How to Do Everything Wrong In Real Estate and Still Be Successful. Franklin Cruz

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      “Your network will determine your net worth. Build it carefully!”

      The following people will help you through the various aspects of your investments. This is a basic guideline for questions you will want to ask your potential team players. These questions are not cast in stone; they simply give an idea of what you need to know. Add some of your own questions as well, and keep in mind something is probably wrong if they don’t have most of the knowledge below.

      

Usually the best people for your power team are those who currently hold a real estate position or were real estate investors with a relatively recent history. They already understand what you are trying to do. It’s easier to work with someone who knows the game and has played it before. You don’t want anyone who insists on playing by an old rulebook, and you certainly don’t want someone who picks up a baseball and says “Let’s play golf!”

      When I’m interviewing someone for my team, here is what I generally look for:

      

Someone who is self-motivated, focused & open minded. Very often a real estate deal will move fast. If your team members are not dedicated, you could lose it. They should return every phone call promptly, and work hard toward getting to closing.

      

Someone local. It is important for them to be connected to the area where you intend to buy or sell real estate. He or she must be familiar with all the major players in the area.

      THE TEAM

      Realtor®/Real Estate Agent: A realtor is trained and licensed to assist people with the purchase and/or sale of properties. As a point of interest, I attended a real estate agent school and they mostly taught me what not to do in real estate transactions. They teach the rules without explaining how to be creative with contracts and assigning (wholesaling) properties. There are many more ways to make money in real estate than being a taxi service for someone. Your realtor should be willing to be creative. If he or she is not, find somebody who is. Remember, a realtor is not an investor - so if you want to learn how to be investor, don’t be realtor!

      “A Real Estate Guru once told me the MLS (the Multiple List Service where Realtors place properties for sale) is called the BOOK OF PRAYERS because everyone is praying their property sells!”

      “Always remember that every transaction is different!”

      Ask the following questions of any realtor you are considering hiring. You must be strong, and to the point. This can make you a lot of money. Conversely, not asking the right questions you can lose lots of money.

      

How long have you been a realtor?

      

Are you a part of the local Realtor Association in your area?

      

What events or meetings do you regularly attend?

      

What percentage do you make on commissions?

      

Is your fee on top of my price?

      

Do you work your fee into the sales price?

      

If I gave you more than one property would you give me a discount, and if so how much?

      

If I only want your services to put my property on the MLS how much is your fee?

      Mortgage Broker: A Mortgage Broker is someone who sells a loan to you and other lenders. The first step in the process is called Packaging. This is the procedure of getting all the proper documentation into one packet and forwarding it to a lender who in turn approves the loan amount you are requesting. From there, the broker works with the loan processor to meet all the specifications the lender requires in order to give you the loan. Once all those requirements are met (and they can vary by lender) you will close on the loan.

      The mortgage broker’s experience in closing loans is important. New brokers will not be as savvy, and will usually not be able to respond rapidly to provide both you and the lender with solutions, answers, and essential paperwork. It can break a deal if the broker can’t close it fast enough, so make sure the one you choose has a turn-around time which works within the constraints of your contract.

      “Remember: Focused ‘Go Getters’ are the key to every Power Team!”

      → The best deals are usually the ones which close in seven to fifteen days. Fast deals are best because more often or not the seller is desperate and just wants out. It’s emotional, and all he wants is for the pain to go away. I know, because I have been there. I have been through a foreclosure, and if someone had said “Here is a million dollars” I would have probably sold even though the group of properties was worth $2.5 million. People don't like stress. The faster you get these transactions completed, the better it is for both parties.

      “Try to look for ‘Win – Win’ situations where everyone benefits.”

      → You need to stay on top of the points. Points are how a mortgage broker gets paid, and each one is equivalent to 1% of the loan amount. This is very important, because if the broker charges too many, he is taking equity out of your pocket. The norm is two to four points, meaning two to four percent of your deal.

      → You need to become well schooled in looking for hidden fees. Study and familiarize yourself with a ‘HUD.’ There are many itemized fees there for you to review before a closing. Sometimes a processor will put a fee separate from the mortgage broker’s on the closing documents to the tune of an extra two to three thousand dollars (a processor’s fee can range from $750-$1500) even though the processor is working directly with the mortgage broker. This is just another way to squeeze more money out of you.

      → If a mortgage broker tries to charge you an application fee just say, “Thanks, but no thanks.” There are many mortgage brokers who need the work and will do the job without charging such a fee. Ask them for all