Have you ever lost nearly $175,000 investing in the stock market?
I haven’t, but my newest investor clients have.
I don’t know the final straw that finally broke their confidence in the brokers of Wall Street. It could have been when they didn’t get out in time during the “dot.com” crash (lost $125K); or when their broker change companies to go to a big investment firm (they liked the broker, but never received good service from the firm, so they went against their gut instinct and transferred their funds); or it could have been when the economy started to go south late last year, but most folks didn’t realize it (lost $30K)…
Or maybe it was when the investment firm went belly up like a dead fish and their broker stopped returning phone calls. It could have been that during the last two month they still lost another $17K.
I don’t know what pushed them over the edge, but I do know this… Keep reading →
As a birthday gift my brother sent to me a book by Ranier Maria Wilke. The book I received is called Letters to a Young Poet, which is a collection of short letters Wilke sent to an admirer who was looking for feedback and direction.
What is both disturbing and inspiring about Wilke’s responses is the importance he placed on isolation.How he understood the imperative that one should recapture the freedom had as a child.The freedom to release your mind from the anxiety string of the world and let it float away as it was a balloon. Remember those days when you looked in the sky and wondered “Wow”; before you were told to stop daydreaming? Ever since that verbal redirection you began to echo the assimilated others.
Your true voice has been lost for years hidden in the sofa next to the pennies and jelly beans.
To find yourself again isolate yourself for awhile.Separate yourself from electronic tethers like the television and the cell phone. Take only the book that is stored inside of you and realize that you have a purpose, a role in this life, large or small, it must be played.Even if you only have one line, be prepared by finding that voice.
Arizona, Nevada, California, and Florida are currently classified as Extreme Declining Markets by Fannie Mae and Freddie Mac. As a result of this new classification, FNMA and FHLMC will require the following on all appraisals (this only applies to declining market areas):
1. The most recent and similar comparable sales available as part of the sales comparison approach must be used. Any change in market conditions from the date the contract of sale was signed and date of the appraisal must be considered.
2. Verification of comparable sales with a reliable party that is not associated with the subject property or the subject property’s development, and at least two comparables must be verifiable through the Multiple Listing Service (MLS) as Arms-Length transactions.
3. Two of the comparable sales must have closed within the last 90 days.
4. At least one current listing or pending sale must be provided.
5. Comparable sales must be mapped in the appraisal.
6. Days-on-market for subject and comparable sales must be provided, if applicable. The average days-on-market for the comparable sales must not exceed the “Marketing Time” box marked by the appraiser.
7. If the appraiser is unable to meet any of the above requirements, the appraiser must provide a detailed explanation as to why the requirements were not met, and if it resulted in making an adjustment to the property value.
Recommended Practice
If the subject property is an REO, or if the subject is located in an area where there are a substantial number of REO properties, the appraiser must identify this fact and discuss its impact on the subject’s property value. In addition, REO comparables should be considered if the appraiser believes that such comparables are legitimate competing properties.
Additional Requirements for New Projects and DevelopmentsKeep reading →
The legendary investor Warren Buffett speaking to graduation mba class part 3
Every Thursday night I watch Donald Trumps’ The Apprentice.I enjoy both its entertainment value and the business lessons it demonstrates.
This season is called the Celebrity Apprentice. The celebrities are not vying for a $100,000 job with Donald Trump, they are raising money for their favorite charities.
In this episode, Gene Simmons, from KISS fame, happily moved over from the all men team, Hydra, to the women’s team called Empresario. The task was to raise awareness of how Kodak’s new inkjet printing system saves consumers up to 50 percent on everything they print.
Surprisingly, the team that won did not produce the best packaging or slick promotional material, but focused on the goal of the client.
With coffee-ruined laptops, last-minute promotional material, sloppy set-up, and a sub-par layout, Hydra was singularly focused on making sure each prospect understood the new Kodak inkjet system would save printing cost money.Empresario, with the “benovelent dictactor” Gene Simmons, decided to go the route of big picture highly stylized and flashy vision of it’s a “Kodak World.”
What I learned from this episode is that promotional material is important. However, having a focused understanding of what your product or service can provide and effectively communicate that knowledge in a clear, concise way is of greater importance and can be done more cost-effectively than any expensive 4-color fluff piece.
If Empresario was able to just tweak Gene Simmons fantastic promotion to explain how it could save the printer ink buying public more time and money they would have won.In relation to real estate, this could be equal to having a great product, in a good location, but not being able to deliver in terms for financing. It is important to understand the entire picture, yet focus on the point that will get a unique product, service, or concept sold will ultimately solve a client’s “heartburn” issue.
If you miss the mark on what your unique service proposition should be you will ultimately hear the words that Gene Simmons did from Donald Trump, “You’re fired!”
The Legendary Investor Warren Buffett talk to a graduating MBA class Part 2
This year thousands of homeowners will step into the abyss of having their homes foreclosed.The number of folks who think that buying foreclosures is easy, is staggering.
But that is simply not the case. There are so many things that can go wrong when trying to purchase a foreclosed property.Foreclosures simply aren’t easy to buy!
One of the things that makes’ it difficult, is the uncertainty of communication.There are multiple layers of red tape you have to go through just to get to a decision-maker.
Here are my five Keys to buying a foreclosed property:
1.Don’t assume–no matter what the list price is, do your own comparables.Talk with the neighbors, they might know something about the property that the bank doesn’t know, and wouldn’t tell you if they did.
2.If you want a smoking deal then search for properties that have been on the market for over 200 days then offer 20-30% less than what they are listed at.Just because it is a bank has it listed at a certain amount, doesn’t mean they know how to price properties to sell.
3.Treat your real estate agent as your best friend… even if they aren’t, because you will be talking with them often.Many times they don’t know what’s going on with the bank either… so you might as well be on the same page with them.
4.Don’t be intimidated by the banks seller addendum’s.They aren’t scary… just lopsided because they want all the terms to be in their favor.
5.When you feel like it is a big hassle and you want to quit, repeat three times; “I like helping to pay my landlords mortgage payments!
You have to be patient in dealing with banks, it could take between four to six weeks just to get a response from the banks about your offer.If you’re renting, it’s best to get a month-to-month extension because when it’s time for you to close, you’ll need to close quickly.
Legendary Investor Warren Buffett Speaking To A Graduating MBA Class Part 1
Side-Step The Big Business Branding Techniques That’ll Leave You Broke And Disappointed And Discover Cost-Effective Branding Strategies That Small And Home-Based Businesses Can Start Using Today
Directly offer a product/service for sale at your website. You can offer a product or service on your webpage or you can offer free information to lure people to another where you then have a product or service available. This is the most popular way of making money on the net because it’s easy to set up and you can get the initial profits rolling almost overnight.
Or,
2. Get as many visitors to your site as possible by enticing them to come with something special you offer (Such as valuable information, help, files, free stuff, etc.). Then, once the visitor counts are high enough, you can sell advertising space on your site or sponsorships or banner advertising.
The above aspect of online marketing, with the intent to sell advertising space, is not talked about as much because it doesn’t generate instant cash and requires an investment of time and money of at least six months. Once these sites are successful however, they pay off big and the time commitment and maintenance from that point on is minimal. A good example can be found at http://www.theautochannel.com.
The autochannel site has been a success because it offers daily news on the automotive industry and free information on all things automotive (including new and used car prices and dealer invoice costs). To the best of my knowledge, the AutoChannel generates over three hundred thousand visitors a week (that’s millions of hits a month) and can sell premium advertising space. They generate over $100,000 each month in advertising fees from corporations like Pennzoil and Allstate, regardless of what else they are able to sell.
For me this past year has been one that proven very educational.
From going through the market changes of real estate to becoming the sole breadwinner for my family I have learned a lot.
In 2007, one the two things that I have learned is that the only thing that I can control is my actions and attitude.I can’t control nothing else, but my actions.With my new focus of just focusing on controlling my actions I have a motto for 2008 and a motto is “Get It Straight In 08!”
For me, 2008 is a two prong approach for personal and professional success one that will involve simplification and massive action.
I hope that you enjoy watching me in 2008, as I focused on simple-massive-action results-oriented behavior.
I’m in the middle of reading this book you may have heard of…
It’s called “The 4-Hour Workweek” and it’s written by a 30-year-old millionaire named Timothy Ferriss — and this sucker has been flying off the shelves from coast to coast. The book’s philosophy essentially boils down to this…
If you manage your time, your goals, and your priorities effectively, it’s totally possible for you to generate a
comfortable, full-time income working just 4 hours per week. Goodbye trying to fit your social life around your 9-to-5 job, and hello freedom and prosperity!
Seriously though — who doesn’t want that? No wonder this book’s become an instant best-seller. But since releasing it, Tim Ferriss has come under some serious fire from prominent entrepreneurs who are whining
(let’s be honest) that designing your ‘ideal lifestyle’ of minimal work and maximum play is not that simple… that it takes YEARS of hard work, blood, sweat, and tears to make that happen.
But I beg to differ!
I’ve know many people who have started their own moneymaking Internet businesses from scratch. (In fact, I count myself among their number!)
And I can tell you this without a shadow of a doubt: The success people like us have achieved did NOT come as a result of how much time we’ve spent working on our businesses, but what we’ve DONE with the time we’ve spent.
For example: Someone with clear, intentional goals and a step-by-step action plan will accomplish wayyyyy more in 60 minutes than someone who is mired in information overload and analysis paralysis will accomplish in 8 hours.
I’ve seen high school drop outs, retirees who are downright scared of computers, and even teenagers achieve *massive* success on the Internet ‘working’ as little as 4 hours per week… and in some cases, even less than that!
It’s possible — I’ve seen it, I’ve done it, and I’d like you to do it, too.
You don’t have to know it all, learn it all, or spend days at a time researching your next step to generate a full-time income on the Internet. You simply need to surround yourself with people who have the expertise that you don’t, and let them steer you along towards success.
But where can you find such experts willing to openly share their expertise and stand over your shoulder as you grow your own moneymaking website? Click here now to find out!4 Hour Work Week Info
I would like to share with you some ways to make long-term investments work in your portfolio. One of the biggest inhibitors to successful long-term efforts is getting your properties to have a positive cash flow in the early years. When you hold property with fixed mortgages, rents eventually rise over time and pay handsome returns while the monthly payments remain the same.
However, in the early years, positive cash flows can be fleeting and difficult to achieve consistently. I can show you how to improve your cash flow early on, which will improve your long-term portfolio. I know that when you have a positive cash flow, you will be more likely to invest on a higher level. Here are three ways to increase your cash flow:
First, increase rents. To justify the increased rental rate, add appliances that the building may lack. Adding washer and dryer hook-ups is always worth additional rents. This also allows you to lease appliances to tenants for additional income. You can also increase your revenue by adding extra parking, covered parking, storage facilities, fenced play areas for kids, pet-acceptable apartments, furnished apartments, soda and candy machines, and extra bedrooms and bathrooms where floor plans permit.
Second, decrease expenses. You can decrease expenses in a number of ways. I love to find buildings with joint gas or power meters that have separate meters. This allows the owner to pass the utilities bills to the tenants because each tenant can sign up separately. I also love to save money by putting in better insulation in the attics, higher efficiency furnaces, air Conditioners, better-insulated windows and doors, and low water-required landscaping. Less expense means more money goes to your bottom line!
Third, find properties that are large enough to build additional units. Finding the right property can be tricky, but very lucrative. If you are already making money with the existing units on your property, imagine your cash flow with additional units! Call me to show you how to begin to locate these properties.
Properties that pay positively are great assets to anyone’s financial portfolio
