Thursday, October 18, 2007
Saturday, October 06, 2007
Complete this survey to get an understanding of your sales Effectiveness and Profitability with The GUTS Sales Training System.
1. Give a presentation, brochures and powerpoint slide show to your prospect as soon as
Answer: False. It’s an Unbelievable Waste of Time. Ask some tough upfront questions
with finesse first. If they don’t have the need, money or character/authority to
give a commitment, you are just spinning your wheels.
2. It’s all right for a prospect to think it over before committing?
Answer: False. Not in the G.U.T.S.™ world of selling. Think it over means you have lost control and probably never had it in the first place. It’s the prospect’s way of really saying ‘no’ to you, but trying to be polite. I often tell a prospect upfront, that they are not allowed to worry about my feelings. I ask them to just be honest enough to say ‘no’ if my product or service is wrong for them. In alternative cases, I will tell the prospect that it’s Over. Note: See my www.youtube videos, specifically, “It’s OK to fire the prospect”.
3. Always ask for the order?
Answer: False. Never ask for the order unless you are a beggar. The professional controls the sales process and allows the Prospect to give him the order. Is it any wonder that most salespeople are annoying or that they have a large number of prospects who renege on the order the next day, aka: buyer’s remorse?
4. Cold Calls are necessary for successful selling?
Answer: False. Never make cold calls unless you are a masochist. All calls to strangers should be approached as a return call. Successful selling is a combination of being a Thespian and Therapist. Always act like you are getting back to the prospect.
Salesman: Hello Mr. Prospect, I have your number here. Why are we talking?
Prospect: I don’t know, you’re the one who called me.
Salesman: This isn’t about real estate is it?
Prospect: Well, I do have a house for sale.
Salesman: OK, now I understand. How can I help you?
5. Stalls and Objections are opportunities to get commitments.
Answer: True. When a prospect brings up a problem to the average salesman, they become defensive and go right back into their presentation schtick. The Pro, however, uses this opportunity to make a sale.
Prospect: We only buy hybrid widgets in lots of 100 and yours are 150.
Salesman: What would happen if we could make them in 100 unit lots?
Prospect: We would consider it.
Salesman: What do you mean by consider? What would I have to do to earn you business today?
Prospect: Well, I can give you an order for the next quarter if you can deliver them in the smaller amount of 100.
Salesman: Suppose you took the 150 lot, but I was able to save you 20% because of the larger quantity. What would you say?
Prospect: If you can save me 20%, then you have a deal.
Salesman: What? I couldn’t hear you.
Prospect: (Yelling) I said you can have the order now!
6. Work hard always.
Answer: False. While working hard is commendable, working smart puts money in your pocket. Working hard with unqualified time wasting prospects is foolish. I would rather spend more quality time with a prospect who has a Need with the ability to pay for it and the character and authority to give me a commitment leading to an order.
7. Sales is about being a Missionary and spreading the word about your product or service.
Answer: False. Sales is about making money by selling products and services that give unbelievable value to your prospects.
8. Sell yourself before you sell the product or service.
Answer: False. This is the old fashioned way of selling. Prospects are not buying your tired rapport and bonding fishing stories; they are really buying solutions for their needs, greeds and fears. Pretentious type, “I want to be your friend” selling, is an insult to both parties. “If you want a friend then get a dog.” Harry Truman
“If you want a life without worrying about money, then get to the bottom line fast with finesse”. Max
9. Prospects buy when they become informed.
Answer: False. Prospects buy first, because of an emotional motivation or catalyst. They only justify their purchase with academic information later on.
10. Sales is the Highest paid profession in the world?
Answer: TRUE ! The highest paid people in business may have titles like entrepreneur or CEO, but in reality they are just great salespeople. The problem with 99% of salesmen is that they are not professional and have not learned the skills of the art and science of human persuasion and behavior. Sales is about having a Method that allows you to control the process and the ability to feel great about yourself while making unlimited income.
Monday, September 24, 2007
QUALIFY AND GET COMMITMENT IN 3 MINUTES WITH THIS REMARKABLE TECHNIQUE AND DEVICE.
WHY ARE YOU REALLY IN SALES ?
THE TITLE SAYS IT ALL :-)
A few great ideas for you to ponder
Different fun and profitable strategies
What to do to avoid or get out of an eviction mess.
Free Lease Purchase Speaking Gig
Tuesday, July 17, 2007
Friday, April 13, 2007
There's alot being said about taking over a property using a "Subject To" agreement, and how much better that is vs. doing a Lease Option. What is your feeling about that?
Good to hear from you.
Essentially a "subject to" deal is where the buyer and seller do a deal/sale subject to the existing mortgage staying in place under the sellers name (and liability).They do a private contract which is usually not recorded so as not to alert the lender about a change in ownership.
A "subject to" has many advantages however it also has a downside because it is an actual sale and with it carries PERSONAL LIABILITY. This can be offset by some creative legal maneuvering, contracts, corporation etc.
There is also the question of the violation of the Mortgage contract (Due on Sale and acceleration clauses). In rare cases the mortgage can be called in and then the buyers could lose everything they paid on and the seller retains the liability and credit reporting problems.
The Subject To is a great deal if you are the investor and the seller is a world class sucker, fiancially desperate or unbelievably motivated. Why ? Because the seller has all the risk and the buyer has little.
A Lease Purchase allows you the exact same control without the liability (you don't own it). You can sell it, rent it, sandwich lease it, assign it,buy it, live in it yourself and much more.
You are not responsible for the overhead, repairs and have the protection of being a tenant with right and not mortgage obligations.
Consider this, Why does the Chicago commodities exchange exist ? because you can make money without taking possession of a trainload of pork bellies. Same for the Stock market with calls and puts.
Its all about leverage. You can control a lot for a little without the liability of ownership.
Study all the truly great real estate investors, Rockerfeller, Zeckendorf, Even Trump and they all use options to their advantage.
Success in all your Endeavors
(970) 726 7979
Free Ebooks and Audio CD's: wwwClaudeDiamond.com
Real Estate Blog:www.TheLeasePurchase.com
Sales Training Blog:www.GutsSales.com
Saturday, February 10, 2007
A podcast is a simple way to watch or listen to great information either on you Ipod (I have a Nano) or right on your computer.
Just go to
http://web.mac.com/mentor/iWeb/Site/Podcast/Podcast.html and click on the subscribe button to receive the latest hot info all for free.
or if you have Itunes software (free) go to : http://www.apple.com/itunes/store/podcasts.html
you can just go to podcasts search and type in one of the following"
a. Claude Diamond
b. Lease Purchasing
c. Guts sales training (new)
Articles, newsletters, Podcasts (audio and Video) all on our favorite subject -Making money with lease Purchasing.
Ton of irrevernet humor on the greatest home business in the world.
Yes, you have a millionaire lifestyle and still retain a sense of humor. heck why do you think I still answer my own phone 970 726 7979
All we did was eat at " In and Out Burgers" (a California delicasy), Fish Tacos and do some surfing, golf and other fun stuff. The weather was in the 70 to 80's. The real estate market is so exciting these days. Tons of motivated sellers and plenty of L/P buyers.
This on one of my most popular Audio CD sets called Live in Las Vegas and you can have it by going to my web page
Register with a postal mail address and we will send it out Priority mail today; all at no charge-freebie-gratis.
BTW We will never give out your address to ANYONE ! You have my works on it !
If you want more info just give me a call I answer my own phone (970) 726 7979
Enjoy the CD set
I have a great book on Lease Purchasing in a easy to read Adobe PDF format. Just go to my main web Page
http://www.claudediamond.com and you can get it emailed to you or you can download it.
Its called "Conversations with a Lease Purchase Mentor.
Here is a few pages to give you a taste.
CONVERSATIONS WITH A LEASE PURCHASE MENTOR
by Claude W. Diamond J.D.
Over the years I have had the pleasure of Mentoring select individuals from all over the world. They wanted to have the same success that I found with this wonderful (but seldom used and misunderstood) technique called Lease Purchasing. What you are about to read is an actual Mentoring session that I conducted and had transcribed verbatim. I believe that this is an extremely valuable section of my book. It contains so much hard information and includes so many excellent questions in a readable and hopefully entertaining and motivating format.
I hope you enjoy reading it.
Claude “The Mentor” Diamond
Claude: Good Morning! Let’s get started learning about The Best concept in real estate, Lease Purchasing. First a little background. When I got started in real estate many things that were true then are still true today. There is still a plethora of Guru’s selling books, tapes and seminars. They all seem to sing the same song , get rich quick purchasing foreclosure fixers, putting nothing down, using sweat equity and so on. I followed al this wonderful advise and for the most part had nothing to show, but thousands of dollars in debt, liability, negative cash flow, overhead like taxes, insurance, repairs, legal fees, principle and interest payments. The management of the tenants was no picnic either. I had very little control of them. They paid either late or in some cases not at all. There were constant evictions, attorneys, repairs and malicious damage. I had to work a second part time job just to keep up with all the debt.
Client: Wow, I would have quit at that point.
Claude: I was almost ready to quit, but then I heard of a man who was a self-made millionaire with an unusual technique. This concept would allow me to control good properties in good neighborhoods without the bank qualification, large down payments and would be profitable from the beginning right to the end. He was my Mentor, Max. He taught me some of the basic principles which I am going to share with you today. Max used to say
“Why own real estate when you can control it.”
I didn’t have a clue what he meant. He also used to say, “just let everyone else buy it, fix it and then we will control it.” You see Max came to this country with nothing. No credit, no money just knowledge of the principles of leverage and control which we are going to discuss today. The concept of Lease Purchasing!
Client: OK - OK!! Let’s get going here I’m biting at the bit.
Claude: All right. There are so many different kinds of lease purchases or option techniques so before we get into strategies let’s begin with a good foundation and start off this discussion with a good definition of a Lease Purchase.
A Lease Purchase is really two basic concepts in real estate; Leasing and Purchasing.
The first concept is the lease or as some would call it the rental. In a lease we obtain temporary possession of somebody else’s property. We do not own it and title has not changed, but yet we control it. We can rent anything in our society, cars, lawn mowers, motel rooms. We can rent any kind of real estate like mobile homes, condos, townhomes, single family residences, large estates you name it.
If we can rent somebody’s property and obtain possession, we can have partial control of it just as any other tenant does.
The second part of the definition is the option to purchase. Option to purchase means you have the right not the obligation to purchase somebody else’s property for a pre-negotiated price and terms. Or we can rent something; we can use it for our own needs and for others. We can pre-negotiate a possible purchase of this property for sometime in the future.
Now the one thing that is quite imperative in a lease purchase is getting the assignment clause negotiated into the contract if we want to personally control it. An assignment clause gives you the right to subtly, transfer and convey any rights which you have negotiated within the contract to a third or fourth party. If done correctly we can now control someone else’s home without the purchase, transfer of title or loan and our costs are fixed to just a simple monthly rent just like any tenant would pay.
The only thing you really have to understand about lease purchasing is that you can make more money by controlling other people’s real estate than you can by trying to go out and buy your own real estate all the time. For example, you go out and buy your own real estate; you have got to com up wit a lot of down payment, 10 to 30%. You have got to qualify for a loan, you have to pay taxes, insurance homeowners fees and all this stuff. You are responsible for the maintenance, if the roof leaks that¹s your problem. I think we have all been basically brainwashed that the only way we can be involved in real estate is by buying it all the time and that is simply not true.
We can control property by negotiating long-term leases with options or rights. A lease purchase from the investor’s view point is that we can control this property the same way a tenant can control it. We can put one or two months down for as long a lease as possible and then go just a it further and negotiate all the terms of the purchase. We don’t have to pay the axes, insurance and homeowners fees. We are not responsible for maintenance on the property if the heating system goes out or if the septic tank leaks.
We can have more control by optioning or leasing with optioning a property than you can by buying. This is what you must understand in order to succeed with this specialized knowledge.
Now I am going to break down my strategies into four different parts. I call them My Four C’s.
The First “C”
The first “C” stands for Control. I want to control other peoples’ properties. How do I get this control? Normally this involves some kind of motivated seller. What does every guru at every seminar say? They say find the motivated seller. Well, I have some shocking news for you, not everybody is highly motivated. (I know you knew this already). The beauty of lease purchasing is that we have a technique that can work with the non-motivated person, too. This technique is really not well known because it is a niche and it is often utilized by many. If it is presented to people and we educate them on its benefits and advantages we can work with the non-motivated person, too. We are going to start, however, with he motivated seller for this portion of the First “C”.
Who is the motivated seller? Did you ever get stuck with a property? We have all been there. We all know what it’s like when we want to get out of the property, when we have the tenants from hell or when real estate is going down in value. This could be a seller who is being transferred, moving, experiencing a family change, one who has built another home, has a new job, has no job, for many reasons. We just don’t want to buy it, we want to control it.
The control strategy involves two distinct techniques; Sandwich Leasing and Assigning. Let’s begin with the sandwich lease. This is essentially a home where I can negotiate a log term contract with the right of assignment. I like sandwich leasing because there are a multitude of profit centers within it. You were looking for good properties, in good neighborhoods, no more war zones and no more major fixer uppers.
Client: What is the difference between sublet and sublease?
Claude: Basically they are the same thing. I use the word interchangeably to mean renting a home with the right to purchase from Owner “A” and then turn around and rent it with an option to Tenant “B”.
Client: Exactly what kind do you mean?
Claude: My favorite phrase is as follows: “I like good properties in good neighborhoods.”
I don’t mind if they are blue-collar neighborhoods, middle/upper class, etc. I just don’t want to go into the war zones or deal with major fixer upper properties. "Been there, done that!" My Don Quixote days are over, thank goodness.
I am not going to get the type of option money I am looking for by trying to sell something to people they don’t want. Further, I don’t want to make capital improvements on properties I am only renting. Finally I want this property to turnover within 30 days or less. All this is common sense, yet it goes against all the conventional thinking propagated by your well-known gurus, writers and speakers. Gee I wonder why?
Client: Do you have a dollar limit here? What kind o repairs are we talking about?
Claude: I am talking about cosmetic repair. I don’t mind if a property needs a little paint or carpet cleaning, new toilet seats or minor things, that’s fine, but I don’t want to do the major renovation stuff. It’s too time, money and energy consuming. There are plenty of good homes in good neighborhoods without the hassles. I don’t want to do lease purchases on hard to move properties. Yes, I want it all and with Lease Purchasing I can have it.
People want to live in good areas with good schools and amenities. It doesn’t have to be the prettiest house in the neighborhood, but they want stable neighborhoods.
Client: How did you come to this philosophy?
Claude: When I started in real estate I thought that I was smarter than the marketplace. I got some of the worst properties in neighborhoods and even with generous rent credits they were sometimes very difficult to move. The tenants were less than motivated and the upkeep was costly I thought that I was getting a “steal of a deal” but in reality all I was getting was an alligator property and a constant headache. The way creative real estate is taught today by many is just going to result in frustration and burnout with loser properties.
Client: Claude, I recently heard a speaker who was preaching about his wonderful technique of going to the ugly properties and war zones, etc. We should pay 20 to 30 on the dollar for these properties and then flip them with creative financing. From what you’re saying this is not a viable method, is it?
Claude: Why would anyone want to own, much less control, homes in high crime areas or costly fix up properties when you can control much better homes with a Lease Purchase? It just doesn’t make sense. As I said my Don Quixote days are over. I am through fighting windmills or for that matter, hard to market properties. We don’t make any money when we are stuck with the monthly payments, high advertising costs and repairs. The bottom line is we lose money, don’t we?
Client: If we can’t feel safe when working on a property, then we don’t want the property under any condition, correct?
Claude: Exactly, and you know what I have discovered there’s just as many properties in these good neighborhoods. It’s just a matter of where we focus ourselves and our efforts.
Client: Now what kind of properties are we talking about here?
Claude: Condos and townhouse are fine; I have done a lot of them. Single family homes are excellent. I love those especially, the bread and butter 3 bedrooms/2 baths. I have even done mobile homes. Have you read a wonderful book on mobile homes by my friend, Lonnie Scruggs?
Client: I own mobile homes and I never heard of this book. How do I get it?
Claude: Just call Lonnie at (75) 436-2197. It costs around $30.00 which is a bargain. Best yet, Lonnie usually answers his own phone. I love mobile homes, I’ve made a lot of money and I’ve created a lot of paper with them after I read Lonnie’s book and I applied my lease purchase methods.
Client: What about the expensive homes, the high end stuff?
Claude: If you want to get into the high end real estate you can do that too, but of course you are not going to commit substantial funds to those kinds of deals. The last thing you want to do is get stuck with payments on a home that’s running a couple of grand a month. There are some Lease Purchase techniques we can use in these types of properties, too which I will discuss later. (See Cooperative Assignments ― the 2nd “C”).
Client: Alright, Claude one quick question. At a well known Guru’s seminar we were told to negotiate six month Lease Purchase leases only. Do you agree?
Claude: That strategy just doesn’t make any sense. It probably sounds real good during a seminar, but once you’re out there doing the work the NO’S are going to be a little motivating. Negotiation with an owner for six months at a time with a renewal clause is an unreasonable strategy and shows a lack of commitment. Only a few extremely motivated sellers will go for it. Who wants to worry about finding a new tenant every six months? My feeling is the longer the lease the better.
We want to control properties for as long as possible, the longer the better. We then want to sublet the home in one year increments or assign the lease to another person.
Client: Why a one year term?
Claude: The Tenant/Buyer in a sandwich lease will possibly renew for another year and we can receive additional option money and positive cash flow.
Client: What are your ideas on moving the home fast?
Claude: My success strategy is to give extremely good rent credit. I give 50 to 100% whether it’s someone else’s property or my own. The reason is that I want my phone ringing off the hook with potential Tenant/Buyers. Most sellers and landlords will not give that kind of rent credit up front, but if they did the math they’d realize that getting someone into the home fast is what it’s all about. When you compute how much money you lose by constantly advertising and making all the monthly payments you realize hat it’s better to turnover the home pronto-Tonto.
Client: I heard you on a TV show and you mentioned that rent credit is applied to the purchase price. Is this still true?
Claude: Yes! When you’re doing a rent to own, a sandwich lease, rent credit and option money go to the purchase price only. If you mistakenly tell the Tenant/Buyer or place within your contract that it is going to the down payment and that doesn’t occur, when they go for a loan, they have grounds for a potential lawsuit against you.
Client: Even the option money itself couldn’t be considered as part of the down payment?
Claude: I’ve got to tell you that 99% of the time it does go to the down payment, but I’m just worried about the one guy who goes to the one private lender who says none of the option money will go to the down payment. Why take a chance? I’m not going to stand in the way if they can get all the money towards the down payment.
Client: You just want to let them know before hand.
Claude: Definitely! There are three rules, disclose, disclose and disclose. Do your business honestly and upfront with people and you will find that your problems are minimized and your business will consistently grow as your reputation precedes you. It’s the best marketing of all!
To sum up, the Rent Credit and Option Money are applied to the purchase price only in my contracts. Depending on the lender many variables could occur in the Tenant/Buyer’s favor.
Client: The point is we would tell a buyer that the option consideration is usually taken off the price of the house.
Claude: This is the way I usually explain it to them. All your rent will be credited towards the purchase price and your option money usually goes to the down payment depending on what lender you go to.
Claude: Don’t use terms that are absolute because in the contracts, option money and rent credit should always go to the purchase price. It is usually not an issue with the tenant/buyers; they don’t differentiate between purchase price and down payment for the most part.
Excerpt of "Conversations of a Lease Purchase Mentor"
want the entire book for free then just go to