JKP018: No More Roller Coaster Incomes

Motivated Seller Blueprint

Hello everybody This is Jim Krautkremer the Real Estate Master Coach Mentor Welcome to MSB Daily Edition Today's topic is this...

No More Roller Coaster Income

Sit back and relax and welcome to the podcast

Our industry is riddled with roller coaster incomes especially depending on the time of year giant summer months and leaner fall months strong year end closings and leaner first quarter of the year

there are just too many problems that creep up when we have roller coaster incomes makes it difficult to plan difficult to budget heaven forbid we are playing catch up with bills makes it hard to allocate resources for marketing

or worse yet, we make investments in marketing then stop when the money gets tight, then re start when we get more money

so the consistency goes away

your potential customers notice it more than you think and if they notice an inconsistent message from you, then will never do business with you

customers like consistency and never want to wonder how you are doing more importantly, there is something very mental that happens with roller coaster incomes #1 - it affects your confidence - unpredictable income is a tough thing to swallow #2 - it makes for tougher conversations at home - lots of fun when the money is flowing in, and not so fun when things dry up #3 - if you can’t predict your income in the next 6 months, you are not running a business. You are at the mercy of someone else. #4 - roller coaster incomes have you operate from a position of weakness vs a position of strength - reaching for the business, needy, yuck!

To take this a step further - i want to talk about having 3 months of income in savings that’s right - 3 months if you were to add up ALL the money you spend in a month (on everything) having that in a savings account that you do not touch is CRITICAL i just hired a coach to help me specifically with retirements accounts and passive income one of his criteria is to have 6 months of living expenses in savings prior to him even considering working with a new client 6 months

why? not just the safety and security its also very mental you got 3-6 months of money in the jar, it gives you swagger you know you got the money if you need it it gives you options you know in the back of your mind that you can make a buying decision if needed

you can invest in marketing, or coaching, or something else IF you wanted

That word IF you wanted is very powerful when you re broke you don't have that choice and we all like choices being in a strong CASH position is critical to your mental state and your

real estate business it levels out your marketing it creates confidence it puts you in a place to make decisions and choices you can make an investment in your business IF you see fit it makes for easier conversations at home it creates consistency

so HOW do we get rid of this roller coaster issue? the best way that I know is to take more listings not to state the obvious, but I hear from people all the time, that they don't

take on a new listing because the seller wants too much for their house or that the seller is not motivated or that the house is in a bad area all bullshit excuses as far as i am concerned my banker does not care about any of those things he just wants me to keep making deposits every week my crystal ball fell off my desk, i ordered a new one from prime and it should be here tomorrow

cant predict the future but one thing is for certain, there is really no down side for too many listings i guess you could say you spend too much money on lockboxes and signes, and marketing but other than that there is no downside the upside is that you have ALL of the inventory so when people want to buy, they buy your houses

think about this…

it’s the end of summer, inventory is getting low because everyone just got done buying up the houses you are at the kitchen table with a seller that wants 10% over market value

what do you do?

ass because they want too much?

that is foolish

inventory is low interest rates are low a 6 month agreement takes you into February the following year well after the new year rush puts you in the driver seat all the way around a FSBO at the end of summer is the perfect time to list oh you hate realtors? good lets add on my commission and put it in the price same reason we just talked about from a timing point of view

what would you rather do?

let them sit and list with another agent in January

Not me!

i want the inventory i want to control the market the downside is a small amount of money in accumulation costs the upside is enormous you got all the listings

here is something else to consider

a buyer says, hey when I find the right house, I will pull the trigger no real sense of urgency or a need to buy not a lot of prep work to shop not committed publicly not the case with sellers they have committed publicly

sign in their yard marketed online people coming their their house told all their friends and co-workers they have their house listed took down all their pictures of their family and kids staged their house and decluttered it ready to go

they want it down sooner vs. later and have all these reasons to do so so getting that signed listing agreement has taken that seller to a new place with an urgency and real reason to sell all the more reason to build your inventory The question I have for you today is this:

Do you want to eliminate roller coaster incomes forever?

Here is your challenge.... go accumulate more inventory if you don't know how to do that, hit me up, and I can help you

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This is Jim Krautkremer signing off Do The Real Work With Power & Purpose Today & Every Day