Coach’s Response: What Are Your Four Answers?Posted on September 6, 2013 by
As the market improves, I have more and more people coming to me for coaching. I am excited about this because it means that you are taking responsibility for your success. You are reading my articles, and you are talking with me to achieve what you want in your life.
One thing that I continually ask new investors to do is reflect on each deal, each interaction, each transaction. This allows you to see what was successful so that you can apply it again and thus achieve even more success.
Here is what I have found that will make our relationship even better (and thus your experience and profit even better): ANSWERS.
Before I can truly help you, there are…
Four Answers You Must Know
- How much Money is in it for YOU?
- What are you buying?
- What is the owner’s story?
- What is the area?
You MUST have these 4 questions answered
BEFORE I can help you make a deal.
Recently someone I was coaching came to me with what he thought was a great deal.
“That’s exciting!” I said. “Tell me about the property. What are rents and house prices in that area?”
“Well,” he said, “I’m not sure yet, but the house is a great deal.”
“Okay,” I said, “How much money do you think you’ll have to put into it?”
“Only $30,000,” he replied. “At least that’s what I think. I haven’t put all of the numbers together yet.”
“I see,” I said, thinking about the area where the house was. “Where will you get this money?” I asked. “Once you buy the house, where will you get the money for renovation while it sits empty?”
“I’ve got some ideas,” he replied. “I’m going to ask a few people.”
You see, in this kind of interaction, I can be only one kind of coach: the kind who says, “You need more information.” There is not much more I can offer even though I would like to help him.
What if he had come to me with the questions already answered? What if we had been able to sit down and look at the profit possibilities?
Then the coaching I could offer would show him if this was a deal or not. That is the kind of coaching that will offer you the most valuable information, and that is the kind of coaching that I want to give you.
Your Wealth Starts With You
In order for me to support you in your wealth building model, I need information—and so do you! Your information will be answers to the 4 Questions.
Once you gather information, you can send it to me or talk to me at the weekly meeting so that we can decide on your best plan of action. Please answer each one carefully. **A more complete breakdown of these questions is provided in the attached worksheet, but this will give you a start.
The Money: How Much Is In It For You?
- Why do you think this is an Excellent Deal? (not just a good deal: an EXCELLENT deal)
- Who are your potential buyers/renters?
- Do you have a current list of those customers?
- What is your fee?
- How long will it take for you to get paid?
- What are the risks?
- How much of a risk can you afford to take?
- Do you have the capital to make payments until you can start making money?
- Do you need a partner to pull this off?
- What are you bringing to the partnership table?
- What is your estimation of an equitable split?
- How much money will it take out of your pocket?
- How much total profit are you going to make?
- What is your minimum ROI?
- What is your Exit Strategy?
The Property: What Are You Buying?
- How many beds and baths are there? Square footage of the house?
- What are the repairs required? How much will this cost?
- Is it occupied?
- What are the taxes on the property?
- What is the insurance?
Owner: What is the Story?
- Why is the owner selling the property and how motivated is he?
- Does he have a deadline?
- Will he do owner financing?
- Is he behind on taxes or payments? If so, how far behind?
- Are there any title issues? Tax liens?
- How much does he need to make on the deal?
- What is the current monthly payment? The current interest rate?
- What is the bottom-line price?
The Area: What is the Area?
- What are the comparables in the area?
- Are there any houses being built?
- What is their price range?
- How many have sold recently?
- Do you have an appraisal?
- What is the rent range in the area?
- What is the area like?
- How good are the schools?
- Is it convenient? (Grocery stores, public transportation, etc.)
- Is the house located on a corner? On a busy street? On a large lot?
Your best way to success starts with a plan and a coach, and I can be that coach. I hope that you’ll gather your information and contact me so that we can work together.