Rich Dad Education – Real Estate Blog

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We’ve got a shiny new blog!

Come visit our new blog at www.richdadeducationblog.com

Come visit our new blog at http://www.richdadeducationblog.com

 

Hello loyal readers,

Rich Dad Education is happy to announce that we have a brand new blog! We have redesigned our old blog and given it a new home at http://www.richdadeducationblog.com. Now, you can find all of our content on one convenient blog site that’s easy on the eyes.

In order to stay up-to-date with our weekly posts containing the best real estate investing, stock, and motivational convent, be sure to follow us at the new blog. After you take a look, send us a Tweet (@richdadedu) and let us know what you think about the new design!

Overcoming Fear of Failure

Fear into actionFear of failure is one of the heaviest weights that often hold us back from success. This common and powerful condition is closely related to fear of criticism and fear of rejection. Truly successful people must find ways to overcome their fear of failure. That doesn’t mean this potentially paralyzing set of fears goes away. It simply means that to obtain ones goals, we must learn to move forward in spite of those fears…

The Law of Feedback states: there is no failure; there is only feedback. All information can be applied to success. Successful people look at mistakes as outcomes or results, not as failure. Unsuccessful people look at mistakes as permanent and personal.

Buckminster Fuller wrote, “Whatever humans have learned had to be learned as a consequence only of trial and error experience. Humans have learned only through their mistakes.”

Many people self-limit. They get in their own way sabotaging potential success BEFORE they’ve even tried… It’s important to realize that in everything we do, there’s always a chance that we’ll fail. Facing that chance, and embracing it, is not only courageous – it also gives us a fuller, more rewarding life.

So let’s explore a few ways to handle those fears and move toward success….

Analyze all potential outcomes – Many people experience fear of failure because they fear the unknown. Remove that fear by considering all of the potential outcomes of your decision. You might use an approach called “Mind Mapping” (google it) to help with your considerations..

Learn to think more positively – Positive thinking is an incredibly powerful way to build self-confidence and neutralize self-sabotage. There is a lot of new research that shows a positive focus and attitude can not only help us be successful, but actually can affect us on a biochemical level, helping us stay healthy AND happy.

Look at the worse-case scenario – In some cases, the worst case scenario may be genuinely disastrous, and it may be perfectly rational to fear failure. In other cases, however, this worst case may actually not be that bad, and recognizing this can help. This may seem counter to the “positive thinking” approach but actually is a way to stay prepared and “try on the shoes” of failure to reduce the anxiety of that potential.

Have a contingency plan – If you’re afraid of failing at something, having a “Plan B” in place can help you feel more confident about moving forward. In real estate we talk about “exit strategies”. We always want to have several possible exit strategies so we can change and adapt as each situation dictates. Feeling locked in to only one approach is what leads to feelings of helplessness and ultimately failure.

Dodd-Frank

dodd frankI’ve mentioned this before, but I have to say it again; one of the amazing things about being involved with the Rich Dad Education organization is that I get to rub elbows with some remarkably talented and caring people. One of them reached out to me last week. Her name is Kathryn Butler and like me she occasionally takes time off from her busy investment business to teach others to do what she does. Kathryn asked me if I was up to date on the parts of the Dodd-Frank law that came into effect this month on January 10. I had almost no idea of what she was talking about. I did know that the Dodd–Frank Wall Street Reform and Consumer Protection Act had been signed into federal law by President Obama in the summer of 2010. But, like the health care law, Dodd-Frank had seen so much political kickback after it was signed that I was sure that Congress would find a way to cancel or seriously modify the law before now. So, I put the whole thing out of my mind … until Kathryn contacted me.

In a nutshell, the law is trying to prevent the type of financial crisis that this country experienced a few years ago. But, the truth is that the law has made significant changes in the country’s financial regulatory systems that affect all federal financial regulatory agencies and just about anything that is a part of the financial industry … including real estate investors.

For instance, if you are going to ever get another real estate loan, create any type of real estate loan (such as seller-financing), or buy/sell/trade real estate loans, then you need to understand this law. Unfortunately, I’ve seen a lot of misinformation on the internet regarding Dodd-Frank. And most attorneys are still trying to get their hands around how this law is going to be implemented and overseen. So, make sure you talk to a good real estate attorney who specializes in working with real estate investors. And, don’t be surprised if your attorney replies, “I don’t know.” to most of your questions. Because what is written in the law is one thing … how the government will choose to follow it is something completely different. In fact, back in 2010 Sen. Christopher Dodd, one of the law’s authors, famously said, “”No one will know until this is actually in place how it works.”

Additional Comments by Keith Gensor
Director of Education & Student Development

Being a successful Real Estate Investor is simple but hard. There are four primary steps that an REI must do again and again.
1. Marketing – you have to get your phone to ring (or you can make outbound calls); but you always have to be marketing, generating leads, letting people know what it is that you do and how you can help them.

2. Analyze Deals – you must be capable to analyze a deal over the phone, and if it has potential, visit the property to visually inspect it and complete your due diligence to determine if it is worth pursuing as a good deal.

3. Make a presentation and get the property under contract – this is the crux of real estate investing; and when we say that it is a “people business”; you have to get out, get in front of people, develop a rapport, make sure they know that you are the solution to their problems, and make an offer on the property (aka get a signed contract).

4. Finally, run the final numbers to determine if this particular property does indeed fit your criteria and get the contract & property to closing.

Rinse & repeat. Do this again & again. In fact, this simple outline of what it takes to be a successful real estate investor is what you will concentrate on for the life of your Real Estate investing career..

Oh yeah! There’s one more step that needs to be completed when you first being your career in real estate investing: create a Power Team. This can be overwhelming when you are new as there are so many things that need to be completed, so much to learn, so many people to meet & speak with, that you seem to run out of hours in a day.

However, you must ensure that you have competent professionals that you like & trust on your Power Team. Because once you have picked a Power Team you pretty much can leave it is as is.

You should have a Realtor, a mortgage broker, home inspector, accountant, title person, appraiser, & so forth. But one of the most important is a very good real estate attorney who is well-versed in real estate law and contracts too.

For the most part your Power Team is hand-picked by you for their skills & expertise, and from there you operate under the “Aces in their places” mentality. Which means you let those who are the best at their job, do their job. It is important to know a little bit about everything, but you do not have to be the expert in those particular fields where you are relying on your power team, particularly real estate law.

If you’re not an attorney, don’t pretend to be one, and don’t study to become one. Focus on being a real estate investor, acting & playing the part, and have a little common knowledge, but be sure that your attorney is up-to-date on the Dodd-Frank Act and how it directly affects your investing goals. Specifically, what can and what can’t you do? Leave that to the experts. And then work within those boundaries.

Your job is to do steps 1 – 4 again & again until you have momentum, a pipeline, and a system. Free up your time by delegating those specialty areas to your power team, particularly those in real estate law.

Get going & get investing!

Happy New Year and here’s to 2014 being the best year for you yet.

successAs an entrepreneur you are responsible for your own fate. In other words, you design your own life, piece by piece, day by day, week by week, until you have built your life, and ultimately your legacy.

Each & every day you get to determine how happy you want to be, how productive you are going to be, how successful you are going to be, and so on…

You see, you are not a victim of circumstances, instead you create your own circumstances. You are responsible for everything that happens to you. (If you don’t believe that right now, then realize that you are responsible for how you react to everything that happens to you and we can start from there.) This is called being proactive, in other words, making a choice.

And when you are fully aware that you are responsible for everything that happens to you, for everything that you do, for everything that you attract & manifest into your life, then you will realize the enormous power that you wield coupled with your ability to achieve it – then, and only then, will you get anything & everything that you want.

So how do you go about achieving this? First you need to determine what it is you really, really want. Who do you want to be? What do you want to do? What do you want to have? Now, you can make this list out with tangibles or intangibles, nouns or adjectives, but this is going to be your endgame – what it is you really want out of life. From there, you have to come up with a plan, what it is that you need to do annually, monthly, weekly, and eventually daily to ensure that you are doing exactly what you need to in order to get exactly what you want to.

I’m sure you’ve heard the expression: the whole is greater than the sum of its parts. This applies to your life as well. The small things you constantly do on a consistent basis over time is what will lead you to the life of your design, but more importantly to the legacy that you truly want to leave behind.

In order to BE successful, you have to ACT successful. You have to do exactly what successful people do. Find someone who is successful and model them. In simple terms, do more of what works and less of what ins’t working. Simple? Yes. Easy? No. Why? Because it requires re-programming yourself from years of conditioning, years of schooling, of media messaging that being average is great. Well, being average is not great; it is OK. That’s all it is. If you want to be average, than surround yourself with average people and model them. If you want to be wildly successful, than surround yourself with wildly successful people and model them. Find someone who will mentor you. Build a network and a Mastermind. Come to our Rich Dad Education Symposiums and surround yourself with other Investors who are successful.

Remember, you are in control of your own life. You need to determine what exactly you want in this life and your legacy that you leave behind for others (tangible & intangible, wealth or debts, will the world have been a better pace for you having lived on it?) Then you need to do the things that will get you there – consistently & constantly over time. You need goals, you need habits, you need routines, you need support, you need accountability, you need knowledge, and you need a network of people who support you and who will share in your successes.

You will find all of this at Rich Dad Education. Begin 2014 right and make this the best year of your life. Determine who & what you want to be this year and map out a strategy to go forth and get it. You have an entire network of supportive Trainers, Mentors, Elite training Advisors, & fellow Students who are willing & able to help you. It is up to you to apply yourself.

Have a great 2014! We look forward to working together with you as you make this your best, most productive, & successful year ever.

Thanks!

Keith Gensor

Real Estate Success Series: Getting and Keeping an Advantage in Your Investing Business

Perserverence

One of the greatest sports movies is Hoosiers. If you haven’t seen the movie, it is the story of a small-town high school basketball team and how it won the state championship as the ultimate underdogs. It’s a great motivational movie with a wonderful message. And there is a quote from the movie that you would do well to remember. Here is that quote from the team’s basketball coach named Norman Dale, played by Gene Hackman:

“You know, in the ten years that I coached, I never met anybody who wanted to win as badly as I did. I’d do anything I had to do to increase my advantage.”

And that quote is really the whole purpose of this article… getting an advantage and keeping it.

This is a very timely article. As the holiday season comes upon us, this is the time that many investors relax and take it easy. They think that no one is buying or selling during this time, so they put no thought into their business. They simply do what everyone else does, which is exactly why you hear them say things like, “The holidays are a slow time for me,” or “I have never done any deals in December.”

Maybe those statements have more to do with the way they run their personal business rather than market conditions. We know investors who do more deals during these months than other times during the year simply because they expect it and run their business that way! By doing a reality check we can help you get an advantage over the competition.

Let’s review a series of questions to put things in their proper perspective:

Do people buy and sell homes during the holidays? YES! You may know someone planning to buy their first home or upgrade their home as a gift for Christmas.

The truth is that people are always buying and selling and it has nothing to do with market conditions. People are always being relocated due to their job or the military regardless of the time of year. There are always families that moved because they want their children to be in a better school district and have a better education. People pass away and the heirs sell their home to settle debts. People are unemployed and face foreclosure regardless of the time of year.

See, the truth is that there is always buying and selling going on regardless of the time of year or market conditions. When you understand this truth, your mind will be ready to capitalize on the opportunities that are in front of you.

Are there still investing opportunities at this time of year? YES! In fact, when you consider things from a proper perspective, there are actually more deals per investor this time of year. Since most investors are inactive during the holidays, there are actually more deals out there for those who are active and keep working.

Even though the total number of deals out there may go down during the holidays, so do the number of people seeking those deals! The whole point is that you can leverage your time to make the most of it when others are not working on their business.

Why do most investors slow down at this time of year? It is the same reason why most people don’t work much during the holidays. They are busy preparing for work parties, buying presents, going to festivities, etc. Sure, it is a busy time of year, however you can stay as busy as you want.

The reason why this is such an advantage for you is that you have so much less competition because of the holidays. They are busy taking time off to do what everyone else is doing. One of the easiest ways to have an advantage over your competition is to do the opposite of what they are doing. At this time when your competition is not advertising, not making offers, not networking, is the time for you to do even more of it!

People still need to buy and sell and you can capitalize on this opportunity by keeping your marketing going, by talking with people, and by making offers. When you do what others are not willing to do, you will get results that others do not get.

Now, you might be saying, “Well, I am busy with my own parties, presents, and other obligations too.” We aren’t suggesting that you not do those things. We are saying that you keep your business moving forward. There is no reason for it to come to a screeching halt.

At the very least, take some time to put together a plan for the following year. You can make more plans to expand your business into other markets, try different methods of advertising, approach partners that may become funders for your deals, or grow into new areas of the market.

The absolute worst thing you can do during the holidays is to do nothing to move your business forward. Everyone loves the freedom that being an entrepreneur provides, but you must also pay the price to make your business successful. Remember, we are after creating an advantage for your investing business. When you do what everyone else does, you have no advantage. In fact, the easiest way to create an advantage in any business is to do the opposite of what everyone else is doing. You can work smarter without working harder.

Remember that the whole focus of this article is to create an advantage for you over your competition. Take this time to reflect on what you can do to put yourself in a different category than your competition. Do you need to find more funding sources? Network for more opportunities? Learn new strategies? Focus on creating your advantage. Your business will prosper from it as a result.

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