Author Archive
3 Rules For Success
Posted on January 12, 2016 byAs this year comes to an end, I am reflecting on what went right and what areas in my life do I need to focus on, to make some improvements to reach my highest level of success?
Part of having a very successful business, involves 3 basic principles; purpose, attitude and action. Let’s look at these 3 basic principles. The good news is the chances of us getting it right is because the change is within us and we don’t need to depend on anyone else for this success. Did you hear me! The bad news is the change is within us, which means we have to take responsibility and action to get it right.
Number 1 – What is your Purpose?
When we have an outrageous WHY, the opportunity for success goes up dramatically.
SO ask yourselves…. why do you think real estate is the right vehicle for you? What problems can this vehicle help to solve in your life? How is this new wealth vehicle different from the current work you are doing? This is not a get rich quick scheme. Read More→
Will You Sink or Swim?
Posted on December 11, 2015 byThis is your life. You have decided that real estate investing is something you want to do. But…
Are you sinking or swimming?
Right now, I am teaching a 58 year old friend to swim. I can see his fear. He is thinking, “What if I drown?” or “What if I can’t do this and I look silly?” We all have fears about uncertainties; fear is natural and good—it can keep us out of trouble! But, when fear controls you, when it stops and paralyzes you, when it keeps you from success, it is a problem.
Remember: There is no such thing as a dead end.
Your fears can be conquered easily through calculated action and baby steps.
How is your business like learning to swim? Like my friend, you probably have fear. Maybe you fear loss of financial security or not being able to know a bad deal from a great deal. Maybe you fear failure, or you fear what people will think if you make bad decisions. Maybe you even fear success. The problem is that fear will wear you out and kill your drive. Just like the swimmer, you need to know when to swim and when to float. You need to learn to trust the system and yourself. Read More→
The Tortoise vs. the Hare – Persistency and Consistency Wins the Real Estate Wealth Race
Posted on November 11, 2015 byOver the past six months I have discussed excuses on why people are failing in the real estate business. I had discussed the excuse of lack of money, the excuse of lack of time, the excuse of lack of leads, the excuse of lack of a system, and last month I did a piece on accountability partners. Each one of these segments has been designed to eliminate the distractions and excuses for individuals that are desiring to get involved in real estate and are not accomplishing anything. This month I want to discuss how persistence and consistency will get you to your financial goals faster.
I go to the gym on a regular basis. There are individuals in the gym every time I am there, and I typically go 5 times a week. I have noticed that those individuals who are dedicated to their weight training and eating right have absolutely incredible bodies. The individuals, who come inconsistently, do not have the same success. For example take the individual who comes in on Monday and because it’s a Monday decides that they are only going to do a short exercise routine. That same individual on Friday decides that “hey it’s Friday and I will just do a light day”. That same individual comes in and spends 20 min. talking to everybody and socializing. That individual is not making head way on their exercise routine, maintaining their weight, and eating right. There are individuals who say that they are doing all of the right things, however their actions speak louder than words. These “quasi health nuts” are consumed by distractions and excuses. Read More→
System for Success
Posted on October 22, 2015 byWhat will you do when things don’t go as planned? Will you flounder, or will you be able to put into motion a clear set of actions? In other words,
Do you have a System for Success?
Recently, a colleague of mine had two contractors burn him on a job. It should have been a quick fix, three days maximum, light work… paint, cleaning, and light bulbs. But neither contractor had a system to get the job done right, and he did not have a system to fire contractors and still come in on budget. The upshot is that, without a system, you risk losing time and money.
Often, when things don’t go as planned (and this can be often!), we have fear. We become paralyzed, perhaps we focus on the negative. To be successful, we need a plan that keeps us from feeling this way because what we want is success.
What does a good system give you? Read More→
Are You Accountable?
Posted on September 17, 2015 byHave you been in real estate for 6 months, or have you really been in real estate for 1 month? Because if you’re really in real estate, you’ve made a deal by now, maybe several.
Here’s the truth: If you’re not making offers, if you’re not making deals, you’re not in real estate…yet.
Are you making the mistake of preparing and then doing nothing? Listen, if you’re prepared, then you have the education. You’ve paid a lot of money to take courses, you’ve read the books, and you’ve watched the videos. You understand that buying real estate is not rocket science. You understand that making an offer is not difficult. You have a power team: a contractor, an attorney, a survey company, and a real estate agent.
But you just don’t seem to be able to get one deal done.
What will it take for you to make a deal?
How can you overcome this fear and lethargy? Read More→
How Many Leads Do You Need?
Posted on August 10, 2015 byHow many times does your phone need to ring to make a deal? Well, the more rings you have, the more possibilities there are, right? But here is the catch: you don’t want just any calls. You want quality calls. It doesn’t matter how many calls you get if they aren’t ones that are going to lead to getting paid.
You may have heard real estate gurus telling you how to get that phone to ring. But I can show you how to get the phone to ring so that when you answer, you’ll have a potential good deal on the other end.
First, quality calls will decrease your overhead. I typically spend $1000 per closing on marketing. In the past, I bought the latest in high tech products which were supposed to send me 10 leads per day. The problem was that, while the leads were plentiful, the number that actually worked was less than I wanted.
You see, I want to make the time that I spend worth it. I want sellers who call me so ready to sell that I can barely finish saying, “Hi, this is Russ. How may I help you?” And I want them to say, ” I heard you were the best in the Atlanta area, you pay a fair price, you are respectful, and you do what you say you are going to do. I don’t care what you offer me, I will take it because I know you will be fair. I know you can close in 30 days. I trust you.”
How can YOU get these kinds of calls? I’m about to tell you. Read More→
More Deals, Less Time
Posted on July 6, 2015 byRecently I was coaching a student, and we came across what appeared to be an excellent opportunity. Because of my knowledge of the area, I was immediately able to give the student the right price to offer. I showed him how to negotiate the contract, which he did perfectly.
The result? With my knowledge, we were able to do only minimum work. While we found that the property wasn’t the deal we expected, we did so without wasting time. Since time equals money, it is essential to know your market so that you don’t work too hard for nothing.
We decided that this student, a new investor, was going to buy a house for $5,000 and wholesale it to an area landlord. Rents there were approximately $800/ month. Rehabbing would be close to $30,000. When we subtracted management, vacancies, taxes, insurance, and maintenance, the property would earn a 20% return. This was a great opportunity for anyone who wanted to become a landlord in that area—and a great opportunity to make a $7000 wholesale fee. Read More→
The Banks and You
Posted on June 8, 2015 byHere is some news that might surprise you…
banks and hedge funds can actually make your business stronger, especially if you own property.
I can say this with confidence because I’ve been in this business for a long time, and I want to share with you what I know about the relationship between you and the banks:
Banks: Right now, banks are holding the prices up artificially, meaning that values are rising. Banks are pushing the limits of pricing. They are getting data on the best-selling styles, features, and geographic areas. They know which houses sell and rent the fastest. Remember: banks are in the real-estate business; a business makes money. Do not expect them to treat you like a friend.
Hedge Funds: According to The Wall Street Journal, hedge funds are gathering analytics on the type of housing that is in demand. Their information is so specific that they know which houses’ rents can be increased. They also control the home owner and rental market, making it clear which way you should go when you put a house under contract. Read More→
Empower Yourself: Know Your Assets
Posted on May 11, 2015 byPeople often ask me, “Russ, how do you stay so motivated, confident, and upbeat?”
My answer? I know my assets, and I make sure that I have more assets than liabilities.
Do you know your assets?
Knowing your assets will allow you to assess whether or not you are heading in the right direction. It will show you if you are winning or losing. I like to know what my assets are because it builds my self-esteem and feeds my ego. There is nothing like a good ego boost!
Here are the 4 types of assets:
- Physical/ Money
- Community
- Education/ Skills
- People
Physical/ Money Assets
When we think of assets, we typically think of money! But there is much more than that. There are physical assets. Read More→
Think BIG
Posted on April 7, 2015 byHow can you get not only what you want but MORE than what you have ever wished for?
Nothing is Unreachable
Your success depends on your vision.
- Do you want to work independently, or do you want to work independently and be wealthy?
- Do you want to pay off your credit cards, or do you want to be completely debt free?
- Do you want to take a vacation, or do you want to travel the world?
When you expand your thinking, you can expand your success. Expect more and work knowing that you can have it. From the start, know how big you want your business to be and work as though it is already there.
Big business owners keep good analytical data on sales, acquisitions, expenses, and growth. With good analytical data, you can prove that you are a good business person, and people will want to loan/give you money. Read More→
Little to No Money? You Can Start a Real Estate Business Anyway
Posted on March 9, 2015 byDoes this sound like you?
I just don’t have enough money to…
go to a seminar and increase my real estate education.
I just don’t have enough money to…
put a house under contract.
I just don’t have enough money to…
fix up a house.
If this sounds like you, then we need to work on attitude! Thinking this way is self-defeating and will not lead to success. The reality is, you find a great deal, you can find the money. If the deal is a good deal, then the money will come with some creativity on your part. If the deal is average, no one will give you money unless you know how to market. The last choice is, of course, a bad deal, and no one will give money on these deals unless you are a super sales person and the stars line up properly, and even then, it will happen a only few times in your career.
With these things in mind, I am offering you some great places to get credit and cash so that YOU can find the money that you didn’t think you had. It IS out there. Understand that if your credit is poor to really bad, some of these techniques will not work. If you have assets, finding is much easier, but even with bad credit, you CAN find the financing. You’ll just have to work a bit harder. Read More→
Do YOU Have the Time?
Posted on February 9, 2015 byWe all have 24 hours in a day, right? No one has more or less. And some people are successful investors, right? Is that because they have more time than you do? Do they have 26 hours in a day?
This sounds silly, doesn’t it? Then why do so many people say that they just don’t have enough time to achieve success?
Are you one of these people? Do you say that you don’t have enough time?
Understand that time is a resource. Once it is gone, there is no getting it back. Time is not bigoted, racist, or only for the rich and beautiful. You can’t bank a few minutes. There is no going back. Everyone everywhere has the exact same amount and gets to spend it however they choose.
So how do you choose to spend your time? 8 hours sleeping… 3 hours eating…8 hours working…1 hour commuting. .. 1 hour with family… 1.5 hours getting ready to… that leaves just a short 1.5 hours to change your life. This must change if you are to succeed. Read More→
Your Latte or Your Life
Posted on January 6, 2015 byPeople who want to invest often tell me the same thing: they are not reaching their goals because they think they do not have enough money.
Does this sound like you? Did you notice that I used the word “think” above? This is because if you are one of those people who think you have no money, I am going to open the door that you do.
I want to tell you this: You have much more money than you think you have. You must focus on possibility rather than on lack.
Don’t get me wrong. I understand that when I have $100,000 sitting in the bank, I feel much more powerful and less stressed about my bills. When I get down to $10,000 in my savings account, I feel a little bit of nervous pressure too.
But I know that I have two choices about my reaction to this stress: I can give up, or I can use it as motivation. Personally, I use it to fuel my drive to make deals, tackle the marketing, build relationships, and make money. Read More→
The Good, The Bad, and The Ugly House
Posted on December 5, 2014 byI was recently on a panel discussing the business models of pretty houses vs. ugly houses. The good news is that both businesses are extremely viable in today’s economy.
Because I have been a successful investor for so many years, I know that there is no wrong choice between the two strategies, but I also know that it is essential to have both techniques in your arsenal so that you can take advantage of all possibilities. The more options you have, the better your chances are of making the most money.
I would like to teach YOU about both business models so that you have yet another tool to help you to succeed. Here is just some of the knowledge I’d like to share with you.
The Ugly House
An Ugly House is a distressed property. When you drive past an ugly house, you will see needed repairs, tall grass, and broken windows. There may be prostitutes, drug dealers, and individuals who make it unappealing to live in the community. A majority of Ugly houses are typically in lower socioeconomic neighborhoods, but sometimes in moderate or middle class neighborhoods.
The Ugly House Market is large because after 15 years, a new house will have a higher chance of being ugly because of deterioration. The owners have let things go. They have not maintained the property. They may not have bought a new roof or an HVAC system; there are large ticket items that need to be addressed. Read More→
To Deal or Not To Deal?
Posted on November 11, 2014 byA seller recently called me and asked if I would buy his house. I, being of sound mind and body, said, “Tell me about your house.” It turns out that he is a foreign national and wanted to leave the country as soon as possible. He was very firm on the price and terms. He wanted to sell the house in as-is condition along with the furniture. He was open to me taking over their mortgage payments (subject to).
The terms that the seller wanted included their price ($190,000 with the principle balance at $140,000) which was above fair market value for the neighborhood but included all of the furniture. He wanted $30,000 down. The first mortgage payment was $1040 per month. Utilities were $220 per month. There was no Homeowner’s Association. The seller valued the furniture at $30,000 and the house at $160,000. The house was in excellent condition, no repairs necessary; in fact, it was overbuilt for the neighborhood with professional landscaping, a swimming pool/spa, decks, and a definite “wow factor.” I estimated that the house would rent for $1400 per month.
Of course, I had done my research and knew that he had overpriced the property. I believed that I could get him to take $10,000 down, allow me to take over the payments, and have the payments at $1200 a month for 120 months. This would pay him off owner second at 0%.
My exit strategy was to put a home-owner occupant into the property. Selling all of the furniture would allow me to recoup my down payment. Read More→
Rent is Getting Too Damn High?
Posted on October 7, 2014 byAn article ran earlier this year, “Rent is Getting Too Damn High?” that has given me pause. In it, the author complains that the rent in Tampa is becoming too high. To this, I’d like to say: Quit whining. I want to challenge people to begin looking at what is happening in the city that is positive, what has happened because a few investors had the courage to step up and put their money where their mouth is by taking a chance. Did they do so in the hopes of making money? Yes—that’s what we all do when we invest. That is what we all do at our jobs.
For years, people have wanted to see this city cleaned up, and now they’re whining that the rent is too high? Here is what I want to know: Where was the author in 2004 when the City Police couldn’t control the deadbeats, the crime, and the prostitution? When there were undesirable tenants in the City Market Building?
Let’s look at what things were like a few years ago. The area in question was a drug haven and a veritable department store of prostitution. Yes, rents were low—they always are when there is a high risk of personal and property safety. This isn’t rocket science. Read More→
Knowing When to Move On!
Posted on September 8, 2014 byThere was once a great and powerful king, King BOB. He had everything that a King needed or wanted. King BOB had real estate, cars, money, jewels, wine, and a Queen. One day, a gardener came to offer his services to King’s gardens, so King BOB hired him. The Gardener brought in exotic plants and trees and planted specimens that no one had ever seen. When King BOB gazed upon the palace gardens, his mind was taken to great places of beauty and peace. King BOB, while walking his garden, began to consider new frontiers. His mind often wandered to continents yet unconquered.
Little did King BOB know that he was being challenged by the lowly Gardener. He was being introduced to a new spirituality, new wealth, and new ideas. He began to feel inferior to the challenges the Gardener was presenting. The Gardener, on the other hand, was doing what he felt the land needed. King BOB’s mind was now unsettled; he reconsidered his values, goals, and purpose.
Meanwhile, other leaders were envious that King BOB had such a vast and enchanting garden. This made King BOB feel great and more powerful. He became known as the Great Arborist, the Supreme Real Estate Investor and Entrepreneur. He was no longer just a great leader or counselor; he had reached new heights. Even the Gardener became famous. There were great leaders from all nations who wanted the Gardener’s services. Read More→
Working Probate
Posted on August 7, 2014 byWhat is Probate? Probate is a vehicle to create inventory. A common misperception is that probate is automatically a good deal, but putting a contract on a probate property is the same as putting any other property under contract.
Finding probate properties is the same as finding foreclosures, divorces, and tax liens. Spending time building or purchasing databases and then marketing directly to them allows us to have more probate properties to select from.
These are the factors that affect whether or not a probate is a good or bad deal:
- The purchase price in relationship to the after- repair value
- Appreciation
- Cash sale or owner financing
- Condition
- Type of property
In today’s current real estate market, appreciation is happening at such a rate that paying current market value has its advantages. Here are some things to consider: Read More→
Practicing Mastery
Posted on July 7, 2014 byDoes this sound like you:
“I have spent thousands of dollars on education…I have spent time researching the properties…I have been in a coaching program…I have spent money on marketing…
So why is it I haven’t done a deal?”
I challenge you to consider this: Could it be fear of taking a risk that is holding you back?
When you make a change in your life to become successful, you take a risk.
You take a risk because things might not turn out the way you think they should. Instead, I choose to think that, yes, they may not turn out the way I imagined, but they might turn out even better.
When I want to make a change, I look forward to it. I do it with mastery: having small wins every day. The small wins give me confidence and a sense of moving forward. The small wins can be that I did three things from my to-do list. Maybe I posted one ad or I answered one phone call or I called a new seller. These small things are mastery: mastery over your time and yourself. Mastery and consistency allow you to win. Read More→
The Down and Dirty: It’s All About the Numbers
Posted on April 8, 2014 byHere is a common problem in our industry: we find a property and we have to decide, is it deal or not a deal? Many people get hung up on this question, but you can’t let it paralyze you. You can’t worry so much that you lose out. (By the way, remind me to tell you the biker story.)
Here is the most important thing… you have to have solid information: comparables, equity, repairs, and rental rates (above $150,000 not necessary). Then you have to run the numbers. These two simple things will lead you to success in deciding if you have a deal or not.
Quick and Practical Advice on Deal Determination
- You can buy properties which are upside down IF the mortgage balance is more than what the property is worth.
- You can buy properties that have a tremendous amount of equity.
- You can buy properties with owner financing.
Now, ask yourself: What is my business model? Read More→
