In this exclusive podcast with real estate expert Robert Shemin, author of How Come That Idiot's Rich and I'm Not?, Shemin responds to some of your previously submitted questions and reveals ways you can boost your income and land on the road to success.

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Posted on February 22 at 10:58 AM | Permanent Link | Add a Comment (1)

Quick Skim
For those who've wondered why some people seem to always find success while you struggle to live paycheck to paycheck, author Robert Shemin has the answer. In his new book, How Come That Idiot’s Rich and I’m Not? (Crown Publishers, 2008), Shemin provides a roadmap to becoming what he calls a “Rich Idiot” and building your wealth. He talks from experience, having become a multimillionaire himself by the age of 30 and owning a real estate empire of more than 400 properties. His wealth strategy relies on purchasing real estate, investing in stocks and bonds, and building your own business.

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From the Book: 5 Ways to Increase Your Wealth

The key to achieving financial wealth first requires unlearning some of the things that have been holding you back, Shemin says. Here are a few:

1. Stop thinking too much. If you overanalyze and spend hours studying and creating complex charts to evaluate decisions, you risk becoming too set in your ways and unable to accept new ideas. In other words, “you’ve become too heavily invested in your own smartness,” Shemin says. By the time you’ve made a decision, the opportunity has disappeared. Instead, get the basic facts, verify those facts through others who’ve taken similar opportunities, trust your instincts, and then, most importantly, take action.

2. Throw away your long list of goals. Too many goals scatter your focus and energy, Shemin says. Instead, have one goal and pick activities to work toward it daily. “Setting too many goals is like taking aim with a shotgun,” Shemin writes. “Setting one goal is like taking aim with a laser beam.”

3. Get into debt. Good debt, that is — those assets that bring in more money than they cost. Good debt includes a loan to buy real estate or a loan to start your own business. Bad debt eliminate — debt on credit cards or that fancy car.

To help manage your cash flow and prevent bad debt, follow a budget, such as spending 30 percent on housing, 10 percent on transportation, 10 percent on insurance/medical, 15 percent

on food and clothing, 15 percent on travel and entertainment, 10 percent on savings, and 10 percent on charity.

4. Never say “I can’t.” Instead, say “How can I?” Maybe you don’t have the big bucks rolling in now but even a small investment can eventually pay off. For example, just a $1 investment per day can reap big rewards. In 20 years (earning interest at 10 percent), you’ll have $21,129, or $1.1 million in 60 years. Up that to $250 a week in savings (also earning 10 percent interest) and you’ll get even more — nearly $1.2 million in 25 years and more than $36.7 million in 60 years.

Need inspiration to keep yourself on track? Create a wealth wall that consists of pictures and words on luxuries you want, vacations you want to take, and examples of good works, such as a scholarship you could sponsor or a shelter you could help feed. Use the wall as full-color daily inspiration to reaching your goal.

5. Get to give. Wait a minute, shouldn’t it be give to get? Shemin says that in order to give, the “get” must come first. “I know that most of us are uncomfortable with receiving,” Shemin writes. “But Rich Idiots think of getting in a very different way. Rich Idiots know that the more they have, the more they can give. In fact, Rich Idiots crank this thinking up a notch and believe it’s their duty to get more so they can give more.”

The law of “get,” Shemin says, is receiving abundance with gratitude. So “get” more by being thankful for what you already have and always asking for more, such as for help, advice, and money. Then, donate to important causes. Even when you don’t have a lot to give monetarily, you can give by volunteering for a cause or contributing to your community.

Rich Idiots strive for balance in their lives — what comes to them in wealth is balanced with the wealth that flows from them to others, Shemin says.

Sneak Peek

“What made that guy or that girl back then an idiot is the same qualities that are making them rich today. And what got you the good grades and the pats on the back and all the gold stars is what’s keeping you from getting rich. Duh! And you thought it was all about hard work, sticking to the rules, and never coloring outside the lines.”

About the Author

Robert Shemin, a nationally recognized real estate expert, is the author of 10 best-selling books, including Secrets of Buying and Selling Real Estate Without Using Your Own Money (Wiley, 2003) and Successful Real Estate Investing: How to Avoid the 75 Most Costly Mistakes Every Investor Makes (John Wiley & Sons, 2003). He has been involved in more than 1,000 real estate transactions and serves as a spokesperson for the The National Association of Real Estate Investors and the American Congress of Real Estate Investors. He also serves as a regular expert on wealth for CNN. He holds a law degree and an MBA from Emory University.

Posted on February 21 at 02:32 PM | Permanent Link | Add a Comment (14)

Here are the latest top selling books about marketing and sales from Amazon.com:

1. The Tipping Point: How Little Things Can Make a Big Difference, By Malcolm Gladwell

2. Influence: The Psychology of Persuasion, By Robert B. Cialdini

3. The New Rules of Marketing and PR: How to Use News Releases, Blogs, Podcasting, Viral Marketing and Online Media to Reach Buyers Directly, By David Meerman Scott

4. Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant, By W. Chan Kim and Renée Mauborgne

5. Guerrilla Marketing, 4th edition: Easy and Inexpensive Strategies for Making Big Profits from Your SmallBusiness, By Jay Conrad Levinson

6. Microtrends: The Small Forces Behind Tomorrow's Big Changes, By Mark Penn and E. Kinney Zalesne

7. Meatball Sundae: Is Your Marketing out of Sync?, By Seth Godin

8. The Now Habit: A Strategic Program for Overcoming Procrastination and Enjoying Guilt-Free Play, By Neil Fiore

9. Raving Fans: A Revolutionary Approach To Customer Service, By Ken Blanchard and Sheldon Bowles

10. The Long Tail: Why the Future of Business is Selling Less of More, By Chris Anderson

Posted on February 19 at 11:02 AM | Permanent Link | Add a Comment (1)

“I'm reading an excellent book right know called Terri Murphy's Listing and Selling Secrets (Dearborn, 1995) by Terri Murphy. I’m really enjoying this book because she provides you with ideas and systems that you can use to have a great real estate career while balancing your personal life. I'm reading this book to learn more ways on how to be efficient and successful in my work. After all, knowledge is power!”
— Trisha Motter, John Motter Realty, San Jose, Calif.

“I love this book — Meditations (Penguin Classics, 2006) by Marcus Aurelius — because it walks us through a great emperor’s mind which has inspired me to make a conscious daily choice in life: To fall a victim or rise a champion. People that lose in life believe others beat them down, when people that win in life know that winning is within.”
— Dave Robison, Robison & Co. Real Esate, South Jordan, Utah

“I just finished reading the The Little Black Book of Connections (Bard Press, 2006) by Jeffrey Gitomer. While this book isn’t geared specifically toward REALTORS®, it is geared toward anyone wanting to make connections in sales. It’s a great book … very easy to read, interesting, and his suggestions are all practical and can be implemented almost immediately.”
— Michelle Yanek, REALTOR® Associate, Four Seasons Real Estate LLC

Tell us what you’re reading. Send an e-mail to bookblog@realtors.org that includes the title of the real estate book and its author, along with your name, contact information, and what you like or dislike about the book.

Posted on February 12 at 10:03 AM | Permanent Link | Add a Comment (0)

Curt Fletcher, author of How to Sell More Homes and Increase Your Income (AuthorHouse, 2007), responds to your questions about generating more business.

Q: What should you do if you’ve been working with clients for a few months and every time it gets close to a final sale, they have an excuse? Do you have any advice for preventing clients from stringing you along and not making a move?

A: This is a very good question and also a common occurrence. The first thing you should do is ask them for a commitment or closing question. When you receive the excuse or objection, determine if the objection is a real issue or simply a request for more information.

To do this, I would use a simple questioning technique like this:

• Cushion the objection.

• Clarify the objection (This is a must before responding).

• Question (Make sure you know the proper objection).

• Respond.

• Confirm (Confirm that your solution works … do not assume it does).

If you still are not making any progress, I would make sure you have discovered their real buying motives. Simply meaning, sit down with them and go over (again) the needs they have for their new home. Perhaps something has changed or something was not understood correctly.

Q: How can you convince sellers that it's better to sell this year than wait until the market picks up again?

A: There is no guarantee that the market will be better or worse next year. I would go over the cost of waiting with them. If the market improves, what are the interest rates going to be? Lower? I doubt it. If they wait and their home value decreases, what was the cost of not selling then?

Often times, when you can gain an advantage by selling at a higher price, it is offset by the cost of buying also being higher and the rates being higher.

Q: How can you give a property that has been sitting on the market for awhile a new life and get it some buyer attention?

This is one of the more difficult scenarios, but it is very possible! Urgency is the key with a home like this. The first thing to do, is build up the curb appeal. Plant some fresh flowers, get the grass looking green and freshly cut. Maybe the home needs a fresh paint color for the garage or the siding. Nothing extremely expensive, but enough to make it “Pop!”

Then, to build urgency, I would create some buzz with a promotional campaign that emphasizes

“act now.” That means there must be a “perceived” benefit to the buyer. Perhaps it is a one-weekend only discount or a one-day only closing incentive. Perhaps it is an agent bonus that expires if the home does not close by a certain day.

Q: In the vocabulary glossary at the end of your book, you offer advice on words to use and not use with clients. Why are words like “house", “contract," "appointment," and even "sell/sold" so bad?

A: It isn’t that those words are bad, they are just not emotional. People buy with emotion and justify the decision with logic. The word “house” has no meaning. It is sticks and bricks or something that belongs to someone else, but a “home” is emotional. It is where you find peace, relaxation, and enjoyment. A home contains memories and invokes them as well.

The word “contract” is scary. It implies signing your life away! Whereas an agreement is pleasant and easy. Most people enjoy agreements, but fear contracts.

“Appointment” is a word that renders visions of the dentist or a doctor’s appointment … not very pleasant thoughts. However, a “meeting” is relaxed and enjoyable.

The words “sell / sold” are not good for a couple reasons. People do not like to be sold anything, but they love to buy or acquire things. “Salespeople” get a bad rap because there are some that are slimy and pushy.

Q: What do you think is one of the best uses of marketing dollars right now that can give you a good return?

A: Without a doubt, I would say your sphere of influence. I would spend my dollars with people that already know me, like me, and understand me. This means referral based marketing.

Offer rebates / gift cards for recommendations. Perhaps a dinner at a favorite location.

Marketing to the masses right now will not bring a great return on investment. I would keep it focused and targeted at people that are willing and able to help you.

Q: Do you have any tips for working with difficult clients? Should you just walk away or is there a way to still work with buyers who always have objections?

A: In many cases clients are difficult only until that moment when they realize that you truly care about their best interest. When that moment happens, they drop their guard and all their defense mechanisms and let you “in” to their real situation.

Objections often times are simply a defense or escape mechanism used to avoid commitment. If a client is a “true” buyer or seller, they will let their guard down if you provide value to them first.

Keep working with these buyers, but don’t focus on the buying or selling. Focus on them only. Discover the “emotional motives” that has brought them to a buying or selling situation. The home details will come later.

Q: Is it really possible to increase your income in a slower market?

A: Without a doubt, YES! Slow markets are the breeding ground for the top professionals. This is the perfect opportunity to gain market share for you. Let the other people focus on all the negatives. If you keep positive and really help people, you will gain more and more clients by simply being positive in the face of all the negativity. I promise!

Q: How should you go about qualifying a buyer?

A: It is important to determine several factors. These factors include timeframes for buying or selling, affordability and comfort ability.

I say comfort ability because your client may be able to afford “x”, but may only be willing to invest “y.” Making assumptions based on pay stubs or W-2’s is not a good recipe.

Many real estate professionals tend to overanalyze, “curb qualify”, or make false assumptions. Don’t do any of the three and you will see the benefits.

You are a professional that has a goal of providing value to your client; therefore, it is acceptable to ask them these questions. However, asking someone about their finances is not something that should be done before you have built rapport and have their confidence or you will fall into the non-caring pushy real estate basket.

Ask when they would like to move into their home or sell their existing home. Find out where they would like to keep a monthly investment. Determine what kind of initial investment they want to make. Ask simple, easy to understand questions after you have earned their confidence.

Q: What are some good rapport-building questions or topics to discuss when you first meet prospects and you're trying to gain their trust?

A: This is the part where you get to show off your amazing personality! In rapport building the key is to ask questions about your clients … and listen to the answers. Do not wait to speak. Really listen!

Do not talk about yourself, talk about them. People love to talk about themselves and their children. Avoid scripting and other such techniques. They don’t work!

Be yourself. Talk to your clients like you do your best friend. Ask them interesting questions. The goal here is to gain confidence and discover their “emotional hot buttons”.

You will very seldom discover their “true” emotional hot buttons without building rapport and trust. Don’t talk sticks and bricks or room counts. If someone says they want a big open kitchen, don’t assume anything. Ask them why and how they want to use it. Do they cook? If so, what is their favorite dish? Find out how they live in the home and spend their time there. They want to tell you … if you will let them!

Q: You recommend having a story about your community to share with buyers. Do you have an example of what type of community stories buyers would be attracted to?

A: This is where you get to share your expertise and knowledge. At this time, you can also tie back their emotional buying needs to a particular community. The key here is to have listened closely while you built rapport and trust.

Many real estate professionals work in a certain market niche. You need a target area that you have become well acquainted and know everything about. Focus on this area for your clients. It is hard to be an expert on every location.

This is basically a short story that builds excitement, urgency, and curiosity all based on their hot buttons. I have included a few samples that I have used in the past in my book.

Posted on February 4 at 09:49 AM | Permanent Link | Add a Comment (3)