We Read This Crap So You Don’t Have To: Mike Warren

Would you buy a car if the car dealer itself had a banner: We only sell overpriced clunkers.

Would you go into a restaurant if the menu had a warning: Our hamburgers are made from spoiled meat from diseased cows.

Then why would anyone respond to a real estate guru’s promotion boasting about one of his own students going bankrupt (presumably after following his real estate advice)?

Here. See for yourself:

“A student”–presumably Mike’s student–had to declare [except Mike misspells it "delcare"] bankruptcy because “they” [should be "she," not "they"] were over-leveraged on properties she’d bought.

Never fear, though. Mary Jane wants to keep doing what she’d been doing. Never mind a little bump in the road like a bankruptcy. So Mike’s got a way for Mary Jane to keep buying real estate. And he says it’s honest, ethical, and legal. It could be.

My question is: Will it help Mary Jane make some money? Or are the only folks making the money Mike and his “buddy”?

That sure is a great testimonial: My buddy can help you buy more real estate, even though the real estate you bought as a student following my advice landed you in bankruptcy.

I think I’ll pass.

6 Tips To Help Your Business From “Talk Like A Pirate Day” (September 19)

Talk Like A Pirate Day: Sept. 19

It’s almost here–the annual “Talk Like a Pirate Day.” Mark your calendars for September 19. But it’s not just a day for having fun (see below), but even for picking up a few useful tips.

OK. So what is “Talk Like a Pirate Day“? From Wikipedia:

International Talk Like a Pirate Day (ITLAPD) is a parodic holiday created in 1996 by John Baur (Ol’ Chumbucket) and Mark Summers (Cap’n Slappy), of Albany, Oregon, U.S., who proclaimed September 19 each year as the day when everyone in the world should talk like a pirate. For example, an observer of this holiday would greet friends not with “Hello,” but with “Ahoy, matey!” The holiday, and its observance, springs from a romanticized view of the Golden Age of Piracy. The holiday is a major observance in the religion of the Flying Spaghetti Monster.

The official site, with lots of links, is at http://www.talklikeapirate.com/ You can see how people celebrated in the past–parties, get-togethers, and more. And I particularly like the sites that will translate text–or even full web sites–to “pirate speak.” See this one: Translate-Pirate.com To see what the White House web site looks like as spoken by a pirate, click here. (No, no one is accusing President Obama of being a secret pirate!)

Enough fun and games. Well, maybe not. But, still, is there anything to be learned from Talk Like a Pirate Day? Absolutely. Things that you can use to help get more clients and more business. (Some of these were written with Realtors in mind, but they’re all applicable to anyone wanting to improve their business.) And a few other tips, besides.

Keep the Calendar in Mind: Why is September 19 Talk Like a Pirate Day? The day was actually triggered when one of the co-founders injured himself on June 6, 1995, and yelled “Aaarrr.” When they decided to “spread the word,” they recognized that June 6 was D-Day. Out of respect, they chose another date. So: Look at the calendar. And in addition to the observances you’re aware of, be sensitive to observances of other religions and other cultures before scheduling an event. If you’re doing a mailing, you may want to time it so you’re not competing with lots of other mail.

Make it Easy to Remember: So, why September 19, and not the 18th or the 20th? It turns out that September 19 was the birthday of an ex-wife of one of the founders. That was easy for him to remember. The same lesson applies here, from the way you brand yourself to the name of your web site. In this case, the point is to make it easy for customers and clients to remember you . . . and how to contact you.

Learn How to Publicize Your Activities. How did Talk Like a Pirate Day catch on? The event’s founders sent a letter to humorist Dave Barry in 2002. Barry liked the idea and promoted it. The rest, as they say, is history. The take-away message here is that the media can help you. Just identify the right–the most appropriate–outlets and get the word out. If what you’re saying or publicizing has value, you may well receive beneficial coverage.

Do Good Deeds. Set up activities that benefit charities. Talk Like a Pirate has a section on its web site for such activities. It even has a nicely-done 8-step planning process. It says:

As everyone* knows by now, International Talk Like A Pirate Day is mostly about (wait for it) talking like a pirate.

But almost since the beginning, some fine folks have used the day as an excuse to raise money for good causes.

The Marie Curie Cancer Care team in the UK was first out o’ the gate, urging folks to organize piratical fund-raisers to support their efforts to provide research and end-of-life care for cancer patients. Others have joined in over th’ years to use ITLAPD as a way to raise money for everything from feedin’ the hungry to sponsoring local children’s programs.

This year, the Pirate Guys are urgin’ their fans around the world to use their Talk Like A Pirate Day parties to pass the pirate hat for a worthy cause, be it social, humanitarian, cultural or political.

Which cause? That’s up t’you. There be no end o’ good causes that could use an infusion o’ doubloons. Read on down for some ideas.

Cap’n Slappy has a soft spot in his black heart for Doctors Without Borders/Medicins Sans Frontieres, the international medical humanitarian organization that brings medical care to people all over the world in times of crisis. They even offer tips for making your fund-raiser a success – and an easy way for you to collect donations on line! Tell’em Cap’n Slappy sent you!

Give Something Away. Talk Like a Pirate has some downloadable ring-tones. (Who could resist “It’s still ringin’ ye scurvy dog!”)? Sure, you can do ring-tones. But offer on your web site free reports, or free information. Give consumers a reason to come to you, remember you, and do business with you.

Have Fun. I think that point’s already been made.

So, make plans for Talk Like a Pirate Day. But take away some tips that can help you on the other 364 days of the year as well.

Some Truly Stupid Email Subject Lines

Do you ever feel that “enough’s enough” as far as stupid, misleading, or just peculiar email subject lines are concerned? I know I do. And it seems like I’ve been receiving more and more of them recently dealing with real estate investing. (Well, not really real estate investing. More like selling products to would-be real estate investors.) I guess it’s because the “ordinary” or straightforward subject lines don’t work as well any more.

It’s gotten like the headlines you see (if you choose to look) on tabloids like News of the World. Sort of a “Can you believe this? Can you top this?”

Here are just a few recent ones that have slithered into my in-box:

Scandalous Mexico Photographs exposed [Greg Clement. February 23, 2010. First line of e-mail: "I will unveil dozens of scandalous pictures from Team Realeflow's recent trip to Mexico on Thursday's "Wealth Protection" webinar with Jeff Watson.""]

My wife is scamming my brother and I. It’s B.S.! [Josh Cantwell: June 18, 2010." In addition to being grammatically incorrect (should be "brother and me," Cantwell's e-mail doesn't make any sense vis-a-vis the subject line: "I put together some free training videos and an ongoing case study of a REO that we just bought, and that my brother Mark is rehabbing with my wife Lisa's IRA funds. This deal has some super cool, and one not so cool, twists to it, and it going to be a great case study for you to follow and learn from."

My friend Lee has lost it... [Mike Ochsner: April 23, 2010. "I'm not sure if you were on the webinar last night, or if you came and left, because you were unsure exactly what you were seeing, but I've got to say, I was shocked by the whole thing. Lee has never, I repeat NEVER, done anything like this." As in Casablanca: "Shocked! Shocked, I say." In this case, Mike was shocked that Lee offered the some sort of discount  on an overpriced program--probably along the lines of the "$37,000 value for only $1,995" pitch.]

**Newsflash** Google Is Run By COMMUNISTS [Preston Ely: July 21, 2010. Explanation: "you're not gonna believe this ... so the other day, Google shut half my advertising campaigns down.  They wouldn't even give me a reason.  Apparently they are communists who don't like their advertisers making actual money. But that's not all ... Then I'm at lunch with this dude who tells me that Google secretly accepts bribes (I mean payments) from companies to ensure they get top organic rankings! Can you believe that??? Freakin crooks!" That's a long-winded attempt to promote a book and a product that tells you how to get high rankings from Google.]

“Minnie Mouse Caught Cheating On Mickey With Preston Ely!” [Preston Ely: July 1, 2010. Here's the explanation: "I used to love Minnie Mouse.  So much so that I wanted to punch Mickey in the whiskers and steal her.  There is a relatively good chance that you can't relate.   I tell you this for the same reason I tell you anything, which isfor no reason at all.  I just happen to be hosting a huge real estate / internet marketing event in Orlando July 22-25, and it reminded me of my youthful Disney character crushes, of which there were many (*cough* Princess Jasmine *cough*)." Well, that may be more than we need to know]

 

“Caught On Tape!”  Preston, Britney Spears, & Marilyn Manson! [Preston Ely: July 5, 2010. OK, this is another one, though not quite as peculiar as Ely's fascination with Minnie: "Don, I'm gonna be honest ... the video you're about to see if maybe one of the most scandalous I've ever made.  I almost wasn't going to send this to you, but you're going to learn soooo much that I just have to. It's over two hours of me teaching marketing and motivation at the Freedom$oft event I hosted in March. You've never heard anything like this before in your life - I promise you." I'm still not sure what Britney Spears and Marilyn Manson have to do with this.]

 

porn isn’t the answer [Preston Ely: March 25, 2010. Talk about a killer app: "Did you know that pornographers used to be the #1 generator of $$ on the internet?  True story.  Feel free to use that little fun fact at the water cooler today in the office.  Thankfully they're not anymore.  Guess who is? We are.  You may not have known this, but my friends and I make more money on the internet than anyone in  the world.  We literally dominate it.  Google my name if you don't believe me.  (preston ely)"

Do you think DC is sexy? Or does it look like he got beat with an iPad? [Than Merrill: May 11, 2010. "I know DC Fawcett really well...and he is decent looking guy, but he is definitely not Brad Pitt. And seriously look at this picture?  Who takes a picture like this? Who I say? Nobody normal that I know... However, today DC must be wearing some special cologne or milkbone underwear because I have never seen such madness. We ran a webinar with him this morning about his "Commercial Short Sale System and Partnering Opportunity" and as soon as the webinar ended the phones in my office blew up."

Greg Clement & Jeff Walker Are Gay [Preston Ely: August 9, 2009. "Web definitions for gay: cheery: bright and pleasant; promoting a feeling of cheer; "a cheery hello"; "a gay sunny room"; "a sunny smile" What'd you think I meant? You'd be gay and cheery too if you had the bad ass SIMS system working for you like they have for themselves!'] 

COFFEE ENEMAS OR IRS ENEMAS…WHICH ONE IS HEALTHIER? [Dwan Bent Twyford: June 8, 2010. Honestly, Dwan and her husband Bill seem to be two of the more straight-shooting folks, and they send out far fewer e-mails than the folks above do. And perhaps the subject line isn't misleading. From the e-mail: "If you have ever been on the receiving end of an IRS enema, you know how much control they actually have once they set their sights on you. Having personally gone through this. Join me on WEDNESDAY EDUCATIONAL DAY which is on THURSDAY this weekI never want to see it happen to you!

.

In a related category are the "Apology" e-mails. Often, these "apologize" for supposed computer crashes after an all-to-successful product introduction, or apologies for not having enough inbound lines for a webinar. You'd think these folks would get tired of playing the village idiot.

I am so sorry about what happened last week. [Greg Clement: February 9, 2010. This one almost sounds legitimate: "Last Thursday’s very important INTERNET training webinar was cancelled.  Jeff Walker got sick and couldn’t make it."]

FW: sorry my fault [Greg Clement: February 2, 2010. "The email I sent yesterday had a link in it that didn’t work for a lot of people.  SORRY." This sort of thing seems to happen a lot.]

Sorry, I sent you the wrong link. [Greg Clement: January 19, 2010. "I just sent you an email and it had the wrong link in it. Ignore the link that I sent you in the previous email, it won't get you on the early bird webinar."

*whoops* no links in that last one ... (How to HIJACK Your Buyer's Brain For Billions) [Preston Ely: June 3, 2010]

That’s the sort of e-mail subject lines being sent out now to try to capture the public’s clearly waning attention. Wonder what it’ll take next year? And, perhaps more seriously, it’s becoming more and more difficult to take these folks, their pitches, and their big buck products seriously. I’ll admit: McDonalds sells hamburgers with Ronald McDonald as a pitchman. But there’s a difference between a 99 cent hamburger and a $1,995 real estate program.

Buyers Say the Darndest Things: Bowser the Buyer

Remember Art Linkletter’s “Kids Say The Darndest Things“? Well, would-be real estate buyers sometimes say some pretty darned odd (and funny) things, too.

I’ll start posting some of them here. I’m not making fun of these folks, but in some cases I do wonder how they manage to even get up in the morning. In other cases, the would-be buyers are vastly overcomplicating a situation. We’re not talking about the intricacies of real estate transactions. Usually, it’s just plain common sense that seems in short supply.

So, let’s begin.

This one comes from Trulia, a consumer-oriented Web site with a question-and-answer area, where I post answers pretty frequently. Names have been removed to protect the innocent. (Curious? Here’s the link to the full posting.)

Does B****** Real Estate not want to sell houses? They consistently hold open houses without listing the address.
Apparently, they don’t want you to buy a house they are selling unless you are working with one of their realtors. I’ve spent hours just trying to track down the address of a supposed “open house” they are holding. Their website is convoluted and won’t let me search their listings (the “registry” doesn’t work and you can’t see any info without it). I refuse to work with one of their agents for the simple fact that they have made my home search process such a pain in the neck.

Huh? I guess I understand your frustration at not being able to determine from the one company where the open houses are. But the only reason to keep pounding your head up against a brick wall is that it feels so good when you stop. So: Stop pounding.

Contact a Realtor from another company. You choose. And you screen the Realtor so you’re comfortable with both the company and the Realtor. then explain what you want. And–here’s the good part–it’ll mean less commission for the listing agent and for the listing firm! You see, the commission is already agreed to. If you buy the house through the listing agent, he/she gets both ends of the commission. So, help the company share the wealth . . . with an agent of your own choosing.

Notice the would-be buyer says he’s spent hours trying to track down the address of a single open house. Maybe he could have called and asked? Or, as I suggested in my answer, maybe he could have called a Realtor with another firm?

And beyond that, I’m reminded of the story of a dog chasing a car. The dog chases and chases it. One day, it finally catches the car. Success! Except . . . now that it’s caught the car, what does he do now?

In this case, we have Bowser the Buyer chasing open houses for hours on end. What would happen if Bowser the Buyer finally finds out the super-secret location? Imagine: He discovers the location, goes to the open house and, miracle of miracles, decides he wants to buy the house. Well, what then? He says, “I refuse to work with one of their agents.” So, he’s got no agent of his own and he refuses to work with one of theirs.

Like they say, you can’t get from here to there. But I guess you can keep yourself pretty busy running in circles.

We Read This Crap So You Don’t Have To: Jason Hanson

If you’ve been following this blog, you know the drill by now. I take a real estate guru’s promotional e-mails, then dissect them. Then I rate them on my trusty Crap-O-Meter. A “10″ means it’s a hot, fragrant, steaming pile of . . . well, you get the idea. A number around “5″ means there’s substance behind the hype. And lower than “5″ means there’s real value. Most of my ratings are up there close to “10.” It’s more fun to rip apart the questionable claims. But, once in a while, there’s real value.

And that’s the case here.

But first, a disclaimer: I know Jason Hanson. Further, I’ve purchased some products from him. And further, when I was getting started, he took some time out of his schedule to meet with me, share strategies, and just was a “good guy.” So, I’m biased.

However, the question is: When you get an e-mail from Jason Hanson, is it crap? Or is there substance there? Is he just trying to sell you an expensive program? Or is he also sharing useful information? Sure, he’s trying to sell you some of his books, or his coaching program. Absolutely. But is there any value you can get from what he’s providing? Again, absolutely.

Here’s a screen shot of my “In Box” with e-mails from Jason.

E-mails from Jason Hanson

I’ve pasted a couple of his e-mails below. (They seem to average about once a week.) But the first thing I like is that the subject line doesn’t overpromise and underdeliver. Sure, the subject lines are “teasers,” but–surprisingly for such marketing efforts–the teasers actually deliver what they promise. Here’s a sampling:

Don,

Below is an typical email I often receive from people who are trying to wholesale properties to me and other investors. So, this week I thought I’d show you how to quickly evaluate a deal.

I want you to look at the numbers below, and decide that if you were paying cash would this be a good deal for you? (Once you’re done look for my answer below, but don’t cheat……evaluate the deal first!)

Price Asking $120K, send best offer
ARV $200,000
Repairs $30000
3 bedroom, 1 Full Bath, 1 Level Rambler
3103 lumar drive, fort Washington md 20744
Description: Carpeting, paint, upgrade bathroom and kitchen.
Property in good condition. Will hold conventional or fha
financing. In rentable condition. Currently occupied.
Comp data: Comp data not solid enough in area to reach confident true value. Property sales take at times 1 year. Don’t have current data on hand, email me if you need MRIS data from the last six months and I will send it to you.
Current Situation: I am currently lining up my financing for rehab in the event no wholesale offers are received, I will proceed with rehab. Seller needs to sell quickly. This property will be up for wholesale for possibly through next week.

Okay. Did you really evaluate this? Do you think it’s a deal?

Alright, I’m trusting that you already did your own evaluations, so here we go: First, I’m going to check the ARV (after repair value) and make sure his comps are correct. Let’s pretend they’re correct and the property is worth $200,000.

Now, do you remember the wholesale formula? First you take the ARV of $200,000 and multiply it by .65 (because if I’m paying cash I’m buying at 65 cents on the dollar). $200,000 x .65=$130,000.
However, don’t forget the repairs. So, take your $130,000 and subtract the $30,000 for repairs and you get $100,000.

And there you have it: Assuming the repair estimates were correct and the comps were right and I liked this house, the most I would pay is $100,000. Therefore, I would definitely not pay 120k for this place, but would first offer 85k and leave room for negotiation.

And that’s all she wrote. Time to take Lazy Toby for a walk in the woods. Talk to you next week.

Dedicated To Helping You Live Life On Your Own Terms,

Jason Hanson
www.PrimoCoach.com
800-865-1702

P.O. Box 450, Oakton, VA 22124, USA

To unsubscribe or change subscriber options visit:
http://www.aweber.com….

That’s fairly basic, but it delivers 100% on what it promises.

Here’s another (hope Jason doesn’t mind sharing some of his tips!):

Don,

Last week I told you that I was trying out a new handwritten sign and that I would videotape it and show it to you (the sign I just put up at my newest lease option deal). Well, I forgot to bring my video camera but I did have my digital camera. So, I took a picture of the sign and I have attached it to this email.

Also, below you will see part 1 and 2 of videos that I recorded from a call last week. These videos show how I overcome one of the most common objections with lease option deals…..this particular seller was worried that I would put people in his house that would destroy it or that would party and bother the whole neighborhood….you will see how I quickly assured him this would not happen.

I don’t shoot these videos for the fun of it. I don’t shoot them so that you can see my ugly face. I shoot them because I want to help you close more deals and make more money. And if you don’t have proper “salesmanship” on the phone, it’s going to be a lot longer until you’re a six figure a year investor.

The links are below. Study them, take notes, send me emails when you close deals and make MOOLAH!

http://clicks.aweber.com/y/ct/?l=9OSPO&m=1gLXaPkODnO4s9&b=Nul3hg6.QW_Y5sBFLLcbdA  PART 1

http://clicks.aweber.com/y/ct/?l=9OSPO&m=1gLXaPkODnO4s9&b=fSYWqeGpiR.fvaZOmefRWw  PART 2

Dedicated To Helping You Live Life On Your Own Terms,

Jason Hanson
www.PrimoCoach.com
800-865-1702

P.O. Box 450, Oakton, VA 22124, USA

To unsubscribe or change subscriber options visit:
http://www.aweber.com….

Some of his e-mails are a bit more promotional than those, but virtually all have legitimate, useful information. Plus, they’re entertaining. They don’t sound as if they were written by a slick promoter with that breathless, urgent tone that you often encounter.

Again the disclaimer: I know Jason, so this can’t be an unbiased review. Still–trust me–I’ve known other “gurus” (and in Jason’s defense I doubt he’d even call himself a “guru”) who just sell the hype, and I’d be glad to take them on. One other point: Jason isn’t paying me a penny for this review. In fact, over the past few years, I’ve paid him for materials and coaching (mostly for my son).  With that out of the way . . .

So, for real, legitimate content without the false urgency and promise of immediate riches you encounter elsewhere, I give Jason Hanson a 1.1 (an excellent score) on my Crap-O-Meter.

We Read This Crap So You Don’t Have To: Bryan Ellis’ Blog

This post is a bit different. It’s not about some outlandish e-mail I’ve received hawking the latest “get rich quick while you’re in your pajamas” scheme. Rather, it’s a blog posting from a Bryan Ellis, a real estate investment program promoter. I’ll admit I was surprised by some of what he said.

Here it is in its entirety:

~~~~~~~~~~~~~~~~~~~~~

Why I Won’t Participate In Product Launches With The “Gurus”

Posted by Bryan Ellis on Wednesday, February 4th 2009

Have you noticed that there is a “Guru’s Club” consisting of several real estate “gurus” who all promote each other’s products and services? Not only that – they all send the exact same emails to you at nearly the exact same time.

The net result is that you get duplicate copies of the same CRAP from multiple gurus. They make very little – if any – attempt to actually assist you in any way (as the example below will show). To the objective observer, it appears that they simply are gunning for your wallet, with no other motivation in mind.

I think a backlash to this type of marketing is likely in 2009 or 2010.

Before I continue, let me make something clear: I don’t have a problem with people selling products to their readers. I do it too – it’s the way that we bring in income to cover the high expense of providing this website and lots of free resources.

But I do have a problem with the complete disrespect that happens to these guru’s subscribers when the guru doesn’t even bother to try to send out anything of value, and instead sends out almost nothing but product pitches.

Remember this: If most of what you receive from your “guru” is pitches for the latest product launch, they are showing profound disrespect for you and view you as nothing more than a wallet with an email address.

I’ll now give you some examples of what I mean. I don’t mean any disrespect to these folks, and I’m sure they all have good information to provide. But these stats are prima facie evidence of their regard for you as a source of revenue and little else.

A Real Example:

One particular “guru” has sent me 10 emails during the past week or so. I’m not going to tell you who this is, but you see the subject lines used below, so you can probably find out by searching your own email.

Anyway, here is the date, subject line and topic of each of the most recent 10 emails sent by this guru:

Date: February 4
Subject Line: did you win?
Topic: Promotion of Gerald Romine’s product launch

Date: February 3
Subject Line: Millard Fuller (1935-2009) another good man leaves us
Topic: Paying respects to Millard Fuller
Note: This is the only email of the past 10 that isn’t purely promotional in nature.

Date: February 3
Subject Line: sell houses before you buy them? come on!
Topic: Webinar promotion

Date: January 31
Subject Line: Than Merrill is a dork
Topic: Than Merrill’s Product Launch

Date: January 31
Subject Line: URGENT:how Than makes over 2 mill a year on the internet
Topic: Than Merrill’s Product Launch

Date: January 30
Subject Line: gotta get this to you fast
Topic: Than Merrill’s Product Launch

Date: January 30
Subject Line: Good Morning! Happy Friday!
Topic: Than Merrill’s Product Launch

Date: January 29
Subject Line: WholesalingU kicks off today at 12nn
Topic: Than Merrill’s Product Launch

Date: January 28
Subject Line: life’s too short to get rich slow
Topic: Than Merrill’s Product Launch

Date: January 27
Subject Line: a boatload of buyers drooling at the mouth
Topic: Than Merrill’s Product Launch

So the net result is that literally 90% of the last 10 emails I’ve received from this guy have been purely promotional in nature. And this isn’t the only example. There is a group of about 10-15 of these folks who do almost nothing but promote each other’s product launches, yet make little or no attempt to give anything else of value. This is, as I said a moment ago, very similar to treating you as a wallet with an email address. It’s disrespectful and very short-term thinking.

I am not completely free of guilt from this either. In December, I participated in Jeff Kaller’s launch of his short sale program. I did it because Jeff has some great info that I think is worthwhile. But if I had it to do over again, I wouldn’t. There’s nothing wrong with Jeff or his products or services. In fact, I think they’re great and worthwhile, and I have every intention of continuing to promote him in the future (outside of product launches) because I believe in what he’s doing. But I’ve realized in the intervening period that sending you the exact same promotional material as everybody else is not good for you and it’s not good for me.

And like I said above, I’m not disparaging anyone from selling products. I do it to, and I’m even doing it this week. But come on, guys: Have a little respect for your readers.

You are welcomed to sound off about this below. Thank you for reading RealEstate.BryanEllis.com!

http://realestate.bryanellis.com/1167/why-i-wont-participate-in-product-launches-with-the-gurus/#ixzz0HWMEJJqI&D

~~~~~~~~~~~~~~~~~~~~~~
Incidentally, the responses and comments to Bryan Ellis’ blog are also interesting and revealing.

On our trusty old Crap-O-Meter, this one scores a very respectable 1.5 out of 10.

We Read This Crap So You Don’t Have To: Nathan Jurewicz

“We Read This Crap So You Don’t Have To” features claims–primarily by e-mail–from real estate promoters. Note: We’re not evaluating the actual programs, though we may have some comments on the programs as described in the e-mails and sales pages. Rather, we’re examining the claims and pitches of these promoters and real estate gurus.

In the future, we’ll present some that are honest, straightforward, and actually full of good information. (Yes, Virginia, there is a Santa Claus!) But since it seems that about 90% of everything is crap–exceeding that old 80/20 rule–most of what you’ll read here deals with questionable claims and over-hyped pitches. And so it is with this posting.

I received an e-mail (a portion appears below) from another real estate promoter, Larry Goins. I’ve provided the emphasis in red.

“Your whole short sales business works by itself…on automatic! That’s right, just crank it up, then stand back, and let it rip! Find out how right here.“

And for good measure:

I STILL don’t know why Nathan’s letting out his secrets. If you’ve seen his “Short Sales Riches” course, he sells everything he’s talking about on this fr-ee DVD for $497. So why would he be giving it away for free? I’m not sure, but if I were you, I’d hustle over there now before he realizes what he’s doing.”

So ol’ Nathan is giving away a free DVD containing his short sale secrets? What a wonderful guy! Gotta love him.  

Except, of course, there’s no information on the sales page. Just the requisite overwritten hype, along with some amazingly low-quality videos. Plus the opportunity to buy his program for $1,497 . . . or $1,694 for two payments, the second just 15 days after the first. Except, of course, it really costs more, as you find out when you get to the order page. It’s $1,497  (or $1,694) plus a month of coaching for $1, followed by continued coaching at $197 a month. That’s a 1-year investment of either $3,861 or $4,058. That’s sure a far cry from “fr-ee.” (Hmmm. Maybe the definition of “fr-ee” in the real estate promotor’s dictionary is: “Four gRand-Each and Every.” 

Again, the program may or may not be worth it. You can be the judge of that. What I’m addressing is the crap . . . the hype . . . the claims versus the facts of the promotion.

This rates a 9 out of 10 on the Crap-O-Meter.

Larry Goins email pitching Nathan Jurewicz's short sale package. Note his claim at the bottom that the information offered on a "fr-ee DVD."

Top of Nathan Jurewicz's pitch page for his short sale program

 

Bottom of Jurewicz's Pitch Page. Note the price, but no mention of additional monthly payments for coaching.

Purchase page for Nathan Jurewicz's short sale package. Note the additional $197 per month for coaching.

Just Offering a Lower Price Doesn’t Mean You’re Negotiating

I’ve run into a number of situations lately in which potential (or prospective, or would-be, or maybe just wannabe) buyers have confused the act of offering a lower price with negotiating. In fact, there’s very little connection between the two.

For example, in my role as a Realtor I was showing some clients  some properties. They had pretty strict limits as to maximum price, condition of house, location, and so on. We’d looked at half a dozen the weekend before, and none fit the bill. Some were too old (mid-1970s). Some were too small. Some weren’t in good-enough condition. Still, we’d started with a list of perhaps 20 foreclosures and a few short sales. And most had been snapped up within 3-5 days of listing.

A couple weeks later, we went out again. This time we saw 3 properties–an REO in a bad neighborhood that’d been on the market for 4 months ($160,000), an REO that’d been totally gutted before the rehab money ran out ($150,000), and a great home, nearly perfect condition, granite countertops/stainless steel appliances, for $180,000. The comps (for other REOs) in the same neighborhood, probably for homes in not-so-good condition, were about $230,000. It was a great buy. And the buyers had been prequalified up to $250,000.

They liked the house . . . enough to want to offer $160,000. Huh? I cautioned them that it’d sell fast, and was clearly underpriced. They said they really wanted the house. So, back at the office, they agreed to raise their offer to $165,000. I said that while I’d be glad to submit any offer, that the comps were well above $200,000 and the market for those properties had gotten hot lately. Still, they figured $165,000 was a good negotiating strategy.

Offers were cut off at 3 pm on Monday, after just 4 days on the market. Our offer was 1 of 8 submitted. Of the 8–I found out–ours was by far the lowest. The accepted offer was for $185,000, all cash, no contingencies. A much cleaner offer for $20,000 more. And the would-be buyers were “shocked” that they hadn’t gotten the hosue.

Second example: This past weekend, I was showing a property–a manufactured home. The comps are around $40,000. This one was priced at $25,000, and was in good condition. The owner was at home, and the potential buyers started talking to her. The owner was willing to come down to about $21,000–her real bottom line, since she needed the cash to buy another property. Remember: Comps are about $40,000. So the most they’re interested in offering is about $14,000. As they say in the South, “That dog won’t hunt.”

Look, negotiating’s great. And there’s nothing wrong in offering a low (or lower) price. But the two (offering a lower price and negotiating) are two entirely different things. Sometimes, as with the REO, there isn’t much room to negotiate. You just figure out what the best deal is . . . what your bottom line is . . . and make an offer. Those buyers could have offered $225,000 . . . been well within their affordability range . . . and had a good shot at getting the property. They chose not to.

In the case of the manufactured home, there were other areas that the seller indicated flexibility on. Plus, the home was priced (after the initial negotiations) at about half the comps. Offering 33% less, after getting a reasonable idea of the seller’s bottom line, isn’t negotiating. It’s just playing a losing game.

We Read This Crap So You Don’t Have To: Greg Clement “This Is New To Me….”

This blog begins a new series of “We Read This Crap So You Don’t Have To.” The purpose: To read the e-mails with the “amazing” subject lines from real estate gurus . . . and then to look at what these folks are peddling. Every once in a while, the subject line and e-mail text are actually worthwhile, and we’ll cover those, too. I promise. But 90% of the time, it’s pure hokum. And 8% is just plain dishonest.

Ready for the first one?

Greg Clement E-Mail "This Is New To Me . . . "

So what precisely is so new to this savvy real estate investor? What is one of the “coolest investing strategies” he’s ever seen? What is “a TOTAL new concept to me”?

Here’s the top and the bottom of the sales page:

Beginning of REO Rockstar Promotion

Bottom (with price) of Greg Clement's REO Rockstar Sales Page

I read the copy and watched most of the tedious videos (watch this blog for a rant against time-wasting videos!). From the sales page itself:

Effectively we have solved the real estate investing community’s biggest problem … how to flip bank-owned properties without taking a dime out of your pocket.

And now we’re ready to reveal the exact same system that the REO Rockstar uses to flip 10+ houses a month in this f’d up market … to YOU. Like I always say … “I go? You go.”

That’s it? For $997 plus $97 a month? (And maybe more–it’s difficult to tell whether there’s any continuation pricing on some of the items. There likely is for the REO leads and access to the REO Rockstar himself. Woo hoo!) And most of the course is online.

Look: The course may or may not be worth $997 plus $97 a month (or $1,164 a year forever plus other add-ons). As is said elsewhere: We report. You decide.

But c’mon. A savvy real estate investor talking about wholesaling REOs: “I had no clue you could even do this. I’m not kidding. This is a TOTAL new concept to me. You’ve not seen this before. It’s simple and soooo smart. . . P.S. It’s one of the coolest investing strategies I’ve EVER seen.”

And frankly I don’t know what technique’s being promoted here. (That’s part of the reason I call this “crap.” Greg’s not revealing the concept; he’s not showing us what it is, as his e-mail suggests. Instead, it’s just a link to a sales page.)

But there are plenty of ways to do what’s described here: Flip REOs with none of your money. You borrow money–from a variety of lenders–to buy REOs. The only catch, in many cases, is that the property be priced far enough below the market. (And even that doesn’t always apply if you’re borrowing privately.) And as far as flipping, a lot of investors will put the property into a newly-created LLC, then sell the LLC itself. Or, heck, just buy and sell. There are a bunch of other ways to flip REOs.

On our Crap-O-Meter, let’s give this a 9 out of 10.

Hear No Evil, See No Evil

A few days ago, I was attending a workshop for real estate agents and the speaker revealed something that absolutely stunned me. He’s a well-regarded and very in-demand real estate trainer and motivational speaker. And before that, he was an amaxingly successful Realtor. He’s an expert at selling properties and in showing others how to do the same.

He acknowledged that the real estate market is going through some stressful times. He admitted that some real estate agents are depressed when they listen to the latest news about bank failures, foreclosures, mounting unemployment, $50 billion Ponzi schemes, and stock market declines that have wiped away trillions of dollars in equity.

But here’s what shocked me.

He said he isn’t bothered by all that because he simply doesn’t watch or read the news. He said he hasn’t for at least 10 years. (I’m not sure how he knew about the problems with the economy, but that’s another story.) And he urged those in the audience not to watch or read the news, either. After all, he explained, a good agent can succeed in any market and there’s no point in exposing yourself to news that will only depress you.

I’ve also had other real estate agents tell me that they don’t bother with the news either. Their explanation: Newspapers and broadcasters search out the bad news but never report the good. Frankly, that criticism has been around for a long time. There’s even some basis for that criticism simply because of the definition of news. If a tornado strikes your home town, that’s news. If no tornado hits, that’s not news. No newspaper headline: “Fairfax Escapes Tornados for 1,200 Straight Days!”

Nevertheless, I wonder how well a real estate agent or any professional is able to serve his or her clients if he/she isn’t aware of what’s going on in the world, the country, and the neighborhood. In fact, I’d suggest that any profession who is unaware of–or ignores–financial and political developments and trends is at a distinct disadvantage when serving clients.

I’m sometimes asked for my advice on how a buyer or seller should choose an agent. There are a number of criteria that a buyer or seller can use. I won’t list them all here, but they include such factors as experience, knowledge of the neighborhood, responsiveness, and a “comfort level” of the client with the agent.

Based on that workshop I recently attended, I’d suggest that, as a buyer or seller, you include a question along the lines of: “What newspapers do you read? What news shows do you watch? And which web sites do you regularly visit?”

The specific answers–The Washington Post or the New York Times, MSNBC or Fox, the Drudge Report or Daily Kos–don’t really matter much. What does matter is whether he or she engages in any of those activities.