Dealmaker A Billionaire’s Blueprint for Success AUTHOR: Jerry L. Wallace PUBLISHER: Cameo Publications DATE OF PUBLICATION: 2006 NUMBER OF PAGES: 158 pages
“ All you have to do is step up to the plate.” This quote from Jerry Wallace pretty much sums up how he became the premiere Real Estate dealmaker out there.
By stepping up to the plate, and taking risks, he was able to turn his humble beginnings into a billion dollar Real Estate Company.
In this book, he presents us with his blueprints for achieving success in the fascinating field of real estate. After all, as he clearly points out, Real Estate is the best choice for investment there is.
THE BIG IDEA
Why Real Estate? Because, Jerry Wallace knows it’s the best and most rewarding way to get rich. In fact, dealing with Real Estate is the most secure and productive investment in United States for several reasons.
First, Real Estate is neither a commodity that rarely drops to zero in value nor does it dramatically fluctuates in value.
Second, owning real estate has several tax advantages. Third, Real Estate has always secured America’s wealth.
Finally, most riches have been amassed through real estate investment. Interestingly, there is no other commodity that offers the same benefits as Real Estate.
For Jerry Wallace, Florida was his jumping-off point, and until now, it remains as his primary market. He used to be real estate agent when he suddenly realized that it wasn’t enough for him.
Today, most of his projects are in Florida, but he was able to replicate his success throughout America.
Right kind of Knowledge
“ Location, Location, Location!” is the most often heard three keys to success. But, for Jerry Wallace, it’s not necessarily inaccurate. Instead, it’s all about the deal.
First, you have to make a plan. It’s very important to put together a solid plan that outlines your project and the details involved.
Second, it’s very crucial to know your product. If you are not knowledgeable about what you are offering, no one will be willing to invest in your project.
Third, it is also important to gain foundational knowledge-- or everything you need to learn in order to gain a basic knowledge about the Real Estate business that will serve as your foundation for future projects.
First, try to study your everyday routine and daily habits. Think about all the individual and measurable movements you do.
Second, try to organize your time well. Some people may be into creating a to-do list, while others may not. Whatever the method is, just make sure it’s effective and easy for you to follow.
Third, do well by doing well. Jerry Wallace firmly believes that you succeed by helping other people succeed also.
Fourth, build your reputation. It’s very important to be known for being an honest and forthright businessman. To be successful in the business, you need to have a reputation for high integrity, so that people would be willing to do business with you.
Fifth, maintain a balance in your life. Taking a break from all the work is actually helpful to your success. Learning how relax allows you to enjoy the journey more.
Sixth, socialize with the right people.
Secrets to Victory
Now that you know the secrets to victory, it’s about time to find out what Jerry Wallace thinks is the best way to create that perfect deal.
First, it’s all about negotiating that Win-Win deal. Remember that a win-win deal allows everyone involved to benefit from the project.
Second, be careful not to move things quickly. Do not rush your potential client by agreeing quickly to everything he or she says.
Third, study the contract. Drafting the contract is a crucial step in closing the deal. Creating a contract that offers desirable terms in payment is more attractive for potential clients.
Fourth, keep in mind the 1031 exchange. The 1031 exchange is an excellent option for those who want to sell their rental property, but fear the tax issues that are attached to it.
Being successful is a badge of honor. In order to help attract success, Jerry Wallace follows these four steps:
One way to market you is to create a buzz surrounding you. This may entail using the press to your advantage by sending articles about your success, or doing something that will surely be talked about.
Another is to be memorable. Try doing something outrageous.
Furthermore, be bold. Being bold requires you to take chances and some risks.
Finally, think big. It was Robert Browning who once said, “A man’s reach should exceed his grasp.”
The Way to Success
In order to get your plans done, Jerry Wallace believes you need to get organized. There are several ways to do this: create a document book, create a project overview book, and compile a land buying guide.
One very important thing for the seller to do is to keep in mind several things the buyer expects.
The buyer expects a reasonable selling price for the property.
The buyer keeps in mind the availability of the utilities.
The kind of subdivision lots being sold.
The buyer looks at the property. It’s important for them to have a visual before deciding on the property. As much as possible, offer them quality pictures of the property, the houses, and the surroundings.
The buyer also tries to discover any homeowner’s association in the area.
Identify Your Market
Now that you know the secrets to victory and the blueprint for creating your deal, you can focus on identifying your market, and unveiling your game plan.
Of course, you need to become a power broker before your plan comes to fruition. Here are 10 simple rules for achieving that goal.
Acquire a real estate license.
Familiarize yourself with your own real estate market.
Know the market value of the product you want to sell.
Look for experienced people who can help you with key areas of your plan.
Choose a property and/or parcels of land.
Determine the highest and most efficient use for your property.
Determine the best layout for the project on the land.
List all the amenities you want to include in a project.
Take your ideas to a reputable architect.
Prepare a proforma .
Finding the Ideal Location
The deal may be considered as the key to success, but don’t ever brush aside the importance of finding the ideal location. Since you have identified your market, it is easier to find the location you are looking for. Keep in mind who your potential clients will be.
Marketing Your Project
Knowing how to market your project can make or break your deal. It doesn’t matter if you have a great property and have a good deal. If you can’t market your project, success won’t come knocking at your door.
Jerry Wallace believes there are three ways to attract a potential investor. First, an investor can loan money to the company in return for a percentage of the profit. Second, you can have the investor buy the land to be used in the project. Finally, you can negotiate with the landowner regarding the price.
Securing funds or the seed money is important to see the project through, but more often than not, finding funds is the hardest part. The seed money is not used for construction; it is used for the soft costs and any land carrying cost required before the construction loan issue.
In finding an investor to give the seed money, you need to keep in mind several reasons. First, the investor is a passive one. Second, the investor is knowledgeable about real estate. Third, the investor may have the political influence to get permission for the project. Finally, the investor may be a good developer with experience. Jerry Wallace prefers either the passive investor or the qualified developer.
Never say something negative about someone.
Never break your promise even if it’s unfavorable for you.
Always pay back what you owe.
Always be on time for meetings.
Always honor the agreement/commission amount you agreed upon by you and your partners/broker/agents.
Get all your agreements in writing and signed by both parties in order to avoid potential conflicts.
People who cheat.
People who lie.
People who do not pay their debts.
People with harmful vices and addictions.
People with uncontrollable tempers.
People who are unethical in all their doings.
Follow these rules, and you’ll make it big in real estate. Don’t worry. It will work for you as it did for Jerry Wallace.
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