Archive for entrepreneur
The Führer Principle – Brandon Saylor
Posted by: | CommentsGreetings from Albuquerque, NM….
Below is an article from my friend Brandon…..again. He writes such great stuff….that….for obvious reason….I like to post it! Enjoy…until next time….rob
The Führer Principle
In grade school, I remember asking myself how could the German people elect someone as evil as Adolf Hitler. How could they allow such a monster to become supreme chancellor? Understanding how it happened is very important, mainly so it does not happened again. The significance of this newsletter will only make sense by looking through the lens of today’s events. Many of the main ingredients that led to the Nazi take over are present today. Recognizing the circumstances is the solution to history not repeating itself.
The beginning of the end for the Weimar Republic began with the Treaty of Versailles in 1919. For the German people, the treaty was humiliating. The treaty placed heavy restrictions on Germany much of which were embarrassing for the once proud nation. The German army was reduced to one hundred thousand solders and arms for citizens became non-existent. The initial German economic fatalities due to the treaty were shocking. Germany’s territories vanished overnight. Germany lost approximately 13.5% of its total land mass, 13% of its industrial productivity, and more than 10% of its population. Additionally, the loss of important mining regions such as the Saar and Upper Silesia resulted in a loss of some 74% of iron ore and approximately 25% of its coal reserves. Historians and economists have long deliberated the real effects of the treaty but one thing is for certain it lead to “deprivations that shattered their faith in the democratic process and left them cynical and alienated.” –G.A. Craig
Germany’s economic situation never improved. To keep up with the stringent demands of the treaty, the Weimar Republic faced hyperinflation never seen before in history. The German Mark ratio to the U.S. dollar was 4 to 1 near the end of the WWI. It was 8 to 1 in 1919, 250 to 1 in 1921, and 2000 to 1 in 1923. The Weimar government, at various times, faced food shortages, massive unemployment, and an unprecedented economic depression. By 1932, some 6 million Germans were unemployed. Millions of them were homeless living on the streets relying on soup kitchens and charity organizations. “Men standing hopelessly on street corners of every industrial town in Germany; houses without food or warmth; young people without the chance of a job. All these things explain the bitterness which burned in the minds of millions of ordinary Germans.”
The escalation of political violence in Weimar Germany must certainly be factored in as a contributory reason for the country’s political volatility. Beginning with the emergence of the Freikorps, which later became the brutal SS, formed units immediately after the declaration of the Republic. The tendency toward violence became entrenched in Weimar politics after the 1919 assassinations of Karl Liebknecht and Rosa Luxemburg. Large protests and riots became an all too familiar sight for the citizens of Germany.
Among the widespread disarray and frustration, the basic notion of a government was being questioned. What type of government could lead and govern the will of the people? This ongoing debate became known as the Führer Principle. The Führer Principle is established on the acknowledgment that the true will of the people cannot be revealed through plebiscites but that the will of the people in its natural and virtuous state can only be articulated through the Führer. Therefore, a difference must be drawn between the theoretical will of the people in a parliamentary democracy, which simply echoes the discord of diverse social perspectives, and the true will of the people in the Führer-state. Hitler took the Führer Principle and redefined it as himself…he was the Führer. Redefining the Führer was nothing short of audacious. It was captivating and alluring to many who were famished for change.
Many of the governing members in the Reichstag (congress) struggled to tame and communicate effectively to the youth of Germany. The Reichstag members continually doubted the youth’s ability to recognize a just government. Keep in mind most of Germany’s youth grew up in this chaotic state. Their view towards the government was distorted to say the least. The Weimar Republic only lasted 14 years but before that Germany spent the last 5 years in battle. A huge cohort of individuals only knew suffering and turmoil. Disconnect between the defenders of the former Kaiser rule and much more progressive governments were mounting daily. During the short lived Weimar Republic, Communism, Socialism, and a whirl of leaders/dictators were fighting for control.
Hitler knew very well that the youth’s mind were especially susceptible. This is exactly why he began with them. In the beginning, his messages were engineered for the youth. He knew the youth would be prone to messages of change and optimism. Joseph Goebbels (Hitler’s Minister of Propaganda) used propaganda methods to manipulate the masses. It was this desolate desire for change that gave Hitler his power.
The straw that broke the camels back for the Weimar Republic was the American Great Depression. The stock market crash of 1929 sent shock waves across Europe. The crash knocked Germany into the gallows. It was Hitler’s time to move. On September 14th, 1930, the Reichstag elections were held. The results were shocking. The Nazis had entered the register as the ninth and smallest of Germany’s political parties. The German people voted. The Nazis controlled 107 seats after that election. In November 1932, Hitler was defeated in the presidential election to WWI veteran Paul von Hindenburg. He received 42% of the votes. Hitler decided to enter a coalition government as chancellor in January 1933. Upon the death of Hindenburg in August 1934, Hitler become successor by popular vote.
Today, we are suffering the ongoing effects of the worst recession since the Great Depression. We are facing a global economic contraction. Greece is on the verge of insolvency and the US is limping along. Worldwide riots and protests have plagued the streets invoking for revolution. Frustration levels are swelling. This is the formula for calamity. However, it begins with the youth. Vladimir Lenin famously referred to youth uprisings as “useful idiots”. With the exception of the American Revolution, most revolutions in history conclude with a radical party seizing opportunity out of the political madness. People such as Hitler, Mao, and Lenin took advantage of a chaotic situation. I do not foresee a Weimar revolution of this magnitude anytime in the near future. Nevertheless, if we are not careful and mindful of the situation it becomes an unquestionable possibility. Education and knowledge of the truth is the only thing that will prevent history from repeating itself.
Have a great weekend my friends!
Brandon Saylor
-Associate
Partnerships – the Good And the Bad (for Some It is Horrible)
Posted by: | Comments
Partners for life?
Greetings from the metropolis of Cedar Crest, NM.
Today, I was on a conference call via Skype. The meeting was in Sacramento and I was attending via video on Skype. How cool is that? I also meet with my mentor or “life coach,” Wes Roberts, over Skype video a few times a month. Just too cool….but I digress.
Anyway….
Today’s post is based on my conference call today. The call had a lot of different aspects to it but one of the topics we discussed was partnerships. Now….if you are an entrepreneur, you probably have had some experience with partnerships. Chances are, most of your experiences have not been that great. I have had some great ones and some not so great. I have heard all the horror stories….but honestly, when done right, partnerships can put you on the fast track to success. The question is how do you do it right?
We do have a free white paper available to you on just that topic. The white paper on partnerships was written by my business partner, Steve Maxwell.
So….
To give you some insight into our discussion on partnerships, I got some key points from the discussion. I will share with you three of them:
1) Build partnerships around projects: More specifically, put partnerships together to accomplish a specific project. If things go well, do another project together. At first, you may want to do a short-term project first to get a feel for your partner. Then grow from there. Imagine being in a partnership five months down the road….with no end in sight. Some of you may be in relationships like that….outside of business
Odds are against you if u put a partnership together to exist for the long haul. People change, situations change, etc. Plus….the idea of being in something for a long period of time may be exciting at first…but as time goes on…..and as things change….the thought of being in a partnership for a long time becomes a heavy load.
2) Expectations: Having everyone on the team with the same expectations is VITAL. When it comes to finances….projects….roles and responsibilities….if the partners are not on the same page…which means do not have the same expectations, bad feelings and animosity are soon to follow.
3) Experience: I think the key here is “entrepreneurial experience.” If the experience is not there…if the aptitude is not there then someone will end up leading where they did not expect to lead and doing work they did not expect to do. And in my experience, fighting battles that should not be fought. In other words, taking a non-entrepreneur to think like an entrepreneur is an exhaustive exercise. Now…I am not saying not to work with someone who is not an entrepreneur. But usually, if someone has value but does not think like an entrepreneur, you are better off hiring someone with that skill set. Which leads me to a bonus key point….
Bonus) Don’t partner with someone that you can hire. If you want to partner with your best friend ….then just hire he or she.
If the reason your are partnering with someone is because he or she can do your taxes for free or is they can build your website for cheap…think again.
well…back to the conference call…break is almost over…..
Until next time……rob
Commercial Real Estate Investing: Vulture Investing
Posted by: | Comments
The Vulture Investor
Greetings from Sacramento, CA!
I am up here visiting my friends for a mastermind with a very distinguished crowd. I am not sure why I was invited but…I am glad I was and I hope they invite me again. Needless to say, I learned a lot and realized I have a lot more to learn.
That is the beauty of meeting people who are doing things on a much grander scale. Your mind starts to stretch and you get different perspectives. Although the members of the group may be doing business differently, our value system and our deep convictions are the same….which makes this mastermind go beyond the term “mastermind”…..but I have not figured out a term for this type of “mastermind” yet….but I will
….but I digress.
Anyway…..
Vulture Investing
I am not sure who came up with the term “vulture investing” but I am confident I did not. But I think the term is very
appropriate for the investing that I am doing…or…rather…trying to do.
You have heard or read that “The other shoe is about to drop for commercial real estate” right? This is so true, on a broad scale…but I wish the media could get creative and maybe do more research on what is really happening. Yes…commercial real estate is sinking. Yes….investors are going belly up. Yes….financing commercial real estate is difficult if not impossible. BUT….all these issues equate to amazing opportunity. But…one must focus on the opportunity.
Like I have said in the past, a lot of money will be made in this season by savvy investors. These savvy investors are “cherry picking” the surplus of assets sitting on the market waiting for a buyer. Folks….the surplus is getting larger. As the “average” investor runs to the hills, the shrewd investor is circling the skies waiting to softly land to take it’s share of “road kill.”
The “vulture investor” is looking for motivated sellers. Sellers that have balloon loans coming up and cannot refinance. Developers who go caught in a surplus of residential homes and need to liquidate their “other” assets to stay afloat. Sellers who are losing tenants and cannot compete with lower lease rates because they bought at the top of the market. An on and on…..
But I need to make something clear. I have been on the other side of the vulture….needing to sell. Thank God for the vulture
investor. Yes…I lost money….but I could have lost a lot more if I was not rescued.
Time for you to learn how to be a vulture investor?
1) get educated. The window is small…so the time is now
2) hang out with other “successful” commercial real estate investors. The key word here is “successful”
3) Stop thinking you can’t do it
If you are looking for a mentor to help you get started in commercial real estate investing, contact us and let us show you how you can do it too!
Until next time……rob