A student asked me to discuss what I’ve learned over my 30 years as a real estate broker, and investor. Wow….A Lot! So, this is an attempt to summarize those lessons!
1. How to leave effective voice mail messages. Really! It’s important!
2. Excellent Follow Through Skills
3. How to listen to collect more information, for successful negotiating.
4. Persistent Perseverance
5. Don’t babysit your deals! Pay attention to the deadlines, and where the deal I sat in the process, but then immediately move on to do another deal, while that one is “cooking”.
6. 6. DO babysit the other real estate agent! They are often asleep at the wheel, and you have to take responsibility for your own deadlines and getting the information you need at the right time!
7. I prefer “bread and butter deals”, because “The bigger they are, the harder they fall!” When values drop….the big ones drop the furthest! Also, commercial deals take longer to fill, when they are vacant.
8. Be a CASH FLOW investor, not an “equity investor”. When the deal has cash flow, it makes little difference if the value goes down!\
9. Don’t be afraid to invest in a location where you don’t live! If the cask flow I sbest elsewhere….DO IT THERE! You can always use Google Maps, streetview to see the neighborhood! You don’t even have to go there!
10. The lease you use can protect you! I have the best lease in the whole world, and all I ever attract is GREAT RENTERS! Three differences in my lease: 1) Auto-deduct from their checking account is REQUIRED, or they don’t rent from me! 2) If they file bankruptcy, my lease is EXCLUDED from that bankruptcy, and their continued rental of my property is at my sole discretion.
3.) I write the lease for $200. more per month, and IF their auto deduct is successfully deducted from their checking account to mine, then they get an automatic $200. reduction in the rent! IF not….THEN THEY PAY THE $200. MORE! And, it’s automatic! 4) I DO allow one dog, and/or one cat. People stay longer when they get their pets. But NEVER any smoking!
11. The long distance professional property inspector are my best friend when I’m buying a house I’ve never seen: They agree in advance to send my many, many pictures of the property, so I know what I’m buying, even though I’ve never been there. I pay them about $35. extra for all those extra pictures. They also agree to go to the local Home Depot or Lowes and buy a “For Rent By Owner sign, write in the phone number I give them, and also put a lock box (punch numbers code!) on the front door, so I can “SHOW” it long distance! THEY are invaluable to me, so I often pay them more if I need to or feel inspired to!
12. Last, but certainly not least, I have learned that your income should always be put into an investment that yields income! NEVER waste your income on putting it “Away”! Make it work for you! If not in real estate, choose ForEx, or Stocks, or SOMETHING! But, make your income EARN MONEY! Otherwise, You’re wasting your income!
By Dr. Janeen J. Detrick
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