Real Deal REInvestor Network

Think you should get an award for your highly-honed multitasking prowess?  Think again.  Here's a quick read from Julie Morgenstern, organizing genius, whose advice is much appreciated by those right-brained among us (me!)...
"Studies have shown that it takes your brain four times longer to recognize and process each thing you’re working on when you switch back and forth among tasks. This means that if your day is a random free-for-all in which you hop from task to task, your work will literally take much longer because of the real time you lose switching gears.             Think about it: If it takes you 10 minutes to get oriented to a new task every time you switch gears, and you switch gears 10 times a day, that’s over 1.5 hours of wasted time. Not only does multitasking have a quantitative impact on your day, it can also damage the quality of your work. Science journals have determined that managing two mental tasks at the same time significantly reduces the brainpower available to concentrate on either one, ultimately damaging the quality of your final product. Severe multitaskers experience a variety of symptoms, including short-term memory loss, gaps in their attentiveness, and a general inability to concentrate.               
 A powerful way to minimize the time lost to switching gears all day long is thegrouping of similar kinds of tasks. The pattern can be as simple as paperwork in the morning and calls in the afternoon or quiet work in the morning and interactive activities in the afternoon. Or, you could organize your day around your core responsibilities, setting aside two hours for creative work, one hour for financial tasks, and five hours for people management every day. If you were in business for yourself and had complete control over your schedule, you could devote one day to administrative tasks, one day to marketing, and three days to client service."
So, still think you're awesome to be multitasking?  It explains a lot as I pursue time-blocking.  Although, as a mother of three, multitasking will always be a part of my life.  Impossible to avoid all interruption, but I deeply appreciate the time lost when switching tasks and it explains a lot about my short-term memory loss!  How about you?

 

Following is an article by Gary Ryan-Blair which I found really helpful, and I hope it helps you, too!  It is very basic and to-the-point about our habits.  They either move us toward or away from our goals!

"Let's begin with FIVE painfully obvious truths:
Truth #1 - Successful people have successful habits.
Truth #2 - Unsuccessful people have unsuccessful habits.
Truth #3 - Habits are behavior, and behavior never lies.
Truth #4 - Your habits determine your past, present and future.
Truth #5 - If you want change in your life, you must change your
habits.

NOW, let's do a simple fill in the blank exercise to determine how
well your current habits are serving you.  Here's a health related example with two possible answers:

-    My health, exercise and eating habits have...turned me into a
firm, energetic and unstoppable powerhouse.

-    My health, exercise and eating habits have...turned me into a
flabby, lethargic and unmotivated person.

Now, take a few moments to answer these questions regarding your
habits.

1.   My savings and spending habits have...

2.   My sales and marketing habits have...

3.   My relationship habits have...

4.   My parenting habits have...

5.   My time management habits have...

6.   My demonstrated leadership habits have...

7.   My communication habits have...

8.   My work habits have...

So, how did you do?  Are your habits helping or hurting your performance?  The one true path to success and happiness in life is to change your behavior by replacing your bad habits with positive habits
that move you in the direction that you want.  It's easy:   if you keep doing what you've been doing, you'll keep getting what you've been getting, so change your behavior.

And that's exactly what I'm going to tell you to do--just change!

I want you to look at your results year to date, right now--today
and determine what habits you must change in order to secure a
better tomorrow.  Don't procrastinate as that's a destructive habit that is
definitely not worth repeating as it bears no desirable fruit and
WILL lead to regret and missed opportunity.
Create a New, Better Version of You!"
 
So basically, if we want success- or more success- we need to do the actions needed to create it!  Habits take about 30 days to create.  So study your habits, figure out which ones need to be changed or thrown out altogether, and consciously create new ones that will lead you toward your goals.   This is something I am personally working on, since in the end, we are completely responsible for our own failure or success!  Whether we are 18 or 80, it's great to know that we can get on the path to success, and stay there.

Remember, the quality of the life you lead is the quality of the questions you ask yourself and others: here are some POWER QUESTIONS to regularly use when you feel overwhelmed or have difficulty getting everything done you'd like to

1. What is my #1 priority for the day?
2. What is my #1 priority for the week?
3. Who  could help me with this or even do it FOR me in a fraction of the time it'd take me to figure out or get done? (and is there something I can do for them in return?)
4. Who do I know and what valuable resources do they have that I can access at NO cost, that will enable me to do this faster, cheaper, or better--  while having them happy to allow my use of them? (resources could be time, specialized knowledge, skill sets, tools, cash, employees, customer lists etc)
5. Is this important or is this urgent? (If one, time block it and get it done in chunks making it your priority 1 each day until finished. If two, deal with it AFTER your priority of the but get it done so that it doesn't hang over your head multiple days. If both important AND urgent, do it first and finish before tackling anything that's just one)
6. If I accomplish only this ONE thing today, would I be satisfied with my use of time and progress towards my goals today?  (great way to tell if your "priority task" of the day is in fact your best use of time)
7. Will this nagging problem in my personal or business life that is struggling me VANISH when I can just write a check and have done with it? (if so, put the problem to the back of your mind and focus on the solution = action to create income to make that problem disappear)
8. Am I being "busy" or "productive"? (if you're in the ocean and want to be back on dry land, busy treads water, productive swims closer to shore even if only inches at a time)
9. What "time-sucking activities" can I reduce more or completely eliminate so I have more time for both business and family? (doing this once a month as a 30 minute self-evaluation that you SCHEDULE in your calendar can work WONDERS for you)
10. What on my schedule do I need to do but DREAD doing? (Can I do it early in the morning so it doesn;t hang over my head all day? Can I delegate it? Can I outsource it?)

Hope that helps!

Danny Welsh
RealDealCommunity.com Managing Member
Chief Marketing Officer, HIS Real Estate Network

Have you ever had a rich friend, uncle, or neighbor that will not open up their wallet to do business with you?  There may be many reasons they refuse to do business with you.  Let’s look at three common reasons and what you can do to get their attention:

1.        Friends and family do not want money to get in the way of relationships.  Disagreements over money have caused many rich families to become divided.  One way around this is to create a company and make them a partner.  Show them how investing in our company is no different from investing in a company in the stock market (except you both have more control).  Set clear expectations of what each of you will provide to the company.  If you’re smart, you’ll show them all the things you will do and all they have to do is write a check and examine the monthly/quarterly reports you send them.  Your friends and family might also be more comfortable if you have other investors as well.  There are many ways you can ease their fears and finding what those fears are is a good first step.

2.       They don’t understand the investment.  There is an old saying, “A confused mind says no”.  Just because someone has accumulated some wealth does not mean they understand real estate investing.  Here’s where you have to be very clear on what you do.  You can’t overwhelm your investors with the blow by blow details.  They need to know what you will do with their money, how they are protected, what their return will be and when they will receive payment.  That is not to say you should hide any pertinent details, however they don’t care that you will be painting the rooms off-white.

3.        You lack credibility.  Let’s face it, unless you have a huge investment portfolio you are still somewhat unproven.  And for that matter, friends and family have known us at our worst (they remember we got a D on a test back in the third grade).  This is where your board of advisors and partners become extremely important.  While Aunt Susie might be willing to loan you a couple hundred dollars, she wants to know her $100K is going to come back to her.  If you have done some deals, make sure to highlight them in written format.  Additionally, correctly chosen business partners or advisors with experience can also increase your credibility.  To help with your personal credibility put together a professional looking credibility kit.  To help with the credibility of the deal, put together all the numbers, pictures and a summary of the investment in a professional manner.  (Personally I did not invest with a known “guru” because the presentation wasn’t done professionally).  The details in the presentations matter. 

Not all of your friends, family or neighbors with money will do business with you.  If you want to increase your success rate then make sure you are sending out a clear, concise, and professional message.  After you’ve done a few successful investments, they’ll be asking you to get involved.

Dana J. Lange

Millionaire in Training

Many experts agree with me that what I’m about to share with you is one of the key lessons to understand if you want to capitalize on more new real estate investing opportunities and be even more successful as a real estate investor. If you’re looking to make more money and do it by actively investing in real estate (the kinds that take “leg work”), then this article about new real estate investing opportunities, new real estate investing techniques, and new real estate investing strategies is for you.

There’s tons of information out there about “how to invest in real estate”.

Some good.

Some bad.

Some really bad. ;)

But if you want to find the best new real estate investing opportunities, no matter what you choose to learn and apply…don’t make the mistake of going at it with a narrow mind and narrow business model.

You need to keep an open mind for all possibilities if you don’t want to miss out on new real estate investing techniques.

What do I mean by that?

Don’t get me wrong. I’m not saying that ‘focus’ is not essential to your success in real estate investing. Focus is absolutely essential.

I mean that you never want to limit yourself. You never want to be so focused on one part of real estate that you miss out on the fortunes to be made by expanding your model and discovering and applying new real estate investing strategies.

All too often you will see people go out and focus on how they can make money and how they can make the most out of a deal or how they can do this or that.

They stay focused on themselves.

It’s NOT selfishness….just narrow-mindedness.

What is even worse is that they only focus on one type of deal, they only learn how to structure a certain type of transaction.  So now they are, for example, searching high and low for a seller and a buyer that fit a very narrow set of criteria— and ONLY that scenario.

While they are waiting for the “right fish” all other deal scenarios they come across, those that a successful and knowledgeable investor could take and turn a profit from by solving a problem for one or two parties involved…are missed out on!

That’s one reason why so many new real estate investors fail.

They’re waiting to catch the fish that comes to take the only bait they have.

They just don't have that many resources at their fingertips; they just don't know how to help people very well because they aren't focused on how to do that - they stay focused on themselves.

Danny Welsh

Mentor, MMMChallenge.com

Jobs and job creation are the life blood of any real estate market.  Jobs provide the money to pay rents and mortgages.  If you are looking to increase your cash flow from your real estate properties and increase appreciation, you had better pay attention to jobs in the area.  It’s really a matter of supply and demand.

 

At any given point in time all real estate markets have a fixed supply of units.  This includes all types of properties – single family, condominiums, apartments, etc.  The number of units only changes over time as it takes time for new units to arrive on the market.  You can determine how many units are currently vacant through a realtor or look at local vacancy rates.  Future units can be determined by reviewing the number and types of permits the local government has issued.  Single family housing generally comes available in three to nine months after permitting.  Apartments and larger projects often take up to two years.  Now you’ve determined the current supply of housing and the intermediate future supply.

 

So when new jobs are created, there is an increase in demand for the housing units as families move into an area.  The more jobs the better.  Employment statistics can be found on the Bureau of Labor and Statistics at http://www.bls.gov/ .  This provides current and predicted jobs for many markets throughout the United States.  If the area you are researching isn’t listed you can use the nearest large city as a proxy.  As always follow up with the local Chamber of Commerce, Economic Development Committee, and review local sources.  You’re looking for markets that are experiences a positive change – stabilization after decline or increasing employment.

 

The types of jobs are also very important.  First, look for a market where there is a diverse mixture of employers.  One only needs to look at Detroit to realize the housing impact when a market is supported by one industry.  Second, review the local newspapers (often online) or set up Google Alerts for new employers or employers adding jobs.  For example, Toyota opened a plant in Princeton, Indiana and many jobs were created.  Fortunes were made for those first in that market.  Manufacturing jobs bring many different jobs: white collar, blue collar, suppliers, and services to support the new population.

 

Job growth increases the demand for housing putting pressure on prices; both rents and housing prices.  Finding a market poised for growth is a good way to make fast money regardless of the types of real estate.  Next time you are looking for a place to invest, check out the employment situation to increase your odds of success.

 

Dana J. Lange

Millionaire in Training

From an April 13, 2010 article by Mortimer Duke.

"Warren Buffett, one of the steadiest most successful investors of all time, has taken his foot off the bag and is now investing in the Chicago area real estate market. During the most volatile time in economic history, Buffett is one of the first to draw and is now speculating in the Chicago real estate market.

Last week: “Berkshire Hathaway Inc.’s property brokerage bought Schiller Real Estate, expanding the reach of Warren Buffett’s company in the Chicago area as home sales rise. Schiller, based in suburban Elmhurst, Illinois, will become a part ofKoenig & Strey Real Living, a residential brokerage that Berkshire’sHomeServices of America Inc. unit bought last year.”  

From a March 31, 2010 article by PropertyWire.com

‘Added to this, the impact of the financial crash has not been as hard on the typical ultra high net worth buyer of prime property. This has meant that many wealthy owners of property are again looking for investments,’ says Michael McPartland, managing director and head of residential real estate at Citi Private Bank. 
  
‘The wealth market is relatively insulated. Our clients look for opportunities when everyone else is circling the wagons. Buying becomes opportunistic in a downturn, particularly as people turn to hard assets such as property when other assets experience dislocation,’ he adds.
  
How to buy has never been more sophisticated with a myriad of direct property investment options, funds and listed and unlisted companies, as well as more complicated instruments,such as derivatives, now on offer, he points out. ‘This allows investors to build up a portfolio spread over asset classes and sectors, as well as risk and reward,’ says McPartland.

From a HousingFinance.com article from their April 2010 issue:  

"...Freddie Mac’s commitment to the multifamily industry is growing.

“There should be no doubt that we are strongly committed to it. It’s a highly profitable business that is growing well, where we have an exceptional record,” says Ed Haldeman, CEO of McLean, Va.-based Freddie Mac. “One would be just crazy to think about less emphasis; in fact, we want to bring more emphasis to that business.” 

Based on articles like these that I'm seeing come across my desk every day, it looks like the money is coming back into the market.  

As Baron Rothchild famously said, "Buy when there's blood in the streets."  Well, there's blood in the streets now.  The economy is reeling, the housing market is on its knees and part of the commercial market are close behind.   At least one major bank, if not all of them, will only loan on commercial properties that are at least 51% owner-occupied.

Right now, we could be at a residential bottom.  While I believed that this would depend heavily on employment numbers, if extremely wealthy people are snatching up residential real estate for their portfolios, it might not be so dependent on individuals.  Several markets in the US are seeing a rise in housing prices at this time, though some are going into a double-dip, where they rose a little, but are falling again.

Commercial property and development has been very difficult to finance.  However, with Freddie Mac focusing more on such types of mortgages, financing will become more available.  Banks are more willing to provide money when they can wholesale the mortgage paper to the big guys. 

I think that with Warren Buffet, many other extremely weathly investors and Freddie Mac pouring money back into the real estate market, it might just get the boost it needs to create a sustainable rise.

Now, go out and buy some property, so you, too, can play with the big guys!

Christy Mellott
Millionaire in Training, MMMChallenge.com
http://www.realdealcommunity.com/members/profile/539/Christy, Millionaire in Training, MMMChallenge.com 

If you already use Lifelock, skip to the P.S. at the bottom!

Your credit score is ruined. You’re taking multiple calls
daily from creditors asking questions. The insurance
company called and said they were increasing your premiums
until further notice, sorry. The bank is open to working
with you on the mortgage but since when were banks known
for waiting for their money?

You can feel how you’ll work very hard to get your life
back to normal. You’ve got so much mail on your kitchen
counter, you’d think it was your birthday. Funny, you’re
not feeling like having a party right now.

That’s because you recently became a statistic-along with
the hundreds of thousands of other people who have been
victimized by the financial crime of identity theft.

Someone else went and had a ball with your identity, and
your good name- and left you to sort through the bills and
fix the headaches of the wreckage that has become your
life.

Think I’m exaggerating? Think again.

Listen…According to the Federal Trade Commission,
identity theft affects a staggering 10 million Americans
every year. 15,000 to 20,000 ID theft victims go looking to
the FTC for help each and every week.

That’s just in the United States. Worldwide, the problem
has an even bigger impact. And it’s growing; in fact,
identity theft has been called one of the fastest growing
crimes EVER.

In this modern society our private information is not as
secure as we’d like it to be.

The stories you’re hearing about identity theft and the
havoc it can create in your finances, life, and lifestyle
aren’t just coming from the newspapers or television but
from our sister, our uncle, our attorney, the chief of
police in our town….

Let’s face it…

Identity theft is a very real, very “right here”, very
“right now” threat.

And right now, you should know that you CAN do something
about it to protect your good name, and shield your
family’s life and lifestyle.

Read a bit further and see how you can protect yourself
right now for less money than your last meal.

When it comes to the lifeblood of our finances, as real
estate investors we CANNOT afford to be passive. We each
have to be proactive to protect ourselves.

Asset protection is highly important in real estate
investing. What too often gets overlooked by big players
and small investors alike, though, is one of our very
biggest assets…one that doesn’t have four walls and a
roof.

By now, chances are you have seen the internet banners and
the full-page magazine spreads and the CNBC interviews all
featuring the 9 digit number 457-55-5462, the social
security number of Lifelock CEO Todd Davis.

Check it out for yourself.

http://tinyurl.com/36kr69

Lifelock certainly got our attention. We’re willing to bet
it got yours.

Here’s what you might not know about the Lifelock identity
protection program:

1. Studies have shown that the sooner you detect ID theft,
the quicker you’ll recover and the less damage you’ll
suffer. Lifelock is on the cutting edge of fraud
detection.

2. Lifelock sets up fraud alerts for you (among many other
things). You can do the fraud alerts yourself, but you’ve
got to request them to be renewed every 90 days. These guys
do it for us automatically.

3. Lifelock charges only $9 per month for its guaranteed ID
protection services

4. And then there’s Lifelock’s million-dollar guarantee. Be
sure to read it at their website. You won’t even need
high-powered small-print glasses.

If you haven’t yet decided to take this important step to
protect your name, safeguard your credit, and put your
identity under lock and key…now is the time to begin
thinking seriously about what can happen to you and your
family in the coming years if you DON’T.

Bottom line? There are very few services or products that
you buy now and pay for it… and hope you never have to
use them…but it is nice to know Lifelock is there.

Don’t take our word for it. Take a moment to go to the
website and decide for yourself.

You can get enrolled in just a few minutes…and at nine
bucks a month…peace of mind never came so cheaply.

Here’s the link again:

http://tinyurl.com/36kr69

Looking out for ya,

Danny Welsh
Director, The Greatest Real Estate Giveaway

Managing Member, RealDealCommunity.com

WHAT IS IRC SECTION 1031?
Section 1031 of the Internal Revenue Code allows an owner of investment property to exchange property and defer paying federal and state capital gain taxes (15%+ applicable state taxes) if they purchase a like-kind property following the rules and regulations of the Internal Revenue Code. This allows investors to use all of their proceeds from their sale to leverage into more valuable real estate, increase cash flow, diversify into other properties, reduce management or consolidate into one property.

WHAT IS LIKE-KIND PROPERTY?
There is some confusion regarding what type of property qualifies for a §1031 tax deferred exchange. The Internal Revenue Code Section 1031 states that “no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.” Like-Kind property can include, but is not limited to, any of the following, provided it is held for investment:

- Single Family Rental
- Duplex
- Apartment
- Commercial Property
- Raw Land

For example, a single family rental can be exchanged for raw land, or apartments or a commercial building. In addition, properties can be exchanged anywhere within the United States.

DOES AN EXCHANGE NEED TO BE SIMULTANEOUS?
No, contrary to what most owners envision, a §1031 tax deferred exchange is rarely a two-party swap. Most exchanges are delayed exchanges, whereby the Exchanger has 180 days between the sale of the relinquished property and the closing of their replacement property. They must identify the potential replacement property(s) within 45 days from closing on their relinquished property.

WHEN IS A §1031 EXCHANGE APPLICABLE?
It is applicable whenever a property owner intends to SELL any property that is not their primary residence (and falls under the definition of like-kind) and plans to BUY another like-kind property within 180 calendar days following the closing of their relinquished property.

Luis D Roque
www.hisrealestatenetwork.com
by: Scott Saunders