Commercial 90-Day QUICK START SUCCESS BLUEPRINT

Transcription

1 Commercial 90-Day QUICK START SUCCESS BLUEPRINT The road to someday leads to a town called nowhere. Tony Robbins

2 COPYRIGHT NOTICES All rights reserved. The original licensed publisher of these materials is authorized to use all advertisements and marketing tools in this kit for personal use only. These are copyrighted consulting materials. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior written permission of both the copyright owner and the publisher of this publication. Any unauthorized transfer of license, use, photocopying, or distribution of these materials to anyone else other than the licensed client/purchaser is prohibited and will be prosecuted to the full extent of the law. LEGAL NOTICES Reader ( You ) hereby release, indemnify and hold harmless copyright owner, publisher, its managers, owners, directors, contractors, employees, vendors, and all affiliates ("Publisher") from any and all liability, damages, claims, demands, actions and causes of action, of any nature whatsoever, both in law and in equity, in any way resulting from or arising out of the contents of this publication, any associated activities, or any future materials, training, assistance or activities with Publisher. You agree and recognize that Publisher presents this publication as educational reading and Publisher is not responsible for your actions and/or activity. You further release Publisher, without limitation, from any and all claims or liabilities for personal, physical, psychological, or emotional injuries. You agree to release the Publisher and discharge Publisher from all forms of liability including all loss, damage, or injury, including but not limited to special and consequential damages, resulting from any content included in this publication. This is a full and final release applying to all known, unknown and unanticipated consequences, injuries, and damages arising from or affiliated with your use of any or all of the ideas, or concepts discussed in this publication. The aforementioned expressly includes a waiver of any rights or benefits that might otherwise be available to you. Furthermore, you hereby agree to indemnify and hold harmless copyright owner, Publisher, its managers, employees and contractors from any and all claims that arise out of your personal, professional, business, and real estate investment activities. You agree that you are fully responsible for your actions and your investment decisions. By reading this publication, you affirm that Publisher has strongly advised you to always have qualified lawyers, accountants, and other professionals guide you regarding any contracts you may sign and any investment decisions you make and regarding all of your interactions with third parties. You understand that real estate is a closely regulated business. You understand that there are numerous local, state, and federal laws governing real estate investors conduct and activities, and that these laws are often changing. You affirm that Publisher has advised you to get and maintain competent legal counsel and tax advisors to ensure that you always stay within the bounds of the law and to help you make sound business decisions. You agree that the Publisher does not make any business decisions for you. You agree that you make your own business decisions.

3 90 Day Quick Start Blueprint The goal of this blueprint is to have you make 20+ offers in your first 90 days with one deal under contract in other words, to get you in position to make offers on commercial real estate deals and get them under contract within this success blueprint timeframe. You ve been standing on the sidelines long enough. What have you got to lose by starting your journey to buying your first commercial property? Where you are when you start is not important, what s most important is that you start. For many years, you may have been telling yourself that you want to do this. There is no better time than right now. What are you waiting for? For a better market? When prices recover, you ll possibly end up overpaying like everyone else. Let s not repeat the errors of the past, shall we? Are you waiting for lower interest rates? Well, they ve never been lower than right now. Are you waiting for sellers to be more flexible? My answer to that is we are in a buyer s market today. Sellers are motivated today because they realize that the usual buyer is looking for a bargain and that the plentiful buyers have retreated and are on the sidelines. Experts are referring to the deals out there today as generational opportunities. Note: Not only is this 90 day action plan effective and practical, it will be a phenomenal learning experience for you. There s no better way to get how something works than what I call learning by doing. Educationist, Edgar Dale s research points out that after 2 weeks we tend remember 10% of what we read, 30% of what we see, and 90% when we re doing the real thing. Therefore, doing is the key here. There will be a lot of doing for the next 90 days, so get ready. Let s get started!

4 How to Use Your Blueprint This blueprint is designed to get you to make offers as quick as possible and it is to be followed in order. Each item has a space to mark off your progress. Take the time to make sure you follow the steps and to mark off your progress. This is how you can verify how far you have come and how far you are from reaching your goals. You may have gigantic financial goals and we encourage dreaming big in life. However, before you can run, you must walk. Once you have successfully closed a number of deals, in our opinion, you will have successfully learned to walk and therefore can then begin running. Action is Key It is also important to understand the value of action. When learning a new skill, the tendency for some is to jump right in and read six weeks of course material in three days and push off the action steps until later. The common notion many people gather in their head is that they want to feel as if they know everything before they start. Sadly, what these people never realize is that they will never know everything. Have the courage to take action despite not knowing everything before you start. And as the saying goes, you can t learn to ride a bike by reading a book. In order to learn this business, you must take action. We certainly encourage reading and listening, as it is a part of our program,

5 however until action is taken, actual knowledge and understanding of this business will not be gained. To repeat...the only way you will learn how to make big money in commercial real estate is when you take action. The education truly begins after you put down the book and start making offers and doing deals.

6 Week 1 Action Item Setting Up Your Commercial Office Have the following things ready to go: 1. A computer with internet access and A cell phone or telephone with voic . 3. Three four hours per week minimum of focused time to work on your commercial business. Obviously, the more time you put in, the faster your results will come. Get started with epartner 1. Retrieve from our staff that provides you with your epartner access information. 2. Log into epartner with your Username & Password and begin to familiarize yourself with the software. epartner Internal Messaging System Introduction In order to take full advantage of our coaching program (assuming you have access to this feature), you want to experience the Message Center as quickly as possible. This is your 24/7 place to ask questions of your coaches. In order to send a message, you must first input a new lead as all messages are lead specific. If you would like to test the message center, add in any old name, like your first and last name and your phone number. Once you

7 have submitted a new lead, click the Message Center button on the left tool bar. When you click this link, you now can ask a question of any coach you would like. Group Coaching Calls Sign up for and log into your first group coaching call. Log onto as many group coaching calls as the coaching level program you signed up for will permit. If you can t make the calls due to your schedule, try to listen to the recorded versions of the calls on epartner under Coaching Center in a link titled Call Archive Recordings. Bring your current deal to the group calls or just listen in and learn.

8 Action Item epartner Required Educational Curriculum 1. Make sure your foundation on analyzing basic commercial deals is sound. This means that if a basic deal were to be presented to you, you could analyze it and evaluate the basic guiding principles. On epartner and under the Knowledge Base category on the far left hand side, click on epartner Investor Training. It will take you to your Commercial Training Manuals. Plan on going through Manuals 1, 2, and 3 this week. The goal of this manual is to get you up to speed as quickly as possible to start making offers! 2. Listen to Seven Core Investing Principles Audio How To Succeed in Real Estate Congratulations on completing your first week! Here are a few useful tips to give your success a boost: Tip #1 To get the most out of your group coaching calls, input your deals into epartner and come prepared to discuss them with a coach during the call. The greatness of epartner is that a coach can see everything you put in about the deal all your notes, income/expense statements, broker brochures, pictures, and the list goes on. Tip #2 Acknowledge your fears as normal. There are fears in anything that is great and worth doing. If there weren t, everyone would be doing it. Write down your fears, bring them to your coach, and process through them. A useful acronym for the word fear is false evidence appearing real. Don t let your fears stop you from the life you re destined to live.

9 Week 2 Action Item Set your goals and share them with a coach 1. Write them down on paper. A famed study from Yale in 1953 said that the 3% of Yale graduates who had written goals had more wealth years later than the other 97% of the class combined. Harvard Business School did a study on the financial status of its students 10 years after graduation and found that: As many as 27% of them needed financial assistance. A whopping 60% of them were living paycheck to paycheck. A mere 10% of them were living comfortably. And only 3% of them were financially independent. They had written goals they followed. Get the picture? Begin by writing your goals right here: (join the 3% crowd!) Goal #1: Goal #2: Goal #3: Sample goal: to get 5 deals under contract in my first 90 days. Sample goal: to close on 2 deals this year and generate cash flow of $5,000 per month Sample goal: to generate $2500 per month in income so that my spouse no longer has to work a job.

10 Week 2 continued Action Item epartner Required Educational Curriculum 1. On epartner and under the Knowledge Base category on the far left hand side, click on epartner Investor Training. It will take you to your Commercial Training Manuals. Plan on going through Manuals 4 and 5 this week. 2. Do Your Market Research: One of the most important rules on where to buy commercial property is to buy where there are JOBS and where the prospects are good. If there is an absence of jobs and job growth, there will be an absence of persons to rent and lease to. Choose a city or two and qualify or disqualify it. Start your market research today and have an intention on investing in your own city first. It is by far the easiest and most efficient way to begin. Investing out of state for the first timer should be your last resort and should be done with the help and guidance of a skilled advisor or hands on coach. By starting locally, you ll be able to drive around, meet people in person, check up on the property easily, and learn the business faster. City/Town Choice #1: City/Town Choice #2: 3. Attend group coaching call(s) as many as your coaching program level allows. How many I plan on attending: 4. Enter a new lead (a new deal) into epartner and discuss this deal with a coach on a group coaching call. Click on Add New Lead in epartner to begin.

11 Week 3 Action Item epartner Required Educational Curriculum 1. On epartner and under the Knowledge Base category on the far left hand side, click on epartner Investor Training. It will take you to your Commercial Training Manuals. Plan on going through Manuals 6 and 7 this week. 2. Start Generating Leads: Now that you have a goal, some market research under your belt, and have a city (or two) to start in, you ll need to start finding sources of deals and leads. The simplest way to get leads is to start calling local commercial real estate agents or brokers. I suggest calling them on the phone first and if there is a connection there, meet them for a cup of coffee. Even though you are qualifying them, you should be focusing on building a rapport with them. Either ask for a referral to a good agent or get on Loopnet, enter the city, and click on a few names from pertinent listings. Call them. Get started. Have them start sending you deals to evaluate immediately. Schedule a driving tour with an agent to learn the key areas. Not only will this help you with becoming knowledgeable about an area, but it will give you practice with how agents/brokers communicate. I have emphasized many times that the commercial real estate investment business is a relationship business. So, after you spend a little time building rapport, start sharing with them what you re looking for. I recommend not telling them what cap rate or cash on cash return you re seeking because it is quite possible that they really don t know how to calculate those figures anyway (yes, really). And it is likely that you won t get any deals sent your way because the agent either doesn t want to sit there and do calculations or they don t want to be found out that they don t

12 know how. Therefore, be general with them. Get them to start sending you deals, a lot of them, and then put the burden on yourself to figure out if the deal meets yours objectives or not. As you give the agents feedback, you ll actually be training them on what to send you and not to send you. Key: don t forget to send Thank You notes to your contacts that are proving to be valuable to you. This goes a long way in getting you more deals sent your way. Call 3 agents or brokers and share with them what you re looking for: apartments, retail, office, etc. Always have at least 3 agent/brokers sending you deals. If the number drops below 3 at any time, call 2 3 more until your list is at 3 again. Secondly, it is suggested to speak with a coach on other means of finding deals such as direct mail marketing in order to reach property owners directly (no agents involved). 3. Attend group coaching call(s) as many as your coaching program level allows. How many I plan on attending this week: Note: If you can t make the calls due to your schedule, try to listen to the recorded versions of the calls on epartner under Coaching Center in a link titled Call Archive Recordings 4. Enter a new lead (a new deal) into epartner and discuss this deal with a coach on a group coaching call. Click on Add New Lead in epartner to begin. Week 4 is next. Congratulations! You re doing awesome! Keep the momentum going!

13 Week 4 Action Item epartner Required Educational Curriculum 1. On epartner and under the Knowledge Base category on the far left hand side, click on epartner Investor Training. It will take you to your Commercial Training Manuals. Plan on going through Manuals 8, 9 and 10 this week. This completes your Manual reading. Review as needed. 2. Start Analyzing Hundreds of Deals: Finding a deal worth making an offer on is a numbers game. You re going to have to kiss a lot of frogs to find the one prince. The more deals you analyze and look into, the sooner you ll reach your goal. The bonus of looking at a lot of deals is that you ll become sharper and sharper at evaluating them. In no time, you ll be able to qualify deals in a matter of minutes, sometimes seconds. In Manual 2 is an exercise especially designed for you that s very effective in finding deals to analyze. Get it done. 3. Enter at least 5 new leads (5 new deals) into epartner and discuss these deals with a coach on a group coaching call. Click on Add New Lead in epartner to begin. 4. Follow up with your 3 agents or brokers and evaluate what deals they have sent over to you. Provide them with feedback to train them what to send you in the future. 5. Attend group coaching call(s) as many as your coaching program level allows. How many you plan on attending this week:

14 Note: If you can t make the calls due to your schedule, try to listen to the recorded versions of the calls on epartner under Coaching Center in a link titled Call Archive recordings Goal reminder: During Week 2, you set and wrote down your commercial investing goals. From our experience, it s a good idea to examine them again at this point and see if any of the goals need to be adjusted. If so, make the adjustments now. Next, let s restate your goals here: Goal #1: Goal #2: Goal #3: Next, let s review any struggles you had during Weeks 1 through 4. Answer the following questions: 1. Where did you struggle the most? 2. Where can your coach probably help you the most? Share your struggle with a coach during a coaching call. 3. What area(s) did you enjoy most? What came easy to you?

15 Week 5 Action Item 1. Start writing offers! A lot of them!! A minimum of two per week until a property goes under contract. I know exactly what you re thinking! You re thinking: I m not ready to make offers! Or, how can I make offers when I have no money! Or.?? Allow me to break some good news to you about making offers. First of all, use letters of intent since they re easy to use and understand, and are non binding. The good news and probably the most stress relieving news to you is, odds are your first 10 offers will not be accepted. That s right. Sorry to burst your bubble. That s why you gotta get started today. That s why we have to make a lot of offers to get ONE accepted. Now, once ONE of your offers gets accepted, odds are it won t make it pass your due diligence part of the deal. So, can you see why you should have little fear of making offers? Get out of your mind right now that every offer you make is going to get accepted. It s not! It s a numbers game! But there s reason in all of this madness I m telling you to do, there really is. For every deal that you evaluate, make offers on, do due diligence on, that ends up going nowhere is PRACTICE for the next deal. You should always practice, practice, practice for the next deal until that ONE deal happens. All it takes is one deal to change your financial life, just one deal. So, let s get out there and get busy. I believe in you! I know you can do this. Number of offers I will make this week:

16 2. Discuss deals with a coach on a group coaching call that are worthy of making offers on. Use a letter of Intent (LOI) to make offers with. 3. Get Your Financing Ready to Go: It s never too early to start thinking about, and taking action on how to get your deals financed. You likely fall into one of the two following categories: one, you have your down payment money already saved up and it s ready to go. Or two, you have very little money for a down payment and you ll need to go out and find it. Or maybe you fall into a combination of the two? Whatever the case, get on a coaching call to strategize on how you re going to fund your deals. 4. Attend group coaching call(s) as many as your coaching program level allows. How many you plan on attending this week:

17 Week 6 Action Item 1. Start your direct mail marketing campaign (if you haven t yet). Why go direct to property owners? To get the very best deals, that s why! You increase your chances of completing a creatively financed deal by 10 times if you have direct access to the seller. Going direct to property owners to buy their properties has several lucrative and unique advantages. One, there will be no real estate sales agent to muddle up the transaction. By not having a real estate agent involved, the seller can save thousands of dollars by not having to pay sales commission. You benefit by paying a lower sales price due to the lack of a sales commission. A second advantage is probably the most important. When you deal directly with the property owner one on one, in nearly 100% of the time you can negotiate a much better deal than if there was an agent in the middle. Real estate agents shield the owner and stop you from getting to the owner s motivations for selling. The quicker you get to the owner s motivation, the better the deal you can create. Real estate agents are also not inherently creative. They prefer a normal (noncreative!) transaction because that get s their sales commission check the quickest. The third reason why it s advantageous to go direct to owners is if you need to use seller financing as a means to finance your investment. Getting in front of, talking directly to, and establishing a rapport with the owner is easiest if you contact him directly and have direct access. In my opinion, you will increase your chances of completing a creatively financed deal by 10 times if you have direct access to the seller from day one.

18 2. Continue writing offers! A lot of them!! A minimum of two per week until a property goes under contract. Number of offers I will make today: 3. Attend group coaching call(s) as many as your coaching program level allows. How many you plan on attending this week:

19 Week 7 Action Item 1. Be Smart and team up with a Local Property Manager: Smart business people team up with smarter teammates. Commercial property managers know all the ins and outs of operating and running commercial properties that s how they make a living. So why not have one as your advisor right now as you re learning the business? Your task here is to seek out a business relationship with a local property manager. Property managers know neighborhoods very well: if they re safe, if they re easy to get tenants, and how stable they are. As soon as I find a potential deal, I get my property manager on the phone and I ask him about the neighborhood and the property. This is my way of kicking the tires (for free) before I jump in. This way, it will save me a trip to the property and allow me more time to evaluate more deals. Basically, if my property manager gives me the green light that he likes the property and neighborhood, then I take it to the next level. But if he gives me a bad report, I will either turn the deal down or negotiate harder for a better deal. Call up and interview at least 2 local property managers and place at least one of them on your team of commercial professionals. For property management interview questions, review Manual Continue writing offers! A lot of them!! A minimum of two per week until a property goes under contract. Number of offers I will make today: 3. Attend group coaching call(s) as many as your coaching program level allows

20 Week 8 Action Item 1. Re evaluate your lead sources. What has worked in bringing you deals? What hasn t? What agents and brokers have you connected with? Are you getting phone calls from sellers with your direct mail campaign? The best advice I can give you is to work on what s working. What I mean by this is, if a certain agent or two have been helpful, then work on strengthening those relationships. Work on your strengths, it will pay off soon as you persevere. Q1: Write down which agent/broker has been most helpful: Name: Name: Q2: What deal sources have been most reliable for you? Source #1: Source #2: Q3: What part of the deal finding process has been the most fun for you? Answers to Q2 and Q3 are very telling and should be where you need to be spending most of your time looking for deals. It s obvious. 2. Continue writing offers! A lot of them!! A minimum of two per week until a property goes under contract. 3. Attend group coaching call(s) as many as your coaching program level allows. Discuss your results thus far with a coach and make any adjustments at this time.

21 Week 9 Action Item What you just did for your lead sources in Week 8, you ll have to do for your potential investors. Therefore, it s time to evaluate your investor leads. Investor leads are persons who are potential investors for your deals. Q1: Write down what people you know that are potential investors: Name: Name: Name: Q2: What part of finding money partners (Manual 7 Chapter 4) have been the most fun or easiest to you? *Q3: How much effort have you put into this? *If you are still feeling shy or apprehensive about asking someone to be an investor with you, then go back and use the unrejectable question in Manual 7 Chapter 4 where I ask Bob to invest with you. As a reminder, here s the question you need to ask all your investor leads: Hey Bob, do you know of anyone who may be interested in this great real estate deal I have?

22 Week 10 Action Item 1. Re evaluate your offer making activities. Have you had any offers accepted? How many of your offers have received counter offers? Q1: How many offers have you made thus far in total? Q2: What type of feedback have you received from your offers? Q3: Are you following your coach s recommendations for making offers? If not, why not? 2. Make the necessary adjustments in your offer making activities and strategies and continue writing offers! A lot of them!! A minimum of two per week until a property goes under contract. 3. Attend group coaching call(s) as many as your coaching program level allows. Discuss your results with a coach and make any adjustments at this time. Keep in mind also that every step in the offering process, from marketing the deal to a buyer all the way to closing it, is in the Due Diligence tab of epartner.

23 Week 11 and Week 12 Activities Your primary aim these past 90 days was to learn the fundamentals of the commercial real estate business, learn the most effective marketing techniques for your area, implement those marketing techniques to their maximum potential and finally, to make offers and get one deal under contract. If you managed to accomplish those aims (or are getting there), the following 2 weeks do not require a weekly checklist. You now have graduated to a new level in this business. Now your focus needs to be on closing the most promising deals you have signed up and adding new deals at a pace that fits in line with your personal goals and your schedule. Finally, stay connected to the coaching and mentoring program. Participate in the coaching calls and submit questions electronically through the epartner Message Center. In this business, taking care of the details is critically important. For we have learned that an ounce of prevention is worth a pound of cure. The coaching and mentoring program allows you to get expert advice on the little snags of a deal before they become insurmountable problems.