So now you are starting to see this process come together. Now you need to know where you are going to make money, and how.

The way we are setting these relationships up there are countless different scenarios and situations where you will be working with investors. The main thing to keep in mind is that the relationship is priceless.

This will keep everybody happy, help them, and make everybody money. I know I keep saying this but I still have students with difficulty understanding this concept. Always focus on the relationship and how to solidify it.

When people read my information or go through my training or even work with me on a deal they always walk away talking about how great I am and wonderful the experience was.

Then they usually talk about how brilliant I am and how they can't wait to work together again.

That all feels good to hear but the truth is it has nothing to do with my intelligence.  Whenever I talk to anybody I think about what is in their best interest and how we can work together for an indefinite period of time, I think about the relationship. You must do the same.

So now that you are focused on the relationship, let's look at what you need to do make money from these relationships with investors and exactly how to do it.

So let's talk about the different ways you can make money with your investors.

Assignment Fees

This is a very basic deal where you find your investor a deal that fits their criteria and they want to buy it from you.  You control the home by writing a purchase agreement on it and then you are going to assign your rights to your investor.

You want to make at least $3,000-$5,000 on each of these deals, you can make less when you find the investors that will take these deals from you consistently.

When you assign a deal you want to make sure that there is money in it for the investor, you can explain this as you send out your weekly email to your list.

You want to show the investor where they will make money and exactly how they will make it.

For example...

A home is worth $100,000 but your seller just wants $70,000-$75,000 for it so that they can get out of it.

The cash deals that you are going to be doing will normally be moved by assigning them to an investor. So you control the home for $70,000 and then you assign the right. You have to sell the home for $70,000 to your investor.

Your investor pays you $3,000 and they pay the seller $70,000 and they still have about $27,000 in profits. You want to explain that $27,000 to you investor immediately when you hear about deals like this.

As long as you keep a solid mention of how much they are going to make you will find much less objections and they will be wanting to work with you more and more.

So with a cash deal you write up the purchase agreement with the seller, this gives you control of the home.  Then you go to your list, or you start creating one, and you assign your rights to the home to your investor.

Your investor pays you the assignment fee, they pay the seller their asking price, and now your investor owns the home with immediate equity.

Remember to keep your investors' best interest in mind, this is what will keep them coming back again and again. Normally when I close a deal with an investor I do another with the same investor within a few days.

You want to do the same thing.

You will get paid one of two ways...

Either your investor will pay you the assignment fee immediately or they will pay you when they pay the seller and they will use the "loan" money to do this.

I say "loan" because the source of funds could come from any one of the countless investors. The point is that they wait on paying you until the closing.

If you have to wait to get your money then you should go for at least $5,000.  You can lower it and do $3,000 but you don't want to go any lower, you don't want to do a split with these deals normally because you are are waiting.

If the investor brings you cash and does it immediately you can work a discount out with them.

Make sense?

Those are the basics of making money with investors from assigning a deal. There are still other possibilities out there.

Finding Buyers For Your Investors

Or...

Using Investors' Buyers For Your Homes

This is basically one in the same; either you have a home and an investor brings you a buyer or you find a buyer for one of your investors' homes.

If your investors have a deal that you find a buyer for you want to make at least $1,000 from the down payment. This is if we are talking about a lease option tenant. The target is $3k-$5k but you want the investor to make money as well and you can always take a hit for the sake of the relationship.

So initially just making $1,000-$3,000 is fine as long as set the expectations and make it clear that in the future you are going to be working closer to a 50/50 split.

The norm is usually $500 for finding an investor a buyer. You can explain that you pay $1,000 to 50% of the down payment and that is the way you want to work.

When starting you can accept this $500 but explain that this won't last.  Once you show your investors you can deliver they are going to be much more likely to work with you.

With a lease option tenant the down payment is usually the only item available to be split, the income and equity is almost never split.

So if you have a home that you need a lease option tenant for you can go to your investor list and see what they can do.  At this point it doesn't really matter if you are taking ownership of the home because either way you need a tenant.

By paying more to you investors to find you buyers you are doing two very powerful things at once; you are justifying charging more for buyers when you find them and you are getting them more excited about working your deals by giving them more incentive to help you help them.

Once you have this up and running you can simply send out some emails and get flooded with buyers from various investors. Many times your investors won't have the time, or the knowledge, to find homes for these buyers.

This leaves a wide open cash cow for you to optimize. You can find any of your buyers, or you investors' buyers, homes and do this quickly and easily.

So once you get a home you need a buyer for, go to your list.

Conversely once you get a buyer go to your list as well and see what is available.  You want your investors to look forward from hearing from you.

So if you have some buyers or your investors have some homes that need to be moved, or you have some homes that your investors are going to bring you buyers for, it really doesn't matter.

You can make money in either situation.

If you are dealing with another investors' leads or homes you do everything the same way, get access to the home and signs up.  You can also start your ads going and your list notification immediately.

This will get your phone ringing and you will have business coming in left and right.

Do you see how quickly you can have countless homes on your list that you can make money with immediately?

The goal here is to remember that when you use other investors' resources you can all make money. The documentation here is simply the purchase agreement with the "split" stated in the further conditions.

Although this is a legally binding agreement you are still somewhat exposed, this is why you will only need to do this a few times to know who the winners are.

Is this making sense?

Anytime you get a deal you want your entire list of hundreds or thousands of investors to jump on it.

I want to talk about one way to profit with investors...

Realtors

Remember that once your investor tells you what they want you can find a Realtor to pull up deals for your investors from the MLS or from their own contacts.

The contacts' list can be much more powerful because those deals are not being marketed yet, you get the first crack at many of them.

These Realtors will be thrilled to send you the list first once they know you have serious investors in place.  You can also use these Realtors to move deals you come across; you can use each other's lists.

Remember that anybody will work with you as long as you give them a compelling enough reason to.

So when you get deals from your Realtor and an investor wants to buy one you will get paid a percentage of the sales price or you and the Realtor will work out a split.

Remember your goal here is $3,000-$5,000 at the very least. So you can raise the price of the listing by that much or get a cut from the Realtor.

You will net at least $1,000-$2,000 and you will only take this cut for the sake of the relationship.

Make sense?

Those are just a few ways to make money with your investors. You want to make sure they know you and know that you are serious.

There are so many reasons why this relationship approach will make you money that I couldn't possibly list them right here.

For one thing your investors will have other deals that they come across, deals that they don't move on usually because they don't know how.

I remember dealing with a "rehab" guy that was complaining about how many sellers call him up with homes in great condition but they had no equity, he didn't know what to do.

I worked with him and within 2-3 days I picked up about five "subject to" deals.  These all came from Dale, my rehab investor.

As long as your investors see a way to make money they are going to be willing to send you their leads that they aren't able to do anything with.

This makes the investors look great because now he has this great "underground" source that can help him and his clients. The sturdier this relationship is the easier the cash will come.

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