Alternative Real Estate Solutions

An online resource for creative real estate in the midwest

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A quality that I’d like my clients to develop is that of resiliency, or tenacity.

I guess what I’m talking about is being tough. Often times we think of being tough as being good in a fight, or hitting someone with a chain or going to the gym and being tough in front of the other people at the gym.

That’s not really what toughness is. Toughness is, the quality of being able to lock on to a goal or end result of a project or a task, and being able to take disappointment, being able to take setbacks or blocks as only temporary and not as final. you see, they only become final, when we shift our attention from that end result to the obstacle, and we give up on the picture.
So the only time you become a looser is when you say the heck with it and give up on the picture.

My question to you might be, are you using your potential? Is there some bit of potential that you’re not utilizing? Probably. Would it be beneficial to grow or expand in that characteristic or quality?

Let’s examine some people. Look at Edison, who invented the filament for the lightbulb. Was he always successful? No, he had over 3000 setbacks or temporary blocks as it is. He was able to keep locked on to the outcome and eventually reach his goal. Look at Lincoln, he lost more times than he won. He lost his mom, his sweetheart, had a nervous breakdown, and lost his congress run 4 times, then was elected for president. He never gave up. Then there was a guy by the name of Ty Cobb, who set the record for stolen bases. In the same year, he broke a record for being thrown out for doing the same thing. See he had a record failure the same year.

If it was easy, what you were doing, everyone would be doing it. So already you have a measure of tenacity.

This is a quality you want to develop inside of yourself. How many Nos can you take? How easily are you intimated by the seller?

How do we grow this quality? Next time, however, I’ll give you a hint. You can develop that quality of tenacity inside of you. You can anticipate what setbacks might come, and what you need to do is build the ingredient of resiliency inside of you. How do you do this? Ask me sometime and I’ll show you, but it’s quite easy. In fact, change is easy if you know how. I want you to begin to see things as opportunities, so you can go after the goals that are vitally important to you.

This video is from my a fellow real estate investor friend Nick Cifonie, of www.REI-TV.com where he talks about the resiliency and tenacity of a real estate investor.  I like Nick b/c he’s got some great enthusiasm which is one of the keys to selling.   His simple approach is easy to follow for the new investor. 

I’ll tell you exactly what this bailout means for us as investors.

Think of the bank’s books in terms of a balance sheet. They have assets on the left (notes or mortgages they hold) and liabilities on the right (deposits that they’ve borrowed from you and me). So, if a note goes in to default or gets written down in value, and the liabilities stay the same, the bank has just lost value in their balance sheet. stink - huh? Well, then the government in their wisdom steps in and says, “we’ll protect those mortgages so you don’t have to write them down”. So great, but the banks still don’t have any money to lend. So the government again sticks their nose in to it and says “here’s so money”, but the banks are scared to lend. They’re happy to have the money, so they can pay the light bill, but they aren’t lending anymore than they were last month. This bailout is only going to delay the recovery of the housing market. It’s not going to do a thing for us the investor. it may help the retail buyer here and there, and it’ll help our tenants by easing up on the credit card crunch; however, it’s not going to do a thing to us investors. Banks are still reluctant to make loans. Then, what is making matters worse, is the short sale market has also dried right up. Has anyone who listens to this blog had a short sale approved since the 2nd week in October? The banks are not giving discounts b/c they just got their Christmas Bonus from Uncle Sam.

We need to take a wait and see attitude toward this economy. There are still fundamentals right now that will work in the Creative Real Estate world; however, if you’re unaware of the fundamentals that I pound the drum upon, then you’d better just go back to Piper Jaffray or Target Corp. or Accenture b/c you’ve not learned the lessons of 2007 yet. Debt is bad, get rid of it. Any loan that’s indexed should also go the way of the buffalo. If you do not heed my advice, you will go down. you will go down to china town. Get rid of those properties with indexed loans (or loan mod them to fixed rate loans) quickly.

more later.

p.s. I shwacked some phesants this weekend with my family and my dogs.  it was a great time.  See photos on my facebook page. 

p.s.s. if you’d like to sell your home quickly and easily for a fair price, please visit our website at http://LakesAreaHomeBuyers.com