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Washington D.C. in the fall
Greetings from Washington, DC. One of my favorite cities…..if not my favorite city. I’d have to think about it.
As funny or odd as this may sound, Washington D.C. is a very romantic city. There are so many positive emotions that bubble up that I think the word “romantic” is fitting. But…not a place for a honeymoon….but then…what do I know.
Today….We spent a lot of time at the Smithsonian Art Museum. Just amazing. I have never been more captivated by art. Living in New Mexico….the art galleries are endless…from Santa Fe to Taos. Walking from art gallery to art gallary in New Mexico is great….but nothing like here in D.C.
So…as we made our way through all the exhibits at the Smithsonian….one painting captivated me….Repose by John Singer Sargent. A girl….lounging on a couch. You can tell this lady is deep in thought….possibly sad. I wondered for a long while what was she sad about?…what was she thinking about? I came up with my on conclusion….but I digress.
Repose by John Singer Sargent
Anyway….
Getting caught up in all the amazing emotions touring D.C. reminded me of how dangerous emotions really are. We all are familiar with emotions when it comes to relationships. The old saying “love is blind” is a great example. Well…guess what, emotions are dangerous in business as well.
I remember as a “newbie” investor how wrapped up I would get in a deal…..to the point where blindness would set in. Getting emotional over a deal is a great way to cloud your vision. All of a sudden you are compromising….or worse….justifying.
Think of it in terms of personal relationship. Before you start dating someone, you have criteria….then all of a sudden you fall in love and the criteria goes out the window…all in the name of “love.” All of a sudden the things that you would not compromise on become “cute” or “no big deal.”
Well…in a personal relationship….the relationship ends in heartbreak. But in business….the results could be financially devastating.
So….
Here are a few ways to avoid getting emotionally involved in a real estate deal.
1) “Fall in love with the numbers first.” This is probably the most crucial tip. Focus on the numbers first! Knowing how to analyze a deal and understanding the numbers is crucial. Letting the numbers dictate your next action is a great rule of thumb.
2) Use the facts. Real numbers should be your focus. Proforma numbers are “hopeful” numbers. Never use proforma numbers in your initial analysis. Yes…proforma numbers have their place in the big picture of things….but not when you are trying to understand the asset. Proforma numbers only help you fall in love with the property…which is a bad move. By the way…come up with your own proforma numbers. Never…ever…ever use a real esate agents or seller’s proforma numbers.
3) Try not to visit the property until you have fallen in love with the numbers. You may be tempted to go visit the property….but…this may only impact you emotionally.
4) Have someone else look at the numbers too! Having a third party look at the financials will give you a different perspective as well as help you stay focused on the numbers.
5) Write down your investing criteria and stick to it. In other words, write your plan…work your plan!
Of course…there is a lot more to this but the tips above should give you good start in the right direction.
Until next time…..rob
Hello from the infamous Mosquito Festival in El Paso, TX.
I am visiting family and losing weight in El Paso, TX.
Now…there is the Atkins diet, the South Beach diet, etc….Well, in El Paso…they have the Mosquito diet. In West, TX….they have scientifically bred a "weight loss" mosquito. It is able to suck one gallon of blood in ten seconds. No kidding….it is not free for locals…BUT it is free for visitors! Property taxes in El Paso are the highest in the state…but the benefits of these taxes is the creation and distribution of the amazing weight loss mosquito. Yes…they breed these mosquitoes on purpose. I have lost fifty pounds in 2 hours….AND…even if you did not want to lose weight….it does not matter….these amazing mosquitoes are bigger than small dogs…. so you cannot fight them. But do not worry…these mosquitoes, by state law, are required to get tested for diseases and stuff….so you are safe…and slim.
Book Review: Red Letters: Living a Faith that Bleed
I read Davis’ first book, Fields of the Fatherless, earlier this year and it made me revisit my priorities; and it changed my perspective regarding the world I live in…the community I live in. Davis’ heart for orphans is undeniable. Davis’ vision for caring for orphans is the foundation of the Children’s Hopechest ( www.hopechest.org) organization in which Tom Davis is President.
In Red Letters, Davis pulls out all the stops and calls on the Christian church, Americans, me..and you to stop ignoring, start talking, and take action. Davis makes a convincing argument for us to stop acting like HIV/AIDS is not "our" problem.
I was shocked when I read the following statement….."Six and a half thousand Africans are still dying every day of preventable, treatable disease for lack of drugs we [Americans] can by at any drug store."
"Preventable"….."Treatable"
There are several stories in Red Letters that are heart breaking as well as shocking….but yet, as Davis points out, we choose to be deaf, dumb, and blind to what is happening in Africa, what is happening to the world. Even, as Bono of the famed U2 brings attention to the horror of HIV/AIDS….we continue to live in the "me" world.
Davis sums up Red Letters, in my opinion, with this statement…."This is not about charity: This is about Justice and Equality." Davis drives his point home…."We" are letting the "injustice" happen. I am not sure I agree with the usage of the word "justice," but Davis brings attention to what is happening in Africa. The question is "how numb are we?" Is it because it is surreal?
I love the statement in the book that is a Wealth Lifeline (TM) core value…"Building walls around our possessions and our lives leads to selfishness and hardened hearts." This is so true and so obvious….but the world’s view of wealth encourages this.
The Wealth Lifeline (TM) definition of "wealth" is "To love and be loved." Yet….we focus on being loved by doing all the wrong things…."buy building walls around our possessions…." When we do this…it is impossible to love….and impossible to come close to see the world through Christ’s eyes.
Tom Davis’ Red Letters will shock you into reality, if you let it…..the question is….will "we" do anything about it?
Until next time……rob
Hello
from Cedar Crest, NM. I am finally home and I have a week or so before
I am off again. I really need to get this travel thing under control…My
wife, Leta, is starting to wonder about me…since my whole intent of
being an entrepreneur in the first place was/is to spend more time with
la familia!
My adventures in this month of March take me to San
Francisco, CA. I will be attending Teen Mania’s Battle Cry
(www.battlecry.com) event. Then I am off to speak at a Mentor
Financials event Ultimate Investors Bootcamp (http://www.resultsnow.com/)
in Denver, CO. I am really looking forward to these events….but I
hate being away from my family….oh the conundrum….embrace the power of
“AND”?
I just had an amazing February…..it was unreal…..It
started off somewhere….I cannot remember where….and ended in an
orphanage in Juarez, Mexico.
Also in February….Grassland had its
inaugural seminar….The Wealth Breakthrough Weekend. It went so well.
This event was a result of a team’s vision…and putting action behind
it. The 360° Freedom Formula was introduced and Grasslands Investments,
in reality, was introduced to the public as well.
I am proud of
my partners….WOW…..But I have to tell you Emily Cressey
(www.emilycressey.com) pulled it off….and NO…SHE IS NOT FOR HIRE for
organizing events…but if you would like for her to speak at your
event….check her out at her website…www.EmilyCressey.com.
Deal Finding…..
Whatever
investing conference I am at…the question that comes up more often than
not is…”How do I find the deal?” Unfortunately there is not a short
answer to this…..because of course…I have ADD (Attention Deficit
Disorder) which leads to tangents and whatnots…and of course…stories…..
When
I first started trying to make the transition from residential
investing to commercial real estate…..I was trying to figure out the
best way to find the deals….or find any deal for that matter. I
remember like it was yesterday when I started looking for apartments
and my “commercial” bandit signs and newspaper ads were not giving me
any leads (chances of finding a large multi-unit with a newspaper ad is
slim..not impossible but slim). So I called the agent who sold me my
house (yes…good move right?…please do not judge me on my
ignorance…obviously you would never do such a thing and you cannot
learn from my experience) ….she said “sure…no problem….I can help.”
Well…the way she helped was by printing off ALL the multi-unit listing
off the MLS and dropping them off at my front door…..NO THANKS! But I
do appreciate the door to door service and the lovely refrigerator
calendar magnet.
Why do you think getting a “print off” from the MLS was not helpful” Well….glad you asked:
1) Quick Analysis
- Bulk MLS listings take a lot of time to go through…the one thing I
did not know how to do was quickly analyze deals and decide if the deal
was a “deal” or “dog.” Being able to quickly analyze deals will save
you tons of time and get you to your deal quicker.
2) Acquisition Criteria
- I did not give the agent my criteria of what I was looking for…so I
got listings on duplexes, triplexes…and a few restaurants as well as a
few hundred unit buildings. If I had been specific about what I
wanted…I may have gotten listings closer to what I was looking for.
3) Avoid the MLS?
In my experience…the MLS for commercial property is like rummaging
through the bargain bin on the last day of the sale. Clearly…the “early
bird gets the worm.” There is a way to get the early listings…and we
will discuss in the next blog. Better yet….how can you position
yourself to receive “pocket listings”?
Well …I need to make one thing clear….there is a big difference between finding the deal and attracting the deal.
I
strongly believe…your success in acquiring commercial property in the
long run is by attracting deals vs. finding deals. In the next few
blogs I will reveal how to find deals when starting off our commercial
investing….but I will also explain you how to start having the deals
find you!
This week’s Wealth Lifelines:
I met amazing people at the Wealth Breakthough Weekend…..(or in the area)
Tracy Markum (http://www.lifeinfusion.tv) The man is built like a Mack truck but has a HUGE heart for changing lives. He is a member of the Impact Team (http://www.team-impact.com/)
and also has a land development company in Oklahoma City with his
partner Jason Klontz (another very amazing guy). The company is called
Markum/Klontz (http://www.markumklontz.com/)
. The only problem with these guys is that they are Oklahoma
Sooners….but…let us all accept them for their hearts. We are all guilty
of making bad decisions in our lives….can I hear an AMEN?
Wes Roberts (http://www.leadershipdesigngroup.org/). I met Wes in Denver….he is the mentor to my leadership mentor (Tom Davis – http://www.cthomasdavis.com/)
. Wow….it is like meeting Luke Skywalker’s mentor…Yoda….but Wes is much
better looking. You can catch up with Wes on his blog (http://wesroberts.typepad.com/wes/). Wes has a peace about him that only God can bestow….God is all over this man….
Wealth Lifelines ™: Part Deux
Hello from snowy Cedar Crest, NM……
February
is already a crazy month for me…..I just got back from a seminar in Las
Vegas that was just incredible…..(more about that in a moment). Now I
am packing my bags to hang out with Leta and the kids at Disneyland.
After that….I am off to Denver for the Wealth Breakthrough Weekend where I get to teach and hangout with the star-studded cast of Grasslands as well as with the attendees.…then I stay in Denver for a meeting with members of Teen Mania….another
amazing group of individuals with the energy and passion that can only
come from above! THEN…My family and I are off to Juarez, Mexico with Estrellas Para Ninos (www.estrellasparaninos.com) to hang out and work at the orphanages….and mind you …this is just February.
Now…what was so great about Vegas….?
Well…I
am not a fan of Vegas at all….Although…there was a time in my life
where I liked Vegas. Other than the location….the event was solid….but
the event is not what made it amazing per se… ….it was hanging out with
friends and meeting some incredible people. My Wealth Lifelines ™
exploded at the event. I practiced what I preach (at least at this
event I did)….and WOW….the people that came into my life are nothing
but brilliant. Not only brilliant….but sooo humble and
approachable…..how many people have you met that are brilliant and
approachable? Not many: Well…let’s open up that can….…what about the
people that are not brilliant and unapproachable….but we will leave
that for another blog.
Attention Deficit Disorder Moment #34
What
is it with the Las Vegas commercials….you know…the “what happens here,
stays here.” Wow…at first they are darn funny…but then…all of a
sudden…I say…yikes….that is not funny ….that is darn scary. For
instance… the one about the lawn care guy that collects for his
services from the homeowner…and says…”that will be $75” …and the home
owner says…”it is usually $35”…then the lawn care guy states…(my
rendition of course)…”dude…I saw you in Vegas…and you were having a lot
more fun than I was.” The homeowner goes ahead and pays $75 and
says….”great job on the lawn.” That is hilarious….BUT…what is it saying
about us? Is it simple humor, or is there truth in the joke?
“What happens here, stays here”…..does it really?
Back to the blog….
Granted
there are a lot of people at the event…and I could have stayed in my
circle of friends…and that, in itself, would have made the event worth
it….but I got out of my comfort zone and made friends….friends for
life….
Let me give you a few examples…..
I met Tom
(www.cthomasdavis.com) at the event through my awesome friend
Jeremy….we had lunch….and talked about missions and orphanages….come to
find out he is a leadership guru, has a soft heart for missions and
orphanages, and he is the author of Fields of the Fatherless
(great book that I read in one day). Since then we have become friends
and through Teen Mania…I am getting leadership training from him.
Now….would this have happened if I sat on the couch and not gone?
Better yet….would that have happened if I stayed to myself and not met
Jeremy in Maui?
I also met Brian
(www.purposegroup.com)….holy smokes….I feel like I have known this dude
forever….again…through Jeremy….I met Brian at the event. A specialist
at taking products and services to the market place….now…tell me….who
does not need a product development specialist on their team…tell me? I
know Grasslands does!
One more….Jeff ….(http://www.yeildunderground.com/).
Another Jeremy connection….Jeff is co-founder of Abercrombie and
Fitch…now the co-founder of Yield…a clothing company with a purpose.
Jeff has an amazing heart for children…..starving children. Now…how big
is his heart? Every pair of jeans he sells feeds a starving child for
three months….by the way…the clothes are cool…
Now….there is a
common denominator here….did you catch it? Yes…a dude named Jeremy
…aka….the “people pot” also know as the “human hub.”
Now….Jeremy
is a Wealth Lifeline for me…not only are we friends….but a partner in
the business of life. We talk and we talk a lot. We talk about
everything…It is a give give relationship. When I met Jeremy….I felt
like I won the “people” lottery….now my next question for Jeremy
is….Dude…do you know Batman? My son Jaxon loves Batman.
I often
write that Wealth Lifelines™ are the cornerstone to your personal and
business success. I used to hear and think it was knowledge…then I
thought and I also heard, it was the ability to negotiate…then
something else….BUT….the key variable for wealth in all areas…whether
it is spiritual…business…personal…etc….RELATIONSHIPS. Deep meaningful
relationships (Wealth Lifelines ™) in a holistic view…is the key to
success in every part of your life. Of course it is not the “end all”
but it is a huge part.
I will be teaching the Wealth Lifeline ™ approach at the Wealth Breakthrough Weekend….hope to see you there……
Until next time….rob
