Agent mechanics free report

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Agent mechanics free report

  1. 1. Agent Mechanics SPECIAL REPORT: 3 KEY REASONS WHY EVERY AGENT MUST HAVE A PROPERTY MANAGEMENT DIVISION 1
  2. 2. Agent MechanicsNo part of this special report may be reproduced or transmitted in any form or means, electronicor mechanical, including photocopying, recording, or by any information storage and retrievalsystems, without written permission from the publisher and author.Agent Mechanics is a trademark of REI Training Corp.© 2010 by REI Training Corp. All rights reserved.Published by:REI Training Corp.(800) 545-3650(661) 414-8588 [Fax]Mike@AgentMechanics.comwww.AgentMechanics.comPrinted in the United States of America 2
  3. 3. Agent Mechanics SPECIAL REPORT 3 KEY REASONS WHY EVERY AGENT MUST HAVE A PROPERTY MANAGEMENT DIVISION What you will learn in this Special Report: • How to explode your real estate sales • How to achieve more personal freedom • How to realize continuous and predictable cash flowEvery real estate sales person uses some kind of prospecting tool. Some items that come to mindare print advertising, community outreach, social networking, door knocking, and farming.All of these can be effective; but none of these can explode your sales, help you achieve morefreedom, and realize continuous cash flow like using property management as a bolt-on to yourexisting real estate sales business. BENEFIT #1 - EXPLODE YOUR SALESAlthough we all call this property management, you should always be looking at it as a leadgeneration tool for sales.There are a number of reasons thatHuge customer loyalty:What happens when you have a client who’s home won’t sell, but they need to move? Is itpossible they may decide to rent that home instead of selling. So who do they turn too? You.But you don’t do property management, so you refer them to another company. That company isgoing to bond with your seller. And when it comes time to sell, who is the seller going to turntoo? That other company.Doesn’t it make sense that it is you that should be handling 100% of the real estate market place?Shouldn’t it be you getting paid each month while the seller waits for the market to rebound? 3
  4. 4. Agent MechanicsAnd do not forget that you can bond with tenants as well. Maybe you have a buyer who’s creditis not as good as it needs to be in order to buy. Place that tenant in one of your rentals, help themwith their credit repair, and keep them informed about the market.Who is the buyer going to use when it comes time to buy? You. Why? Because they havegrown to know, like, and trust you. They couldn’t think of using anybody else.Finally, what about investors? In today’s marketplace there are many investors out there. Whynot promote yourself as the “go to” resource for investors in your market? You can sell theinvestor the property, manage the property, and then resell the property down the road. Imaginethe amount of money that you could make over the course of that relationship. What kind ofdifference would that money make to you and your family?No longer prospect cold leads:When you cover 100% of the real estate market all calls become warm leads. Unlike yourcolleagues, when you contact “expired listings” or “for sale by owner” customers it is with acompletely new message. You cover 100% of the real estate market place so no matter what theydo you have them covered.Leads call you:When a property owner calls to inquire about renting their home you already know they want totake action. The only thing you have to determine is if they really want to lease, or would rathersell with you.The same situation is true with tenants calling on signs. Do they really want to lease or wouldn’tthey rather buy? Do they know about all the special financing options out there that could makethem homeowners?Double your referral database and sphere of influence:You will be receiving calls from the other 50% of the marketplace that you don’t currently cover.Those callers are customers that are now in your database.You will also be able to go out the marketplace and re-promote yourself and your newlyexpanded business. If you were looking for a great reason to call on your past customers, here itis. You will be the new go-to resource in your community for all things real estate. 4
  5. 5. Agent MechanicsExpandable into new markets and territories:Property management is an excellent way to expand into new territories and markets. Say yourthe king of West Town real estate and you want to go be the king of East Town real estate. ButEast Town has already got a king. This is a great way to fly in under the radar.You put up a couple lease signs, when someone asks you what kind of experience you have inEast Town you say, “I do lots of real estate transactions in East Town. No one knows more aboutEast Town than I do. If you want to invest in East Town, there is only one way to invest in EastTown and that’s through me.” BENEFIT #2 - ACHIEVE MORE PERSONAL FREEDOMWhen we talk about real estate, having freedom, it’s not a word that comes up very much. Butthat’s one reason we got into this business, for the freedom. One of the nice things about themanagement business is that it pretty much runs itself.Build a team:Show of hands. How many people have a staff? Great, they’re going to run this business foryou.How many people don’t have a staff yet? Great, you’re going to have plenty of extra money tohire one. And the added benefit? They’re going to do some of the other work you’re doing onthe sales side now. That’s even more freedom for you.You’ve heard from many experts that there’s a difference between working in your business andworking on your business, right? If you’re working in your business, you’re the employee ofyour business, right? Did anybody get into this business to be an employee? No, we got in thisbusiness to be owners. We’re the boss. If you want a transition to being a boss, you’ve got tostart working on your business. So that means you’ve got to go get people to work in yourbusiness.When I was an agent, when I was hiring my first assistant, I was absolutely scared to death toknow I’m going to have to come up with $15 an hour for that person. What if I don’t sell ahouse this week? What if I don’t sell a house for three weeks? Am I going to spend three monthstraining somebody during the summer when it’s busy and then in December not have a sale for acouple of months and now all of a sudden have to lay this person off?When you’re managing properties, getting the monthly cash flow, it’s paying for that assistant.So now, if you don’t sell a house for a few months, do they still get their paycheck? Absolutelyand you get the benefit of having them do your other work. 5
  6. 6. Agent MechanicsSo now you can be a more effective agent. Are you more effective processing paperwork or areyou more effective converting leads into sales? Well leads into sales, right, because that’s whereyour talent lies. If I could give you 10 to 20 hours more time per week to prospect, would youmake more money? Of course you would.Do you have a buyers agent? Would you like to have a buyers agent, or an additional buyersagent? Your buyers agent is now also your showing agent.If you’re not in a position where you do a lot of business yet, you’re going to be. If you had ashowing agent, you could have that person show the rentals because a good showing agent isalways previewing property, whether it’s for sale or rent or if it’s a model home, it doesn’t matter,they need to be learning the neighborhoods.Second, you don’t have to pay them anything because what happens is, these people that arecalling in, they’re going to be buying a home at some point. Your showing agent is supposed tobe building relationships with them anyway. When that caller buys a house from them, that’swhen your showing agent really gets paid. They now have an incentive to convert callers intobuyers.Also, these rental properties give your showing agent a fantastic opportunity to do open houses.Across the country, open houses are still huge. So your showing agent, could they or could theynot, hold a very nice home on 123 Cherry Street open for a rental? Absolutely they could. Ifsomebody wants to buy a home from them when they get in there, is that okay? Probably. Ifthey want to rent that home, is that okay? Absolutely, that’s their job.So now you have an assistant being paid for, and if you wanted to, you don’t have to, if youwanted to, you still have the income to pay your showing agent a salary.Continuous flow of leads:Because you have a continuous flow of leads you have the freedom to grow your business, oreven get away from your business temporarily. Another way it gives you freedom is theseprospects that you’re talking to, you know when they need to move. You don’t have to wait forsomebody to call you and say yeah, I’m moving in the next week, come on over and put myhouse on the market. So you can plan accordingly around your sellers that want to sell. Youknow what needs to be done, when it needs to be done.So, if you want to go to Costa Rica for a week, and you know Mr. Smith’s lease is up a fewweeks before that, you know you need to call and set the appointment to list that home for salebefore you go. Now you can easily plan your time and are still available to do what you wantwith your family. 6
  7. 7. Agent MechanicsBy the way, the smartphone is a very valuable tool. We use web based software to manage ourcompany. So whether I’m in California or Costa Rica, that tells me what I need to know. Andthat helps me achieve more freedom too.Remember back when we used to mail a letter, then we faxed it. With the mail we used to havelike two or three days to respond. Then the fax gave us like a day. Now we have e-mail and theexpectation of instantaneous communication.So, one of the things we use to achieve more freedom in our daily business, but make people stillfeel like they’re being contacted, we use auto responders. If someone communicates with usabout a rental through our website, I want to see this house or I want to know something else orhow much is my house worth, they get an auto responder immediately. “We got your message,we’ll call and talk to you shortly. Meanwhile…” or, “Thanks for the request, we’re going to do aquick market analysis for you and let you know. Give us 24 hours, meanwhile make sure you’veseen the virtual tour on my website, drive the neighborhood, ...”Do you think that, other than answering their question, do you think that’s the last contact I’mgiving them? No. They get automatically enrolled in my drip campaign and for the next 12-months, they’re going to receive information by, from, and about me.This is just one method that you can use when you get back to your office, in order to stay inbetter contact with your clients. Make them feel like they’re being contacted. Meanwhile, am Iin my office? No.And by the way, they’re pretty impressed when they get a quick response back from you. I’mwith my family at the lake, watching the kids swim and I’m still impressing the hell out ofclients.Business prospects for you:The management business actually prospects for you. How does it do that? Here are just a fewways: your website, print advertising, social networking, car advertising, for lease signs just toname a few. Every place you advertise sales, you could say “and management.”Does it make sense that everywhere you have a sign hanging you are buying braincells? Anddoes it make sense that the more signs you have in the community, the more successful youappear? And is it reasonable to assume that people are going to call off your signs?For us, those signs are bringing in business. We give our staff the right scripts to convert tenantsto buyers and owners to sellers. The business is actually prospecting for us, and it can do thesame for you. 7
  8. 8. Agent Mechanics BENEFIT #3 - REALIZE CONTINUOUS AND PREDICTABLE CASH FLOWThere are a bunch of ways to use property management to generate continuous leads: website,print advertising, community outreach, sphere of influence, social networking, flyers, mailers,signs and riders, open houses, door knocking, expired listings/FSBO/FLBO, and car signs. Andwhat do continuous leads lead to? Continuous cash flow!Let’s talk about the different ways to make money in this business because there’s more than youwould think. What are some of the ways that you think you can make money in propertymanagement?Management fee income:Let’s just say you were proactive and got 25 homes times $1,500/month times 10% is $3,750 amonth. Could you could pay your assistant’s salary with that? Of course.Okay, great. So, if an extra $45,000 a year sounds good to you, raise your hand. Alright, well,that’s not good enough.MLS:Let’s say each home is $1,500 a month and we’re going to get 3% of a year’s lease. That’s $540.How many times could you do that? Maybe a couple of times a month? Should we put $1,080?Okay. $1,080 times 12, that’s another $13,000 a year.Do you think an extra thirteen grand could pay for an awful lot of your advertising, website, 800numbers, long distance bills, things that you’re not currently doing now? Could this pay to wrapyour van, to put stickers on your cars? Absolutely.Lease only:No matter how smart using a property manager is, there are still people who want to be their ownlandlord. We get a minimum of $1,000 to find a tenant for a property. So if we’re doing two amonth, that’s $2,000 a month, $24,000 a year.Is this number looking a little better? We’re up to $82,000 now. Great, we’re on a roll, you likethis? Yeah, okay. Now what else? 8
  9. 9. Agent MechanicsMarketing/advertising fees:Do you think your showing agent might be trainable to go put these people’s homes on themarket if you’re in the Bahamas? We’ve got a full-time person that does it for 250 bucks a pop.We average ten new properties a month. But let’s say that you get two new full managementproperties, and two lease only properties a month. That’s four properties. And, let’s say you didit yourself. That’s another 24 grand.Now we’re over $100,000 a year. Raise your hand if this number is getting a little better. Raiseyour hand if you made more last year in real estate.If you never sold a house next year, could you live off an income like this? This is what we’retalking about, this is what’s going on. And we aren’t done. What other sources of income arethere?Eviction protection plan:What are owners most scared of these days? Eviction. You’re going to enroll them in youreviction protection plan. We charge $15 per owner per month. Let’s multiply that by the 25homes from earlier and that’s $4,500 per year.What are we going to do with that? Oh yeah, that’s our vacation for our family in Cancun.Alright, now what else?Vendor income:What if you charged 10% on top of every invoice for maintenance and repairs. They’re doing$3,000, we’ll get $300. That’s another $3,600 a year.What else?Late fees:There’s another couple of grand. Now we’re well over 100 grand a year. You see how you couldmake a good living at this folks, without ever selling a house. Take all of that out of theequation; take real estate out of the equation. Could you live off this? Yes. Now, add whateversales you did last year, double it, that’s what can happen to your business next year.And we haven’t even talked about rent protection plans, inspection fees, renewal fees, and re-keying fees. 9
  10. 10. Agent MechanicsSome of these things we have been talking about, could you probably implement that? Could youcall for a lease by owner? Could you call a for sale by owner? Could you run an ad? Could youput a sticker on your car? Could you do some of these things? I thought so.Alright, forget it; let’s say you didn’t do any business last year. Let’s say you’re generating tensign calls a month. We’re contacting 20 people a month. There’s 30 contacts a month. We’resending out 100 mailers. Do you think maybe we could get five leads?On top of the over 100 grand a year that you’ve made, how many additional sales that youwouldn’t have otherwise gotten, are you going to get? That’s where this whole thing comes from;they’re going to double your business.If you start doing 100% of the business, you’re business doubles. So if you sold 20 homes lastyear, you’re going to sell 40 next year. That’s it, plain and simple. You’ve got twice the leads,twice the database, twice the sphere of influence, twice the everything. It’s pretty logical thatyou’re going to sell twice as many homes.With less effort, absolutely no overhead, plus a tremendous income. Would you agree that this isa better real estate model than 99% of the models out there right now? Is there any reason youwouldn’t or couldn’t do any of this?You think you won’t have time for it? It won’t take you anymore time. I just showed you howyou’re going to have more time and your staff will be taking care of your every need.You think you don’t have the money for it? It pays for itself. I just showed you how the incomefrom your management business not only pays for itself, but also pays to support your real estatebusiness.The person responsible for your management website and advertising is also doing your realestate website and advertising. The person responsible for your management showings is alsodoing your real estate showings.The management business is putting money in your pocket, financing your staff, and giving youmore free time. It couldn’t get any better, but it does.Have you always wanted to do passive advertising, or print advertising, or postcards? Do youthink those kinds of things would help you sell more homes? This 100 grand a year can do a lotof mailings, can do a lot of print advertising, can do a lot of house advertising, can do a lot ofwhatever you want. You see folks, this is the way you do business.It took us three grueling, expensive, mistake making, lawsuit threatening, you name it, years toget where we are. But what if I told you you could have this business up and running in the next30 days. We did this and it took us three years and we can show you how to do it in 30 days. 10
  11. 11. Agent Mechanics ABOUT AGENT MECHANICSAt Agent Mechanics our goal is to teach you how to explode your real estate sales, achieve morepersonal freedom, and realize continuous and predictable cash flow. Agent Mechanics offers amyriad of training product. Our Agent Cash Flow Secrets series teaches you everything youneed to know about starting, running, and operating a successful property management business.In addition, our patented Fast Track Day can have you up, running, and making money in lessthan 30-days.Agent Mechanics lead trainers are Mike Bjorkman and Scott Taylor. Mike Bjorkman has been areal estate agent for 20-years. He is also a real estate broker and investor. Mike has completedover 4,500 real estate transactions and has been in the RE/Max 100% Club for last 15-years. Inaddition, he is part of RE/Max’s Top 1% in the Nation, a RE/Max Hall of Fame Member, a RE/Max Chairman Club Member, and a RE/Max Platinum Club Member. Along with his businesspartner Scott Taylor he currently manages over 200 residential properties.Scott Taylor, A.K.A. America’s #1 Landlord Resource, is the author of The 15-Minute Landlordand a recognized expert in real estate investing. In addition to being a real estate author, lecturer,and trainer, he is also the co-owner of the property management firm SCV Leasing in SantaClarita, California. He owns many rental properties in several states. Scott brings depth andclarity to owning and managing rental property through his writing, speaking, and teaching. Hehas a knack for describing complicated ideas in simple ways that makes learning fun and easy. You now also understand: • How using property management leads to increased customer loyalty • How to build a real estate team that pays for itself • How to make over $100K a year in real estate before even selling one home 11

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