Posts
My colleague Nick Ikonomou and I share some common beliefs about the traits which are found in virtually every successful person - especially in real estate investing. Nick shared them with his friends, and I am now doing the same.
1. They are willing to learn. The greatest learners become the best teachers. Never ending improvement, as the Kaizen principle insists, should be an individual’s primary goal in life. The only failure in life is the failure to participate. There are no right or wrong ways of doing things, each providing a result that can be assessed and worked on from the learning that the outcome provides. This perfectly fits in with the following success factor.
2. They take action. I have never seen anyone being successful by doing nothing. By default, doing something has to be a move forward. Doing a lot means that the law of averages will ensure that success falls your way. 95% of the population “can’t be bothered”. To jump into the 5% of the population who are successful isn’t hard. It’s just a genuine decision to do something and persevere. Successful people work on improving their time management by learning how time works and what it means to you.
3. They mix with the right people. You can mix with the right people and you can mix with wrong people. The choice is yours. You either fall into those groups or you seek them. Because successful people don’t gloat because of the Australian tall poppy syndrome, you need to do your homework and ask people about their success. They are more than willing to tell you because if they initiated the conversation, that might have been construed as gloating. Look for a business coach and/or a mentor. Surround yourself with the best accountants and lawyers.
4. They are great networkers. Successful people go out of their way and meet as many people as they can because they know that the more people they know, the more opportunities come their way. Staying in your business or at home most of the time produces little results.
5. They have a dream. These people are the greatest dreamers. They have strong beliefs that one day they will achieve what seems impossible to most. The law of attraction means that you shall receive what you crave for if the craving feeds itself with all the other attributes of success.
6. They don’t allow dream takers interfere with their dreams. The most dangerous people in your life can also be the people you hold most dear to yourself. These can be some family members, friends, neighbours and business colleagues. Respect the opinions of those who are successful in their own right. Otherwise, you will receive pretty much the same as what those dream takers are experiencing. Most of all, respect your own intuition. Most of the time it’s the right decision for you anyway. Remember, why engage in other people’s situations when yours is different. You have different expectations, experiences, financial and personal needs. Why live it through other people’s lives? It’s one thing to have a dream, but to stick to it is the most important part of achieving the dream. It is said that the journey is far more exciting than the final achievement, so, choose to have an exciting life.
7. They have integrity. Have you seen people having a go and temporarily have a hiccup? Well, you can lose everything and rebound twice as fast if you maintain your integrity. Once you lose your integrity, it’s over. Practice the integrity that you wish other people to treat you with. Set an example rather than stoop to the behavior and reactions that you are not impressed with.
8. They are great communicators. The best tool to master is to have great communication skills. Honest, straight forward communication totally outweighs fancy use of the language which also can have another name for it. Study personality profiles and the way people process information and the results of improved communication will reap you many rewards over and over with a win/win outcome in most cases.
9. They are willing to share their knowledge. The best way to remember the best parts of your success are to verbalise them or write them down. Share it with those who ask.
10. They have a balanced life. Working too hard in any one area creates imbalance. Work out what you like the most and bring them into your life as you go. There are many tools available to assess the “perfect you”.
As part of the M&M Properties community we can help you on many of these points.
Our exciting boot-camp series will ensure you tackle points 1 and 2 above.
Friday, November 21, 2008
Wednesday, November 19, 2008
Markets likely to rebound
The Urban Land Institute recently asked 700 real estate professionals to name the best (and worst) places to invest in commercial real estate in the coming year. Those surveyed included private developers, Realtors and Real Estate Investment Trust executives. Their answers also apply to the residential market, since the single-family-home sector typically follows the economy.
The best cities in which to invest are those that:
- Are considered gateways to international investment
- Have vital down-towns where people can get around without cars
- Don't have an oversupply of condos or office space
These traits landed Seattle the No. 1 spot on the list. No city scored above a 6.15 on a scale of one to nine (one being an abysmal place to invest and nine being excellent). Seattle is "a diversified market, has a good base of business and is becoming a 24-hour city," says Stephen Blank, senior resident fellow, finance, of the Urban Land Institute. "It's going to be in a good position to come back."
Although the city is suffering from the loss of Washington Mutual and the downsizing of Starbucks, Boeing and Microsoft are still strong companies. Apartment vacancies are low and there aren't too many new buildings going up, meaning the market won't be oversupplied. The same is true in the retail space.
San Francisco comes in second with a 6.12. They have learned from the tech crash of 2001 not to overbuild. There is a reasonable supply of office and apartment space, which should limit vacancies. San Francisco's port is also expected to help the city during the downturn as Americans continue to rely on Asian imports.
Washington, D.C., New York and Los Angeles round out the top five.
New Orleans also lands near the bottom with a score of 3.33. The city has been losing businesses to Houston, Dallas and Atlanta since Hurricane Katrina hit in 2005.
The other cities at the bottom of the list — Columbus, Ohio, Milwaukee, Wis., and Cleveland, Ohio suffer from dying industries and lack of tourist appeal.
While Columbus has the potential to become a major shipping hub for goods traveling cross-country, that revitalization seems to be waiting for a stronger economy and a government focused on improving the roads.
The best cities in which to invest are those that:
- Are considered gateways to international investment
- Have vital down-towns where people can get around without cars
- Don't have an oversupply of condos or office space
These traits landed Seattle the No. 1 spot on the list. No city scored above a 6.15 on a scale of one to nine (one being an abysmal place to invest and nine being excellent). Seattle is "a diversified market, has a good base of business and is becoming a 24-hour city," says Stephen Blank, senior resident fellow, finance, of the Urban Land Institute. "It's going to be in a good position to come back."
Although the city is suffering from the loss of Washington Mutual and the downsizing of Starbucks, Boeing and Microsoft are still strong companies. Apartment vacancies are low and there aren't too many new buildings going up, meaning the market won't be oversupplied. The same is true in the retail space.
San Francisco comes in second with a 6.12. They have learned from the tech crash of 2001 not to overbuild. There is a reasonable supply of office and apartment space, which should limit vacancies. San Francisco's port is also expected to help the city during the downturn as Americans continue to rely on Asian imports.
Washington, D.C., New York and Los Angeles round out the top five.
New Orleans also lands near the bottom with a score of 3.33. The city has been losing businesses to Houston, Dallas and Atlanta since Hurricane Katrina hit in 2005.
The other cities at the bottom of the list — Columbus, Ohio, Milwaukee, Wis., and Cleveland, Ohio suffer from dying industries and lack of tourist appeal.
While Columbus has the potential to become a major shipping hub for goods traveling cross-country, that revitalization seems to be waiting for a stronger economy and a government focused on improving the roads.
Monday, November 17, 2008
Property Investments For Anyone
I recently saw an article on "yourwealthguide.com" that reminded me of some facts about real estate investing that bear repeating.
Many people shy away from the topic or follow the herd and throw their money into mutual funds due to lack of knowledge (fear) about whether they will be able to make quality decisions about what to invest in. Many hear all of the headaches and warnings from other people who have had a less than glamorous experience. The underlying fact is that anyone that has a willingness to learn can take full advantage of the many real estate investments available today.
What You Do NOT Need To Do
Investing in real estate does not mean you have to have a fortune of money in the bank and plunk down lots of cash for a house. Today, there are plenty of different investment methods available to you in terms of real estate investing. You do not have to purchase a piece of land and either sit on it to see a rise in its value nor do you have to work on building and developing that property to see a profit. These things do take time, money and larger risk than is necessary. Other things you do NOT have to do.
1. You do not have to manage the overall business of running the property.
2. You do not have to handle the costly repairs to the property to see a profit.
3. You do not have to invest a lot of your money into the real estate in the hopes of seeing a profit.
4. You do not have to invest a lot of time in your property in the hopes that the value will rise in the long term.
5. You do not have to invest your time in learning the business of running rental property, or real estate in general.
There are solutions to all of these elements that other people can help you with (do for you).
Getting Started In Investments
Anyone considering building wealth needs to take into consideration the many benefits that can and do come to those that invest in real estate. They need to realize the true benefits of security and value that come from property investing over other types of investing. Getting started does not have to be difficult. Most importantly, getting started in the business of real estate does not have to be costly. You do not need a large amount of money to get started and that means that anyone can find themselves in the position to build wealth securely through real estate without risking a lot at all.
For those considering wealth building through property investing, it pays to take the time to gather facts and information. It is also helpful to understand the overall process of property investing.
Real estate investing should be something you consider, from day one of investing.
Stay in touch with the facts by downloading our FREE reports.
If you want to know the many other options in detail, check out our 2 day boot-camp!
Many people shy away from the topic or follow the herd and throw their money into mutual funds due to lack of knowledge (fear) about whether they will be able to make quality decisions about what to invest in. Many hear all of the headaches and warnings from other people who have had a less than glamorous experience. The underlying fact is that anyone that has a willingness to learn can take full advantage of the many real estate investments available today.
What You Do NOT Need To Do
Investing in real estate does not mean you have to have a fortune of money in the bank and plunk down lots of cash for a house. Today, there are plenty of different investment methods available to you in terms of real estate investing. You do not have to purchase a piece of land and either sit on it to see a rise in its value nor do you have to work on building and developing that property to see a profit. These things do take time, money and larger risk than is necessary. Other things you do NOT have to do.
1. You do not have to manage the overall business of running the property.
2. You do not have to handle the costly repairs to the property to see a profit.
3. You do not have to invest a lot of your money into the real estate in the hopes of seeing a profit.
4. You do not have to invest a lot of time in your property in the hopes that the value will rise in the long term.
5. You do not have to invest your time in learning the business of running rental property, or real estate in general.
There are solutions to all of these elements that other people can help you with (do for you).
Getting Started In Investments
Anyone considering building wealth needs to take into consideration the many benefits that can and do come to those that invest in real estate. They need to realize the true benefits of security and value that come from property investing over other types of investing. Getting started does not have to be difficult. Most importantly, getting started in the business of real estate does not have to be costly. You do not need a large amount of money to get started and that means that anyone can find themselves in the position to build wealth securely through real estate without risking a lot at all.
For those considering wealth building through property investing, it pays to take the time to gather facts and information. It is also helpful to understand the overall process of property investing.
Real estate investing should be something you consider, from day one of investing.
Stay in touch with the facts by downloading our FREE reports.
If you want to know the many other options in detail, check out our 2 day boot-camp!
Thursday, November 13, 2008
A Formula For Beginning Real Estate Investing
A Formula For Beginning Real Estate Investing
Passion + Planning = Momentum : A Formula For Successfully Beginning Investing
You don’t have to see the whole staircase, just take the first step – Martin Luther King
If you are a beginning investor, the world of investing can seem daunting. So many opportunities present themselves that it’s very difficult to know what to do. You have many questions and concerns. Which type of investment is right for me? How much do I need or should I spend? How can I minimize my risk? What will be my return on investment (ROI)? And so on.
You may be at a standstill with investing. You’ve looked around for a while. You’ve read some books, watched some programs, maybe even attended some seminars. You have a fairly good idea of what’s available and what you want to do. But you haven’t acted yet on anything.
What you need next is momentum. What do I mean by that?
Let’s define momentum. Momentum is defined as a “strength or force gained by motion or through the development of events”. Momentum is when things are moving along to the degree that there is no more stopping. Things just keep on going. You have momentum when you find yourself consistently spending time and effort on something. Procrastination is over. You are motivated and fully engaged in it. No one has to coax you into spending time on it. You want to do it. You even think about it when you aren’t doing it!
It’s estimated that only 10%-20% of people who study real estate investing (whether it be taking real estate or self help courses, reading books or listening to CDs) ever actually invest! In other words, 80%-90% of these people will gain lots of knowledge about real estate investing, yet they never invest! The reason is definitely not because these people are not smart enough. The reason is because these people never achieved momentum with their investing plans.
Let’s look at some examples. Consider a new job. If you’ve worked only a few weeks or a few months at a job, you may not know if it’s right for you. You’ll have doubts and uncertainties about yourself, your boss, your co-worker and your future in general. You’ll probably lack motivation. You may be looking around at other job opportunities. But if you stay at that job for long enough, your attitude will change. You’ll learn how things work there. You’ll know where you’re going with the job and the company. You’ll have worked on various projects and where you can go in the company. You may have even brought in new clients. You will eventually establish your own unique presence and role in that company. You’ll have become part of a business ecosystem in which you play a significant role. Your decisions and actions will have a definite impact on others in the company, and you’ll take pride in that and naturally want to continue growing there. Your job has become important to you because of your own accomplishments in it, so you’re motivated to continue with it. That’s when you’ve achieved momentum.
Here’s another example. Think of a snowball rolling down a steep mountain. At first, it’s tiny and doesn’t have much speed. It might get stuck in the snow and stop. The wind might dash it to pieces. But if it keeps rolling, as the snowball accumulates size and speed, it is carried along by its own weight. It becomes bigger and bigger and moves faster and faster until it’s actually bouncing down the hill instead of rolling. That’s momentum.
There are two critical things you need for gaining momentum in your real estate investing career or in any walk of life: 1) A plan and 2) a plan that is infused with your personal interests and passion. If either of these elements are missing, you are not likely to be successful in a given endeavor. You may come up with a plan, but it might never be put into action. At the very least, that plan will be much less successful than if you had these two critical elements.
So how do you get momentum with real estate investing?
You need to find an area in real estate investing that excites you. The best way to achieve momentum with real estate investing (or anything in life) is through passion. That is, you do what you love to do. Not what you kind of like, or what seems appealing or fun. I mean what you love, what you’re passionate about. What will make you leap out of bed in the morning to do, not what will make you maybe hit the snooze bar. But let’s be clear about what that thing is. What that thing is is not what the newspapers tell you should invest in. It isn’t what your wife or husband or friends think you should be investing in. It’s not what your financial advisor tells you. It’s not what your co-workers tell you. It’s what you and only you want to do. No compromise. Why do I say this? Because you’re naturally motivated to do something and to keep doing something if you love doing it! When you love doing something, momentum automatically happens.
As you build your knowledge about real estate investing, you really need to think about what you would LOVE to do the most in this area. Be completely honest. There may be a few areas that appeal to you, but you should pick just one that appeals to you the most. You will be more successful in one area that you truly love and in two or three areas that you like but do not love.
Now you may find that after a lot of looking around and soul searching that you can’t find anything that you truly love in real estate. If you’ve looked all through real estate investing and can’t find anything that you truly feel a connection with, a love and passion for, you shouldn’t invest in real estate at all! You should find another area to invest in that you truly feel passionate about. You’ll be far more successful doing that than anything else in real estate investing.
Passion + Planning = Momentum : A Formula For Successfully Beginning Investing
You don’t have to see the whole staircase, just take the first step – Martin Luther King
If you are a beginning investor, the world of investing can seem daunting. So many opportunities present themselves that it’s very difficult to know what to do. You have many questions and concerns. Which type of investment is right for me? How much do I need or should I spend? How can I minimize my risk? What will be my return on investment (ROI)? And so on.
You may be at a standstill with investing. You’ve looked around for a while. You’ve read some books, watched some programs, maybe even attended some seminars. You have a fairly good idea of what’s available and what you want to do. But you haven’t acted yet on anything.
What you need next is momentum. What do I mean by that?
Let’s define momentum. Momentum is defined as a “strength or force gained by motion or through the development of events”. Momentum is when things are moving along to the degree that there is no more stopping. Things just keep on going. You have momentum when you find yourself consistently spending time and effort on something. Procrastination is over. You are motivated and fully engaged in it. No one has to coax you into spending time on it. You want to do it. You even think about it when you aren’t doing it!
It’s estimated that only 10%-20% of people who study real estate investing (whether it be taking real estate or self help courses, reading books or listening to CDs) ever actually invest! In other words, 80%-90% of these people will gain lots of knowledge about real estate investing, yet they never invest! The reason is definitely not because these people are not smart enough. The reason is because these people never achieved momentum with their investing plans.
Let’s look at some examples. Consider a new job. If you’ve worked only a few weeks or a few months at a job, you may not know if it’s right for you. You’ll have doubts and uncertainties about yourself, your boss, your co-worker and your future in general. You’ll probably lack motivation. You may be looking around at other job opportunities. But if you stay at that job for long enough, your attitude will change. You’ll learn how things work there. You’ll know where you’re going with the job and the company. You’ll have worked on various projects and where you can go in the company. You may have even brought in new clients. You will eventually establish your own unique presence and role in that company. You’ll have become part of a business ecosystem in which you play a significant role. Your decisions and actions will have a definite impact on others in the company, and you’ll take pride in that and naturally want to continue growing there. Your job has become important to you because of your own accomplishments in it, so you’re motivated to continue with it. That’s when you’ve achieved momentum.
Here’s another example. Think of a snowball rolling down a steep mountain. At first, it’s tiny and doesn’t have much speed. It might get stuck in the snow and stop. The wind might dash it to pieces. But if it keeps rolling, as the snowball accumulates size and speed, it is carried along by its own weight. It becomes bigger and bigger and moves faster and faster until it’s actually bouncing down the hill instead of rolling. That’s momentum.
There are two critical things you need for gaining momentum in your real estate investing career or in any walk of life: 1) A plan and 2) a plan that is infused with your personal interests and passion. If either of these elements are missing, you are not likely to be successful in a given endeavor. You may come up with a plan, but it might never be put into action. At the very least, that plan will be much less successful than if you had these two critical elements.
So how do you get momentum with real estate investing?
You need to find an area in real estate investing that excites you. The best way to achieve momentum with real estate investing (or anything in life) is through passion. That is, you do what you love to do. Not what you kind of like, or what seems appealing or fun. I mean what you love, what you’re passionate about. What will make you leap out of bed in the morning to do, not what will make you maybe hit the snooze bar. But let’s be clear about what that thing is. What that thing is is not what the newspapers tell you should invest in. It isn’t what your wife or husband or friends think you should be investing in. It’s not what your financial advisor tells you. It’s not what your co-workers tell you. It’s what you and only you want to do. No compromise. Why do I say this? Because you’re naturally motivated to do something and to keep doing something if you love doing it! When you love doing something, momentum automatically happens.
As you build your knowledge about real estate investing, you really need to think about what you would LOVE to do the most in this area. Be completely honest. There may be a few areas that appeal to you, but you should pick just one that appeals to you the most. You will be more successful in one area that you truly love and in two or three areas that you like but do not love.
Now you may find that after a lot of looking around and soul searching that you can’t find anything that you truly love in real estate. If you’ve looked all through real estate investing and can’t find anything that you truly feel a connection with, a love and passion for, you shouldn’t invest in real estate at all! You should find another area to invest in that you truly feel passionate about. You’ll be far more successful doing that than anything else in real estate investing.
Wednesday, November 12, 2008
It's Not What You Say!
It’s Not What You Say … But What You Hear!
What can I say that will make a difference for you?
The answer is, absolutely nothing!
It doesn't matter what I say.
What matters is how you listen.
The foundation to everything is how you listen.
Salespeople always think the key to selling is saying the right thing to make a customer buy. Yet the top salespeople in any industry spend more time listening to their customers (to identify their wants and needs) than telling them about their product or service.
The power of listening works in all aspects of lives including investing.
There are so many different ways we can listen.
Yet we don't realize how often it is that we are talking, because most of the time that we are talking it is not without mouth but with our mind.
We think that we are listening, but in the back of our mind we're saying stuff to ourselves (silent internal chatter). Stuff like, "I have other things to do" or "I better check my email/blackberry"
When you listen from "How can I use ‘that’," "How can I apply ‘that’ in my life,", or "What can I take from ‘that’ point, that I haven't taken before - even though I understand ‘that’ or heard ‘that’ before – what about ‘that’ am I not applying 100% in my life?" ... you get so much
more!
There might be an email message that totally distracts you from your life, and yet another recipient may have their day brightened by that same e-mail. Similarly, there may be an e-mail that can totally change the world, and yet nothing happens.
Again, it's not because of what is said.
It's because of what is heard.
So my question to you is, "are you ready to listen?"
I meet new potential investors every day who tell me they would love to get into real estate investing because the opportunity is so amazing, yet they have very little money to invest. Are they ever amazed after we chat further about how they can still make money and build their bank account without necessarily writing a fat check to get into this world of investing. All you have to do is listen!
“When the student is ready … the teach will appear”
Learn more!
What can I say that will make a difference for you?
The answer is, absolutely nothing!
It doesn't matter what I say.
What matters is how you listen.
The foundation to everything is how you listen.
Salespeople always think the key to selling is saying the right thing to make a customer buy. Yet the top salespeople in any industry spend more time listening to their customers (to identify their wants and needs) than telling them about their product or service.
The power of listening works in all aspects of lives including investing.
There are so many different ways we can listen.
Yet we don't realize how often it is that we are talking, because most of the time that we are talking it is not without mouth but with our mind.
We think that we are listening, but in the back of our mind we're saying stuff to ourselves (silent internal chatter). Stuff like, "I have other things to do" or "I better check my email/blackberry"
When you listen from "How can I use ‘that’," "How can I apply ‘that’ in my life,", or "What can I take from ‘that’ point, that I haven't taken before - even though I understand ‘that’ or heard ‘that’ before – what about ‘that’ am I not applying 100% in my life?" ... you get so much
more!
There might be an email message that totally distracts you from your life, and yet another recipient may have their day brightened by that same e-mail. Similarly, there may be an e-mail that can totally change the world, and yet nothing happens.
Again, it's not because of what is said.
It's because of what is heard.
So my question to you is, "are you ready to listen?"
I meet new potential investors every day who tell me they would love to get into real estate investing because the opportunity is so amazing, yet they have very little money to invest. Are they ever amazed after we chat further about how they can still make money and build their bank account without necessarily writing a fat check to get into this world of investing. All you have to do is listen!
“When the student is ready … the teach will appear”
Learn more!
Tuesday, November 11, 2008
Opportunists
My colleague Gerald Romine sent me an email that reminded me of some very important points to consider.
There is a saying that goes, I will eat steak tomorrow night as I choose regardless of what you do or don’t do; regardless of whether you eat steak or beans.
The same is true for the economy, the financial crisis, and the recession. Some people will be eating steak and others will be eating beans.
Like it or not, money is in constant motion; it just flows in different directions from time to time.
Wayne Gretzky had a motto: Go to where the puck is going to be, not where it just was!
It’s up to you to move where the money is flowing now - not where it used to flow!
Sure, the economic times have changed? It is near impossible to get loans,yet I still meet people getting them today. The flow of money used to be from conventional lending but if you’re old system required loans and that isn't working for you today, then it is time to change your system. It is up to you to move to where the money is flowing.
FACT: People are still flipping houses and some are doing very well. Need proof… check out an auction or two or a few forum website and you’ll see people paying even more than you would for properties .... which means they are a source of potential buyers. This is your opportunity.
There is a lot of doom and gloom out there and majorities of people are suffering financially. But they only represent 1/3 of the pie. The second third of the pie are people who are not suffering but are not spending because they are living in fear so they are in a holding pattern.
That leaves the final third of the pie - the people with money (the rich)!
That is why the rich get richer. Because they buy low and sell high. And they do that by buying in times like we are currently experiencing. Somebody has to sell those properties to the rich - it might as well be you!
You need to capitalize on the opportunity delivered by the so called financial crisis.
If you are a real estate investor just starting out or even a seasoned pro make sure you request my FREE reports on the left side of this blog or my website.
If you see the opportunities out there but don't know how to get started, then you need to check out our Real Estate Investing Course at http://www.mandmproperties.biz/boot-camp.
There is a saying that goes, I will eat steak tomorrow night as I choose regardless of what you do or don’t do; regardless of whether you eat steak or beans.
The same is true for the economy, the financial crisis, and the recession. Some people will be eating steak and others will be eating beans.
Like it or not, money is in constant motion; it just flows in different directions from time to time.
Wayne Gretzky had a motto: Go to where the puck is going to be, not where it just was!
It’s up to you to move where the money is flowing now - not where it used to flow!
Sure, the economic times have changed? It is near impossible to get loans,yet I still meet people getting them today. The flow of money used to be from conventional lending but if you’re old system required loans and that isn't working for you today, then it is time to change your system. It is up to you to move to where the money is flowing.
FACT: People are still flipping houses and some are doing very well. Need proof… check out an auction or two or a few forum website and you’ll see people paying even more than you would for properties .... which means they are a source of potential buyers. This is your opportunity.
There is a lot of doom and gloom out there and majorities of people are suffering financially. But they only represent 1/3 of the pie. The second third of the pie are people who are not suffering but are not spending because they are living in fear so they are in a holding pattern.
That leaves the final third of the pie - the people with money (the rich)!
That is why the rich get richer. Because they buy low and sell high. And they do that by buying in times like we are currently experiencing. Somebody has to sell those properties to the rich - it might as well be you!
You need to capitalize on the opportunity delivered by the so called financial crisis.
If you are a real estate investor just starting out or even a seasoned pro make sure you request my FREE reports on the left side of this blog or my website.
If you see the opportunities out there but don't know how to get started, then you need to check out our Real Estate Investing Course at http://www.mandmproperties.biz/boot-camp.
Tuesday, November 4, 2008
What Is RISK?
As a real estate investor in one of the toughest economic situations of our time, I find it intriguing that people constantly say (to me) things like “Isn't this rather risky?” or “I don’t have any money”
Let me begin by saying that there is no need to feel naive or claim ignorance. The bottom line is that unless you do this every day for a living you will always feel 'out-of-the-loop'. Funny thing is - most people know what a stock is yet they have no idea what drives stock prices up or down. Yet, because the societal 'norm' is to buy mutual funds because a fund manager must understand the stocks better than you - people go out and buy mutual funds. Then, even if the funds/stocks go down, the fund manager gets paid and people invest more because they are saving for retirement. I buy mutual funds too - but this year they have lost money and I can't do a damn thing about it. In the worst real estate/mortgage crisis of our time, I'm making money in real estate investing. I'll hold on to my funds, but it's about diversification.
Robert Kiyosaki (author of Rich Dad Poor Dad, and co-author of Why We Want You To Be Rich with Donald Trump) said it this way - and he's absolutely right - "the more control you have over something, the less risk. The less control you have over something, the more risk there is!" In my deals I control virtually every factor - when I buy mutual funds I can't tell the fund manager what stocks to buy and what to sell.
Suffice it to say that when you don't eat-sleep-and-breath in a certain industry, there is no shame in partnering with an expert. You rely on an accountant for tax advice, a doctor for medical advice, and a lawyer for legal advice. You probably don't know as much about their industry as they do because you don't study it and don't practice it every day. I am like the real estate doctor. I get paid to study the solutions (educate myself), and then implement the ‘treatment’ (property rehab and contract negotiations) to make the property profitable again.
Passive revenue is a buzz-word these days, and I believe in passive revenue – for the right reasons. People continually talk about MLM (multi-level-marketing). Recently I suggested to somebody (who was trying to sell me on a MLM program where I get paid every time someone clicks on certain websites and web ads) that if you have to recruit each person into the program one-by-one, you could die an old age trying to build your network of people beneath you (the ones you get paid off of). The person went on to explain how the numbers work, and in fact could be massive numbers further down the road. He said “it's the best way I know how” “I truly believe in it as the way of the future.”
Just because I think it is a lot of work for the financial gains you receive in return, doesn't mean it (MLM) will not work, nor does it mean that it is wrong. Many people make money in many different ways in this world. It's all about what you believe in and what you focus on.
I'll tell you this much:
1. Everybody needs a home - AND - the markets where I am buying/selling properties enjoy significantly MORE demand than supply - thus no risk of vacancy or low rent.
2. The price can drop out of a stock overnight - and a company could go bankrupt - a housing market can go down but the house will never be worth zero.
3. The market is probably near the bottom - it has already bottomed out in the area I am buying/selling and is in fact already appreciating
Where the risk is eliminated:
1. Little to no risk of vacancy - carrying the cost of the property out of your own pocket.
2. No risk of property depreciating further
3 No risk of property falling apart b/c you just rehabbed it with all new materials - so cost of repairs is minimal
4. No risk of costing you more money b/c the rental income far exceeds the cost of the property.
But consider this for a moment. In very general and simplistic terms, if I buy a property with a little money down (of my own money), and after all expenses including electric, gas, repairs, vacancy, and mortgage, the profit each month (Cash Flow) is $1,000.00, then I get my FULL investment back in a matter of months, and then my income (Cash-Flow) increases by approx $800 - $1,000 per month from there ever-after … until I sell the place. PLUS, the value of the property keeps going up.
AND ... if you don't have the cash to put down right now, I know of investors who are using their credit line for the down-payment. I don't advise in abusing credit to buy something that depreciates in value or you get into debt and credit trouble. But as Robert Kiyoaski teaches, what I am referring to is good debt – eg. that what you purchase with the borrowed money increases in value AND covers the cost of debt. That my friends is how & why THE RICH GET RICHER - they leverage money! They also buy low and sell high. We've all heard it, yet now when the market is low, everybody is scared. I don't blame them, but I flipped 3 properties last week to "RICH" people, because they (the rich people) want to buy low and sell high.
Think of it this way – let’s assume you get your mail and you have your Verizon bill.
QUESTION: how many people do you have to spend time recruiting into MLM or Pay-Per-Click, or how many clicks do you need to actually do yourself on websites … and how many hours does it take to raise the money (via these said methods) just to pay that one phone bill? Compared to having an extra $800 - $1000 per month coming in without doing any work, above and beyond setting up the initial deal? That's the other way the rich get richer - they don't trade time for money - they try to acquire investments that provide 'passive' revenue.
Again, it's not that my way is right and others are wrong. It's about weighing your options. To me, it's about the amount of time you put in v.s. the amount of reward you get back. Last week I flipped 3 properties and I only spent a little time on my computer to do the deals … and I never used a penny of my own money.
Sure, if it was a very high risk property deal then it might not be as rosy as I make it sound, but we could talk at great length about your options in deals like the ones I am finding and offering to investors, that eliminate almost all of the risk that the average person believes exists.
For details check out our website at: www.mandmproperties.biz
Let me begin by saying that there is no need to feel naive or claim ignorance. The bottom line is that unless you do this every day for a living you will always feel 'out-of-the-loop'. Funny thing is - most people know what a stock is yet they have no idea what drives stock prices up or down. Yet, because the societal 'norm' is to buy mutual funds because a fund manager must understand the stocks better than you - people go out and buy mutual funds. Then, even if the funds/stocks go down, the fund manager gets paid and people invest more because they are saving for retirement. I buy mutual funds too - but this year they have lost money and I can't do a damn thing about it. In the worst real estate/mortgage crisis of our time, I'm making money in real estate investing. I'll hold on to my funds, but it's about diversification.
Robert Kiyosaki (author of Rich Dad Poor Dad, and co-author of Why We Want You To Be Rich with Donald Trump) said it this way - and he's absolutely right - "the more control you have over something, the less risk. The less control you have over something, the more risk there is!" In my deals I control virtually every factor - when I buy mutual funds I can't tell the fund manager what stocks to buy and what to sell.
Suffice it to say that when you don't eat-sleep-and-breath in a certain industry, there is no shame in partnering with an expert. You rely on an accountant for tax advice, a doctor for medical advice, and a lawyer for legal advice. You probably don't know as much about their industry as they do because you don't study it and don't practice it every day. I am like the real estate doctor. I get paid to study the solutions (educate myself), and then implement the ‘treatment’ (property rehab and contract negotiations) to make the property profitable again.
Passive revenue is a buzz-word these days, and I believe in passive revenue – for the right reasons. People continually talk about MLM (multi-level-marketing). Recently I suggested to somebody (who was trying to sell me on a MLM program where I get paid every time someone clicks on certain websites and web ads) that if you have to recruit each person into the program one-by-one, you could die an old age trying to build your network of people beneath you (the ones you get paid off of). The person went on to explain how the numbers work, and in fact could be massive numbers further down the road. He said “it's the best way I know how” “I truly believe in it as the way of the future.”
Just because I think it is a lot of work for the financial gains you receive in return, doesn't mean it (MLM) will not work, nor does it mean that it is wrong. Many people make money in many different ways in this world. It's all about what you believe in and what you focus on.
I'll tell you this much:
1. Everybody needs a home - AND - the markets where I am buying/selling properties enjoy significantly MORE demand than supply - thus no risk of vacancy or low rent.
2. The price can drop out of a stock overnight - and a company could go bankrupt - a housing market can go down but the house will never be worth zero.
3. The market is probably near the bottom - it has already bottomed out in the area I am buying/selling and is in fact already appreciating
Where the risk is eliminated:
1. Little to no risk of vacancy - carrying the cost of the property out of your own pocket.
2. No risk of property depreciating further
3 No risk of property falling apart b/c you just rehabbed it with all new materials - so cost of repairs is minimal
4. No risk of costing you more money b/c the rental income far exceeds the cost of the property.
But consider this for a moment. In very general and simplistic terms, if I buy a property with a little money down (of my own money), and after all expenses including electric, gas, repairs, vacancy, and mortgage, the profit each month (Cash Flow) is $1,000.00, then I get my FULL investment back in a matter of months, and then my income (Cash-Flow) increases by approx $800 - $1,000 per month from there ever-after … until I sell the place. PLUS, the value of the property keeps going up.
AND ... if you don't have the cash to put down right now, I know of investors who are using their credit line for the down-payment. I don't advise in abusing credit to buy something that depreciates in value or you get into debt and credit trouble. But as Robert Kiyoaski teaches, what I am referring to is good debt – eg. that what you purchase with the borrowed money increases in value AND covers the cost of debt. That my friends is how & why THE RICH GET RICHER - they leverage money! They also buy low and sell high. We've all heard it, yet now when the market is low, everybody is scared. I don't blame them, but I flipped 3 properties last week to "RICH" people, because they (the rich people) want to buy low and sell high.
Think of it this way – let’s assume you get your mail and you have your Verizon bill.
QUESTION: how many people do you have to spend time recruiting into MLM or Pay-Per-Click, or how many clicks do you need to actually do yourself on websites … and how many hours does it take to raise the money (via these said methods) just to pay that one phone bill? Compared to having an extra $800 - $1000 per month coming in without doing any work, above and beyond setting up the initial deal? That's the other way the rich get richer - they don't trade time for money - they try to acquire investments that provide 'passive' revenue.
Again, it's not that my way is right and others are wrong. It's about weighing your options. To me, it's about the amount of time you put in v.s. the amount of reward you get back. Last week I flipped 3 properties and I only spent a little time on my computer to do the deals … and I never used a penny of my own money.
Sure, if it was a very high risk property deal then it might not be as rosy as I make it sound, but we could talk at great length about your options in deals like the ones I am finding and offering to investors, that eliminate almost all of the risk that the average person believes exists.
For details check out our website at: www.mandmproperties.biz
Monday, November 3, 2008
Boot Camp For Real Estate Investors
Many people have been asking about our recently released schedule of boot-camps for real estate investing in down market.
Specifically, everybody is cautious with their money (and they should be) but don't want to miss out on opportunity when it arises.
The most popular question/concern seems to be: "How Is Our Course DIFFERENT Than The Many Other Real Estate Investing Boot Camps?"
The LONG Answer:
When I began, I took dozens of courses and spent over $20,000 learning before I did any investing. It is scary and there is a lot to know. I also learned that you can become overwhelmed trying to learn too much at the beginning, and still never get off the ground and make any money.
That is why I developed my own 3-day boot camps. They are less expensive than most other programs, but I fill in a huge GAP that every other course seems to leave open for new investors to fall into. That gap is not knowing WHERE to start or HOW to start.
My boot camp is not an infomercial to upsell more things down the road. I just want to genuinely fill the gap that causes so many new real estate investors to quit or fail from the beginning.
I HATE when people charge admission for the privilege of selling me more things to pay for. I believe if people are paying for a course, they should get what they paid for ... which is value, knowledge, information, resources, and other benefits .... and not be provided with fluff or taken advantage of.
Furthermore, every course I paid to attend offered valuable knowledge, but also threw me to the wolves after the course was over. I was excited about the many possibilities that I learned about, but I didn't know where to start and I was scared.
The SHORT Answer:
You'll notice 4 things about our boot-camps:
1. It is lower priced than any other course of it's caliber
2. It offers more content than any other course of it's caliber
3. There are NO further UPSELLS
3. Just one assignment deal will in itself pay for the course 5 times over.
For more details about the boot-camp, go to: http://www.mandmproperties.biz/boot-camp
p.s. Check out our FREE reports offering some of the most effective, to-the-point, information you will ever find from a real estate investment company. They offer strategies that experts have tested, perfected, and used to succeed in their own real estate investment business, and niche focus areas.
www.mandmproperties.biz/free-reports-info
Specifically, everybody is cautious with their money (and they should be) but don't want to miss out on opportunity when it arises.
The most popular question/concern seems to be: "How Is Our Course DIFFERENT Than The Many Other Real Estate Investing Boot Camps?"
The LONG Answer:
When I began, I took dozens of courses and spent over $20,000 learning before I did any investing. It is scary and there is a lot to know. I also learned that you can become overwhelmed trying to learn too much at the beginning, and still never get off the ground and make any money.
That is why I developed my own 3-day boot camps. They are less expensive than most other programs, but I fill in a huge GAP that every other course seems to leave open for new investors to fall into. That gap is not knowing WHERE to start or HOW to start.
My boot camp is not an infomercial to upsell more things down the road. I just want to genuinely fill the gap that causes so many new real estate investors to quit or fail from the beginning.
I HATE when people charge admission for the privilege of selling me more things to pay for. I believe if people are paying for a course, they should get what they paid for ... which is value, knowledge, information, resources, and other benefits .... and not be provided with fluff or taken advantage of.
Furthermore, every course I paid to attend offered valuable knowledge, but also threw me to the wolves after the course was over. I was excited about the many possibilities that I learned about, but I didn't know where to start and I was scared.
The SHORT Answer:
You'll notice 4 things about our boot-camps:
1. It is lower priced than any other course of it's caliber
2. It offers more content than any other course of it's caliber
3. There are NO further UPSELLS
3. Just one assignment deal will in itself pay for the course 5 times over.
For more details about the boot-camp, go to: http://www.mandmproperties.biz/boot-camp
p.s. Check out our FREE reports offering some of the most effective, to-the-point, information you will ever find from a real estate investment company. They offer strategies that experts have tested, perfected, and used to succeed in their own real estate investment business, and niche focus areas.
- The 10 Most Popular Pitfalls To Avoid At All Costs!
- 20 Secrets To Finding Tenants QUICKLY!
- The First Steps To Successful Investing!
- The 20 Most Costly Mistakes A Real Estate Investor Can Make!
- Investing SIMPLIFIED!
- 5 Tips To Improve Your Networking Skills!
www.mandmproperties.biz/free-reports-info
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