Tuesday, February 19, 2008
Moto GP versus Formula 1
I had to do it, I had to veer from the subjects at hand and talk about my other two loves, Bikes and Cars. Ok I am not sure what the legalities are here borrowing this, but this is an awesome video. We finally get to see a race between a Formula 1 auto and a Moto GP bike, albeit a short drag race in the rain.
Thursday, February 7, 2008
How to really get Rich in Real Estate
I was not going to do this since there are 1 million idiots selling Real Estate get rich quick scams, but I might as well get some good information out there for Free. We are at a very critical point in the Real Estate world and now is a great time to buy. Here are the golden rules of investing and how to really become rich in the Real Estate investing game.
There are layers and layers of investing vehicles from notes, to second liens to tax liens to dirt to actual Real property, called Real Estate. For those who want to dabble, make a quick buck, do not make much money personally or do not have very good credit, stick to non-real estate investing. The market is on it's ear right now and without assets, good credit and a great job you will not qualify to buy an investment dog house, let alone a real house!
Are you ready: First and foremost, in order to be an investor you must make more money than your debt payments each month. And I am NOT talking about minimum credit card payments, or Interest Only mortgage payments, I am talking about full mortgage payments (taxes and insurance) autos, utilities, food, etc. Also, you need have at least 6 months of total monthly expenses in the bank to even consider investing. On top of those assets you will need to have 10% down payment, in liquid form (no 401k or IRA accounts) for all properties purchased. Last and of course not least, you will need to have good credit. If your credit score is not above a 680, then get into the stock market or notes, etc. The days of 100% financing are gone and you need income, assets and good credit to get into the game. If you do not fit into this category, I will save you time.......ba bye!
Research: OK so now that you have your income, assets and credit in order let's talk about markets. There are still good investment markets in the US making 5% returns on a yearly basis. I believe the US average cycle for RE over a 30 year period is 25% gains, so let's get our money in now. Oh by the way, did I mention we were nearning the bottom of a huge selling cycle, which means over the next 12-18 months those with money are going to go on a buying spree at $.50 on the dollar? This is where you become a millionaire in the Real Estate investing game. Now if I only sold a CD 12 pack for $99 or had my own commercial like Tom Vu. Damn!
1. Areas: Find a market with low unemployment, good job growth, university nearby, and of course a good rental market. Simple, but you would be surprised how many over look this.
2. States: Depending on your budget (10% down rule) there are some states that always provide good investments. CA, FL, NY, WA are always going to have rocking economies and lot's of employees flooding to those states. NC, MO, LA, KS, AL are newly ripe investment areas because of hurricane Katrina. Recent damage, low prices, new construction requirements and a lot of people looking for housing is a recipe for success. As my man Tim the Tool Man Taylor always said...."measure twice, cut once"! Nevermind that was my 8th grade shop teacher. I think Tim's motto was...cut twice oops forgot to measure! Bottom line, look, search, visit twice and then pull the trigger.
3. Pricing: This is simple, buy a home that rents for at least the full PITI payment. Never pay more than 75% of current market value and if you can get the seller to finance your loan, even better. Single unit properties are ok, 2 units are good and 3+ units are great. More income, more security and better equity growth possible. If you cannot find a home or homes that fit this criteria keep searching.
Financing: Once you are financially stable, have found a general area and have a home or homes in mind, it is time to get an agent and Loan man! I do not sell agents or Loan Officer names but maybe I should? Any how, get with your local Loan Officer or banker to get pre-qualified. If you do not have one, email me I am licensed in most states.
Next, visit the area you are buying in (recommended) and you will see plenty of RE signs. Start calling those agents to make appointments and you will find out which one's are lazy, too busy or just think you are a tire kicker and will not help. When you find one that actually calls back or meets you, and they match your personality, have them write an offer.
There are layers and layers of investing vehicles from notes, to second liens to tax liens to dirt to actual Real property, called Real Estate. For those who want to dabble, make a quick buck, do not make much money personally or do not have very good credit, stick to non-real estate investing. The market is on it's ear right now and without assets, good credit and a great job you will not qualify to buy an investment dog house, let alone a real house!
Are you ready: First and foremost, in order to be an investor you must make more money than your debt payments each month. And I am NOT talking about minimum credit card payments, or Interest Only mortgage payments, I am talking about full mortgage payments (taxes and insurance) autos, utilities, food, etc. Also, you need have at least 6 months of total monthly expenses in the bank to even consider investing. On top of those assets you will need to have 10% down payment, in liquid form (no 401k or IRA accounts) for all properties purchased. Last and of course not least, you will need to have good credit. If your credit score is not above a 680, then get into the stock market or notes, etc. The days of 100% financing are gone and you need income, assets and good credit to get into the game. If you do not fit into this category, I will save you time.......ba bye!
Research: OK so now that you have your income, assets and credit in order let's talk about markets. There are still good investment markets in the US making 5% returns on a yearly basis. I believe the US average cycle for RE over a 30 year period is 25% gains, so let's get our money in now. Oh by the way, did I mention we were nearning the bottom of a huge selling cycle, which means over the next 12-18 months those with money are going to go on a buying spree at $.50 on the dollar? This is where you become a millionaire in the Real Estate investing game. Now if I only sold a CD 12 pack for $99 or had my own commercial like Tom Vu. Damn!
1. Areas: Find a market with low unemployment, good job growth, university nearby, and of course a good rental market. Simple, but you would be surprised how many over look this.
2. States: Depending on your budget (10% down rule) there are some states that always provide good investments. CA, FL, NY, WA are always going to have rocking economies and lot's of employees flooding to those states. NC, MO, LA, KS, AL are newly ripe investment areas because of hurricane Katrina. Recent damage, low prices, new construction requirements and a lot of people looking for housing is a recipe for success. As my man Tim the Tool Man Taylor always said...."measure twice, cut once"! Nevermind that was my 8th grade shop teacher. I think Tim's motto was...cut twice oops forgot to measure! Bottom line, look, search, visit twice and then pull the trigger.
3. Pricing: This is simple, buy a home that rents for at least the full PITI payment. Never pay more than 75% of current market value and if you can get the seller to finance your loan, even better. Single unit properties are ok, 2 units are good and 3+ units are great. More income, more security and better equity growth possible. If you cannot find a home or homes that fit this criteria keep searching.
Financing: Once you are financially stable, have found a general area and have a home or homes in mind, it is time to get an agent and Loan man! I do not sell agents or Loan Officer names but maybe I should? Any how, get with your local Loan Officer or banker to get pre-qualified. If you do not have one, email me I am licensed in most states.
Next, visit the area you are buying in (recommended) and you will see plenty of RE signs. Start calling those agents to make appointments and you will find out which one's are lazy, too busy or just think you are a tire kicker and will not help. When you find one that actually calls back or meets you, and they match your personality, have them write an offer.
The link above is for our investment site. These are some of our projects. Email me for any questions or interest!
Good luck and make it a great day!
How to control your 3 year old
I watched a small part of a great episode of super nanny last night and had to write.
My 3 year old is outgoing, active and very very very stubborn. It takes the wife and I 14 tries to get him into the car, to the dinner table, to get his shoes on, etc. He is on his own schedule and we are losing our patience. I am aggressive with him and will spank lightly, yell quietly (if there is such a thing) and of course the wife just blows a gasket. Turns out we are just creating more aggression and stubborness. Here is what to do.
1. Talk quietly: Kids get anxious and aggresive when we do it to them. We are the adults and should not be yelling, not be hitting and especially not be losing our patience. We are supposed to be quielty responding to their frustration or anger, which is supposed to calm them down.
2. Time Out: I am from the era when a good ass whoopin was in order, but I am not sure I believe that anymore. When I am aggressive with my son the only thing it teaches him is to be more mad at me and the world. And second, that it is ok to spank, hit, etc. It took a while but I honestly think my boy is more afraid of the time out or me taking away his favorite toy than anything. So now when he does something bad I sit him on a the steps for a time out.
3. Explain: I am a good communicator, turns out only with clients and friends and family. Three year olds need a good explanation to really get it. They are sponges and curious as to why the door has a handle and why the TV remote is not a phone or play toy and of course why he cannot dance on the counter while I am making breakfast. Explaining in detail the why and why not's of things seems real simple, but try it tomorrow. No raising your voice, no spanking or hitting or grabbing (as I have seen some parents do in public) and just explain it to them. I am seeing a difference already in only 1 full day of me acting like a caring adult and not a pissed off dad!
Make it a great day!
My 3 year old is outgoing, active and very very very stubborn. It takes the wife and I 14 tries to get him into the car, to the dinner table, to get his shoes on, etc. He is on his own schedule and we are losing our patience. I am aggressive with him and will spank lightly, yell quietly (if there is such a thing) and of course the wife just blows a gasket. Turns out we are just creating more aggression and stubborness. Here is what to do.
1. Talk quietly: Kids get anxious and aggresive when we do it to them. We are the adults and should not be yelling, not be hitting and especially not be losing our patience. We are supposed to be quielty responding to their frustration or anger, which is supposed to calm them down.
2. Time Out: I am from the era when a good ass whoopin was in order, but I am not sure I believe that anymore. When I am aggressive with my son the only thing it teaches him is to be more mad at me and the world. And second, that it is ok to spank, hit, etc. It took a while but I honestly think my boy is more afraid of the time out or me taking away his favorite toy than anything. So now when he does something bad I sit him on a the steps for a time out.
3. Explain: I am a good communicator, turns out only with clients and friends and family. Three year olds need a good explanation to really get it. They are sponges and curious as to why the door has a handle and why the TV remote is not a phone or play toy and of course why he cannot dance on the counter while I am making breakfast. Explaining in detail the why and why not's of things seems real simple, but try it tomorrow. No raising your voice, no spanking or hitting or grabbing (as I have seen some parents do in public) and just explain it to them. I am seeing a difference already in only 1 full day of me acting like a caring adult and not a pissed off dad!
Make it a great day!
How to become a better salesman 101
I just spent 2 hours at Starbucks with a buddy listening to him bitch about how bad his new sales job was. Turns out he was making life miserable for himself by not looking at it from an outside perspective. After 20 minutes of some simple coaching he was fired up to get back to work and make a go of it! Got me thinking, I needed to give some free, out of the box advice today.
Successful sales is not about cold calling, superior product knowledge or being a closer, though having these skills helps. The truely successful salesman has three things in his bag that you do not have.
1. Timing: Great salesman have good timing. They are in front of the client when he wants to buy. He is at the golf course when the client wants to talk. He sees the client at a very important function that solidifies his credibility. A buyer will be buying from someone at some time, you need to be there when he does!
2. Non Sales, Sales: Great salesman never act desperate, they never act like your deal is the one that is going to allow them to hit quota and keep their job (which is usually is). And of course, the greatest salesman are never there to "sell" you something. They listen, they ask good questions and if the need arises, they are conveniently there to help fulfil a need. That is the non sales, sale. Do you ever want to do business with the desperate cold caller, who calls on Thursday at 7pm right in the middle of Survivor, asking if you want to change your paper, or long distance or if you want to upgrade your TV service? Neither do I, even if I want to upgrade to HD I am not going to do it with this desperate schmuck.
3. Follow up: This is a simple and often overlooked value. In my Mortgage and Consulting business, I make sure to contact my database every month, or every quarter depending on their current situation. I never ask for business I simply send a follow up card, a birthday card or some market update which let's them know I am here. NOTE: If you contact too much they throw it away, if you contact them only when you need them, you will not close a deal with them. No matter what you sell you need to touch your existing clients, prospective clients and future clients on a regular basis. This creates and then supports rule #1, to be in front of them when they are ready to buy.
I know everyone has to pay their bills and I know at some point, there will be a single desperate sales call that is the only sale that is going to keep you afloat. I know, I have been there. I am there at least once a year. Do not let this thought get into your head, or it seeps out of your pores, into your suit and a client can smell it from a mile away.
Good luck and make it a great day!
Successful sales is not about cold calling, superior product knowledge or being a closer, though having these skills helps. The truely successful salesman has three things in his bag that you do not have.
1. Timing: Great salesman have good timing. They are in front of the client when he wants to buy. He is at the golf course when the client wants to talk. He sees the client at a very important function that solidifies his credibility. A buyer will be buying from someone at some time, you need to be there when he does!
2. Non Sales, Sales: Great salesman never act desperate, they never act like your deal is the one that is going to allow them to hit quota and keep their job (which is usually is). And of course, the greatest salesman are never there to "sell" you something. They listen, they ask good questions and if the need arises, they are conveniently there to help fulfil a need. That is the non sales, sale. Do you ever want to do business with the desperate cold caller, who calls on Thursday at 7pm right in the middle of Survivor, asking if you want to change your paper, or long distance or if you want to upgrade your TV service? Neither do I, even if I want to upgrade to HD I am not going to do it with this desperate schmuck.
3. Follow up: This is a simple and often overlooked value. In my Mortgage and Consulting business, I make sure to contact my database every month, or every quarter depending on their current situation. I never ask for business I simply send a follow up card, a birthday card or some market update which let's them know I am here. NOTE: If you contact too much they throw it away, if you contact them only when you need them, you will not close a deal with them. No matter what you sell you need to touch your existing clients, prospective clients and future clients on a regular basis. This creates and then supports rule #1, to be in front of them when they are ready to buy.
I know everyone has to pay their bills and I know at some point, there will be a single desperate sales call that is the only sale that is going to keep you afloat. I know, I have been there. I am there at least once a year. Do not let this thought get into your head, or it seeps out of your pores, into your suit and a client can smell it from a mile away.
Good luck and make it a great day!
Wednesday, February 6, 2008
Start a Business for dummies Part 1
Who better to give free advice than a failed and then successful businessman and where better to get free advice than the internet and some random blog?
First things first, starting and owning a business is very hard, time consuming and expensive. Do not believe anyone who says it is a easy, it is not easy. However, with some free business 101 coaching for dummies, you can get a feel for what it really entails. If you have the drive and opportunity, make a go at it.
Location: Look in your local market, that creates a sense of community, authenticity and of course low traveling costs in this over priced oil/gas world. Local business men who meet and greet their clients over and over again are more likely to succeed because of repeat business, comfort level and of course ease of vicinity. No one has done it better than Howard Schultz, founder of Starbucks. He was trying to and did succeed in creating a local, comfortable place to grab a cup of joe, hang out and talk shop for hours. If you have not heard of Starbucks, seen 1 or 2 or maybe even 3 on your street or near you, you are from Mars. Now that is what I call a successful business.
What Business: First, make a list of what you love to do and I mean everything, from playing guitar hero 3 to cleaning toilets. There is almost always someone, somewhere in need of what you have to offer. As Dr. Suess said in The Lorax..."A thneed's a fine something that all people need". My 3 year old loves that book. Now, if loving that book were only a career choice my boy would be in great shape.
After that list is complete, look in your local market for competition of those things you love. Ex: making teddy bears like the crazy loon on Nip Tuck. Cleaning toilets, selling soap, fixing Mercedes transmissions. If you are lucky, you might find no competition and a niche market right out of the gate.
Personality: This is last but certainly not least. Do you have the personality traits of a successful person? Notice I did not say entreprenuer, that is not necessarily the key ingredient to success. I have seen plenty of businesses fail because of bad location and no love for the product being sold. Here are the tell tale signs that you can make it. Can you walk up to a stranger at the gas station and say hi? Can you balance your checkbook? Does your checking or savings account have a positive balance? When times are tough on your current job do you quit or find a solution and make it happen? Do you have a supporting spouse? These items matter because when times are tough you need be able to tighten your belt, borrower from yourself, get in front of people to sell yourself or your items, and of course, if your life at home is solid you will have more time to dedicate to running a successful business.
Part 2 will look at Real startup costs and how to finance your dream.
Good luck and make it a great day!
First things first, starting and owning a business is very hard, time consuming and expensive. Do not believe anyone who says it is a easy, it is not easy. However, with some free business 101 coaching for dummies, you can get a feel for what it really entails. If you have the drive and opportunity, make a go at it.
Location: Look in your local market, that creates a sense of community, authenticity and of course low traveling costs in this over priced oil/gas world. Local business men who meet and greet their clients over and over again are more likely to succeed because of repeat business, comfort level and of course ease of vicinity. No one has done it better than Howard Schultz, founder of Starbucks. He was trying to and did succeed in creating a local, comfortable place to grab a cup of joe, hang out and talk shop for hours. If you have not heard of Starbucks, seen 1 or 2 or maybe even 3 on your street or near you, you are from Mars. Now that is what I call a successful business.
What Business: First, make a list of what you love to do and I mean everything, from playing guitar hero 3 to cleaning toilets. There is almost always someone, somewhere in need of what you have to offer. As Dr. Suess said in The Lorax..."A thneed's a fine something that all people need". My 3 year old loves that book. Now, if loving that book were only a career choice my boy would be in great shape.
After that list is complete, look in your local market for competition of those things you love. Ex: making teddy bears like the crazy loon on Nip Tuck. Cleaning toilets, selling soap, fixing Mercedes transmissions. If you are lucky, you might find no competition and a niche market right out of the gate.
Personality: This is last but certainly not least. Do you have the personality traits of a successful person? Notice I did not say entreprenuer, that is not necessarily the key ingredient to success. I have seen plenty of businesses fail because of bad location and no love for the product being sold. Here are the tell tale signs that you can make it. Can you walk up to a stranger at the gas station and say hi? Can you balance your checkbook? Does your checking or savings account have a positive balance? When times are tough on your current job do you quit or find a solution and make it happen? Do you have a supporting spouse? These items matter because when times are tough you need be able to tighten your belt, borrower from yourself, get in front of people to sell yourself or your items, and of course, if your life at home is solid you will have more time to dedicate to running a successful business.
Part 2 will look at Real startup costs and how to finance your dream.
Good luck and make it a great day!
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