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Follow Along Training

Day 1

Deal Example





Lead Generation


We have a unique 2-Call process -

We have learned that our script and approach is much more effective with sellers when they get a day or two to digest our program.

What that means is there should always be an initial call to the seller simply to gather information and plant the seed about our program.

The script for that call is just ahead.

That initial call can be made by a Lead Generator, a VA, or you. It explains a little about our program and who we are, and is to be followed up a day or two later with the Main Seller Script.

There will be occasions where the deal is so hot an appointment is requested on the first call.

In those instances, absolutely strike while the iron is hot.

But in most cases, your efficiency and success are enhanced greatly with this 2-Call process.

Even if you are the one making both the initial call and the follow up call, we advise you make the 2 separately, as outlined in the coming pages.

______________________________________ Visit Page No.4 of you Pink Lease Purchase Workbook, and we will cover our two call process, scripts, objections, lead sheets, and more!




Lead Tracking


We use a simple google sheet system to track your leads and activity. Please keep this form up to date so that we can make sure you're getting the highest quality leads we can deliver!




Self Generated Lead Generation


So, YES, Corporate will deliver you leads, however in this game lead generation is everything. You need to have conversations with people, and you need to have opportunities. You can't afford to sit back and just let us drive your business you need to take action and take your business by the wheel. Activities we highly recommend: Driving for dollars, If you're out and about and you see a For Sale By Owner sign, take down the information and call that lead or even better knock on the door and present yourself as a solution. You can call Craigslist Leads! With Craigslist, we have always found the high-dollar for rents to be an excellent lead source. Typically the owner is a landlord by default and never intended to be, that makes them a perfect target for our program. Networking is another fantastic avenue. You need to tell everyone you meet exactly what you do and how a relationship with you can deliver value! Great places to start are REIA groups, Meetups, Facebook Groups, LinkedIn, and Alignable. The key is the value you present, align yourself with people in your industry, and they will refer you leads! Focus on agents that get it, mortgage brokers, contractors, and other investors. Build a referral network around your goals!




2nd Call (Acquisitions)


Second calls are where the rubber meets the road, you have a lead, and you have to convert them! ________________________________________________________ See the abbreviated script in pg. 13 of your workbook.

  • See the extended version of the script on page 16 of your workbook.
  • Follow the critical points to convey on page 21.
  • See the questions you need to ask on every contract on page 23.
  • Follow the kitchen table questions on page 26.




Homework


Please record yourself roleplaying the script and bring it in for a hot-seat session tomorrow morning! We will now have an afterclass session based on lead generation and team building lead by Mark "Coach" Collard




Foundational


The morning of day one isn't always the most fun; however, it is essential to our process. We will cover the foundation in which the Pink Program is built on!





Day 2

Homework


Lets see thta math guys! Hopefully you're prepared for class.




Little Pink Houses of Hope


At Little Pink Houses of America, we have a core belief in giving back.

When we started the company, we decided we would adopt a breast-cancer
charity, and donate every time we sold a home.

After looking at several, we decided Little Pink Houses of Hope would be a great choice.

Yes, we did like their name, but we also liked their mission and the impact even a small donation would have.

For $542, they send an entire family, where the mother is undergoing
chemotherapy/radiation, on a 7-day, all-expenses-paid vacation.

Other items, including food, housing, entertainment, etc., are donated to make the trip possible.

So, for this donation of $542, the donor can hopefully make a
a small difference in a family’s life that is going through a tough time.

It gets the family out of their environment, away from the hospital, spending time together, forgetting about the challenges they are going through.

We had the pleasure of meeting the Founder, Jeanine Patten-Coble when she and her mother visited our offices in Jacksonville.

They kept seeing donations from a company with a similar name, and one day she picked up the phone and called us.

A few months later, when they were on their way to a retreat in Florida, they took the time to come by and say hi. We were quite honored, and it was a pleasure to meet such an inspiring person.

Little Pink Houses of Hope and Jeanine are a special group, and we are honored to be a small part of their efforts.

We ask of every one of our Affiliate Partners to donate $542 on your first
deal, to help brighten a family’s life.
We also ask that you, please consider a donation of $100 for every deal you do after that.

As we spread our brand in markets across the country, these donations will collectively add up.

And hopefully, those donations can make a positive difference
in someone else’s life.

Thank you for your consideration. https://www.littlepink.org/




Math Example


Watch us do the Math then you do the Math! Let's carve out our profits.




Negotiation Chronology


We have an interested party, and we have transitioned from qualifying the buyer on the phone to scheduling a showing. Now were in the house and they love both the program and the house, and you've asked for the business, and we're going to write an offer.

In all of your excitement, you call the seller and tell him all about this great buyer we have to bring to the table and were off to closing RIGHT!!!!

Wrong, this is a common mistake made during what is the beginning of the negotiation process. First things first, we must always remember our role in the transaction.

We're the seller to our buyer; we're not the middleman in a transaction so when there is an offer made you have a partner that we have to take your buyers offer back too.

So, when we get an offer from our buyer, we don't run to our seller and show our hand. The chronology is as follows.

1st) Write the offer and take two checks, one check will be the application fee, and the other check will be a binder deposit. We will deposit both of these checks knowing that the application fee isn't refundable and that the binder deposit if 100% refundable if we can't come to terms and close the deal.

2nd) We collect the pertinent documents necessary to schedule our vetting process. We need an application from the buyer, our offer to purchase and correlation income verification. If they are self-employed, we need their schedule C tax return, if they are a W2 employee we will need two years of those. We will need two weeks’ pay-stubs or 30 days bank statement.

3rd) Send the collected information to corporate and visit applypink.com and purchase your buyer's vetting process. At this point, corporate will connect with you directly to schedule the vetting call with your potential buyer.

4th) While the vetting is being done we will "salt" the seller... what that means is we will contact them and say: Mr./Mrs./Miss Seller, we have a party interested in the home (Party will be based on the client, i.e. Family/Couple/Buyer) they are being qualified through our underwriting process, and we should have preliminary terms for you to take a look at within seven days, give-or-take. If you questioned, refer back to the vetting process and again let them know you will be presenting terms to them within a 7-day time frame, give-or-take.

5th) Once we have the vetting report back in our hands you the affiliate will schedule a call with corporate to cover the vetting report and the current terms on offer to purchase, and we will go right back to the buyer and negotiate the best terms we possibly can. For example; an offer comes in on 123 street at $210,000 Purchase Price, $1,350 per Month with $12,000 and a 12 months term with a six month GFE. Now for this example, let's say our seller wanted a $220,000 $1,500 per month and they needed $10,000 upfront and a long-term was ok.

Before we take what, the buyer offered initially back to OUR Seller; we will negotiate the buyer UP as best we can. In the case of this example, our marketed price would have been $230,000, so our buyer is making an offer $20,000 off the ask.... that will in this price point would most certainly need to be negotiated up!

How do you do this? Corporate will interview your prospective buyer with the vetting report and offer in front of us and negotiate the buyer to the best terms possible. "POWER PHRASE" fantastic statement to make to your buyer to get them to increase their price is as follows; Mr./Mrs./Miss Buyer $210,000 is $20,000 off of our asking price, and if this was an all-cash offer today we might take a harder look at it; however, we’re going to structure your terms that work well in your favor.

We suggest you put your best foot forward and give yourself the best chance to make a successful purchase of this home. There are four main variables to every deal that we do Purchase price, down-payment, monthly payment and term. We feel great about your term, monthly and down payment, but we think we will need to work on our purchase price to make this deal go through.

Often you will at this point guide them toward the offer you want them to make. We feel go a little higher than where you're comfortable within your mind so the buyer can soft counter and feel they won. For example, let's guide this offer from $210,000 to $230,000 knowing that we will take it at $220,000. For the basis of this example let's say that the buyer comes in at $225,000, $12,000 down-payment and $1,350 per month and after seeing the vetting report we say they need 16 months plus a 6-month goof faith extension.

We will take those terms back to the seller in the form of a formal offer, one thing to keep in mind "POWER PHRASE" we never, ever paint ourselves in the corner, this is so important! We simply tell our buyers that whatever we discuss today I will have to get blessed by the powers that be.

This approach has some very psychological ploys within it. For one it lets the buyer know that these terms aren't final, it also makes them feel that you're they're equal, and you have to take this and get it okayed by someone else. This will again make them feel a subconscious pressure to perform during the negotiation!

6th) Now you will schedule an interview directly with the seller and corporate, and we will present the terms of this deal to the seller. We will simply lay out the four terms, and once we have them comfortable with the four terms, we will move on to AOT's.

If there is further negotiation needed, we need to get the rock bottom terms required to make the seller happy with the deal as a whole. "POWER PHRASE" based on their point of contention Mr./Mrs./Miss If I can bring you a term you're satisfied with getting you a Purchase Price that makes sense to you, and put (X) amount of down payment in your pocket before moving in, what is best, you could do on the monthly payment and still be happy? That question can be phrased for each point of contention during the negotiation, and this will get us the rock bottom terms that we need to go back to our buyer if need be.

7th) Get verbal agreements on both sides and decide on a tentative closing date. Then corporate will help you draft AOT's which is an Agreement of Terms that will be signed by all parties involved and is the first document that binds your deal toward closing.

8th) Schedule Attorney for closing, with location daytime and attorney's wiring instructions.

9th) You will then use your pre-close e-mail templates to convey all the information and prepare you buyer and seller both for the closing.

10th) Corporate will prepare documents and coordinate with you and your attorney to conclude your closing. One important note to keep in mind is Checks should be cut directly from your attorney's trust account and all parties that are to be paid should be paid at the closing table.




Strike Price vs. Go-To Market Price


The difference between the strike price and the go-to-market price is simple enough to be overlooked in the heat of the moment. However, this is where you profit, so we urge you to pay attention to these numbers. The strike price is the price we initially negotiate with the seller. So if on the lead sheet they want $220,000 and we ask them the "magic" question, and they drop their price $10,000, our strike price is $210,000. So now our go-to-market price must reflect our fee, in this case, our minimum fee is $10,000, so our go-to-market price would be back to the original $220,000. Again this is very, very important, and we have witnessed the mistake of having a strike and go-to-market price being the same. When that happens, you have zero built-in profit, and we all have to work a lot harder to make any money.




Seller Script Role Play


Visit page 16 in your workbook to follow the long version of the sellers script.




Kitchen Table Questions


Please visit page 26 in your workbook




Seller Highpoints


Please visit page 21 in your workbook this is title critical points to convey




Seller Email with Math


Hi Tina,

Thank-you very much for your time today. I just wanted to recap the terms we discussed and that you could realize a large financial savings and larger profit margin by doing an Executive Lease Purchase as opposed to selling traditionally.

Also this option will present you with a means to not only maximize the value of your home, but also have a structured exit strategy to sell it from day 1 and get your equity out in a predetermined period of time. I know that your initial desire was to sell traditionally, but our program will allow you to immediately get positive cash flow AND sell it at the end for maximum value. You also retain title of the home until you have been paid in full, therefore never losing control of the house.

1. We will most likely get you the full asking price for your house ($100,000). If you chose to sell conventionally you will most likely get approximately 95% of asking price based on the average asking price vs. sale price in Florida. That difference alone will be $5,000.00. Even If you are For Sale By Owner and the buyer has an agent there's an additional 3% ($3,000.00) commission off of the sale price. Between the two that could amount to $8,000 out of your pocket.

2. On the monthly payments of around $750, assuming it took 6 months for them to cash you out completely, that's $4,500 in principle pay down and positive cash flow during the term ($9,000 on a 12 month term). Now you are getting $104,500 ($109,000 for 12 months) for the same house. 90% of our buyers are able to get their financing inside of 12 months, so we aren’t looking for a terribly long period of time to cash you out.

3. Those monthly payments to you DO NOT apply to the asking price when the buyer finances. They are still financing for the entire $100,000 when cashing you out.

4. We can get the buyer in most cases to pay a vast majority of closing costs. In today's real estate market, it's becoming more and more common for the buyer to request that the seller pay the lion's share of closing costs. You are looking at a range of 3-5% of the home value for closing costs. That's an additional $3,000 to $5,000 in potential saving to you. The worst case for you under this scenario would mostly likely be to split traditional closing costs with the buyer.

Using these numbers above, your approximate savings + additional profit if you are willing to wait a pre-determined period of time to get your money out will be in the $10,500-$17,000 range (up to $22,000 if you include a low offer on your sales price) depending on the specifics and length of the term agreed upon.

That is a REAL number that I'm sure speaks volumes to you, as it does to most when we break it down this way. We are currently working with buyers looking for homes in all areas.

As I stated, working with us doesn't cost you a single dollar other than the BUYER's first month's payment of $750. We collect the balance of our fee from the buyer in the form of a non-refundable down payment that is above and beyond your asking price so it doesn't affect your bottom line and will reflect as an initial down payment when they go to get their financing. My fee to the buyer will be $10,000. However, we will ask for a 5-10% down payment from the buyer, so anything above fee will be money that you will receive prior to them taking occupancy. That amount will be represented to you with any formal offers.

That also ensures that the buyer has "skin in the game" from day one and follows through on their intent to not only get their financing in the agreed upon time-frame, but also care for the home as if it is their own in the meantime. All utilities, repairs and upkeep of the home are their responsibility during this term as well. We simply ask you to warranty the major mechanical systems for the first 30 days.

I would only ask for approximately 45 days (our standard sales cycle) to perform my service and bring you a strong buyer with a favorable time frame needed to get their financing and cash you out. During this time-frame we simply ask in good faith that you suspend any marketing of your own, rather than compete with each other. There is no obligation to you to accept any offer I bring, however I'm quite confident we will present offers with very favorable terms to you. Rather than sit and hope that you find a buyer or a buyer finds you, let us work hard on your behalf to bring you one in a short period of time and allow you to make the maximum amount of money from the sale of your home.

Please respond to this email or call with any questions, otherwise I'll follow up as discussed.

I look forward to the opportunity to work with you.

Regards,




How to Use the Seller Email





The Appraisal Question


The Appraisal Question: If you feel there is an issue with where the house is priced at (and your comps show you that it is priced higher than the market comparables), this is a “soft” question that is designed not to put them on the defensive, but to try and understand how they are coming up with their ask price. If they cannot justify where they have it priced based on where they think the appraisal may come in at today but want to list it at a higher than market/appraisal price, it is something that needs to be addressed before getting too far along. I am not saying it should kill the deal entirely, but if they are asking for a higher than market price that likely won’t appraise, it is better to address it now before running into an issue down the road.

“Mr. Seller as you know with our program the house does not have to appraise today. However, it will have to appraise at some point in the near term as Banks only lend on appraised value, likely sometime in the next 6-12 months. Just out of curiosity if it had to appraise today what do you think it might appraise for?”




31 Day Tickle File Fred Flinstone Style


How do you create a tickler file system? You can put one together relatively quickly and easily. To create this paper filing system, all you need are 43 file folders and a box or cabinet to store them in, preferably somewhere near your desk so it’s always close at hand. Label 12 of the file folders "January" through "December" and the rest of them "1" through "31" for each day of the month. Documents within the folders of a tickler file will be your seller leadsheets and all notes associated with the leads. A basic setup like this is relatively inexpensive and uses minimal space. You can get everything you need from any office-supply retailer. Choose from a variety of file folder colors and unique storage box designs to arrange something that’s attractive as well as useful. If you’re creative, decorate the folders to make the system reflect your unique personality. How do I use a tickler file system? To put the tickler file into action, put tasks or items (on paper) that need to be done by particular days into the corresponding days' folders for the current month. For example, if you have a seller follow up on the 15th of the month, place that lead into folder No. 15. If the due date for a task is more than 31 days out, place it in the corresponding monthly folder. Every morning when you get to the office, check the folder that corresponds to whatever day it is, which will be at the front of your file. If it’s the eighth of the month, folder No. 8 should be at the front, filled with all of the items you need to do that day. At the end of the day, place any unfinished tasks into tomorrow’s folder. Move the empty numbered folder to the next month and start filling it with tasks. The next morning, start all over again with folder No. 9 and so on, cycling through the days until the month ends and everything starts over again with folder No. 1. Simple, but it will work!




When is a Lead Dead?


This one is a moving target. Different people will give you different definitions, but the spirit behind those definitions will always be the same. We attack lead with tenacity! A lead isn't dead until they have explicitly told you to go pound sand! I'm not "interested" isn't DEAD. I'm not interested means you need to continue to follow up and deliver value until the lead sees that value. There are two critical ingredients in what effects a leads tenour. TIME and CIRCUMSTANCES Every homeowner that lists FSBO thinks they will sell for full asking price within a week, however that is rarely the case. If you're not following up with said lead, then you won't be there when time changes his or her's circumstances.





Day 3

In-House presentation


Seller Contrcats start on page 28 in your Lease Purchase Workbook. Agreement for Deed..................29 Leter of Intent............................30 No Brokerage Relationship.......31 Title Disclosure..........................32 Home Warranty........................33 Seller Property Disclosure..........36




Marketing Presentation


Maketing from A-Z with Danny!





Day 4

90 Day Game Plan