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Recently I had the opportunity to sit down with real estate investment expert Russ Whitney and talk about the importance of developing strong sales and negotiation skills. Whitney is the bestselling author of several books, including The Millionaire Real Estate Mindset. Here’s what he had to say:

Jordan Taylor: If knowing how to identify good deals is what’s really important about investing in real estate, why do investors need to worry about their sales and negotiation skills?

Russ Whitney: Knowing how to identify good deals is certainly a critical part of real estate investing, but it’s not the only part. Your investment may be an inanimate object, but in the process of making that investment, you have to deal with people. If you take a look at anyone who has made a lot of money–regardless of the circumstances or the vehicle they used–you’ll find they have at least one trait in common: They have top-notch selling skills.

JT: What do you say to someone who wants to invest in real estate but doesn’t want to be a salesperson?

RW: First, get rid of any preconceived notions you may have about what being a salesperson is all about. It’s not about making a slick, fast-talking presentation or tricking someone into buying something they don’t want, won’t use, and can’t afford. Selling is about solving problems. It’s about creating win-win situations. It’s about honesty, integrity, knowledge, and building relationships that serve everyone.

Second, understand that you can use sales skills in just about every aspect of your business and personal life. Think about it: buying a house for no money down, getting a loan at a bank, convincing your spouse to support your dreams, even persuading your toddler to eat his vegetables–it’s all selling. Once you realize this and work on developing your sales skills, you’ll find it much easier to reach your financial goals–and in fact, you’ll find just about everything in your life is easier.
Too many people think that in any negotiation, you must have a winner and a loser. That’s just not true. You want people to come away from a deal with you feeling good, and that’s why you work on reaching a win-win resolution. Communicate clearly enough and consider all your options so you can come up with a plan that benefits everyone involved. That’s successful selling.

JT: But isn’t it fair to say that not everyone is cut out to be a salesperson?

RW: Not at all. The techniques of positive communications–which is what selling basically is–are techniques anyone can learn and develop. There is no such thing as a “born salesperson.” Learning the techniques may be easier for some than others, but everyone can learn them.

JT: So how can someone learn effective sales techniques?

RW: Read books on sales. Go to seminars. Invest in some education. I have discussed this topic in all of my books. I write very specifically about sales techniques and how to use them when negotiating real estate investments. I also explain how you can use sales and negotiation skills in other areas of your life.

JT: What do you think is the most important thing for someone to know about developing selling skills?

RW: Always operate with truth, honesty, and integrity. Your reputation is the most valuable asset you’ll ever have; guard it well.

Jordan Taylor is the editor of Millionaire Mentor

Buying a residence can be a hair raising experience. You will experience a roller coaster of emotions while finding the right place, securing the loan, closing and finally moving in. For most of us, the first time home purchase is the largest investment we’ve ever considered. The emotions of purchasing something so expensive and personal can often cloud our business judgment.

Most home purchasers do little or no research before they make such a large investment. Doesn’t it make sense to become as completely informed as possible before you buy your first home? This special report is designed to help you avoid 10 common and crucial mistakes.

1. Thing about using a Professional-As a buyer, consider using a Professional Real Estate Agent. It’s free! All of your Agents fees are paid by the seller of the home you buy. You as a buyer, get the experience and knowledge of an expert and don’t have to pay for it. An example of this is, say for example, that you have $150,000 to invest in the stock market; most of us wouldn’t attempt this without the help of a professional. Just as this is most likely the biggest investment you will ever make, don’t go at it alone, the paperwork, the legal aspects, making sure your rights are protected and many more major parts of the purchase should be handled by someone with experience. Especially if it’s FREE!

2. Inspect, Inspect, Inspect-Whether you hire an Inspection Company or you ask a knowledgeable family member or friend to inspect your new home, a small investment in the beginning can save you hundreds or even thousands of dollars down the road.

3. Income + Lifestyle = Mortgage Payment-Sit down with your mortgage officer and honestly discuss your income level and living expenses. Take into account future considerations, children, add-ons, amenities, and fix-ups. Your dream home is certainly worth a sacrifice but don’t mortgage your entire future.

4. View Several Homes-See at least 4-6 properties. Don’t move too slowly but don’t move on the first property you see. With your agent’s help you should be able to view enough properties to get a good overall perspective of the home market. When you find the right property all the leg work will be worth it.

5. Utilize Your Team-By aligning yourself with the right real estate professional you will have an entire team at your disposal. Utilize your lender, title rep and agent. Each of them should work hand in hand for your benefit. Explore all the options before you sign.

6. Be Columbo-Check out all costs and expenses before you sign, utilities, taxes, insurance, maintenance and home owner dues if applicable. Make sure all utilities (gas, electricity, and water) are on during your walk-through so you can inspect everything in working order. Ask lots of questions and be very detail conscious.

7. Do a Final Walk-Through-Visit the property after all furnishings have been moved out to be sure there are no surprises. Be absolutely positive the property was left exactly as you had agreed upon in the contract. Things that could have been spotted in a final walk-through are often unintentionally overlooked.

8. Plan For Flexibility- Closing dates are not written in stone. Allow for contingencies and have a back-up plan. If you or the sellers need a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.

9. If It’s Not in Writing, It Doesn’t Exist- All promises and discussions should be in writing. Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. Have your professional keep an ongoing log in writing of all discussions and get the seller’s written approval on all agreements.

10. Loyalty Breeds Loyalty-Be open, honest and up front with your team. Hard feelings and disloyalty will cause head aches, delays or may even keep you from getting into the home you worked so hard to locate. Take the time to select the right team in the beginning and your first home purchase will be a pleasing and memorable experience.

The author is a successful Real Estate Investor and a licensed Real Estate Agent.

This article may be freely distributed on the condition that all hyperlinks and anchor text are kept active and not altered in any way (including cloaking links or adding the nofollow tag). Anyone using this article that alters the content or hyperlinks agrees to pay the copyright holder $100 for use.

http://www.surveymillionaire.com

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[tags]Real Estate, Investing,[/tags]

Contractors are a reason that a lot of people are afraid to get into real estate investing. They hear horror stories from other investors or homeowners who got screwed by contractors and are shell shocked into believing that the only thing that is safe to do is to Wholesale or Lease Option.

To those who are afraid of the big bad contractor, beware of the investor who cries “wolf” because no matter what form of real estate investing you do, sooner or later you will need to hire a contractor.

Whether your doing full blown rehabs, subject to, agreement for deeds, buying apartment buildings, lease option or even wholesaling, you are going to need to use a contractor and you want to know a secret? They’re not that hard to work with.

Actually if you follow some very simple rules you will substantially decree the risk of getting screwed by any contractor.

Those you have been mistreated and had a contractor walk off the job with thier money and not return or had a contractor who would rarely show up, never trained themselves properly to work with these tradesmen.

Now don’t get me wrong. I say tradesmen because those are the only type of contractors that I have work for me. There are many people out there who claim to be tradesmen but are nothing more than thieves in the night.

The first rule or working with contractors is to ask for and check his/her references. Too many people skip this step because they are in hurry to get someone, anyone on the job so that they can get finished. This is their number one priority.

They soon find out that this is not the contractors number one priority, especially since they already got a good chunk of money up front.

Even if you check thier references and your “gut” tells you that this may not be the person for your job, listen to your gut. Your going to have to be married to this person until the job is finished. Make sure it’s a marriage made in heaven.

You must then have the contractor sign a Contractor Agreement. You must have a binding contract that spells out the rules that both you and the contractor will follow as the job progesses towards completion.

If you do not have a Contractors Agreement signed, you have just set yourself up for failure.

Here are the key clauses and addendums that you need in your contract:

1) Scope Of Work – make sure all of your contractors bid on the same job. A lot of contractors omit items from thier bid so that they can charge you “overages” later.
Be as specific as possible when describing the scope of work. For example, if it is a roof that is being replaced, make sure the contract specifies the type of shingle, the style, the manufacturer of the shingle you want to use, how it will be fastened down… the more specific you get, the more protection you will have.

2) Draw Schedule – Never give a contractor 50% up front! You drastically increase your chances of never seeing him again. I give enough to cover the supplies and to pay his guys for one week, then I split the rest up into thirds.

3) Change Order – Be clear with your contractor that if any additional work is done on the property, if he doesn’t fill out your Change Order and have you both sign it, (I will only sign it after I have inspected the proposed additional work) you will not pay for the work.

This is a common tactic with less scrupulous contractors.

4) Penalty Clause – I have a penalty clause in my contracts that charges a contractor a certain amount per day for each day he is over the date that he said he would be done. The amount is usually $100 but it depends on the job size. This clause is a must!

5) Damage Clause – This states that the contractor will pay for any damage that he or his workers do to any other part of the property when they are on site. Contractors are always damaging other contractors work. Why should you have to pay? You save money with this clause over and over again.

6) Contractors Home Address And Phone Number – If he knows that you know where he lives, the chances of him disappearing go down drastically.

7) Clean Up Clause – You want your job site broom swept clean at the end of every day. You never know when a potential buyer will be coming through and if you don’t keep the place clean it will quickly look like a dump. Nothing attract trash like trash!

If you treat your business like the business it is, you will be treated like a businessman from your contractors.

Contractors are not hard to deal with if dealt with properly. Consider yourself informed.

There is a lot, A LOT of money to be made in real estate investing. Go out and get your share!

David Lindahl has renovated over 475 houses in 6 1/2 years and is the author of “How To Estimate And Renovate Houses For Huge Profits“.

[tags]david lindahl,real estate investing,fixers,rehabbing,contractors[/tags]