Archive for May, 2008

Hell Freezes Over … Rocky Gets a Job!

Wednesday, May 14th, 2008

Whew! What a stressful day it’s been at myHouseDeals.com! Things started out innocently enough. I had a productive meeting with my office staff, and I hammered out some tax details with my CPA. Before I knew it, it was time for lunch. So I decided to swing by my house for a quick bite. That’s when things took a strange turn.

My dog, Rocky, doesn’t usually talk much. But as I approached my back door, he said, “Ruff ruff! Doug! I was hoping you would come home! I usually love playing with my toys and licking myself all day, but something’s different this week. Ruff ruff! It’s just not as fun as it used to be. Doug, I see you leave here every morning and go to your office. I wanna come with you! Let me come Doug! Let me! Ruff ruff!” Here’s a pic of Rocky begging to come to work with me. (I count at least 7 toys at his feet.)…

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I hesitated for a minute and said to myself, “That would surely be a disaster.” But then Rocky looked at me with those cute little bug eyes and over-sized ears and gave me a big doggy smile. Before I could say no, he stole my heart! So I said, “Ok Rocky. You can come to work with me!”

I continued, “But I need your help. I need you to actually get some work done because we’ve been short-handed this week. Everyone at work already knows who you are. You’re a big name around the office. Since you already have such respect, I’m going to appoint you to an executive position. Your title will be Director of Membership Acquisition and Retention Operations.”

I grabbed a quick bite of food (and gave some to Rocky, of course) and then said, “Come on Rocky, jump in the car. Let’s go to work. I’ll have everyone greet you at the front door. You’ll get the grand welcoming that someone of your caliber deserves.” We arrived at the office 5 minutes later, and sure enough, the staff and I rolled out the red carpet for him on the front steps …

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Rocky said, “Thank you so much everyone. But enough of this. I’ve got work to do. Move out of my way!” We were all amazed at his “go get ‘em” attitude.

He got off to a quick start. Within the first thirty minutes, he was delivering a stellar presentation to a big prospect. But things quickly went downhill when Rocky found love in a female dog that he saw through the window. (Nevermind that she was a 100-pound Great Dane.) After that, he couldn’t regain focus. The rest of the presentation was a complete disaster…

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After I caught wind of Rocky’s botched presentation, I made the tough decision to demote Rocky to Director of Office Supplies Management. As director, he was in charge of checking paper supplies, ordering more paper if needed, stacking the paper, organizing the paper, and making sure that everyone had enough paper on their desk. But, as you can see, that didn’t work out either…

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At this point, I had to sit down with Rocky for a heart-to-heart, man-to-dog discussion. I told him that I was concerned about his performance and that I didn’t know where to put him.

He said, “Doug. Stop. Ruff ruff! I know what you’re thinking. You think that I’m not working out. Ruff ruff! But I just haven’t been given the right assignment yet. Let me show off my skills in customer service. I know I’ll be a super star! And by the end of the day, all of you will be chanting ROCKY, ROCKY! Ruff ruff!” I said, “Ok, let’s give that a shot. Your new title will be Manager of Real-Time Telephony Conversations (customer service rep). I know you can do it.”

But, unfortunately, that didn’t work out either. The customer service headphones were simply too small for his big ears! That’s too bad. His smile would have radiated through those phone lines …

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Feeling like I was almost out of options, I started looking for another job for Rocky. “Ah ha!”, I said to myself. “Rocky, you’re now the Chief Logistical Routing Coordinator.” (errand boy) He was extremely excited about the new assignment! But no luck. He couldn’t see over the steering wheel!…

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And so I gave him an even simpler job … Director of Waste Removal & Disposal. (trash man) But that didn’t work out so well either…

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Finally, I gave him the last job I could think of … Website Availability Assurance Specialist. All he had to do was refresh the myhousedeals.com home page every few minutes to make sure that the site was still up and running. But I came back 15 minutes later, and he was playing his favorite game, Solitaire!…

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I looked at Rocky. He was caught red-handed. He said, “But I was bored!” I said, “Rocky, I never thought it would come to this, but I have to say that YOU’RE …”. Rocky stopped me with a quick “Ruff!” He said, “Stop Doug. I know what you’re going to say. Let me spare both of us the agony. I’ll grab my things.”

I replied, “Rocky, I think that’s best. Let me show you the way out. Thank you for your time, and I’m sorry it had to come to this. I’ll see you at home tonight. I hope this doesn’t come between us, but business is business.” I have a feeling that if he had a tail, it would’ve been tucked between his legs…

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When I came home later today, I didn’t know what to expect. I was hoping for the best, but unfortunately, I saw the worst. Rocky had opened up a bottle of rum, and I could tell that he had already had several shots. By the time I saw him, he could barely “sit”. And “shaking” was out of the question…

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As I write this, Rocky is passed out of the sofa. I can only assume that he’s deeply depressed that he let me down at work today. I ask for all of your thoughts and prayers for a quick recovery for Rocky. Hopefully, he’ll be able to trade in the bottle for his toys sooner rather than later.

Sadly signing off,

Doug Smith
President
myHouseDeals.com

UPDATE: I took Rocky to the park. He’s happy again. That was easy! Oh, and I hid the rum …

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13 Warren Buffett Quotes for Real Estate Investors

Wednesday, May 7th, 2008

buffett.jpgIf you read the daily newspaper, it’s likely that you’ve become concerned about the state of today’s housing market. And it’s no wonder. Just open up the Real Estate section of any paper, and you’ll see nothing but negative headlines.

To prove my point, here are some headlines from the last three days: “Foreclosure Crisis”, “Fannie Mae Flops”, “Lawmakers Target Mortgage Lenders”, “Foreclosures Double, and Home Prices Tumble”, “Housing Woes Won’t End Soon, Poll Suggests”. I could go on.

I’m not saying that these headlines and articles provide false information. For the most part, their statements are true. But what I am saying is that you should not be using this information to make your personal investing decisions.

You must ask yourself. Am I investing in a market? Or am I investing in a DEAL? If the deal is right and your exit strategy is clear, then the market conditions become almost irrelevant. And fortunately, the surge in motivated sellers has created more deals than ever.

Today, I won’t go to go into the obvious topic of “How to Thrive in Today’s Market”. I’ve already done that in these two postings:

http://www.myhousedeals.com/blog/index.php/real-estate-investing/selling-to-bad-credit-buyers-in-a-post-sub-prime-world

http://www.myhousedeals.com/blog/index.php/2007/11

And I won’t show you success story after success story, which I’ve already done in the members area and in this blog posting:

http://www.myhousedeals.com/blog/index.php/uncategorized/myhousedealscom-member-featured-on-flip-that-house-this-weekend

Instead, I think it’s time that you get a little guidance from the wealthiest man in America, Warren Buffett. I’ve taken 13 of his most famous quotes and listed them below. And beneath each quote, I’ve translated it into practical advice for real estate investors like you. So let’s get going…

13 QUOTES FROM WARREN BUFFETT (TRANSLATED)

1. “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”

REI Translation: Today’s market fluctuations are your friend because they’ve scared off your competition … other investors. They’re also your friend because the fluctuations have caused there to be a flood of motivated sellers. And as any savvy investor knows, buying from motivated sellers is the only way to make it in this business.

2. “Only when the tide goes out do you discover who’s been swimming naked.”

REI Translation: Keep plenty of tools (investing techniques) in your tool belt so that you can adapt to a changing market. What worked best in 2005 doesn’t work best in 2008. Today, we’re seeing first hand that those with only one investing strategy are taking a beating.

3. “Our favorite holding period is forever.”

REI Translation: To build true long-term wealth, you must buy and hold properties.

4. “Risk comes from not knowing what you’re doing.”

REI Translation: Those who don’t know how to properly analyze, enter, and exit real estate transactions think today’s market is risky. Those who fully understand the intricacies of creative real estate investing continue to participate and profit.

5. “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

REI Translation: Now’s the time to buy. In real estate and in life, it’s almost always best to act opposite to the crowd.

6. “Wide diversification is only required when investors do not understand what they are doing.”

REI Translation: Naive real estate investors are putting their money into stocks, bonds, and savings accounts right now. Smart investors continue to invest in real estate, and they’re picking up more bargains than ever.

7. “Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.”

REI Translation: If you’re concerned that you cannot sell for full value, then buy lower – at about 60% of value – and sell lower – at about 90% of value.

8. “We will reject interesting opportunities rather than over-leverage our balance sheet.”

REI Translation: Sometimes the best real estate deals are the ones you don’t make.

9. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

REI Translation: If you’re going to hold a property long term, it’s far better to buy a wonderful house at a fair price than a dump at a bargain.

10. “A public-opinion poll is no substitute for thought.”

REI Translation: Most Americans think that now is a risky time to get into real estate investing. Do they know more than you? Most likely not. Only a handful of Americans know the specific techniques for profiting in today’s market. And that’s because they read blogs like this, they buy REI courses, they attend their local REI meetings, etc. Most Americans get their “investing tips” from the daily paper. There couldn’t be a worse source. Do you think journalists know how to wholesale houses, do short sales, take over a loan Subject 2, etc.? I think not.

11. “The most important quality for an investor is temperament, not intellect… You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”

REI Translation: Don’t worry what the masses are doing. Follow the advice of successful real estate investors, and use their techniques to profit in today’s market.

12. “You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it.”

REI Translation: Every deal must work on paper before it will ever work in real life.

13. “I really like my life. I’ve arranged my life so that I can do what I want.”

REI Translation: Remember, that’s what real estate investing is all about. Arranging your life so that you can do what you want to do when you want to do it.

That’s all for now. Until next time, happy (and profitable) investing!

Doug Smith
President
myHouseDeals.com

P.S. Not a member of myHouseDeals.com yet? Start your free trial at www.myhousedeals.com/freetrial, and get access to dozens of new wholesale deals and motivated seller leads each month. We do the hard work of finding and compiling these deals so that you can focus on buying them and reaping the profits!