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Op/Ed

Four smart ways to work with investor buyers

Investor buyers can be your cash cow if you work with them properly (and well), but can be a waste of time if you read the tea leaves incorrectly. Here’s how to tell that you’re on the right (or wrong) path.

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home investors

Each and every week, I get more emails than I can count from investors looking to write offers on our brokerage’s listings. These emails are usually written under the guise of making a backup offer, just in case the current offer on the table goes sour.

They look something like this:

“I am an investor and saw your home on Random Street Name listed as pending. I know it has been pending for a short time, however I wanted to see if the buyer was still hanging around. I can pay all cash and have proof of funds. If the property falls out of escrow for some reason, please give me a call. I hope we can put something together.

Are You Working with Daddy Warbucks?

Agents come to me when they see these emails because they are excited at the process of putting together the next amazing deal—that the have this new Daddy Warbucks who is going to purchase homes all across town.

From my perspective, this sort of email buyer gives me reason for concern. I’ve seen tons of agents accept offers from cash investors that have gravitated towards the real estate market since 2008. These are individuals looking for a steal or an amazing deal—probably one that does not exist.

Long gone are the days when sellers will accept cents on the dollar. Short sale lenders and lenders with foreclosed homes hate lowball offers. They do not want to be nickeled and dimed by someone who believes that their cash is king. (After all, even if the buyer obtains a loan, the seller still gets cash at closing, right?)

4 Components of a Strong Purchase Offer

  1. Solid, reputable buyer. Even if you’ve just met the buyer 30 minutes prior to showing, you’ve got to carefully vet this individual. If he or she happens to be an investor, what properties has he recently purchased in your area? Has he flipped and resold these properties? Does he hold them as rentals? If you are going to write an offer on behalf of a buyer, you are putting your professional name on the line, and you should only do that for buyers with whom you are completely comfortable.
  2. A realistic price. Let’s face it. Nobody likes a low offer. In fact, some offers are so frivolous that they can be offensive to sellers. With short sales, banks don’t like low offers. As such, buyers need to be educated on the status of the local real estate market. If your buyer insists on writing low offers over and over, how many do you plan to write before you see this as an exercise in contract practice and not a reasonable way to earn a living?
  3. Proof of funds. Always obtain proof of funds. If someone is writing a cash offer, make sure that the individual or entity writing the offer is also the one with the money in the bank. Some investors leverage other people’s money to make deals happen. Other investors use a concurrent closing method whereby they sell the property again for a higher amount without ever spending a dime. Know what you are getting into and obtain proof of funds.
  4. Rational Terms. Closing in three days? Inspection and appraisal to be completed in five days? Generally, real estate transactions cannot happen that fast—even if you want them to. Make sure that the buyers request reasonable terms so that you will have an on time closing.

There’s nothing wrong with working with investors. In fact, a few good investors in your pipeline may mean increased money in your wallet. But, the fact is that you need to be smart with your time and professional in your actions. Don’t get overly excited the next time a prospective buyer dangles a cash carrot right in front of you.

Melissa is an in-demand business success speaker and author, as well as a real estate broker with thousands of short sale transactions under her belt. She leverages her experience as a short sale insider to motivate thousands of business professionals to plan their careers better, execute more effectively on their plan, and earn more because of it.

Op/Ed

5 Consumer behavior shifts caused by the pandemic

(EDITORIAL) COVID-19 has changed the way a lot of people look at and act in the new world. These are the biggest 5 changes you should be aware of consumers.

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consumers priorities

COVID-19 is affecting businesses in multiple ways, depending on the industry. One thing that affects every business, regardless of industry is customer behavior. It’s no surprise that customers are changing behavior to meet the challenges of the pandemic. Google just released information that should help your business. It’s estimated that over 4 million people are staying home around the world to slow the spread of coronavirus. Use this information to help you shift your marketing efforts.

  1. Consumers are using multiple devices more than ever before.
    With kids home trying to do school, parents who are working, and people who are furloughed, content is being consumed at record rates. According to Google, Americans are watching 12 hours of media content each day.
  2. Increases in search for critical information.
    Online grocery shopping and cooking videos are top searches these days while Americans are staying home. Telemedicine is another hot search topic. People are looking for ways to stay home and protected.
  3. Consumers want to stay connected online.
    Google announced that in April, Google Meet hosted over 3 billion minutes of video meetings. YouTube has seen an increase in “with me” videos. People are filming themselves going about their day to connect with their friends and family. Virtual events have changed how people meet up.
  4. Routines are changing to be “internet-first.”
    Telecommuting is a top search these days as consumers try to find ways to work from home. People are looking for exercise options that can be managed at home. Consumers are using the internet to find options that keep them socially-distanced but connected to their routine.
  5. Self-care is taking a higher priority.
    Meditation videos are being consumed at a higher percentage than before. People are looking for books, games and puzzles to stay occupied at home.

Consider Your Business Against Consumer Behavior

COVID-19 restrictions may be easing, but consumer behavior may not change much until there is a vaccine. Your business can use this information to change your marketing to meet consumers at their point of need.

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Op/Ed

5 Secrets to a more productive morning in the office

(EDITORIAL) Productivity is king in the office, but sometimes distractions and other issues slow you down. So what can you do to limit these factors?

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distractions stop productivity

Regardless of whether you’re a self-proclaimed morning person or not, more efficient mornings can be catalytic in your daily productivity and output. The only question is, do you know how to make the most of your mornings in the office?

5 Tips for Greater Morning Productivity

In economic terms, productivity is a measure of output as it relates to input. Academics often discuss productivity in terms of a one-acre farm’s ability to produce a specific crop yield, or an auto manufacturing plant’s ability to produce a certain number of vehicles over a period of time. But then there’s productivity in our personal lives.

Your own daily productivity can be defined in a variety of ways. But at the end of the day, it’s about getting the desired results with less time and effort on the input side. And as a business professional, one of the best ways to do this is by optimizing your morning in the office.

Here are a few timely suggestions:

  1. Eliminate All Non-Essential Actions


    Spend the next week keeping a log of every single action you take from the moment your eyes open in the morning until you sit down at your desk. It might look something like this:

    • Turn off alarm
    • Scroll through social media on phone
    • Get out of bed
    • Eat breakfast
    • Take shower
    • Brush teeth
    • Walk dog
    • Watch news
    • Browse favorite websites
    • Get in car
    • Starbucks drive-thru
    • Arrive at office
    • Small talk with coworkers
    • Sit down at desk

    If you do this over the course of a week, you’ll notice that your behaviors don’t change all that much. There might be some slight deviations, but it’s basically the same pattern.

    Now consider how you can eliminate as many points of friction as possible from your routine. [Note from the Editor: This may be an unpopular opinion, but] For example, can you skip social media time? Can you make coffee at home, rather than drive five minutes out of your way to wait in the Starbucks drive-thru line? Just doing these two things alone could result in an additional 30 minutes of productive time in the office.

  2. Reduce Distractions


    Distractions kill productivity. They’re like rooftop snipers. As soon as they see any sign of productivity, they put it in their crosshairs and pull the trigger.

    Ask yourself this: What are my biggest distractions and how can I eliminate them?

    Popular distractions include social media, SMS, video games, news websites, and email. And while none of these are evil, they zap focus. At the very least, you should shift them to later in the day.

  3. Set Measurable Goals and Action items


    It’s hard to have a productive morning if you don’t have a clear understanding of what it means to be productive. Make sure you set measurable goals, create actionable to-do lists, and establish definitive measurements of what it looks like to be efficient. However, don’t get so caught up in the end result that you miss out on true productivity.

    “There’s a big difference between movement and achievement; while to-do lists guarantee that you feel accomplished in completing tasks, they don’t ensure that you move closer to your ultimate goals,” TonyRobbins.com mentions. “There are many ways to increase your productivity; the key is choosing the ones that are right for you and your ultimate goals.”

    In other words, set goals that are actually reflective of productivity. In doing so, you’ll adjust your behavior to come in proper alignment with the results you’re seeking.

  4. Try Vagus Nerve Stimulation


    Sometimes you just need to block out distractions and focus on the ask at hand. There are plenty of ways to shut out interruptions, but makes sure you’re also simultaneously cuing your mind to be productive. Vagus nerve stimulation is one option for doing both.

    Vagus nerve stimulation, which gently targets the body’s vagus nerve to promote balance and relaxation, while simultaneously enhancing focus and output.

  5. Optimize Your Workspace


    Makes sure your office workspace is conducive to productivity. This means eliminating clutter, optimizing the ergonomics of your desk, reducing distractions, and using “away” settings on apps and devices to suppress notifications during work time.

Make Productivity a Priority

Never take productivity for granted. The world is full of distractions and your willpower is finite. If you “wing it,” you’ll end up spending more time, energy, and effort, all while getting fewer positive results.

Make productivity a priority – especially during the mornings when your mind is fresh and the troubles of the day have yet to be released in full force. Doing so will change the way you operate, function, and feel. It’ll also enhance tangible results, like income, job status, and the accolades that come along with moving up in your career.

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Op/Ed

5 Side hustles that could turn into your new career

(EDITORIAL) With COVID throwing all jobs out of whack, maybe now you can explore something new and actually make a career change. Here’s 5 side hustles to try.

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side hustles

When you think of finding a side hustle, you might picture yourself finding an obscure job as a bike courier three nights a week or maybe even walking your neighborhood dogs. Both of these positions can be fun and pay extremely well depending on who you work for.

There are endless opportunities for part-time, enjoyable, profitable side hustles. However, if you take on any of the following side gigs, you could end up with a new career.

1. Day trading

Day trading is the purchase and sale of a stock, bond, or security all within the same day. Many entrepreneurs are drawn to day trading because it’s fast-paced and risky, but with the right skills, day trading presents a potential for serious profit.

If you’re curious about day trading, RJO Futures published a guide on how day trading works. RJO’s article explains that whether you trade from a large firm or on your own, you’ll need three tools:

  • Access to a trade desk. This will give you instant order actions the moment your trades are placed.
  • Analytical software. Analytical software will help you identify key indicators to inform your next move.
  • Access to news outlets. Day trading – specifically day trading futures – is volatile. Prices move by the second and having access to news outlets will give you a heads up if your market might be affected.

Be aware that if you enjoy day trading and get good, you might want to go full-time. It’s possible to turn day trading into a career, but the learning curve is steep.

2. Investing in real estate

Real estate is a lucrative industry, but it’s not for everyone. Popular among entrepreneurs, investing in real estate requires long hours of study, extensive research, and getting your hands dirty.

Usually, real estate investors have side hustles to supplement their income. However, many people get into real estate as a side hustle and end up turning it into a career.

If you want to get started in real estate, don’t jump to investing right away. Take the expert advice from the folks at Bigger Pockets and start by learning about the industry. Get a part-time job as an assistant property manager to pick up industry knowledge and learn your local landlord-tenant laws. If you’re going to invest in real estate to rent out, you’ll be a landlord at least for a short period of time until you hire a property management company.

If you know someone who can help you make your first investment, you don’t need to wait. However, to be successful you have to think outside the box to gain a full spectrum of industry experience.

3. Content writing

Every business needs content writers and many are willing to settle for any level of proficiency. If you have any writing skills, you can easily pick up some content writing gigs on job listing sites.

If you love writing, you might start out writing one blog per week and decide you want to pursue writing full-time. If it’s truly your passion, stick with it and you’ll find the right clients who will pay you generously for your work.

4. Coaching

Whatever people are struggling with, there’s a coach to save the day. Life coaching and business coaching are the most popular, but you can coach people on anything you’re passionate about.

Being a coach isn’t easy. Even people who intentionally start a career as a coach struggle. What most people don’t realize about coaching is that passion does not equal profit. Coaching is a hard sell, but life coaching is especially difficult. Running a coaching business requires more than business skills – you need to be proficient at helping people solve their problems.

If you’re good at helping people solve their problems, there’s a chance you might get addicted to being a coach. There’s nothing more satisfying than helping people grow and transform their lives.

5. Thrifting

It’s not hard to find sellable items at your local thrift stores. However, you need an eye for what people want to buy. If you’ve got that eye, you could end up with a new career.

For example, Natalie Gomez, a former merchandise planner at Macy’s, took on thrifting as a side job and wound up making thousands of dollars. Gomez was interviewing for a new job when she realized she was already making a good living selling clothes.

Enjoy your side hustles

Even if you don’t turn your side gigs into a career, take on gigs you enjoy. Money is necessary, but it’s never worth sacrificing your happiness.

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