down, that's all public information that all of us can easily find through a multitude of different platforms.

But all of those problems are attached to the property. What if there is a way you could actually look now at the personal problems of the property owners? Then you could take the biggest personal problems of the property owners and the biggest problems with the properties put those together and really increase your odds of finding motivated sellers, of finding really good real estate leads. So how do you do that? Well, there's this new thing in town. You've probably heard of it. Everyone's talking about it. AI, artificial intelligence. And there are services out there that allow you to dig more into a person's personal situation. There's only one platform out there that I know right now that has both. It has the property problems and it has the artificial intelligence to dig in and find the personal problems. And that platform is deal engineer. And it's where I'm getting most of my good real estate leads right now. And there are other great platforms out there that I subscribe to. In fact, I subscribe to a bunch of them because they all have their little unique features.

There's a lot of overlapping gray area between all of them. But each one has their all little unique features that I find really valuable. Like Priddy's got some great features. PropStream has some great features. Deal engineer that I mentioned. Deal machines has really some really cool artificial intelligence features. And then property radar and another really great service. So pick your platform and just go from there and start building marketing lists with multiple problems.

We're going to stack those problems on top of each other. And that will generate a highly targeted list of where you're going to have a higher concentration of the potential motivation that you're looking for to get those good real estate lead. So now that you've got your list, how are you going to get them to call you? How are you going to communicate? How are you going to engage with them? Well, there's a bunch of different ways. You're probably already deploying a bunch of different marketing strategies. But there's one thing that I'm doing right now that I'm getting an amazing amount of success with.

I'm taking these small little hyper-targeted lists, and I'm sending them personal letters. I'm sending them handwritten personal letters. And these letters address the person individually, specifically about their current situation, about their challenges. It presents all the different solutions that I provide and how I solve those challenges. And then it paints a really nice, beautiful picture for them as what life is going to look like after we get these problems behind them. And that might sound like a lot of work of having to go and handwrite a bunch of letters

of personal letters to this list, but it's not. And this is another way that I'm using artificial intelligence. It's writing these letters for me. And it's really easy and it's almost free to do. So here's what I want you to do. I want you to go to openaI.com, open up a free account, and then access chat GPT. That's the artificial intelligence that you are talking to,

and you're going to make a request or what they call a prompt. And you're going to tell chat GPT to write you a letter to this group of people with these challenges, share the benefits, of working with you and then paint a nice little picture of what life is going to look like after we get all of this resolved. And I did you a big favor. I'm just going to give you the prompt. So you can just copy and paste it, put it in a chat GPT, and you can generate the same type of letter that landed this deal right here. And I only sent out 37 letters to that list, and I got three follow calls and one of them turned into this deal. And the prompt is just fill in

the blank. So the whole thing is written for you, all you have to do is type in the list that you are sending to. So if you are sending to a probate list of vacant houses that are behind on their property taxes, all you have to do is insert that into the prompt, and it will write you a letter specifically for that person. Here, watch. To copy, I'm going to hit enter and there it goes. The letter is done. Now, I take that letter, and I use one of the handwriting services that are available out there. Ballpoint marketing is a really good service. I use them all the time, but what's really convenient and I using more and more right now is the personally penned letters that are actually inside of deal engineer. So I really don't even have to leave deal engineer. I can generate my

a list there with the property problems, with the personal problems, and then send them one of these handwritten letters right from the software. So that prompt that you're just going to copy and paste into chat GPT to write that letter for you, I put it right there in the lead tango playbook. I'm going to get it to you for free here in a minute. But before I do, let's prepare ourselves for what our strategy is going to be when these people start calling us. So over here at the, we use something called the conversion quadrant, and it looks like this. And most investors' strategy is right down here in this lower left quadrant where they essentially play bad cop. Now, they don't mean to be the bad cop.

Sometimes it's on purpose, but most of the time it's inadvertent. It's unintentional. But they walk in to meet with the seller with this adversarial mindset. Like, it's me versus the seller, and I'm going to write them down. I'm going to try to get the price as low as I possibly can. So it's me versus the seller. Someone's going to win, someone's going to lose. That's how a lot of investors will go into that meeting.

And some of them are brand new, but a lot of them have been doing this for a very long time. And then when it's time to actually present the offer, it's the buyer's idea. The investor says, this is what I can give you. And so that's right down here, the buyer's idea. And what you'd have right here, your relationship with the seller, you're going to get a lot of resistance. And more times than not, those seller interactions are going to end up in no deal. But there are a lot of real estate investors out there that are winning right here. But what you need to win down here is you need a big marketing budget. You need a lot of leads because you're going to burn through a budget when you approach them like this. And sadly, this is where most people operate from. And most of the time, they don't even know it. It's a total accident. Now, the next strategy you could deploy, where the second biggest group operate from, is right up here, where they're still playing this bad cop role. It's me versus the seller, but this time, the offer was the seller's idea. And what happens is investors, particularly

the newer ones, get beaten up down here so much that once they finally find a seller as polite, willing to talk to them, they've demonstrated a little bit of motivation, might not be exactly what they need to put the deal together, but hey, at least they're going to sign my contract. And so people will operate up here. And sometimes it works. Sometimes it works really, really well. But your problem here is your relationship with the seller. They are the ones that said what they sell their property to you for. And although it might not have been full market value, it still might not have been low enough for you to put a deal together. And as a result, your relationship with the seller is they are your boss. They're calling the shots. And what happens to your transaction is they become

a real struggle. And most of the time you're experienced, though, is you're canceling a lot of contracts. You're answering a lot of phone calls from the sellers. They're asking, why haven't you close yet? What's the stall? Why haven't you removed your contingencies yet? What's going on? And what's really happening is you didn't get the deal that you thought you got and you can't find the money, you can't find a buyer. So you are stalled and you end up canceling a lot of contracts up here. And sadly, a lot of people the last three, four years have been operating up here and not even knowing it because they've been winning. You know why they've been winning is because the market has been rescuing them because the market is to rapidly appreciating. So even though they might have

got a really good deal initially here after 15, 30 days, the market was appreciating so fast that now all of a sudden they do have a good deal and they weren't able to find. buyers because there was a feeding frenzy out there for real estate. Well, now that we've pulled back into a more of a normal market, that strategy is not working as well. And a lot of investors are out there getting hit with a really tough dose of reality. So the only way that you can win up here is one of two ways. One, you need an appreciating market to save you, or two, you need a really big buyers list. And by taking on that strategy, what you're really saying is, I need the buyers list so big that hopefully I can go out there to the open market and find a sucker bigger than me

to buy this house. Now, the next strategy you could deploy is down here, where we do something a little bit different in Epic. We don't position ourselves against the seller because they called us with a problem. So what we do is we team up with the seller to help them out with our solution. So we play Good Cop. We're on the seller's side. But the only way Good Cop works is if there is a bad cop. So what we do is we position the market as the bad cop, and we are the good cop. So Mr. and Mrs. Seller, we'd be happy to do whatever he wants to do as long as the market doesn't get in the way, we're here to serve. That's the positioning of your relationship with the seller.

And a lot of people that come to Epic for help, they're thinking, wow, I get to go buy houses, I get to help people in distress, and I get to make a lot of money in the process. And it's a lot of fun to do business that way. But they don't have the actual skill in the beginning to figure out how to get up here, where it's the seller's ID and it's a good deal for both of you. So they're still down here where it's their idea, the buyer's idea. And so what happens in your relationship with sellers is that they like you, they want to work with you, but because the offer was your idea as the buyer, you get a lot of doubt from seller.

They ask a lot of questions. Like, are you sure that's as much as we can get for the house? I like you all in a world with you. Are you sure I think the house down the street is sold for a little bit more? Is this as much as you can get us? So the sellers are downing you because you came up with the offer. And these transactions go really slow. And the consequence over here is a lot of times the sellers will cancel the contracts.

Up here, it's you having to cancel the contract. Down here, a lot of sellers will cancel the contract. You know what? I think we've run our course. I'm going to go try another investor. I'm going to try a real estate agent. But if you've got them to accept your offer, a lot of times these will close too. They just go a little bit slow.

Now, the promised land is right up here, where you are the good cop, the market is the bad pop, and the seller actually comes up with the idea. The seller comes up with an offer. they give you the number and they give you a number that you like. And that takes a little bit of practice. It takes a little bit of positioning. And it takes asking the right questions what I'm going to get to next. But when you can function up here, you get cooperative sellers and you had easy transactions.

So look at this conversion quadrant here and think about your last deal. Picture of the seller's face. Picture the front of the house. Maybe you know the address. Maybe you know the phone number. And he was just the voice. Picture the last one that did not go through for you. Which one of these quadrants were you most likely operating in?

Were you down here where most people aren't? Or were you up here and hoping that the market wouldn't save you? Were you down here in? You're trying to be the good guy. You're trying to be the good girl. But it just didn't work out. And you don't have to be 100% in one of these. You could straddle the fence a little bit.

But which one were you in most of the time? I bet you know, I know you're already thinking about it. And you know what there is to do different next time. All right. So now you have your strategy. What are you going to say when they actually call? What's going to be the objective here? If you've been trying to close your deals on that very first interaction with a seller,

that's probably a reason you feel you don't have good real estate leads. It happens very rarely that that deal gets closed on that very first phone call. And if it does, you should probably be a little bit suspicious. So knowing that, you want to make sure you have clear objectives going into this call. And it's really threefold. One, you want to build rapport. You're dealing with people with problems. They're looking for a friend.

They're looking for help. They're looking for someone that they trust. They're looking for someone that they like. Got to build rapport. That's objective number one. Objective number two is you have to sort. You have to sort those that need to sell their property from those that want. to sell the property.

Us is real estate investors, we're looking for the people that need to sell. Real estate agents, you can group with both. But real estate investors, we're looking for those that need to sell. And the third objective is you want to set an appointment. You want to set an appointment to go over and view the property

so you can go and present your offer. Real estate agents, you want to set an appointment so you can go over and conduct your listing presentation. Now, there are a lot of different approaches to this. There's more than 100 ways to skin this cat. And you probably recognize that because everybody's got their own killer script that you can read from that's going to do all the magic. it for you. I used to subscribe to scripts. I loved scripts. I wanted to know everything to say in any

particular situation. I was really afraid in the beginning that I was going to look dumb and stupid and they could see that I was brand new and I was going to just maybe be embarrassed and mess up the deal and lose money. I didn't want to do that. So I practiced, drilled and rehearsed my scripts backwards and forwards. I knew them inside and out, I mean, there were second nature to me. But if you do that, and there's nothing really wrong with that, but what you will realize once you go out into the real world is that as good as you know your script, the seller doesn't know theirs. And you'd get draw off really, really easily. So we made this transition over here in Epic to work from a framework. It's a nine point framework. And we just have kind of nine major points that we have to hit in

conversation with the seller. And they don't necessarily have to be in sequence. So where the conversation leaves us, doesn't really matter as long as we can check all of these boxes by the time that conversation is done. And we call it a nine point seller interview, interview being the operative word. Because what are you doing in an interview? You ask questions. And that is key. and you have to ask the right type of questions. You don't want to be the amateur out there, wasting a seller's time, wasting your time, frankly, how many bedrooms does it have, how many bathrooms is it had, what's the square footage, all those types of answers that you can find easily on the internet.

No, you're there to build rapport. You're there to sort the needs from the wants, and you're there to set an appointment. Don't waste your time asking questions that you can find out on your own. So first thing, you want to set the stage, that's box number one. Set the stage, take control of the whole situation, because you want to be asking the questions. you're the interviewer. The person that's asking the questions is the person that's in control. If you ever find yourself answering more questions than you're asking, you are not at control. But it's really easy to get back into control. Just answer the question and then follow it up with your own question.

And boom, you're back in control. The other part about this that's going to build rapport is when you're actually listening to the answers. Make sure that this is an interview and not an interrogation. It's a conversation. It's personal. You're dealing with another person that's going through something right now. They called you and said a real estate agent because they got pain somewhere. They're looking for empathy, they're looking for a friend, they're looking for support, they want someone that they can trust and someone that's actually going to help them. They just got your weird little yellow postcard and they're like, what is this? Is this really the answer to all of my problems? That's the skepticism that they're initially reaching out to you with. So understand that and embrace it. Hey, I know you

don't trust me yet. So let's just talk until you do. So you want to set the stage right at front. Hey, thanks for calling this man. How can help you? Well, I got this little yellow postcard in the mail of you could buy my house. Great. You know, most people that call me off that yellow postcard, They want to know two things. They want to know how much they can get for their house and how this all works. Do you have those same types of questions? Well, actually, I do. Perfect.

I just need to ask you a few questions. You got about 20 minutes to do that? Yes, I do. Great. So after we're done, you can ask all the questions that you've got. And then I can give you a couple options. You can tell me how you'd like to proceed. Is that fair?

Boom. Stage is set. Box one, done. Now, box two, we've got to get the seller's information. We need their name, of course. What's the property address? We probably got their phone number because they call us. And if we can get their email address, even better because we need all that information because we know, most likely this deal is not going to close on this first call.

So we want the ability to follow up. That's what the fortune is, right? Number three, we're going to ask about the property. So Mr. Seller, can you tell me what's the general condition of the property? You just need the general information and you got to listen because whatever answer they give you is going to start formulating the seller's offer. If they tell you it needs a new roof, bang, you're factoring that into your offer. They said it, not you. So you want them to talk.

You want them to tell you as much as they possibly can about the problem. property because you're going to be taking notes and all of that stuff is going to be factored into your actual offer. And the way it will be presented, the way it'll land for the seller is like, wow, I guess that's what I said. That's what you're going for. So if you just tell me the general condition of the property and you want to try and pull something out of them, some people might say, hey, it's perfect condition, needs nothing. And we know no house is absolutely perfect. Even brand new houses need repairs. So I like to ask this way now. Well, let me ask, if you've got to stay there another five years or so, what are three things that you know for sure that you would tend to?

And you want to pull something out of them because whatever they give you, that's going right here into the offer. Then you want to know, are they living in the property or not? Are you going to be dealing with the owner themselves? Where you're going to be dealing with tenants or is the house vacant? And then you want to know if they know what it would rent for if you turned it into a rental. And now you're going to give them the ability to tell you everything that they want to tell you. Well, great, Mr. Sellers, is that anything else you think I should know about the property and just let them talk and ask a lot of questions. Like, really? How so? Why is that? How come? And just keep them talking, keep them talking. Because the more information that they

give you, the more rapport that's being built, and the more information that you have to go ahead and put your offer together. Now, box number four, this is about the motivation. The motivation is really key. If there's no motivation, there's probably not going to be any deal. But this is the part that sellers like to keep close to their vest. They don't want to share this information because that's personal. They don't know you yet. They don't trust you. So you have to ask in a certain way, and you have to ask in a certain way. And you have to ask you a little bit of a different answer each time. A lot of times it won't even be the truth or will be a half truth. But by the time you ask it the fourth or fifth time from a different angle, now all of a sudden the picture starts to create

itself. So when I'm talking to a seller, I like to play the role as the reluctant buyer. I'm real estate investor, I buy a lot of properties. I can't buy them all. Why should I buy yours? That's my disposition when I'm talking to a seller. In box four, my next question would be, well, gosh, thank you for telling you about the property. It sounds like a really nice property. I just got to ask, why would you sell it? And let them talk. And they'll give you their answer. Okay, I understand. Well, how long have you been thinking about selling it? So that's the next question. And the third one is going to reveal a lot to you. And a lot of people are afraid to ask this question. But that question is, you know what? Why don't you just call a real estate agent?

Why did you call me? And they're going to tell you, never once ever have I asked that question. And the seller said, hmm, I never thought of that. That's a good idea. Thanks, I'm going to go call my agent. That's never happened. So don't be afraid to ask that question because it's just another way of asking why are you selling? Either they don't want to fix it up, they don't want to pay commissions, they don't like real estate agents, they need to move fast, whatever it may be.

Next, box number five are about the encumbrances. What's going on with the property financially, what's going on with it legally as it pertains to taking tight. And this is the way I like to ask. This is how a good cop would ask. You know, Mr. Seller, if I were to buy this property, would I have to pay off any mortgages, any judgments or liens? You see, those types of questions asked incorrectly can feel a little bit intrusive, particularly this early in your relationship with the seller. So as a good cop, I'm like, hey, if I were to buy this property, would I have to pay all this stuff off for you? And all of a sudden, the seller's got some framing around this whole thing as, wow, this person's going to pay all this stuff off for me? And then I'm going to tell you, yeah, I owe this watch on my mortgage, or I'm behind on my taxes, or I got this judgment or this lien, whatever it may be, and I'll let you know. You have a general idea of how much that would be. Okay, cool, no problem. We see it all the time. That's another position you want to take.

As they're sharing their problems with you, it's okay. You see it all the time. No problem. Everybody goes to a rough patch. Don't worry about it. I got you. And that will start to break down barriers. That will start to build a relationship of trust.

That will build a space of comfort where they're comfortable talking to you. Now, number six, has to do with the property's value. You want to ask this at a very specific way because you can easily mess this up and start yourself way too high on the negotiation spectrum. And this is where we first introduced the market as the bad guy, even though it's subtle. And the question will be like this. You know, Mr. Seller, I'm going to go ahead and take a look, do some due diligence and kind of see what the area is doing and what the market looks like as it pertains to your property.

But do you have an idea as to what properties like yours are selling for? I didn't ask them how much they want for their property. I didn't ask them how much they thought their properties were. I asked them, do you have an idea as to what properties like yours are selling for over here in the big bad market? It's subtle, but it's significant. And then when they give you an answer, then it's great. The house down the street sold for $100,000.

Well, what is the lowest price you would take for yours? And you'd be quiet and you listen. Well, I couldn't take anything less than $90,000. And then just like that, asking those specific questions in that sequence, just saved you $10,000. And then you're going to ask one more time. Well, gosh, since I'm paying all the closing cost, Mr. Seller, and under the right circumstances, would that number be at all negotiable?

And then I say, hell no, or then I say, yeah, maybe, or I say, of course. But you have to ask those questions because what's coming out of their mouth is formulating their offer. The words came out of their mouth. It's the seller's idea so far. You see how that works? Perfect. Now, box number seven, this is what we call the problem check-in. And this is key.

There's a classic book out there, Stephen Covey's seven habits of highly effective people. And one of those habits is first seek to understand before being understood. And this is where we're going to seek to understand. It's a huge rapport builder. You don't want to skip this one, even though you may feel inclined to. Do not skip this. Sellers are going to sell to the people that they like and trust and the people that they have confidence. And this question is going to make you really, really likable because you are showing that you are interested in the seller.

Because that's how you become interesting. You be interested. And so it sounds like this. You know, Mr. Salar, you know, I've got all these notes here. Let me just run down, make sure I got everything correctly. You know, your house, it's in pretty good condition. It's vacant right now. It could rent for, say, $2,000.

You wanted me to know that it's in a nice school system, and it's got a really nice corner a lot. And it's really put, and you've kept it up really well. So I really appreciate that. Thanks for sharing that with me. And then you're thinking about sell it because you just lost your job. I'm really sorry for that, but you've got to move and you got to move fast and you just don't have time to wait for a real estate agent. And you own the house free and clear and you think the houses in the area like yours are selling for about $100,000. You would take $94 and out of the right circumstances that would possibly be negotiable.

Did I miss anything? So all you're going to do is just run down everything that you wrote down, everything that the seller shared with you. Make sure you got everything. And then you're going to ask them, did I miss anything? And this is their opportunity to tell you more. But if they don't have anything else to tell you, then you're ready to move on to box eight. Well, perfect then. Mr. Seller, what would you like to have happen?

That's a very odd question. And even if you know what they want to have happen, still ask it. It's like this. If you didn't watch the show Pond Stars, you know, the first one walks into the store and walks up to Rick, the owner, and shows them their little thing that they're trying to unload there, and they tell them all about it, and they go through the history and why it's valuable, and then Rick kind of chimes in and says, yeah, it is valuable because of this, and did you know this about that? And they had this whole conversation and go and have this exchange going back and forth,

kind of like they're having their own tango. And then Rick asks, great. what do you want to do with it? And he's waiting for the answer. He wants the seller to tell him. He wants it to come out of their mouth. Do you want upon it or do you want to sell it? Because that's part of what makes it the seller's idea.

You're not operating on assumptions here. Even if you know exactly what they want to do, even if they already told you. There's another video here on YouTube of me taking a live call with a seller, and it was going really, really smoothly. And I got all the way to the end to this question. And I said, so, what would you like to have happen? And the guy was from Louisiana and his big, strong accent. He says, well, I'd like you to buy it, silly.

And I was like, well, thank you. Okay, let's move forward. It was the seller's idea. It came out of his mouth and it came out of his mouth with intensity. It came out of his mouth with emotion. Now we know where we're going. I said, great. So if I or anyone else could make that happen, would this be a later or a sooner thing?

Now I know they want to sell it. So now I'm going to ask, how soon do you want to sell it? How urgent is this for you? And that's going to give you an idea as to how much time I'm going to spend with this person. Is this person really a need or they want? Then the last thoughts, we're just going to set the appointment. And we call it a transition agreement. You want to use these transition agreements at the beginning and at the end,

all correspondence, all conversation, all exchange with the seller. I have it all scripted out what you could say, an idea of what you could say. But it's a really simple formula. This is all you have to do. It's one, what's next? What are the possible outcomes? And three, whatever you say is 100% okay with. And so this is what am I sound like.

Okay, Mr. Seller, I guess whatever to do next. I'm going to go ahead and conduct a little bit more due diligence on the property, kind of look at what the mark is doing as it pertains to the value of your property specifically. And one thing I can tell you right away is that if I come across anything where it comes up where I don't think it's going to be a good fit for me, I'm going to call you and let you know right away. I want to waste your time. I don't waste my time. Is that fair?

Perfect. And at the same time, can you kind of extend to me the same courtesy if something comes up when you change your mind or if it's not, you're not feeling good. It's not going to be the fit for you. You call that me know right away. Fantastic. I want you to know, however it turns out is 100% okay with me. I don't expect to buy them all, but if we can put this together, then we can.

As long as the market doesn't get in the way, we should be good. All right? So I could come over later on tonight and take a look at the property or first thing in the morning, which will be better for you. So, boom, you built rapport. You have now sorted, you know, whether you deal with something that wants to sell or needs to sell, and now you have an appointment. So do you have a good real estate lead now?

Maybe, maybe not. So do we have a good real estate lead or not? You know, it all depends on your expectations. And here's how we look at it. We're typically dealing with one of four types of people, and this is how we categorize them. So we've got red apples, we've got green apples, and we've got brown apples, and we've got rotten apples. That's how we categorize them. And so of your red apples, these are the sellers that need to sell.

You're looking for the red apples. The green apples are those that want to sell. And the brown apples, these are the apple that we call Curious. Hey, I got this little postcard from you. What's this all about? And then we have the rotten apples. And we refer to them as crape. Effectually, of course, about 3% of the people that we talk to will be red apples.

12% will be green. And then 70% will be brow. And about 15% will be our crazy one. And they're not really crazy. They're just kind of going through a bad patch in life. They're a little upset. And who knows what's going on in their world. But they just decided to give you a call and take it out on you.

This doesn't happen very often. In fact, it hasn't happened to me in a really, really long time. So I think a lot of the rotten apples have kind of left the market. I don't know. Maybe the vibe and the mood has changed, but it doesn't happen very often anymore. So to get good real estate leads, it all has to do with how you manage your time. How much time do you spend with each one of these categories? Well, this is our formula for success.

What we do is we spend 90% of our time with the red apples. We spend 10% of our time with the green. So that pretty much adds up to 100%. We don't have time for anybody else, do we? Nope. We spend 0% of our time with the brown and once we determine that they are browned. And with the rotten apples, the crazy ones, We just flat out, ignore them.

We don't let those bad experiences and those interactions get in our head and mess it up for everybody else. But here's the catch. Most of our deals are going to be here in the Brown. So how are we going to get the deals out of the Brown if we're not supposed to spend any time with them? We see the Brown, they got something going on. It might not be urgent yet. They're not motivated yet. But something's going on in their world that inspired them to call your little postcard,

to call your ad on Craigslist, to go to your website, whatever it may be. They know down the road, they might need you. So we need to stay in touch. You heard this thing called the follow-up. Yeah, the fortune. It's in the follow-up, right? For sure. And here are the numbers.

2% of all of your leaves are going to say yes to you on the first touch, just 2%. 3% are going to say yes on the second touch, 4% are going to say yes on the 3rd, and 10% are going to say yes on the 4th. But 81% of all of your deals are going to come on the fifth touch or later. And then might sound a little disconcerting, like, oh my gosh, I have to stay in touch and do all of this work just to kind of find these deals out of the leads that I'm generating. Sort of. But here's the good news. 44% of your competition are giving up after the first touch. 22% are giving up after the second, 14% are given up after the third, and 12% are giving up after the fourth touch.

That means 92% of your competition is giving up an eventual yes. So if you're concerned about your market being saturated or ultra competitive, it's not because they're all given up. And how you beat them and how you get the good real estate leads is you just stay in touch. You just contact your leads when they contact you, and you keep following up.

But I want you to spend all of your follow-up time with the red and the green apples. So how do we stay in touch with the brown if we can't spend any time of them? You let your follow-up system do it for you. And then once they're ready, once they turn green or red,

now they're going to contact you because you're going to be at top of mind. So you absolutely want this follow-up system to be automated. So what does it look like? Well, the very first thing that we send out to a seller, once we determine that, there's not going to be a deal here or not a deal yet is we send them out what we call our

rejection letter. It's a three-option letter of intent. And it says, sorry, Mr. Seller, we couldn't come to an agreement and maybe we can down the road, but as it stands right now, here are three ways not prepared to purchase your property. Option one, option two, option three. Give me a call, something changes. So we send that out and then we drop them into a regular rotating sequence of text messages, letters, and emails. And it's all choreographed. Like right out the box, they get a text message saying, hey, I got a letter coming to you. And then the letter arrives, this three-option letter of 10th and rejects the letter, and it arrives.

And then they get an email the next day saying, hey, did you get it? And it gives them the opportunity to re-engage. It gives them something new and refreshing to think about. It's not just a postpart saying, hey, I'll buy your house free for cash as is, no repair it, blah, blah, blah, like everybody is doing. No, you actually gave them an offer and gave them something else to think about. But then we keep them in a nice, steady flow of communication through these multiple channels. Because anybody likes to work in different ways.

like to communicate in different ways. Some people like the text. Some people will pick up the phone and call you from a letter and other people, they'll just, they'll be happy to respond to your email. And it's all choreographed. So we sent out a text, hey, something's coming. Then that thing actually arrives. And then the email goes, did you get it? If you didn't, let me know. And I can just set it to you back here via email. And it's a great way to engage. So we have an green apple version and a brown apple version. So we will contact them with this rotation once a week for five weeks with the green apple version, and we'll do this once a month for five months with the brown apple. And then we can go ahead and on that cycle ends, we can reassess as to how we want

to proceed from there. If you'd like to tap into my whole sequence that's already created, you can go to mailmix.io. It's powered by print genie, but if you use that link, it'll put you into my portal and you'll have access to all of my materials. It's probably the most effective and a formal way to stay in touch with sellers without breaking the bank. So if you want access to everything that I got, including the free optional layer of intent, You can go to mailmix.io. So after everything that we went through, if you're missing just one of these little steps in the process, that's probably a good indicator as to why you're not getting and finding good real estate leads.

And if you don't have any of these things in place, I mean, if you're missing just one of them, nothing else after this even matters. So I want you to get this stuff in place. I want you to have the whole playbook. And you can get that everything that we just went through at the lead tango.com. The lead tango.com. And so once you have all of this stuff in place, and if you need some additional help, you go ahead and reach out to me. I'd be happy to help.

But I have a hunch. Once you have all this stuff in place, you're going to notice such a difference that you're probably not even going to need me because you're going to be generating leads. You're going to be converting those leads to deals. You're going to be taking those deals. You're going to be closing them. And you're going to be putting money in your pocket. Thanks for sitting tight while we pay our light bill. We'll be back right after this. Hit pause on whatever you're listening to and hit play on your next adventure. This fall get double points on every qualified stay. Life's the trip.

Make the most of it at Best Western. Visit bestwestern.com for complete terms and conditions. Mainstream media is ripping us apart. This is news to bring us together. And make some money in the process. First up, we have some fantastic news for all you aspiring homeowners out there. Did you know you can use your IRA to buy a house? That's right.

Uncle Sam is giving you the green light to invest in your future, and we couldn't be more excited. So go ahead, turn that nest egg into a nest. Most cities are still seeing home price gains, but the pace is slowing down. And hey, that's great news for investors. No roller coaster rides here. Just a steady, relaxing ascent to the top.

Now, for those of you who prefer a more leisurely approach to life, we've got some delightful news from the mortgage world. Rates are steadily edging downward, making homeownership more and more accessible. Time to break out the champagne and toasts, to a brighter future. Speaking of leisure, spending is going strong in the hospitality industry. With more people enjoying vacations and dining out, the economy is thriving, apparently.

Time to celebrate with a well-deserved night out on the town. In Michigan, a kidnapper was apprehended with nothing but a slingshot. It's like your modern-day David and Goliath story. Never underestimate the power of an old-school weapon in the hands of a 13-year-old Alpena township hero. In the world of sports, it's been an exciting week for basketball fans. Six months and a day after the Los Angeles Lakers fell to two and ten to start the regular season, they emphatically eliminated the defending NBA champions to reach the Western Conference finals. With the energy in the arenas reaching new heights,

you can bet those property values around the stadiums are soaring too. Talk about a slam dunk for investors. Finally, we turn our attention to the AT&T Byron Nelson, where Jason Day has emerged as a PGA tour champion once again. After being close to calling it quits, Day's persistence and determination have paid off. And as we all know, there's no better feeling than a comeback story. So congratulations, Jason, and thank you for reminding us that anything is possible.

And that is the good news. Until next time, be happy, it's contagious, spread it far and wide. It's not a passing fad, it's the future of money. What happened this week? in cryptocurrency. First up from the Financial Times is a story that's got everybody talking. Bitcoin ETFs, are they about to revolutionize the crypto world? In a world where most investors are still getting their feet wet with cryptocurrencies,

Bitcoin ETFs could be the inflatable arm bands that help them stay afloat. ETFs or exchange-traded funds are like a cryptocurrency-all-you-can-eat buffet. They offer a diverse spread of assets, all wrapped up in a single package. With crypto ETFs on the horizon, traditional investors are salivating at the chance to finally get a piece of the digital pie. But, of course, like any buffet, there's always the risk of overindulging.

Remember, folks, crypto can be a wild ride, so don't put all your eggs in one basket. Our second story comes from Cohen Telegraph and explores a topic that's as hot as a fresh cup of coffee, NFTs, and the age of the creator economy. And as the creator economy booms, we're witnessing a renaissance of digital artisans, meme masters, and virtual virtuosos, but what does the future hold for NFTs in the Web 3?

As we move into an era where the Internet is more decentralized and democratic, we can expect to see the birth of new digital art forms, online experiences, and even virtual reality concerts. So, buckle up and hold on to your virtual hats. Things are about to get wild. Finally, from Crypto News, we have a thrilling tale of a dormant Bitcoin wallet that's just come back to life. Imagine waking up from a deep slumber to find that your forgotten collection of Beanie Babies

is now worth $35 million. That's what happened to the owner of a Bitcoin wallet from 2011, who suddenly moved 139 BTC. This has left the crypto community a buzz with speculation. Was it an early adopter who's now cashing in on their digital fortune? Or perhaps, Satoshi Nakamoto himself has returned from his digital hiding place? While we may never know, one thing's for sure. This story has given us all a dose of hope and excitement.

And that's it for the Crypto Chronicles. Until next week, keep calm, trade on, and may Satoshi's spirit guide you to digital prosperity. See you in the next block. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them.

And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home boy, we got to cash flow. Okay, only 10 more presents to wrap.

You're almost at the finish line. But first, there, the last one. Enjoy a Coca-Cola for a pause that refreshes. This podcast is a part of the C-suite Radio For more top business podcasts, visit c-sweetradio.com.