My One Hundred Things

From here on out...

2009-06-13T20:27:00.002-04:00

Check it out...I'm officially not posting here anymore. This blogger account never got any attention anyway. I never got to the bottom as to why, but it doesn't matter. For those of you who happen upon this page though, if you want to track me down, hit my new blog at http://nextlevelblogger.com, or find me at http://twitter.com/christiantjr. Holla!

New Blog about Sales Training and Making Money Online

2009-06-05T12:14:00.004-04:00

I just fired up a new business blog I'm really excited about! Next Level Blogger is a new business site for anyone interested in any of the following:

Click to visit my about page and let me know what you think :)

Besides throwing this post up to get some links going (obviously), I want to let you know about the new site, and I'd love to hear your thoughts, criticism, etc!

Motivational Quotes: William J. H. Boetcker

2009-04-16T14:08:00.000-04:00

Thanks to Happy Publishing for posting this quote recently…it is a really timely and well-spoken idea. I agree wholeheartedly. BTW, I’ve seen that this quote is regularly attributed to Abraham Lincoln. As best I can tell, this is not actually the case, and William J. H. Boetcker is the correct person to cite. If you have something which may shed light on this minor controversy, let me know!

You cannot bring prosperity by discouraging thrift.
You cannot help small men by tearing down big men.
You cannot strengthen the weak by weakening the strong.
You cannot lift the wage earner by pulling down the wage payer.
You cannot help the poor man by destroying the rich.
You cannot keep out of trouble by spending more than your income.
You cannot further brotherhood of men by inciting class hatred.
You cannot establish security on borrowed money.
You cannot build character and courage by taking away man’s initiative and independence.
You cannot help men permanently by doing for them what they could and should do for themselves.

-William J. H. Boetcker

Does anyone disagree? Is picking on one class or another really going to solve our economic issues? Will that really create more prosperity? Is continuing to spend beyond our means really the way to get back on track? Is it really the government’s job to provide for us, or is it our job to create our own wealth? Is wealth, really, something that CAN be given from one to another, or must it be something that we each acquire individually?

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Tags: economy, Motivation Quotes, spending, wealth, William J. H. Boetcker

A Thought as to Why There is a Huge Separation Between Rich and Poor

2009-04-16T14:07:00.001-04:00

Show anyone on the street a balance sheet, and they will likely not be able to make sense of it. Show anyone on the street a P&L, and they likely won’t even know what it is. Show anyone on the street articles of incorporation for a promising new start up company, and their eyes will glaze over. Most people on the street are poor. Is there a relationship between these things? I think so.

Get Excited…See the Value

See, when I was young, I was intimidated and very much bored by the US Constitution. You couldn’t get me to read a book if my life depended on it. You would be a gifted person indeed if you could get me to sit still for a music lesson. But now I’m a grown up, and I see a bigger picture. I see the value in these things, and since I see the value, I’m interested in learning more. I happily sit still and read, practice and study things that enhance my life. See, when I do these things I reap many benefits.

What About YOU?

I’m sure you can think of examples in your own life where some diligence and hard work has paid off, no? Have you ever really pushed yourself in some regard, and as a result you now forever have a different outlook on things? Success is like that. It changes you forever.

The Necessity of Financial Education

And so it goes with financial education. Is it really any wonder that we have twenty-somethings making billions of dollars while the average Joe struggles to get by? Think objectively about this for a second…the average person knows next to nothing about how to form a company and make a profit. The average person really knows almost nothing about money at all. So is it really any mystery as to why some people can become so phenomenally wealthy? There’s almost no frickin’ competition! Can you imagine if we had a world full of savvy and financially intelligent investors and business owners? Do you think things might be a little more even keel if more people actually knew how to make money?

See, we all want more money. We want to proser. And the thing about most people I know is that we’re all willing to work hard also. We just want to be paid more. That’s where we screw up. We want the system to “work better”…whatever that means. We want to be given more money for what we already do. The thing is, money just doesn’t work that way. Do you think the guy making billions of dollars works billions of times harder and longer than everyone else? No. So we look at him and say “No fair.” The thing about money is this: money doesn’t run on fairness. Money follows value. Period. And if you want to make more money, you need to know how it works.

So, learn how it works for God’s sake. And go get yours. If you want some of that billionaire’s stash, go take it. Don’t wait for Obama to do it for you.

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Tags: financial education, How to Get Rich, How to Invest, prosperity

Motivational Quotes: William F Halsey

2009-04-16T14:05:00.000-04:00

“There are no great men, only great challenges that ordinary men are forced by circumstances to meet.” William F. Halsey

This one really works for me today. Halsey had it right in my opinion. I’ve consistently found it amazing what you can get done when you simply have to get it done…no option. We can of course easily be lulled into the idea that we’re better than others. Vanity is a common enough issue that must be dealth with. It’s also easy enough to believe that others are simply better than you…so, it’s much easier to slough off responsibility and not own up to the fact that you have a LOT of value to offer others and a LOT of work ahead of you.

I’ve had the privilege of being able to meet and know a lot of successful people, in business, sales and otherwise, and I can tell you that these people have the exact same dysfunctions and personal issues as the rest of us. We all have deficiencies. We all have significant fears. We all have competencies and incompetencies.

The greatest among us are not those who have the most money or skill or other attributes…the greatest among us are simply those who have owned up to the challenges facing them and faced them head on, with vigor and steadfast faith in their ability to win. Not because they deserve it or because they’re better than others, but because they have to…being great is simply the only way to live.

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Tags: greatness, Motivational Quotes

When to Quit and When to Stick

2009-04-16T14:03:00.000-04:00

I’m a big fan of quitting. Sometimes it’s just the right thing to do. Get rid of the dead weight every once in a while, I say! Sometimes when you’re in a business that’s just not working or when you have an investment that’s not performing, it’s just the right thing to do…cut it loose! One of the mantras we hear all the time is “never quit”. It gets ingrained into our psyche. We think if we quit, that means we fail. I want to discuss very briefly when it’s good to quit and when it’s good to stick with it. I’d also like to get your thoughts on this.

Time to quit

Quitting does not mean failure. Some things don’t work. You don’t need me to give you all the common examples of failures leading up to success, do you? Michael Jordan is famous for pointing out that he’s missed the game deciding shot many times more than he’s made it. He’s missed more shots over all by far than he’s made. Yet no one considers him a failure…sometimes you simply write off your misses and move on to the next shot. You may not think playing basketball is a fair comparison to a business you’re in that’s failing or an investment you’re holding onto even though it’s losing you money, but it is a fair comparison under one condition. If your goal is to be *successful* in business…if your goal is to be *successful* in your investments, than you need to let the losers go. Jordan doesn’t stop the game and demand to keep trying the same shot over again until he makes it. He missed. It’s over. The clock keeps ticking. Life keeps on going. You move on. You move on to the next shot. In life, your next shot can be the next business. Your next shot can be the next investment opportunity. If it’s failed, don’t stand in one place, and for God’s sake, don’t continue to lose money if the plan doesn’t work. Learn, and move on to the next shot.

When to stick

Here’s when it’s NOT time to quit:

It’s not time to quit just because your business is changing and has become more difficult lately.
It’s not time to quit just because you’re not making as much money as you were last year.
It’s not time to quit just because you’re not having fun anymore.

These reasons are common reasons to quit, and they are not good reasons. The question to answer is this: what’s your next move? If you can answer this, and you can show yourself that you have a better opportunity, take it. Even if you have a successful business…if you have something better (more fun, more profitable, etc), go for it. The point is that any business is going to have income fluctuations from time to time. Any business is going to get tough, need reworked and require an immense amount of effort from time to time. These are not reasons to quit. They are reasons to turn it up, to get creative, learn new things. You can make ANY business fun and worth doing. But building that sucker is going to take some dues paying. Don’t quit because it’s tough, because it’s going to be tough either way. But when you know you’ve missed your shot, don’t sweat it. Cut your losses and move on to your next shot. Remember, the clock is still ticking. You’ve got time.

When do you think is the right time to call it quits on a business or investment?
Have you ever just moved on and been really glad you did, or really un-glad you did?

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Articles on Blogging for Business

Tags: Building a Business, How to Invest, quitting

Sales Meetings: Good or Bad?

2009-04-16T14:02:00.000-04:00

I had a sales meeting today. It’s good seeing my team, and I think it’s essential to touch base and make sure we’re on course. But today’s meeting also made me think about how sometimes we do things just because we get used to doing them a certain way…we need to question this type of thing from time to time.

I would much rather work…than TALK about working, you know what I mean? I think it’s time for us to revisit sales meetings and make sure we’re making productive use of our time while we’re there.

Do you have anything in your life that you’ve been doing the same way for a long time, that you feel may be time for review? Change can be good…

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How to Create Predictable Income When You’re in Sales

Tags: change is good, sales meetings

Motivational Quotes: Gustave Flaubert

2009-04-16T14:00:00.000-04:00

Gustave Flaubert had it right when he said…

Be regular and orderly in your life, that you may be violent and original in your work.

I heard this quote today on NPR, and I lament not being able to remember the author’s name who mentioned it. It’s just one of the things you hear or read, and it strikes a chord with you. Let me know what you think!

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Tags: Gustave Flaubert, Motivational Quotes

Guys…the Downturn is Not Over

2009-04-16T13:58:00.000-04:00

CNBC, Jim Cramer, pundits left and right today are talking about the DOW going up, how things are looking good now, and NOW is the time to get back into the market. NOW is the time to buy big homes, new cars, stock in bankrupt companies, etc. I guess…is that what they’re actually saying? I mean, seriously?

Is anyone not looking at the fact that we lost well over 600,000 jobs last month? Is anyone not taking into account that the only money that’s moving right now is the money we PRINTED? I’m no economist, but until an economist or someone who knows what they’re talking about can explain to me why spending money we don’t have leads to prosperity, then I’m going to keep on believing that wealth comes from actual work…not buying stuff. I’m going to keep on working, living beneath my means, saving and investing in my own business and not buying stuff just because Uncle Sam tells me it’s my duty to do so.

Wealth comes from within…it does NOT help your neighbor for you to go out and buy a car you can’t afford. Just sayin…

BTW, I don’t write about this economic stuff thinking that I have all the answers. But so far, no one has convinced me that we’re going the right direction. I honestly think we’re headed for a really rough time ahead. I think the world owes us a lashing.

It’s really, really important to understand your market. You cannot profit and prosper if you don’t even understand the environment you’re in. If you believe all the guys telling you that a recovery is just around the corner, you will be compelled to take action on that. Again, I don’t claim to have all the answers, but I urge us all to think critically about this kind of thing. If you think the market is coming back, maybe it’s a great time to buy some Citi…right? Careful, now…I’m not buying into that noise. That’s my two cents. I don’t think the downturn is over by a long shot. It doesn’t mean your business cannot prosper…even explode in this economy. But plan accordingly.

Do you think the downturn is over?

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Tags: economic downturn, economic recovery, recession

How to Create Predictable Income When You’re in Sales

2009-04-16T13:57:00.001-04:00

The biggest criticism of being in sales is that it’s so unpredictable. “Hogwash”, I say! But wait…most people in sales DO have hugely unpredictable incomes. So what gives? Is it really possible to make an actual, consistent income when you’re self-employed? I argue that your sales income, even in real estate (my main business) can be consistent, no matter what happens. Is the economy taking a downturn? Yes. So what? You can still get the job done. If you’re not selling, you’re selling the wrong thing, and you have a LOT more flexibility and power at your fingertips than you think you do.

I was talking with my team earlier today, and the point I tried to get across is that people buy when they NEED to buy. Right? So, let’s say you’re out there working your tail off…and people are not buying from you. What gives? Am I an idiot? Is this proof that sales in not the career for you? No. I’m right. You CAN make consistent income in sales…in any business. I will say it again: If you’re not selling, you’re selling the wrong thing.

Here’s the deal…if you’re in real estate, car sales, or any industry that’s being massively transformed as we speak, there is HUGE opportunity to make a great living. But most of you (I know; I talk with you guys every day) are either keeping your nose to the grindstone, doing the same work and hoping that if you just work hard enough it will all pay off in the end, or you’re waiting for the economy to “come back around” or for things to “go back to normal”. Admirable…but the effort is misplaced. Please believe me.

I read a post on Michael Martine’s site just a minute ago, and let me tell you, he hit’s the nail on the head. Here’s just a small part of what he says in this smart article:

If your fortunes rise and fall with the economy, what you sell isn’t necessary to people. People will always buy what is necessary, no matter what…If you go through boom-and-bust cycles, it’s probably because you’re an “opportunity chaser,” as internet marketer Rich Schefren puts it. Everything you do should point like a laser to a focused long-term strategy.

I highly recommend following the link above, and reading the whole article. But suffice to say, sales people get it wrong when they just chase after deals. It’s not what sales is about. It’s NEVER been what sales is about. Sales is not about closing deals. The sooner we wake up to this, the sooner we can get on with our lives and go actually create value for others and create wealth, instead of just chasing dollars.

Unemployment is rising, and many people are getting into sales-related jobs. Many people are getting into blogging (another sales-related business…if you want to make any money at it anyway). So to me, it’s crucial to point out the facts regarding what it takes to be successful in sales. Real estate people screw this up royally. I speak from experience; I’m in the real estate business. It’s easy to chase after the deal. It only makes sense…it’s how you get paid, right?

Here’s the thing: being in sales is about providing a valuable service, and if you’re in a position where you need to make a sale RIGHT NOW, you have no business being in sales.

That said, how do you make consistent income in sales? Here’s the answer…prospect, qualify and close. Most sales people just do step three. Anyone who comes into their midst, they close. Close, close, close. Guess what. Maybe this isn’t a person who needs what you’re selling right now. And if all you’re trying to do is close, guess what you’re selling? Nothing. A sales transaction is a transfer of enthusiasm from one party to another. It’s a power play, every time. And if you’re in sales, you damn well better have a healthy motive for doing what you do. You have an ethical responsibility to your customers. I’ll get off my soapbox now, but you know I’m right about this. If your main motive is to close, without prospecting and qualifying, then the only thing you’re doing is attempting to part one more poor sap from his money, regardless of his needs. Now, that is not the kind of career you want to have. See, people think “the close” is what salespeople are all about, and the reason they think that is because we’ve earned that reputation…one bad deal at a time. But let me tell you what good salespeople, the top performers who are successful over decades will tell you…”the close” is the last thing on their mind when they’re talking with a prospect.

Prospecting and qualifying are huge. They are the steps most sales people skip. The reason they skip them is because they are uncomfortable and not nearly as fun as “making money”. It is what separates “the men from the boys” as they say. In a nutshell…when all you do is close, you’re just chasing deals, and that makes your income susceptible to any winds of change that will inevitably blow through your career from time to time. If you prospect and qualify people everyday, you accomplish two things that are vital:

You are in a process of constantly building a pipeline of people who are either interested in what you do or who may become interested in the future. Your pipeline is what makes your business a business. Your pipeline is what makes your business recession proof. It is your foundation. Without prospecting you have no pipeline. Without a pipeline, your income will never be consistent.
Through constantly qualifying new prospects as they come in, you are forced to get intimately in touch with what you’re actually offering. You are forced to become keenly aware of the value you offer, where you can help and what you can do to improve yourself. You are discerning the customers needs and closing on yourself, not the prospect. The question is “how can I help?”, not “how can I close?” Perhaps there’s a match, and you can do business. Perhaps not. Either way, it’s all good, because you have a pipeline, and if this person is not a good match for what you do, then all you need to do is continue on to the next prospect.

See, sometimes you may need to talk with many people to find a good match. But when you prospect and qualify, then the “close” part of the equation happens naturally, almost automatically. And a lot of times the customer will literally give you a hug afterward. If you are not regularly getting hugs from your customers, you’re doing something wrong. If you’re business is online, then maybe that’s a bit of a stretch, but I will tell you the truth, I’ve been invited to dinner. I’ve been given a beer (yes, I accepted), I’ve been given many hugs. I mean this literally, not figuratively. If you’re not regularly getting hugs (be they real or virtual), then you’re not prospecting, you’re not qualifying, and you’re not building a recession proof business.

Are you waiting for the market to “come back around” or “go back to normal”? Cut it out. Get on the phone, get to work. Become a real salesperson, or go get a “real job”.

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Tags: Building a Business, create income, Create Wealth, success in sales

Is Starting a Business too Risky?

2009-04-16T13:43:00.000-04:00

Jim Collins is interviewed in the latest issue of Inc. I loved this interview and wanted to share one piece of it with you. You may know Jim Collins from his writing. He’s the author of “Built to Last” and “Good to Great”, two best-selling business books. He has some poignant insight to share here. My favorite part of the interview was when Collins talked about the different between ambiguity and risk as they relate to running a business. People think going into business for yourself is risky, while getting a job is less risky. I’ve always felt working for someone else is ultimately a bigger risk, but Collins states his case here a lot better than I have myself. Let me know what you think! Here’s his response to a question regarding risk management being an essential part of entrepreneurship…

Not risk. Ambiguity. People confuse the two. My students used to come to me at Standord and say, “I’d really like to do something on my own, but I’m just not ready to take that much risk. So I took the job with IBM.” And I would say, “You’re not ready for risk? What’s the first thing you learn about investing? Never put all your eggs in one basket. You’ve just put all your eggs in one basket that is held by somebody else.” As an entrepreneur, you know what the risks are. You see them. You understand them. You manage them. If you join someone else’s company, you may not know those risks, and not because they don’t exist. You just can’t see them, and so you can’t manage them. That’s a much more exposed position than the entrepreneur faces.

Let me know what you think! I think this viewpoint is timely because entrepreneurship is on the rise. More and more people are looking into the possibility of taking the risk upon themselves. Of course, if you’re inept at handling or understanding risks as they relate to your business, then you’re in for trouble. I think the failure rate at business is not because business is risky. It’s because so few of us are actually good at it.

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Tags: Building a Business, inc magazine, jim collins, manage risk, starting a business

How to Get Rich

2009-04-16T13:41:00.000-04:00

The almighty dollar. OK, here’s how you get it…

Set a goal.
Make a plan to achieve said goal.
Work like a dog. A well-groomed, well-mannered dog that is.

Guess what. You may not ever make $10M. You may not ever make $100M…whatever your goal is does not matter. That’s what I’m talking about. My personal goal is $10M (adjusted for massive inflation, of course). I think it’s a reach, yet reasonable and achievable. For others, it won’t be. For others still, it’s a huge undershot of what they’re capable of. They’ve long since HAD $10M. It doesn’t matter. The amount of money…doesn’t matter.

Why Money Doesn’t Matter

How many times do we need to hear that it doesn’t take any money to bootstrap a new business and eventually grow it into an empire? How many times do we need to hear that it doesn’t take any money to take advantage of a particularly compelling investment opportunity? Creativity, ingenuity, financial literacy…all are required for a compelling winning streak in business. Money is a resource that can be brought in and that can make many things work better, but without the other components, you’re just a fool with money. And you know what the Good Book says about that scenario…

What Rich Really Means

The point is…have a goal, make a plan, and work. When you do, you just may make your goal. Having a goal, working towards it with fervor, this makes you a better person. It makes you stronger. It teaches you about yourself and others. Sustaining the journey toward a large goal forces you to fine tune your life, make sacrifices and continually grow. It’s the striving and the lessons you learn, the team you build in the process, the knowledge you acquire…that make you rich. Not the money.

A Classic Lesson from The Donald

Do I need to reiterate the tale of when Donald Trump was billions of dollars in the red? Do you think the man was a failure? Do you think he was a loser? Do you think we was poor? No. Even when he was massively in debt and hemorrhaging money, Trump was wealthy. He successfully renegotiated all his obligations, reworked his business and pulled through it all to go on and make billions more. His wealth is in his mind. It cannot be taken away. It cannot be lost. Such is the case with all of us as well.

BTW, in case you care, I will say I am not yet even close to the $10M. It’s a process I may not ever make my goal. I think I will. Doesn’t matter though. When I do acheive the goal, another will simply take its place. When I die, it’s all going to be over anyway. I don’t want to be remembered for having acheived all my goals and having lived a sweet life. I want to be remembered for having worked hard, for having never given up, for being someone who created massive value for others. I want to be someone my kids can emulate…and if they do, they will end up doing well in life. To me, that is a legacy. Way better than a stack of money. If we can do these things, we have lived well. It just so happens that if we do these things, we also are likely to get rich as well. Call me a sucker, but I believe it.

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Tags: goals, How to Get Rich, success, success in business

How to Make Money Fast

2009-04-16T13:39:00.000-04:00

Stop whining, and go work your tail off. Stop looking for short cuts. You’ll get there quicker if you just get to it. No matter your business, you can go kill it, or you can suck up all your resources trying to look for the “trick”. Yes, there are lucky breaks and unique opportunities that come about every now and then, but if you’re not out there fighting the good fight, getting your hands dirty every day, you either won’t even recognize the opportunity, or you won’t be prepared for it.

Yes, you can make money fast…as long as you’re also willing to make it slow as well. Take it as it comes. In my experience, everyone who seems to want to make money fast, is not willing to make money any other way. The business has the be the perfect business. The product has the be the perfect product. The opportunity has to be the perfect opportunity… Guess what, none of that exists. This is why I’m not impressed when people tell me they have a “great new business that’s exploding like crazy right now…you gotta get in on this!” Guess what…EVERY business is exploding right now. There are people in every business that are making a killing, and there are people in the exact same business that are being killed. Wealth and success are in your mind, not in anything external.

Yes, fast money is very much a reality. I know dudes out there making over $100k a month. That’s pretty fast (for me it is anyway). Yet, the richest people I know still gas up their own cars and will do a favor for me if I ask nicely…and they’ll help you out for free. It’s not about making money fast. It’s not about making money at all. Money is not the problem that needs solved, my friends. It’s about being the kind of person that creates massive value for other people, and as a result money is never an issue. And that only comes from hard work daily.

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Tags: How to Get Rich, How to Make Money Fast, success

How to Invest in Real Estate in Today’s Market

2009-04-16T13:38:00.001-04:00

This is NOT a post trying to pump-you-up, trying to get you to buy real estate even though the market is really “bad”. This blog is about “how to create wealth despite the economic collapse”, so investing is obviously something I still believe in. It’s also evident I’m arguing that the significance and magnitude of this downturn should not be underestimated. I’ve been accused of being very negative about the economy. It’s also been pointed out to me that I’m inordinately upbeat about the opportunities that lie ahead for us considering my dire outlook on the economy. I plead guilty to both. So here’s the bottom line: I think the downturn in real estate and the economy in general is just beginning. We’ll continue to see significant numbers of foreclosures, decreases in sales of existing homes and especially in new homes. Prices in markets like mine…Lafayette, Indiana will continue to see somewhat stable prices, but overly inflated markets like Vegas, San Francisco, Miami, etc will all continue to see notable price decreases. We have a long way to go.

Learn to Look at Real Estate Differently

While markets like mine (Lafayette, IN) in the Midwest will likely see much less acute price declines, we would be remiss to neglect considering that if the dollar declines in purchasing power, as many expect it will, than while prices may be solid, actual value will be declining. In other words, if your home is worth $200k and the dollar loses 10% of it’s purchasing power, your home would have to go up to $220k to be worth the same. Does that make sense?

So with all this horribly negative news, how can investing in real estate possibly be a good idea? I have a couple things to say about that:

First, it’s NOT “horribly negative news.” The rules are simply changing. It happens. When the game changes, it doesn’t mean no one can win. It means you need to play by different rules. That’s all. There’s no such thing as a “bad” market. Conversely, there’s really no such thing as a “good” market either. There is just the market, the rules, winners and losers. If you learn the rules and play to win, you have a chance to create wealth…in ANY market.
No matter what happens around us, there is opportunity. We can create value and build wealth today. That is a fact. But it’s true that the days of easy money are over. I’m no guru or futurist, but as of yet I see no reason why easy money and the ability to use your home as a bottomless ATM should ever come back within our lifetimes. So if that is your definition of wealth, I’m sorry to say that rough times are ahead. Very rough. But there’s a strong argument that all of this wealth we’re losing right now wasn’t real to begin with, that we’re literally not losing that much. That may be a bitter pill to swallow, seeing as how many of us ARE losing jobs. We ARE losing our homes. But as the argument goes, the jobs we’re losing are jobs that should have never been created to begin with. The homes we’re losing are homes that should never have even been built.

The Payback for Easy Money

This is a painful, disillusioning consequence to having lived in a world for many years where money was way too easy. All you had to do was buy a home (with no money down of course), and you would automatically become a millionaire in just a few years if you played your cards right. And if you lost your job, all you had to do was buy a vacation home (with no money down of course), and live off the appreciation of $100k a year. Sound ridiculous, doesn’t it? Unfortunately, that is literally what we’ve been doing. And it worked, for a little while. But it wasn’t real wealth, and now it’s all evaporating. And after living in a fantasy land for years, who can blame us for being disillusioned now? But disillusionment does not mean opportunity has vanished. But it’s true, if you keep looking in the same places, you are not going to get very far.

Where to Look to Make Money in Real Estate

So, where IS the opportunity right now? I’m a big advocate of rental property right now. Not all rental property everywhere of course, but rental property in certain markets really seems to make sense. We have looked to real estate for appreciation for the last several years, but appreciation is only one of many ways real estate can make you money. Stop looking at appreciation, and instead, look to win in other areas…

Here’s a real world example to illustrate. I wrote an offer on a duplex (this particular one didn’t turn into a deal, but regardless…the numbers are real and will illustrate my point) for $60k. It had about $1200 a month income from rents. I would be putting $12k down. There are deals like this all over my Lafayette, Indiana real estate market and many other Midwest markets right now. As I’ve said, I expect actual values to decline. Appraisals are difficult and credit is tight. Let’s say the value goes down 10%. Does that mean I lose $6k? Only if I buy the property outright. I am only putting down $12k, remember? So, I would lose 10% of that…$1200. Not that I like a loss, but every business has expenses, right? Look at the cash flow…$14,400 a year. The net taxable income, with maintenance and everything ended up looking like about $7200. So I put down $12k and get a return of $7200 a year. Ask me again if I care if the equity goes up or down a little. I’m getting a 60% cash on cash return. I’m not a multimillionaire or anything, but I can’t see how a 60% return in a “bad” economy is going to hurt…and it’s certainly not anything to scoff at! Still think real estate is bad? And guess what…if prices go down next year, do you think I’ll like this market even more? You bet I will! I tell you, since when is affordable housing a bad thing?

We’ve been addicted to rising home prices for way too long. I argue in any market there are winners and losers. But in the bubble, we had homeowners paying $500-600k for a crappy house. How…tell me how is that a good thing?

Hey NAR, Are You Listening?

I’d like to use this opportunity to say that while I see a lot of opportunity in real estate these days, I unfortunately think the National Association of Realtors (NAR) has lost a ton of credibility in recent years. Especially their chief economist Lawrence Yun, who is perpetually saying that a recovery is just around the corner. Realtors, I hope, will learn that a recovery is NOT just around the corner and it is in fact not our job to predict the future and simply feed off high home prices. It is our job to provide a valuable service and work in the best interest of our clients, even if that means holding off on a sale or purchase.

I’m calling for an overhaul of our industry, where Realtors stop focusing on “closing deals” and start focusing on helping clients. The idea that your personal home is an asset you can use to build wealth is a weak and faulty sales pitch. It’s not true, and it’s never been true. A home is a necessary and worthwhile expense for many people, but it is NOT a wealth building machine. The myth needs to end, and I challenge NAR to be a part of spreading the word. I encourage them to fire Yun (or at least give him a new set of scripts to spout when he’s in front of a camera). As Realtors, we have an opportunity to offer a tremendously valuable service to home buyers and sellers, OR we can continue just trying to slam deals together no matter what it takes. For me, I’m focusing on service, and I encourage all Realtors and the NAR to do this also.

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Tags: Create Wealth, How to Invest, how to make money in real estate

8 Ways Your Business is Losing if You’re Not Blogging

2009-04-16T13:35:00.002-04:00

Blogging itself is not news of course. I’m compelled to cover it semi-regularly here for two reasons. One, blogging has transformed my business in many positive ways, so sharing it with others seems only natural. Two, while blogging itself is not news, the medium is constantly evolving and growing increasingly relevant for small business owners. I find that while most business owners seem to know what a blog is, few understand the massive relevance to their business. It is seen primarily as a frivolous, optional add-on to their already overextended marketing budget.

The truth of course, is the opposite. In an fast-approaching and inevitable paradigm shift, blogging is becoming indispensible and it’s traditional marketing that is becoming irrelevant…and frivolously expensive when compared to how much damage you can do with a blog. So, here’s a list of 8 reasons you are losing business by not blogging. Perhaps this will help make the importance clear.

One note I’d like to stress is that when I say “paradigm shift”, I mean it. Business owners need to start thinking about marketing differently. The focus of My One Hundred Things is “how to create wealth despite the economic collapse”. So it stands to reason that a tool which can greatly extend the reach of your business, improve the quality of the contacts you make and draw a lot more business your way, for a LOT less money, is certainly a tool which needs to be covered here. The problem is that most business owners still look at blogging as another old school marketing tool, which completely misses the point. By learning to think differently about marketing altogether, perhaps blogging will become a more natural solution for business owners. Anyway, it’s what your customers want, so you better start giving it to them.

You’re losing word of mouth advertising - Any business owner I talk to would be quick to admit that word of mouth advertising is the best advertising they can get. Owning and operating a blog enables you to be part of the conversation online. People ARE talking about you, you know? If you have a blog, you have way more than a traditional website, you have a personal presence…one people are comfortable and happy to send their friends to and talk about. People are a lot more comfortable referring someone they know to you if you have a personal blog, as opposed to a traditional static website. It makes you more personal, more approachable, if people can read about you and get a feel for what you’re like. Yes, people like to stalk. If you’re in business, and you want people to do business with you, why would you not want to be part of that? On the flip side, when you DO have a blog, you can set the record straight anytime someone’s talking trash. You can also build a strong community of people who are advocates for you. Strong bloggers eventually build networks consisting of thousands of people who consistently link to them, send them traffic and talk positively about their content. This is word of mouth for the 21st century.
Your name is being dragged through the mud, and you don’t even know about it - People are talking about you. The process of learning how to blog is about a lot more than just writing an article every now and then. It’s about networking. Having a blog will teach you how to be part of your online community. And don’t think you don’t have one…you’re just not aware of it. If you own a business and you’re doing business with people, people are LOOKING for your blog, right now. And they’re not finding it. They’re commenting on other blogs and forums about you, and you’re not there to be part of the conversation.
Your competition is establishing themselves as the expert, while you are quickly becoming irrelevant - Blogging is personal. You don’t use it as a way of simply placing ads or “building a list” or making sales. You’re selling yourself. You’re telling the public about yourself. You’re networking. You’re having a conversation with people. What happens when you do this is people learn that you actually have a lot to say. This is a good thing. Of course, this is assuming you DO have a lot to say. If you’re not actually creating value for your customers at this point, that will become apparent also. It’s best to either BE good, GET good, or NOT blog. Having a lot to say about your industry and how you can honestly help your customers and maintaining a blog together are a very dangerous combination. If your competition is blogging, and you’re not, they are quickly and quietly building a very compelling network of people who love them and who don’t even know who you are.
Customers are simply not connecting with you, so they don’t buy from you - This is an inevitable consequence of not having a blog. Seriously, it’s that big a deal. First, search engines love blogs (well-built and actively maintianed ones that is), and if you don’t have one, you’re missing out on a lot of love from the search engines, which means your getting a lot less traffic than you should be. But it’s a deeper problem than that. The type of content people want is different than what it was 5 or so years ago. Yes, things have changed that quickly. People don’t want static content. They don’t want boring ads that talk at them and tell them what to do. They want interactivity. They want to connect with you. Think about this…they WANT to connect with you and like you on a personal level. It’s how they make buying decisions. Your static website is most likely turning them off. Your competition that IS blogging realizes this. They’ve learned to think of marketing differently. They’ve realized that they can connect with many thousands of people this way, on a personal level and massively extend the reach of their business. Your customers are connecting with them, not you.
Your expenses are getting out of control, and the money you spend on traditional marketing gives you a less impressive return each year that passes - Let’s face it…traditional marketing, like newspaper and magazine ads, mailing campaigns, billboards, etc…they are getting more expensive each year, and they are getting LESS effective each year. Anyone who’s been in business for more than 5 years knows this intimately. How long can you tolerate your expenses rising coupled with more and more inept returns on your advertising dollars? When you look at this commonly understood fact, it’s obvious that you need to make a change somewhere, isn’t it?
The quality of the contacts you make is going down, which means your return on investment is going down - Like I said in #5, traditional media is getting less effective. The reason is because people are drowing in advertising. If it doesn’t connect with them personally, it’s unlikely to have any effect on them whatsoever. That’s not very much bang for your buck, is it? Traditional marketing is based on “interruption marketing”. The idea is to jolt your attention and get you to notice an advertisement that you ordinarily not be interested in seeing. People have built up some serious walls to this type of advertising. Social media connects with people on their terms. Believe it or not, people want to buy cars, books, appliances, all types of services, or whatever it is that you’re selling. If you connect with them on their level and on their terms, they will love you for it, and they will buy from you. That’s what you can do with a blog that is impossible for you to do with traditional advertising.
You have a lot of talent and expertise that is not being shared - Blogging is therapeutic. As a business owner, you have a lot to say, and blogging can be a channel for all that expertise. Not only is it good for your business and good for your customers, it’s also good for you. C’mon now, let it out!
You are losing your most valuable asset of all…your time - It is a myth that blogging has to take all your time. It can. Make no mistake about it. But it doesn’t have to. As a business owner, you know that time is your most valuable asset. And you know that time is money, right? So stop wasting money on advertising that doesn’t work. You know it isn’t pulling it’s weight lately. I say this confidently, because I know you know it’s true. I’m in the real estate business for example, and I know for a fact that many Realtors are dropping print advertising and mailing campaigns altogether. It just doesn’t work. Yet NAR reports that less that 8% of Realtors have a blog. What gives? You can’t do NOTHING to promote your business. You need to simply do what works.

Blogging will force you to learn new things. It will certainly be a learning process. And it will take time. It’s not a magic bullet. It’s one of the things we need to learn as business owners…good things take time. Blogging will not pull immediate results like a banner ad will. But blogging also will not cost you several hundred dollars a week. And once you get past the start up period, the online network you’re able to create will continue to reward you passively for the life of your business…and if you do it right, it will even continue to reward you beyond that…even if your current business fails for whatever reason, your network will know you, they’ll understand you, and they’ll support you in your next venture as well. What kind of newspaper ad can do that?

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Tags: Blogging, Building a Business

Motivational Quotes Series: Zig Ziglar

2009-03-23T15:41:00.000-04:00

“It’s your aptitude, not just your attitude that determines your ultimate altitude.”
Zig Ziglar

Zig is the man! Known for his classic sayings and permanently applicable wisdom in the sales and motivational field, I never get tired of reading this guy’s books, and watching his talks. This quote really hit me today for a simple reason…I just wrote a post about how the rules are changing. Creating wealth is a new game…everyone in any investing arena will tell you nothing that worked two years ago works today. Not only are people changing their game plans, they’re changing their entire portfolios around.

I’m a huge advocate of investment real estate and other real assets like gold and silver. I’ve never personally understood financials; investing in the stock market would be purely gambling for me. If you don’t understand what you’re buying, it IS gambling btw. The reason I mention this is because all of this change requires us to read…a lot. It requires us to network…a lot. We need to learn how to invest all over again.

As Zig Ziglar says, it’s your aptitude…just as much as your attitude that matters. I think we have a ton of things to be positive about. There is huge opportunity to create wealth in today’s market. But it cannot be empty positivity. That just won’t get the job done. It’s one of the huge reasons I started this site. There’s a lot to talk about. There’s a lot we can learn from each other. There’s a LOT of work to be done and a LOT of new rules to learn and internalize. With wealth comes responsibility. I guess that means it’s time for me to stop writing and get back to work…

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Tags: Create Wealth, How to Invest, Motivational Quotes

38 Recommended Articles on the Economic Collapse

2009-03-23T15:40:00.000-04:00

Reading a bit each day from different minds really has helped me get a handle on what’s happening these days. I don’t pretend to be a guru or expert myself, but there’s a lot of good writing and honest commentary out there…no one has all the answers, but spend some time each day absorbing ideas other than your own. It enables you to form your own opinions.

If there’s anything that you need now more than anything else, it’s a plan. You need a plan to survive and thrive no matter what happens. And believe me…this, I’m sure, is in the cards for you…but not if you don’t take time to make a plan. I say this not because I’m convinced that I know exactly what will happen, but because I am positive that SOMETHING will happen…the rules are changing significantly, and that means we need to change and adapt.

Anyway, here are some articles I’ve read over the past couple days. I hope they provide you some things to think about and bend your mind a bit. That’s what they did for me.

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Tags: AIG, bailouts, depression, Economic Collapse

Economic Collapse - How the Downturn is Good for Your Business

2009-03-23T15:38:00.000-04:00

A couple thoughts I wanted to share with you regarding the economic
recession we’re experiencing. All we hear is bad news of course, but I
argue there are a lot of upsides…

If the recession causes us to save more money and spend
less, I say “Bring it”.
If the recession forces us to look at our businesses
critically and get creative, adding value for our customers in new and
innovative ways, I say “Since when is innovation and creativity a bad thing?”
If the recession requires that we cut off any dead weight,
run our lives leaner and cut any wastefulness from our lives, I say
“Thank God. It’s about time.”
If the recession means we fix our car
instead of buying another new one that we can’t really afford, I say
“Good call. Fine by me.”
If the recession means we only create jobs and hire people
for positions we know are essential, productive and sustainable, I say
“Those the exactly the kind of jobs we need.”

This economic recession, collapse or whatever you want to call it is
not over. The latest bump in the stock market may very well prove to be
shortlived…a few months to a year or so. And then what? Lower numbers
than ever before is what. The problem is that we’re in the hole as a
nation, and all we’re doing right now is to simply dig the hole deeper.
It has yet to be explained to me why this insano logic is the right
call, but be that as it may, it IS the direction we’re headed. And I’m
not worried about it one bit.

We Will Survive

We will survive, and thrive, yet again. We got through the 70’s, and
aside from some really bad movies, we got through it just fine. Some
pundits are professing we’re facing much worse than that, and I don’t yet see a
strong argument as to why that shouldn’t be the case. Just the same,
I’m not worried about it, because what we do as individuals, as human
beings, will always remain intact.

The world is changing. Guess what…that’s not news! Change is imminent
today, just as it has always been. I think many of us here in the US
simply find it inconceivable our currency could go completely belly up.
Forget the fact that we’ve killed one currency already, and forget the
fact that currencies have died one after another for all of recorded
history…we somehow STILL think it will never happen to us.

Again, I’m open to the argument as to why we’re somehow now beyond this, and how by behaving the same way nations have in years past we shouldn’t expect
a similar result. But so far, no one has even approached explaining it
to me. All I’ve heard so far is that we don’t know it won’t work. And I
have to admit that’s true. On a fundamental level of course, none of us know a
damn thing. That said, wouldn’t it be prudent to ere on the side of
historical precedent? I don’t know…perhaps we WANT this
kind of change. I feel it’s entirely possible that the American people
simply desire a Facist-type scenario right about now. As I’ve
said…things change.

How We Create Wealth Changes

How we strive and thrive is bound to change. How we define wealth is
bound to change. If you’re definition of prosperity and wealth are so
narrow as to only include an MTV Cribs-type life, well then you are a
very limited individual who needs to crack a book every now and then,
aren’t you? My point? This downturn is real, it’s not over, it’s
awesome, and it is bringing about just as much opportunity to create
wealth as it is killing. But make no mistake…it IS killing certain
opportunities. It is not time to wait for things to “go back to
normal”. Normal, my friends, is dead. New rules, new paradigms, new
game plans and business models are the order of the day. Fast is just
as important as good. Don’t know the new rules, you say? Neither does
anyone else…that’s what makes this time so turbulent and awesome. Pure, unadulterated opportunity is born of chaos, and I think what we’re experiencing today is nothing short of that. And it’s just beginning!

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Tags: change, Create Wealth, Economic Collapse, recession

You Can Do Everything, But You May Not Be the Best at Everything

2009-03-23T15:36:00.000-04:00

I just received a nice pdf from a friend of mine in the real estate business. It’s a list of Positive and Powerful One Liners…He does title insurance in Lafayette, IN, which is the market where I practive real estate actively. I invite you to check it out and let me know what you think!

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Tags: Motivational Quotes

Are Realtors Simply Giving Up?

2009-03-23T15:35:00.001-04:00

I’ve been writing a lot and networking with Realtors about blogging and using internet marketing to expand their businesses. It’s interesting, because I’m seeing a couple of different things right now. One, I see a few real estate people really growing around the nation, rising to meet the challenges of our current economic recession and benefiting enormously. And two, I see a LOT of real estate people really struggling. Many are quitting. I came across some tidbits yesterday and today that really make me wonder what’s happening in this business. I’ll get to that in a second…

I love real estate, but I know I can often make false assumptions that other people think like I do. Not so. In fact, sometimes people do the exact opposite of what I think they should do. Can you imagine? Ha. Example: when times get tough, I naturally turn it up, find new solutions and new ways of generating business and keeping things alive. Starting a blog and social networking and been a big part of that for me. Yet, I’ve seen some things lately that make me think it’s possible that most other Realtors are simply giving up. Is this true? I network with a lot of Realtors…c’mon and let me know if you’re out there trying to improve your career, or are you really just waiting for the market to recover?

In the process of trying to grow and mature the focus on this blog, I’ve thought of taking more of a real estate focus. I am in the real estate business after all…so in the process of researching some more real-estate focused keywords for this site, I’ve seen that there simply is very little demand for information about improving or growing your real estate career. For example, guess how many people searched for “realtor sales training” last month? 58.

“short sale training for realtors”…16

“realtor coaching”…170

“real estate sales training”…1300

“real estate coaching”…2900

These might be numbers I can work with, because I honestly don’t need huge numbers to make my business work, but these numbers were staggering to me. Of course, this is only a very short list of all the keywords I pulled up. Out of well over a million real estate agents in the US, in the middle of one of the most difficult markets ever, and we only have a few thousand people looking for help, extra training or coaching of some kind. Can anyone explain this to me? If these were daily numbers, I still would have been surprised. But no, these are monthly numbers. To be honest, I am really amazed at how little my industry seems to be interested in helping themselves.

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Why I Think Most Realtors are Wrong

Tags: Economic Collapse, realtors

Should You Sell Your Home in Today’s Real Estate Market?

2009-03-23T15:29:00.000-04:00

This is an interesting discussion between Peter Schiff, owner of Euro Pacific Capital, and a caller to his radio show. I would love your thoughts. By the way, if you are viewing this post via RSS, you will probably need to visit the site directly in order to view the video. Comment and tell me what you think of this…do you think you will be able to pay off your home with a can of coke? How does this translate to you regarding the purchasing of investment property? Are the present economic issues a strong argument for buying rental property right now? I think so.

It just seems interesting to me that there are even people talking about all this craziness these days. Of course, we have time to turn these negative inflationary forces around, and if you ask me, I will tell you I believe in America. I believe in our system, and I don’t think we’re going to let it get too far. But I AM convinced that we have a very difficult time ahead. How difficult, that just remains to be seen.

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Tags: inflation, investment real estate, sell your home

Create Wealth in Less Time and Without Burnout

2009-03-12T15:28:00.000-04:00

We’re addicted to work. I’m included. There seems to be a prevailing mentality that if you want to get somewhere, you need to not only drive 100 miles an hour, but you also need to drive all night. In other words, we work too much. I contend that it is possible to create wealth without killing yourself in the process…in fact, I would argue that if you burn yourself out along the way, you’re not only NOT going to enjoy the ride, but you’re also not going to like where you end up, because you’re going to be too thrashed when you get there…if you get there at all.

You May Not Make It. But Even Then, You Can Still Make It!

Look, it’s important to consider this…you might not get there. You might NOT make a million dollars, or 10 million, or whatever you’re shooting for. You might not achieve world domination like your business plan entails. Sometimes things do not work out. If you want to create wealth, do it now. Don’t push it off into the future. Wealth is not a destination, it’s a lifestyle. Just go live it and enjoy where you’re at, always. With all the negativity out there (there’s a lot of negative to report these days), it’s easy to not see the opportunity and the greatness all around us.

Turn the computer off and hang out with your kids. Sit down at the end of the day and play guitar instead of watching TV…these are two things I’m beginning to do more, and when I do, I’m reminded how awesome my life is. My kids, my wife…are amazing. My guitar playing is…kind of amazing. Kidding. But the point is that if we spend all our time striving, we don’t have any time left for living.

Wealth is not a destination, it is a state of mind. Do you think Trump was poor when he was broke? Think about that. When he was billions in the red, what did he do? He made it all back, and while he was doing it, he still spent his daily time with his kids, still went on vacations…it’s not about money. That’s all I’m getting at.

If You Keep Doing What You’re Doing, You Keep Getting What You Got…

Getting to the point where you’re effective in less time requires a commitment to get there. Work will always expand to the time you allot for it. See how that works? If you only allow yourself half the time to get a job done, it’s amazing how much you can get done. If fires your creativity up and gets your blood flowing. It enables you to be more effective than you would be otherwise. Unfortunately most of us don’t ever behave this way until we HAVE to. Well, you can choose to become more effective today. You can create wealth, run your business and become just as effective in half the time if you just decide to do it. No doubt you’re heard of the Four Hour Work Week. This is the basic principle. Here’s the thing: it’s not automatic. There are surely things you will need to learn. There will be new things you’ll have to try, risks that will need to be taken. Maybe you’ll need to hire some help. Maybe you’ll need to automate some things that you prefer to do manually. It will be a paradigm shift, and it will force you to stretch your mind a bit. But that’s the way it always goes. If you keep doing what you’re doing, you keep getting what you got. If you want new results…better results…you have to learn more, and you have to do new things.

A Time Management Tool That Has Served Me Very Well

Here’s one great tool I’ve used to become more effective. It’s simple, and it’s a good example of what I’m talking about, because it initially required a big paradigm shift for me. It was uncomfortable for me, and TO THIS DAY, a lot of people just don’t understand why I do it this way, but it enables me to focus and get more done. Here it is: I stopped answering my phone. I make calls, I don’t take calls. If I am expecting a call, I will take it, but this does not happen very often as you know…most calls come in unannounced. They interrupt you all day long, and it is a rare day indeed that a stream of incoming calls and emails don’t keep you flying every which way. It’s quite literally impossible to focus on anything this way.

So here’s what I did: I make a call list each day, and then I make calls. My call list includes all clients I’m currently working with, all prospecting calls I plan to make, everything. Then I sit down and make them. Guess what’s happening in the meantime. That’s right, my phone is ringing off the hook, and they all go to voicemail. They hear a message that I will call them soon…and I AM calling them soon. They’re on my call list, see?

Then in the late afternoon, I go through all my voicemails and emails, and I can just delete most of them, because I’ve called nearly everyone and addressed everything already. If something I hadn’t anticipated has come in, then I call them back at that time. This way I take care of business instead of my business whipping me around all day. Guess what else…all the stupid telemarketing calls, hey-I-just-wanted-to-say-hi calls and all that all get filtered out, and I listen to them on my own time, instead of being distracted all day. Here’s the net result: I used to rarely if ever find time to make all the calls on my list. Now it is a rare day indeed that I do not make all the contacts I need. I’m able to build a business and focus. I get more done in less time. It’s pretty simple really.

How ’bout you? Do you have any time blocking tips to share? Do you agree that it’s possible to try new things and actually learn to get a lot more done in less time?

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Tags: Create Wealth, time management

Economic Recession Extends Into Commercial Real Estate

2009-03-12T15:25:00.001-04:00

There is no doubt about it…issues with this economic recession are continuing to unfold. One thing no one has even been talking about much is the commercial real estate meltdown that’s not yet happened. Read the article in the Christian Science Monitor I just linked, and you’ll get a peak into what I’m talking about. This is why I spend so much time talking about the economy. It’s essential to know what’s going on around you…to go on investing, running our businesses and lives like usual and waiting for things to “come back around” is not going to help right now. It’s likely going to be a long time before things prosper for the US as a whole again.

We Can Still Create Wealth

I’m firmly resolved in my belief that it’s absolutely in the cards for all of us to prosper in the coming years, but it’s going to be an individual pursuit, not a collective experience. And to make it happen, we have to face facts…

The Economic Recession has Not Bottomed

Take a look at how over-leveraged our residential real estate market had become, and how it led to a meltdown. We are now contracting and heavily de-leveraging, to the point our financial system is almost at a standstill. Well, commercial real estate is even more leveraged. A LOT more leveraged. With businesses going under and employees being laid off…who is going to rent all this commercial space? Gerald Celente of Trends Research submits one very possible answer…no one. Here is a video clip of Gerald Celente giving his opinion (keep in mind this guy is hardcore; he does NOT have a positive outlook on America in the coming years, so it’s easy to discount him. Just keep in mind that he’s been predicting the market very accurately for well over two decades)…

High leverage in real estate means a couple things. One, it means you can likely not afford much vacancy. You are highly leveraged, which means you have very little equity, which means you are unlikely to have a large enough cash reserve to handle long vacancy rates. Commercial property tends to have considerably longer vacancy rates than residential real estate does. Two, it means you need a high rent in order to cover expenses. Again, low equity means high debt ratio. More debt = high debt service. All this adds up to many commercial investors all over the nation, at this very minute, piling up vacancies that they can literally not afford for very long at all. Even the property that is rented, is not commanding rental rates sufficient for covering these highly leveraged investors.

More Foreclosures to Come

I am open to other theories, but I don’t see how this is not going to lead to a massive string of foreclosures and losses which dwarf what we’ve seen in residential real estate.

Yes, we’ve seen a rebound in the stock market in the past couple days. This is a good sign that credit has started to loosen up, which may appear to be a good thing. We’ve printed trillions of dollars to get this loose, and our biggest troubles still lie ahead. I still say at some point, we are going to have to change course.

We Will Not See Hyperinflation…I Don’t Think

I believe we will change course. I believe the US will change course and do the right thing. I don’t know how far it will go before we decide the path we’re on is obviously not working, but I don’t think we’re going to allow our leaders to lead us into Zimbabwean-type hyperinflation. That WILL happen if we keep on this course, but I think we’re going to change our game plan, bite the bullet and pay for our debt at some point.

How to Get Rich, Even Today…

This is obviously the crux of the issue isn’t it? Here’s how to get rich, create wealth and prosper in today’s economy…create value for others. HUGE value. That’s it. That’s the big secret. Regardless of how it may feel to watch our nation lose a quarter of a million jobs in one single month, the world keeps on spinning. This means something critical: people need to eat, they need a place to live. They will always need goods and services. The basics of business and building wealth remain intact, and this is a huge point not to be underestimated. There is OPPORTUNITY today. But the rules have changed. It’s time to be proactive. It’s time to learn new skills, and stop looking for the answer. You are the answer. That’s how we started, and it’s where we are again today. It’s how all great things are built. It’s time to get our hands dirty. Trust me; it’s gonna be OK

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Tags: commercial real estate, Create Wealth, Economic Recession

Articles on Blogging for Business

2009-03-12T15:23:00.000-04:00

As you know, I’m a big advocate of blogging to promote your business. I honestly think that anyone looking to build a small business (smart move, by the way) this year, blogging and other social networking endeavors are definitely called for. Here are some of the best articles I’ve read lately on the subject of blogging for business. I hope they help! Let me know what you think…

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Tags: Blogging

Survey Results

2009-03-12T15:22:00.000-04:00

Let me just say that for a new blog, I’m very impressed and grateful for the input you’ve all given me on the My One Hundred Things survey. If you haven’t filled out a survey yet, it would mean a lot to me. So far, I’m compelled to improve the professionality of the design and FOCUS! Focus seems to be the main criticism. I feel many of you do not see a cohesive theme to the content on the site. To be honest I have been feeling this. This blog originally started as a personal blog, and in this short amount of time it’s become more of a professional focus for me. Where I take it will be fun and interesting. One thing is for sure, change is emiment! I am committed to providing content that you find valuable and helpful. Let me know what you think!

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Survey

Tags: survey

Success Quotes Series: Thomas Edison

2009-03-12T15:20:00.000-04:00

“The first requisite of success is the ability to apply your physical and mental energies to one problem without growing weary.”
- Thomas Edison

This quote is huge! Doing what you love is now more possible than ever. You can literally make a living doing anything. The environment is not as conducive as it should be toward small business right now, but it beats being unemployed. I think this downturn, as the depression of the 30’s did, will yield a lot of great innovation.

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Tags: do what you love, Success Quotes

Success Quotes Series: Norman Vincent Peale

2009-03-12T15:19:00.001-04:00

“Empty pockets never held anyone back. Only empty heads and empty hearts can do that.”
Norman Vincent Peale

I think this is timely…as I talk with a lot of business owners, and people are feeling really negative. It’s understandable, but don’t give into negativity people! The world keeps on spinning. I’m telling you there is huge opportunity right now, as we speak…as you read this, there is a gold mine of ideas and business opportunities you could implement as soon as you commit to it. There IS absolutely a lack of money in our nation right now. But we have EVERYTHING it takes to build greatness.

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Tags: greatness, opportunity, Success Quotes

How to Get Rich - Fear is the Enemy

2009-03-12T15:17:00.001-04:00

Do I believe things are bad right now? Yes, but do not mistakenly take this to mean I see no opportunity or reason for starting a business or continuing to invest. There is ALWAYS opportunity, and during times of massive change, there is even more. This is a great time to prosper and grow for the future. It will be tough. Success will be hard won. Guess what…that’s the way it’s always been.

Buying a piece of real estate as an investment now is trickier than ever. But impossible? Are you kidding me? Perhaps you’ll need to crack a book and learn how to put a LP together. Maybe you’ll need to network with some other investors and learn new skills. Maybe it’s time (it IS time) to meet with a damn good CPA for a new tax strategy. It’s time to adapt, learn and grow. Why? Because everyone else is broke or going broke, and they’re using that as an excuse to freeze up, including many of your political leaders. When the deck is stacked against you…that’s when you stand to win big. And what you win will be true wealth, not some fake 401(k) balance that is doomed to vanish as soon as the market corrects.

It’s time to learn how to actually build a business. It’s time to study and become a competent investor. You are your own best advocate. Get to it! Stop handing your money over to dummies with a financial advisor license. How many of us give money to a financial advisor who has less money than us? These times are over. We are accountable to only ourselves.

Fear is the enemy…and it’s a nasty presence in our state right now. A lot of people are afraid. It’s not helpful to freeze up in fear, no matter how understandable it is. In a moment of crisis, whether it’s an economic meltdown like we’re witnessing or a robbery, or a house fire…some of us rise to the occasion and are heroes. And some of us succumb to the flames. Not because we deserve it, but because we froze up in fear. Don’t freeze up. “Go crush it”, to quote my newly found mentor Gary Vaynerchuk. Get out and create value for people, get educated on how to build, invest and grow. Start living, because the downward pressure on all of us is increasing. Whether you see it or not, admit it or not, whether you believe it can happen or not, America is headed into a real crisis…one that we WILL come out of, and when we do some of us will be quite the better for it. Fortunes are being made as we speak. If you wonder how to get rich in a time like this, the only answer is to go out and create real value for others. If you freeze up in fear and only think about the negative, you won’t be able to do that.

Never have the words of Zig Ziglar been truer, “You will get all you want in life if you help enough other people get what they want.”

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Dollar Collapse Does Not Mean Financial Armageddon

Tags: create value, fear, How to Get Rich

The Economic Recession is the Cure, not the Disease

2009-03-12T15:15:00.001-04:00

Would you agree that ups and downs are part of life? If so, then why do so many of us argue that this recession should be fought and not allowed to happen? Do we believe we are above the forces of nature?

I’ve argued before that free market forces are massively stronger than Keynesian ideals. They are not two sets of ideas that butt heads. Rather, they are “force of nature” vs “construct of man”. Man can and will always fight to triumph, but nature will always win in the end.

See Bernanke, in my opinion, honestly believes he can help. Either that or he is Satan’s spawn. It could go either way. But I believe people are basically good. We’ll see how it pans out. But I don’t think the guy is a jerk; I just think he’s an idiot. And many of us are as well. See, you have to look at track record, don’t you? I mean, when has this guy EVER been right? With Timmy G at Obama’s side right now, you have to wonder, what is he even doing there? Didn’t Obama run on a platform of “change”? How is this supposed to mix things up? What exactly are we changing? Seriously, these guys have made one mistake after another, refused to admit (or literally didn’t see it altogether) that the crash was coming, and now not only are we looking to the same guys who caused the damage to fix everything, but they’re not even changing course! They’re uber-cool plan to fix this colossal mess is to, what? Spend even MORE money, faster and more furiously than ever. Genius. This is what can lead to a total dollar collapse. Haven’t I said this before? Yet the headlines just don’t seem to change.

See, if you or I attempt this strategy to get out of debt, we’ll eventually hit a brick wall. You and I both know it. If you’re in debt, going out and getting another credit card and spending it up will “stimulate” your pocket book, won’t it? Well, won’t it? But what’s the problem with this? You know the answer. You’ll eventually fill out an application for yet another credit card and they’ll start saying “no”. Then what do you do? You’ve run up massive debt, and you’re cut off. At some point, you’re going to have to get a job. The problem is that Obama and many Americans honestly believe that America will never get cut off. We’re too big to fail. But where is the evidence that it actually works this way? Point me to one nation in history that has ever pulled this off. Please do.

Here’s the crux of the problem: life has ups and downs. The free markets have spoken. Our economy is fake, and a strong storm has come along and knocked us over. It’s cool. We can rebuild. But right now we’re just bleeding, and the more fake liquidity we pump into the economy is causing us to just bleed out all the more. The sooner we admit we’ve toppled over, the sooner we can go back to rebuilding. It will happen, and it’s gonna be awesome. My gloomy outlook on the economy is perceived by many as a gloomy outlook on life. To the contrary. I LOVE the time we’re in. Change is uncomfortable. Change is RISKY. But it’s packed with opportunity. It’s an awesome time to be in business, start a business, and it’s an awesome time to be alive! We WILL rebuild, no matter how hard Obama wants to fight against it.

So I suppose the question remains, how will a massive recession fix the economy, and why should the government stand back and let it happen? It’s simple…do you want to get people back spending again? Do you want more jobs? Do you want higher paying jobs? Do you want to be able to start a profitable business, hire employees and create new high paying jobs for others? Do you want to see your investments start to grow and provide opportunity for you and your family in the future? All of this will begin to happen as soon as we’ve had time to recover, but the recovery won’t start until we stop fighting the recession.

Real money doesn’t disappear, and there is hundreds of billions of dollars just waiting to be invested into our economy. But right now, the government is printing trillions, propping up failed companies and creating an environment where it is impossible to compete for any new start ups. We don’t need failed investment banks running our financial sector. Too big to fail…are you kidding me? No one is too big to fail. As a matter of fact, the rule is this: the bigger you are, the harder you fall. In other words, if you’re huge and you screw up royally, it’s IMPERATIVE that you fail and fail quickly. You have too many people’s resources tied up in your failed systems. Get out of the way and allow innovation to happen. As soon as the government allows people to fail, the principles of risk vs reward will enter back into the marketplace, and real money will buy up assets for what they’re worth. There will be new start ups, offering products and services that people need, selling at profitably prices. This will create jobs that not only pay well but that are actually sustainable.

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Tags: Dollar Collapse, Economic Recession, stimulus

Dollar Collapse Does Not Mean Financial Armageddon

2009-03-12T15:12:00.000-04:00

I mentioned this briefly in my last post. There is a lot of talk about the dollar crisis. People are trying to get their heads around what it means if the dollar collapses. There will be widespread consequences of course. Rules are changing, and that’s really all any of us needs to know. We need to look for new alternatives. Staying on a sinking ship is not a requirement, you know?

The world keeps on spinning, people! There have been many times in history when Wall Street has not done well, and it seems we’ve come back around to one of those times. The debt we’re running up is basically immeasurable, and I can’t imagine it taking anything short of decades to straighten things out. One thing I think it’s important to keep in mind is that this dollar crisis, while there will be consequences and implications that last for years, does not spell Armageddon for us. Money does not disappear. It just moves. It changes hands. If you were doing really well and now you’re broke (a very common story these days), your money has not disappeared. Whether it’s right or wrong, whether it’s fair or not, someone else has it.

Unfortunately a lot of things the government is doing right now are just plain unconstitutional. But that is not news, and that’s kind of my point. Corruption and bad financial policy are nothing new. And they will also not be purged as we work through this process. Unfairness has been and always will be with us. We do not become successful because things are so good and everything is fair. We become successful in spite of adversity. This is how it’s always been done, and this is how it will continue to be done.

The world keeps on spinning, and there is always work to be done. Your community needs you. You need to create value for others, and the better you are at doing that, the better you will do. The thing is, this has always been the case. The financial community has created a lot of toxic instruments that it seems to feel are very smart. But the underlying principles of wealth have remained, operating unchecked throughout all of this mess. So perhaps the “new alternatives” I mentioned before are really “old” alternatives. The basic principles of money, as I’ve argued here before, still work. And I think the characteristics of this economic recession are strong evidence of that.

See, at best…the politicians are right. Obama will save us, and America is truly immune to hyperinflation and the possibility of alienating ourselves from our global neighbors. Massive inflationary spending will now somehow work wonders this time around, and we will all proceed out of this intact, perhaps even better for it. Let’s say that happens: well then everything is fine!

If not, at worst, it all implodes and what’s left are the basic financial principles of how to create wealth that have always been there. Hard work, proper management of risk and creating value for others…these remain intact and available to us all. I gotta say, either way there is nothing to lose your head over. Times of change breed a lot of fear, and I honestly see a lot of evidence for things getting pretty rough over the next several years. It’s alright. Take things in stride and just focus on creating value for your customers and living within your means. The dollar crisis is real. Make no mistake about that. A lot of really smart people believe strongly that we’re facing a dollar collapse. But no one has even hinted that money is going away. It’s only moving. We just need to reposition ourselves. It’s time to change, not freak out.

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Tags: Create Wealth, Dollar Collapse, Economic Recession, hyperinflation

SEO for Real Estate Professionals

2009-03-12T15:11:00.001-04:00

NAR reports that 100% of home buyers and sellers will use the internet as a implemental part of their buying and/or selling process by 2010. They also report that about 9% of Realtors currently have a blog. Does this represent a fantastic divergence of supply and demand? I think so. The market is SCREAMING at us that they want us to have a blog! A blog is the best tool you can use to build a network online and become an integral part of your community. Whether you’re online in a big way or not…that’s where your potential clients are. So basically if you’re not there, you’re not even giving yourself a chance.

Do I think having a blog is mandatory? I want to answer this carefully, because I don’t want to be too over the top, but I will say this: if you do not have one, you are seriously imparing your ability to leverage your time and connect with people in a meaningful way. You are also not connecting with people where they are wanting to connect with you. You’re increasingly requiring that they step out of their element to get in touch with you.

That said, I do talk with an increasing number of real estate professionals who are interested in getting started blogging. It’s understandable. Blogging is an ideal way to connect with a large number of people in a personal way. It is also a highly cost effective marketing tool. I just launched this particular blog a couple months ago, and it’s already getting thousands of visitors a month (which I expect to continue to grow over the next year or so). What other marketing tool can you use to engage thousands of people a month in a personal manner for less than a hundred bucks?

One of the most intimidating factors of blogging for people new to the game is SEO. Search engine optimization. Afterall, without loads of traffic, your blog is toast. So what can you do?

First of all, read my article on 335 Ways to Explode Your Online Presence. There are a number of great articles linked up to keep you busy for a good while. Second, keep in mind that SEO is a field of expertise, just like real estate. I want to ask what I feel is the key question…do you even really WANT to know about SEO? You need traffic to your site, but does that necessarily mean that you need to learn what a robots.txt file does and how to write one?

Some people are do it yourselfers, and that is respectable. I have the ambition of building a dedicated blog specifically for the purpose of laying out step by step instructions for the ongoing maintenance and optimization of your real estate or small business blog. I will get to this when I can. If you think it’s a good idea, tell me; if I hear positive feedback I would be forced to realize that there is sufficient demand for such a site. The truth is that there are a million sites scattered out there all over the place with a wealth of knowledge. It’s occured to me that having a site that actually lays it all out step by step, specifically for real estate and other small business owners…people who want to maintain their own site but who do not necessarily want to become full time internet marketers. What do you think of this?

On the other side of this coin, as real estate professionals (which many readers of this blog are), we understand that we’re in real estate, not internet marketing. Running a business requires you to wear many hats. Do you have time to become an internet marketer? There is a learning curve, believe me. A blog is an essential tool for real estate marketing these days, but it’s not a magic bullet. Just launching anything won’t do it. It’s like any other marketing campaign…if done well, it can deliver massive results. But if done poorly, it can do more damage than good. That said, it’s not brain surgery. SEO is a lot like, well, real estate. There’s a ton to learn, a ton to keep up on as the rules are always changing and a ton to implement. Bottom line, we would never dream of having a buyer fill out and present their own purchase agreement on a home. They might miss some little thing like the key number and end up buying title insurance on the wrong home! Like I said…more harm than good. So do you even WANT to tackle SEO on your own?That’s the first question.

If you guys are inclined to really tackle SEO head on, let me know and I’ll start covering it more in depth. What would you think of a subscription site that covered things in depth with video and tutorials…kind of like a step by step guide to building, optimizing and maintaining your site? Truth be told, all this is essential and knowing SEO at least on a cursory level will do nothing but help. If you want me to build it and maintain it for you, I’m happy to do that as well. The hands off approach is what I submit is a true win-win for most small business owners, but I’d like to spend some time trying to figure out what you guys really want to do. Let me know!

What do you think is the best, win-win solution for real estate professionals to get into blogging? Should we do it all ourselves? Or is having a virtual assistant manage the SEO and maintenance details of the blog a better solution?

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Tags: real estate blogging, seo

5 Biggest Ways to Make Money in Real Estate Right Now

2009-03-12T15:08:00.001-04:00

These tips on how to make money in real estate honestly should prove applicable to anyone involved in real estate, whether you’re a Realtor, a lender, or just somebody trying to sell or buy a home.

Sell it: Yes, existing home sales are down, but property is still very much exchanging hands. Millions of homes will be sold this year, and many of them will be profitably sold. Just because all the media reports is blood in the streets does not mean that’s all that happening. Do you want to sell anytime in the next several years? Look at your options…this really may be the best time for you to sell, depending on what you want to do. Do you want to move up to a larger home for give your growing family some space? Even if you take a hit on your sale, you can buy carefully and get a discount, ending up very much in the black at closing. Look at you WHOLE situation, not just the negative. And for Realtors, I don’t need to tell you that earning commission on deals these days is going to be commission where you truly EARN every penny This is good work, and I wouldn’t recommend navigating such choppy waters without a real professional to help you. Competent Realtors are needed now more than ever.
Buy it: This hopefully is a no brainer. Is it a good time to buy? Are you kidding me? I just saw a duplex in Lafayette, IN for less than $40k. This doesn’t mean it’s a good time to buy everything, everywhere. Be prudent, but it’s an AWESOME time to buy property.
Hold it: I don’t recommend anyone do any short term flips these days. Rehab opportunities are everywhere, but this doesn’t mean quick cash. Hold these properties. This is a time when nearly everyone is super negative. NPR just reported yesterday that our confidence in the economy is something 25 (out of 100), insane! When everyone is down in the dumps, it’s a prime time to start a business, seriously. And if you’re in a position to competently invest in cash flow real estate, that is an opportunity to make money in real estate that ought not be passed up.
Improve it: News says that there is downward pressure on rents nationwide. It’s not true. Rents are down some places. They’re up in other places. Don’t make assumptions. Look at your market, and decide for yourself…are you charging grossly low rent for your property? I’m a big advocate of keeping rents slightly lower than market rate. If you do it right, you can create a real win-win for you and the tenants. But this does not mean you should necessarily use your mortgage payment to dictate what you charge for rent, which is an amateur mistake. Who is going to pay when the furnace goes out or the roof needs fixed? You need positive cash flow to cover these things. Also, look at your property honestly. Is there any opportunity to improve it for the next tenants coming in? Providing a nicer place can translate into better rent and/or longer tenancy.
Blog it: Using a blog is key, period. Use it to promote your listing. Use it to connect with people and build your network. Use it to get leads.

The bottom line is this: the market is down, but people are acting like it’s dead. C’mon now. The world goes on spinning, and there is a lot of work to be done. Basic common sense still runs the game here. If you want to make money in real estate, there has never been a better time. If you’re a real estate professional who is thinking of hanging it up, think about this: Realtors are quitting every month right now, just because this business has gotten tough. That means your market share goes up every month that passes. Look, if you got into real estate for easy money, you got into it for the wrong reason anyway. And maybe real estate is not the business for you. If not, fine. But don’t quit because it’s tough in RE, just to go try and find easy money somewhere else. If you do that, you’re just making the same mistake all over again. EVERY business gets tough now and then. To any of you who’ve lost a bunch of money in real estate over the last year or so, this is how I feel about it: NOW is the time to build real wealth wealth in real estate, not then. Past years have been full of loose money and easy deals, and it’s fun to be able to sell a house without any real work or expertise, but it’s not what building a real business is about. Building a real business is hard work. NOW is the time to do it. The timing is perfect. Real professionals in this business are needed now more than ever. This is the time that the real leaders in real estate will step up and create real value for their clients. I hope you stay along for the ride!

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Tags: blog, buy real estate, Make Money in Real Estate, rent real estate, sell

What Price to Write in a Real Estate Purchase Agreement

2009-03-12T14:59:00.001-04:00

When you’re looking at a home you love and you want to write an offer, it’s natural to want to get the best price for it, and you should. You should make every effort to get the best possible price. But writing a low ball offer is not always the best way of going about it. Think about it…how often is always using the exact same tactic really going to get you optimal results? Every buyer wants to write a low offer in this market, and it’s understandable. In many cases, it’s a good tactic. In many cases it will do you more harm than good. Knowing the difference is hugely important. This post fortunately offers you a trick that just may save you headaches AND big money!

First, sitting down to write an offer is NOT the point where you want to be working with a buyer agent that you do not trust. If you do not trust your agent and what they tell you, why are you working with them? Think about this. You’re trusting this person to present and negotiate the terms of your purchase. It’s a large purchase, and there are a LOT of things that often go wrong in a real estate transaction. Please take the time to interview and hire a buyer agent you’re comfortable with. Someone who knows the market and sells a lot of homes. Someone with references who has a lot of happy past clients.

That said, when it comes time to write an offer, realize that while your agent is experienced and the expert in the room, you are still the boss. Your agent cannot tell you what to write, only offer information and guidance. What I usually do is throw the list price out. At the end of the day, you want to pay a fair price, right? Or do you want a large discount? This is psychological and emotional. If you’re honest, you’ll say you want a large discount; it makes us all feel good when we get a big cut off the sticker price. But always remember that a home is worth based on what the market dictates, not based on what a seller asks. Not based on what a seller NEEDS. So what do you offer? Look at the market…

Throw the list price out and look at the market. What homes have sold recently that are similar? Make reasonable adjustments for discrepancies in size and amenities. Your agent of course can compile all this information and help you go through it. Look at the days on market, but compare it honestly with the average days on market currently. 120 days on the market may sound like a long time to you, but it’s pretty normal here. This is just one example of course, but if you see a home on the market for 6 months right now, that’s not necessarily a sign of distress. It’s not automatically a marker for a low ball offer.

What I mean by throwing out the list price is very much like what it sounds. You should look at the market and make an offer that you feel reasonably represents the market, without reference (in most cases) to the list price. If the market is showing you the home is worth $200k, and the home is listed at $200k, you should not be skittish about offering $200k, depending on your goals and some other factors. For example, if the home just hit the market and you’re comfortable with losing the home to another buyer, just offer $190k and see what you get. But remember that psycology plays such a huge part of this equation. What if the seller had grotesquely overpriced the home at $295k. What then? You would likely be THILLED to get it for $210k, and that would be $85k too much.

Making offers without reference to the list price requires a solid understanding of your goals, comprehensive information and knowledge of the market and even-mindedness. I recommend it. Home hunting is emotional. But it is also a big investment. You’re going to be living in this place for years most likely. It’s important to do it right. When it comes time to sit down and write an offer, don’t ask “what do you think we can get it for?” Ask “what is it worth?” They are completely different questions. The first question focuses on discount, regardless of value. The second question focuses on value. As an agent, my priority is to get you a great home at a great value, and the list price has nothing to do with it.

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Tags: real estate

How to “Get” Twitter

2009-03-01T16:05:00.001-05:00

First, this info is in other places. But I’m writing it here, because I network with a lot of professionals…Realtors, mortgage lenders, investors, business owners, who would benefit immensely from blogging, but they don’t fully embrace it. One of the simplest ways to extend your presence online is with a Twitter account, but I still hear so many people saying they don’t “get” it. Here’s the deal…

Believe it or not, there are people who actually care about hearing what’s up with you. Blogging is about connecting with people on a personal level. The failure to understand this is evident when Realtors use their blogs solely for posting listings. Yes, post your listing inventory…that’s great. But if that’s all you’re doing, you’re completely missing the point! Your friends, colleagues, potential customers and past clients want to hear from you, but they don’t want spam, they don’t want form letters, they don’t want a stupid postcard in the mail with your picture on it. They want to connect.

This is what blogging is about. It’s what makes it so powerful. You can publish your ideas on a daily basis, moderate comments and interact literally with thousands of people a day…on a personal level. No way you’re ever going to pull that off with ANY old school media. Blogging is the thing. It’s social media, which means it’s not about advertising. Its’ about talking. It’s why some of the greatest blogs out there (like My One Hundred Things of course) are conversational in tone.

Twitter is “micro”blogging. The question is: what are you doing? You can answer this question as many times as you want throughout the day. Some people post to their Twitter account many of dozens of times a day, and guess what. People READ your tweets. I get a ton of traffic to my blog from Twitter, and I only have about 500 followers there at the moment.

Can you imagine the power of connecting with your clients 20 times a day and having them actually listen and NOT tell you to stop calling? That’s what Twitter is about. Again…believe it or not, people want to know what’s going on with you. Status updates and conversation throughout the day requires a consistent, ongoing effort. You really should install a Twitter client on your cell phone and just think of it as another way people can keep in touch with you. Proper use of a microblog like Twitter forces you to extend real transparency to your followers. There is real power in having a large number of people following you. Surely there is no mystery why…right?

The only thing I’d like to reiterate is that it’s social media, not old school marketing. If you’re going to use Twitter as just another means of branding yourself, you’re missing the point, and you will actually do more harm to yourself than good. It’s about conversation.

You will likely find out, as I have, that many people who want to connect with you are not even in your market. It’s a new world. I’ve talk with property investors in New Zealand, bloggers in Vietnam, there are people all over who are actually interested in my little blog. It’s fun. And it leads to real production. I just sent listings to an investor in NZ who is specifically looking for rentals in my market. He’s a cash buyer. I just referred a client out from a lead I got on Twitter yesterday. If it closes it will generate a commission for me. Not a bad day at the office. All for just “hanging out” and “wasting time” on Twitter. I could do this all day…oh wait, I already do

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Who Cares if Real Estate Has Bottomed?

2009-03-01T16:03:00.001-05:00

I get questions about this every day, so I thought it would be a good idea to write about it for a minute. I try to keep up on the financial market a bit, and there’s a lot of talk in that area about real estate as well, not surprisingly. So where do we stand, and how should we behaving right now?

First I don’t believe the economy is going to get “back to normal” in our lifetime. Wow, what a negative thing to say, right? Hear me out…I say this because what most of us seem to consider “normal” is not, in fact, normal at all.

In Lafayette Indiana, where I practice real estate, price values are stable, but lending is on it’s ear. Real estate investing is at a near standstill (from a purely local viewpoint anyway). Some Realtors I talk to are wondering if they’re going to make money in real estate ever again. Banks are simply not doing 100% loans and throwing money around like they used to. In other areas that are experiencing sharp price declines, lending is in the same boat. It’s locked up unless you have good credit and some money to put down. The irony is that this is the way (more or less) that real estate has always been. Home sales, compared to history, are not really that soft at all. We just consider them soft because money has been so loose over the past several years. Yes, home sales are down considerably right now, but grading on a historic curve, they are just fine. Believe it or not, in Lafayette Indiana, real estate is back to normal now…the real normal, where buying a home requires reasonable credit, a good job and a down payment.

This is not meant to detract from what’s happening in other areas…people are losing jobs and many others are wondering when they’re going to get the axe. It’s not a fun time in the job market, and this translates to softening real estate sales as well. It is strong evidence that while property may have been the straw that broke the camels back and precipitated the downturn, it certainly was not the cause of it. The underlying issue of our recession was loose money to begin with. If money had not been manipulated the way it was…guess what, all the NINJA (no income, no job, no asset) loans and other fantastic, genius financial instruments we came up with never would have been possible. You can’t leave a box of candy in a room full of kindergardeners and expect them not to go berserk, to paraphrase Peter Schiff.

That said, there’s enough blame to go around. It’s really not the point. I don’t blame guys like Bernanke for making collosal mistakes. It happens. But when it happens, step up and hold yourself accountable.

Anyway, has real estate bottomed? I don’t have a crystal ball. But here’s what I can say: I honestly am not concerned with it. Playing the changes as they occur are why I’m in business. Learning to adapt is how you create value for clients. Not just cashing in when things are “hot”. So whether the market is up or down, people need to live somewhere, and they need to move on occassion. This is why Realtors are in business…or at least why they SHOULD be in business…to help. Not to “close”. Not to “sell”. Yes, you have to get closings to survive in business. This is true in any business. And in any business you can find people who bottom feed, and those people come and go. You can also find people in any industry who are the real deal.

A market downturn cleanses the system of bottomfeeders. This is a good thing. This real estate market may be down for a while. Do you have a problem with affordable housing? I don’t. Do you have a problem with very affordable housing? Me neither.

Here’s the way I see it panning out: we’re in a massive mess, period. A massive mess is very hard work to clean up, period. The longer we’re down, the more painful it will be in the present, and the better it will be for us in the long term. I don’t know where we’ll find equilibrium. All I know is that wherever we find it, and whatever road we take to get there…there is ample opportunity for us all. Realtors…real professionals that is, are needed now more than ever.

Who cares if real estate has bottomed? There is a lot of work to be done either way. If you look back at the “good ole days” of real estate and think of it not as “hot” but rather “making a huge mess that’s gonna be killer painful to clean up later”, perhaps it just wasn’t as cool as we thought it was. Thoughts?

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8 Great Articles on Staying Motivated

2009-02-26T19:21:00.001-05:00

I read a lot. You know that about me if you follow this blog at all. Sharing what I read seems to make sense. Here is a list of 8 great articles I just ran through today on the topic of “motivation”.

Motivation is not everything. You will not reach your goals on pep alone. There are many motivational speakers and authors who have strong messages and a lot of good things to say, who fail to mention this little tidbit.

If you are setting worthwhile goals and intend to achieve them, you have hard work ahead of you, period. However, the tools of motivation, while they are not everything, are something. And anything that helps should become part of your plan. There are some good nuggets of wisdom in this reading, and each of the articles are short.

Let me know what you think of these:

Perhaps you’ll notice not every item on this list is about business. I strongly advocate having a fitness plan as part of your game. I’m big into it, which is why I decided it’s cool to include it in the list.

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Success Quotes Series: Zig Ziglar

2009-02-26T19:17:00.002-05:00

This quote from Zig Ziglar is my favorite one of the day.

Duty makes us do things well, but love makes us do them beautifully.
Zig Ziglar

It’s important, essential to love what you do. I would argue that excelling in business over the next era will require the ability to turn on a dime, consistently rebuilding, consistently innovating. In today’s economy, you can make a living doing virtually anything. It will require a lot of innovation and tons of hard work. It’s not all about internet marketing, which of course is a common theme here. It’s about lifting your head up out of the sand and taking note of the tools you have at your disposal, choosing wisely and getting to work using them.

No matter what business you’re in, I guarantee you there are dozens of new ways to market yourself, streamline your operation and leverage your time. Have you taken note of these things and begun implementing them? This is what’s required. Loving what you do is what will give you the energy to constantly look ahead, constantly implement, constantly set new and higher goals. This is what’s required…not just a successful business, but a beautiful one.

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Success Quotes Series: Confucius

2009-02-26T19:17:00.001-05:00

This is a great piece from Confucius.

“Do not be desirous of having things done quickly. Do not look at small advantages. Desire to have things done quickly prevents their being done thoroughly. Looking at small advantages prevents great affairs from being accomplished.” Confucius

What a great way of saying “no shortcuts”. It’s such a common theme in life these days. I know I’m guilty of it. I want it done NOW, pretty much no matter what it is. I implement things NOW. I think that’s a strength, but it also rides the line of impatience. I think making money fast, getting rich fast, etc…it’s all doable. But doing it well is a prerequisite. If you can’t do it well AND fast, either learn the rules, or take the slow lane. Quality is not an option.

Are there short cuts? I argued with this a bit with my friends at Fastlane to Millions. Verdict? Yes, there are shortcuts. But they’re only available to people who’ve either paid their dues or who are inordinately brilliant. A shortcut is a very sharp tool. When used masterfully it can yield masterful results. When wielded by the wrong hand however, only disaster can be expected. Honestly, 200 miles an hour will get you there quicker, but not if you end up wrapped around a telephone pole.

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What Results Should You Expect from Blogging?

2009-02-20T13:11:00.000-05:00

You should expect a lot. A well-designed and optimized blog is a powerful tool. You can use it to reach thousands of people and maintain a personal dialog with them. You can use it to generate new business, expand your market share and even essentially dominate the internet space surrounding a niche market. But quantifying the results you get can be difficult. It’s important to know what to look for. Here are a few metrics that people use to measure whether their blog is meeting their goals or not.

Overall traffic
Unique visitors
Page views
Income generated either directly or indirectly from blogging (ad revenues, affiliate products, sales and/or leads generated from your blog, etc)
# of comments on posts
# of feed subscriptions

There are many other things you can look at as well. So the point is, it’s important to get into blogging with a plan. Think of it as you would any other marketing tool in this regard. The leverage is fantastic, and you can use a blog to effectively reach any number of goals, but know up front what your goals are going to be.

It’s important to know before getting started that blogging is not a magic bullet. A search engine optimized blog can be the most effective tool available to you for getting solid search engine results in your business, but it’s not going to happen automatically. A lot has been written regarding how to get traffic to your blog fast. I honestly think looking for fast results may lead to disappointment. Any meaningful results take time and effort. You didn’t build your business overnight, and you won’t build a successful, meaningful readership overnight either. Consistent effort over time however, will enable you to build a powerful network and many meaningful connections with people. Embracing this technology is a way of growing your business in a way no other marketing tool allows. It allows you to keep it personal while completely leveraging your time. I honestly feel blogging represents the most effective yet highly leveraged marketing tool available to business owners today.

It requires that you think about things differently. Otherwise, you’ll end up using a blog the same way you do any other old school marketing tool. Unfortunately, when you just use your blog or facebook or any other social networking tool as a means of advertising yourself, the results you get fall entirely short. Blogging is about building a meaningful, personal network of people and maintaining a dialog with them. It’s interactive more than it is purely marketing. It’s new media. It’s highly effective, and it’s massively cost effective compared to any old media tools.

What blogging goals do you have? What specific ideas are you employing to make sure your goals are reached?

Why Blogging is the Marketing Tool You Should Focus on in ‘09

2009-02-20T13:10:00.000-05:00

A friend of mine fired this out to me on Facebook, and I wanted to share it with you for a very specific reason…this speaks exactly to one of the biggest problems we have in business these days. People are not seeing the opportunity, because they’re so busy either with their head in the sand or with trying to keep their business going with all the old school methods they were taught. The economy upsetting is a GOOD thing, guys! Change is good! The economy is only “bad” for people who keep playing by the same rules. The rules are changing, and it’s time to adapt.

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