Spouse Objections to Rehabbing Real Estate
I’ve run across a lot of folks who tell me they’d love to do what I do, but their wife is just not comfortable with it. That’s a powerful objection, and sometimes it’s one that cannot be overcome. Most times, I think it can be, if you really want to. All too often, I get the impression the potential investor doesn’t want to jump into rehab real estate bad enough to work through the spouses objections. It’s the old “it’s easier NOT to” mentality!
The issue is usually not that your spouse doesn’t want the financial rewards that accompany the real estate rehab business. The reasons spouses object is usually good ol’ fear. For example:
fear of the unforeseen
fear of financial loss
fear that you don’t yet know what you’re doing (my favorite!)
The latter two are the big leaders. These fears may come from something they’ve heard, or they may be rooted in them not really understanding the transaction or what you’re trying to accomplish.
For my wife, her fears were that something would come up that I hadn’t thought of, or that a house may sit empty for several months thus depleting the bank account.
How to deal with the fears of your spouse regarding rehab real estate
Sit down and discuss their fears. Find out what they really are. You always want to deal with a known entity.
Be sure your spouse understands the importance of rehab real estate in your long term financial goals, and how it fits into your family’s security.
Always encourage your spouse to ask questions!
If your spouse expresses general fear of the whole thing, that may be because of a lack of understanding of the process or they are very intimidated by it.
Encourage questions!
Explain how the transactions will work
Explain how you are minimizing the risk to your family.
Yes, the numbers might be big, but if you aren’t putting a lot of your own money in it, then your risk of loss is minimal.
Go over the worst case scenarios. Explain that worst case, the property could be quickly sold for SOME profit.
Reveal to your spouse the folks you have working with you, such as your mortgage broker, your wholesaler (flipper), appraiser, and anyone else you’ve identified up to that point.
My wife was very distrustful of these folks in the beginning. I had to explain and show her that these folks had EVERYTHING to gain by my first deals going very well, if they wanted to continue making money with me.
If the fear seems to be of the unforeseen
Explain that while this seems complicated, you’ve done your homework and you’ve learned about all you can learn without actually doing a deal for experience. (You reach a point where this is true!)
Explain that you won’t own the property a minute without enough insurance to cover anything that could happen.
If the fear is financial loss
Depending on your personal financial situation, you should focus your spouse on how real estate can and does improve the lives of investors.
If you’ve already identified a property, reveal your worksheet and how much you stand to make off that property.
Agree with your spouse NOT to take on too much risk. Set your boundaries together. I assure you that you’ll easily revisit these the first time you bring home a large check.
Fear that you don’t have the knowledge
Be sure you are well studied! Remember, knowledge comes before the money! Spend the money on a good course, or book. Don’t rely on just one. Get several author’s take on the subject. There are inexpensive ways to do this!
Explain that you have studied this thoroughly. Heck, you’ve got a head full of knowledge that needs to be put into action in order to move forward.
Agree with your spouse. That’s why you are tapping into the knowledge of those real estate professionals around you! Explain who’s on your team, and what they have to gain from you. Remind your spouse that you are tapping into the knowledge of those around you, those that know your area very well.
When your spouse comes around and is resigned that you are going to do this, they may:
Sign on and dig in beside you for the deal and what follows (throw total support behind you).
Flatly say, they don’t agree, but if you must…
Something in between, like “Honey, you do whatever you think is best.”
This last possibility is what I predict will happen to most. This allows your spouse to give you the room you need, but at the same time not completely agree. That’s where my wife went. It was a safe position for her. And, it’s a safe position for you! You’ve got the go-ahead, so go ahead!
I was in that position myself. If was a good feeling to watch her fears fall away as I complete my first couple of projects. Her eyes got nice and big when I refinanced my first two properties at the same time and brought home more money in one day than I’d ever held in my hands before. I also watched her understand the benefits more completely while sitting in my CPA’s office and having him say to her “These properties are saving you big time on your taxes.” I dare not say, I told her so, but I told her so
Sure, there are challenges, but the paydays are great.
So, over time, my bride is my full partner taking on whole aspects of the business freeing me up to do the parts I do best.
Spouse objections can be show-stoppers, but these suggestions will hopefully help you deal carefully with them. It’s not enough to merely brush them aside and charge ahead. I recommend a loving, cautious approach because in good time and bad, your spouse is your greatest ally. Keep them close!
Friday, December 28, 2007
Saturday, December 8, 2007
Investor Apprentice Program
There is a famous old story about a company that had a
problem, and they called out a repairman to fix it.
The entire company was on the verge of shutting down production because
no one at the company had been able to identify this problem,
let alone fix it.
The repairman soon arrived, checked out the situation, went over
to one of the many miles of pipes running through the building,
and started banging on one particular pipe. He banged for about a minute.
He then ordered the crew chief to restart the machinery. Production
was restored and everyone was happy.
A few days later, the company received the bill for the repair.
The company manager was shocked to see that the amount due for the
repair was $10,000. The manager called the repairman and shouted
in the phone, "This repair bill is for ten thousand dollars! Where
do you get off charging me $10,000 for what amounted to banging on
a pipe for all of about 1 minute?!"
The repairman calmly replied "Oh, I only charged you $50 for banging
on the pipe. The other $9950 was for knowing precisely what pipe
to bang on."
And so the moral of this story is...experience is everything.
The fact is there are major investing opportunities all around you,
but can you see them? Do you know how to read the fundamentals of
your market to help you develop a strategic advantage? Do you worry
that your deals might not be profitable?
Are you an agent or broker who is wondering how to cope with a
down market, searching for ways to stabilize or increase income?
Would you like to discover how to go from killing yourself for a lousy
$5000 commission, to making a $100,000 commission for the same amount
of work with less hassle?
You may not know it, but there is a world of big opportunity out there
if you only know where to look and what to do when you find it.
You don't have to be licensed to break into high dollar real estate.
But if you are, it is even better. You can make a few thousand bucks
a year or you can make a few HUNDRED thousand bucks a year. It's all
in the choices you make.
Would you like to implement multiple income strategies that are
synergistic with your existing business model, and enable yourself
to make money all the time in any market?
If you are serious about your real estate career and your financial
future, and you have some resources for real estate investing and
business growth, you may be a candidate for our Investor Apprenticeship
Program.
If accepted, you'll be working one-on-one with Donna Robinson and
Peter Vekselman; two experienced real estate investors with more than
1000 transactions and years of on the street know-how and insight.
If you are wondering how to take advantage of the current housing
market, and drive your investing business or real estate brokerage
business to the next level, keep reading...
The fact is that todays housing market crisis is largely the result
of inexperienced investors who used bad loans to finance good properties
and today they are going down the financial drain by the thousands.
Many well meaning, honest investors are in financial ruins today
simply because they did not know what they were doing, and failed to get
advice from experienced experts who could have easily identified their
mistakes BEFORE they were made. This one simple step could have
saved them years of turmoil, financial hardship and bad credit.
It is a fact that some of our apprenticeship clients come to us
for damage control. They have already made severe, costly mistakes.
Mistakes that will affect their lives for years to come. Some went from
having perfect credit to credit that has been ruined, due to bad
investing decisions. If only they'd gotten professional advice from
us first.
The most common mistake new investors make is to try and
cut costs by neglecting things like professional advice that can insure
that they know what to do to be profitable and avoid life changing
mistakes.
This investor apprenticeship is a real bargain when compared to the
price thousands of investors are now paying for their failure to
get independent, professional advice from someone who has "been there
and done that".
Todays market is developing into some of the best buying opportunities
in 20 years. But there are also some of the worst opportunities in
20 years. Can you tell the difference? If you want to discover how
to really be profitable in any market while avoiding common and costly
mistakes, you need solid professional advice with over 20 collective
years of experience.
One of our current clients is learning how to take his brokerage
business to new levels by focusing on market opportunities in his
area that he thought were beyond his reach and expertise.
Another investor client is learning how to increase his volume from
struggling to do 1 or 2 deals a month, to building a business that
will allow him to double his volume with the same or even less work
than he is doing now. He was focusing on the wrong market. In just
one session we changed the way he looked at his business and corrected
several mistakes he was making but did not even realize.
Here's how you can find out if an Investor Apprenticeship is right
for you...
Donna Robinson and Peter Vekselman are planning a live teleconference
on Monday, December 10th, at 1 PM Eastern Time.
To register for the call please click the link below and a
confirmation will be emailed to you very quickly with complete
details on how to dial in.
http://www.reiuonline.com/coaching/freecoachingcall.htm
We will be discussing true stories of things that happen to real investors
and some actual case histories of Apprenticeship clients and how they
are using our strategies to increase income, build new income streams
and avoid big mistakes along the way.
If you are serious about growing your real estate business, this may be
just what you need to put the pieces all together and drive
your business into high gear.
problem, and they called out a repairman to fix it.
The entire company was on the verge of shutting down production because
no one at the company had been able to identify this problem,
let alone fix it.
The repairman soon arrived, checked out the situation, went over
to one of the many miles of pipes running through the building,
and started banging on one particular pipe. He banged for about a minute.
He then ordered the crew chief to restart the machinery. Production
was restored and everyone was happy.
A few days later, the company received the bill for the repair.
The company manager was shocked to see that the amount due for the
repair was $10,000. The manager called the repairman and shouted
in the phone, "This repair bill is for ten thousand dollars! Where
do you get off charging me $10,000 for what amounted to banging on
a pipe for all of about 1 minute?!"
The repairman calmly replied "Oh, I only charged you $50 for banging
on the pipe. The other $9950 was for knowing precisely what pipe
to bang on."
And so the moral of this story is...experience is everything.
The fact is there are major investing opportunities all around you,
but can you see them? Do you know how to read the fundamentals of
your market to help you develop a strategic advantage? Do you worry
that your deals might not be profitable?
Are you an agent or broker who is wondering how to cope with a
down market, searching for ways to stabilize or increase income?
Would you like to discover how to go from killing yourself for a lousy
$5000 commission, to making a $100,000 commission for the same amount
of work with less hassle?
You may not know it, but there is a world of big opportunity out there
if you only know where to look and what to do when you find it.
You don't have to be licensed to break into high dollar real estate.
But if you are, it is even better. You can make a few thousand bucks
a year or you can make a few HUNDRED thousand bucks a year. It's all
in the choices you make.
Would you like to implement multiple income strategies that are
synergistic with your existing business model, and enable yourself
to make money all the time in any market?
If you are serious about your real estate career and your financial
future, and you have some resources for real estate investing and
business growth, you may be a candidate for our Investor Apprenticeship
Program.
If accepted, you'll be working one-on-one with Donna Robinson and
Peter Vekselman; two experienced real estate investors with more than
1000 transactions and years of on the street know-how and insight.
If you are wondering how to take advantage of the current housing
market, and drive your investing business or real estate brokerage
business to the next level, keep reading...
The fact is that todays housing market crisis is largely the result
of inexperienced investors who used bad loans to finance good properties
and today they are going down the financial drain by the thousands.
Many well meaning, honest investors are in financial ruins today
simply because they did not know what they were doing, and failed to get
advice from experienced experts who could have easily identified their
mistakes BEFORE they were made. This one simple step could have
saved them years of turmoil, financial hardship and bad credit.
It is a fact that some of our apprenticeship clients come to us
for damage control. They have already made severe, costly mistakes.
Mistakes that will affect their lives for years to come. Some went from
having perfect credit to credit that has been ruined, due to bad
investing decisions. If only they'd gotten professional advice from
us first.
The most common mistake new investors make is to try and
cut costs by neglecting things like professional advice that can insure
that they know what to do to be profitable and avoid life changing
mistakes.
This investor apprenticeship is a real bargain when compared to the
price thousands of investors are now paying for their failure to
get independent, professional advice from someone who has "been there
and done that".
Todays market is developing into some of the best buying opportunities
in 20 years. But there are also some of the worst opportunities in
20 years. Can you tell the difference? If you want to discover how
to really be profitable in any market while avoiding common and costly
mistakes, you need solid professional advice with over 20 collective
years of experience.
One of our current clients is learning how to take his brokerage
business to new levels by focusing on market opportunities in his
area that he thought were beyond his reach and expertise.
Another investor client is learning how to increase his volume from
struggling to do 1 or 2 deals a month, to building a business that
will allow him to double his volume with the same or even less work
than he is doing now. He was focusing on the wrong market. In just
one session we changed the way he looked at his business and corrected
several mistakes he was making but did not even realize.
Here's how you can find out if an Investor Apprenticeship is right
for you...
Donna Robinson and Peter Vekselman are planning a live teleconference
on Monday, December 10th, at 1 PM Eastern Time.
To register for the call please click the link below and a
confirmation will be emailed to you very quickly with complete
details on how to dial in.
http://www.reiuonline.com/coaching/freecoachingcall.htm
We will be discussing true stories of things that happen to real investors
and some actual case histories of Apprenticeship clients and how they
are using our strategies to increase income, build new income streams
and avoid big mistakes along the way.
If you are serious about growing your real estate business, this may be
just what you need to put the pieces all together and drive
your business into high gear.
Monday, December 3, 2007
Do you need a Partner?
Business Partners
Donald Trump said that if not for a prenuptial agreement, his divorce would have buried him in the late 1980s.
A business divorce can also bury you. You are not necessarily going to have a prenup agreement for your business partner, but if you do take on partners, here’s what I recommend:
· Take on business partners only on a deal-by-deal basis.
· Use partners for money, credit or to acquire properties.
· Never give anyone authority over your money.
· Make decisions on a financial basis first.
· Make sure you, your partner and partner’s spouse share the same goals.
People ask me, “Should I have a partner in business?” And my answer is, “Should you get married?” Because both of those require a commitment.
No one really knows what a partner is going to be like until you hit tough times and you disagree. You have to create assurances that you are both going to be solvent and liquid.
Use money or credit partners, but only on a deal-by-deal basis. It’s easy enough to get out of one deal if you have to, but it is much more difficult to get out of 100 deals with a partner.
Make sure that you and your partner share the same goals and work ethics. (Here in the book I talk about one of my early partnership deals! I also address how to do business with family, spouses and spouses of partners.) Most importantly, I talk about how to protect yourself. This section will be available when the book is released!)
…if you go into business with family, the same rules apply.
If you are married to your business partner, make sure you define clear roles and boundaries in your business and marriage. In my business, I am the president and my wife is vice-president, so I have final say. She trusts my decisions based on my experience. But in our marriage, we are equal partners and consult each other on decisions and problem solving.
Donald Trump said that if not for a prenuptial agreement, his divorce would have buried him in the late 1980s.
A business divorce can also bury you. You are not necessarily going to have a prenup agreement for your business partner, but if you do take on partners, here’s what I recommend:
· Take on business partners only on a deal-by-deal basis.
· Use partners for money, credit or to acquire properties.
· Never give anyone authority over your money.
· Make decisions on a financial basis first.
· Make sure you, your partner and partner’s spouse share the same goals.
People ask me, “Should I have a partner in business?” And my answer is, “Should you get married?” Because both of those require a commitment.
No one really knows what a partner is going to be like until you hit tough times and you disagree. You have to create assurances that you are both going to be solvent and liquid.
Use money or credit partners, but only on a deal-by-deal basis. It’s easy enough to get out of one deal if you have to, but it is much more difficult to get out of 100 deals with a partner.
Make sure that you and your partner share the same goals and work ethics. (Here in the book I talk about one of my early partnership deals! I also address how to do business with family, spouses and spouses of partners.) Most importantly, I talk about how to protect yourself. This section will be available when the book is released!)
…if you go into business with family, the same rules apply.
If you are married to your business partner, make sure you define clear roles and boundaries in your business and marriage. In my business, I am the president and my wife is vice-president, so I have final say. She trusts my decisions based on my experience. But in our marriage, we are equal partners and consult each other on decisions and problem solving.
Do you need a Partner?
Business Partners
Donald Trump said that if not for a prenuptial agreement, his divorce would have buried him in the late 1980s.
A business divorce can also bury you. You are not necessarily going to have a prenup agreement for your business partner, but if you do take on partners, here’s what I recommend:
· Take on business partners only on a deal-by-deal basis.
· Use partners for money, credit or to acquire properties.
· Never give anyone authority over your money.
· Make decisions on a financial basis first.
· Make sure you, your partner and partner’s spouse share the same goals.
People ask me, “Should I have a partner in business?” And my answer is, “Should you get married?” Because both of those require a commitment.
No one really knows what a partner is going to be like until you hit tough times and you disagree. You have to create assurances that you are both going to be solvent and liquid.
Use money or credit partners, but only on a deal-by-deal basis. It’s easy enough to get out of one deal if you have to, but it is much more difficult to get out of 100 deals with a partner.
Make sure that you and your partner share the same goals and work ethics. (Here in the book I talk about one of my early partnership deals! I also address how to do business with family, spouses and spouses of partners.) Most importantly, I talk about how to protect yourself. This section will be available when the book is released!)
…if you go into business with family, the same rules apply.
If you are married to your business partner, make sure you define clear roles and boundaries in your business and marriage. In my business, I am the president and my wife is vice-president, so I have final say. She trusts my decisions based on my experience. But in our marriage, we are equal partners and consult each other on decisions and problem solving.
Donald Trump said that if not for a prenuptial agreement, his divorce would have buried him in the late 1980s.
A business divorce can also bury you. You are not necessarily going to have a prenup agreement for your business partner, but if you do take on partners, here’s what I recommend:
· Take on business partners only on a deal-by-deal basis.
· Use partners for money, credit or to acquire properties.
· Never give anyone authority over your money.
· Make decisions on a financial basis first.
· Make sure you, your partner and partner’s spouse share the same goals.
People ask me, “Should I have a partner in business?” And my answer is, “Should you get married?” Because both of those require a commitment.
No one really knows what a partner is going to be like until you hit tough times and you disagree. You have to create assurances that you are both going to be solvent and liquid.
Use money or credit partners, but only on a deal-by-deal basis. It’s easy enough to get out of one deal if you have to, but it is much more difficult to get out of 100 deals with a partner.
Make sure that you and your partner share the same goals and work ethics. (Here in the book I talk about one of my early partnership deals! I also address how to do business with family, spouses and spouses of partners.) Most importantly, I talk about how to protect yourself. This section will be available when the book is released!)
…if you go into business with family, the same rules apply.
If you are married to your business partner, make sure you define clear roles and boundaries in your business and marriage. In my business, I am the president and my wife is vice-president, so I have final say. She trusts my decisions based on my experience. But in our marriage, we are equal partners and consult each other on decisions and problem solving.
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