Did You Miss Out, or What?!

My brain is fried. I spent Friday, Saturday and Sunday revealing everything I could about real estate investing to my mentoring students. Friday we went over all of the new laws and the current state of financing for real estate investors and how it can impact buying and selling decisions. One of my attorneys and one of my mortgage brokers came and helped us work through the impacts to our business.

Saturday we talked exit strategies and systemization of the selling process. We had a working lunch where we dug into Dan Kennedy’s Renegade Millionaire Mindset and what a Renegade Millionaire does differently than most business folks. That afternoon we heard presentations from three Renegade Real Estate Warriors from right here in the Seattle Area that are out there doing things differently. Their business philosophies and operations were really “Out There” in the best way possible.

Paul Awarding Mike Sumsky the 2008 Seattle Renegade Warrior of the Year TM Trophy

Mike Sumsky walked away with the trophy for the 2008 Seattle Renegade. He talked about the way he uses seller financing and how it has taken his business to the next level. He was voted by the attendees as having the best business model that was the most implementable for the group. You will be hearing more from Mike in the future.

Sunday we went into buying strategies and systemization of the buying process, finding money, syndication, and lending money securely. That afternoon Tim McNally, a friend of mine who is a Commercial broker, talked with us about commercial and why it is possible to start out in commercial investing first. You don’t need to start out in single family homes, rather move right into commercial or multi-family.

This training was part of our mentoring program. We allowed a few people who were not a part of our program to come to the training but they paid a premium to do so. Everyone was very satisfied with the education and the content. All of us walked out of there with a strategy to go forward even with the deck stacked against real estate investors.

I will tell you I was pleased as punch by the attitudes that the attendees had about the challenges that are facing us. Everyone of them were looking for the path to follow that was according to the new laws and yet still serve the community by buying houses from people that need to sell. It was great being surrounded by people with winning attitudes.

If you are not a part of this mentoring group you should be. It is unlike any other experience you may have had. The people are great. The information is priceless and the fact that I am the mentor is just a bonus.

The Premiere Real Wealth Round Table TM Mentoring & Mastermind Group

Schools out for Summer or Is It?

Last weekend I was chaperoning my daughters ‘Sweet 16’ birthday party. We had 42 sixteen year olds at the Sheraton Hotel Ballroom. We did the light version of the MTV My Sweet 16 birthday party. Meaning that while we went all out, we did not go crazy. It was a party that she will always remember and we didn’t have to prepare or clean up only write the check. No, I did not trot out a new car or anything like that.

Everyone wore dresses or suits and everyone was on their best behavior. Evelyn and I had some friends there chaperoning with us. 5 other couples to be precise and the funny thing is we were all ex-military. So there was plenty of adult supervision. We had all been the mischievous kids so these poor kids were at a loss when they tried to sneak out for a breath of air. Rules were if they left the ballroom they could not come back.

We made the kids check in with us at the beginning of the night and check out at the end of the night. Parents had to come and get them before they were allowed to leave with the exception of the couple who had their license. We were very security and safety conscious.

Rachel had a blast and quite frankly so did we. She will have a lasting memory and was rewarded for being a good kid, hard worker and on the honor roll for the fourth straight semester. She will be working for us all summer saving money for college and to buy her car.






Why do I share this with you?

Frankly I am proud of my daughter and it is nice to be able to do something like this. I know that if I still worked for someone I would never be able to afford it.

Also to point out that even as kids we were always looking forward to the summer break but way before summer was over, some kids were looking forward to going back to school. I can’t say that I was ever one of them but I sure am now. I have a couple of bootcamps that I am going to be attending this summer as well as a mastermind meeting in Baltimore with Bill Glazer.

There are all learning environments that I am excited about being a part of. I make it a point to learn everything and anything that I can. So should you. Now that the kids are out of school take some time to relax but also to re-energize yourself with some education.

Are You a “Get It Right” or a “Get It Right Now” Kind of Person?

Last night I did a training event with a several dozen attendees on the new Washington State Distressed Home Conveyance Act that goes into affect on June 12th. I was reviewing the law as well as a couple of other forces that are impacting the real estate economy.

I did my best to be clear and concise. As you know I am a glass half full kind of a guy, I look at things with adaptation in mind. I can roll with the punches. I guess I am like the old punching bag that always comes back up.

Afterward I was talking to a friend who was interested in my perspective on the law. He is a very smart real estate agent who has been in the industry for over 25 years doing Single & Multi family as well as Commercial properties. He asked me if I had reviewed the new MLS forms and asked if my broker was of the opinion that many brokers are. I told him, yes and no. Yes I was familiar with the new forms & No my broker was not as afraid as many of the mainstream brokers are.

He told me that many brokers are giving their agents advice to run away from any deal that may qualify as a Distressed Home Transaction. Do not list, do not sell, do not talk to these sellers. Now imagine life in this world? You need to sell, but you can not list. If you do happen to get your property listed, agents will not sell your house.

Holy Crap will the real estate market be in trouble. Imagine life where the only option is to sell at the steps. The prices will begin to plummet. The foreclosure rate will sky rocket. REO Properties will be the norm rather than the exception. Banks will start to be in more trouble.

Seattle has been spared the decline of some of the other big cities and hot areas. We have appreciation and still have a relatively decent sales cycle (days on market). If this is what the brokers are telling their agents guess what will happen. Hold onto your life preservers because we are going to need them.

Why pray tell, are the brokers giving this advice to the agents? LAWSUITS. That is right. They are afraid of the SHARKS that are going to be out there advertising to people that may have been in foreclosure or in bankruptcy who may have sold their property to an investor. They will then sue the investor hoping for a quick settlement as bribe money.

There are seminars out there training lawyers right now to do just this. Imagine when someone goes into a credit counseling office or bankruptcy attorney for consultation one of the questions will be did you sell your house to an investor because you were behind on payments or in foreclosure. Imagine how the conversation will go after that.

Why do I share this with you?

Two reasons:

#1 – If you don’t prepare yourself with proper entities and education you are going to be going down a bumpy road full of pot holes bigger than your car.

#2 – There is unprecedented opportunity coming our way. You have to put yourself in the right position to capitalize on it.

To be perfectly honest with you, I am absolutely excited about the opportunity that is here as well as the monstrous one that is coming shortly. There is a lot to be scared of but quite frankly only if you are ill prepared. I know that my mentoring students and I are going to be getting along fine. I am worried about those that do not have the education and support that are trying to go it alone.

Wading through the Chaff to get to the Wheat

I was perusing the internet looking for the latest and greatest information on real estate markets. Looking locally, nationally and internationally to find the state of the real estate economy. I spent hours looking about a wide variety of topics from foreclosure rates, interest rates, days on market, sales price compared to list price. You name it I was looking.

I found information on how the Puget Sound area has been spared the foreclosure rates that most of the rest of the country has been experiencing. I was intrigued by the foreclosure bus tours that have been created in some of the hardest hit markets. Also, the property buying tours that are being led to Mississippi, Missouri, Alabama and Louisiana to take advantage of the tax deals that were created to spur economic growth.

There are a lot of things happening out there. Not just the typical buy and hold strategies, some creative, some traditional and frankly some pretty stupid stuff that borders on fraud. I am amazed sometimes at what some people will do with their money.

When you look at all the information out there you can not help but be overwhelmed. Imagine if you are a brand new investor trying to make money and are being offered some of these “Pie in the Sky” products and services. Some are truly scary indeed.

I am very involved in my local market. I invest on a daily basis. I know the new laws that are going into effect here in Washington. Yet I am hearing radio and TV commercials for national investing gurus coming into the market selling products about foreclosure and pre-foreclosure investing.

I know from experience that these groups are sending their top sales people in to do presentations. They are putting groups of 50 – 200 people in a room and selling them foreclosure investing education. I have no problem with that. I have been in the audience as well as on stage before doing the same thing. The problem is these new people are going to spend the money not realizing the new laws that are going to be in effect next week that will make what they are being trained to do useless.

If they go out and operate their business as they are trained to do, they will be setting themselves up for some hard times ahead. They are not going to be ready for the new laws. They will send marketing that causes them to be Distressed Home Consultants. They will not understand the full impact of that on their business.

If you know of a new investor, please let them know that they need to change the way they do business. They need to comply with the new law or they will end up paying for it in the end. Save their business and let them know they need to update their business before it is too late.

Being an investor entails risk by nature. Minimize it to the greatest possible extent through education and compliance. Balance the risk and reward rather than just gambling on making money without the proper preparation.

Stuff Happens!

Have you ever had so much stuff happening in your life that you get overwhelmed? Have you thought things were going along smoothly and come to realize that things fall apart at the last minute? You know that I don’t agree with whining. That is why I believe in being a winner not a whiner.

It is easy to be a winner when everything goes well for you. When the stars are aligned and everything is right with the world it is easy not to whine. I was sent an email from someone who said something similar to me. He told me that it was easy for me to be a winner when everything is so perfect in my life.

If he only knew! Stuff happens to us all the time. Banks don’t return calls. Sellers back out. I make mistakes. Evelyn and I sometimes don’t see eye to eye and it makes for some tense times around the house and office. I get lazy and let things slip through the cracks. There are other things happen that are outside of your control. You name it. It happens.

The way you look at it that counts. It is all in your approach. Heck, my first instinct is to run for the hills. Get out of the line of fire. The problem is you can’t run away. That is the whiner’s way out.

How do I approach things to right the ship? I take a step back and breathe. Sometimes it takes a minute; sometimes it takes a day or more, never too long though. I then look at the big picture. How did I get where I am? What obstacles were there? What choices I made to scale those obstacles? What mistakes were made?

This can be scary stuff. Real stomach turning, acid producing examinations. I then look for the best way out of the circumstances. This can be costly sometimes, emotionally or financially. Either way it can hurt. This is where you determine if you are a whiner or a winner. The choices you make here is the key. I pray. He helps. Sometimes it isn’t easy nor what I am asking for. But in the long run He is right.

Stuff never happens one at a time. They usually come in twos or threes. You need to prioritize and attack them one at a time. Work as far as you can before going to the next issue. Sometimes they need to be done simultaneous rather than sequentially. Do whatever it takes to get through it. Just remember, there are always good times and bad. How you approach the bad times determines whether you are a Winner or a Whiner.

When The Going Gets Tough, The Whiners Take Off?

As you know I am an avid reader. Usually 3 to 5 business books and at least 1 non-fiction book per month. I spend a lot of time catching up on the latest periodicals as well. So this morning I am up early and re-reading Gene Simons’ Book “Sex Money Kiss.” The man is a machine. A die hard worker and entrepreneur like you would not believe.

Reading his book, I was surprised he revealed all the things that didn’t go as planned. He used the word failed, but I don’t think so. He espouses what I call my “Triple F” strategy for success. Fail Forward Faster. Do something. Do it quick. Do it big. As the Nike slogan says – Just Do It! He tried so many things some worked, some didn’t; it is no wonder that he is so successful.

That is one of the things I like about so many people I meet. They are doers. They take action. They implement. Some have achieved their goals others have not done so yet. So what? They are going forward fast. That is the point. I don’t like Whiners. They spend their lives complaining. I like winners. They just go forward. Never looking backwards.

Jon Bon Jovi was interviewed on 60 minutes last Sunday. Jon and Gene have a ton in common. They are both business men first and rockers second. Anyway, the point is, while others in the industry have been worried about the trappings, these two guys have been busy making money. Compare and contrast that with most of their peers. Where are they now? What have they experienced in their lives? Fleeting Fame and Fortune.

I use these examples to illustrate what you can do as a real estate investor. Times, they are a changing. Laws are changing. Mortgage requirements are changing. Prices are changing. Days on market are changing. Buyers are not buying. But, hey you need to adapt to make money.

What have you done in the last 30 days to adapt? How have you made money doing the business of real estate investing? Did you notice how I worded that last sentence? Re-read it. I asked how you made money “Doing the Business” of real estate investing. That is the point. Doing the business of… “insert your business here!”

Last week I told you that I am in the process of making changes to my business. Consulting with multiple lawyers to adjust my business contracts and to help clarify what I can say to sellers and still be in compliance with the law. I am raising capital so that I can buy the houses at an agreeable price, for cash. I am changing my marketing so I do not get into trouble. Even rewriting scripts. Mainly adapting my business.

Most of the investors I spoke with are all freaking out. They are being Chicken Little. Pessimistic. I listened to one guy, who has never done a deal, telling two brand new investors that the real estate investing business is dead.

What service did this person do for these two novices? If I asked this guy he would say an unequivocal yes he helped them not make the mistake he made. He saved these people from loosing money on training and never doing anything.

After all, hadn’t he spent $1,900 to go to a bootcamp that didn’t help him make a million dollars in the next 90 days? After all, hadn’t he devoted two whole weekends in driving around looking for vacant houses and he couldn’t find even one. After all hadn’t he mailed out 500 postcards to pre-foreclosure properties and had talked to 4 sellers that wanted to stay in their house. He really worked this business. Ahh Bull S#!7

This guy was a waste of a chair. He attended meeting after meeting and didn’t do anything. If I had my choice I would have excommunicated him. You know like they used to do in the old west. Put a 2x4 across his back and tie his hands to it and make him walk into the dessert never to be heard from again. What he did was suck the ambition out of these two. I could see it in their eyes. They needed the spark rekindled. They needed to know they could do it.

I am not saying that this business is easy or cheap. (Notice the “B” word again.) You need to work hard and work smart to succeed. Anyone with the drive can do it. They don’t need loads of talent or charm, just persistence.

As mentioned last week I am holding a bootcamp on June 20-22nd on how to adapt your business to the new legal environment. It will not be cheap but it will be valuable. The most valuable training you could possibly attend this year. It is important that you reserve the time and the money to attend. If you are in Washington State it just may very well save your business. I will be sending out an announcement on Friday Morning. Keep a look out for it.

Are the State Legislatures and Congress putting us out of Business?

There have been several laws passed with the hope of protecting consumers. Many of these laws have made doing real estate investing as a business more difficult. Here, in the State of Washington, there have been two laws passed in the last 10 months that have made it darn near impossible to buy properties from motivated sellers and then rehab them for sale.

There have been several in the last few years that have done the same thing. Texas changed their laws regarding Lease Options; South Carolina, Virginia and others made changes as well. Many other states are following suit. Most of them have been affected, if not yet, they will be soon.

What does it mean? What do we do? As a board member of the local non-profit REIA Group, we have been holding informational meetings as to how it will affect our businesses. We have had panel discussions with lawyers and great debate on the message boards. There have been a few lively whining sessions to say the least. People complaining that my business is dead now, they hit my pocket book. Now I will never _______! (Fill in the blank.) Wham, Bam, Thank you very much.
Whiners complain. Winners adapt!

How do I look at this? Well, last Saturday I hosted a mastermind session with part of my mentoring group. We read the law and determined what we could not do. We then determined what we must do. Next, we developed a strategy on how to proceed from here. Everyone in that room will be okay. We will be going forward positively. We will be able to stand out from the crowd because there are going to be so many people running away from investing; screaming that real estate investing will not work in Washington State anymore.

Bull Pucky! Take this Adversity and make it an Advantage.

What am I doing about it? I have an appointment with not one but with two different attorneys. I am changing my contracts, advertising and direct mail pieces. I am changing my scripts, website and voice mail. We have ordered new signs. I am changing my systems to adapt better to what we need to do to comply.

I am also creating a small bootcamp to train my mentees and a few select others in Washington to make this a positive thing. The law takes effect on June 12th. The bootcamp is June 20-22nd. My mentees and these few select real estate entrepreneurs will be ready to go with all the new contracts and marketing that complies with the law quicker than everyone else can.

It won’t be free but it will be worth many times the cost. There will be less than 50 people in the room so if you want to save your business quickly rather than flounder around for the summer, you will need to be there. Remember this is mainly for my mentoring students so more than half of the spaces are already reserved. Reply to this email if you want more information.
They will be ready. But will you?

In that light, I sent an email to you yesterday inviting you to a webinar on short sales with one of the best experts on the subject. (On a side note, I actually received an email from someone asking how I can host a webinar on short sales when the law in Washington actually outlaws it. First, I immediately took this whiner off of my list for stupidity. Second, short sales are not illegal. They are a tried and true tactic that is an essential part of our business. So don’t read anything into the law that isn’t there.)

Anyway, Lee Honish, who has been in loss mitigation and asset management for a top 10 bank for 21 years, will be talking about short sales that no one else follows. He will show you ways to get the bank to respond better than you can imagine. When Evelyn applied his tactics she received responses from previously indifferent or hostile loss mitigators that were unimaginable. It really opened up her eyes and changed everything for the better.

We will be chatting about short sales and Lee will show us the secret world of loss mitigators and why them asking for a big short sale package is just their way of pushing you around. Lee will reveal the 4 figures they are looking for and how, with just those four sets of numbers, you can get an approval from most lenders. I will also get him to show you the software he uses so you can see behind the curtain of the banks. Reserve your space for the webinar by visiting this reservation page.

Don’t be discouraged. There are many ways to accelerate your business. It only depends on your outlook. Take Action Now to change your results.