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Getting to WHY

As I park the car in the lot, I notice quite a few empty spots. The building itself is new and the parking lot has freshly painted lines. A placard on the front door instructs visitors to sign in. As I open the door and step inside my nose is greeted with the smells of new carpet and paint while my eyes are drawn to a group of 6 men gathered near a large fireplace. They are engaged in a conversation and using their hands as they speak. I notice each one of them is wearing a hat with an insignia on it. I make a mental note to get a closer look. I approach the visitors’ desk and give them the name of the residents I am there to meet. The woman behind the desk picks up a two way radio and I hear her ask if they are finished with lunch yet. The answer comes back that they should be back in their apartment and I am given the number. I am in an assisted living facility. I am here to find out WHY.

I catch myself thinking “Wow, this is a nice place. I could see living here”. The elevator is taking a long time to come down and there is a line of folks waiting ahead of me. However, the stairs are empty. I climb the stairs to the third floor and begin looking for my door. As I pass each door, I see personal items and pictures on display outside of each apartment. There are pictures of children, men in uniform and wedding day photos. There are bowling trophies, crayon drawings, elementary school awards from grandchildren and birthday cards. I am being treated to a snapshot of what is important to these residents… of what they CARE about. I reach my door and knock. As I am told to come in, I notice a yellowed wedding photo hanging next to the door. The bride is holding a bouquet of yellow roses.

I enter a one bedroom apartment and see an older version of the groom sitting in a wheel chair in front of me. He is on a cell phone call and waives me over to have a seat on a flowered love seat. He is wearing a hat with an insignia on it. It reads, VIETNAM VETERAN, USMC. An older version of the bride in the photo comes around the corner in an electric wheel chair. She offers me something to drink and I accept a glass of water. She introduces herself and apologizes for her husband being on the phone. I speak to her about the many personal items I see hanging on the walls. She tells me about a recent surgery she has had on her legs that has left her unable to walk. I listen as she tells me her husband is receiving disability payments from the VA as a result of Agent Orange poisoning. She excuses herself and I am alone with her husband. I find myself listening to his end of the conversation. He is trying to cancel his home phone service at the house he has moved out of a month earlier. He is getting frustrated. The person on the other end of the phone has asked him what his home phone number is. He cannot remember and says, “I don’t know I never called myself… I had the same number for 22 years don’t YOU know what it is?!” I listen as he declines the offer to move his number to his new residence by saying “I’m in the old folks’ home now I don’t need a home phone number.” I can see the tears in his eyes and hear the tremor in his voice as he thanks the other person and closes the cell phone.

As he turns to face me I am able to get a better look at my host. He is wearing a blue work shirt with the word “Chick” embroidered on the left breast pocket. He has bandages on what is left of his legs. He sees me looking at his legs and says, “Diabetes finally got my legs, it’s hell to get old.” I explain that my wife has been struggling with type 1 Diabetes since she was a child and I know some of the challenges that go along with it. I point to his hat and thank him for his service during Vietnam. I remark that both my Dad and my uncle served in the Air Force and Army during the war. Chick tells me that he was part of a recoilless rifle company with the Marine Corps. He says there were days when the planes would fly directly over them spraying Agent Orange to “defoliate” the jungles they were operating in because their commanding officers said there was NO DANGER to humans from it. Chick worked as the manager of a Sears automotive franchise for the last 25 years. He began losing feeling in his hands a year ago and was diagnosed with nerve damage attributed to Agent Orange exposure. He could no longer work and had to retire from his job. The VA doctor then found out he has prostate cancer again determined to be from the poison. Chick borrowed money from his free and clear house to help make the ends meet. After a yearlong battle with the Veterans Administration and the insurance company they had approved them both for residency in the assisted living facility. Chick could not afford the $6,000 monthly expense on what he was taking home. Now, he had a vacant house with a payment that he didn’t want to make and in a market that he didn’t understand. The house wasn’t worth what he owed and he didn’t see a way out. Chick and his wife, Carol, then listened as I told them I was there to help them find a solution.

I feel I had earned the right for MY solutions to be heard. For my business plan to succeed it is imperative that I find out the WHY for each seller. I try to accomplish this by paying close attention to my surroundings and those of others. I prefer face to face meetings with the owners of the properties that I am interested in acquiring. I believe I have to reach the PEOPLE that control the houses in order to ensure success. I find that after I have developed a rapport with owners then we are on the same side of the table instead of across the table.

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Peter Fortunato is coming to Santa Ana in March

Peter Fortunato’s

PAPER COURSE

Santa Ana on Saturday & Sunday, Mar. 10 & 11, 2012 (9:00 – 5:00 daily)

Learn to Construct Transactions, Income and Wealth

Discover negotiating techniques and paperwork that make transactions work.

Get Pete’s clear, patient explanations, practical insights, and his 2012 workbook!

Two Days of Profit-Making Discussion and Documentation:

• Seller Involved Solutions • Terms versus Price

• No Quantity without Quality • What is a Note? What Secures It?

• Breaking away from Numbing Traditions • Leveraging without Debt

• Estimating and Using Loan Constants • Use Value versus Exchange Value

• Distributing Benefits and Responsibilities • Making Yourself Understood!

• Using Language to negotiate and document • Notes as Currency

• Negotiating and Substituting Collateral • Seller Financing ≠ a Loan

• When Paying Interest is better than 0% • Sacrificing Yield for Safety

• Leases with and without Options • Portfolio Building and Balancing

• Equity Financing versuss Debt Financing • How Paying More can Yield More

• From Negative Cash Flow to Positive • Bifurcating Owner-Carried Terms

Acquiring? – Use What You WANT, To Get What You Need, To Get What You Want!

Divesting? – Use What You HAVE, To Get What You Need, To Get What You Need!

Location: The Hotel Hanford (Overnight room rates at $129 per night for PAPER COURSE attendees)

3131 Bristol Street, Costa Mesa, CA 92626 (714) 557-3000 (Courtesy shuttle from airport)

Register for Pete’s 2012 PAPER COURSE Now! Fax to: (978) 922-6759

Card # Expires: CVV #:

or Mail this form with your check in the amount of $450 (or $350 each for 2 or more registering together) to:

Capital Protection Services, P. O. Box 8804, St. Petersburg, FL 33738 or call Pete 727-397-1906.

Register Online  www.peterfortunato.com

Registrant: With:

Address:

Phone: Email:

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Gary Johnston will be speaking this Wednesday September 28th at investors workshops on the topic of “Conversations with Sellers and Investors.” Gary and I had a great talk on the phone about what he is going to cover…. Take a listen.

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The GREATEST generation

I had occasion to sit down with 86 year old Anthony Hunt and his wife Joyce a couple of days ago. Mr. Hunt is a WWII veteran that saw major combat in the European theater against Hitler’s forces. His legs were frozen below the knee by the extreme temperatures but he fought on like that for 3 months (eventually landing in an English hospital for 9 months to recover). He cannot feel his legs although he CAN walk. However, because he didn’t LOSE A LIMB he did not receive a purple heart. I was dumbfounded when I heard that.

The thing is he is GRATEFUL to have served his country and done his part to liberate the world from Hitler.

As I sat in their assisted living apartment listening to his stories, I almost forgot I was there to buy the house they had been forced to leave for health reasons. They owe NOTHING on their newly built home but cannot seem to sell it for even what they paid for it. They were sick to their stomachs that they might have to take a loss as this represents MOST of their life savings.

To sum it up, I was able to show them how I would pay them what they were asking and provide a lifetime of dependable income and do it all very quickly. I gave them a first trust deed and note secured by the property. It was awesome and humbling to have this man of the GREATEST generation shake MY hand and thank me. Score one for the good guys.

Shawn Watkins

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FACE TIME

RAPPORT-is a term used to describe, in common terms, that two or more people feel in sync or on the same wavelength because they feel alike- (thank you Wikipedia)

It’s easy to get yourself into the mindset that SYSTEMS will set you free. Don’t get me wrong, it’s important to be organized and be able to plan what you are doing with your business. However, you also need to be constantly evaluating your skill set and honing those skills that produce the most results at a given time. Right now that skill is the ability to build rapport.

Let’s face it; things have been tough for most industries related to real estate. Where is the euphoria? Where are the giant paychecks? What happened to the never ending “up” cycle of real estate? This leaves the pool of real estate professionals very shallow indeed. Those that are still in the business are in a unique position of working HARDER than they have in the past for the same or LESS money than before. This has also left many SELLERS wondering what they have to do to set themselves apart from a distressed sale. (How many times have you seen a remark that says “NOT A SHORT SALE! EQUITY SELLER!”)

These market forces have created a terrific opportunity for real estate investors to have face to face conversations with Realtors that control inventory AND sellers/owners directly. Simply “piling on” offers week in and week out has worked for a few diligent investors. Those investors that take the initiative to start a CONVERSATION with owners or Realtors find the opportunity to find common ground. I mean who really knows when we will reach the bottom? Isn’t it more important to deal with a buyer that is HERE NOW and understands that not every property is a distressed sale? It is your job to make sure that the other party KNOWS that you are different. It is truly a rare thing in this business to make the effort to present your offers in person. I know, I know, some of you are saying “I don’t have time to meet every seller” or “I just fax my offers”.  That is not a pathway to becoming a priority to that seller or Realtor. Sure, you will get your offers out there but they will not be remarkable in any way.

This market is perfect for those that are willing to sit knee to knee with sellers and tell it like it is. If that means you have to make it through their agent then so be it. We are in the beginning of a GREAT time in the market where you will be handsomely rewarded for your ability to actually carry on a conversation with people. It’s OK to ask why they are asking that price or why they are selling or why they painted that bedroom green! There is something that happens when you can actually see their reactions to your questions. As for agents I get a lot more traction with them when I am sitting across from them asking them to present a “no down, subject to, graduated payment” offer to the seller rather than trying to smooth talk them over the phone. I believe it has something to do with the fact that you took the time to acknowledge them in person instead of assuming they would just rollover with your fantastic phone and fax skills.

I have made a concerted effort to focus on FACE TIME over the last 6 months in my own business. I have seen it yield amazing results and would highly encourage other real estate investors to try this very simple tactic in their own negotiations.

Shawn Watkins

(Source: http)

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Quick overview of “subject to” buy for a condo.

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Here is a short video about why I prefer investing in investment real estate rather than gold.

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Short video about how an ALL INCLUSIVE TRUST DEED is used. I will be teaching a FULL DAY on title and escrow in Orange County on Saturday August 13.

(Source: investorsworkshops.com)

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Best equipment for recording phone calls?

I want to be able to record phone calls I make/receive from sellers so that I can “critique” myself after the fact. I use my cell phone for all of my calls. Can anyone tell me what they are using to do this?

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“Subject To” Challenge

So as many of you know (because you were in attendance) we had an OUTSTANDING live negotiations class this past weekend. As a result of that class I was challenged to get a SELLER FINANCED deal in Orange County by May 26th. I have accepted the challenge and will be posting my progress here.

I look forward to your feedback and input!

Shawn Watkins

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