I love marketing...I love it because it is ever changing and now more than ever the face of marketing is in tremendous flux right now. For the moment, I just want to discuss social marketing. This relatively new aspect of marketing is fascinating and it puts many smaller organizations and individuals on an even playing field with even the biggest players.
As real estate professionals, one of the hardest things to do is to be "found." I don't have official research in front of me at the moment, but I know a lot of folks these days turn to the internet to find a home. This is a great advantage in a social networking environment, because these social networks exist on the internet.
Let's be clear about a couple of things. First of all, you are not going to get rich quick on the internet, I don't care what anyone says...it isn't going to happen, so get the idea out of your head. Social marketing takes time, energy, consistency and a plan. If you aren't willing to invest in all of those basic elements, don't waste your time.
The amount of each of the critical elements is totally up to you as well. You don't have to do it every day, you can do it at just about any pace, but make sure you do pace yourself. If your frequency is once a week, then make it a habit. One of the neat things about social marketing is that the credentials you are building by being on line and networking within your industry or specialty is that the conversations and threads lead to the most amazing places and introductions.
I will also tell you this from experience...If your only goal is to get people to do business with you and all you are doing is advertising...go away, please go away. If you don't have some useful advice or something that helps people other than yourself, don't waste your time. Remind yourself why the internet is so popular and prosperous...Information at your fingertips. I am pretty sure that nobody is going to wake up in the morning and say to themselves, "Hey! I need to google Susie Real Estate Investor and see if she can help me out." More than likely someone will wake up and say "Hey, I really need to find a good deal on a lease option because my credit is toast!" That person will probably look for articles or posts about lease options or alternative home buying solutions. When they see your name attached to a HELPFUL article or conversation...you have branding!
The more you post, the more that threads get out there. It doesn't hurt to promote yourself a little, but keep it to a minimum, we all get it, you are an expert and you would like to earn as much business as possible. We make that assumption because you are networking in the first place.
Next, pick a few social media sites after reviewing them for a couple of weeks and monitoring them. Don't just pick one, and don't pick all of them. Like I said, this is a commitment and nothing will happen if you don't nurture your accounts. Local Real Estate Deals makes use of 6 particular sites.
Blogspot... www.LocalRealEstateDeals.Blogspot.com
www.YouTube.com/LocalRealEstateDeals
www.Twitter.com/LocalREDeals
www.facebook.com/localrealestatedeals#/home.php
http://localrealestatedeals.myplaxo.com/
Linked In
Once you find the ones that are the most applicable, get involved...it doesn't do any good to sit on the sideline and not communicate...this is netwworking after all...Join discussions, ask questions, give answers, join groups, form groups...get the most out of it and make connections. Do it to enhance your knowledge and to be helpful...if you are just looking to sell, sell, sell, you are going to find yourself quite alone.
Social marketing is not the end-all, be-all marketing tool. It is an arrow in your quiver and you still need to have a good product and people skills to make it work. It also needs to be implemented just like any other marketing plan. It should be a part of your business plan, whether you have one or not and should be done methodically. You should also have a way to justify the expense (of your time and energy) to keep it going. If you are not getting results, then why would you keep doing it, right? The key is to engage fully for no less than six months to determine if it is worth moving forward. This goes for any marketing for that matter. Most people fail to give their marketing plan enough time to get off the ground. If you are not going to stay with it for six months, then save yourself the hassle and don't get started in the first place.
That's just a birdseye view of my thought process for the moment. Books could be (and probably are being) written about the subject so I am sure I will have more on this later, so check back every so often for updates. Until then, you are more than welcome to follow us on twitter at www.twitter.com/LocalREDeals
Good Luck and God Bless!
Rob
Wednesday, April 29, 2009
Financial Literacy
It has become clear over the past 18 months, if not over the past 30 years that we are becoming less financially literate as time goes on. I say this not to provoke anyone, it is a fact...a sad fact. The truth is that many people believe they are fully financially literate and there in lies the problem.
There are so many aspects of wealth and financial literacy, it is tough to be competent in all areas, but that shouldn't stop us from pushing ahead and learning more. There are many places that we can get an education with regards to financial literacy, that it is almost overwhelming just trying to find the right place.
We can always go to a broker or a licensed agent, but then we might be wondering what the motivation is to give us information. It is always curious that in most cases the advice that we receive leads us right into a product line that suits our "needs." Don't get me wrong, I know we are all trying to make a living out there, but when the only advice we receive, leads us into a product line of the person delivering the pitch, you have to feel compelled to at least get a second opinion.
Then there are the industries that don't even require the marketers, or sales reps to have any sort of licensing requirements. In this case, I am speaking of loan officers. There are many loan officers that are experts out there...you know who you are. But for every expert, there are a dozen or more that don't truly understand how money works and furthermore, how to build wealth. Part of the problem is that good loan officers know how to get a loan through and that is what people come to them for. The mistake most people make is to start asking for financial advice from someone who knows how to get a loan processed. This is not a good approach.
The psychology behind it is certainly solid. Consider that an individual has to go to a loan officer to get a loan and they end up telling their entire financial story as well as many personal details of their life to the loan officer. These become psychological tethering lines to the relationship. Why wouldn't the person ask for financial advice after building a relationship like that? Also, who wants to give all those details again to someone else who would either charge for the advice or try to sell a different financial product?
When you look at the mortgage industry from that perspective, it is easy to see how some people go down the path of bad advice. To be fair, I don't think any loan officers wake up in the morning and say to themselves "I am going to give some bad financial advice today," unfortunately, that is exactly what ends up happening. The path to hell is paved with good intentions, as they say.
But the problem is much bigger than that. There are many people who never even get to the point of home ownership and never learn or even understand what it means to build equity. This is also one of those sad facts. It is sad for many reasons, but the biggest reason in my mind is that this ignorance is handed down from generation to generation. The mindset of these people is supported, encouraged and imprinted into their psyche until the thought of building wealth is never even considered.
Most people have more insurance on their vehicle than they have on their lives. Let's face it, protection is as much a part of building wealth as making money. If I had to guess, I would have to generalize and say that many people consider insurance an unnecessary expense. On the other hand, the wealthy consider it part of their estate and wealth plan.
All I am saying is that there are principles like protection, taxes, assets and liabilities to name a few that many people, too many people, know little to nothing about. I still have a lifetime of learning and I learn something new everyday and I am in this industry. If we commit to making our financial education a lifelong endeavor it doesn't seem so overwhelming. Find an area that you can use some more information on and begin your education. Don't trust one source either, get your information from different sources and don't be afraid to ask clarifying questions. The right adviser will be patient and understanding. Impatience is a sign of ignorance and you should be wary of anyone who handles your questions with impatience.
In all that you do as a real estate professional or investor, encourage and support financial literacy at every opportunity; it's good for everyone.
Thanks and have a great day
Robert D. Cass
There are so many aspects of wealth and financial literacy, it is tough to be competent in all areas, but that shouldn't stop us from pushing ahead and learning more. There are many places that we can get an education with regards to financial literacy, that it is almost overwhelming just trying to find the right place.
We can always go to a broker or a licensed agent, but then we might be wondering what the motivation is to give us information. It is always curious that in most cases the advice that we receive leads us right into a product line that suits our "needs." Don't get me wrong, I know we are all trying to make a living out there, but when the only advice we receive, leads us into a product line of the person delivering the pitch, you have to feel compelled to at least get a second opinion.
Then there are the industries that don't even require the marketers, or sales reps to have any sort of licensing requirements. In this case, I am speaking of loan officers. There are many loan officers that are experts out there...you know who you are. But for every expert, there are a dozen or more that don't truly understand how money works and furthermore, how to build wealth. Part of the problem is that good loan officers know how to get a loan through and that is what people come to them for. The mistake most people make is to start asking for financial advice from someone who knows how to get a loan processed. This is not a good approach.
The psychology behind it is certainly solid. Consider that an individual has to go to a loan officer to get a loan and they end up telling their entire financial story as well as many personal details of their life to the loan officer. These become psychological tethering lines to the relationship. Why wouldn't the person ask for financial advice after building a relationship like that? Also, who wants to give all those details again to someone else who would either charge for the advice or try to sell a different financial product?
When you look at the mortgage industry from that perspective, it is easy to see how some people go down the path of bad advice. To be fair, I don't think any loan officers wake up in the morning and say to themselves "I am going to give some bad financial advice today," unfortunately, that is exactly what ends up happening. The path to hell is paved with good intentions, as they say.
But the problem is much bigger than that. There are many people who never even get to the point of home ownership and never learn or even understand what it means to build equity. This is also one of those sad facts. It is sad for many reasons, but the biggest reason in my mind is that this ignorance is handed down from generation to generation. The mindset of these people is supported, encouraged and imprinted into their psyche until the thought of building wealth is never even considered.
Most people have more insurance on their vehicle than they have on their lives. Let's face it, protection is as much a part of building wealth as making money. If I had to guess, I would have to generalize and say that many people consider insurance an unnecessary expense. On the other hand, the wealthy consider it part of their estate and wealth plan.
All I am saying is that there are principles like protection, taxes, assets and liabilities to name a few that many people, too many people, know little to nothing about. I still have a lifetime of learning and I learn something new everyday and I am in this industry. If we commit to making our financial education a lifelong endeavor it doesn't seem so overwhelming. Find an area that you can use some more information on and begin your education. Don't trust one source either, get your information from different sources and don't be afraid to ask clarifying questions. The right adviser will be patient and understanding. Impatience is a sign of ignorance and you should be wary of anyone who handles your questions with impatience.
In all that you do as a real estate professional or investor, encourage and support financial literacy at every opportunity; it's good for everyone.
Thanks and have a great day
Robert D. Cass
Tuesday, April 28, 2009
1000% ROI Guarantee? You betcha!
You know, I have never been one to accept the status-quo. In fact, it is in my blood to buck the system, not for the sake of it, but rather to see if we can do things better, faster, stronger...kind of like the 6 Million Dollar Man...I digress.
It has occurred to me, as many things do, that the advertising industry doesn't play by the same rules the rest of the world plays by. We have been conditioned to believe that the number of eyeballs is the most important number when it comes to advertising, but I couldn't disagree more...the most important number is the return I get on my advertising investment because it relates to my bottom line. Why advertisers don't get that is a mystery to me.
I know that when I am prepared to spend money on an advertising campaign it is with the goal of making money, specifically, PROFIT! My metric is, and always has been, a 1000% return on my investment or else I don't advertise with that company again. What that means is that for every dollar I spend, I want to see $10 come back to me. There are those that believe there is no such thing as a 1000% return on their investment and that is fine with me...we have a tendency to create our own reality and if you don't believe it is possible, then it probably isn't.
It has been done on a regular basis for decades for those who understand marketing. I read a book a few years ago by Mark Stevens titled, Your Marketing Sucks. The main thing that I got out of that book is that if you can't track your revenues back to marketing or vice versa, then your marketing sucks.
I have embraced that concept and have challenged advertisers and advertising companies for years with that one simple concept and I am appalled at the apparent lack of concern for my bottom line. It is as if it is their right to take our hard earned money and spend it in a way that is completely unaccountable! It is insanity!
So, here I am in the position of having a media suite of real estate investor products called Local Real Estate Deals. I can take the stance of my predecessors and competitors and put the burden on my advertisers, OR I can work with them as an extension of their Marketing and P.R. departments to increase their bottom line. It isn't as profitable in the beginning, but it just seems like the right thing to do.
We have decided to take a very proactive stance on advertising in our media group and offer a 1000% Return on your Advertising Dollar! How's that for confidence in our own product? We will keep your advertisements "live" until we can quantify a 1000% guarantee...PERIOD! In order to do that, we need to understand your business in a way that most advertising sales reps never will. We need to understand the metrics of your business in a way that will allow us to create a trackable system and measure your ROI. It's amazing sometimes to learn that as we go through this with our clients, they are amazed at how much money they have wasted by NOT tracking their advertising options. In this way, we feel like consultants, and technically we are. But going through this exercise puts everybody on the same page. It's what I have done ever since I started buying advertising and now that I have created an advertising product suite, it is time for me to show our advertisers how to quantify their advertising so that their marketing doesn't suck.
So there it is...The first official 1000% ROI Guarantee! I know we won't be making friends with our competitors, but that isn't my goal...Maybe you should ask them if they will guarantee a 1000% ROI...the answers will be interesting.
Give us a call to see how we can work together
Robert D. Cass
Publisher, Local Real Estate Deals Media Group
757-729-3124
It has occurred to me, as many things do, that the advertising industry doesn't play by the same rules the rest of the world plays by. We have been conditioned to believe that the number of eyeballs is the most important number when it comes to advertising, but I couldn't disagree more...the most important number is the return I get on my advertising investment because it relates to my bottom line. Why advertisers don't get that is a mystery to me.
I know that when I am prepared to spend money on an advertising campaign it is with the goal of making money, specifically, PROFIT! My metric is, and always has been, a 1000% return on my investment or else I don't advertise with that company again. What that means is that for every dollar I spend, I want to see $10 come back to me. There are those that believe there is no such thing as a 1000% return on their investment and that is fine with me...we have a tendency to create our own reality and if you don't believe it is possible, then it probably isn't.
It has been done on a regular basis for decades for those who understand marketing. I read a book a few years ago by Mark Stevens titled, Your Marketing Sucks. The main thing that I got out of that book is that if you can't track your revenues back to marketing or vice versa, then your marketing sucks.
I have embraced that concept and have challenged advertisers and advertising companies for years with that one simple concept and I am appalled at the apparent lack of concern for my bottom line. It is as if it is their right to take our hard earned money and spend it in a way that is completely unaccountable! It is insanity!
So, here I am in the position of having a media suite of real estate investor products called Local Real Estate Deals. I can take the stance of my predecessors and competitors and put the burden on my advertisers, OR I can work with them as an extension of their Marketing and P.R. departments to increase their bottom line. It isn't as profitable in the beginning, but it just seems like the right thing to do.
We have decided to take a very proactive stance on advertising in our media group and offer a 1000% Return on your Advertising Dollar! How's that for confidence in our own product? We will keep your advertisements "live" until we can quantify a 1000% guarantee...PERIOD! In order to do that, we need to understand your business in a way that most advertising sales reps never will. We need to understand the metrics of your business in a way that will allow us to create a trackable system and measure your ROI. It's amazing sometimes to learn that as we go through this with our clients, they are amazed at how much money they have wasted by NOT tracking their advertising options. In this way, we feel like consultants, and technically we are. But going through this exercise puts everybody on the same page. It's what I have done ever since I started buying advertising and now that I have created an advertising product suite, it is time for me to show our advertisers how to quantify their advertising so that their marketing doesn't suck.
So there it is...The first official 1000% ROI Guarantee! I know we won't be making friends with our competitors, but that isn't my goal...Maybe you should ask them if they will guarantee a 1000% ROI...the answers will be interesting.
Give us a call to see how we can work together
Robert D. Cass
Publisher, Local Real Estate Deals Media Group
757-729-3124
Monday, April 27, 2009
Social Capitalism (Real Estate Investor Style)
It occurred to me that some of the best and most successful capitalists have had a "social capitalism" frame of reference. Consider that Henry Ford found a way to increase transportation and thus helped the economy as well as himself and countless other industries. All of this because he solved a social problem; hence he was a "social capitalist."
I believe in capitalism, it is not a perfect idea, but it is an ever evolving idea and I like the way that it is trending right now. The trend is to consciously engage in social capitalism, that is to say that to engage in capitalism in a way that solves social problems. Consciously is one of the key words here. Sometimes products or services pop up that were solely created to drive revenues and that is not necessarily bad, but let's just get into the mindset that we can solve massive issues and capitalize from them individually and socially.
If you are reading this blog, then you are probably involved in real estate in some form or fashion. There is a social condition that I think warrants a product or service and that is the social disease....yes, I said it DISEASE! of perpetual renters. Now, I am not saying it is bad to rent, there is certainly a time and a place for it, but when it becomes a permanent solution, then it becomes a disease because those involved are not putting themselves in a better financial situation.
As part of the responsible real estate community, I think that we can all capitalize on the fact that there are 54 million renters out there and the "problem" isn't going to go away anytime soon. But we can tailor our efforts to minimize the negative effects of this "rental disease" by putting good deals together and offering home ownership at some point maybe in the way of a Lease Option, Seller Financing, or Land Contracts.
I am not kidding myself. I know that simply offering lease options is not going to change the mindset of millions of people, however, if we pool our resources and make a serious and sustained attempt, we can all contribute to the collective education of renters, because in my opinion, it is a lack of education and discipline that people fall into a rental abyss.
Let's face it, we are in an industry where we have the ability to help people. This is something that we should all be proud of because we have the opportunity to make a great income while helping others and THAT is what Social Capitalism is all about!
Now go get 'em!
Rob
I believe in capitalism, it is not a perfect idea, but it is an ever evolving idea and I like the way that it is trending right now. The trend is to consciously engage in social capitalism, that is to say that to engage in capitalism in a way that solves social problems. Consciously is one of the key words here. Sometimes products or services pop up that were solely created to drive revenues and that is not necessarily bad, but let's just get into the mindset that we can solve massive issues and capitalize from them individually and socially.
If you are reading this blog, then you are probably involved in real estate in some form or fashion. There is a social condition that I think warrants a product or service and that is the social disease....yes, I said it DISEASE! of perpetual renters. Now, I am not saying it is bad to rent, there is certainly a time and a place for it, but when it becomes a permanent solution, then it becomes a disease because those involved are not putting themselves in a better financial situation.
As part of the responsible real estate community, I think that we can all capitalize on the fact that there are 54 million renters out there and the "problem" isn't going to go away anytime soon. But we can tailor our efforts to minimize the negative effects of this "rental disease" by putting good deals together and offering home ownership at some point maybe in the way of a Lease Option, Seller Financing, or Land Contracts.
I am not kidding myself. I know that simply offering lease options is not going to change the mindset of millions of people, however, if we pool our resources and make a serious and sustained attempt, we can all contribute to the collective education of renters, because in my opinion, it is a lack of education and discipline that people fall into a rental abyss.
Let's face it, we are in an industry where we have the ability to help people. This is something that we should all be proud of because we have the opportunity to make a great income while helping others and THAT is what Social Capitalism is all about!
Now go get 'em!
Rob
Sunday, April 26, 2009
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New Edition of Magazine
If you look to the right, you will see a copy of our new magazine that features Miss Kendra Todd who gained fame as the first female winner of Donald Trump's Reality TV Series, The Apprentice. Miss Todd has been very busy since the days of The Apprentice and it was absolutely refreshing to catch up with a rising star who still has her wits about her.
Read all about it online at
Read all about it online at
http://viewer.zmags.com/publication/b1bad9f9#/b1bad9f9/1
Enjoy!
Robert D. Cass
Saturday, April 25, 2009
Eco-Brokers
I have had the pleasure recently of making contact with an Eco-Broker out of DC. His name is Mike from Green DC Realty (www.GreenDCRealty.com) so we have been having an ongoing conversation about the market, and the green industry as well as different techniques that real estate professionals are employing to stay in the game.
The more I get to speak to Mike, the more I am impressed with the level of professionalism and commitment by the best of the best. I do not know what his client base looks like or how many houses he has sold in the past or even the present. Here is what I know, though…the guy is a consummate professional and is working in ways that are inspiring to me. I consider myself a very fortunate individual in that I get to meet and rub elbows with the best of the best and this is no exception. Mike is involved, to say the least.
After looking over the Green DC Realty website, I began to realize that he is not just a Realtor…this guy is totally committed to the industry, both the real estate industry and the green industry. He is doing everything right, from writing articles, meeting with developers and getting involved in new ideas and building projects. Most of those things are not income producing activities, but in my mind, it shows that he is totally involved in the market. Here we are in a downturn right now and this guy is absolutely thriving! And by the way, he isn’t just doing these things to build his credentials; he is doing it to make a difference. I am always impressed with people that go the extra mile to make an impact. It isn’t always the most financially rewarding path, but it is the most admirable.
What I eventually came to realize, is that it is his mindset that sets him apart. This is not a 9-5 kind of guy. He eats, sleeps and breathes this stuff…What other way is there to be? I can’t imagine being new to the industry and having to compete with guys like that, because they operate at a whole different level. Amateurs can’t hold a candle to these people like him. The down turn in the economy and the real estate industry is similar to the dot-com bust a few years ago. It used to be that there was a computer store on every corner, and a new technology start-up in between. But when things turned south, the herd was thinned quickly and only the strongest survived. It isn’t so different now. The best are getting better and the weak are going away. Michael and his team will be around a long time because of their attention the industry and their genuine concern for the environment as well as their client base. Kudos Michael….Keep up the great work. If you are looking for an expert in Green Real Estate go to www.GreenDCRealty.com and contact Mike.
Rob
Friday, April 24, 2009
New Edition of Local Real Estate Deals magazine
Good Evening! Just a quick note to let you know that the latest issue of the magazine is now online…click and share!
http://viewer.zmags.com/publication/b1bad9f9#/b1bad9f9/1
thanks for all the continued Support!!!
Respectfully,
Robert D. Cass
http://www.LocalRealEstateDeals.com
Wednesday, April 22, 2009
Leverage
Now would be a good time to talk about leverage. You know, that term that everyone has talked about for so long. It is easy to talk about leverage when everyone is doing well in the market. It is actually a joy to talk about how much leverage you have in the market and how well you have positioned yourself.
But we are just getting to the point where we are seeing a few people out there that understand what true leverage is and what the correct ratios are. For those few out there that have been through this sort of downturn in the market and actually learned from it, this is an awesome time to be a real estate investor.
Consider that if you knew where to look and what indicators to keep an eye out for, you could have seen this coming a mile away. For anyone who has a surplus of cash and is not hemorrhaging right now, it is a buyers market like nothing we have seen in 80 years. I have been saying that THIS is the real opportunity, not the past 8-10 years. This is going to go on for a while too, so don't fret. The key is to understand what your ratios are and to understand the meaning behind the numbers.
One of the worst things we can do as investors is to let the banks tell us what is acceptable and what is not acceptable. Dive into your numbers and look at the big picture, you can still be conservative and make a killing. Too many of us (yes, I have been caught up in it as well) were overly aggressive and we are lucky if we learn from our mistakes.
If we are smart, we can learn and grow our portfolios much larger than before the market toppled. The key is that we have to be disciplined enough to conduct our own debrief analysis to figure out where we went wrong and put personal investing policies in place that we actually adhere to. Discipline, discipline, discipline.
Then focus on gaining leverage. Because if this ever happens again, you will definitely want to be ready for it. Shame on all of us if we let this happen again and worse, if we are not leveraged properly!
Robert D. Cass
But we are just getting to the point where we are seeing a few people out there that understand what true leverage is and what the correct ratios are. For those few out there that have been through this sort of downturn in the market and actually learned from it, this is an awesome time to be a real estate investor.
Consider that if you knew where to look and what indicators to keep an eye out for, you could have seen this coming a mile away. For anyone who has a surplus of cash and is not hemorrhaging right now, it is a buyers market like nothing we have seen in 80 years. I have been saying that THIS is the real opportunity, not the past 8-10 years. This is going to go on for a while too, so don't fret. The key is to understand what your ratios are and to understand the meaning behind the numbers.
One of the worst things we can do as investors is to let the banks tell us what is acceptable and what is not acceptable. Dive into your numbers and look at the big picture, you can still be conservative and make a killing. Too many of us (yes, I have been caught up in it as well) were overly aggressive and we are lucky if we learn from our mistakes.
If we are smart, we can learn and grow our portfolios much larger than before the market toppled. The key is that we have to be disciplined enough to conduct our own debrief analysis to figure out where we went wrong and put personal investing policies in place that we actually adhere to. Discipline, discipline, discipline.
Then focus on gaining leverage. Because if this ever happens again, you will definitely want to be ready for it. Shame on all of us if we let this happen again and worse, if we are not leveraged properly!
Robert D. Cass
Tuesday, April 21, 2009
Touch and Go, Baby! Touch and Go!
I had the immense pleasure of catching a couple of Navy Fighter Pilots practicing their touch-and-go approaches tonight in their F-18 Super Hornets. What an awesome spectacle! I saw them flying circular patterns and new exactly what they were doing. Normally, I am not in a position to stop and check them out, but today I had a few minutes to kill. I found the absolute perfect observation spot and waited for a minute or two…sure enough, less than 100 feet directly over my head, my whole body rumbled as the jets glided to their target…As they passed over head you could see the flaps making the adjustments until the jet touched down, and then it was full power as they climbed back up to altitude! AWESOME! I stayed there for about 15 minutes and realized how lucky I was to be witnessing this first-hand.
It’s all about repetition. In everything we do, to become better at it, we need to practice. Even the seemingly mundane things need to be practiced and rehearsed, over and over and over again. It is no accident that we have the greatest pilots in the world. They are trained for thousands of hours and after they achieve fighter pilot status, they keep training and training and training. It is the mark of the true professional. When you keep honing your skills and keep looking for things that you could have done better. It is inspiring to witness this not only in fighter pilots, but also in real estate professionals.
No matter what we do, there are things in our daily professional lives that we do over and over again without thinking much about it. Take some time to slow down those every day things to see exactly how you can make a bigger impact, or become more efficient…look at every aspect of your business and find ways of pushing the envelop. This should be a continuing effort. I think that Stephen Covey called that, “Sharpening the saw.” I call it, “Touch and Go, Baby! Touch and Go!”
God Bless our Troops! And God Bless
Robert D. Cass
Monday, April 20, 2009
Kyte Video
I have always said that technology for the sake of technology is useless. I know there is a ton of cool technology out there and a lot of it is very “James Bond,” that is to say that it would be great to use if you were a spy, but for the rest of us it is completely useless. In order for technology to be truly useful, there needs to be an application that is useful to the everyday person. We have recently found some truly useful technology and believe there is a case for real estate professionals to embrace it.
The technology or company in this case, is Kyte. Keep in mind that I am just getting to know this video technology, but am absolutely impressed with the things that you can do with it. First of all, Kyte allows me to take video using my cell phone and post it to my Kyte Channel. That in and of itself is pretty cool, but it gets much better. When I set up my Kyte Channel, I can choose my other websites where I want my video to show up automatically when I send video to my channel. Once I send my video, Kyte does the rest. The next thing you know is that my video is showing up on all of my corporate and personal websites….Very cool!
Kyte had businesses in mind when it developed the technology too, which is another benefit. Using Kyte, you can monetize your channel as well. What that means is that they give you the tools to allow or to create advertisers to advertise on your channel. Consider the fact that you have your own “TV Channel” why wouldn’t you collect advertising fees from those folks, or companies that would want to reach your friends, family and viewer base? Very smart!
It also allows you to keep in touch with the people viewing your channel. Believe it or not, people can use that channel to communicate with each other using a built in chat feature. Why is this all important? Well, when you are building your personal real estate brand, it is important to embrace technology that will allow you to leverage your time and reach as many people as possible. You will also want to separate yourself from the pack. While there are plenty of other companies out there that allow for video, very few if any have your business in mind. Most of them are for individuals, not professionals. Kyte offers world-class technology that allows you to post video of a property instantly to the web as well as your own comments and updates on what is going on. It is a great way to build brand loyalty and to keep people tuned in to your “station.”
Go to www.Kyte.com to see the technology for yourself. Create a channel and work with it to determine the best way to use it, then let us know what you think of it.
Respectfully,
Robert D. Cass
V: 757.729.3124
E: rcass@LocalRealEstateDeals.com
URL: www.LocalRealEstateDeals.com
Friday, April 17, 2009
Real Estate Notebook
Ok, so every once in a while I come across a product that blows my mind away. For different reasons, different products impress me at different times. Keep in mind that I have bought plenty of real estate investor programs and have attended many of the same seminars that many of you have, so I have seen and paid for plenty of products.
I recently stumbled across www.RealEstateNotebook.com and downloaded the 2-week trial version of the product. As I was checking it out and going through the usual test procedures, I was amazed at the no-frills, no sales pitches to buy anything else approach to the program. It was extremely simple, extremely user friendly…It needed no explanation or disclaimers; in short, it was excellent!
So I immediately went back to the website and looked through the pricing…$59.95! So I looked for the “catch.” I kept looking and looking and to my surprise there is no “catch.” It is the real deal. Finally!
Here is what the software is not. It is not flashy, it is not full of sales pitches for other products or upgrades and it is not limited in its use. I loaded up with properties and ran reports and did everything that I would need it for on a regular basis and it worked like a champ. Keep in mind the old adage “garbage in, garbage out” because you are the one entering in the data.
By the way, this is not something that a sophisticated real estate investor would probably use. I would hope that any sophisticated investors would be past this and have their own system developed. If, by some strange chance, you have been investing for years and have multiple properties, then you may want to check this out. My opinion would be to try it out for two weeks to determine if it has the level of functionality that you need and the reporting that would be useful to you and if it exceeds your own system’s capability, then by all means, plunk down $59.95 and revamp your real estate system.
I would say that the Real Estate Notebook is more for beginner to intermediate investors who are still working off of the spreadsheets and basic formulas that they bought from the late night infomercials. I am not saying that any of those programs are bad, I am just saying that you can streamline a lot of what you are doing by using Real Estate Notebook.
Now, if you are considering paying $500-$5000 for any other software and are not an investor at this point, let me give you some advice. The numbers are the most important thing. You need to learn to walk away from a property if the numbers don’t work. PERIOD! The challenge for most new investors is that they don’t know what numbers are important, or forget key components that leave them short on capital to finish a project. That is not going to happen with Real Estate Notebook. It guides you through each transaction and asks you to populate each field that is specific to the transaction. At the end of it, you have a good idea whether you should move forward or not with the property. So, if you are thinking about becoming an investor, it would be wise to download the free trial version because as you answer the questions, you are actually getting trained on what to look for and what questions you should be asking about the property. Trust me when I tell you that I have literally paid thousands of dollars to be told what the Real Estate Notebook “tells” you.
If I could do it all over again, I would pay $59.95 for Real Estate Notebook, versus the $500-$5000 that I paid for my late night infomercial package. But that’s just me. I have been around the block a few times and I am not as easily impressed as I used to be, but I am genuinely impressed with the amount of time and energy that has been put into this streamlined, but very capable software. I also had a chance to speak with the owner and designer of the software, Michael. What a great guy, he is humble and proud of what he has created and why shouldn’t he be? It’s a great product.
I made no bones about telling him that his product was woefully under-priced. If I was him, I would go on the speaking circuit, put it in a flashy box and sell it for at least $499, here’s why. I believe in providing quantifiable value. Here is a guy who has designed a great real estate management system. If you use this software correctly and do your due diligence, you may find that the property you were going to purchase is just not going to pan out, so you don’t buy it. Let’s just say for the moment, that you would have bought it, if you didn’t go through a correct analysis of the property. That property could end up costing you thousands and maybe even tens of thousands of dollars over the course of your ownership. So in one respect, it is like an insurance policy against bad decisions. It doesn’t guarantee that you are going to make great decisions, but it will help steer you clear of bad decisions….You are always welcome to make bad decisions by the way, but at least you will have the advantage of knowing ahead of time that you are about to make a bad decision.
Next, it will help you make better decisions based on data versus scattered notes and loose pieces of paper. You will be able to look back and say with certainty that you made a good decision based on “X” numbers and your real estate business will be based on sound real estate principles, versus speculation.
For what it is worth, I told Michael that I wouldn’t offer a money back guarantee…the price is already ridiculously under priced, and he gives a two week free trial for crying out lout! Use it and you will make your money back in spades. If you are worried about losing $59.95 don’t even bother buying it…keep your day job and work a couple of hours overtime every week, because you are not risk-tolerant and you don’t understand a deal when it is staring you in the face.
Either way, good luck and happy investing.
Robert D. Cass
Thursday, April 16, 2009
time to test the technology
Ok, sorry you have to be a part of this…but we are testing our email capability to our blogging platform…If you can read this…it worked. What that means is that I was able to post from my laptop while on a train, going under a bridge that an airplane was flying over….ok, the test is over…Thank you for your patience.
Respectfully,
Robert D. Cass
V: 757.729.3124
E: rcass@LocalRealEstateDeals.com
URL: www.LocalRealEstateDeals.com
Can't Refi? MODIFY!
There is a lot of talk going around about whether loan modification is a good thing or not. Well, whether you agree with it or disagree, if you take a look at the big picture, you might see that it is helpful for the moment. And yes, I understand that there are a lot of really responsible folks out there that have been paying their bills on time and have been completely responsible, but if our economy collapses we will all be in trouble.
What I am not saying is that it is the right thing to do, I am saying that it represents an unprecedented opportunity to set things right with your own personal finances. There were a ton of companies that made money off of what we are now calling "predatory" loans. I have seen some ridiculous interest rates and the problem is that many people never fully understood the implications of the loan that they were signing...many did, but by and large many did not...Why is that? because many of the loan officers who were soliciting and selling these loans didn't understand the implications of those loans.
One way to offset the lack of education is to work with loan officers and mortgage professionals that are affiliated with the National Association of Mortgage Brokers, or NAMB for short. This organization adheres to the highest standards for ethics and they encourage and support education in the industry.
But let me get back to my point...Many loan officers did not have the first bit of financial training, yet they were offering advice to folks about the biggest investment of their lives...That is a major problem. You can bet these loan officers were not telling people to make sure that they had adequate insurance protection on their family and to make sure that they were contributing the maximum amounts to tax deferred retirement accounts. You can bet that most of these loan officers were not telling their clients to be careful and set aside reserves for down times. That is what makes me angry. You know why none of that was happening? because there is no legal reason for these loan officers to be telling you these things.
Why is it, insurance and financial professionals need to go through rigorous licensing requirements and background checks, but loan officers do not? This is absolutely amazing! The fact that someone can get a $200,000 loan from someone who is completely uneducated about money, but they have to seek professional counsel for putting $100 away per month in an IRA or 401k? The logic is beyond me.
And while I am on this topic, why is it that most of these loan officers that were hawking these loans now in dire straits themselves? Well, the obvious reason is that they didn't understand sound financial concepts and were giving dangerous advice...advice that they were taking themselves.
Ok, so back to loan modifications. If you find yourself in the position of needing a loan modification, you can do a few things yourself that will greatly improve your chances of getting some help. This is not an all inclusive list, but certainly take some of this advice and throw out what doesn't work...
1. Don't present yourself as a victim. Once a victim, always a victim. Be positive when you are talking to the person on the other side of the phone. Believe it or not, it makes a tremendous difference. Nobody wants to talk to a person who is a "downer" all the time. People like to talk to energized positive people. If you are not one of those people, become one, at least long enough to get off the phone.
2. Make a friend on the other line. Banks are up to their necks right now in loan modifications. They have departments that are set up to handle these transactions. When you find someone that sympathizes with you, MAKE A FRIEND. Connect with them, make sure you get their extension number. It is not going to hurt you, in fact it will most likely help you. Each person that you speak to creates notes in your file. You might as well get the best notes possible in your file. You may even find that you have an advocate on the other side of the phone. One day it may come down to that person making a recommendation on your file and you want that person to make the decision in your favor even if it only buys you a little time...Sometimes that is all you need.
3. Once you get an offer, even if it is an awesome offer, don't display any emotion...simply ask "is that the best you can do?" Don't sign anything immediately. Sit on the offer for at least 48 hours. As uncomfortable as it is, do your best to get a better offer. You already know that they are willing to work with you, now see how deep they can go. Trust me, the first offer is generally a smoke screen...don't jump on it. Ask yourself if this is truly going to help you six months down the road, or even a year. If you are going to be in the same position, then ask for more or else it just doesn't' make sense. Keep in mind that once you have completed and signed your loan modification, there is very little chance you will ever get the opportunity to modify your loan again. So make sure that you are getting the best deal possible. .
These simple things won't guarantee that you are going to be successful, but none of them are going to hurt an already bad situation.
Good Luck and God Bless...hang in there and know that you will make it through this one way or the other.
Rob
http://www.LocalRealEstateDeals.com
What I am not saying is that it is the right thing to do, I am saying that it represents an unprecedented opportunity to set things right with your own personal finances. There were a ton of companies that made money off of what we are now calling "predatory" loans. I have seen some ridiculous interest rates and the problem is that many people never fully understood the implications of the loan that they were signing...many did, but by and large many did not...Why is that? because many of the loan officers who were soliciting and selling these loans didn't understand the implications of those loans.
One way to offset the lack of education is to work with loan officers and mortgage professionals that are affiliated with the National Association of Mortgage Brokers, or NAMB for short. This organization adheres to the highest standards for ethics and they encourage and support education in the industry.
But let me get back to my point...Many loan officers did not have the first bit of financial training, yet they were offering advice to folks about the biggest investment of their lives...That is a major problem. You can bet these loan officers were not telling people to make sure that they had adequate insurance protection on their family and to make sure that they were contributing the maximum amounts to tax deferred retirement accounts. You can bet that most of these loan officers were not telling their clients to be careful and set aside reserves for down times. That is what makes me angry. You know why none of that was happening? because there is no legal reason for these loan officers to be telling you these things.
Why is it, insurance and financial professionals need to go through rigorous licensing requirements and background checks, but loan officers do not? This is absolutely amazing! The fact that someone can get a $200,000 loan from someone who is completely uneducated about money, but they have to seek professional counsel for putting $100 away per month in an IRA or 401k? The logic is beyond me.
And while I am on this topic, why is it that most of these loan officers that were hawking these loans now in dire straits themselves? Well, the obvious reason is that they didn't understand sound financial concepts and were giving dangerous advice...advice that they were taking themselves.
Ok, so back to loan modifications. If you find yourself in the position of needing a loan modification, you can do a few things yourself that will greatly improve your chances of getting some help. This is not an all inclusive list, but certainly take some of this advice and throw out what doesn't work...
1. Don't present yourself as a victim. Once a victim, always a victim. Be positive when you are talking to the person on the other side of the phone. Believe it or not, it makes a tremendous difference. Nobody wants to talk to a person who is a "downer" all the time. People like to talk to energized positive people. If you are not one of those people, become one, at least long enough to get off the phone.
2. Make a friend on the other line. Banks are up to their necks right now in loan modifications. They have departments that are set up to handle these transactions. When you find someone that sympathizes with you, MAKE A FRIEND. Connect with them, make sure you get their extension number. It is not going to hurt you, in fact it will most likely help you. Each person that you speak to creates notes in your file. You might as well get the best notes possible in your file. You may even find that you have an advocate on the other side of the phone. One day it may come down to that person making a recommendation on your file and you want that person to make the decision in your favor even if it only buys you a little time...Sometimes that is all you need.
3. Once you get an offer, even if it is an awesome offer, don't display any emotion...simply ask "is that the best you can do?" Don't sign anything immediately. Sit on the offer for at least 48 hours. As uncomfortable as it is, do your best to get a better offer. You already know that they are willing to work with you, now see how deep they can go. Trust me, the first offer is generally a smoke screen...don't jump on it. Ask yourself if this is truly going to help you six months down the road, or even a year. If you are going to be in the same position, then ask for more or else it just doesn't' make sense. Keep in mind that once you have completed and signed your loan modification, there is very little chance you will ever get the opportunity to modify your loan again. So make sure that you are getting the best deal possible. .
These simple things won't guarantee that you are going to be successful, but none of them are going to hurt an already bad situation.
Good Luck and God Bless...hang in there and know that you will make it through this one way or the other.
Rob
http://www.LocalRealEstateDeals.com
Wednesday, April 15, 2009
The Pendulum Swings both ways!
There are so many wild things going on in real estate and mortgages right now, that you have to expect some overreactions on all sides of the business. Specifically, last September Fannie Mae's guidelines limited investors to purchasing 4 properties. Ouch! This put a crunch on many would-be investors.
At the time it looked like an over reaction, but in hindsight, it did have some positive effects. Over the past decade, there were many "investors" who had no business being in the business of real estate investing. Now, they were not the only problem, but the system encouraged them to purchase 10 properties and the vast majority of those folks were completely over-leveraged and not prepared to handle a down turn in the market.
While I completely disagreed with the decision last fall to cut back to 4 properties per investor, it did serve to stem the tidal wave of investors who were getting into the market and were ill prepared for the worst. Granted, by that time, the damage had already been done, but at least the effort was made to correct one aspect of the problem. I think that, by and large, it worked to keep the people out who should not have been investing.
Here is the funny part though...the people who are true investors know how to move money around and purchase properties REGARDLESS of what Fannie Mae is up to. Those relatively few have been largely unaffected because they understand how to buy correctly and more importantly, know what ratios they should stay under to keep from being over-leveraged. If we the bankers tell us what we can and can't do, we will be in a pretty precarious place. Thank God there are those investors who know where to get the money to move properties.
You see, it's a very bad thing when deal flow stops, so we all need investors to keep deals going when the market slows down. There is legislation being considered in every state that threatens the rights of investors and that is a very dangerous thing. While we are in this down market, we need investors like never before because, by and large, they are the only ones making a consistent difference. I know there will be someone who will tell my how untrue that is, but I don't care...whether I am right or wrong is not important, the fact remains that real estate investors are a very, very necessary part of our financial eco-system. Take them away and bad things happen.
The herd of Investors has been thinned out to a reasonable degree. Now we need to get back to basics and build a nation of educated investors...and by that I am not talking about an education by Carleton Sheets. I am talking about sound business plans with reasonable exits and a deep understanding of leveraging principles.
Healthy Investing!
Rob
http://www.LocalRealEstateDeals.com
At the time it looked like an over reaction, but in hindsight, it did have some positive effects. Over the past decade, there were many "investors" who had no business being in the business of real estate investing. Now, they were not the only problem, but the system encouraged them to purchase 10 properties and the vast majority of those folks were completely over-leveraged and not prepared to handle a down turn in the market.
While I completely disagreed with the decision last fall to cut back to 4 properties per investor, it did serve to stem the tidal wave of investors who were getting into the market and were ill prepared for the worst. Granted, by that time, the damage had already been done, but at least the effort was made to correct one aspect of the problem. I think that, by and large, it worked to keep the people out who should not have been investing.
Here is the funny part though...the people who are true investors know how to move money around and purchase properties REGARDLESS of what Fannie Mae is up to. Those relatively few have been largely unaffected because they understand how to buy correctly and more importantly, know what ratios they should stay under to keep from being over-leveraged. If we the bankers tell us what we can and can't do, we will be in a pretty precarious place. Thank God there are those investors who know where to get the money to move properties.
You see, it's a very bad thing when deal flow stops, so we all need investors to keep deals going when the market slows down. There is legislation being considered in every state that threatens the rights of investors and that is a very dangerous thing. While we are in this down market, we need investors like never before because, by and large, they are the only ones making a consistent difference. I know there will be someone who will tell my how untrue that is, but I don't care...whether I am right or wrong is not important, the fact remains that real estate investors are a very, very necessary part of our financial eco-system. Take them away and bad things happen.
The herd of Investors has been thinned out to a reasonable degree. Now we need to get back to basics and build a nation of educated investors...and by that I am not talking about an education by Carleton Sheets. I am talking about sound business plans with reasonable exits and a deep understanding of leveraging principles.
Healthy Investing!
Rob
http://www.LocalRealEstateDeals.com
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