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Friday, December 28, 2018

Home Based Income Projects

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Thursday, December 27, 2018

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Thursday, December 20, 2018

Licensed Real Estate Agents-Move a Step Above

Many or most real estate agents will not be in a financial position to build a Trade in Program.
THINK BIG  now is the time to team up with your
Real Estate Investor clients for joint financial benefits.
Investors can run all over the country trying to find properties available at these values-share and make money together.
One line to place in your advertisements that will make 
you money and open the door to your secure retirement. 

Home and property trade ins accepted.
Never advertise without it!
Another/additional piece of ammunition for your marketing campaigns.

When you uncover a property owner who has a property to sell in order 
to move on to buying, you have found TWO potential commissions.

[Listings..merchandise on your shelve, you can't sell from an empty
wagon.  Early on a truly successful real estate agent must learn this
simple fact, "If you don't list, you won't last."]

I am sure you have seen these "Bandit" real estate signs scattered 
around by agents screaming out, "I'll Buy Your House" - "All Cash" 
 "Any Condition" 

Real Estate agents are posting signs to find houses to: 
**     1 Fix and Flip 
***   2 Wholesale to Investors 
**** 3 Make a "low ball" offer then seek a listing

There is a different formula..straight forward...honest..no tricks!
Establish a TRADE IN Program  
{Where would auto dealers be without taking trade ins?}

Once you have a Trade In Program always put in your 
advertising a magic line: 

"Trade in your home on one of our listings" 
"Your home accepted in Trade" 
"Easy Move with our Home Trade Program" 

With a Trade in Program, no more running 
around at night putting up bandit signs, no 
more need for false/misleading advertising.  
Prospective sellers/buyers will be coming 
to you. You are in the cockpit ready to fly. 

You will start to work with property owners, prospects that will also 
be sellers If you find a property they want to buy.  They need the 
equity from their home to complete the purchase.  BUT, will the 
seller want to take their property "off the market",  accept a 
contingency allowing your prospect time to list and sell their home?

You need to be honest with your buyer, they are in a very soft
bargaining position to buy a home.  A maybe sale allows the 
seller a superior position and most often hold out for a top of
the market sales price.

Now we see how having a Trade in Program in place puts you
in a unique place.  You can put the the buyer in a strong position
and save the seller the worry of do or don't accept a contingency
sale....pending sale doesn't sound as good as SOLD.

Always on the mind of your trade in prospect is how much
cash will I have to work with, what is my equity?

Next how to start up a residential home TRADE IN Program, first
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How to start a residential home TRADE IN Program

First. understand how the real estate agent benefits and 
makes money using a home trade in program.  Once you 
get your program off and running you will have set yourself 
up and distinguished yourself from the rest of the trade.
Word of mouth promotion will carry you across your 
sales territory bringing you top notch prospects, loyal 
and eager to work with you because you have a solution
to their problem.

Right up front think of the traffic and clients you will 
attract to your "open house" when you offer to take
their house "in trade".   They can be serious about 
shopping, they will no longer be locked out until they 
sell their house.   They are going to drop by your
open house just to see what you have to offer. 
{These folks thinking about how to get into another home are
going to drive by your open house and think we're here we
might as well go in and check it out.} 

"Two birds with one stone"   First coming to the open
house not just a BUYER but one with a house to 
TRADE/SELL.  Moving UP or DOWN...you probably 
have a qualified prospect. a home owner at that. 
Better than the wishful thinker using up your time.  
Think how much better time spent on an open house!

Make an appointment--RIGHT NOW--on the phone or 
at your Open House.  If your prospect has a house to
trade you need to let them know their financial status
and the details of how a trade in program will benefit

Let your prospect know you are a professional, 
you will need to work up a "Competitive Market 
Analysis" for them on their trade in.  You are going 
to need to get a current estimate of their home value.

In order to advise them of a market overview and help 
them with an understanding what comparable homes 
are selling for in their area you need to inspect their 
home.  Make your appointment right now, they are 
obviously interested in moving forward now.  Never
allow your prospects a cooling off period!

As you inspect their home this will be a great time to 
prepare them for any repairs or improvements they 
should consider both to speed up the sales process 
and obtain the maximum sales price.

Your clients are also going to make some tough choices.
No beating around the bush you need to present them
the costs of selling their home if they were to put it on the
market with you or any other agent.

You need to work up an estimate of the cost of selling
their home, how much cash they will receive after
the close of the sale of their home.

In order to give then an accurate figure on the net 
proceeds selling on the open market you will need 
the information on their current mortgage.

Jackpot, now you can estimate their equity and 
learn the best way to advise them ways to proceed.  
This is going to allow you to have an idea of what is the 
best way to service this prospect.  

A large equity provides them with a no fuss easy 
trade in and a quick way to purchase their new home.  

However, you may have a good prospect for a listing. 
Giving them the most cash to use from the equity from 
the sale of their home in order to purchase another.  

Estimating a down payment and the closing costs of 
of what they are seeking in new home, do you have a 
qualified buyer?

In fact you have all the information on their home, and 
you have given them an idea of the proceeds if they 
would sell their home.  You should also have given them 
a look at the extra costs of using the trade in program.

It's a excellent time to review the benefits to them to
list their home and have it on the market while they
shop with you for their next home.

A strong sales effort is called for right now, it gets them 
under contract to you and really benefits them should 
their property sell while they are still shopping for a

{This will be a test, are you worthy of using the title, 

Right now you have before you quite a picture.   By 
offering a trade in program, you  have opened the door 
to a listing commission and a qualified buyer to 
concentrate your sales efforts.  On the other hand you 
can release a tire kicker for some other less prepared 
sales agent if you determine they are not a good prospect.

BUT WAIT!  Did you think to ask them if perhaps Aunt 
Mary left them some extra money to use to purchase 
their next home?   Maybe they have more than just their
equity to purchase their next home.

I have seen this many times.  Mother or Dad have sold 
their home and getting down to it that is the reason they 
are looking to buy a larger home.  

Their aging parents are planning on living with them. 
The parents are going to help with buying another place.  

What a great opportunity for you...a listing/sales commission 
and a second commission to boot.
Wow!  Cover all bases before you move forward!
Doesn't a home trade in program sound even better now?
Agents having the opportunity to advertise a trade in
program have a fantastic prospecting tool!

Never assume anything and remember the old expression,
"you can't tell a book by its cover".   Move over and let me 
relate a story before we move on to setting up your personal
home trade in program.  Old warriors always have a tale to

Many years ago when I was a real estate agent myself I was
sitting on an open house.  It was a low priced home in a 
decent but lower priced neighborhood. Looking out the 
window for my next visitor, up drives a beat up well used 
car with Mom, Dad and two young kids.

I pictured a low down payment barely able to qualify FHA 

buyer...and proceeded to allow them the run of the house as
they inspected it.  In a very short  time our customer says,
alright we want to buy the house.  

Nervously I start writing the Earnest Money Receipt and 
Purchase Agreement.  I explain the offer and valuable 
consideration to them and fill out a "note" as earnest money 
in the amount of a thousand dollars.

I ask him how he wants to pay for the house. SHOCK!  He 
says it will be cash...Ok, I'm thinking, what else?

Almost in disbelieve I write all cash sale and fill in the 
Purchase Agreement for full price, $10,750.  {Remember 
I said, years ago. When the minimum wage was $1.25 an 
hour.}  They signed the agreement and I explained I will be 
contacting them as soon as the owners have signed and 
accepted their offer to purchase.

My open house was scheduled from 2-5p,  The owners 
returned shortly before 5p which was fortunate for me 
because I could get the full price acceptance signed 
before I closed up my open house.  Speaking of lucky...
get this!  Agents will often circulate around a newly 
listed property to expose the home for sale and enlist 
the neighbor's cooperation in finding a buyer.

Properly holding an "Open House" isn't just arriving a 
few minutes before the scheduled open, putting up a
a sign or two and proceeding to kick the owners out 
for a couple hours.  At that rate sitting around waiting
for someone to come is all that will happen.  You'll be
lucky to have a couple neighbors dropping in to see
what is happening.

Many times someone in the neighborhood will have a 
family member, friend or work companion looking for a
home and they can lead to a buyer.   Circulating 
around a newly listed property dropping off a few 
business cards will pay big dividends in sales leads 
and future listings.

The neighborhood will be watching for that "SOLD" 
sign.  If you have worked it right maybe your next listing 
in that area.   When you visited the area around your 
listing, dropped off your business cards, people 
generally will hold onto your card for awhile.   

Plus the time spent may uncover some hidden prospects. 
Like the folks who are renting a few doors away looking 
for a home to buy for themselves.

In this case the listing wasn't even mine.  It was 
another salesperson in the office, who convinced me 
that it was a "good buy" and a wonderful price range 
to pick up some prospects.

Luck calls again!  One of the things I would do before 
an open house was go out to the house and put up my
"A Frame" Open House Sign usually by the Friday before.  

"This home open 2-5p Sunday."  

My open house buyers had a friend in the neighborhood 
who told them about the house.  They had been by and
looked it over prior to my Sunday open house date.

Had I not dropped by Friday afternoon to put up my 
"to be open Sunday sign", they could have called the 
office number on the for sale sign and another sales 
person would have had my cash buyer.

Later I realized why my sale was so easy at the open 
house.  The buyers had been by several times...
discussed the property, neighborhood, schools and  
had already decided to buy.

Old fashioned, but open houses do work.  However, 
there are tricks for better results.  Take a little time 
and prepare the neighbors for the open house.  

Back to setting up your personal home trade in program.   

Earlier on your inspection you worked up an estimate 
of seller's costs.  You have explained selling and the 
various costs in selling.  The seller is aware and
understands all of that.
That is important because in order to effect the trade, 
where we actually cash out the seller those costs are 
still going to be there and are their responsibility.  
Trading in their house frees them from the property  
providing them the money to move on in the position of
immediately buying the next home.

Using the trade in program they will be able to buy 
putting themselves in a more favorable position to 
negotiate the  purchase price of their next home.  
There would not be a contingency of needing to sell 
their property in order to buy.  

They are ready to go and provided you have had 
them work with a lender for a "pre-approved" mortgage, 
they will be setting in the drivers seat the same as

Now here comes the hook, in order for you to carry 
the trade in home for the three to four months it might 
take to market the property, qualify a buyer and close a 
sale you will need a 3-4% trade in fee.

Once they find a home, the agent has to carry their
trade in property probably vacant and has the need 
of a "number of dollars" to protect themselves from
losses and cover carrying costs

So far you have covered the cost of selling the 
trade in property, figured paying commissions,
sales costs and closing costs...handling fees...but 
other than a couple commissions. {Listing and Sales
fees on the two homes.}  

What's in it for you and your extra risk? 

Another fee...a **trade in completion fee paid
by the seller of the home they are buying.  Paid 
directly to you from the sales proceeds at closing.
The seller will have the normal commission and
closing cost with the addition of one additional
fee "trade in completion fee".

**Same as asking the seller to pay some of the
buyers loan and closing costs.

This end fee of 3-4% of the new sellers property
will cement the transaction together and brings 
about the final profit to you. 

Of course in lieu of a trade in completion fee the 
seller could always accept the buyers home as
a trade themselves.  Rarely is that going to work
but it is an option and may soften the fee they 
are asked to pay in addition to their regular 
sales and closing costs..

Early on in this article the headline offered a promise 
of opening the door to a  secure retirement.  Not all 
of your trade in properties must be marketed, some 
can be taken in trade and held as rental property by

Those properties I held furnished me a nice income
and allowed me to sell my real estate company.  
Handle your trade in properties the same way you 
would any other investment property.  Fix up, 
rehabilitate, refinance and hold for long term 
investment gains.  Sweet retirement!

Whoops, I know at the end of these long-winded
online presentations they always offer to mentor/
coach you on your first couple trade in transactions
for a FEE of course.

Not this time.

If I haven't done a good job of sending you on 
your way to a real estate home trade in program 
and you have questions...E-Mail me.  In the 
subject line put:  HOME TRADE IN PROGRAM

I will do what I can to answer your questions.

OH PS.. The cash buyer in the true story in this 
posting was to drop by my office to redeem the 
$1000 earnest money note...so we could go to 
escrow and close....he showed up with a cashier's
check for $10,750.00!  Sweet commission time.

Real Estate Reading:
Investing-Financial Leverage   Using other people's Funds
Real Estate Investing 1     Your solution to Financial Independence
Real Estate Investing 2   Marketing-Boot Camp-Finding the Property
WHY REAL ESTATE      Road to Wealth 

Finding Real Estate
Investment Funds 
click here

All material herein © '2007-2018 "Harvey Akeson Tucson Calling" Reprint right by permission: harveyakeson@yahoo.com

Thursday, December 13, 2018

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As a Multi-Level Marketing or Network Marketing business is build the personal contacts are put together as a sales team and they spread the word about the business.  These folks which are now referred to as a downline use the tactics they are taught to bring in sales under the marketing plan they have been trained to use.  They are shown how to duplicate proven successful efforts that will earn them and their sponsors an ongoing income.

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