real estate marketing, real estate internet marketing, real estate resources

Real Estate Scams, Subprime Mortgage Crisis, Real Estate Fraud- Where’s Has the Real Estate Industry Gone?

Written on by Peter- REBB Founder

Recently, I came across a news story on the Internet that talks about a locally well-known pastor and his wife being involved in real estate scams in the real estate business.  Basically what they were doing is they were using their positions to lure investors into questionable real estate purchases.

This locally well-known pastor and a radio show host, have been arrested by authorities, and now are in jail pending the posting of bail of $1.4 million each.  They were charged with racketeering conspiracy, first-degree grand theft and obtaining a mortgage by false representation by the state prosecutors.

You can read the rest of the article by going here.

I know that I am not the only one that has been exposed to such news.  I bet you have heard of such a real estate scams story yourself.  With the recent economy bailout plan by our government, lax Fennie Mae and Freddie Mac lending policies, these types of stories have been popping up all over the internet and fueling the subprime mortgage crisis around the country.

The bad part about all of this is that these real estate scams are still out there and they have not been exposed yet.  Even worse, as in this example where a pastor, a trusted local figure where people looked up to in their every day lives, has been charged with racketeering!  It blows my mind…

So, how are you, real estate investor or agent, going to convince your possible buyer or seller that you are not going to scam them?  How are you going to convince them that you are trustworthy and that you will actually help them, I mean really help them with their problem?

I mean, why should they trust you?  Why should they give you they info and believe you that you are not another scammer? The local news channels constantly talk about public figures who are suppose to be trustworthy.  Instead, they are getting imprisoned by the authorities.

Well, there are several ways that you can invoke trustworthiness into your business.  Some will take time and some will give you an instant credibility.  I know of several great ways that you can show your buyers, investors and/or sellers that you are going to really help them.

But today, I decided to do something different.  I decided to run a little contest.  Yes, a contest!  So what do you get as a winner you ask?

Here’s what you’ll get/win and what I’ll do for you.

The person that can give me the best convincing idea/strategy, a way that will help you as a real estate pro to gain the trust with your prospect will win.  I will choose the person who has a creative and actionable strategy.  The winner will receive a video critique of their real estate site, landing/squeeze page, blog or whatever web page they would like to have reviewed.  I will personally review your site, on video and give you actionable ideas that you can implement to increase your site’s success on the internet.

The value of that package is $997.  But you get it for free, here on my blog.

Here’s what I want you to do for a chance to win.

I want you to tell me what you think is the best way to gain your prospect’s trust.  What do you need to do or say to make them believe in you?

Write at least one idea in the comments below.  I will reveal the winner and several of my strategies this Thursday, October 9, 2008.

And believe me, some of my strategies are not the typical “Listen, I’ve already helped John Smith with this problem. I can help you too.”  Good luck.

To Your Success,

Peter K.

“Contest Winner Announced”

The winner of the contest is: (drum roll please)

Ken

Ken’s winning post is as follows:

Have a credibility kit with pictures, testimonies, etc describing what services you offer and testimonies from others that you have served well. If you are a newbie and you have bought someone’s course you could still “credibility” say that you and your “team” have helped these people in your credibility kit. Give this credibility kit to EVERYONE you plan to do business with or motivated seller and tell the seller that “This is your Credibility Kit”, and tell them “that many other investors will be contacting you Mrs. Seller and would you do me a favor please? Ask them for a credibility kit and if they don’t have one–would you do yourself a favor and not do business with them.”

Also whatever you do “follow up” (from the beginning). EVERY lead I get hears from me as soon as I get their lead over the internet–even if it is just to say “I got your information and right now I am out of town or in a meeting and will call you later”—this type of follow up has helped me close so many deals and build trust.

Thank you very much for entering the contest everyone.  Ken, please contact me by clicking on the green envelope button at the top right sidebar of this page.  Once you contact me, I’ll give you some details I’ll need from you to complete your video review of your site.  Congratulations Ken!

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15 Comments on “Real Estate Scams, Subprime Mortgage Crisis, Real Estate Fraud- Where’s Has the Real Estate Industry Gone?”

  1. David Cullen |

    Trust is not automatic and should not be given simply because of what your wearing. Ideally to offer to educate clients regarding situations they are facing and providing options that will allow them freedom and mobility to resolve difficulties are the most important steps to developing a relationship that builds trust.

  2. Laura |

    Testimonials are a great way to build trust. When people see that other people recommend you and that you have helped them, they’ll likely give you more trust than otherwise.

    Laura

  3. Kellie |

    If my actions do not line up with my words you will know by the testimonies of those who use my product. If I haven’t given you more options than your realtor/banker/attorney, then my product is free.

  4. Peter- REBB Founder |

    Great comments so far. Keep ’em coming. David, Laura and Kellie, you guys are on the right track. What else can you do to help you gain that all important trust from your prospect?

    Peter K.

  5. EJ Harris |

    Well, I’m a local investor in Virginia. I think the best way to get people to trust is to be part of the community, sponsor events like School supply drives, which really don’t cost that much money just flyers or newletters and place to drop off supplies, sponsor a little league team, Toys drives, help the Red Cross with the Blood drive and if any of those events land in local paper start building yourself a credential book. A crededential book should have contain all the houses or porperties your company purchased and testimonal letters. Join the Better Business Bureau. I think the main thing is to show stability and an active role in the community

  6. Ken |

    Have a credibility kit with pictures, testimonies, etc describing what services you offer and testimonies from others that you have served well. If you are a newbie and you have bought someone’s course you could still “credibility” say that you and your “team” have helped these people in your credibility kit. Give this credibility kit to EVERYONE you plan to do business with or motivated seller and tell the seller that “This is your Credibility Kit”, and tell them “that many other investors will be contacting you Mrs. Seller and would you do me a favor please? Ask them for a credibility kit and if they don’t have one–would you do yourself a favor and not do business with them.”

    Also whatever you do “follow up” (from the beginning). EVERY lead I get hears from me as soon as I get their lead over the internet–even if it is just to say “I got your information and right now I am out of town or in a meeting and will call you later”—this type of follow up has helped me close so many deals and build trust.

  7. Kellie |

    EJ is correct, also forming affiliates, getting into social blog sites, e-zines, to promote your knowledge base is vital to building credibility and trust.
    Peter, I’m not sure how your contest is suppose to work to be perfectly honest, but that’s not why I’m sharing this. I’ve been told over and over that the reason people trust me is because I have an “honest face” and that my choices speak volumes about my integrity and “giving from my heart”. Its similar to the saying that your reputation precedes your entrance into a room. If people don’t know me then they decide on the spot if they are going to trust me based on what I’m willing to show them about who I really am. Most people have been too hurt to put themselves out there and take great precaution (too many fears) just to hold back. I’m still going to show my true self and make the highest and best choices along the way. Foolishness? Idealistic? Perhaps, but I’d rather live as though I’ve danced my entire life than to never know the feeling of being true to myself regardless of what others think. To be great is to risk being misunderstood. Enjoy your contest.
    Kellie

  8. John |

    The whole public opinion of anybody in this industry is really getting bad. I know is a realtor sometimes people just look at me like a used car salesman, not to be trusted. Building up trust with client is becoming harder and harder. That’s a real shame that a couple of bad apples can really taint the whole barrel.

  9. Peter- REBB Founder |

    Thanks for sharing your opinion John. That is exactly why I started this topic. Real estate Industry is getting a bad rap lately and we need to do everything in our power to make sure that good reputation is there.

    If I wasn’t bad enough, mass media such as TV doesn’t help since all they talk about is negative stuff. That’s what people love, right?

    Peter

  10. Robert Kim |

    After establishing rapport, I tell sellers, “This is how I pay my bills and feed my family” then show them two sets of APODs (Annual Property Operating Datasheets), one APOD is with their asking price and why it typically will not work for me and the other APOD is one with my offer showing how it will work for both of us. I believe that establishing rapport and then supporting what I say with numbers is effective as well as presenting them with a credibility kit that has testimonials in it from people whom I’ve had the privilege of being allowed to help.

  11. Patrick Henry |

    The surest way to win trust and confidence is to share membership in some organization or program with your prospect. If your prospect believes you will in some way partner with him – and assuming your posture and persona are such that he perceives you to be a worthy ally – you will have won his confidence. He will view you as one of “his people”, an insider, someone with whom he shares the same agenda. This early phase of trust is a fragile one, and it is important not to abuse this trust; if he should come to feel betrayed or taken advantage of at this time, you will lose that person’s trust irretrievably.

  12. Steve |

    Testamonials always can help along with a credibility kit, but most have already made up there mind before they’ve even seen you. Building repore is what saleman do. But a saleman is not what alot are looking for.

    Let me see, someone is looking for help and you need to build there trust. Why not give them something they’ve been looking for, for FREE! A repore builder about you, your company, and what you do, along with options they can take all in a free report or ebook. Also available on a free recorded message or 800# or thru a squeeze on your website would be a good start.

    If your on the phone, how about answering there questions and giving them good advice, showing them your true knowledge and your genuine concern to help them out of there situation. I would think that would build trust.

  13. Willy Sandal |

    If you can’t trust the professional than who do you turn to?

  14. Peter- REBB Founder |

    @Willy Sandal

    Yeah, I hear you Willy. A lot of people ask themselves that question. Don’t worry, there are really good people out there who care and who have the highest integrity possible.

    Peter

  15. mary |

    Great, thanks for posting!

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