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However, there are certain times when I’m unable to get it.

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This month, we’re talking about scripts and presentations on the Investor Insights because it’s Private Money month. I’m launching a new program called Getting the Money, which is designed to help you become private investor pro. Go check out my free training videos to get a feel for the program.
Back to scripting. Scripting will not apply to all situations.

You won’t want to read a script while you’re on the phone. It’s a tool of reference. You need to rehearse it and get comfortable with it.
However, scripting will help you organize your thoughts and become more confident in approaching potential private money partners – I call them that because they are your partners. You’re partnering with them to do something bigger and better than the two or more of you.
So, keep this in mind when you are studying your scripts. You’re a confident, valued partner. Here is a sample script for approaching someone you don’t know.
The Outgoing Script
This is a script you will use when you are calling to follow up on a postcard you mailed or from a lead your friend gave you. It’s basically talking to strangers. I know there’s an old saying about not talking to strangers, but these scripts are designed to make strangers less strange – and maybe your future private money partners.

Start with a salutation. Keep it simple – something like “Hi, Andy Robinson here.

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As a teenager in the 1960′s it seemed the world was tryin’ to make too many sea change pivots at once. We don’t seem to really become consciously aware of the world outside our neighborhood, school, and specific ‘kid’ stuff ’til we’re in jr. high school. Heck, now it’s not even called that — it’s middle school. That decade has since been referred to as ‘The 60′s revolution”. The kids born a mere 3-8 years before me decided long held values, principles, conventions, and almost everything else was outdated.Many have learned the hard way that OldSchool got its name the hard way — by producing solid results every time it’s tried.Don’t get me wrong about this. Long ago I made a promise to myself. I’d adjust to new technology, new and better ways to do things, and change in general. I did so as a result of watching the consequences dealt to those who didn’t. Adjusting to change is one of the most difficult challenges in life. The trick though, is to develop the ability to wisely discern what change is real, truly beneficial, and has ‘legs’ — and what is change merely for the sake of change.An example of inexperienced, misguided leadership making long lasting, principle-defying decisions for an entire industry, is real estate brokerage. That’s not a topic for this site, but it illustrates the difference between real change and change pretending to defy gravity.

The last 40+ years the industry has been almost exclusively run by the ‘agent-centric’ business model. Translation: The tail wags the dog. The last decade or so, real estate ‘teams’ have almost universally opted for the OldSchool ‘broker-centric’ business model. Teams have been producing profits embarrassingly higher and more consistently than even their broker employers. It’s an irony I’ve quietly appreciated for awhile, possessing OldSchool DNA and all. Sports is the best, most visible illustration of Old vs New ‘School’.In team sports, it’s axiomatic that a team with a buncha me me me players, who couldn’t spell ‘team’ if you spotted them the t-e-a, will almost always lose to a slightly less talented, but unselfish buncha team oriented players. It’s been recently proven again with just one NBA team. The Knicks have two bona fide superstars. Yet after the first 22 games of this season they’d won just 7.

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I’ve been a conservative investor who has been very pedestrian along the path to  becoming a mogul.  I buy well-located buildings and plan to hold on to them forever.  I learned  most of what I know from books or from observing my fellow investors.

The following list is from an investment perspective.  It doesn’t include other [...]

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I am a big believer of using forms in my real estate business. I have found time and time again when I am talking with a seller and I “wing it” instead of using my Property Information Form, I invariably forget to ask something important.  There is some piece of information I need that I don’t get in that initial phone call. Sure, you can always call them back, but I really hate to do that. You just look unorganized.Forms insure that you get the same information each time, and that you get all of the important information you need. Not only are forms a time saver, they can also save you money.

A good example is when you inspect a property you plan to make an offer on.  If you are not using a form when you do your inspection, you are almost certainly costing yourself money. What forms do I use routinely in my business?I have a number of forms that I use in my business, but here are the 3 top forms I use on the buying side of my real estate business.

Property Information Form.  This is the form I use when I talk with a seller.  Right at the top of the form, I have the date and the referral source. Since I do a lot of direct mail to absentee owners and probates, I have a place to circle what type of lead it is (PR for probate or OT for out of town/absentee owner) if indeed the lead was from direct mail. I also have a place to list the state they are calling from. I put this on the form after waking up folks several times that were in different time zones. There is also a place for “other” referral source. You always need to know where the lead came from.The second section is for the contact information. I have the name of the caller on the form, and the name of the actual owner on there also. These are not necessarily the same especially if you are working with probates.In other sections I have the property information including the age of the systems and what repairs and updates are needed.  There is a place for the existing mortgage information as well. There are several questions on the form that will help me find out their reasons for selling and what their motivations are.In the last section, I have a place to calculate my offer using the ARV (after repaired value), the percentage I will use, repairs needed and a place for “Me”. I will put the amount I want to make on this line.

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One of the greatest joys for me is to watch others succeed as real estate investors.  I am always amazed how some investors jump in and can create profits from almost any deal, while others seem to struggle with each step they take. Over the course of my investing career I have tried hard to identify those characteristics which I believe exemplify successful real estate investors… before they even get started.  And, while this have been no easy task, I thought I would share some of the most common characteristics of successful real estate investors that I have discovered. 

1.  They are not victims.  Every successful investor I have ever known does not allow themselves to be a victim to their circumstances.  They accept responsibility for where they are in their life, their decisions and the results they are creating.

2.  They come from professional backgrounds.  Those individuals who have been in the professional business world have an easier time succeeding in real estate.  I believe this is true because many business professionals have learned to work in teams, have been required to be self-starters, are used to performance based compensation, and for more then a few, they have learned how to manage things.  All of these skills translate directly to building a real estate investing business.  Does this mean everyone in this group succeeds? 

No 3.  They are extremely motivated.  I have found that those investors who have not had the benefit of working in a professional environment, know if they stay where they are, the prosperity they are seeking will not be forthcoming.  In fact, they most likely will be stuck in a dead end job with no way out — and what a tremendous motivator for these individuals that is . . .

4.  They are not afraid of hard work.  Successful investors are motivated by more then just money.  This is an extension of number 3 above… yet I believe this is the number one issue which separates the men from the boys.  These successful investors know the money will come, and it has the potential to come in big chunks, often with little effort, especially when compared to the number of hours required to generate that “big chunk” in the working world.  But, to get that money moving towards them, they have to work at it.

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I recently attended a Webinar dealing with the IRS which covered whether or not your IRA is operating as a true IRA providing you protection, and the advantages that come when dealing with the IRS.  Before I go any further, I want to make sure and point out that a majority of these Webinars – this one included – were all about inducing fear so that the listeners rush right to a registration page to sign up for counseling and immediately get money switched over to the service provider on the Webinar.  That is an unfortunate reality out there today.  Fear is a highly motivating emotion and fear of getting sued or losing all of your hard earned money are two very powerful fear triggers. 

So now that my little disclaimer is over, I can tell you that there were several good points brought up in the Webinar and this a fantastic forum to share those precautionary notes. In accordance with not making any assumptions, because we all know what assuming can do, right – I want to go over a couple of quick terms. What is an IRA?An IRA is an Individual Retirement Account.  It is not an actual investment and is often times mistaken to be one.  Rather, think of it as the investment vehicle that holds your investments such as stocks, bonds, mutual funds, real estate, precious metals or any other investment. IRAs are investment accounts that allow the owner to take advantage of various tax breaks and can come in many different forms – each with their own rules.How Do You Purchase Real Estate with an IRA?One of the most common ways that people purchase real estate with their IRA is purchasing shares in a REIT.  However, an investment that has gained a lot of attention and traction with the housing bubble is the Self-Directed IRA.  This is simply a characterization of an IRA where the owner makes the investment decisions for the account and not a brokerage firm.  Remember that the IRA is not an investment.  It is the vehicle.Traditional vs/ Self Directed IRAIn a traditional IRA there is a brokerage firm advising you as the IRA owner and they conduct transactions for you.  In a Self-Directed IRA, a custodian works on your behalf preparing the necessary paperwork to set up the IRA, but you are responsible for directing the investments.  It is estimated that over 80% of the Self Directed IRA accounts that close are closed because the owner of the SDIRA has never directed a single investment transaction.Now that we have a few basics out of the way, I will tell you that simply wanting to have a Self Directed IRA and actually putting it to good use are half the battle.  Making sure you put the IRA to good use in a proper and legal way are the other half and you don’t need to hire out services or buy a do-it-yourself protection plan to get the basics down.

Self Directed IRA Key TipsKeep Your SDIRA Passive:  A common misconception is unveiled when purchasers ask about using their IRA to purchase their own home or to purchase a second home.  A key component to keeping the tax advantages for your SDIRA is to keep it passive.  Arms length transactions are key and it is vitally important that investors only make purchases where they plan to use the property as an investment property that will be occupied by a tenant and not the owner themselves.Taking Cash Flow Distribution From Your Account:  The income provided from your SDIRA is absolutely your money, but that does not mean you can bypass the IRA and take the money directly from the investment.  The custodian who you choose to help set up your IRA is responsible for all distributions and all income.

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