Houston Monthly
The Art of Networking:
UTILIZING Your Network CONTACTS
— words by kim gebron :: illustration by craig amos
YOU DID IT! You’ve attended several networking functions, talked with people, exchanged information, set appointments, learned how to act, introduced people you’ve just met, and collected lots of business cards. As you attend more events, you begin to see familiar faces. Now it’s time to discuss how you can utilize the network contacts you’re developing.1. Stay in touch. It’s easy to meet someone a few times, send an email, and then lose track of that person. The primary reason for networking is to build trusted referral
partner relationships. This requires patience while nurturing the relationship.
You accomplish this by forwarding pertinent information, meeting outside of network events for coffee or lunch, and introducing this contact to others with whom there is commonality or potential business.
2. Invite new business contacts to your network and industry events. Share your circle of influence and expand their networking contacts.
3. Ask to be invited to their network and business events, ones you may not usually attend. This is a helpful way in which to learn about other groups and associations.
4. Carry their business cards with you. When you are prospecting or meeting with clients who have a need you cannot fulfill, you will have a list of immediate referrals for them.
5. Remember to send referrals and electronic introductions to your network partners. Follow up to ensure your referral partner receives them.
6. Invite your network contacts to join you on one or more of the electronic networks.
7. Follow through and complete any items you said you would during your meetings.
8. Sponsor a networking event so you can invite those you’ve met at different functions so they can meet one another.
9. Invite them to speak at a business meeting.
10. Become a client if you are able to use their services and products.
NEXT MONTH, I’ll provide a partial list of local networking organizations. Email information about your favorite groups so they will be included! Until next month, Happy Networking!
THIS MONTH’S NETWORKING TIP:
To remember a new contact, jot the date and event at which you meet on the back of their business card. Use this space for recording information about the person and commitments you made.
Kim Gebron is a Networking Queen who enjoys connecting people. She owns a merchant cash advance business and is also a professional organizer, specializing in clearing cluttered space to provide more leisure time. Networking questions can be emailed to: kim@itscooltobehip.com.
Supercharge your Real Estate sales
Legal Tender...
in a Buyer’s Market
-- words by Aaron G. Adams, Esq.
real estate, consider offering seller financing. Now you might ask “For which properties should I offer seller financing?” The answer is easy. The best properties for seller financing are properties that are owned outright, or are in need of so many repairs that a conventional lender will not finance them (fixer-uppers).
What are the advantages of seller financing?
Seller financing has many advantages for the buyer as well as the seller. The greatest advantage for the buyer is “easy financing”. Seller financing allows the buyer to circumvent the traditional mortgage process. This is especially helpful when you have a buyer who can not obtain a traditional mortgage due to a recent foreclosure. The biggest advantage for the seller in this kind of deal is the steady stream of income from monthly payments as opposed to receiving one lump sum.
How is seller financing accomplished?
Traditionally, a buyer buys a home by obtaining a mortgage from a financial institution to purchase the property. The financial institution pays the loan amount to the seller. The seller then deeds the house over to the buyer and files this document in the real property records on the county. Simultaneously, the financial institution mains a security interest in the property. The buyer then pays back the financial institution by making monthly payments. If a payment is missed, the financial institution may foreclose the mortgage and sell the house at auction. As mentioned above, seller financing does not require that the involvement of a financial institution. It is accomplished simply by the buyer making payments to the seller, who keeps the title to the property
until the buyer pays it off.
What types of agreements are used in seller financing?
The three most common types of seller financing agreements are a lease with option to buy, the contract for deed, and the wrap around mortgage. A lease with option to buy is just that. The buyer or “lessee” pays a considerable down payment and agrees to lease the home for a specific amount of time. Title of the property stays with the seller or “lessor”. Before the end of the term the lessee has the option to purchase the property. If at the end of the term the lessee does not purchase the property the seller keeps all of the payments and the lessee is left with nothing.
A “contract for deed” is very similar to a lease with option to purchase. The main difference is that the buyer is “purchasing” the property at the same time the first monthly payment is made. Usually in a “contract for deed” the seller does not transfer title until the last payment is made. A default by the buyer usually results
in the buyer becoming a renter and left with nothing.
A “wrap around mortgage” is an arrangement where the buyer makes monthly payments to the seller and the seller uses the payments to pay an existing mortgage. The buyer’s monthly payment and interest rate are usually higher than the seller’s monthly mortgage payment and interest. Therefore the seller generates profit from the interest and payment spread.
Can I draft my own seller financing documents?
You should never draft your own seller financing documents. These documents are the backbone of the transaction and are too important not to be drafted by an experienced lawyer. Forms and sample documents are easily found on the Internet. However, use the Internet at your own risk! Some Internet forms are sufficient and some are not. Do you want to risk using one of the forms that is not? When a lawyer drafts the documents, you are paying for more than the documents themselves. You are paying for advice, issue spotting, and strategy. There is a saying that goes “A lawyer who represents himself has a fool for a client.” What does that say about a non-lawyer who represents himself?
Aaron Gabriel Adams is a practicing attorney in the Houston area focusing on Business, Intellectual Property, and Real Estate Law. Need help preparing a loan package or obtaining a loan? Do you have a Legal Question? Contact him at aaronadams@aalawoffice.com or his office at 713-566-1990.
