Archive for How to become an Entrepreneur
“Your Network is Your Net Worth.” – Tim Sanders
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"You are who you hang out with"
Greetings from a coffee shop somewhere in the mountains of New Mexico.
This morning I received and email that took me back a few years ago. I was quickly reminded of my old blog “WealthLifelines.” A few years ago I had a blog that focused on building relationships in order to build “wealth” in all areas of life. I still believe that is the most important success factor.
I continue to tell my students, “being successful in whatever you do depends on your ability to build relationships. Not just ‘business card’ relationships but deep, meaningful relationships.”
I think there are two people spreading the “relationship” gospel best…..Keith Ferrazzi and Tim Sanders.
If you are not familiar with Tim Sanders…..I would encourage you to start now.
I first learned about Tim Sanders when I picked up his book Likability Factor which I highly recommend. Then I read Love is the Killer App. Another excellent book. I have not read his new book Saving the World at Work….but that is next.
Tim spreads the word about how crucial relationships are to our success in business…but most of all, in life. We take “relationships” for granted and I see it as a dying art form….of course only used by those who are truly wealthy….and I am not talking about money. It is not a secret….but we try to substitute what is truly worth our time with “gimmicks” and “goofy myths” hoping to avoid meeting people and hoping to be successful while living in a closet.
When I hear someone call themselves “A self-made millionaire”….I whisper to myself….”what a liar.” And if….there is a very slim chance that is true….”how sad.”
Until next time….rob
The $15 Million Dollar Commercial Real Estate Challenge: Setting The Stage
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Just watch me....win or lose!
This is the first time we are announcing this publicly!
My partner, Rob Powell, is working on buying a $15 million deal in Texas, and we want you to follow along in real time as he works this project.
Follow on Twitter: http://twitter.com/RobAPowell and Subscribe to this blog for more detailed updates!
We don’t know if this deal will close… we’re doing this in real time without a safety net. But we’re going to be sharing what happens step by step and we want you to be a part of it.
As an extra incentive, we’ll be providing special “bonuses” like some of our closely-kept property documents as a gift to you to help you follow along and to assist you as you work your own commercial real estate deals.
Heck, you may even have a chance to participate in this as team members… we’ll have to see how things play out.
CAVEAT: The Internet is a big, exciting and PUBLIC place. Our only limitation is that we don’t want to give away too much insider information that could get back to parties that are not as nice as you, so some identifying details will be left out of the public conversation. Shhh! However, we strive to give enough information that you can follow along just like you were doing the deal with us!
The Deal Itself:
This commercial real estate deal is a $15 million apartment building in Texas with approximately 500 units. It is a “C” class property in a “C” area with an 80% occupancy rate.
Where We Found It:
Just like we’ve taught our private coaching students, some of the best deals are to be had through creating relationships. We call them “Wealth Lifelines.” This deal was found by networking with real estate agents who knew Rob was a serious buyer looking for a good opportunity.
The Numbers:
When Rob found this apartment complex, it was hovering around 80% occupancy after some management transition had increased the vacancy from it’s historically lower levels.
He was attracted to the deal because it cash flowed at that level, so there was good upside potential.
Even though the cap rate was in the “7″ range when he first saw the property, Rob was able to negotiate $1.5 Million off the purchase price to get it locked up 
at an 8-cap.
If nothing changes when they do the financial review, Rob should be able to get an 15% cash-on-cash return on this deal.
What’s Next:
Rob is just starting the due diligence phase of the process. He has 45 days for due diligence and it started yesterday (4/20/2009).
He is hiring an asset management firm, and a property management company he’s worked with in the past to cooperate in doing the research necessary to complete the due diligence.
Want to know what he’s working on NOW?
Follow him on Twitter to find out!
http://twitter.com/RobAPowell
This is an exciting deal and I am looking forward to revealing more as we get further into the process!
Networking Brings Value At Real Estate Investment Clubs
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Networking - How valuable is it? Picture by Corey Robinson
Real estate investment clubs are an invaluable resource for investors of all experience levels. Whether it is finding a seasoned professional in the 
area to be a mentor or forging partnerships for future opportunities, real estate investment clubs offer a low cost opportunity to build substantial and lucrative contacts.
What can I gain from a real estate investment club?
Real estate investment clubs can provide you with the “in” you need for the markets you want to invest in. Many members have long-term experience in the market and will be able to share their experiences with you. Many clubs also offer professional development courses as part of their regular meetings that can offer you tips and tricks for use in your own investment strategies. It also will provide you with a common ground to talk with other professionals in the area that have similar experiences and interests.
If you are new to real estate investing, these clubs are great for introducing you to people who have worked with private investors. Additionally, many club members have years of experience in working with a wide variety of financial products including private financing, credit partners, conduit lending, mezzanine lending, and government backed mortgage securities like Fannie Mae, FHA and Freddie Mac. These meetings offer informal ways to pick the brains of the pros in your area and be introduced to their financing contacts.
How can I network at a real estate investment club?
As the old real estate saying goes, it’s all about “location, location, location.” If you attend the meetings, you gain the exposure.
To get value out of a real estate investment club, you should:
• Contact the group president or membership officer to find out more about the club. If the club is focused on strip malls and you focus on multifamily properties, keep looking.
• Ask to attend a meeting.
• Once you’ve attended a meeting determine if you like the structure of the group. If it seems like everyone was trying to sell something or you don’t like the founders, keep looking.
• Once you’ve decided that you like the group, become a member.
• Take business cards.
• Dress professionally.
• Introduce yourself to every person there and exchange business cards.
• Send a thank you email or note to every person with whom you exchanged cards within 2 days.
• Ask to present a success story or lead a seminar for the group.
• Attend any local area conventions or affiliated meetings.
• Become a member of the board.
Networking can also provide you with investment opportunities you might not otherwise know about. Regardless of market conditions, investment properties are always available. However, finding the properties and opportunities can be an arduous task. The informal sessions at the clubs will provide valuable conversations on investment options that others may have passed up or do not qualify to invest in.
I’ve been investing a long time. What other tips can I use from real estate investment clubs to grow my business?
If you are a seasoned investor, than you know the more people you maintain relationships with, the more likely you are to prosper. If you regularly 
write articles for real estate press or maintain a real estate blog, ask to add your contacts from the club to an email list or listserv. Sending relevant articles about the market or your experience is a valuable way to build your credentials as an expert investor. Remember that if you do regularly email a list of people, you first need to obtain permission and provide an opt-out feature. Additional requirements may be necessary according to the appropriate state laws.
How do I find a real estate investment club?
There are several Internet and print resources available including:
http://www.nreiclub.com
http://www.creonline.com/clubs.htm
As with all inquiries, do the appropriate research.