Archive for entrepreneur
Partnerships – the Good And the Bad (for Some It is Horrible)
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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
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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
Commercial Real Estate Property Spotlight: Industrial Space
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Industrial Space? That is like big buildings and stuff right?
“Down in the West Texas’ town of El Paso….I fell in love with a Mexican girl…..” – Marty Robbins.
Greeting from the great city of El Paso, Texas. I grew up in El Paso….and have family here….so I come back a least a couple times a year. It is good to be here. I am here to visit family and friends as well as check up on my commercial real estate investments. A good size of my portfolio is in El Paso…not only because I am familiar this multi-cultural city…but because it is growing like crazy! Fort Bliss is benefiting from the base closures so the consolidation is making Fort Bliss a “mega” military base with over thirty thousand additional troops funneling in (not including their families) and government money to boot! But I digress.
So….today’s post is on the basics of industrial space. As most of us know, industrial real estate is getting “kicked in the teeth” as the market continues to drown in it’s own blood. This means we are seeing industrial prices at historic lows in some areas across the USA. A time to buy? Yes…but with strong caution. I my opinion….we have not seen anything yet….forget the “shoe falling off”….the whole foot is infected. I hope I am wrong…but it is going to get a lot uglier before we see some light.
Anyway…..
This is the fourth post in a series that will highlight the different types of properties available to investors. The posts are an overview of general information. As with all investments, you should properly research the opportunities to determine whether they fit your portfolio.
What are Industrial Spaces?
Industrial spaces are properties rented to tenants for the purposes of manufacturing, distribution, warehousing inventory ore 
research and development. The spaces can be either within an “industrial park” or a freestanding building. Like most commercial property, industrial spaces can be leased to a single tenant or multiple companies.
What Do I Need to Know About Investing In Industrial Spaces?
Industrial spaces can be a very efficient way to build your wealth, but you need to do your research to find the right opportunity for you.
• Many investors were snatching up industrial real estate as late as 2005, but like all sectors, this too has decreased. According to allbusiness.com, the industrial real estate sector has not experienced nearly the decline that other sectors have. It does point to the “credit crunch” as putting a hold on industrial space expansion.
• Industrial real estate usually is rented as “shell” space without walls or further cosmetic uses that are necessary for office space. This results in lower initial investments.
• Industrial buildings are generally located in an industrial-zoned section of the city. This generally means less insurance (expense).
• Most industrial tenants are long-term tenants that would prefer to stay in the same location because they may have large, costly equipment that is logistically difficult to move. This means that you have locked in tenants who will not move just based on a better rent structure four blocks down, which translates to continuous steady income.
What are the cons of industrial spaces?
Again, with any property, location is important. If the market is oversaturated or does not have the demand to support industrial property, it is not a wise investment. Financing can be difficult to obtain for certain investors, which means you may have to work harder to find creative ways to finance your acquisition.
In Conclusion
Industrial spaces are a common addition to many investment portfolios. If you are considering investing in an industrial space, take the time to tour other properties in the market and look at each building’s performance. And, as always, if you have questions, contact the experts at The Real Wealth Company.
Until next time……..rob