So, You Need Clients?
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Editor’s Note: This article first appeared in the March, 1975, issue of the Real Estate News Observer.
This portion of the Real Estate News Observer is dedicated to those who need clients. Thus, the old timers probably don’t have to read any further as they probably have all the CLIENTS they need! To the new person in Real Estate, let’s offer some ideas on how to locate clients for buying, selling, optioning, leasing or joint venturing in Real Estate. As Ray Kroc, of McDonald fame sez, “Press On.”
The Premise
Let’s start with a premise that everyone, all Americans desire to make money. Thus, everyone you know is a potential “Taker” for an opportunity to make money. Some people like to make money in recent low performance investments; insurance, stocks, bonds, warrants, time plan deposits, Treasury Bills, notes, mortgages and many forms of Real Estate.
Look Toward Performance
Others like to make money in high performance investments. The definition of high performance investments are those which can be purchased smartly (buy low) and can be turned for profits in a reasonable amount of time. The reader is going to have to review his area to determine what type of investment can be purchased smartly and then turned for profits at a later date.
Wholesale V. Retail
This money making assumption should not be treated lightly as most Real Estate offerings are normally offered at retail price. Think “Wholesale.” All of your competitors (and there are lots of ’em) have the Retail vehicle to offer. Thus, the first step is to put your research gear to work and find a Real Estate vehicle which can be acquired on a Wholesale basis.
The Choice Is Yours
If you can have a choice, work on that property which offers a larger commission. Certainly a 10% fee is better than a 6% fee. Normally land or lot parcels are listed for a larger fee. Thus your acres of diamonds might be acres and land, quite often is appealing as, normally, it does not require management. Without going into the benefits of land ownership, the point of this notation is to work on the Real Estate vehicle which provides a larger fee. This fact makes business sense and brings up another money making point… .
Realism Makes Money
If you have properties listed at Retail prices, this might be the time to “re-council” these clients to secure a realistic price. Many clients in order to dispose of their Real Estate, will change listings from a normal fee of 6%, for instance, to 10%, in order to get increased activity from cooperating Brokers.
Goodies Spark Transactions
If you want to get increased activity, ask your owners to include two tickets to Hawaii (or other nice places) to the selling office. Many times, Brokers will go out of their way to “show and sell” a property of a “Little Goodie” is added.
Heard This Before?
The best place to find a Buyer is right at your desk. Take a plain piece of paper and attempt to put the name of an individual who might consider buying a property “Wholesale” and (let’s not forget) on reasonable terms. The following is a list of occupations to stimulate your securing a “potential” Buyer for a well thought out Real Estate investment:
1. Dr. (His pension profit sharing trust).
2. Dr. (A veterinary who is seldom asked to buy Real Estate).
3. A businessman who just made a “seasonal” profit.
4. A single woman who wants future financial security.
5. A former client who has the money but has never been asked to buy an investment.
6. An attorney who likes to draft a creative transaction with liberal terms.
7. The auto dealer who can use an “unsold” auto as the down payment.
8. The dentist who can use five years of dental care as a down payment, and has the ability to make the monthly payments.
9. The banker who can believe any “sane” person would carry a loan at 7% interest.
10. A fellow Real Estate Broker, who always like to make “the good deal.”
11. Any person who has the money but would rather use his signature on a note by buy real estate.
12. YOU! Secure a few investors to put up the cash and you put up your talent!
Think About It!
The whole idea of this article is to stimulate your mind, from another point of view, to put those transactions together which are within easy reach … if your mind and arm are long enough, GRAB IT! Don’t think about it, go do it!
