A Master Guide to Income Property Brokerage

JOHN M. PECKHAM III, CCIM, CIPS, RECS, is Chairman of the Peckham Boston Advisory Company, a commercial investment real estate brokerage firm founded in 1963. He has sold over a billion dollars of income property using the methods presented in this guide. In addition, he has shared these success-building techniques with over 100,000 real estate professionals in forty-four states and several countries. He is a former president of the Massachusetts Association of Realtors® and a former chairman of the Strategic Planning Committee for the National Association of Realtors®. He has been honored as Realtor of the Year by both the Greater Boston Real Estate Board and the Massachusetts Association of Realtors®. He is also the founder and Executive Director of the Real Estate Cyberspace Society (www.recyber.com), a 10,000-member organization that helps its broker/agent members leverage their effectiveness using many of the tools in this guide.

A WORD FROM THE AUTHOR ix

WHAT THIS GUIDE COVERS x

INTRODUCTION Your Golden Opportunity for Big New Commissions and Profits in Income Property Brokerage xii

Why This Guide Is So Important to You xii

A Word about Big Commissions xiii

The Unique Benefits of Income Property Brokerage xiv

CHAPTER 1 How to Profit Most from Different Types of Income Property 1

How an Income Property Differs from a Real Estate Investment 1

Types of Income Property 2

How to Use Your Efforts Most Profitably 8

Cyberspace Marketing Tips 9

CHAPTER 2 Five Quick Ways to Find Property Owners Who Will Sell 10

Where to Find Prospective Sellers 11

How to Find Out Who Owns the Building 37

Finding Sellers at Cyberspace Speed 39

CHAPTER 3 Turning Your Leads Into Listings That Sell 42

Priority Checklist for Listing Efficiency 42

How to Handle the Owner Who Has Already Decided to Sell 44

Step 1: Persuading the Owner to Sell 45

Step 2: How to Persuade the Owner to Use Your Services 53

Step 3: How to Gather the Necessary Information 55

How to Obtain and Record the Information 59

Financing: The Critical Part of the Listing Form 63

Cyber Assists for the Listing Process 69

CHAPTER 4 How to Use Today’s New and Ingenious Ways to Finance Income Property 70

How to Multiply Your Selling Chances 73

Six Rules to Help Project Potential Financing 74

When to Place a New First Mortgage 83

Creating Maximum Leverage with Secondary Financing 91

A Proven Method for Obtaining Low- Rate or No- Rate Mortgages 117

Finding Income Property Financing in Cyberspace 118

CHAPTER 5 How to Price Income Property to Sell Quickly 121

How to Estimate Action Price Level 123

How to Put the APL Guides Into Action 131

Cyber Assists for the Pricing Process 134

CHAPTER 6 Setting Up Operating Statements That Promote Sales 136

Setting Up an Operating Statement 137

How to Prepare the Beginning of an Operating Statement 139

How to Construct the Middle Portion of an Operating Statement 141

Financing 142

How to Complete the Final Segment of the Operating Statement 143

How to Use the Income Analysis Section 147

Cyber Assists for the Operating Statement Process 152

CHAPTER 7 How to Present the Unique Benefits of Investing in Income Property 153

The Six Big Selling Points of Income Property 154

CHAPTER 8 Thirteen Immediate Sources of Buyers—And How to Approach Them 183

How to Amass a Huge File of Ready Investors 184

Finding Buyers at Cyberspace Speed—The Huge Potential 195

CHAPTER 9 Proven Techniques for Qualifying Buyers 198

How to Classify Your Investors 201

How to Handle Your Initial Interview 205

How to Review and Summarize the Interrogation 213

How to Maintain Your Prospect Files 228

CHAPTER 10 How to Advertise Income Property—And Make It Pay Off Big 230

How to Write Ads That Build Sales 231

Avoid These Pitfalls 237

How to Capitalize On Free Ads 239

How to Submit an Acceptable News Release 244

CHAPTER 11 How to Show Income Properties for Fast- Action Sales 248

Some Special Problems, and Strategies to Solve Them 249

How to Appeal to a Buyer’s Five Senses 260

An Action Memo 263

CHAPTER 12 How to Master the Fine Points of Selling Income Property 264

How to Answer Frequently Asked Questions 265

How to Answer Your Prospect’s Objections 269

The Seven Basic Objection Categories 271

How to Present the Plus Features Convincingly 278

CHAPTER 13 Condominium Conversion: An Exciting Wealth- Builder 281

Condominium Marketing: A Case History 281

The Profits of Condominium Conversion 283

The Mini-Checklist for Suitability 286

Establishing a Conversion Team 294

The Condominium Conversion Process 297

The Future of Condominium Conversion 299

Cyberspace Marketing Tips 301

CHAPTER 14 How to Sell Like a Giant Using Cyberspace Tools 303

A Vision for Technology’s Impact on Real Estate 303

Tech Tools Evolving 304

A Marketing Plan Evolves 305

Creating Your Marketing Campaign in Cyberspace 306

How to Use E-Mail to Reach a Wide Network of Potential Buyers 310

A Huge Online Source of Buyers, Sellers, and Tenants 321

How to Develop a Custom Presentation Template 325

Use Cyber Marketing to Sell Anything—Including Yourself 327

Build a Following with a Monthly Customer E-Newsletter 330

CHAPTER 15 How to Make a Final Presentation That Clinches the Sale 332

How to Dramatize What the Property Will Do for Your Prospect 332

The Peckham Boston Analysis: A Powerful Wrap-Up 333

How the Analysis Worksheet Sells the Property and the Broker 340

CHAPTER 16 How to Keep the Ball Rolling and Put These Profitable Techniques Into Action Now 349

How to Get Into Income Property Brokerage—Step by Step 349

Your 20- Week Timetable—A Road Map to Success 351

How an Income Office Operates 356

Five Qualities That Spell Success 359

ABOUT THE AUTHOR 361

INDEX 363