Cash Flow Investor

A couple of days ago, I got tow calls from investors looking for advice on selling their properties in Philly. They both had the properties listed on the MLS but neither had seen much action in term of a sale. Their lament was “No one is buying houses these days”. Well, I did some due diligence and guess what, there are properties being sold in Philly (I know and investor that is closing on one in a few days, Yes a flip) but the sales process has changed and it is your job to choose and agent that understand how to sell your property.

Coincidently, in the next day’s USA Today, their was an article “Realtors’ spring marketing reflects market realities” in the Money section. The gist of the article is that more and more real estate marketing is moving online and major real estate companies are creating online marketing campaigns. Which takes me to your realtor.

I was on the phone with an investor, who told me he agent was marketing his property on the net. So we checked every major real estate site and guess what his property wasn’t there. Here’s my point. marketing a property today require some online knowledge and finesse. For example.

1. Did you (or your agent) post a video of your property on Youtube (there is a specific strategy for Youtube to generate traffic)
2. Did you (or your agent) but your properties URL and create a mini website for featuring your deal. (Here’s a thought, transfer ownership to the URL when you sell the property)
3. Are you using every possible site (Oodle, Local etc) not just Craigslist
4. Did you (or your agent) write great copy and take great pictures of your property

Thats just some of the things to consider but the point is if your agent doesn’t understand how to market on the internet using ALL of the available tools in todays market, find another agent that does.

Dedicated to YOUR success

Again, today I hate Real Estate Investing. Today, I had the pleasure of going to the Philadelphia Housing Authority’s Housing Choice office (the program known as Section 8). If you thought going to the municipal services building to get a license or pay a bill is bad, just try going to the PHA office. First it’s on Broad St (600 block near Ridge) where parking is readily available (Phila Parking Authority (PPA) has meters and the parking people get to make you look like a jerk on their TV show (Parking Wars, A&E). So we find parking, and then go into this newly renovated building , ride the elevator to the 6th floor and enter the PHA Office. The office is a small (very small), has a small waiting area and on the left a check-in desk.

At 3pm it is sheer pandemonium. At the desk are a combination of angry tenants wanting to know when they can move into a home, and angry landlords that have not been paid rent (a volatile mix), some overwhelmed employees and a broken system that has no idea when rent will be paid to the landlords. (So much for Section 8 being the easy RE Investing way).

The overwhelmed employees are doing their best in an awful situation because they have absolutely NO answers. NONE,Nada, Zilch other than “resubmit your paperwork and we will get back to you”. Get back to me about what? All I care about is the unpaid rent, send a check dammit no need to holla back!!!!

Ok, I’m venting. Long story short, this is why you need a team because when we left this den of incompetence (not the employees they are doing their best and their bosses are stuck behind an office door somewhere),(I needed a drink) but here is the result, Life time value of a tenant (What the h^%$ll are you talking about). I’m talking about lifetime value of a tenant and as importantly the passive income that has been produced over time. (Ok Dwight, this is a bunch of bu%%lS^%t)

No, it isn’t. Here is the reality, most of the landlords have been receiving passive rents for years and years. They have earned thousand of dollars and they (we) are pissed because our little apple cart as been upset. (Ok Dwight, more b^%$$$ll)

Nope, every once in a while in the passive income biz, you actually have to work. Something upsets the apple cart and just like the sub-prime thing-a-ma-jig and the credit crunch thingee, you actually have to do some work.

It’s like catching the flu, its inconvenient, you wish you never caught it and you want it to go away as soon as possible, but thats the risk you took when you entered the game.

No investments (or life) are without RISK, be prepared.

Dedicated to your success.

BTW - it is almost a year since my last RER class and I’m feeling the need to teach (yes, I love it). Watch my blogs for more info:

www.start-a-business-backwards.com

www.automated-lead-management.com

BTW - If you got some horror stories post them Yes we care

BTW - I got an email from someone that said they didn’t like me (quote rambling). You see, I don’t know about you but most times with me there are two conversations, what I’m saying and what I’m thinking really, thats what I do on this post and if you don’t like it, OK. (Well, this is the part when my inner censor says “Dwight don’t go to far”). But the point is, whats the point in having a blog and posting if you ain’t “Keeping it real” and yea the closer I get to 1 year the more rambunctious I get.

Dedicated to your success (may, there’s the inner censor )

I hate real estate investing, it doesn’t work, it full of problems, I can’t find a contractor, a tenant, I can’t refinance this freaking thing, I can’t find someone to buy this d%$m property, I’m running out of money.  I hate real estate investing and I am going to sell all of my properties and move to some damned island in the wherever and live off of coconuts and water. No worries, no problems nothing.

This is a call from a fellow investor that went to the Section 8 office in Philly because he had not received his rent for the 8 properties he owned all Section 8 properties only to find out that the Philadelphia Section 8 office had lost ALL OF THE LANDLORDS PAPERWORK AND SUSPENDED ALL RENT PAYMENTS. What a freakin disaster. As he was standing in line, waiting to submit (or re-submut) paperwork there where investors in line that hadn’t received more than $10,000 dollars in rent and Section 8 was not going to have the problem fixed for two months (maybe longer)

Whats an investor to do (I don’t know about you but sometimes I feel like one the “individuals of the mind”  in Ayn Rands book Atlas Shrugged, that went on strike and refused to contribute their talent to society because they beleived that society was basically incompetent)  anyway, what is an investor to do when it feels like the world has come to an end. Should they RUN FOR COVER? Well you try to ride out the wave, you again try another strategy or tactic. You try to use every tactic to conserve cash, if you are trying to sell a flip maybe you also try to find a rentor, maybe you try a mortgage take back (we will buy the note and it’s a viable process, call for info), maybe you try a lease option. My point is you do someting different because one thing I know for sure and that is the defintion of insanity is doing the same thing over and over expecting a different result. Try something new.

I’m back, hard to believe it’s been almost a year since I trained my last real estate class and what a year. Since that time things have sure changed (at least it seems that way) both personally and in the market. Personally, I’m dealing with a serious family issue. My daughter (she is 32) has cancer, she is a mom with two kids and a great husband but she has a serious form of non-Hodkins lymphoma. Just being able to say that has been a struggle and writing about it somehow feels wrong. (like I exploitation somehow).

But I decide to put it out there becasue I’ve learned some valuable lessons that can relate to your investments. Here are the lessons I’ve learned.

1. Lesson 1: Things never remain the same. In personal and professional life thing never stay the same and the need to change strategies, tactics, thinking is always required. Think about this from my perspective. Most dad’s expect their children to be healthy and outlive them, even if their relationship with their kids isn’t great. My lesson, things never remain the same. In the real estate world, many people have never seen an apparent stagnant market. They’ve only known property values to continue to go up, but things change and you have to adapt to a changing situation.
2. Lesson 2: Accept Change. Same idea, I have to accept the fact that my life and my daughter’s life has changed dramatically. Same in this market. I’ve gotten calls from people recently that have their first property and are having a difficult time figuring out how to make money. Well my response “Make That Change” (btw, thats a shoutout to Michael Jackson, who despite his weirdness made some great music on that Thriller album, 25 years ago). Make that change, rethink the strategy, change the tactics, Do Something NOW.
3. Lesson 3: You ain’t got a crystal ball. Didn’t ever think I’d be here would always have time to right wrongs, make amends fix things, but I ain’t got a crystal ball and neither do you. No one (not the real estate guru’s or financial guru’s , except maybe Alan Greenspan) anticipated this credit mess (yes, it’s only bad if it effects YOU). But the point is nobody saw this coming. So again adapt.

Thats it for now, looking forward to seeing you guys soon at some of the networking events and YEP, I got more to say. Next post - Your Realtor May Not Know How to Market Your Property.

Dedicated to your success

What are the risks and fears regarding starting a business. Well, most people start a business becasue they want to be in that business, they don’t start the business based on market conditions, or customers or marketing strategy. They often don’t start the business with a clear understanding of the competition and how the competition will effect their business. Most entrepreneurs start a business with these words “I’m going to go into the (enter your type ) business.

The Start A Business Backwards strategy is a more scientific approach, a more analytical approach. The start a business backwards strategy is to answer some or all of the questions and fears BEFORE investing in the business.

On Tuesday, January 22, 2008 I will reveal specifically how to remove the fear and risk from starting a new business. Signup Now and discover the secrets to Starting A Business Backwards.

So if you have every wanted to start a business and realize the benefits of owning your own business and where afraid to start join us on this F.R.E.E Teleseminar

Do you believe in ephemeralization, a term coined by R. Buckminster Fuller. It refers to the ability of people to use technological advances to continuously do more with less. Fuller’s vision was that ephemeralization will result in ever increasing standards of living for an ever growing population despite finite resources.

Increasing standards of living means that basically thru ephemeralization you can create or print money. Here’s an example. Almost two and 1/2 years ago, I traveled to Chicago to meet and listen to a very smart brother by the name of David Bullock at a seminar. When I met David and heard him speak, I knew he was going to be a tremendous success over the last 2 1/2 years my prediction has become true. David has basically created a multi million dollar business out of thin air. He has printed real money. That’s ephemeralization.

Over the next few months, we will be talking about how to print money out of thin air. We will be talking about ephemeralization and we want you to join us. Join us on our trip to financial freedom using ephemeralization.

Dedicated to your success

BTW, If you’ve ever wanted to start a business, thinking of launching a new product on January 16, we will be hosting the START-A-BUSINESS-BACKWARDS teleseminar. This teleseminar will reveal the secrets to starting a business, launching a new product or service and reducing or removing all risk. The teleseminar is f.r.e.e and you can register at http://www.START-A-BUSINESS-BACKWARDS.com/cf

New Year, New Look, New Focus

Happy New Year to All, I hope you’ve planned to have 2008 be a great year for you and your family.

Many of the people that read this blog know me from my mentoring days at Real Estate Riches and if you remember me at all you remember that I am the system guy. Well over the last few months I’ve started to evolve and as I evolve this blog will evolve as well.

One of the things I’ve learned about my self is that I loved, I mean loved teaching. I like to think I was good at it but it provided me with a sense of self that created gret joy in my life.

So, what does that have to do with Cash Flow Investor, well the topics will broaden. The focus will shift from just real estate to my broader comments on creating cash flow in other types of vehicles not just real estate. So, look for more tactical real estate tips but also strategic business thinking and tips that I find in creating, marketing and tracking business.

I am also going to promote some services I’m offering and the first is the START-A-BUSINESS-BACKWARDS teleseminar. That teleseminar is designed to help people reduce or remove the risk of starting a new business or launching a new product or service. In that teleseminar, I’ll explain how entrepreneurs and businesses use technology to find a market, define the market and decide in advance if that market is worth investing. The teleseminar is scheduled for Tiesday, January 22 at 8pm, you can sign up at http://www.Start-A-Business-Backwards.com/st3.

Thanks again for your support and lets mke 2008 the best year of your life.

One of the lessons that I’ve learned is that success leaves clues and one of the clues has been left by a very, very rich man, Donald Trump. Trump recently posted on his blog one of the keys to how rich people think.

Trump wrote “You might be surprised to learn that one of the most powerful habits of wealthy people is their ability to visualize a better financial future. They develop a clear mental picture of where they want to be financially, and then describe their financial vision in a simple and concise statement that serves as a constant reminder of where they are headed. This picture becomes a powerful motivator in their quest to produce and acquire wealth.”

His point is that rich people see themselves getting richer, that they “visualize a better financial future” and that is the amazing part to me.

Here is the question, what do you visualize as your financial future? Do you visualize a “better financial future” or do you visualize more of the same? Do you visualize your life getting better or getting worse or the same. The key is visualization, see the future how you want it to be, driving your future yourself instead of having circumstances drive you. Whats your choice? How do you want to live, driven by circumstances or guided by your vision?

Trump went on to write, “If you can get a clear picture of the way you want your life to look, that glimpse, quite often, may be enough to keep you moving ahead in pursuit of your personal dream of wealth.” He doesn’t guarantee a better financial future because you visualize but he does say based on his experience that having a vision, see the future as brighter “my be enough to keep you moving ahead in pursuit of your personal dream of wealth”. His point is that keeping the vision, in his experience will help you move ahead in the quest for financial freedom.

Trump continues “Let’s say that you have a plan to pay $900 a month to service your debt so that, in 18 months, you will your goal of becoming debt-free. That is your goal, to get out of debt. But your vision statement is something much bigger. It tells you what life will be like once you reach your goal. When you are debt-free, for example, you can invest some of the money that you will be able to save. Or you can enjoy the feeling of having the burden of debt lifted off your shoulders. Those are great motivators.”

His point is that having goals is NOT enough, his point is having a financial vision written down is as if not more important. A vision that creates a BENEFIT in your life that YOU WANT and that vision will help you stay focused on motivated towards achieving your goal.

So during this season when you may be setting goals and planning for a new year. Think bout Trump’s advice, I have.

I always enjoy this time of year between Thanksgiving nd the New Year packed with holiday cheer. My favorite holiday is Thanksgiving but I enjoy the entire season. As we get closer the Christmas and the New Year my thoughts turn toward planning for the next year and being thankful for this year and all of my blessings.

So, I wanted to take the time this week to not talk about tactical things and more about my planning process. This week is all about the planning and preparing for to achieve goals I’ve set for next year. But first I need to give thanks. Thanks to all of the people that have made my life the joy it is, thanks to all of the people that have supported me and thanks for just living to see another year go by.

Over time, I’ve learned on thing in business and thats the importance of having a team and a mastermind group that can help you think and I have been very fortunate to have a GREAT TEAM. A group of people that have my back, that check me when I’m wrong, that congratulate me when I succeed but most importantly that think with me. I’ve learned that having someone think with you is more valuable than anything in the world. So thanks to my team.

Thanks to my friends, I am truly blessed to hve a few great friends. I don’t mean acquaintances or people that I hope are friends but real friends many like family. My friends are often part of an extended mastermind group because mny of them help me in the personal parts of my life. They act as counselors, advisors and sometimes just shoulders for me to lean on. Thanks to ech of my friends.

And my family, my wife, my mom, my brother and sister, nieces, nephews, cousins aunts and uncles. I love them all even when they get of my nerves and I am grateful for their presence in my life. Thanks to everyone.

I wanted to say thnks publicly because I’ve learned that gratitude is an important component of my success. I’ve learned that the more grateful I become the more successful I become so saying thanks for my blessing is important.

Finally, I want to say thank you to everyone of the people that read this blog. You support is important to me and each of you is important to me. Thank you for reading, thank you for commenting and thank you for supporting the blog. It is my goal to encourage and publicly celebrate your success so thanks and Happy Holidays.

Many consumers have the mistaken idea that credit bureaus are federally supported organizations backed by a vast array of laws meant to protect creditors. Nothing could be further from the truth. Aside from the government simply recognizing the need for credit reporting, credit bureaus have absolutely nothing to do with the government. Credit bureaus are simply huge bureaucratic companies which exist for the soul purpose of making money by selling information about you-information they never bothered to verify.

Because of the vast potential for error in the credit reporting system, the United States Congress has enacted laws to protect the consumer from being victimized by the credit bureaus. It is your right and responsibility to make use of these laws.

The Law versus Practical Reality

As the credit bureaus computerized their processes and greatly expanded their reach and influence in the late 1960s and early 1970s, consumer complaints began to mount at the FTC and state attorney general offices. The credit reporting agencies quickly became huge bureaucracies second only in size to the federal government. The credit bureaus expressly served only the needs of their clients, the credit grantors. Many consumers were negatively affected by the credit bureaus, but they had no way to correct or change their credit information.

The American consumer lay completely at the mercy of the credit bureaus. The United States Congress enacted the Fair Credit Reporting Act (FCRA) in 1971 to insure that the credit bureaus investigate the credit items disputed by consumers. This federal law set procedural guidelines, which gave the consumer the right to challenge the accuracy, validity, and verifiability of the credit listings appearing in their consumer credit report. It also required that the credit bureau delete any credit listing if it was inaccurate or could not be verified. Learn More.

In theory, the FCRA charges the credit bureaus with responsibility to the consumer as well as the credit grantor. In reality, the credit bureaus resist, resent, and reject consumer disputes. The credit bureaus would rather be left alone to make a profit. And, each time a consumer challenges his credit, profit is lost.

The credit bureaus first defend their profits by erecting walls of stall tactics, including requests for more information, further clarification, and additional identification. The vast majority of consumers give up before they even receive copies of their credit reports. If a consumer manages to get a credit report, decipher the codified information, write a coherent dispute, and mail it, the bureaus may still find some reason to disregard the challenge. The entire dispute system is designed to frustrate and discourage the consumer.

Many consumers have the idea that the credit bureaus must complete their investigation within thirty days or be forced to remove all disputed information. They threaten to sue the credit bureaus if they don’t conclude their investigation in time. In practice, such thinking is delusional. Nobody forces the credit bureaus to do anything.
However, if you manage to submit a valid dispute letter, and the credit bureau investigates your dispute, the chances of success are good.

If a credit bureau cannot verify an item before completing its investigation, that item will be removed. Many creditor grantors are simply reluctant to take the time to verify the data. While the credit bureaus are in the business of reporting credit histories, creditor grantors are not. Click Here.