|Letter from Dan
"Are You Afraid of Heights? How About Making Deals?"
So this past Friday, while I was in Philadelphia for the monthly RING meeting, my partners, Jon,
George, and I decided to go zip-line at the (GoApe) Lums Pond State Park near Dover,
Delaware. The weather was nice and we had been working non-stop all week long, so we felt we
deserved a little break.
The zip line course consists of 4 long zip lines which traverse Lums Pond. You can literally see
turtles and snakes swimming in the water as a zip across the pond and land (hopefully) on the
ground at the opposite bank. Each of the zip lines has a tree top obstacle course which you must
complete before enjoying the ride back to the ground. I like bringing people here to overcome
fear. Punch past a fear of heights and use that experience as a lesson for punching past other
fears in life-like having to make a $16,500 offer on a house that the seller is asking $50,000. I
highlight this lesson as we are literally 50 feet above the ground suspended by ropes and small
wooden planks. Check out the photo.
When everything goes right, you complete the course DRY, and SAFE. But this time, everything
didn’t go right.
Just as Jon left the platform, zipping across the pond, the harness began to slow down and then
stop. George and I are at the bottom watching as Jon is dangling up above the water. Stopped.
Jon begins pulling himself slowly along the zip line back toward the ground.
Right as he is nearing the landing zone, one of the course instructors takes notice, tells him to
stay still, and proceeds to connect himself to Jon’s zip line and make his way out to “save” Jon.
As the added weight of the instructor approaching Jon’s locations begins to lower the zip line, Jon
begins lowering toward the water. With the snakes & turtles.
Then, right as the instructor “saves” Jon, Jon begins bobbing up and down in the swampy water
like a Lipton tea bag! Repeatedly plunging his feet and butt into the water! The instructor then
pulls Jon back to safety, gets him a new harness, and sends us back on our way. You can check
out the rescue in the photo album on our Facebook (Like the Page) page at
Jon’s a real trooper. Not only did he NOT utter a single complaint, but after we got back to the
office from zip lining, he left straightaway for a settlement from one of our referral deals. Jon’s a
straight deal closing BEAST!! Swamp ass and all!!
"Referral Deal Closed this Week"
The deal Jon went to settle was referred by Ty a few months back. Ty works a full time job and
doesn’t always have time to go see the leads he generates with his direct mail marketing. This
deal was one of those leads.
Ty sent the lead, Jon went out and negotiated the deal, and I got the deal sold through one of my
VIP buyer relationships. I don’t think Ty ever saw the house. But when the deal sold, Ty did see
half of the $8,500 profit.
There were some title issues on this deal and it probably took about 3 months to close. But when
a tough deal like this does close, it is a real victory. Better late than never!!
"I Want to Make YOU Rich"
Most people are always on the lookout for numero uno. Number 1. Themselves.
And for good reason, you normally have to look out for your own interests because everyone else
is looking out for their own. You gotta be selfish to some extent in life or people will just walk all
over you. Well that’s not exactly the way I run my partnerships.
I believe in spreading the wealth according to the value brought to the table by each partner. I
pay my private lenders healthy returns on their IRA accounts in the neighborhood of 10%-15%.
They bring value to my deals by bringing the capital to buy & build the projects, so I give them
solid returns. They (actually their MONEY) bring value to the deal and make a few thousand (or
ten) for their passive participation in the deal.
I pay referral partners huge wholesale fees-often for doing nothing more than just referring a lead
to my organization. Did you notice I don’t really throw around the term “wholesaler” too often?
That’s because I think of myself and others acting in a wholesale capacity more as “partners” than
“wholesalers”. When I find & negotiate a deal for another investor, I approach that negotiation as
if I am buying the deal myself.
Then, when I present the deal to the next investor, I’m basically being paid out my profit up front
as the assignment fee to get out of the deal. I don’t care if the next investor decides to pass on
any of my deals anyway, because I have the money lined up through other partnerships to close
on the project and build it out myself. The point is, I believe in paying my referral partners well so
they continue to bring deals in my direction.
I am always thinking about how I can pay the people around me MORE MONEY. Counterintuitive,
I know. But over the past 3 years, the more I’ve been able to pay my partners more money, the
more money I myself made. By giving people their fair share, I’ve earned their loyalty. With that
loyalty I’ve been able to invest my money, and more importantly & valuable to me-my time in
building them up into highly skilled & trustworthy deal making machines.
The question I used to ask myself was “How can I make more money?” I used to worry only about
my own money. Now I think about enrich everyone around me. The question I ask myself now is,
“How can I create more value and help the loyal people around me to make more money?”
Continue Reading on Page 2
|I Recommend You Read:
|REI Diamond Interview
"Soft" Hard Money Lender
|Check out the Photos of Jon's Zip Line Malfunction. Remember to "Like" our
George Beatty, Jon Potter, & Dan Breslin @ Lum's Pond Delaware
|"Real Estate Investment Jewels of Wisdom"