Generating Wealth Velocity

 

 

            I had a chance to interview Matt Bowles, one of the partners of Maverick Investor Group http://www.MaverickInvestorGroup.com a few days ago and he mentioned a word in that interview that has been on my mind for the last few days…that word is VELOCITY! I love the word velocity when it is used in conjunction with wealth and real estate investing because it is not the same old tired phrase that most of us are tired of hearing…you know the one. ..OPM, or Other People’s Money…We all understand what OPM is and how to use it, but VELOCITY is a whole different story.

 

            Duing the interview, I had to stop and dwell on the point for a moment, and as usual, Matt obliged me. You see, when you are talking to an expert you have to listen closely and take notes. Everything that Matt says made so much sense, I had to slow him down to make sure I didn’t miss important facts. Keep in mind, I am in this industry and I consider myself an astute student, but sometimes I am amazed at the simplicity and focus of the people that I get to meet and rub elbows with…Matt is no exception…

 

            Ok, so he went on to explain that most people leverage their money fairly well. This point has been made by dozens of gurus and is a well-trodden path, but when you leverage your money AND your time, well, that is when you begin to experience the benefit of VELOCITY in your wealth building endeavors. The more I think about it, the more he is right. Think about it for a second, how many people do you know who have leveraged their money properly using real estate as the platform, but then they totally and utterly over-leverage their time, by becoming something they aren’t proficient (or even good) at…namely, being a landlord. Many of us have done so many good things, only to find ourselves in the miserable position of being a landlord and not doing the things that are going to bring us the biggest bang for our buck! How crazy is that? (Ans. Pretty Crazy!)

 

            Pay attention to your time and realize what is giving you the biggest return on your investment…chances are there is some room for improvement and the good news is that if you can find room for improvement, you can increase your Wealth Velocity!

 

Good Luck and Happy Investing!

 

Rob

 

http://www.LocalRealEstateDeals.com

Technology for the Sake of Technology

Who doesn't love technology? After all, many of us grew up watching cartoons like the Jetsons where every episode would show us what the future was going to be like...well, it hasn't happened exactly like that, but as a culture, we are still fascinated with technology.

While the technowizards are creating new technology, it is the marketing wizards who figure out how to apply that technology and that is where the real magic happens. You see, technology for the sake of technology is very James Bond, in that it doesn't have a real practical use in the real world. In order for technology to gain a foothold in the market it needs to have a practical application and solve a problem.

There are too many technologies out there that don't solve any problems and do not have a practical application. While the technology is very cool, what good is it if it doesn't make our lives easier or make us more effective?

Technology has to stand the test of time before I can adopt it. A year doesn't sound like a long time unless you are dealing with technology. The fact is that I don't pay much attention to anything that hasn't been out for at least a year. If it is still around after that, I will check it out which is nice because by that time the price is usually half of what it was when it came out. By that time there will have been enough upgrades to the software that the bugs would hopefully be worked out. Not only that, in a year, people and companies would have put the product throught the rigors of the real world and would have found interesting partnerships and applications. Oh yes, a year is a long time in the big scheme of things.

Beyond the product itself, you need to have a good grasp on the ten thousand foot view as well. If you are keeping an eye on the general feelings of a particular market place, you will be able to spot a really useful technology before the masses understand the applications. Don't feel inhibited to embrace new technology to see if it works and to meddle with it...If you do that, just don't jump off the deep end and make it a part of every aspect of your life until you see it in action. It is easy to be swept off your feet by new technology, but it has to make sense.

One of the things I look for when I am considering new technology is how well it fits into my current suite of technology and how well it integrates. This could be anything from an i-phone to twitter. If it doesn't mesh with what I am working with, then it doesn't make sense. Technology should not create problems, it should relieve problems. I know that isn't always the case, but my point is that it should certainly create less problems than it solves.

To that end, embrace technology by all means, just know that all technology is not necessarily worth embracing. If it can help increase your bottom line, then it is definitely worth looking into.

Happy Investing.

Rob

http://www.LocalRealEstateDeals.com

New Models

The real estate industry is one of the oldest industries around. As long as people have been around, there has been a need for them to have shelter. In an industry as "old" as this, it is tough to come up with anything new. Sometimes we have to look outside of our industry for inspiration.

Over the years I have become fascinated with business models. Each industry has its own model that follows a line of thinking and most people and companies line up behind that mode of thinking and go out and do business the same way. There is nothing wrong with that, in fact, it is a very smart and safe way to grow your business. Like I said, each industry has its own model, so it is always interesting to me to look at how different industries make money.

Every once in a while, I find a business-model nugget that I can apply to a situation in our own business that let's me address a problem that my old model couldn't or wouldn't address. As you explore different models and challenge the models of other industries you begin to learn a new language of problem solving and business modeling.

There is a company that I am quite fond of that has a unique approach to their own highly-competitive market, that company is Morgan-James Publishing. If you think real estate is brutal, you should take a look at the publishing industry...NO THANKS! Anyway, the founder of the company, David Hancock, does things differently. His company is known as The Entrepreneurial Publisher and they have created their own model that will no doubt serve as the new model for many companies. You see, they have dared to try something new...something that hasn't been done before. It is worth checking out their websiteto see what they are doing.
www.MorganJamesPublishing.com



My point is that we cannot expect to get better results by doing what we have done for years. We have to aggressively search for new ways to conduct business. We have to dare to try some things and understand that not everything is going to work. There are no guarantees, so we have to keep reinventing ourselves and look for inspiration outside of our industry if that is what it takes.

My suggestion would be to do some research on what IT, web and computer companies were successful after the dot com bust, to find out how the industry as a whole responded to the down turn in the economy and the market. We can learn from other industries and other mistakes as if they were our own if we pull our heads out of the daily grind and look around. There are golden lessons to be learned and they are your for the taking. By reviewing other models, we gain deeper insight into how we might move forward in a given situation where we otherwise might have be prone to make snap judgments that tend to make things worse.

We have our challenges, but the answers are out there! It is time to reinvent our businesses and in the mean time, reinvent the real estate industry.

We would love to know what you are doing different in the new economy.

Regards,

Rob

http://www.LocalRealEstateDeals.com

Local Real Estate Deals Twitter Tweets!

Local Real Estate Deals just keeps on embracing technology…You can now view our Twitter Tweets on our blog as well…Sign up and follow our daily tweets!

 

Rob

 

Follow Local Real Estate Deals on Twitter

http://twitter.com/LocalREDeals

 

http://www.LocalRealEstateDeals.com

All Hail The Anti-Guru!

We have all been there at some point. We get an email, or someone tells us about them, or even worse...we are watching late night TV. It seems innocent enough at first, but then we begin to show interest, and the next thing you know you are looking for your credit card to pay for the next new product from the next big GURU.

It's nothing to be ashamed of. As real estate entrepreneurs we are always looking for more education and more coaching and that is one of the characteristics that is common among successful entrepreneurs. But we have also seen enough and heard enough from the Gurus to know that there has to be some serious substance to make our hard earned money work for us.

In the last two years I have met some folks who should be gurus, but avoid the spotlight at all costs. First of all, you would never think of them as gurus because of the way they dress. Contrary to popular belief, you don't need a $1500 custom tailored Italian suit to know what you are talking about. In fact, as I write this, it just occurred to me that the people that I have been most impressed with are the ones that are wearing flip flops on a Tuesday afternoon whom I bump into at Starbucks.

You may know some of these people, but never considered that they are the ones you should be tapping for knowledge. They are ridiculously humble and avoid telling you with exact certainty how many properties they own. In fact, they would almost prefer if you just didn't delve to deeply into their portfolio. As you make the rounds in your networking groups, start to look for those folks who are quiet and patient and are NOT trying to make the big impression. These are the people who may be worth listening to.

There are some other things you should look for in your anti-guru. Look for specific kinds of answers to questions. I remember asking a young lady from Hampton Virginia once how many properties she had and her answer was one simple word: "enough." Enough indeed! What struck me was that at the time she was in her early 20's at a time when people were outright bragging about how many properties or transactions that they were a part of...here she was giving one word answers where most people would have taken that as an opportunity to get on a soap box. When she said that, I couldn't help but notice that she was wearing athletic pants to a presentation. It made a strong impression to say the least.

You can always tell when you are dealing with a true professional anti-guru as well when you ask them how much they have made in real estate. The guru will tell you they have made millions, while the anit-guru will give you an answer that is similar to, "I have been blessed, " or "We have done well," or even better, "We have been fortunate." These are humble answers and there is much more to be said for these answers than the typical answers that some gurus hide behind.

If I ask someone how they have done and they feel compelled to tell me how much they have made, then I am going to dig deeper and quantify the numbers...this is fun if you have never done it. For those folks that like to show off their net worth in a conversation, it is easy to find that many of them do not offer a true picture of their net worth...no kidding, right? Anyway, start asking questions that relate to their debt and just probe a little bit, it won't take long to sniff out the stink in their net worth. I guess my point is that they NEED you to believe that they are successful in order to keep being successful. That's how too many of them are successful. Don't get me wrong, we all have to make money, but let's just be clear about HOW we are making our money.

I have recently run across a website that really put this into perspective for me and I want to share it with you...the website is http://www.REMentor.com and on the front page it has a "Guru Test." This is the kind of confidence that I want from someone whose advice I am taking. The questions shed light on the nature of the guru and by the end of it, there is no escaping the light of truth! I love it and I love the approach of getting to the heart of the matter. Questions 4, 5 and 9 would be enough for me to know whether or not I would work with any guru. The website is worth going to and has some excellent advice.

With regards to the anti-guru, I find myself getting nuggets of gold by the finding those humble folks whom I meet up with on occasion every other month or so. The truth in what they have learned is so incredibly valuable. There is not a "high pressure" sale for them to believe what they are saying...they don't need you to believe them. Recognize the anit-guru when you meet them. They look different, they use very specific language and they are humble. Take them out and treat them to coffee or lunch...get to know them. Don't pry for information, get to know how they think and thank them for their time.

Most of these people love sharing information and truly enjoy your company. These are the gifts of life and the gifts of our industry. Recognize these folks as the angels that they are and treat them with respect and you will have an abundance of knowledge. Keep up your formal education, but learn how to distinguish a real guru before you spend a ton of your hard earned money.

Take care and happy investing

Robhttp://www.LocalRealEstateDeals.com

Survival of the Fittest!

If Darwin was alive today, he might use the real estate and mortgage industry to prove his theories on Survival of the Fittest. In the new millennium things happen so fast that we have seen companies come and go in the space of less than a decade. Timelines are moving at an ever-quickening pace and it has become easier to witness the growth and evolution of companies as well as industries.

 

It wasn’t all that long ago that we were able to witness the massive restructuring of the computer industry. The middle to late 90s proved to be a boom-time for almost anyone that knew anything about computers or the internet. If you have a phone book lying around from the late 90s, open it up and look up computers. There is no doubt that you will find a ton of computer companies no matter where you live. But try calling some of those phone numbers and find out how many of them are still in business.

 

You see, principles that apply to the natural world, commonly apply to the business world. In this case, the principle is survival of the fittest. Many of these companies didn’t have the discipline or business acumen to stay in business. This is not necessarily a bad thing…it is all part of a process, just like the process of decay. Economic growth, as well as, rapid economic growth has its place in business and nature and it would be wrong to label it in anyway, including “good” or “bad.” During rapid growth phases, there is typically a swarm of sub-growth or expansion as well. During the late 90s, the internet grew by leaps and bounds and companies as well as individuals figured out new and exciting ways to use it. Many of those “new ways” didn’t pan out. Many of those companies did not have a sustainable model and most of them disappeared over night.

 

The same thing has happened in the real estate industry. It was so incredibly prosperous that we leapt ahead in so many ways. A lot of the things that transpired in the last decade helped to push the limits of our imaginations and many of those things have ultimately failed. As a nation of investors, we know what works and we know of many things that don’t work. It is as natural as the seasons. Now, as you look around at the horizon, take stock of who is still standing and who isn’t. The weak are gone and the strong are still standing. There are some anomalies out there…there are a few weak companies that are still standing and a few good ones that went away, but by and large, nature has taken its typical, statistical toll on our business. Some things just take care of themselves.

 

As for the businesses, products and procedures that have failed, we need to collectively learn our lessons, as I believe most of us are. I think that we are going to see a ton of creativity in the next few years and hope that translates into highly qualified transactions. For the past decade we have been a high-volume business, but for the next 5 years at least, we need to become a high-quality business if we are all to survive.

 

To those of you still standing…Congratulations! You have survived! Now let’s thrive!

 

To your success!

 

Robert D. Cass

 

 

http://www.LocalRealEstateDeals.com

Lemonade for Sale!

 

We must be out of our minds! We started our real estate investor media group (Local Real Estate Deals) as the market was tumbling. The problem is that too many people quit before they begin. We conducted due diligence and the numbers looked reasonable, so we committed. That’s all there is to it. Ok, so the market tanked…you can’t go into your five year plan and quit after the first quarter because things aren’t going according to your plan. So, almost two years ago we started going down a path and have created www.LocalRealEstateDeals.com then we launched our Magazine, now we are launching our social media campaign, then our DotTV station…whooda thunk it?! We are still in the game and gaining ground…this is absolutely crazy! We may even be ahead of our 5 year plan at this point…I am too busy to check, but I will get back to you on that.

 

The market is doing some funky things so it is always interesting to hear the response from someone when I tell them that we are in real estate media…the responses are typically something along the lines of “wow, tough time to be in the real estate industry, bad timing huh?” to which I reply that there couldn’t be a better time to be in the real estate market! In fact we are doing the opposite of what the masses are doing. Rather than running from the industry, we are embracing it! I always worry about the collective wisdom of the masses. That’s why I observe it and run as fast I can in the other direction. We know where we are going and the path is clear, we are telling you where we are going so don’t be surprised when we get there…This is good stuff! The team, the product, the story…It doesn’t get any better than this! It is too easy to make money in a bull market, look for real innovators and leaders to be profitable during a bear market…keep an eye out for us, we are feeling a little bullish lately!

 

While some may see this as a down economy and down market, we are making lemonade, and you know what? It aint bad, you oughta try some!

 

 

Rob Cass,