Joe: Hey, it's Joe.
This next question is from Keate McGuire (good Irish name) from Sacramento, California.
"The market is booming in my area again.
Why would anyone want to do seller financing at this time?"
Joe: The reason you do seller financing - there's a lot of reasons you do seller financing.
I do seller financing on a lot of my properties.
I do it because it makes me more money or it solves the problem.
For a lot of people, its solving a problem, e.g. if they can't get their property sold
or if they don't have enough equity to get their property sold.
In most areas, even the booming areas, it's still hard to sell a for sale by owner.
The average for sale by owner, 85-95% all across the country, do not sell; they either
take them off the market or they list with a real estate agent.
But in really booming areas, it's still 50% of those people that put up for sale by owners
still are not able to sell because they don't understand the process.
So, you can come in there and you can give them their options.
They can go and they can sell through an agent or they can sell it to you.
If they sell it to you, they're going to end up making more money in the long run.
It always makes you more money if you hold onto these properties as long as you don't
have a lot of negative cash flow, so it makes sense for them to do it.
What we do is we do a lot of marketing.
The more marketing we do, the more people that come into our process and answer our
responses and say, 'Yes, I'd consider doing that'.
Now, if you're also in an area and you just feel like, 'Oh, it's not going to work here.
I can't do it here anymore'.
I hear that all the time and it's not true, by the way.
I've got people working in those specific areas where I hear that all the time.
But, let's say you just feel that way and there's nothing that you can get into your
head that it's going to work in that area - if you feel that way, you're probably right
- it's not going to work for you.
So, what you should do is look in a different area and the way that we've got our system
set up, the "Automarketer" makes it very easy for you to work remotely.
I've got a lady that's in Dubai who's working in Minnesota.
I've got somebody in Australia who's working in the United States.
I've got people in Canada working in the United States.
I've got people in Canada who are working in Canada.
I've got people in all different areas.
I've got one guy that's working in eight different states the last time I talked to him (and
he keeps expanding).
So, it's very easy to take this, find some boots on the ground for $8 an hour using a
Craigslist ad that can go over and take a picture of the house and put a sign in the
yard, and you can do everything else remotely - everything else that we do, i.e. making
offers, is done either over the phone, through email, by text blasts, by email blasts or
by voice blasts, so it makes it very easy to do it all in one location.
I find that if I ever leave my office (and right now I'm in my office with a black backdrop
behind me) - but whenever I leave my office, I lose two or three hours, so I try never
to leave my office when I'm working because I'm going to accomplish a lot more when I'm
here.
I can get other people to take care of the things that need to be taken care of on the
ground, such as pictures, lockbox on the door, sign in the yard, showing the property if
that's necessary (although we try to show properties remotely.)
I also have somebody else who talks to my buyers and I have somebody who talks to my
sellers, so I don't even have to do those tasks anymore.
Most people getting started have to do those things.
You have to learn it.
If you go out and buy a McDonald's franchise and it's going to cost you a million dollars
to buy a McDonald's, before they let you take that property and take that business, they
make you go to 'hamburger university' and they take you in there and teach you how to
clean the floors and the bathrooms at the McDonald's.
They teach you how to flip a burger.
They teach you how to talk at a drive through.
They want you to know how your business works.
I want you to do the same thing.
I want you to learn the systems, I want you to go through the process and I want you to
learn how to put a deal together.
The most important thing you can learn as an entrepreneur is how to put a deal together.
If you learn that skill, you'll be able to translate that into any business that you
do.
I have other businesses that I do other than real estate and other than this teaching business
that I'm in.
The ability to make a deal, the ability to talk to a seller and the ability to speak
persuasively is a very, very valuable thing.
Most fortunes have been made through that ability.
It's not really about the service or the product that you sell - it's about your ability to
sell it; it's about marketing.
Peter Drucker said, 'The only two profit centers in business are marketing and innovation.'
If you innovate new ideas, you can make money, but you have to market them.
Marketing is a profit center, not an expense - spend your money on your marketing and as
you do that and as it grows, your business will grow as well.
You just have to make sure that you can perform the tasks that you're paid to do.
I hope that helps.
Good luck.