Real Deal REInvestor Network

Dr. Russell Conwell, author of Acres of Diamonds, was an amazing man, with a true sense of purpose and passion.  Though he lived under the radar, his legacy is hard to miss.  Though pulled in many directions, life was a continuous flow for him as he focused on one thing at a time, and truly cared about those he met along the way.  People loved and revered him.  He delivered selfless service with a dedicated persistence that motivated masses and manifested his many visions. Conwell had big visions, held the space for manifestation, and knew that they would.  He had the faith of a mustard seed, and knew that nothing was impossible.     

Conwell enthusiastically and continually invited people to step into their greatness and open to the possibilities.  There was no need to leave home… start where you are planted.  The “acres of diamonds” are awaiting you.  Conwell knew the power of starting where you stand, as you are, and holding fast to the vision, knowing that the vision is already complete in spirit.   Symbolically, his reference to digging in your garden represents going within for your spiritual gifts and inspiration that would lead you to your next idea, vision to serve.  Conwell said greatness consisted of “doing great deeds with little means and the accomplishment of purposes from the private ranks of life”.  He lived service, continually asking himself how he could solve problems that would make life better for the planet.

The totality of this reading about, and by, Conwell resonated with me.  He was in the world to do all the good he could, as I am.  We hold the same values, and work ethic.  He was real and humble as he worked tirelessly, ceaselessly to make the world a better place.  People were programmed for success in his mind and he held high regard for all.  Conwell especially liked to encourage those with little means to better them selves when they held great desire to do so, thus was Temple University born.  He believed in people investing in them selves, liked to help, but not make it too easy to attain desires.

Conwell was a master at discovering true needs and then putting a plan into action to meet them.  He started his ventures small, i.e. his hospitals, based upon need, and with great faith, created the energy and leadership to take people, systems, and situations to a greater good.  He worked from a place of ‘service’, not expecting any thing in return.  He definitely stepped out on faith, and in the eleventh hour, and no sooner, was his needs so oft met. 

Conwell held to spiritual principles and continually called him self and others to evolve and grow.  He held that prosperity was within every one’s reach, and, their duty.  Honestly making money was gospel to him; it is wrong to be poor.  Conwell knew you could do more good with money than without it.  For me, money is equivalent to meeting needs and being a greater philanthropist.

In so many ways, Conwell’s approach to life and business reflect mine.  There were points in the reading that brought tears to my eyes as the Truth jumped out at me and brought back memories of persistence in the face of obstacles, and then overcoming.  At this point as I travel my journey, I continue to hold my vision, the mission I am here to accomplish, in all that I do despite the long hours, and that which would pull me off track.  In all I do, I serve people and seek to empower them into their greatness.  Real estate serves people who need homes, and communities that need to provide a stable life for its inhabitants.  Safe housing and businesses are such a basic need.  Those in the housing distribution channel have needs to be met so that the end housing product can be delivered.  

As I speak publicly, I call individuals and businesses to step into their power, to create anew, to tap their inner wisdom, to use their gifts and talents.  As Conwell was, I too have been called to speak to the masses and have left life works in order to follow the calling.  

The message that Conwell carries is as relevant today as when he lived years ago.  And, it is mine to carry.  It is ours to carry.  

Most people are familiar with P.T. Barnum’s circus, the “Greatest Show on Earth”.  He was called the “The Greatest Showman in the History of the Universe”.  However, the fact that Barnum was one of the richest men of his time and taught success principles is not as known.  Barnum’s, “Art of Money Getting”, is chock full of very relevant insight for any time.  He gives 20 “rules” that a “money-getter” must live by in order to be successful.  Barnum begins with noting the importance of mind set in being able to define, plan for, and then accomplish what one sets out to do.

Barnum noted “even though it easy to make money, it is much harder to keep it”.  Simply put, to make money, expend less than you earn.  Even though you might think this simple, he says, “perhaps more cases of failure arise from mistakes on this point than almost any other.”  People only think they understand the economy and they don’t.  “Economy is not meanness”, true economy is making income exceed the outgo.  Cutting corners in a miserly way, and then splurging on the frivolous will not make one a success.

“Forego consumerism for consumerism sake”, stated Barnum; live more simply, consume less.  Save pennies and dollars, accumulate interest, and save for a rainy day.  If you have more month than money, he suggests a ‘cure for extravagance’.  Barnum’s exercise will help assess spending habits, necessaries/comforts versus luxuries.  Let go of the need to keep up appearances, unnecessary to prove self-worth.  Vanity and envy lead to false standards of perfection, and just keeps one poor.

Barnum’s premises around making money, saving, and the economy rang so true.  Taking a look at what is going on world-wide with economic issues, debt, and consumerism, it is clear that sound principles, basic truths, of living/business have oft been discarded.   

Good health is wealth, according to Barnum.  He called it the foundation of success, the basis of happiness.  Being aware of the laws of nature, and staying close to them is key, as is avoiding alcohol and tobacco so as not to dull the mind and get in the way of clear business decisions.

Don’t mistake your vocation - be clear on what you are setting out to do, and then focus.  Select the right location, look at the competition, and avoid debt, as debt will rob you of your self-respect.  Debt means that your money works against you.  “Money is in some respects like fire; it is an excellent servant but a terrible master.”

The “rules” that Barnum set forth are certainly worth reviewing for one’s self-inventory.  Persevere; what ever you do, do it with all your might; depend upon your own personal exertions; use the best tools; don’t get above your business (borrowed money can be suicide); let your business be one of service and excellence; learn something useful; let hope predominate, but be not too visionary; be systematic; be versed in world affairs; diversify but don’t invest in that which you don’t know, or you’ll lose.

Barnum also said don’t endorse without security, or you’ll lose.  I’m aware of a number of investors who have lost millions during the recent real estate downturn as they hadn’t secured their loans, a tough lesson to learn, the hard way.   

Advertise your business, be polite and kind to your customers, be charitable, hold your business secrets close to the vest, and preserve your integrity, were other ‘rules’ Barnum espoused.  Although this might seem to be a list of the obvious; it is obvious, that it isn’t obvious. 

“The inordinate love of money is the “root of all evil”.  Money, when properly used, blesses, enabling expansion of the scope of human happiness and influence.  Wealth, requires responsibly, and using it as a friend to humanity, not to hoard or be greedy. 

The history of getting money is the history of civilization; and, whenever there was the right use of money there has been proliferation of art, higher learning, cultural and educational institutions, and science advancements.  The money-getters are the benefactors of our race.  Today, the pendulum appears to have swung too far one way and is painfully finding its way back to Barnum’s “true economy”.

Barnum’s work was inspiring and affirming, providing principles for success that never change.  Personally, I’ll be keeping a list of these rules in my business plan for periodic review.  Though always striving for excellence, it is essential to make sure it is built into the business plan, while holding employees, or joint venture partners, to these standards. His call for focus and immersion were strong as well, so necessary when building a business.    

P.T. Barnum’s wisdom and inspiration is strong, a must read for anyone who is in business, and seeking success.  When writing, or reviewing, your business plan or manifesto for living, inculcate the “rules” that Barnum so adeptly set forth.  Use them as a benchmark for your business, and life, and see where you might have strayed or failed to put some rule into place.  I certainly plan to do so.  To our continued success!

James Allen so many years ago wrote As a Man Thinketh.  I met this book sometime in the 70’s.  I say met, because it is like an old friend and I continually revisit the wisdom that is so aptly unfolded in this book.  Even better, I do my best to monitor my thought process on a daily basis and take a daily inventory so that I can self-correct when necessary.  I am the KEY to what I will be! “A man is literally what he thinks, his character being the complete sum of all his thoughts.”  Do you own your thoughts?

“Mind is the Master-power that moulds and makes,

And Man is Mind, and evermore he takes

The tool of Thought, and, shaping what he wills,

Brings forth a thousand joys, a thousand ills: --

He thinks in secret, and it comes to pass:

Environment is but his looking-glass.”

Everyone has a family of thought people that live on the streets of their mind.  Personally exploring these individualistic aspects is a worthy undertaking.  These characters have been developing since birth.  There is actually a neurological correspondence to thoughts.  For instance, as an example, when the thought ‘not good enough’ crosses the mind repeatedly, the neurological synapses are quick to fire and reinforce that thinking.  Hence, without even being aware of it, this theme, ‘not good enough’, plays out in one’s life and can undermine many a great opportunity and self satisfaction.  We can become our own self-saboteurs.

Now, a young child doesn’t come up with a ‘not good enough’ message in and of his/her own.  That message must be heard and perceived often to stick, become ingrained, and become one of the thought people that will rule life.  Or, one very strong and emotionally laden piece of input could accomplish the same thing.  The subconscious, or unconscious, mind doesn’t discriminate what it hears.  It will merely hold the thoughts, like a file cabinet, that the thought family have come to own over time.  Have you heard, “change your thinking, change your life” before? Could we have a choice in this?

We are given ‘free will’ to choose.  So, when utilizing our authority to choose our thoughts, are we choosing the hi-road or the low-road that exists in this dualistic world?  When we take the time to reflect on outer experiences, it gives us major clues about our inner workings.  Wats up, thought people?! “So within; so without.”  Taking a look at what’s working and that which doesn’t appear to be working, allows us to do some self-reflection.  And, choose again if we don’t like what we see.

The first step is to become conscious of what we are thinking.  Yikes!  Our thoughts are prayers!  Thoughts held in mind produce after kind.  So those appearances that we don’t like are there to help guide us to where we want to be.  I know that God has a higher plan for me, and for all, so I can readily say, see past appearances and know that God is in charge in the Absolute.  When our thoughts cause us to run away from the Truth, and life becomes uncomfortable, it is often in the pain that our thoughts self correct and return Home.  There is always a divine point of grace at play.

Changing those thought people takes conscious effort.  Affirmations are powerful tools to use in shifting thoughts.  First quietly deny that which no longer serves you.  Then, use affirmations that are written as though they are already present- done - manifested, and repeat them with an emotional intensity that says I own this now!  It takes time for those neurotransmitters to shift the synaptic charge.  Or, there also exists what I call “spiritual 2X4s” that come along in life and smack us in the head. How many plagues will Pharaoh have to bring down upon us before we soften our hardened hearts and are set free, referring to a Biblical reference.   Moses said, “Let my people go!”  Major events can more readily and quickly shift the thought process.  And, there is also the possibility that one major event, such as a near death experience, can totally change the construct that we operate under. 

I believe we are called to collectively take the higher-road.  And, one way or the other, we get there.  One way can potentially be much more painful.  We are all capable of the most heinous crime, and we are all capable of the most saintly service.  I choose the high-road, and there but for the grace of God go I.

I am consistently using positive mind-conditioning affirmations, trust the process and know that God is in charge.  I choose Miracle-Gro to fertilize the garden of my Mind.  I am experiencing miracles everyday, in every way!  All life experiences have brought me to where and who I am today.  All the rumbles and stumbles of my thought family have been my teachers and guides.  My soul has attracted to me that which is mine to learn.  I have erred and forgiven and chose to do over in a higher way.  I give thanks for all the thought family, all experiences, yet choose to let negative imprints go.  I choose to be Free!  Free at last!  This is my daily affirmation!

Here’s looking at you!  Here’s looking at me!  We are but reflections of one another.

Read or download/print this book here: http://hisrealestatenetwork.com/James-Allen-As-A-Man-Thinketh%20Free%20Ebook.pdf

This past weekend I had the opportunity to meet Roger Salam and hear him speak at the Millionaire Speaker Camp.  Salam is an author, speaker, and master mind entrepreneur, who is unique in his approach to life and his multiple business enterprises, including real estate investing.  Interestingly enough he started his presentation with a focus on The Seven Habits of Highly Successful People by Steven Covey, a long-time number one best-selling business book.  Perhaps you’ve read the book.  If not, it is not only worth the read but is worth inculcating into your life in a conscious way. 

Salam’s question to the audience was “What are the ‘Seven Habits?”. Most of the audience had read the book but no one could name all of the habits.  The next question was ‘How can you integrate these proven key points into your life if you aren’t aware of them on a daily basis?’.  Salam stated that “you must live it to own it”.

What is it that you must live to own?  What are the habits that will transform your life?

‘The Seven Habits’ include:

1. Be proactive
2. Begin with the end in mind
3. Time management – First things first
4. Think win-win
5. Seek first to understand and then be understood
6. Synergize
7. Sharpen the Saw – Balance and self renewal

I believe that when reading the book one is able to take a personal inventory and benchmark where they are in regards to the ‘habits’. However, my focus right this minute isn’t on the habits per se, but on forming a response to Salam’s question of “Who can name the Seven Habits?” Having read the book years ago I had to ponder my inability to pull up the “Seven”.  My conclusion is that after reading the book and looking at the habits, I saw that I was already operating in the “Seven Habits”.  Congratulations, maybe. Maybe, because I can’t say that there haven’t been lapses now and then in all of the areas since I read the book. As I reflect, had I taken a more serious look at posting the “Seven” and reviewing them as a part of my daily planning, I could have avoided some of the lapses experienced and moved forward even more stealth-like in my personal and business life.  Do over time!  I have now  made a list of the “Seven Habits” and will be posting them by my computer and in my planner for daily review.   I’m also grabbing the  book off my shelf for further review.  I need to make these habits real, alive, so that they can fully serve me.

My question to you, is how real are the many real estate investing courses you have read and  participated in?  Do you own the material?  Have you taken action, even if it wasn’t the right action or it didn’t quite get you where you wanted to go?  Just a couple of weeks ago I picked up one of my original Robert Allen manuals (from his 40 lb box – LOL) and scanned the pages.  Somehow, it all seemed so basic to me at this point, but it wasn’t when I started the investing journey.  I believe that I have lived a portion of  the content to the degree that I can now own it.  That doesn’t mean that I have graduated from the real estate investing university in the sky.  There are more courses to take along with the need for a lot more hands-on experience.  Knowledge is best accommodated and assimilated when it is applied.

Real estate investing is a vast territory. And if you haven’t already done so, I’d encourage you to pick a place to start, garner the information needed for one investing strategy (congruent with the market environment), implement what the books and courses say to do, ask lots of questions, develop and review your plans (yes, this requires a clear plan of action) and then take massive action with a constant eye to measuring your success.  For those already in the game, where are you today?  Are you on target?  The rules have changed and seem to shift daily based on lenders tactics, the economy, the online community available, and changes in local through federal regulations.  Are you on top of your game?

Whether new or seasoned, I invite you to post your action steps where you can see them every day, right beside the ‘Seven Habits’ should you see the value in following a proven success plan.  Find successful investors in the field and learn from them, directly or indirectly through observation.  REIA’s are an asset and provide education, potential mentors and networking opportunities.  A lone wolf may succeed, but a good team will surpass that metric.  Study your territory; know that farm inside out. If you are working virtually, be sure to do extra due diligence. Make sure the “trust” part of ‘know, like and trust’ is verified.  Become part of a master mind or accountability group.  Do it and do it and do it, until you own the strategy.  Then rinse and recycle to the next strategy.  

Being conscious of what you have learned and taking strategic planned action on that knowledge is crucial to your success.  Consider breaking the habit of read - shelf - read - shelf all your shelf-help books and materials.  So maybe it’s time to read, or revisit, the Seven Habits of Highly Successful People, along with identifying solid information and approaches to achieving your investing strategy.  Then decide to “own the habits” and/or “own the strategies and plans” through daily review and implementation.  Doing this WILL make a difference in your life and business.  I certainly will be doing this. "You must live it to own it!"   And, the next time that Roger Salam offers a financial reward for anyone who can name the Seven Habits of Highly Successful People, I’ll be ready.  Will you?  

Spent some time reflecting recently on the energizing and amazing 3 ½-days Rainmaker Summit and 1-day Global Ambassador Program presented a couple of weeks ago by Bill Walsh’s Powerteam International.  The days were long but well worth every minute.  The group of entrepreneurial business owners participating was of high caliber.  The presenters and coaches were tops!  This was a personal and business development educational event that also built community and great connections.  When you find yourself in the midst of excellence it is good to share a bit about the experience.  Since you couldn’t make it… I’m highlighting portions of the event for your consideration.

Many readers may have experienced similar events, but many may not have attended such a personal and business development coaching session.  This kind of training should be a life-long occurrence; it serves the seasoned as well as the new entrepreneur.  Just being appraised of what was presented may serve as a benchmark of your awareness of the tried and true as well as of current trends.

The focus was on unlocking your passion and becoming inspired about your true personal and business ‘vision’.  Clarifying your ‘vision’ and then your ‘why’ begins the process of empowerment which ignites the power to pull you to your biggest goals, living your dreams.  The ‘why’ is always what keeps you motivated when the temptation is to quit.  If you haven’t identified your vision, your core foundation for being, it is essential to do so.  Taking the time to really discern your ‘vision, why, passion’, will make such a difference in all that you do in life.  Those currently participating in the MMM Challenge application process with the Real Deal Community are being asked to look at this very issue.  If you have already built your current business with a clear vision and why, it might be a good time to take stock and see if you are really on track.  Are you congruent with what you say and believe versus what you do?

Another key focus of the event was on having solid business plans and systems.  Planning must include the systems that will help to keep you moving forward consistently.  Systems are critical to a thriving business.  For example, the McDonald’s system is instrumental in its international success.  Success or failure often hinges on the quality of systems that have been put into place, or lack thereof.  Systems serve to make your processes repeatable at the same level of quality time after time.  Small business owners, like so many of those in real estate investing, often have to do all aspects of the business themselves.  This solo operation may lead to inefficient systems which can make the business cumbersome and sluggish.  It really takes a team!  Real estate investing is a business and you should be looking at your venture as such.  Realizing early on that you are starting a business that requires planning, development, and the implementation of effective, supportive systems, can help you avoid serious and expensive mistakes down the road.  Many investors that I have run into don’t really view investing as a business and often think that it suffices to just go buy a house and flip it.  And, for some that works, for awhile.  Now there are lots of gurus out there that say they have the ‘magic bullet’ for a winning system.  One pops up about every other week; they take turns.  Once you know you have the need for systems, or need to update yours, be sure to do your due diligence about which system you build, use or buy.  Thinking though your business model is crucial to supporting your success.

And, here it was again.  Every time I turn around (not only at Rainmaker), a consistently repeated part of the product development and marketing plan that seems to be getting extra emphasis is value, value and more added value.  Value has always been part of the business proposition but ‘value’ is truly becoming a key way of distinguishing yourself from the pack, from all the clutter out there.  Sometimes the added value is a small thing but can make an impression that keeps bringing the customer back, and referring others.   What are you doing to make yourself memorable?  How do you differentiate your business? Would your customers refer you to their family and friends? Why?

It is important to keep your train on the track once you start the journey.  Given that you clarified the vision of where you are going and why, and developed your plan and systems, it is necessary to measure your results so that corrections can be made that further your business success.  Since there are only 86,400 seconds in a day, time organization and accountability really assist you in staying on track.  Is this aspect covered in your business plan and systems?  Staying focused and on target will make a significant difference as you build, maintain or grow your business.  Master mind groups, accountability partners, as well systems benchmarks/metrics, can all help you stay on track.  If you aren’t using a great time management system, then it is time to decide which vehicle will be one that you can work with effectively.  Then use it religiously!

Do you have a brand?  Once you know who you are as a business, and what you are offering, be it wholesale products, commercial JVs, short sales, notes buying, tax liens, or any range of those products/services, it is so very important to build your brand.  You guessed it, differentiate yourself from others, or join your competition and work together as affiliates who help one another grow their related businesses.  Having a brand isn’t enough.  You must advertise that brand.  Online and offline presence is essential.  Your  social media brand will need to be promoted.  Syndication is one way to connect your activity throughout the social media world and drive traffic to your website or Word Press blog.  If you are using Word Press as your interactive website, you probably won’t need an informational and/or store website. And now, Face Book is moving to the use of the ‘i-frame’ that will allow you to move your website on to your Fan Page.  Be sure you have a clear brand and a unique selling proposition.  If you aren’t sure how to do that, there are many who excel in that service who would be more than ready to serve you.  Then again, you can take the time to research and study branding and then review-copy-alter the best of the best concepts that you find online and in other publications. 

Offline marketing has years of proven strategies and tactics, though some of those are shifting with the move toward online marketing. Sheila Stewart, an executive business coach with a proven track record and years of experience in marketing and advertising, provided a plethora of ideas about marketing strategy, advertising and sales.  It was clear that the integration of offline, online, and mobile ways of finding, and then meeting and exceeding customer needs, should be the integrated thrust for today’s business marketing.  Have you identified your strategies in this arena?  There are many pieces to fit together but the sooner you start to understand the pieces, how they fit together, and how they serve you, the better off you will be.  Finding virtual assistants (VA) to help put some of these tactics into place can be fairly inexpensive.  However, it sure helps to have a basic understanding of what is happening with online and mobile marketing in order to hire and manage your VA’s effectively.  And, be sure to have a seamless approach that integrates the best marketing strategies and methods to serve your targeted market segment(s).

 Austin William Walsh, a 19 year old entrepreneur with his own business since age 16, covered the role of Face Book in social media and how one must truly understand the sales funnel, how to drive traffic, and how to utilize social media as a part of that funnel.  Social media is continually evolving as we see with Face Book out-pacing Google.  Overall, there was a substantial focus on building and using Face Book Fan Pages for business, and how to build and monetize your brand.  Probably an understatement, but doing business online will be essential in the near future, if it’s not already, especially in real estate endeavors.  If social media is an area that you aren’t utilizing or just starting to look at, it is definitely worth your time to familiarize yourself with the dynamics of this marketing medium and make it a part of your business plan. 

There is definitely a major trend toward the use of short videos in all online presence.  Get your flip-cam and start to explore how to use and edit.  Videos are already beating out ‘text’ advertising.  A new emerging company, MOJO, headed by Ira Rosen out of Scottsdale, is positioned to capture the mobile market through the use of video that can readily be dropped directly into the text message being sent out to the mobile world of i-Pads, Droids, Blackberry’s, etc.  MOJO knows that video email utilization, currently not on the market, will only grow and provide business owners the capacity to have direct access to existing and potential customers.  This mode of direct customer contact will result in a higher percentage of text messages opened due to the embedded videos.  Video has a much higher capture rate than text.  The industry is definitely moving toward mobile strategies.  Soon we’ll all be making our own 30 second spots and connecting directly with the world!

One other note of interest about MOJO was my conversation with the principal, Ira Goldman.  He is an older entrepreneur who told me he didn’t even know how to use the computer three years ago.  Ira connected with a young man in his twenties, Cory Sanchez, who had a technical background and a great idea.  This connection led Ira and Cory to building a primarily ‘twenty-something’ staff to support a million dollar idea.  Ira and Cory were definitely on fire about the video product they are bringing to the market.  The real point to share here is that there is a great need and value to pair skills and wisdom regardless of age.  If you think you can’t jump into the online world, then you are right.  You can’t.  If you take action, pursue ongoing education, connect with the right partners, VA’s, etc., then YOU CAN!  I am a firm believer that you can learn new things if you are open to it.  It is a right, privilege and choice to learn new things; it is a choice to stay open to possibility.  Who of you are holding the next greatest idea, invention or service?  Are you open to the realm of possibility of pursuing joint ventures that are collaborative and mutually supportive?  Can you be an old dog that can learn new tricks?  Can you be a young buck open to the wisdom and experience of those older than you?  Merge the best of both worlds and see what you can come up with that will serve the planet in new ways.

Speaking of blending ages in business, as a result of this Summit I now have a new master mind partner who is in middle school.  He attended the entire event, sat taking notes on his laptop and already has a business building personalized backgrounds for Face Book Fan Pages, LinkedIN, Twitter and YouTube.  Got to love the spirit!  He will definitely provide great insight into anything that I am working on, and it will be easy to support his entrepreneurial ventures.  As a former teacher, a Dean of a middle school, and a professor, I must say I was impressed.  And, as for college student and entrepreneur Austin Walsh, whom I mentioned earlier, he already makes a six-figure income and speaks internationally.  He noted that when he is goes to a party, which he loves, he is busy looking around the room to see how he might, from a positive perspective, monetize the situation.  Austin is acutely tuned into cause marketing as well and really comes from his heart in his dealings with people.  How many of you are thinking that way?  How many of you are taking action?   I absolutely love to see resourceful young people who are not totally programmed for the ‘moo-baa’ herd mentality of life.  Are you involving your children, nephews and nieces, in your business in real ways?  Do they have a sense of all that goes into your business?  Have they participated in some way?  Do they get to see you win?  Fail?  Do you encourage their entrepreneurial spirit?

As a side-note away from the Summit, while on the topic of role modeling for and encouraging entrepreneurial spirit in youth, I’ll share how one of my accountability partners involves his ten year old daughter. This investor does a hearty business with gut rehabs and buy and holds.  His daughter goes along when he goes to work on houses and gets to see what happens to ‘ugly houses’ that eventually transform into ‘desirable’ housing.  She has helped to sweep and knock away cobwebs, helping her dad in small ways.  She also comes along to our accountability meetings and does her homework, but still is exposed to the process of our group holding each other accountable.  She even saved her own money to buy her first laptop computer.  She’s not being rushed into overly mature ways of being, but is learning about business, work ethic, the value of money and her dad’s role as a businessman.  I daresay she will be prepared to take on life as a successful entrepreneur at an early age if that is her choice.  It is my hope that you are modeling entrepreneurial behavior for any young person in your life. 

Ross Goldberg, an SEO expert and author, also presented his perspective on creating web-based traffic.  He supported the use of content based links as a viable way to increase your website ranking despite other alleged guru’s suggesting other methods were now more effective.  Ross noted a number of tactics useful to drive traffic to your website, including:  social media marketing, Digg and other similar sites, RSS feeds, blogs/directories, videos, press releases, article and e-book marketing, squeeze pages, affiliate marketing, and web directories links. Don’t know what all of those tactics entail? Check the web and start to understand the pieces and which will work for you.  No matter what the marketing presenter’s background throughout the event, the point of commonality was their emphasis on how to achieve effective online marketing.  Do you think that you might want to pay attention to this aspect of your business?  Yes, or yes?!

The topic of Google AdWords was presented by Perry Marshall, Internet entrepreneur and the most quoted authority in the world on the subject of Google AdWords and pay-per-click advertising.  Perry shared information on how to increase your click through rate and reduce the cost of your advertising budget on Google.  He also offered split testing techniques.  Entrepreneur Scott Rewick, the One Hundred Million Dollar Man, continued the internet discussion sharing his many year’s of wisdom on low-cost media buying strategies that attract new customers.  All the presenters were great and filled their presentations with lots of useful content.  It is good to learn from those who have been very successfully involved in the industry for years. 

And, not to leave out real estate, Marco Koslowski, shared his Luxury Home Sales program.  He deals with properties $700,000 and higher.  Interestingly enough most of these homes that are currently being auctioned off are going to international buyers.  America is on sale!  Marco is such a positive and animated presenter who is the embodiment of a rags to riches story, now owning eleven different business and ready to launch a new clothing line.  Marco persisted with hard work, failing before winning, and developing systems and fine tuning them, all recurrent themes for those who eventually make it to the top.  There isn’t an overnight get rich quick elixir.  You have to get involved, get your hands dirty and your mind fired up, and just do it!          

No way have I touched on all the topics covered and the incredible team of presenters at the Rainmaker Summit.  Topics such as asset protection, building business credit, and more, was also covered.  The long weekend’s value for me was ‘priceless’.  The networking and connections alone were worth the time.  In order to keep your self fresh, on top of trends, aware of new methods of doing business, refreshing that which you already know, and further challenging yourself to grow, invest in yourself.  Attending such an event has the potential to open your creative juices, unwrap your potential, create new partnerships, and help you get un-stuck if that is your situation. 

I invite you to identify a seminar or workshop, such as the Rainmaker Summit, that you feel is worthy of your time and funding and go for it.  It’s time to enrich your self to richness!  Since you weren’t there, I hope that you have gleaned a snap shot of what I consider quality continuing education, an invitation to the ongoing process of achieving personal growth and greatness.  See your ‘vision’.  Support it with your ‘why’.  Build your plan and systems.  Be accountable.  And, passionately take action KNOWING you can do it! YOU CAN!  Now go do it!

2010’s MMM Challenge process brought me very close to becoming one of the MMM Challenge team members.  Though I was in the running until the very end, the mentorship didn’t manifest.  At that time there was one dynamic team that was destined to come together for very specific reasons, apparent or not.  The team chosen was absolutely perfect.  2011 will see that same dynamic in play.  And as they say in Chicago, there’s always next year!  For me, 2011 is the world series!

There is no doubt that the MMM Challenge application process itself is worth its weight in gold.  And I applaud all those who are called to participate in 2011.  Throughout the application period I did meet and connect with a number of really great people, many of whom went on to actively work with Rick Melero and Danny Welsh.  It was also my great pleasure to meet with Danny Welsh a couple of times when he came to Chicago to gather with Midwestern Challenge members.  Following and connecting with Rick, Danny and other MMM Challenge members on social media has been fun and inspiring.  I am grateful for being a part of the Real Deal community that feels more like a family.  Rick, Danny, and the Challenge members are the Real Deal.

With the 2010 Challenge over, I went onto the waiting list for 2011.  Being on the waiting list didn’t mean that I didn’t need to do anything but be a lady in waiting.  Oh, no!  The focus remained the same as before, to continue with my real estate business and internet marketing.  Looking back over the year, it was an exceptionally full one.  At times progress was made, other times there were frustrating situations.  Focus, persistence, and action however remained the mantra.

I had started to blog about short sales on the Real Deal site when a minor surgery interrupted the process for several months.  And with all the everyday shifting patterns in the lending arena that impacted real estate, I felt out of integrity to post further information that might be misleading or incomplete due.  It is clear that the shifts and issues of, and created by, the financial industry continue to play havoc with the real estate industry and the economy.  Hence investor’s portfolio building strategies have had to shift.  The ultimate challenge for many investors has been having access to cash buyers or private funding, and that continues to this day.  Major lenders are flagging that the second quarter of 2011 will see a tremendous number of bank owned (REO) properties coming on the market. There will likely be more short sales as well.  Those with the funding in place will be looking at inventory that won’t stop, definitely a buyers market.  Unfortunately, many communities may be looking at new devasted neighborhoods.

One issue that had seemed like a block in my business was having a proof of funds (POF) letter so that multiple offers could be made.  Finding deals wasn’t the problem.  But while having remedied the POF situation, and having access to transactional funding, the next problem was a shortage of end buyers for the numerous offers I made over the summer. Identifying potential cash buyers and private money lenders continues to be an active part of my business focus. Currently I am developing presentation materials to be used for private passive/equity lenders.

For my short sale business I am involved with Harris University for ongoing education, marketing strategies, and insights into the lender world.  They work closely with Titanium Solutions which is a national company that I do work with as a Realtor.  I have assisted home owners in the home retention-loan modification process, working with all the major lenders.

Through a virtual site I bought a duplex in Indianapolis that was sold to me as being ‘flippable’.  The property will cash flow but it hasn’t proven to be a fast flip despite much local and national advertising.  Since the property is in need of rehab, I am in the process of identifying funding to cover rehab costs.  The flip has turned into a buy and hold for now.  The experience of buying out of State has been quite interesting and has resulted in the development of a team of Realtors, wholesalers, and contractors in Indy.

Over the year I have continued to re-visit my business plan and study different real estate strategies.  There is a group of four of us who meet regularly to support one another and share materials, information and strategies with the intention of joint venturing on deals.  We also attend a couple of the local REIAs for education and networking.

Another person that I communicate with weekly is a California investor, Realtor – Eco-broker and commercial agent also involved in mobile home parks.  This relationship has provided me with insights about mobile home parks; green, sustainable building; and, commercial real estate.  We also share social media and internet information.

Ongoing education and personal development is important to me and so I continue to attend seminars and network with other like-minded people.  Over the year I have attended events focused on real estate, business development and marketing, motivation, internet business:

-         Commercial Real Estate – Realtor class (Mar 2010)

-         Net Income Workshop-Gateway-Ron  LeGrand (Apr 24, 2010-Chicago)

-         Facebook & Twitter Hands On -  Realtor class (Apr 20-2010-Tinley Park)

-         Insider’s Edge Real Estate Conference- Bill Rancic & Dean Graziosi’s (May 29, 2010-Oak Brook)

-         Insider’s Edge Real Estate Workshop- Bill Rancic & Dean Graziosi’s (Jun-2010)

-         Internet business seminar  (Jun-2010)

-         Celebration of Real Estate Investor Knowledge (3-day Aug 2010- Chicago) WCRT REIA

-         The Ultimate Entrepreneur Success Seminar- Glazer-Kennedy (Aug 14, 2010 Rolling Meadows)

-         Get Motivated Business Seminar (Sep 2010-United Center – Chicago)

-         Financial Success 2010- James Smith (Dec 3-5, 2010 Rosemont, Chicago)

-         Chicago Recession Buster Small Business Conference- Glazer-Kennedy (Jan 21-22,2011-Shamburg)

I am also scheduled to attend:

-         Powerteam International Rainmaker Summit Weekend-Bill Walsh (Mar 4-6 Shamburg)

-         Powerteam International Ambassador’s Training-Bill Walsh ( Mar 6-7 Shamburg)

-         Success Blueprint – Raymond Aaron (Mar 27-28 Chicago)

-         Millionaire Mindset – T Harv Eker (Apr 1-3 Chicago)

-         Residual Mastery – Bill Walsh (Sep)

Numerous webinars I listened to include:

-         How To Use Teleseminars to Sell Tons of Books/Products and Make Hefty Profits – Alex Mandossian

-         Social Media Marketing - Ross Hair – 2– 3hr events

-         Commercial Real Estate - Rick Melero

-         Marketing Q&As - Danny Welsh

-         Kindle e-books

I will always continue to learn, hone skill sets, stay motivated, meet wonderful new people, and move forward.  Life is meant to be lived. 

At this time I am participating in a 90-day internet challenge and starting to set up Wordpress for blogging.  Studying anything that has to do with social networking is a passion.  Social media is necessary for anyone who plans to do any kind of business in the future, not to mention its application to passive residual online opportunities.  In preparation for my continually evolving business I have set up two Face Book fan pages. They will be in place when I am ready to flesh them out and do an official launch.  Building my personal branding is in process.  I also continue to build my social media contacts, especially real estate investors and other related professionals.  I’ve built a network on the Real Deal Community site and other real estate investor sites.  I also host the Illinois group site on Real Deal; it is my hope to mobilize this site so that it truly meets the need of those who are members.

In September I had the opportunity to complete a public speaking seminar with Les Brown, international motivational speaker, and will do further work with him in the future.  Speaking, writing and teaching/coaching is one area that I am re-visiting.  This will serve my real estate interests, and a range of other areas of my personal and professional expertise.

Mentoring with a quality mentor is essential.  All successful individuals have had a mentor and a master mind group.  Currently I am working with Raymond Aaron for personal and business development. And, I meet every three weeks with an accountability group.  As far as real estate goes I have had a mentor in the past, but the work I did under his guidance was expensive but not what I would call a quality experience.  However, having mentors like Rick Melero and Danny Welsh who are exceptional, really care about your progress, and bring you into their team is the kind of mentorship that is a value proposition.  Interning, learning by doing, is the best.  The internship-mentorship is an ideal learning venue and serves everyone involved.  As you give, so you receive.  The MMM Challenge also offers the opportunity to connect with like-minded individuals across the country, providing the potential for life-long relationships and possible business transactions/partnerships. It is this level of coaching that I feel will help take my business to the next level.  I know that being a MMM Challenge team member will help me pull together all the pieces I have in place and solidify them.  I welcome this possibility!

This past year has been filled with change and challenges.  As one views the national and  world news it is evident that the “times are a changing”.  But whatever happens, I know that 2011 is filled with the greatest opportunity in history.  So I continue to:

-         be aware of the changes to the best of my ability and adapt as need be;

-         strive for excellence;

-         work from integrity, honesty, ethics and a spiritual base;

-         plan, implement, maintain and evaluate;

-         create and problem solve;

-         enhance my skills and knowledge;

-         build great relationships;

-         and, provide service with added value.

Right now I am pumped!  Just reviewing my past year affirms that I haven’t been a lady in waiting.  Being a candidate for the MMM Challenge mentor-internship program again is exhilarating.  I am ready for the challenge!  I can feel the passion!   It’s time to play ball!  It's time for a new team to suit up. There is a world series at stake here.  After all, 2011 is “next” year.

NOTE:  The following overview is not definitive and, generally, reviews the State of Illinois pre-foreclosure process.  The writer is not a lawyer or professionally versed as an interpreter of the law, nor an accountant.  The “bank/lender” may also denote the “mortgage servicer” who is handling the account for the party/investor which actually holds the mortgage papers.

Anyone working with short sales must become well versed in the many aspects of the business.  A starting point is the pre-foreclosure time line.  Whether you are pursuing short sales or just are interested in better understanding the process, the following information is presented to acquaint you with the generalities of the pre-foreclosure time line.  This presentation is based upon the time line as exists in Illinois, a judicial state, which has one of the longer pre-foreclosure time frames.  It is essential to understand the pre-foreclosure process time line of the state in which you are dealing as it varies by state.  With the volume of pre-foreclosures being handled in today’s market, the time line is often considerably stretched in terms of moving from start to finish.  The following information should serve to exemplify the pre-foreclosure time line.

When visiting any pre-foreclosure homeowners it is necessary to frame the foreclosure process and time line for them so that they can identify where they are in the foreclosure process.  All too often homeowners have quickly vacated their home because they feared being put out on the street with all their belongings.  The owners didn’t realize that there were options to consider and some time to deal with the situation at hand, be that staying in the home or moving on. 

The official foreclosure action typically isn’t filed until after a homeowner has missed two to three payments (30-90 days).  When payments have been missed the homeowner  initially receives late payment notices which are then followed by calls from the collections division.  The lawsuit begins when it is filed at the courthouse but doesn’t commence until the homeowner is served with the “complaint” and other papers.  The homeowner is served the papers by a process server, a sheriff’s deputy, or, sometimes via certified mail.  Someone usually comes to the homeowner’s door and delivers the papers which have a date stamped on them.  That date is “key” as it represents the beginning of the pre-foreclosure time line for the homeowner.  When the lawsuit papers are served the homeowner receives the “complaint” (for lack of payment) and a copy of the promissory note and the mortgage, both signed by the homeowner/borrower.

The bank/lender likes to move quickly giving the homeowner 20-28 days to “answer the complaint”.   The homeowner is requested to appear before a judge on a designated date. It is in the best interest for a homeowner to answer the complaint, if not in person then in writing.  When appearing before the judge the homeowner will be asked to bring the loan current, including late and attorney fees.  Attorney fees begin to accumulate once the foreclosure is filed.  When the homeowners are unable to make the payment demanded the judge relays to them that a “default judgment” will be entered in approximately 60 days. 

In Illinois the court also provides the homeowner with basic information about the foreclosure process, offers home retention counseling, and lists options available.  Many homeowners I’ve talked with were still not sure they understood the information given to them at the court house; I’d conjecture that they really didn’t understand it, were in denial, or were so overwhelmed that it didn’t sink in.  Other homeowners I’ve dealt with didn’t bother to make an appearance in court to answer the complaint because they didn’t understand the papers served, knew they didn’t have the money, and/or were paralyzed with fear and chose to just do nothing.  Some homeowners use a lawyer that makes sure that the complaint is answered appropriately.  If a written answer to the foreclosure lawsuit is utilized it is filed with the court; copies are also sent to the attorney processing the lawsuit for the bank/lender.

The “default judgment” will be set by the bank/lender’s attorney and the homeowner is notified of the sale date by mail.  The sale date is also published in a local newspaper.  Some lenders have stayed relatively close to the “90 days following the serving of the summons” for suit. But, as previously noted, there has been so much going on with banks/lenders these days that this “90 day” window has been on hold for much longer in many cases.  Even a date to process the default judgment can get pushed back on the court docket for a few weeks or a couple of months.  It is always important to know where you are in the time line of the pre-foreclosure process, for your sake and the homeowners.  The bank/lender attorney and the loss mitigation department can update the status of the property as needed with either the homeowner or authorized third party.   

Once the sale date has been set the homeowner knows how long they are able to stay in the house if they haven’t already moved out.  If you are the one processing a short sale, you know how much time is left to complete a sale.  There is always the possibility that a sheriff’s sale can be interrupted.  If you are working with the bank/lender’s loss mitigation department on an offer that is already assigned to a negotiator there is a chance they will delay the sale.  However, sometimes, even with a great offer that has been on the table for months waiting for a close date, the lender will allow a property to go to sale.  At other times an offer comes in just before the sale date and the sale is delayed even when there isn’t an assigned loss mitigation negotiator.  There are other methods that can also stop a sale which will not be covered in this discourse. The sale date is typically about 1-2 months after the default judgment has been entered. 

At the sheriff’s sale/auction bids are taken on the property.  The bank/lender will have set a minimal bid knowing what they want to net.  If there isn’t a buyer willing to bid what the bank/lender wants they take the property back, resuming control of the property.  It is at this time it becomes a bank owned property, REO (real estate owned).  The actual “confirmation of sale” doesn’t take place for a couple of weeks; this is the actual consummation and transfer of ownership.  When sold, the homeowner is given 30 days before an eviction takes place.  When the bank/lender takes the property back they let the homeowner, or tenant, know when they need to be out of the house by mail (one month, sometimes two).  If the homeowner has already moved on, the property may be immediately assigned to a Realtor who will secure the house for the lender (often before the confirmation of sale).  It usually takes about two months before an REO will come back on the market as an MLS listing.

The redemption period expires approximately 7 days prior to the judicial sale.  The redemption period is seven (7) months from the date of service or three months (3) after the judgment is entered (whichever is later).  During this time the homeowner can bring the loan current and stop the foreclosure process.  Note that many states have redemption periods that extend past the sale date of the property. 

Illinois does have a longer process than most states, approximately 12 months long.  I’ve suggested to homeowners in pre-foreclosure that this longer period of time is both a blessing and a boon as it provides a longer time to deal with the property yet keeps them (the homeowner) in limbo and under stress longer.  The pre-foreclosure process is complicated at times and it depends on which bank/lender is involved as to how quickly the time line flows.

It is imperative that you know the foreclosure process and time line for the state in which you are planning to work short sales.  In the many states that have shorter time lines it necessary to work quickly and apply different strategies to get the short sale completed within the given time frame. Once the pre-foreclosure time line is understood, you should also be clear about the options available to homeowners; these options will be covered subsequently.

Starting a short sale business had only fleetingly crossed my mind until I met a man who would become my broker.  I’d heard a number of speakers address the topic of short sales and was actually signed up for a three day workshop on the topic when a great opportunity presented itself.  I was attending an investor half-day workshop covering strategies on single-family homes.  During the experience-sharing introductory session I noted my pre-foreclosure work in San DiegoChicago suburbs.   The following day I received a call from Steve, the man who had sat next to me at the workshop, asking if I would like to join him in the short sale business. Steve had six plus years of experience in this area.  (NOTE:  showing up, education and networking = opportunity)  This was an exciting possibility! 

Steve had become a Realtor to work with short sales, and then became a broker to make it easier to specialize in this area.  He started by assisting a family member with a short sale.  When people at his church found out Steve could facilitate a short sale, he soon had a couple of other homeowners with distressed properties to assist.  Word of mouth was the initial and unintentional medium at play in the growth of his business, later followed by a direct mail strategy.  Experience had been Steve’s best teacher and eventually lead to his being able to replace his “job” and devote full time energy to the short sale business.   He went on to establish a team of short sale professionals to efficiently process short sales with lenders, including an attorney and a title company.  When Steve and I met he was interested in expanding his brokerage coverage and liked that I was already pursuing homeowners in pre-foreclosure.  He offered to mentor me; I’d just need to become a Realtor.  My short sale adventure was launched. 

The mentorship started immediately, even as I signed up for Realtor classes and other workshops on the short sale strategy.  I went on client calls with Steve to observe, become familiar with the presentation, and the paperwork that was necessary.  I do believe and profess that learning by doing is very powerful, oft the best teacher.  Having the theory and knowledge is important but it must be applied until it is “owned”.  The short sale business has many facets and each must be understood and successfully implemented; there is a lot to learn.  So let’s get started!  Let’s explore the world of pre-foreclosures and short sales over a period of weeks.

Before looking at the current market and all the inherent facets of short sales, let me first present some of the general terminology used in short sales and the pre-foreclosure process.  As we continue, more terminology will surface.

Short Sale

A short sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and the lender accepts a discounted payoff to fully satisfy the loan. The lender virtually pays all the sales costs, including commissions, escrow and title fees and sometimes repair cost.  The home gets sold; the loan(s) are paid off to avoid foreclosure, auction or bankruptcy.

REO (www.foreclosureuniversity.com)

The term REO (real estate owned) is used to refer to a piece of real estate (property) owned by a bank.  An REO is different from a foreclosure property in the sense that the bank has already tried to sell it at a foreclosure auction and has not been successful in getting bids, and following this, the bank then became the owner of the property because the property was not bid on. As expected, the bank is not interested in keeping the REO for any longer than it has to, therefore making it a good opportunity for an investor. However, it must be remembered that every REO need not necessarily be a good deal, but in general, it has been seen that when it comes to an REO there usually is a lot of money waiting to be made.

Short sales become an option for a homeowner, primarily, due the foreclosure process.  So someone dealing with short sales must also understand the foreclosure laws of the State in which they do business.  There are two types of foreclosures, the non-judicial and the judicial foreclosure.  It is important to know which process your State follows.  A link that allows you to see each State’s foreclosure laws is www.foreclosurelaw.org, United Stateswww.all-foreclosure.com, Judicial and Non Judicial: foreclosure laws. The following definitions are referenced from

Types of Foreclosures 

Non-judicial

Non-judicial foreclosures are processed without court intervention, with the requirements of the foreclosure established by state statutes. When a loan default occurs, the homeowner will be mailed a default letter, and in many states, a Notice of Default will be recorded at approximately the same time. If the homeowner does not cure the default, a Notice of Sale will be mailed to the homeowner, posted in public places, recorded at the county recorder’s office, and published in area legal publication.  After the legally required time period has expired, a public auction will be held, with the highest bidder becoming the owner of the property, subject to their receipt and recordation of the deed.  Auctions of non-judicial foreclosures will generally require cash, or cash equivalent either at the sale, or very shortly thereafter.

It is important to note that each non-judicial foreclosure state has different procedures.  Some do not require a Notice of Default, but start with a Notice of Sale.  Others require only the publication of the Notice of Sale to announce the sale, with no direct owner notification required.

Judicial

Judicial foreclosures are processed through the courts, beginning with the lender filing a complaint and recording a notice of lis pendens (suit pending). The complaint will state what the debt is, and why the default should allow the lender to foreclose and take the property given as security.  The homeowner will be served notice of the complaint, either by mailing, direct service, or publication of the notice, and will have the opportunity to be heard before the court.  If the court finds the debt valid, and in default, it will issue a judgment for the total amount owed, including the costs of the foreclosure process.  After the judgment has been entered, a writ will be issued by the court authorizing a sheriff’s sale.  The sheriff’s sale is an auction, open to anyone, and is held in a public place, which can range from in front of the courthouse steps, to in front of the property being auctioned.  Sheriff’s sales will require either cash to be paid at the time of sale, or a substantial deposit, with the balance paid from later that same day up to 30 days after the sale.  Check your local procedures carefully.  At the end of the auction, the highest bidder will be the owner of the property, subject to the court’s confirmation of the sale.  After the court has confirmed the sale, a sheriff’s deed will be prepared and delivered to the highest bidder, when that deed is recorded, the highest bidder is the owner of the property. 

Each State does have specific laws.  Some work with both judicial and non-judicial foreclosures, others allow one or the other type.  The length of the foreclosure process also varies by State.  For instance, the consent foreclosure also applies to my home State of Illinois which also has one of the longest time lines from the time of default to the actual sheriff’s sale. 

Consent Foreclosure

A consent foreclosure will vest all then borrower’s right and title in the lender free and clear of all claims(except liens of the U.S. Government) including rights of reinstatement and redemption of any junior lien holder who was properly joined and who failed to object.  Upon objection, the court may hear such evidence as required and enter an order that title vests subject to the lien, or if the junior lien holder pays the balance on the mortgage plus any additional interest, within 20 days of the entry of a court order commanding the same, then the junior lien holder can redeem the property.  The final judgment in a consent foreclosure must recite the lender’s waiver of right to any personal judgment for a deficiency and will bar a deficiency against not only the borrower, but any co-borrower or other person who is liable for the mortgage.            

If you are hoping to work in short sales, or already do, it is essential that you know what is required by the law of the State in which you are doing transactions.   As most State’s are judicial, or a combination of judicial and non-judicial, I’ll focus on the judicial foreclosure as I continue.  The State of Illinois has a judicial foreclosure law and will serve as the platform for my subsequent presentation of the foreclosure time line which illustrates the working parts therein. 

Definition: lis pendens
(lease pen -denz) (1) Latin for "a suit pending." The term may refer to any pending lawsuit. (2) A written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it. The notice is usually filed in the county land records office. Recording a lis pendens alerts a potential pruchaser or lender that the property's title is in question, which makes the property less attractive to a buyer or lender. After the notice is filed, anyone who nevertheless purchases the land or property described in the notice takes it subject to the ultimate decision of the lawsuit. (http://www.nolo.com/dictionary/lis-pendens-term.html) 
 
Now that you have some intitial information about short sales, join me on this "road to short sales" series.  The short sale startegy is one that will be well worth adding to your arsenal of real estate strategies for years to come.  My next blog will further address the judicial foreclosure process.  Until then... to your success!
 

Have you ever returned to your “home” after being gone for years only to realize that it has changed significantly? Coming back to the Chicago area after being away for ten years was like starting over, replanting my roots. There had been a vast amount of change but the solid Midwestern energy was still in place. The corn fields had turned into housing developments and malls. The driving patterns were the same yet different, more congested. I-Pass had been added but road construction work remained a constant. The shoe boxes of business cards that I still had all belonged to people who “no longer lived there” any more. Trying to connect with those of yore, for the most part, just was not possible; life had moved on.

My time on the West Coast had been wonderful, such a magical part of the country, Oregon, Washington, and California. San Diego County, one of my favorite areas – love the ocean, outside café’s, walks on the beach, the energy of the sun - housed my being for the six months prior to my return to Chicago. For all of the sweetness of being there, this special place also launched my real estate investing pursuits. San Diego area during the peak of the housing era, just before the “bubble” burst, was a shakin’ and movin’ place. Everyone was just sitting back waiting for their equity to grow so they could cash out. With true deals difficult to locate there, at least for a novice, working in the pre-foreclosure market had proven to be a great way to begin my real estate investing adventure. With a bit of “door knocking” and initial education on real estate investing under my belt, I returned to Chicago, a new venue for the continuation of my passion for real estate investing.

Chicagoland had definitely changed. But it took me no time at all to begin to put down roots and get moving with my real estate endeavors. Getting to know the Chicago market was imperative. I surmised that once again pursuing homeowners in pre-foreclosure would give me a good re-orientation to the market and start me on my way of re-building a business network. My San Diego investor friend had given me a Chicago pre-foreclosure business connection. I signed on with the recommended company, went through their training, and spent the next four months driving throughout the western and southern suburbs to talk to homeowners in pre-foreclosure.

"Door knocking" is an interesting experience as you never know what to expect when you talk with homeowners in pre-foreclosure, if you get to speak with them. They could be in shock, denial, anger, or in a few instances, acceptance. Some you can help and others never give you the chance to assist them. It is always a “win” when you can help someone that is in a challenging situation with their home.

It was between Christmas and New Year’s that one client I worked with was able to resolve his situation and stay in his house. This was an exciting Christmas miracle and resulted in my first pay check for a real estate transaction. Despite how great the “door knocking” learning experience, the “pay day” was far from being a good return on investment given the time and miles I had put in. Although always willing to pay my dues, it seemed like something more was needed.

Then, as the New Year began, I was contacted by a branch of Robert Allen, Prosper Now, and offered a “mentor” opportunity. Was this the “something more”? Certainly having a mentor would be a key to helping me successfully kick-start my real estate efforts in the Chicago market. This venture called for a major investment of resources, time and money. The mentoring would be done by phone on a weekly basis for seven months. A new set of manuals and tapes arrived and became the basis for this new set of skills I was to learn and implement. Yes, this mentor had to be the answer! After all, the books all conclude that a mentor is essential to success. 

Excitedly I began the mentorship process. The mentor and I decided that I should become a scout for the pre-foreclosure investors for which I was working. That way, I would already have leveraged OPM (other people’s money), and would be on my way to building a cache of money that I could use for my personal investments. The investor group agreed that they would give me a percentage of any deal that I could find for 30% or more below market value. They had their own Realtor and construction crews with multiple projects always in the works. This seemed to be a very promising way to go.

The next seven months were very busy. My mentor walked me through the process of finding a deal for this group of active investors. I began to build a team, starting with a Realtor. Finding an investor friendly Realtor was no easy task. Reviewing local papers/yellow pages for Realtors lead to making numerous calls, all which resulted in less than responsive contacts. One REIA owner recommended someone to me, yet that didn’t work out. My mentor then directed me to Home Gain which at least netted me my first Realtor. Over the mentoring period I went through five Realtors, each hoping that I was going to bring them consistent sales - IMMEDIATELY. That was the goal but with the housing market still peaking it just didn’t quite work out that way. How to find and work with Realtors was an unexpected aspect of my mentoring.

“FIND, FUND, and FARM it” became the major thrust of my mentoring experience. The FIND was to locate the properties that were below market value, at least 30%. Finding deals meant implementing multiple strategies, one of which was working with a Realtor to find motivated sellers, REOs (Real Estate Owned – by banks), estate sales, re-location, etc. Searching newspaper ads (today would add online sites such as Craig’s list) for “don’t wanters”; for sale by owners (FSBO) was another. Talking with other investors and being on their buyers list could provide wholesale deals and other opportunities for joint ventures. It seemed that most of my time was spent in the “find” mode. The funding was to be covered by the investors for which I was property scouting. Farming included developing an awareness of a specific targeted market area and getting to know it, advertising in it for the long haul. This was another way to eventually establish credibility and develop seller leads, as well as to identify buyers and renters for the exit strategies that would be employed for any deal.

Developing a network of other investors was also important. This meant joining REIA’s (real estate investor associations), a must for anyone going into real estate investing. Finding the REIAs online was easy enough. The larger groups I attended seemed to be somewhat closed off to “newbies”, at least that was my observation. With a sales and business development background it wasn’t that I was shy about talking with people. Once I made a contact and followed up, it seemed that many investors didn’t understand the value of building relationships. Many individuals I met were just getting started and didn’t know what they needed to do to build their business. Others were old timers to investing and, for the most part, didn’t seem to see the value of spending time with those new to investing. The smaller REIA groups actually felt more welcoming to all who came, both seasoned and newbie investors. No matter the energy of any given REIA, each meeting offered worthwhile educational content and some valuable connections. Building your network is truly is a process of continuing to “show up”!  Those who persist will beat out the “revolving door” of tire kickers, those who come and then quickly fade out of the picture never to be heard from again.

Taking action is essential to the learning process, helps to keep you in the business. Over the summer that I worked with my mentor, taking action was at the forefront. I looked at about 100 homes, assessed repair needs and made offers on 68 homes, mostly REO, estate sales, handyman specials, etc. I hung out at Home Depot and Sears, and learned a bit from each Realtor that showed me properties. Writing an offer wasn’t intimidating any more. My mentor had connected me to an investor friendly lender who had provided me with my pre-qualification letter so that my offers had a better chance of being accepted. And, I continued to identify resources, team members and a buyers list.

As I’d present the potential analyzed deals to my buyers ( pre-foreclosure investors) nothing seemed to work out for them; the deals were always just short of the mark. One deal did work but it was a never lived in high-end new construction. The builder had been left holding three houses that he couldn’t move. After three bids (three different Realtors took me to the house) the offer was accepted. However, it was October and the investors didn’t want to buy and have holding costs over the winter. My buyers list was short and no one else wanted a high-end house over the winter either; I let the deal go.

My mentor had a hard time believing that none of the deals that I presented to the pre-foreclosure investors would work for them. It is possible that they did work, and I was left out of the loop. So take note, in hind sight, one thing I did learn is that I needed to get my business agreements in writing – a lesson learned by “doing”.

By the end of my mentorship my nest egg for investing had not grown, however the learning curve had been steep. The market was starting to shift and all the sub-prime loans were beginning to default. The bubble, as predicted, had finally started to burst; the approach to real estate investing was going to shift. Investors that I had met were at a stand still and had stopped most of their activity taking a wait and see attitude. At least I was very aware of the real estate market environment, especially Chicago which was starting to really feel like home again.

But why was it taking so long to get to my “first deal”? Even with a mentor my financial situation hadn’t changed, except for the hole in my personal bankroll due to my mentoring investment. Although I hadn't accomplished as much as I had hoped to with the mentor it was a good experience. At least I had personally experienced change that thrust me into the world of real estate investing with guided experience and insights. The mentor, the hands on experience, and the ongoing study all had helped my “roots” more firmly entrench and start to take hold. Ah, it was going to take a longer gestation time, more fertilizer, light and water to grow.

As fall and mentoring came to an end, I took a deep breath and settled in for “a long winter’s nap” resolving to make my real estate investing grow and bloom. There was nothing to do but stay the course and let the seeds germinate and reach for the sun. After all, who said it was easy growing strong roots and pushing up through the dirt. There is always a growing period, and it takes as long as it takes.

You hear it from new real estate investor’s, or want-to-be’s all the time. They say that they started with the “... ” (complete the sentence) system that they picked up on late night TV or e-Bay, or this or that book that they read or seminar they attended. And all would say that being in the world of real estate investing is an interesting experience to say the least, quite a journey. For many, the journey may end early, some are always in pursuit, while yet others take action and thrive through the ups and downs they experience. Commitment and persistence, along with a strong “why”, are keys to achieving the later. But nothing starts until the first step is taken. Everyone has to start somewhere.

We all have a story to tell, one that is a similar but takes on different dimensions given the investor being considered. As for me, my journey in real estate investing actually started in San Diego County just before the “housing bubble” burst a few years back. I was there to undertake a six-month marketing consulting project for a financial broker. My previous three years had been spent in a “spiritual bubble” as an unsalaried volunteer   at a spiritual retreat center where I focused on meditation, service, and managing marketing, sales and international distribution for their spiritual publishing company. The consulting stint in San Diego would assist to serve as a transition back into a more “worldly” lifestyle. Heading back to the Midwest and determining a new life direction were next on my agenda. Re-inventing my self would not include corporate America but would utilize all my previous life skills. The ocean and sun vibes of San Diego were to provide me with some soothing and energizing time to contemplate the future and what I wanted it to look like. Real estate investing had not consciously crossed my mind at that time, but it soon came in like a giant rolling wave.

Over the years I’ve learned to be open and to listen to intuitive nudges; they usually point me in the right direction. So as a “nudge” would have it, a newspaper ad caught my eye. The ad touted an “Enlightened Millionaire - Multiple Streams of Income” seminar being hosted by Robert Allen and Mark Victor Hansen. Mark Victor Hansen had been an acquaintance in college. I was impressed then with his entrepreneurial spirit and thought that it would be interesting to see where he had landed. Off I went to the presentation only to return home with great impressions of both Mark Victor Hansen and Robert Allen, an investment of $5000 for my education in real estate investing, and the anticipation of receiving my 40- lb. box of manuals and tapes, convinced that I could land that “no money down” deal.

At least the “no money down” idea was not new to me. As I said, real estate investing was not a conscious idea, but it was an idea that had been incubating for years and whose time had now come. In the 80s a Realtor friend, Verne, introduced me to the concept of investing in real estate. I was also aware of a woman in that same community who was buying lots of properties to hold and rent. I recall thinking that if she could do it, so could I. Verne showed me a two-flat near the college where I was a professor. We were pursuing the deal; I was considering living in one unit and renting the other. Why not? I could walk to work and the rental would practically cover the mortgage and other costs. The location was superb and the building was in good condition. However, my career had other ideas and suddenly moved me into national health care consulting. The job shift resulted in a re-location and sent me flying all over the country. Life took over, as it does, and the real estate deal went out of the picture.  Now, years later, real estate investing was finding me again.

When it was least expected, it was the Enlightened Millionaire seminar that served to re-awaken my desire to enter the world of real estate investing, of giving my life a new direction. I would be an “enlightened millionaire” and be sure to pay it forward. After making the $5000 financial investment, taking a giant gulp and experiencing a great case of butterflies and stomach churning, I excitedly and expectantly awaited the arrival of the Enlightened Millionaire “40-lb. box”. Once it landed on the doorstep I spent time every day listening to the educational calls offered, reading manuals, listening to tapes, pouring over the newspaper ads, calling those who seemed to fit the motivated seller, investor, private money lender criteria. There was certainly a lot of new learning taking place while I was also overcoming fears of calling people about selling their homes when I felt that I didn’t really know what I was doing. But call I did. There is a great advantage in learning by doing.  And in the process of doing, step by step, the pieces of the puzzle eventually start to come together to make sense. Just know that it is a big puzzle and I don’t know if it ever really gets totally put together as there is always something more.

A friend from Carlsbad, whom had been a Realtor and previously worked with a large financial institution in the REO (Real Estate Owned) division, was also canoodling with me on how we might pursue this real estate venture together. We were comparing notes, finding and looking at properties, and talking about how to build our team so that we could pursue our real estate investing dreams.

Soon after the “40-lb. box” arrived, my friend, her husband and I were alive with the prospect of making headway in real estate investing. They had become part of my dream team. Another Enlightened Wealth seminar, this time a 4-day one, was being held in my home territory of Chicago. Plans were made and we were off to see the Wizards of our dreams, Robert Allen and Mark Victor Hansen. This event served to arm us with more possibilities and entrenched our resolve to” make it happen”.  After all, we were all committed to making the investment in the seminar and our dreams work for us. The book, The One Minute Millionaire by Mark Victor Hansen and Robert Allen, also became part of the motivation that spurred us on, along with Robert Allen’s books Nothing Down and Multiple Streams of Income.

Following our exciting Chicago conference, back on the West Coast, we committed to further building our team. A Realtor was definitely going to be needed. We quickly found   that we would work with many since those we encountered didn’t really understand an investor’s needs. We learned that “closes” on the West Coast were handled by title companies while on the East Coast, attorneys closed. In the Midwest, attorneys should be involved but were optional. We identified a title company with which to work and continued to build a list of resources for inspectors, appraisers, investors, private and hard money lenders, vendors, and tradesmen.

In the next several months the best deal that we came across involved a nasty divorce situation. The deep discount was all of 10% for a very nice house, needing cosmetic updates, with a concrete back yard that sported a swimming pool. Remember the” bubble” hadn’t burst yet! This no way “deal” seemed to be about the best we could identify at the time. FSBOs (for sale by owner) weren’t as motivated as their ads would lead one to believe. The Californians weren’t in any hurry to sell or participate in seller financing as they were surfing the “bubble” wave and waiting for “top dollar”. No wonder that those on the Robert Allen educational calls were headed for the then boom areas of Florida, Vegas, Phoenix, and New York City (Hmmmm... areas currently in trouble).

All the daily attempts to call seemingly motivated sellers from the newspaper ads weren’t leading any where, nor was working with the Realtors. Then one call I made from the newspaper led me to an investor who was doing “door knocking” in an attempt to reach homeowners who were in pre-foreclosure. My friend and I met with him, signed on to do the training, and soon after began our own venture of  pursuing properties of those who were about to lose their homes. This investor was looking for properties that had equity and was in position to either buy the homes or assist the homeowners so they could eventually keep their house, either way he would make a profit and we would receive a fee.

Reaching pre-foreclosure homeowners became a challenging task even though we had been provided with a list of those to contact. Finding people at home or getting them to open their doors was a process. Those we did reach all had their stories to tell, and we heard such a wide range of sad and conflicted stories. Gated communities locked us out and properties had issues with junior liens: HELOC’s, association dues, and lots of wrap-a-round mortgage situations. We were learning a lot but still weren’t making the headway for which we had hoped. Still, this experience with “door knocking” truly was the early precursor of my current short sale business.

As my consulting project came to an end, it was time to return to the Chicago area to be closer to family, especially my Mom who was transitioning into retirement. I said goodbye to my friend and her husband, the consulting project, the prospect of making real estate investing happen in San Diego, and returned to “sweet home Chicago”, richer for the totality of the San Diego experience. 

At least the San Diego investor for which I had been doing “door knocking” gave me a Chicago connection for a group that was doing what he was doing in pre-foreclosure work. This opened a door that I would step into and through.  I’d been west of the Mississippi for many years. So coming back to Chicago definitely called for re-engineering my direction, re-establishing and building connections, and pursuing life anew. San Diego had introduced me to real estate investing, whet my appetite for it, and set the expectation that it would definitely be a significant part of my life.

San Diego had served as an important stepping stone on my journey. All investors have these stones laid out before them. The question is will they take the steps required? The stepping stones will appear as needed, or when the student is ready the teacher will appear. Some may not recognize the stepping stones, others won’t be able to risk taking the steps necessary, or get bogged down in one way or the other. Whatever your story, it has to be similar to mine in some way. How did real estate investing find you? As you think about your story ask, were and are you committed to taking the steps necessary to give you the freedom that you are seeking, or to reach the dreams that motivate you? Are you persistent enough to continue on the path despite setbacks, fears, and not knowing it all? Do you have a big enough “why” to keep you keeping on? Yes, the real estate investor journey is an interesting one. But it only starts when you commit and take the first step.  San Diego moved me through my baby steps and the Chicago market has only continued to offer up other venues for learning… the journey continues.  We are all on this journey together!