Hello! David J here again bringing you more of the steps on my journey toward financial independence.
As I write this, I'm listening to one of the many webinars that have come my way since I started looking into flipping short sales and REOs as a way of making money outside of the IT industry.
A key piece of information for short-salers just came my way by way of today's webinar. This is of importance to people who use an option contract to obtain equitable interest in a property and then get permission to re-list that property on the MLS.
Apparently, the MLS boards are taking action against this strategy and requiring that listings be placed ONLY on behalf of the owner of record. Some areas have already implemented this restriction. Other areas may be considering it.
If this restriction has already been emplaced in your area, you've probably already developed alternate methods of marketing your flips to potential sellers.
If your area has not yet emplaced this restriction, hook up with your local MLS board and find out if this is being contemplated. If you can, lobby against it. It is well intentioned, but misguided. It serves the interests of the agents and not necessarily the interests of the seller facing foreclosure and wishing to "save" their credit.
A better way to protect the interests of the agents is to partner with them on your short sale and REO deals. Remember to emphasize that the transaction represents an opportunity for them get TWO commissions: one on your purchase (the short sale), another when you sell (the flip).
As we have discussed elsewhere, having a mortgage loan settlement on one's credit record is much less "damaging" than a foreclosure. Contact your accountant and attorney for full information, as always. This blog is NOT intended to offer legal or financial advice.
In order to "save" a distressed seller's credit, "time is of the essence", as is written in many real estate purchase offer forms. Investors especially like and have the resources to move very quickly and get short sales approved by the lenders and get the property resold to an end buyer (the "B->C" closing, often the same day as the "A->B" closing).
Loss mitigation and short sale negotiation is a complicated and rather involved process. A segment of the investor community focuses in this area for that reason. Most end-buyers are not experts at negotiating with lenders and their loss mitigation people. Most of them don't want to be. Allowing short salers to intervene provides a service to both the sellers facing foreclosure and the end-buyers looking for quick and easy purchases.
Yes, short salers do take a profit in the "A->B->C" process. This is only fair so they get paid for the service they provide: clearing the short sale hurdles enabling the seller to move on with their life and "save" their credit, and enabling the end buyer to acquire the property with a minimum of paperwork, effort and fuss.
Allowing properties to be listed in the MLS by people holding an equitable interest protects not only the real estate agents but the "A" seller as well since it ensures a larger field of potential end buyers (the "C" people).
Let me also repeat something you may have read elsewhere: marketing your short sale business as "credit rescue", "foreclosure rescue" or anything like it is asking for trouble! This brings you squarely into the sights of the investigators and the enforcement people. Stick with the "quick sale", "quick/cash buyer", "cash for your home", and such on your websites and bandit signs.
Also: make sure you emphasize that you accept NO CASH UP FRONT FROM THE SELLER ("A")! This goes a long way toward keeping you clear of state laws and other regulations prohibiting up front fees for services that hold no guarantee of results (which is often considered fraud).
We'll talk again soon!
Take care - be well!
Much Success!
Tuesday, December 29, 2009
Saturday, December 26, 2009
Making Good Decisions
Hello! David J here again bringing you more of the steps on my journey toward financial independence.
A bit of wisdom came my way recently. I feel it is important that everyone understand this properly: one of the differences between successful people and others is the way they make decisions.
It is said that successful people make decisions quickly, and change those decisions only very slowly. By contrast, less than successful people make decisions only after a lot of hemming and hawing (intentional reference to "Who Moved My Cheese?"), and can easily be swayed from that decision.
That's really only partly true.
Some folks DO make decisions relatively quickly. They may stop and think for a moment, consider it over a lunch break, sleep on it, etc. but in the end the decision is made within a day or so. Typically, this occurs when deciding on what actions to take, if any, in regard to something about which the person has knowledge, or something with which the person has past or repeated experience. That is, they know what to do and how to do it, they only need to weigh the decision and consider whether doing it is advantageous given their immediate circumstance.
Now, some folks will cite this quote in trying to get you to do something you may not be prepared to do, like spend a bunch of money on a seminar or home study course when that really might not be a sound financial decision for you at the time.
UNDERSTAND: The person pushing you has a private agenda! They want your money. Whether or not the decision is sound for you likely does not enter into the scenario from their point of view. They came to that moment for sole purpose of selling their product.
Jarom Adair has this on his website: the wealthy appear to make decisions quickly and then staunchly maintain their chosen direction.
However, as we just discussed, this is an appearance only. When any person has the knowledge and experience to reach a decision quickly regarding any given scenario, it is exactly because of their knowledge and experience that they are able to quickly get past the "FUD" (Fear, Uncertainty and Doubt) and move on to the decision making process without much debate. They already know what must be done. They've done it before and they understand the risks and benefits of acting or not acting, as the case may be.
When someone is pushing you to make a decision where you're obviously experiencing discomfort about it, they are very likely to pull this "gem" out of their bag of tricks in an effort to appeal to your desire for success in the face of "FUD". That is, they turn your own apprehension against you.
True, it is all just part of the selling process.
Remember to recognize that it *IS* all just part of the selling process, and you'll be able to arm yourself against it. Especially when it comes to real estate investing, seminars and home study courses: you're standing on the threshold, about to enter a realm where you may only have limited knowledge and understanding. This can work against you, and the sales people are trained to exploit that about you.
To truly be like a successful person - and, ultimately become the successful person we all want to be - make decisions in your OWN time for your OWN reasons.
Some decisions become routine, and those we will learn to make "quickly", perhaps even as quickly as whether to turn right or left at a given intersection, based on where we wish to go. Others we must first study so that when the need for a decision arises we can make an educated choice, even if we've little or no experience from which to draw confidence.
In my earlier post, So Many Gurus, So Little Cash, my advice is to listen to as many free webinars as you can find and sign up for. I'll expand on that to add a recommendation to soak up all of the free information you can find, and there's lots of it to be found with a bit of searching on "the web".
This will at least arm you with some knowledge and allow you to make a better decision.
We'll talk again soon!
Take care - be well!
Much Success!
A bit of wisdom came my way recently. I feel it is important that everyone understand this properly: one of the differences between successful people and others is the way they make decisions.
It is said that successful people make decisions quickly, and change those decisions only very slowly. By contrast, less than successful people make decisions only after a lot of hemming and hawing (intentional reference to "Who Moved My Cheese?"), and can easily be swayed from that decision.
That's really only partly true.
Some folks DO make decisions relatively quickly. They may stop and think for a moment, consider it over a lunch break, sleep on it, etc. but in the end the decision is made within a day or so. Typically, this occurs when deciding on what actions to take, if any, in regard to something about which the person has knowledge, or something with which the person has past or repeated experience. That is, they know what to do and how to do it, they only need to weigh the decision and consider whether doing it is advantageous given their immediate circumstance.
Now, some folks will cite this quote in trying to get you to do something you may not be prepared to do, like spend a bunch of money on a seminar or home study course when that really might not be a sound financial decision for you at the time.
UNDERSTAND: The person pushing you has a private agenda! They want your money. Whether or not the decision is sound for you likely does not enter into the scenario from their point of view. They came to that moment for sole purpose of selling their product.
Jarom Adair has this on his website: the wealthy appear to make decisions quickly and then staunchly maintain their chosen direction.
However, as we just discussed, this is an appearance only. When any person has the knowledge and experience to reach a decision quickly regarding any given scenario, it is exactly because of their knowledge and experience that they are able to quickly get past the "FUD" (Fear, Uncertainty and Doubt) and move on to the decision making process without much debate. They already know what must be done. They've done it before and they understand the risks and benefits of acting or not acting, as the case may be.
When someone is pushing you to make a decision where you're obviously experiencing discomfort about it, they are very likely to pull this "gem" out of their bag of tricks in an effort to appeal to your desire for success in the face of "FUD". That is, they turn your own apprehension against you.
True, it is all just part of the selling process.
Remember to recognize that it *IS* all just part of the selling process, and you'll be able to arm yourself against it. Especially when it comes to real estate investing, seminars and home study courses: you're standing on the threshold, about to enter a realm where you may only have limited knowledge and understanding. This can work against you, and the sales people are trained to exploit that about you.
To truly be like a successful person - and, ultimately become the successful person we all want to be - make decisions in your OWN time for your OWN reasons.
Some decisions become routine, and those we will learn to make "quickly", perhaps even as quickly as whether to turn right or left at a given intersection, based on where we wish to go. Others we must first study so that when the need for a decision arises we can make an educated choice, even if we've little or no experience from which to draw confidence.
In my earlier post, So Many Gurus, So Little Cash, my advice is to listen to as many free webinars as you can find and sign up for. I'll expand on that to add a recommendation to soak up all of the free information you can find, and there's lots of it to be found with a bit of searching on "the web".
This will at least arm you with some knowledge and allow you to make a better decision.
We'll talk again soon!
Take care - be well!
Much Success!
Tuesday, December 22, 2009
Christmas Time Is Here
I "grew up" watching the Charlie Brown specials and others on TV around the holidays. As the season reaches its climax, I was recently given pause to consider some deeper thoughts.
My Dad died December 9th of 1993, just four weeks after his 79th birthday. That was an especially dificult time for me. Reconciling myself to the loss of my father was a wrenching experience, to say the least. Of course, my feelings do not match my Mom's. She lost her life partner, whom she had known since his boyhood in St. Paul, Minnesota. They'd have been married 74 years this past September.
Christmas as well as Autumn 2006 brought some personal challenges and, while that did put a bit of a damper on the holiday, life improved rather a good bit as a result.
Christmas 2007, however, brought a new challenge: my brother had open-heart surgery to put in four bypasses. He had not experienced any heart muscle damage as yet; so, his prognosis is very good. He was home already, six days after surgery - a bit surprising, but that's how they do it these days: get you back on your feet rather than let you grow idle and weak. He's always been more, shall we say, robust than me, even in our youth. He was always the stronger one, I was always the runt. I was concerned, yet I was also optimistic. He's doing quite well these days.
Christmas 2008 brought yet another challenge. An old spinal injury acted up as a result of my stumbling while stepping down off of a step-stool stringing holiday lights on the fireplace. I briefly lost the use of my right leg a week later, and was keeping my crutches handy for the remainder of the Holiday Week.
This year, 2009, has seen some key aspects of my life come to an end. One of them was the end of my Information Technology career. The job loss doesn't really need to be my exit from the IT world. I'm just making a choice to take my life in a new direction. My future security lies between my own two ears, not on some company's payroll.
Past years and especially this year have brought experiences I was not expecting, experiences that likely bring a lesson or two in their wake. My siblings and I have never been close, yet we all wonder why my Mom has remained among us for so long: she'll be 97 if she lives to see the end of this year. Perhaps some mission in her life remains to be realized.
Perhaps some purpose is found in these events that have touched our family. I will continue to explore them, and see what they bring to us and our lives.
My Best Wishes to One and All this Holiday Season. May the New Year bring all of us peace and prosperity!
We'll talk again soon!
Take care - be well!
Much Success!
My Dad died December 9th of 1993, just four weeks after his 79th birthday. That was an especially dificult time for me. Reconciling myself to the loss of my father was a wrenching experience, to say the least. Of course, my feelings do not match my Mom's. She lost her life partner, whom she had known since his boyhood in St. Paul, Minnesota. They'd have been married 74 years this past September.
Christmas as well as Autumn 2006 brought some personal challenges and, while that did put a bit of a damper on the holiday, life improved rather a good bit as a result.
Christmas 2007, however, brought a new challenge: my brother had open-heart surgery to put in four bypasses. He had not experienced any heart muscle damage as yet; so, his prognosis is very good. He was home already, six days after surgery - a bit surprising, but that's how they do it these days: get you back on your feet rather than let you grow idle and weak. He's always been more, shall we say, robust than me, even in our youth. He was always the stronger one, I was always the runt. I was concerned, yet I was also optimistic. He's doing quite well these days.
Christmas 2008 brought yet another challenge. An old spinal injury acted up as a result of my stumbling while stepping down off of a step-stool stringing holiday lights on the fireplace. I briefly lost the use of my right leg a week later, and was keeping my crutches handy for the remainder of the Holiday Week.
This year, 2009, has seen some key aspects of my life come to an end. One of them was the end of my Information Technology career. The job loss doesn't really need to be my exit from the IT world. I'm just making a choice to take my life in a new direction. My future security lies between my own two ears, not on some company's payroll.
Past years and especially this year have brought experiences I was not expecting, experiences that likely bring a lesson or two in their wake. My siblings and I have never been close, yet we all wonder why my Mom has remained among us for so long: she'll be 97 if she lives to see the end of this year. Perhaps some mission in her life remains to be realized.
Perhaps some purpose is found in these events that have touched our family. I will continue to explore them, and see what they bring to us and our lives.
My Best Wishes to One and All this Holiday Season. May the New Year bring all of us peace and prosperity!
We'll talk again soon!
Take care - be well!
Much Success!
Tuesday, December 08, 2009
So Many Gurus, So Little Cash
Hello! David J here again bringing you more of the steps on my journey toward financial independence.
"When the student is ready, the teacher will appear."
I've found that to be true in my own life. When I needed to learn something, the one(s) who could help me learn were always close at hand.
What I find interesting as I study the current methods of achieving success in today's economy is that there are indeed a great many resources out there if one is open to the possibilities.
Since much earlier in 2009, I've been discovering people doing very well in their field who have a great deal of information available in their free webinars. Webinars are typically run during the evening hours (U.S. Central time), and are usually on Tuesday, Thursday or Sunday evening, though lately some have been occurring on Monday and Wednesday evening, even Saturday and Sunday afternoon.
There's usually two or three to choose from in any given time slot. Get on enough mailing lists and you'll have plenty of choices for who to listen to on your computer. GoToWebinar is indeed a good thing!
Why do I listen to so many "gurus"? Why not just pick one and follow that person?
No one "guru" tells it all, and each one presents a somewhat different paradigm while presenting their information somewhat differently. The trick is to look for what the current presenter is telling that no one else has mentioned. One of them gives out one set of pieces to the puzzle, and another gives out a lot of the same pieces, but may give out different pieces that other presenters haven't mentioned. By listening to as many of them as you can find, one can gather a lot of puzzle pieces.
Thus, one can gain a significant education while only investing time and internet access resources and not a big wad of cash.
Yes, the free webinars ARE sales pitches - they have to cover their expenses SOMEhow!
...and, of course, what they're selling priced anywhere from $500 to $5,000 or more amounts to little more than $50 worth of paper, binders, CD or DVD blanks and cases. What you're paying for is the information it all contains. While economies of scale definitely figure into the scenario, by their own admission selling educational materials is indeed quite lucrative, which explains why every "guru" has a "course".
As you listen to your own selection of gurus and presenters, you are likely to find one or two whose message makes the most sense to you, and you come to understand what they are presenting. You will likely reach the point where you figure that these people you understand the best are the ones in whose materials you should invest.
My advice is to take your time, learn as much as you can first. THEN invest in a home study course or other program.
If possible, try to invest in a program of action: something which not only outlines the actions to take but also provides the means to hold yourself accountable for taking those actions and following up on the results.
In the end, it all comes down to this one basic principle:
Contrary to the old adage, "Knowledge is power", it really isn't. Knowledge is like the energy stored in a battery: it is only potential power. Knowledge becomes active - kinetic - power when you implement what you have learned by taking action on it.
We'll talk again soon!
Take care - be well!
Much Success!
"When the student is ready, the teacher will appear."
I've found that to be true in my own life. When I needed to learn something, the one(s) who could help me learn were always close at hand.
What I find interesting as I study the current methods of achieving success in today's economy is that there are indeed a great many resources out there if one is open to the possibilities.
Since much earlier in 2009, I've been discovering people doing very well in their field who have a great deal of information available in their free webinars. Webinars are typically run during the evening hours (U.S. Central time), and are usually on Tuesday, Thursday or Sunday evening, though lately some have been occurring on Monday and Wednesday evening, even Saturday and Sunday afternoon.
There's usually two or three to choose from in any given time slot. Get on enough mailing lists and you'll have plenty of choices for who to listen to on your computer. GoToWebinar is indeed a good thing!
Why do I listen to so many "gurus"? Why not just pick one and follow that person?
No one "guru" tells it all, and each one presents a somewhat different paradigm while presenting their information somewhat differently. The trick is to look for what the current presenter is telling that no one else has mentioned. One of them gives out one set of pieces to the puzzle, and another gives out a lot of the same pieces, but may give out different pieces that other presenters haven't mentioned. By listening to as many of them as you can find, one can gather a lot of puzzle pieces.
Thus, one can gain a significant education while only investing time and internet access resources and not a big wad of cash.
Yes, the free webinars ARE sales pitches - they have to cover their expenses SOMEhow!
...and, of course, what they're selling priced anywhere from $500 to $5,000 or more amounts to little more than $50 worth of paper, binders, CD or DVD blanks and cases. What you're paying for is the information it all contains. While economies of scale definitely figure into the scenario, by their own admission selling educational materials is indeed quite lucrative, which explains why every "guru" has a "course".
As you listen to your own selection of gurus and presenters, you are likely to find one or two whose message makes the most sense to you, and you come to understand what they are presenting. You will likely reach the point where you figure that these people you understand the best are the ones in whose materials you should invest.
My advice is to take your time, learn as much as you can first. THEN invest in a home study course or other program.
If possible, try to invest in a program of action: something which not only outlines the actions to take but also provides the means to hold yourself accountable for taking those actions and following up on the results.
In the end, it all comes down to this one basic principle:
Contrary to the old adage, "Knowledge is power", it really isn't. Knowledge is like the energy stored in a battery: it is only potential power. Knowledge becomes active - kinetic - power when you implement what you have learned by taking action on it.
We'll talk again soon!
Take care - be well!
Much Success!
Tuesday, December 01, 2009
No Cash - No Credit
Hello! David J here again bringing you more of the steps on my journey toward financial independence.
"You can do this even if you're dead broke!"
If you've ever read anything in print or on the web from a real estate or internet wealth "guru", you've probably read that claim in nearly every one of them, seen or heard it in their webinars and/or teleseminars, etc.
Trouble is, of course, their statement is only true AFTER you've purchased their home study course, coaching program, etc., and not before.
See, to them, "No Cash, No Credit" doesn't mean "No Cash, No Credit". To them, it means, "Just kidding - my family is doing just fine! I've really got up to $2000 or more burning a hole in my pocket, and I can afford upwards of $200 a month for on-going coaching services."
This is truly disappointing, naturally.
Most - if not all - of the gurus claim to have come from the humblest of beginnings: children of working class people barely living from day to day, much less paycheck to paycheck... penniless immigrants... homeless and substance dependent, ... Think of a challenging beginnings story and at least one of the gurus has "been there".
Now, understand: I'm not saying that their claims are untrue, their claims are probably accurate.
What I AM saying is that they've forgotten their beginnings, where they came from, and what it took to get started.
Wealth frequently causes even the most noble among us to quickly become jaded. This is documented in society over and over again. I remember a joke from the old "Dick Van Dyke Show" where Rob Petrie is telling his wife, Laura that he doesn't want his son to become jaded by them throwing a professionally run birthday party for him because Rob doesn't "want to live with a kid who is turning green". Well, many of the young nouveau riche have "acquired a 'rich' patina", pun intended.
If they did remember their roots they'd understand the challenges of supporting a family on unemployment pay, or working a minimum wage job just to feed the family while also conducting a job search, which itself is a full-time job, and they'd be bending over backwards trying to lift people up out of that quagmire rather than pushing them down deeper into it.
Most - if not all - of the "gurus" make an offer like this: "Give me the food out of your family's mouth, the roof from over their heads and the clothes off their back and when you've achieved your first success and given me a testimonial, I'll give it all back to you." They call this getting their stuff "for free". They also call it being decisive and "taking massive action". You and I would call it being fiscally irresponsible in the hope of not only recovery but also future gain. Isn't that the definition of "gambling"? Sounds like how the U.S. and the world got into the financial fix we're in, doesn't it? Ever heard the expression "Wall Street Casino"?
The challenge is obvious, I'm sure: They want money up front that they'll give back to you later. How do you take something which isn't there out of an empty pocket?
...and they all say the same thing, as well: The "barrier to entry is necessary to filter out (fill in the blank). Ask someone else to front you the money." Guess they haven't heard about The Great Recession, as it has come to be called.
See, they and all of their fellow gurus are loaded with cash, so they think that's the norm because, in their platinum-plated world, it IS the norm. They've forgotten what it means to be wondering how you'll pay this month's bills while some guru is asking for the money you need to keep your household going for the next two months.
When you ask them to take their money out of the proceeds of the first deal, they view that as "being asked to work for free". Personally, I am hard-pressed to identify another profession where fees are paid before services are rendered. Doctors, dentists, surgeons, ... none of them get paid until they do something for which they can bill. Likewise, attorneys - although they can negotiate retainers. Hourly and salaried people also do not get a check on - or before - their first day at work. They have to earn it first.
In future posts, I'll tell you about my plan to not only get people started in real estate investing, but do it WITHOUT putting them out of their own home first. Rather, I'll even put them back into the workforce. That is, instead of a "student" fronting ME HIS/HER money, I'll front HIM/HER MY money, and (s)he will pay me back out of the proceeds of the first deal or two they do while earning a salary with benefits.
We'll talk again soon!
Take care - be well!
Much Success!
"You can do this even if you're dead broke!"
If you've ever read anything in print or on the web from a real estate or internet wealth "guru", you've probably read that claim in nearly every one of them, seen or heard it in their webinars and/or teleseminars, etc.
Trouble is, of course, their statement is only true AFTER you've purchased their home study course, coaching program, etc., and not before.
See, to them, "No Cash, No Credit" doesn't mean "No Cash, No Credit". To them, it means, "Just kidding - my family is doing just fine! I've really got up to $2000 or more burning a hole in my pocket, and I can afford upwards of $200 a month for on-going coaching services."
This is truly disappointing, naturally.
Most - if not all - of the gurus claim to have come from the humblest of beginnings: children of working class people barely living from day to day, much less paycheck to paycheck... penniless immigrants... homeless and substance dependent, ... Think of a challenging beginnings story and at least one of the gurus has "been there".
Now, understand: I'm not saying that their claims are untrue, their claims are probably accurate.
What I AM saying is that they've forgotten their beginnings, where they came from, and what it took to get started.
Wealth frequently causes even the most noble among us to quickly become jaded. This is documented in society over and over again. I remember a joke from the old "Dick Van Dyke Show" where Rob Petrie is telling his wife, Laura that he doesn't want his son to become jaded by them throwing a professionally run birthday party for him because Rob doesn't "want to live with a kid who is turning green". Well, many of the young nouveau riche have "acquired a 'rich' patina", pun intended.
If they did remember their roots they'd understand the challenges of supporting a family on unemployment pay, or working a minimum wage job just to feed the family while also conducting a job search, which itself is a full-time job, and they'd be bending over backwards trying to lift people up out of that quagmire rather than pushing them down deeper into it.
Most - if not all - of the "gurus" make an offer like this: "Give me the food out of your family's mouth, the roof from over their heads and the clothes off their back and when you've achieved your first success and given me a testimonial, I'll give it all back to you." They call this getting their stuff "for free". They also call it being decisive and "taking massive action". You and I would call it being fiscally irresponsible in the hope of not only recovery but also future gain. Isn't that the definition of "gambling"? Sounds like how the U.S. and the world got into the financial fix we're in, doesn't it? Ever heard the expression "Wall Street Casino"?
The challenge is obvious, I'm sure: They want money up front that they'll give back to you later. How do you take something which isn't there out of an empty pocket?
...and they all say the same thing, as well: The "barrier to entry is necessary to filter out (fill in the blank). Ask someone else to front you the money." Guess they haven't heard about The Great Recession, as it has come to be called.
See, they and all of their fellow gurus are loaded with cash, so they think that's the norm because, in their platinum-plated world, it IS the norm. They've forgotten what it means to be wondering how you'll pay this month's bills while some guru is asking for the money you need to keep your household going for the next two months.
When you ask them to take their money out of the proceeds of the first deal, they view that as "being asked to work for free". Personally, I am hard-pressed to identify another profession where fees are paid before services are rendered. Doctors, dentists, surgeons, ... none of them get paid until they do something for which they can bill. Likewise, attorneys - although they can negotiate retainers. Hourly and salaried people also do not get a check on - or before - their first day at work. They have to earn it first.
In future posts, I'll tell you about my plan to not only get people started in real estate investing, but do it WITHOUT putting them out of their own home first. Rather, I'll even put them back into the workforce. That is, instead of a "student" fronting ME HIS/HER money, I'll front HIM/HER MY money, and (s)he will pay me back out of the proceeds of the first deal or two they do while earning a salary with benefits.
We'll talk again soon!
Take care - be well!
Much Success!
Tuesday, November 03, 2009
Wealth, Youth, Dignity and Pop Culture
Hello! David here.
I invite you, my dear reader, to join me on a quest for financial independence and freedom.
I was laid off from my most recent IT job on the 6th of August, 2009. So, beware of those ads you see on TV promoting IT-related certifications as a way of achieving job security. "Job security" is a myth in today's workplace. The only REAL security you have anymore is found between your own two ears: what you can develop for yourself as a way to market yourself and what you do to help the people who need you.
I have explored and am exploring a number of potential income-producing activities, including franchises and various investment opportunities. Specifically, I'm looking at real estate investing as well as conducting real estate transactions as a way of generating cash and income.
Nathan and Chris both have said in recent webinars that they "don't want victims". Of course, just by saying that, what do they create? Yup - more victims.
I invite you, my dear reader, to join me on a quest for financial independence and freedom.
I was laid off from my most recent IT job on the 6th of August, 2009. So, beware of those ads you see on TV promoting IT-related certifications as a way of achieving job security. "Job security" is a myth in today's workplace. The only REAL security you have anymore is found between your own two ears: what you can develop for yourself as a way to market yourself and what you do to help the people who need you.
I have explored and am exploring a number of potential income-producing activities, including franchises and various investment opportunities. Specifically, I'm looking at real estate investing as well as conducting real estate transactions as a way of generating cash and income.
This past summer, I made the acquaintance - by e-mail - of a young fellow in Florida doing a booming business which is fueled by the current economic downturn: flipping pre- and post-foreclosure properties.
O.k. I know the first words out your mouth: "Flipping properties? In THIS economic climate? You've GOT to be JOKING!!!" I know, it does seem to contradict itself. If folks are having trouble keeping properties, how can other folks afford to buy them?
Well, the technique has come to be known as "flipping" short sales and REOs. In short sales, the entities holding liens on properties in or entering forclosure are convinced to take a steep discount on the notes they hold in return for liquidating them without the expense of going through the foreclosure, eviction and resale process. In the case of REOs (Real Estate Owned, known in the banking world as non-performing assests), its simply a case of acquiring the property from the lender below market and then reselling, again below market.
In either case, these are "A->B->C" transactions. For short sales, the "A" party is the current owner, the "B" party is you and the "C" party is the end buyer. For REOs, the "A" party is the lender/title holder, the "B" party is you and the "C" party is the end buyer.
In either case, these are "A->B->C" transactions. For short sales, the "A" party is the current owner, the "B" party is you and the "C" party is the end buyer. For REOs, the "A" party is the lender/title holder, the "B" party is you and the "C" party is the end buyer.
If you are familiar with the concept of trading "paper" in the secondary market, then you'll likely quickly see that the concepts are not unfamiliar, though the motivations for selling those notes are rather different. In the case of a short sale, rather than endure the expense of foreclosure, eviction, public sale and holding costs (taxes, insurance, upkeep, etc.), the lien holder - especially the primary - is convinced to accept a steep discount, sometimes a VERY steep discount. Subordinate lien holders pose other challenges.
Now the mechanics of such a deal are rather involved, so I won't detail them here. Suffice it to say that the players are many, the negotiations are delicate and forms - documents AND protocols - to be followed are detailed and exact.
That's where this young man comes into the scene. His name is Nathan Jurewicz, and he calls himself, "The ShortSales Kid". His website is http://www.shortsalesriches.com/ .
Now, Nathan is young - late twenties as of this writing - and his appearance is ... well, less than professional is probably the kindest way to put it. To see him, find his channel on YouTube at http://www.youtube.com/user/shortsalesriches .
When you first meet Nathan, he makes rather a rough first impression. He's also got a good bit of an attitude. Think of the tune, "If I Were A Rich Man" from "Fiddler On The Roof": "When you're rich they think you know it all." Imagine reflecting that from the "rich man's" point of view.
Of course, this is not unique to Nathan. In general, the young nouveau riche amplify the youthful attitudes of omniscience and invulnerability, taking them to new heights. This is just a fact of life in the modern world. May as well adapt to it and move forward.
Of course, this is not unique to Nathan. In general, the young nouveau riche amplify the youthful attitudes of omniscience and invulnerability, taking them to new heights. This is just a fact of life in the modern world. May as well adapt to it and move forward.
However, Nathan's experiences in the realm of real estate have provided him with a wealth of knowledge specific to his field. He has some very valuable information that he provides in his course (every real estate guy has a "course", right?) called, "Short Sales Riches".
So, once you can get past the rough exterior and the attitude, Nathan is a veritable font of quite valuable information.
Fortunately for Nathan, he has a real, professional business man as a partner, Mr. Chris McGlaughlin. Chris presents a professional face on behalf of the partnership between himself and Nathan, co-founders of the "ShortSalesRiches" organization. This works in both their favors.
During my early encounters with Nathan his people, I also came into contact with Heather Hernandez who, along with her husband, is an early success story for Nathan and Short Sales Riches. Heather, like Chris McGlaughlin, presents a very refined, sensitive appearance - at least in e-mail - and should, in my opinion, work with Chris, and the two of them exclusively should present the public face of Short Sales Riches. Sure, Nathan's doing o.k. as it is, but if one could do much better, one probably would want to, wouldn't you?
Nathan identifies Heather's husband, Frank Hernandez as the head of his platinum coaching team. Frank is ... well, let's just say that he's a diamond in the extreme rough. He could use a PhD from Charm school, based on my experiences with him. He may know his stuff very well, but his comportment and presentation greatly limit the value of his knowledge, again based on my experiences with him to date.
Through leading many of his on-line webinars, Nathan has gained a fair amount of polish. So, there is hope. Perhaps he, Chris McGaughlin and Heather could work with Frank and smooth Frank's rough edges. My gut tells me that Frank could really shine as a coach and a mentor if he could learn to get out of his own way.
Nathan identifies Heather's husband, Frank Hernandez as the head of his platinum coaching team. Frank is ... well, let's just say that he's a diamond in the extreme rough. He could use a PhD from Charm school, based on my experiences with him. He may know his stuff very well, but his comportment and presentation greatly limit the value of his knowledge, again based on my experiences with him to date.
Through leading many of his on-line webinars, Nathan has gained a fair amount of polish. So, there is hope. Perhaps he, Chris McGaughlin and Heather could work with Frank and smooth Frank's rough edges. My gut tells me that Frank could really shine as a coach and a mentor if he could learn to get out of his own way.
One very important lesson that has yet to come Nathan's way is that the most successful people in society also tend to be the most philanthropic. This is in keeping with the principle that from those to whom much is given by this world, much is expected in return.
In Nathan's own word, he is a "capitalist", though he may not fully grasp the word's full meaning. If he did, he might rethink using that title.
In Nathan's own word, he is a "capitalist", though he may not fully grasp the word's full meaning. If he did, he might rethink using that title.
What does all this mean? Well, it means that if you're out of work and struggling to feed, clothe and house your family, don't come to Nathan - that's not his problem ... and he's right, really, it isn't.
Nathan and Chris both have said in recent webinars that they "don't want victims". Of course, just by saying that, what do they create? Yup - more victims.
Then again, what separates the "men" from the "boys" among the highly successful people is the quantity of what they give back for the good fortune with which they have been blessed.
Apologies if that bursts your bubble a bit.
Check back with this blog regularly and look for an update. It may take a while to put all this together, and I am still working on other income-producing projects.
I am genuinely making an effort to pull all this together to make it work so I can begin to become part of the solution to an economic problem that most people alive today have never seen before in their entire life.
May you have greater success and prosperity every day!
- David J Dachtera
*: Did you know that not every real estate sale agent is a "Realtor(TM)"? "Realtor(TM)" is a trademark of the National Association of Realtors. Real estate sales agents are not required to be members of the NAR; however, only members of the NAR have the right to use the title, "Realtor(TM)".
Tuesday, April 07, 2009
About the "Uninsured"
One of my local on-line newspapers ran an Associated Press article today giving statistics about the number of Americans who were without insurance at some point during the previous two calendar years (2007 and 2008).
I had to read the article to figure out if it was talking about homeowner's insurance, renter's insurance, vehicle insurance, flood insurance, life insurance, accidental death and dismemberment insurance, flight insurance, legal insurance or what. Turns out they meant health insurance.
Health "insurance". It's almost a punch line these days.
Suppose you are a service provider of some kind - plumber, electrician, painter, carpenter, etc. - and the only way your "customers" can afford to pay you is if they make regular periodic payments to belong to some group with deep pockets.
Other than health care, what profession could possibly survive under such conditions?
I had to read the article to figure out if it was talking about homeowner's insurance, renter's insurance, vehicle insurance, flood insurance, life insurance, accidental death and dismemberment insurance, flight insurance, legal insurance or what. Turns out they meant health insurance.
Health "insurance". It's almost a punch line these days.
Suppose you are a service provider of some kind - plumber, electrician, painter, carpenter, etc. - and the only way your "customers" can afford to pay you is if they make regular periodic payments to belong to some group with deep pockets.
Other than health care, what profession could possibly survive under such conditions?
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