Posts
The financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.
So ... I’ve been buying real estate.
A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.
Investors are right to be wary of the still declining markets. But fears regarding the long-term prosperity of the nation’s many sound real estate markets make no sense. These areas will indeed be setting new growth and appreciation records 5, 10 and 20 years from now.
So if you wait for the robins, spring will be over.
Over the long term, the market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet everything went up considerably over time.
Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”
I’ll follow the lead of a restaurant that opened in an empty bank building and then advertised: “Put your mouth where your money was.” Today my money and my mouth both say buy real estate!
To learn how just check out our BOOT CAMP!
Wednesday, October 29, 2008
Tuesday, October 28, 2008
Conversational Negotiating
When it comes to negotiating a deal or enticing partners to Joint Venture with you, your conversational skills will play a big part in your success.
One key to becoming a great conversationalist is to pause before replying. A short pause, of three to five seconds, is a very classy thing to do in a conversation. When you pause, you accomplish three goals simultaneously.
The Benefits of Pausing
First, you avoid running the risk of interrupting if the other person is just catching his or her breath before continuing. Second, you show the other person that you are giving careful consideration to his or her words by not jumping in with your own comments at the earliest opportunity. The third benefit of pausing is that you will actually hear the other person better. His or her words will soak into a deeper level of your mind and you will understand what he or she is saying with greater clarity. By pausing, you mark yourself as a brilliant conversationalist.
Ask Questions
Another way to become a great conversationalist is to question for clarification. Never assume that you understand what the person is saying or trying to say. Instead, ask, "How do you mean, exactly?"
This is the most powerful question I've ever learned for controlling a conversation. It is almost impossible not to answer. When you ask, "How do you mean?" the other person cannot stop himself or herself from answering more extensively. You can then follow up with other open-ended questions and keep the conversation rolling along.
Paraphrase the Speaker's Words
The third way to become a great conversationalist is to paraphrase the speaker's words in your own words. After you've nodded and smiled, you can then say, "Let me see if I've got this right. What you're saying is . . ."
Demonstrate Attentiveness
By paraphrasing the speaker's words, you demonstrate in no uncertain terms that you are genuinely paying attention and making every effort to understand his or her thoughts or feelings. And the wonderful thing is, when you practice effective listening, other people will begin to find you fascinating. They will want to be around you. They will feel relaxed and happy in your presence.
Listening Builds Trust
The reason why listening is such a powerful tool in developing the art and skill of conversation is because listening builds trust. The more you listen to another person, the more he or she trusts you and believes in you.
Listening also builds self-esteem. When you listen attentively to another person, his or her self-esteem will naturally increase.
Listening Develops Discipline
Finally, listening builds self-discipline in the listener. Because your mind can process words at 500-600 words per minute, and we can only talk at about 150 words per minute, it takes a real effort to keep your attention focused on another person?s words. If you do not practice self-discipline in conversation, your mind will wander in a hundred different directions. The more you work at paying close attention to what the other person is saying, the more self-disciplined you will become. In other words, by learning to listen well, you actually develop your own character and your own personality.
For more great ideas, check out our FREE REPORTS
One key to becoming a great conversationalist is to pause before replying. A short pause, of three to five seconds, is a very classy thing to do in a conversation. When you pause, you accomplish three goals simultaneously.
The Benefits of Pausing
First, you avoid running the risk of interrupting if the other person is just catching his or her breath before continuing. Second, you show the other person that you are giving careful consideration to his or her words by not jumping in with your own comments at the earliest opportunity. The third benefit of pausing is that you will actually hear the other person better. His or her words will soak into a deeper level of your mind and you will understand what he or she is saying with greater clarity. By pausing, you mark yourself as a brilliant conversationalist.
Ask Questions
Another way to become a great conversationalist is to question for clarification. Never assume that you understand what the person is saying or trying to say. Instead, ask, "How do you mean, exactly?"
This is the most powerful question I've ever learned for controlling a conversation. It is almost impossible not to answer. When you ask, "How do you mean?" the other person cannot stop himself or herself from answering more extensively. You can then follow up with other open-ended questions and keep the conversation rolling along.
Paraphrase the Speaker's Words
The third way to become a great conversationalist is to paraphrase the speaker's words in your own words. After you've nodded and smiled, you can then say, "Let me see if I've got this right. What you're saying is . . ."
Demonstrate Attentiveness
By paraphrasing the speaker's words, you demonstrate in no uncertain terms that you are genuinely paying attention and making every effort to understand his or her thoughts or feelings. And the wonderful thing is, when you practice effective listening, other people will begin to find you fascinating. They will want to be around you. They will feel relaxed and happy in your presence.
Listening Builds Trust
The reason why listening is such a powerful tool in developing the art and skill of conversation is because listening builds trust. The more you listen to another person, the more he or she trusts you and believes in you.
Listening also builds self-esteem. When you listen attentively to another person, his or her self-esteem will naturally increase.
Listening Develops Discipline
Finally, listening builds self-discipline in the listener. Because your mind can process words at 500-600 words per minute, and we can only talk at about 150 words per minute, it takes a real effort to keep your attention focused on another person?s words. If you do not practice self-discipline in conversation, your mind will wander in a hundred different directions. The more you work at paying close attention to what the other person is saying, the more self-disciplined you will become. In other words, by learning to listen well, you actually develop your own character and your own personality.
For more great ideas, check out our FREE REPORTS
Monday, October 27, 2008
Investing Near Universities
I often read success stories where the investor stated that what seemed to be a case of exceptionally good luck with a very profitable deal was nothing more than a case of preparation (education) meeting opportunity.
On a side note, have you ever considered sending your investment properties to college? It seems that houses, as well as people, profit from a college education. I have read several success stories talking about profitable student housing markets. Research validates this suggestion.
Housing in close proximity to four-year universities tend to hold value better than property in other parts of the same town. The rent is also higher because you can put more tenants in the same property. (There is a caution about screening the tenants carefully and requiring higher security deposits plus a first and last month's rent, but the value is definitely there.)
There are additional advantages for the real estate investor working a college town. College students tend to earn substantially more in their lifetimes than their non-college-educated counterparts. As each tenant graduates, they are prime first-time home buyers as they enter the job market. A trusted landlord who is a successful real estate investor can become a valued resource to the new home buyer, especially one who is adept in investing nationally.
Profitable deals are also found in flippers located near universities. Students owning property are often eager to unload their properties when they graduate and there is always a ready market of new students and of retiring alumni who tend to return to the town of their alma mater in goodly numbers.
Reports show many alumni return to their college town to retire due to the availability of good research libraries, art, music, plays, and other social amenities and the nostalgia that "their university" has to offer. College towns are definitely worth checking out.
I would like to thank Karyl D. for submitting his success story:
I am in the Mastery Program and have been attending Bootcamps, learning all I can in as short a time as possible. I finally got enough education under my belt to test the waters. I had been looking at a lot of properties and was honestly just too scared to do anything.
I have a wonderful realtor in Detroit who has been sending me foreclosure properties. I finally sent him several properties that I was interested in. He went to them and took pictures, then called me and said that this one was a beauty. It is located in the University district, each unit is 1200 sq ft and it was a perfect location. It was going for $39,000 I told him to offer $13,000. He said that might be a little low, but he did it.
They countered at $15K. I was thrilled, he was thrilled and I took it. It is $25,000 to rehab and the median rent in the area for 2-bedroom units is $800-$850, so it will be easy to get $750 for each unit for this large a unit. I funded it with my HELOC. I intend to rehab it with my HELOC then refinance, pull the equity and do it again. I am on my way!!!
On a side note, have you ever considered sending your investment properties to college? It seems that houses, as well as people, profit from a college education. I have read several success stories talking about profitable student housing markets. Research validates this suggestion.
Housing in close proximity to four-year universities tend to hold value better than property in other parts of the same town. The rent is also higher because you can put more tenants in the same property. (There is a caution about screening the tenants carefully and requiring higher security deposits plus a first and last month's rent, but the value is definitely there.)
There are additional advantages for the real estate investor working a college town. College students tend to earn substantially more in their lifetimes than their non-college-educated counterparts. As each tenant graduates, they are prime first-time home buyers as they enter the job market. A trusted landlord who is a successful real estate investor can become a valued resource to the new home buyer, especially one who is adept in investing nationally.
Profitable deals are also found in flippers located near universities. Students owning property are often eager to unload their properties when they graduate and there is always a ready market of new students and of retiring alumni who tend to return to the town of their alma mater in goodly numbers.
Reports show many alumni return to their college town to retire due to the availability of good research libraries, art, music, plays, and other social amenities and the nostalgia that "their university" has to offer. College towns are definitely worth checking out.
I would like to thank Karyl D. for submitting his success story:
I am in the Mastery Program and have been attending Bootcamps, learning all I can in as short a time as possible. I finally got enough education under my belt to test the waters. I had been looking at a lot of properties and was honestly just too scared to do anything.
I have a wonderful realtor in Detroit who has been sending me foreclosure properties. I finally sent him several properties that I was interested in. He went to them and took pictures, then called me and said that this one was a beauty. It is located in the University district, each unit is 1200 sq ft and it was a perfect location. It was going for $39,000 I told him to offer $13,000. He said that might be a little low, but he did it.
They countered at $15K. I was thrilled, he was thrilled and I took it. It is $25,000 to rehab and the median rent in the area for 2-bedroom units is $800-$850, so it will be easy to get $750 for each unit for this large a unit. I funded it with my HELOC. I intend to rehab it with my HELOC then refinance, pull the equity and do it again. I am on my way!!!
Wednesday, October 22, 2008
No Reason To Panic
Everywhere you turn nowadays the words "crisis!" "bailout!" "panic!" and "chaos!" flood the media when talking about our finances and economy.
We do live in uncertain times. But, the truth is, there is no reason to panic.
There are still many things you can do to guarantee that you not only keep your head above water -- but that you make and save more money than you ever have before.
Did you know that the richest people in the world make most of their money when the "economy" is bad.
The fact is ... You can learn how to increase your income, get out of debt, and achieve financial independence - even when people say that "times are tough".
We just released some new dates for our exciting Real Estate Investing Course. Attendees will learn how to get control of your money, build your own financial independence, and much more.
3 FUN, INFORMATIVE, POWERFUL DAYS WITH US … RESULTS THAT WILL LAST YOU A LIFETIME!
Q. What investment grows in any market?
A. Knowledge!
No other industry has created more millionaires than real estate. It is the single most successful method of creating wealth for countless people worldwide.....even in tough economic times!
There is absolutely NO RISK for you to attend?
ALL of our seminars and programs are backed by our 100% Satisfaction Guarantee.
We eliminate any risk so that you have everything to gain … and nothing to lose!
FOR FULL DETAILS ON THE EVENT & REGISTRATION INFO ... GO TO: http://www.mandmproperties.biz/boot-camp
We do live in uncertain times. But, the truth is, there is no reason to panic.
There are still many things you can do to guarantee that you not only keep your head above water -- but that you make and save more money than you ever have before.
Did you know that the richest people in the world make most of their money when the "economy" is bad.
The fact is ... You can learn how to increase your income, get out of debt, and achieve financial independence - even when people say that "times are tough".
We just released some new dates for our exciting Real Estate Investing Course. Attendees will learn how to get control of your money, build your own financial independence, and much more.
3 FUN, INFORMATIVE, POWERFUL DAYS WITH US … RESULTS THAT WILL LAST YOU A LIFETIME!
Q. What investment grows in any market?
A. Knowledge!
No other industry has created more millionaires than real estate. It is the single most successful method of creating wealth for countless people worldwide.....even in tough economic times!
There is absolutely NO RISK for you to attend?
ALL of our seminars and programs are backed by our 100% Satisfaction Guarantee.
We eliminate any risk so that you have everything to gain … and nothing to lose!
FOR FULL DETAILS ON THE EVENT & REGISTRATION INFO ... GO TO: http://www.mandmproperties.biz/boot-camp
Tuesday, October 21, 2008
Why The Rich Get Richer
Over 90% of the population are are trapped in the rat race.
One of the reasons the rich get richer, the poor get poorer, and the middle class struggle in debt is because the subject of money is taught at home, not at school.
In my last post I talked about following the herd and the dangers related. The primary reason people seek job security is because that is what they are taught to seek at home, and at school...then, with accumulated debt loads, they clinched tighter to their job or professional security just to pay the bills.
The rich don't work for money. The poor and middle class work for money. One of the most popular topics in our 3 Day Real Estate Investor's Boot Camp is how the rich have money work for them!
As Robert Kiyosaki explains ... the rich buys assets. The poor have expenses. The middle class buy liabilities they think are assets!
"...A job is really a short-term solution to a long-term problem..."
One of the reasons the rich get richer, the poor get poorer, and the middle class struggle in debt is because the subject of money is taught at home, not at school.
In my last post I talked about following the herd and the dangers related. The primary reason people seek job security is because that is what they are taught to seek at home, and at school...then, with accumulated debt loads, they clinched tighter to their job or professional security just to pay the bills.
The rich don't work for money. The poor and middle class work for money. One of the most popular topics in our 3 Day Real Estate Investor's Boot Camp is how the rich have money work for them!
As Robert Kiyosaki explains ... the rich buys assets. The poor have expenses. The middle class buy liabilities they think are assets!
"...A job is really a short-term solution to a long-term problem..."
Monday, October 20, 2008
Don't Follow The HERD!
We all know the motto - BUY LOW & SELL HIGH
Yet, when the going gets tough (a.k.a. prices are lowest) everyone is scared to buy!
Then when the markets go up and people buy high .. they wonder why other people got rich and they didn't.
Yes, in these CRAZY economic times 90% + people are following the herd, staying scared, and doing NOTHING but wait and see.
The other 10% are taking action and building the foundation for a fortune of money to be made.
The nations economy is in turmoil with failed mortgages across the country. People are worried about the future and how their income will be affected. But now is not the time to hide and wait for the financial storm to pass. This is the time when smart investors make their money. There are tremendous opportunities all around.
For more details visit our website at: www.mandmproperties.biz
Yet, when the going gets tough (a.k.a. prices are lowest) everyone is scared to buy!
Then when the markets go up and people buy high .. they wonder why other people got rich and they didn't.
Yes, in these CRAZY economic times 90% + people are following the herd, staying scared, and doing NOTHING but wait and see.
The other 10% are taking action and building the foundation for a fortune of money to be made.
The nations economy is in turmoil with failed mortgages across the country. People are worried about the future and how their income will be affected. But now is not the time to hide and wait for the financial storm to pass. This is the time when smart investors make their money. There are tremendous opportunities all around.
For more details visit our website at: www.mandmproperties.biz
Friday, October 17, 2008
Where To Invest
Cities Where Your Dollar Goes Furthest
Yesterday there was an article in the Daily Real Estate News about a recent study to determine where you get the most value for your real estate investment dollar.
Housing, in particular, has remained most affordable in the South and the Midwest. That’s because of less stringent building, an abundance of land and growing populations in the South, says Daniel McCue, a research analyst at Harvard’s Joint Center for Housing Studies.
To determine the cities that offer the best quality of life for the least amount of money, Forbes magazine calculated the ratios between a city’s median home price and its median household income. It also factored in projected job growth. And it compared median income to Moody’s Economy.com’s cost of living index.
Here are the 10 cities that it found to offer the best value, and the cities that it believes offers the worst value.
Cities Where Residents Get the Most for Their Money
Cities Where Residents Get the Least for Their Money
If you have questions about the article or you would like more info about Philadelphia projects we can put you in touch with, just send us an email: Click Here To Email Us!
Go Back to our main website: www.mandmproperties.biz
Yesterday there was an article in the Daily Real Estate News about a recent study to determine where you get the most value for your real estate investment dollar.
Housing, in particular, has remained most affordable in the South and the Midwest. That’s because of less stringent building, an abundance of land and growing populations in the South, says Daniel McCue, a research analyst at Harvard’s Joint Center for Housing Studies.
To determine the cities that offer the best quality of life for the least amount of money, Forbes magazine calculated the ratios between a city’s median home price and its median household income. It also factored in projected job growth. And it compared median income to Moody’s Economy.com’s cost of living index.
Here are the 10 cities that it found to offer the best value, and the cities that it believes offers the worst value.
Cities Where Residents Get the Most for Their Money
- Austin, Texas
- San Antonio, Texas
- Indianapolis, Ind.
- Houston, Texas
- Charlotte, N.C.
- Columbus, Ohio
- Dallas
- Minneapolis/St. Paul
- Denver
- Portland, Ore.
Cities Where Residents Get the Least for Their Money
- Los Angeles
- Providence, R.I.
- New Orleans
- Philadelphia
- Cleveland
- New York
- Milwaukee, Wisc.
- St. Louis, Mo.
- Washington, D.C.
- Sacramento, Calif.
If you have questions about the article or you would like more info about Philadelphia projects we can put you in touch with, just send us an email: Click Here To Email Us!
Go Back to our main website: www.mandmproperties.biz
Thursday, October 16, 2008
Part-Time Job ... In YOURSELF
If you find that you are interested in finding out how to make money in real estate ... but you don't know how, or if you feel that you have obstacles blocking your path that you can't overcome, I suggest you give yourself a part-time job.
This 'part-time' job is your time that you have completely dedicated to the acquisition of property for the purposes of attaining financial freedom.
You need to schedule yourself completely out of commission for whatever period of time you choose - then stick to it. Remember that the more you put into it, the more you'll receive.
Go Back to our main website: www.mandmproperties.biz
This 'part-time' job is your time that you have completely dedicated to the acquisition of property for the purposes of attaining financial freedom.
You need to schedule yourself completely out of commission for whatever period of time you choose - then stick to it. Remember that the more you put into it, the more you'll receive.
Go Back to our main website: www.mandmproperties.biz
Wednesday, October 15, 2008
Live Your Dreams
There is a common misnomer circulating that is often quoted as “Do what you love and the money will follow.” I would say that is certainly possible but it is anything but a cause and effect relationship. In his research for his first book, Live Your Dreams: Doctor's Orders" Dr. Samuel Gerstein looked for and found over two hundred people who were living their dreams at work. They all loved what they were doing and spoke enthusiastically about the virtues of their Dream Careers.
Yet there was a very wide range of incomes among all of the people he interviewed.
It wasn't only because of the different income levels inherent in different professions.
There were disparities among people who were essentially doing the same thing. Over the few years he followed them, he witnessed people increase their income levels even though they were still in the same field by applying certain principles.
The good news is that anyone can learn these principles.
One of the main principles can be summed up in the following quote:
“To get what you want, help other people get what they want.” Zig Ziglar
Zig Ziglar is a sales expert and motivational speaker. No truer statement could be spoken about making money. If you want to earn more money, think of ways to serve more people. First you have to define a target market. A target market is a group of people who are interested in what you are selling. They need and want what you have to offer.
One marketing guru was once asked what he thought was the most important thing a restaurant owner would need to open his business. The inquirer guessed, “A good business plan? An exciting advertising campaign? A welcoming interior design?” The marketing guru just shook his head at all of these suggestions and calmly replied, “Hungry people.” A tad brusque but he makes a good point.
In real estate there are some investors who just want a good deal. However, in order to determine their exit strategy they must know their target market (eg. who they are intending to sell/rent/lease the property to) If people are hungry for vegetarian pasta dishes don't offer them corned beef sandwiches. Conversely, if they want a steak, a hot dog may not cut the mustard.
Many people freeze when it comes time to selling themselves. By focusing on a target market you no longer have to think that way. You are unique. Instead of selling someone on a product or service, think of yourself as being a matchmaker.
You are looking for the best match between your Dream - I am assuming it is real estate deals that you are offering - and what people want - your target market.
Feeding your Target Market:
After you have defined your target market and what they are hungry for, find out where they look for their deals (real estate investments).
On the other hand, when you see that what you have to offer does not match what the potential client wants or needs you will not want to offer it to them. It won't feel good and you probably won't do a great job for them. Remember your Dream Career comes from your heart. If you can't put your heart into something refer them onto to someone else who will make a better match for what they want.
They will remember your generosity and will probably return the favor when they encounter a hungry person who desires what you offer.
That is also one of the MANY wonderful things about the real estate investment world. There are so many professionals of different specialties, and so many deals that you don't have to kill your competitors for the sale (market share). You can help others by sending them referrals, and more often than not they will reciprocate. In the end ... everyone wins !!!
You don't have to sell anyone anything – just be a good matchmaker and give people what they are hungry for.
Go Back to our main website: www.mandmproperties.biz
Yet there was a very wide range of incomes among all of the people he interviewed.
It wasn't only because of the different income levels inherent in different professions.
There were disparities among people who were essentially doing the same thing. Over the few years he followed them, he witnessed people increase their income levels even though they were still in the same field by applying certain principles.
The good news is that anyone can learn these principles.
One of the main principles can be summed up in the following quote:
“To get what you want, help other people get what they want.” Zig Ziglar
Zig Ziglar is a sales expert and motivational speaker. No truer statement could be spoken about making money. If you want to earn more money, think of ways to serve more people. First you have to define a target market. A target market is a group of people who are interested in what you are selling. They need and want what you have to offer.
One marketing guru was once asked what he thought was the most important thing a restaurant owner would need to open his business. The inquirer guessed, “A good business plan? An exciting advertising campaign? A welcoming interior design?” The marketing guru just shook his head at all of these suggestions and calmly replied, “Hungry people.” A tad brusque but he makes a good point.
In real estate there are some investors who just want a good deal. However, in order to determine their exit strategy they must know their target market (eg. who they are intending to sell/rent/lease the property to) If people are hungry for vegetarian pasta dishes don't offer them corned beef sandwiches. Conversely, if they want a steak, a hot dog may not cut the mustard.
Many people freeze when it comes time to selling themselves. By focusing on a target market you no longer have to think that way. You are unique. Instead of selling someone on a product or service, think of yourself as being a matchmaker.
You are looking for the best match between your Dream - I am assuming it is real estate deals that you are offering - and what people want - your target market.
Feeding your Target Market:
After you have defined your target market and what they are hungry for, find out where they look for their deals (real estate investments).
On the other hand, when you see that what you have to offer does not match what the potential client wants or needs you will not want to offer it to them. It won't feel good and you probably won't do a great job for them. Remember your Dream Career comes from your heart. If you can't put your heart into something refer them onto to someone else who will make a better match for what they want.
They will remember your generosity and will probably return the favor when they encounter a hungry person who desires what you offer.
That is also one of the MANY wonderful things about the real estate investment world. There are so many professionals of different specialties, and so many deals that you don't have to kill your competitors for the sale (market share). You can help others by sending them referrals, and more often than not they will reciprocate. In the end ... everyone wins !!!
You don't have to sell anyone anything – just be a good matchmaker and give people what they are hungry for.
Go Back to our main website: www.mandmproperties.biz
Monday, October 13, 2008
CHANGING TIMES - OUR CURRENT ECONOMY
My good friend Jodi McDonald offers the following insight on the changing times:
Change has a considerable psychological impact on the human mind. To the fearful it is threatening because it means that things may get worse. To the hopeful it is encouraging because things may get better. To the confident it is inspiring because the challenge exists to make things better. King Whitney Jr.
Everything in a mortal, physical, energetic reality is constantly changing. Resistance is futile, and yet, people fight against change every day. We love cozying up in our comfort zones, and if anyone tells us it is time to move on, we growl. Even when change is inevitable…there are those who go down fighting. Why? The one who suffers the most is the one who resists.
When we are confronted with a challenge, our method of response is the most powerful tool we have. How are we going to react?
Those who come from fear fight the hardest…bringing up one reason after another as to why the change is just too scary to acknowledge. Problem is, it is going to happen anyway. All this fear does is put the one feeling it in an even worse situation. The problem feels like it grows and grows, and there is no clear exit. It’s all about survival. We feel overwhelmed and victimized. We cannot reason with fear, and we cannot find a solution while engulfed in it. Fear focuses solely on the problem. Any time we are coming from the posture of fear, we need to check our beliefs, re-evaluating what it is we are so afraid of and why. People operating from fear are asking questions like: “Why is this happening?” “What can I do to stop this?” “When will this be over?” ”Where can I hide?”
Other people respond to change with hope. These people are feeling alone and abandoned by life, so the change is welcomed as a possible solution to an already bad predicament. They “hope” things will get better. While this is certainly a better position than fear, it still carries a shadow of doubt. Any time we hope for something, we are automatically allowing for the possibility of failure. It may or may not work out. When acting out of hope, we are still feeling very vulnerable and powerless to forces outside ourselves. If the change works in our favor, we are happy; but, if it doesn’t, we may find ourselves moving closer and closer to fear. While this reaction is not as miserable as fear, it leaves far too much room for doubt to step in as the one in control. People living from this place ask: “Will this make it better?” “Is there a down side?” “Who’s going to help me?”
Now, let’s take a look at that third possible response…inspiration! Those who look at change as inspiration are joyfully responding with complete acceptance. Sure, they might feel a bit of hesitation, but it is not running the show. These people welcome change as an opportunity to make things better than ever and they are in complete control. This attitude says, “I’m in charge!” Those who come from inspiration look at a challenge as something that will benefit them. They know, in the end, they will be left in a better place than where they were found. Just like everyone else, they aren’t able to foretell what “might” happen, but they aren’t looking at consequences. These people focus solely on solutions. The instant a change is evident, they start to map out a plan. Because they never feel victimized…they aren’t! This is a powerful place, because those who move from this state of being are confident, peaceful and fully responsible. They are in absolute acceptance, focused only on how the change will benefit and prosper them. Inspired people ask: “What can I do to help?” “What new opportunities are in this?” “How can I find the best and quickest solutions?”
Those of us who are choosing to be cheerleaders in a time of great change should be rejoicing! For the first time in ages, we have a willing audience ready to hear what we have to say. The most important thing we can provide is passion. In this time in our history, it does not serve us to calmly claim, “I have a good idea.” This is the time we should be standing on rooftops, shouting, “Follow me! I know the way!!” Tough times require inspired leaders to take charge and offer new visions. These leaders must come from a calmness and confidence that leaves no room for doubt and fear. We have been talking the talk for a long time. Now, we must walk the walk.
Change has a considerable psychological impact on the human mind. To the fearful it is threatening because it means that things may get worse. To the hopeful it is encouraging because things may get better. To the confident it is inspiring because the challenge exists to make things better. King Whitney Jr.
Everything in a mortal, physical, energetic reality is constantly changing. Resistance is futile, and yet, people fight against change every day. We love cozying up in our comfort zones, and if anyone tells us it is time to move on, we growl. Even when change is inevitable…there are those who go down fighting. Why? The one who suffers the most is the one who resists.
When we are confronted with a challenge, our method of response is the most powerful tool we have. How are we going to react?
Those who come from fear fight the hardest…bringing up one reason after another as to why the change is just too scary to acknowledge. Problem is, it is going to happen anyway. All this fear does is put the one feeling it in an even worse situation. The problem feels like it grows and grows, and there is no clear exit. It’s all about survival. We feel overwhelmed and victimized. We cannot reason with fear, and we cannot find a solution while engulfed in it. Fear focuses solely on the problem. Any time we are coming from the posture of fear, we need to check our beliefs, re-evaluating what it is we are so afraid of and why. People operating from fear are asking questions like: “Why is this happening?” “What can I do to stop this?” “When will this be over?” ”Where can I hide?”
Other people respond to change with hope. These people are feeling alone and abandoned by life, so the change is welcomed as a possible solution to an already bad predicament. They “hope” things will get better. While this is certainly a better position than fear, it still carries a shadow of doubt. Any time we hope for something, we are automatically allowing for the possibility of failure. It may or may not work out. When acting out of hope, we are still feeling very vulnerable and powerless to forces outside ourselves. If the change works in our favor, we are happy; but, if it doesn’t, we may find ourselves moving closer and closer to fear. While this reaction is not as miserable as fear, it leaves far too much room for doubt to step in as the one in control. People living from this place ask: “Will this make it better?” “Is there a down side?” “Who’s going to help me?”
Now, let’s take a look at that third possible response…inspiration! Those who look at change as inspiration are joyfully responding with complete acceptance. Sure, they might feel a bit of hesitation, but it is not running the show. These people welcome change as an opportunity to make things better than ever and they are in complete control. This attitude says, “I’m in charge!” Those who come from inspiration look at a challenge as something that will benefit them. They know, in the end, they will be left in a better place than where they were found. Just like everyone else, they aren’t able to foretell what “might” happen, but they aren’t looking at consequences. These people focus solely on solutions. The instant a change is evident, they start to map out a plan. Because they never feel victimized…they aren’t! This is a powerful place, because those who move from this state of being are confident, peaceful and fully responsible. They are in absolute acceptance, focused only on how the change will benefit and prosper them. Inspired people ask: “What can I do to help?” “What new opportunities are in this?” “How can I find the best and quickest solutions?”
Those of us who are choosing to be cheerleaders in a time of great change should be rejoicing! For the first time in ages, we have a willing audience ready to hear what we have to say. The most important thing we can provide is passion. In this time in our history, it does not serve us to calmly claim, “I have a good idea.” This is the time we should be standing on rooftops, shouting, “Follow me! I know the way!!” Tough times require inspired leaders to take charge and offer new visions. These leaders must come from a calmness and confidence that leaves no room for doubt and fear. We have been talking the talk for a long time. Now, we must walk the walk.
Friday, October 10, 2008
What Is A “Market”?
I laugh when people ask me what I do for a living. I say I’m a real estate investor who buys real estate at a discount throughout the U.S.A, and helps investors earn triple digit ROI on their real estate investments. The common instant response is “wow - the U.S. market is pretty bad right now, isn’t it?”
Last time I checked, the U.S.A. was pretty darn big. In fact, the same can be said for any of the States within the U.S.A. Top of the hitlist is usually Florida. Everywhere I turn, people say Florida is too risky, or the market is still tanking down there.
Yes, there are some areas in Florida that could be risky for an investor, IF the investor doesn’t have the budget to carry the costs of a vacant property for a longer than usual period of time. That said, even within Florida, there are people making money through real estate investments. How - they know their market.
In grade 10 economics, I learned that a market is a place where buyers and sellers come together. In real estate, a market is not just a product of “where” the property sits on the map. A market is affected by:
- The type of property you are buying/selling
- The type of person you are intending to buy from/sell to
- The location of the property
just to name a few criteria.
Even with an alleged recession looming on the horizon, and even in a state (Florida) which is known for high vacancies, high property taxes, and high insurance costs, there are certain “Markets” where you can make money.
There are still plenty of people with plenty of money, who will pay a premium to live in a prestigious address or on the water. My friend Robert Shemin (who happens to be the author of the latest New York Times Bestseller “How Come That Idiot’s Rich And I’m Not”) found a tremendous deal on South Beach in Florida.
He found a motivated a seller. The seller wasn’t motivated because of financial hardship. He was motivated because he lived oversees, and hear that the market in Florida was going down. Robert called the seller (in response to a newspaper ad) and quickly negotiated a deal to make the seller feel more at ease. Robert would lease-option the luxury condo from him at a fair price (actually less than the current fair market value a the time of the deal) and have the option to buy the property at a specified future date. By the time that date comes to exercise the purchase option, the unit should be worth more than double what Robert must pay to buy it out. The seller is happy because he no longer worries about losing value and he got what he wanted for the unit (at the time of the deal).
Everyone’s happy, and Robert will probably make over 1 million dollars on that unit alone! Way to go Robert.
When you consider a market, don’t consider the city or the state. Consider who are you selling to, what can they afford to pay, and what will they pay to have. If there is a property to meet that criteria, it might not be a bad investment (all due diligence considered of course).
For more visit our main website: www.mandmproperties.biz
Thursday, October 9, 2008
How To Negotiate
Too often, people believe that negotiating is about ‘crushing’ the opponent. They enter into a negotiation as if it were a fight. They think about how to fight dirty, pull the ace out from their sleeve, and make the opponent eat their words. If someone is not suited to fighting dirty, gathering the ‘dirt’ on their opponent, or making people feel bad, they will typically tell you that they are not a good negotiator.
One of the best courses I ever took in my real estate investing career was a course in negotiation. As a real estate investor - this is priceless. Let me first make it very clear that negotiating is not about winning. It is about reaching an amicable solution, where both sides feel satisfied with what they got out of the deal. A good negotiator can get what he/she wants, but understands the art to getting what he/she wants is understanding the other party, in order to ultimately make the other party feel satisfied with what they can get out of the deal for themselves. It is very similar to selling. A bad salesperson immediately boasts the exciting features of their product or service. They won’t sell a thing until they know what the prospect WANTS, NEEDS, and objects to.
There is an old adage that says “first seek to understand - then seek to be understood“. In negotiations you never want to give up more than you have to. It stands to reason that you won’t know the minimum that you have to give up, if you don’t begin with questions.
Questions that are important in any real estate negotiation are:
- Why are you selling?
- What did you pay?
- What is it worth?
- What will you take? (or even better - what do you need out of the deal to move on?)
- What if you don’t sell?
To me, Negotiating is the art of asking questions.
- Listen
- Seek to understand and solve their problem
- Be direct, humble, and honest
- It’s not about the money it’s about helping the other side. Otherwise they sense you’re only about the money, and they become defensive.
To disarm people:
- Make them RELAX
- Build rapport
- Begin by showing them I understand
Another secret (to helping anybody understand anything that you want to convey to them) is that the mind thinks in images … not words. Furthermore, decisions are evaluated on facts, but decided on emotions. Try using analogies that project into the future and make them envision that outcome.
One of the keys to Donald Trumps early success was of course Trump Tower on 5th Avenue in New York. Donald realized the value of offering great views from the windows of the units in his building. In a city where builders build up and up, the only way to secure the value of his building, was to buy the air rights to the building next door to the site where he built Trump Tower. He had his artist draw a beautiful rendering of Trump Tower (as we see it today), and he also created a disgusting rendering of an absolute horrid looking building. Donald approached the owner of Tiffany’s (next door) and said “If you don’t sell me the air rights over your store, I’ll build this horrid looking building. If you do sell me the air rights, I’ll build this gorgeous building next to your upscale store”.
Donald Trump plays hardball, and I’m not suggesting that blackmail is the best policy. In fact I believe that Donald could have achieved the same result with the same pictures, but in a more subtle and conversational manner that would have left the owner of Tiffany’s feeling good about himself.
But what Donald Trump did understand was:
- The mind thinks in images, and his vivid drawings painted the picture black and white for his opponent
- Decisions are based on emotions
- He knew his opponent ran an upscale jewelry boutique and preferred an upscale building next door
Don’t forget the Law of Adaptation:
- The other person will adapt to the state of mind you are in.
- If you are in a relaxed mood, they will be in a relaxed mood.
- If you are rushed, abrupt, and too serious, they will be the same.
FINALLY, here are some more tips for negotiating a real estate deal:
- Ask for everything, expecting to get it.
- All negotiations should take place in the kitchen (the most emotional for sellers).
- The first person to mention numbers/amounts loses.
- (Always turn the conversation back to their feelings, emotions, needs, expectations, etc rather than respond with a number)
- Never be afraid of silence - it always works in your favor.
- Whenever they state their price, always ask CAN YOU DO ANY BETTER and remain silent.
- Ask WHY/HOW they came to the price they did.
(Rather than simply go back with a different number, this makes them feel like you care about their thought process, and it will actually help you understand their thought process.
Good Luck!
For more visit our main website: www.mandmproperties.biz
Wednesday, October 8, 2008
Real Estate Deals Exist In Strong Markets Too!
In Toronto, Ontario, Canada, real estate investors don’t feel unlike their counterparts in Manhattan, N.Y. The market is so high, that there rarely seems to be any type of a motivated seller. Even if the seller is motivated, they don’t have to give away their property. They simply plunk a sign on the lawn and it sells itself. But the suburbs can be a whole different story. Sometimes the most unbelievable real estate deals can be found in areas less than a one hour drive from these strong markets.
I found an unbelievable opportunity (in Ontario, Canada) not too long ago that has enabled me to earn slightly more than 250% ROI! - 271% to be exact.
This is not something that I am being paid to promote or receiving a finders fee for mentioning. But I would be remiss if I didn’t mention this to our loyal blog readers. This opportunity is something we have tried with our own personal money and a company called EZ Real Estate Solutions has taken the process and developed a program that actually works.
The folks at ezRealEstateSolutions have developed a brilliant system, where they are able to duplicate this process for other investors. They find properties from motivated sellers (no secret here … but they do it well), then they find tenants for you to lease-option the property to (thus avoiding any landording, property management headaches, and property taxes, etc), and enable the investor earn a triple digit ROI, while at the same time, processing the tenant/lease applications, running the credit checks and background checks, and putting the deal together for you.
The first deal we did with EZ Real Estate Solutions actually generated a 271% ROI for us personally. They did all of the work, and the buy-in investment (in our case) was as low as $10K - $15K. Here is another great feature of their program - you know your projected ROI from the beginning of the deal, or you can opt out and wait for the next deal without penalty. Each deal is based on a per property basis, with contingency clauses to protect you (the investor).
It just goes to show you that if you think out of the box, and develop a niche strategy, money can be made in real estate almost anywhere. There are hundreds of ways to make money as a real estate investor. If you are finding it frustrating, then perhaps you are not focusing on the method that is right for you, or the method that works best in the area you are working in. Your frustrations might also stem from doing the same thing as everyone else, rather than developing a niche (doing something slightly different) and focusing on that niche!
This is a great way for a newbie real estate investor, or someone who is feeling a bit frustrated, to work with a company who will hold your hand, walk you through the deal, teach you along the way, and help you avoid the pitfalls. Talk about real estate investing without leaving your home!
If you want to find out more about their program, send me a quick EMAIL and I’ll forward you their contact info:
Good luck and don’t quit!
For more visit our main website: www.mandmproperties.biz
Tuesday, October 7, 2008
14 Markets With Nowhere To Go But Up
I thought you would find this interesting.
I often find myself talking to people about investing in real estate, only to learn that an investor will stay away from a particular area, just because it hasn’t bottomed out yet. They say things like “I’m just not sure it won’t still go down a bit further.”
I’m not sure if their perception stems from greed, but I am nonetheless intrigued by their way of thinking (or lackthereof). What I mean is, if you can buy a particular property in a particular area at 30 cents on the dollar (that’s a 70% discount), and that particular market might still go down to 25 cents on the dollar, are we just splitting hairs? If I offered you that new Porsche or Mercedes-Benz you would like to buy at 70% off the retail price, would you say reply by saying “I’m just not sure, what if I can 75% off from you if I wait a bit longer?” I don’t think so. If you can buy a $100,000 Porsche for $30,000, and you know it will (someday) be worth $100,000 again (or more), you would grab it instantly. Heck, even if it only went back up to $72,000 in your lifetime, you still made a GREAT deal!
For those who are only looking for markets that have bottomed out, I normally would stay away from predictions because NOBODY has a crystal ball. Furthermore, I caution you that the following list does NOT necessarily represent my personal hunches or predictions either.
But there could be some credibility to the information below.
Why do I feel this information is credible?
This is from a leading mortgage INSURANCE company - PMI Mortgage Insurance Co.
Insurance companies are extremely good at evaluating risk.
Rarely do insurance companies lose money by miscalculating risk. Therefore, this information is quite interesting to me and I thought perhaps for you as well.
PMI Mortgage Insurance Co., has ranked the nations 50 largest metropolitan statistical areas according to the risk that home prices will decline further during the next two years.
The highest risk is in areas where home price growth was the greatest during the housing boom. The lowest risk of prices declining further is in areas where affordability has increased.
PMI identifies these areas as having a less than 1 percent risk of home prices declining further:
- Milwaukee-Waukesha-West Allis, Wis.
- Cleveland-Elyria-Mentor, Ohio
- Austin-Round Rock, Texas
- Denver-Aurora, Colo.
- Charlotte-Gastonia-Concord, N.C.-S.C.
- Kansas City,Mo.-Kan.
- Columbus, Ohio
- Cincinnati-Middletown, Ohio-Ky.-Ind.>
- Indianapolis-Carmel, Ind.
- San Antonio, Texas
- Houston-Sugar Land-Baytown, Texas
- Pittsburgh, Pa.
- Dallas-Plano-Irving, Texas
- Fort Worth-Arlington, Texas
If you are interested, you can read the whole list of metro areas ranked on the risk index.
Source: PMI Mortgage Insurance Co. (07/01/2008)
For more visit our main website: www.mandmproperties.biz
Monday, October 6, 2008
IN TIMES OF A RECESSION
It is important for you to understand what’s causing the situation as you may even be part of the problem and don’t even know it.
It’s not your fault that the United States is in a recession - we’ve all heard about the adjustable rate mortgage crisis, the downsizing industries, etc. However, you may be contributing to the ‘current’ situation because the economy is in an downward spiral right now. Let’s examine how this Economic Downward Spiral works and how you may be contributing to it.
When I was kid, and we were going through a recession, I remember my father (an accountant) once told me that if I save my money, I have nothing to fear in a recession. If I have little savings and panic in a recession, that is where the problems come into effect. The problem is, most people don’t save FOR a recession - they save IN a recessions. When people fear a recession, most people tend to stop spending. This is not good for the economy because we are all dependent on each other.
I don’t suggest that you go out and buy new toys, because this can get you into trouble. When times are tough, people start cutting back on things that are nonessential, such as eating at high-end restaurants, going to amusement parks, getting pedicures, training, purchasing new vehicles, etc. You get the idea.
All the people who are supplying these items are making far less money and therefore can’t afford to buy the products and services they were used to buying either. Any products or services that other people would have bought are now cutting into the product or service provider’s income, and now these suppliers have less money to spend and thus will have to cut back.
Notice the trend. This becomes a vicious circle and will continue to keep going in this direction UNTIL someone in this chain does something different and breaks the downward spiral. If you have been spending less money, then most likely it’s because people aren’t buying your products or services, your hours at work have been reduced, or maybe you’ve been downsized!
As you can see, you’re actually feeding the problem. The only way out of it is to get the spending moving. But it’s about spending your money the smart way that will produce higher returns for you, so that you can start buying the products and services you’re used to buying again, and the ones you have wanted to buy but couldn’t afford. You must do something different from what you’ve done before.
Obviously what has gotten us to this point isn’t working. If you continue to do the same things you’ve been doing, you will continue to get the same results you’ve been getting.
For more visit our main website: www.mandmproperties.biz
Friday, October 3, 2008
MANAGE YOUR TIME
In a world with more automation - more electronic devices to manage our time, communication, and productivity than we have ever had before, lack of time continues to develop as an increasing problem for many.
An expert real estate investor once told me that there are so many nitty gritty details that we naturally want to micro-manage, that if we don’t manage our time, our time will manage us.
I believe that we are guilty of getting caught up in the ‘herd’, but any of us can choose to manage our time more effectively.
My friend Chris Widener of Time Mastery offers the following advice:
- What you measure gets managed - inventory where your time and focus is currently being spent.
- Document exactly what you value, what you consider priority, and specifically what your goal is (are).
- Outline the most effective steps to help you reach your goal(s).
- Focus only on your goals, and let the rest get taken care of - THEY ALWAYS DO!
- Learn to say “NO” to things that are not part of your priorities, that will move you toward your goals.
For more visit our main website: www.mandmproperties.biz
Thursday, October 2, 2008
FEAR OF SUCCESS
Stand up to the monsters that are holding back your success.
The first monster is FEAR.
It is simply not the done thing today to name our fears and deal with them now is it? All of us are afraid of the unknown, but instead of telling the fear like it is, we hide and blame others or say that something is impossible to do. A good way to conquer fear is to ask yourself what the worst thing that could happen is. Generally, the worst case scenario really isn’t that bad.
The second monster is CONTROL.
Many of us are in roles in which we are expected to take control of a situation - parent, career, teacher, youth leader, manager, business owner, whatever? Effective leadership today however requires people to give up control and share power with those who have been denied it in the past. A great leader does not control people to do things. A great leader teaches and inspires people to want to do things with care, focus, and determination.
The third monster is CHANGE.
Change, though inevitable, scares us all. We fear change. We are always more comfortable with the status quo. If nothing ever changed, life would get very boring for most people. Try to look forward to change, with confidence and excitement.
Stand up to the monsters that are holding back your success.
For more visit our main website: www.mandmproperties.biz
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