Saturday, October 30, 2010

America's Most Affordable Cities

Top 5 Most Affordable Cities

1. Oklahoma City, Okla.
Metropolitan Statistical Area: Oklahoma City, Okla.
Cost-of-living rank: 12
Unemployment rank: 4
Housing-costs rank: 2
2. Pittsburgh, Pa.

Metropolitan Statistical Area: Pittsburgh, Pa.
Cost-of-living rank: 6
Unemployment rank: 15
Housing-costs rank: 1
3. Buffalo, N.Y.

Metropolitan Statistical Area: Buffalo-Niagara Falls, N.Y.
Cost-of-living rank: 16
Unemployment rank: 9
Housing-costs rank: 3
4. Rochester, N.Y.

Metropolitan Statistical Area: Rochester, N.Y.
Cost-of-living rank: 25
Unemployment rank: 1
Housing-costs rank: 8
5. Nashville, Tenn

Metropolitan Statistical Area: Nashville-Davidson-Murfreesboro-Franklin, Tenn.
Cost-of-living rank: 3
Unemployment rank: 23
Housing-costs rank: 11

Source: Forbes

See the rest of the article here

Fear of Success?

Many times we come across of articles or other professionals talking about the "fear of success". You may be thinking of who can be afraid of success. Who can be afraid of achieving goals in life?

I think that what it is referred to as "fear of success" is more a fear of responsibility. See to be able to succeed it requires to work. In today's environment where people are promoting the "get rich doing nothing" philosophy, people have a real hard time with real businesses and opportunities. See to do what it takes to be successful requires work, commitment and being focused. Many translate that to hard work and pain.But what you may not realize is that responsibility can be liberating.

Create value for your business and embrace the responsibility that is required to be successful and you will become free!

Wednesday, October 27, 2010

Sucess is Difficult Without Goals

When it comes to setting goals, you will notice that it will help you choose a path for your life and to help keep your life pushing forward. You will know what you want to achieve and where you place your concentration. You will be able to spot all the things that will sidetrack you or distract you from the main goal. When you have a goal and plan, you will find that you will know when you are on tract with the goal and when you are not. When you set your goals properly, you will find it to be motivating and help you stick with the main focus. Every time you reach a goal, you will find yourself wanting to keep moving forward. You want to be able to reach for something and be truly focused on it or you’ll never reach anything. Goals help you stay on the right path and they help you stay out of trouble.

You will find that your mind is a wonderful tool and your life will be designed to reach for your dreams and live your life the way that you have designed your life. You are able to focus on what you want for your life and then when you set a clear and comprehensive goal you know that you can have such an achievement. Your achievements are marked because you worked so hard for them. When you place a goal on paper, you are able to mark a path for where you want your life to go. Then you are able to physically see that you can do whatever you need to or achieve your goal.

Who uses goals? Well, everyone uses goals to help them make it to their dreams. Businessmen and women, athletes, students and more use goals to help them make it to their dreams. Without goals, you must not have dreams because you cannot reach your dreams unless you set your goals down and a game plan. When you set goals, you are able to motivate yourself and be able to visualize who you are. You may find that you may have to do a lot of research for you to be able to set your goals properly. You are also going to have to organize your time and find some resources to help you make the most out of your life.

For you to properly set a goal, you must be specific. You need to think about all the details of your goal and what you have to do to meet your goal. You want to make sure that you have everything covered in the plan. When you aim for a goal, you will find things that will distract you. Have a plan when it comes to the distractions. Do you have a friend to help keep you on track? Do you have anyone who cares enough to help you find the path that you stray away from? Hopefully you can find a backup plan to your problems.

Why are goals so important? Goals give a person direction, and if you don’t have direction then you have no other option by to wonder. Wondering is okay when you are very young, but when it comes to being a responsible adult you are pressured by society to have goals and plan. You are expected to know what you want out of life and how to get to your life goal at a very young age. When you are twenty or three you will find yourself wondering what you want for your life. If you set a goal early, you can at least have some direction in life, but as you grow you can always change your goals to something that you want.

Sunday, October 24, 2010

MetLife says its foreclosure affidavits are accurate http://ow.ly/2YAZ6

Saturday, October 23, 2010

FREE BUSINESS PUBLICITY

It does not matter what type of business you are operating, you should strive for as much publicity for your business and your products or services, as possible. Free marketing/publicity is critical for the success and growth of your business.

Before you start with the marketing efforts, please remember that your publicity efforts should be well though out, even if they are free, to achieve maximum results. One of the most basic form of obtaining publicity is through press release. This is generally a one page story about your business, your product/service or an event/happening related to your business that is about to, or has recently occurred.

A press release, news release, media release, or press statement is a written or recorded communication directed at members of the news media for the purpose of announcing something claimed as having news value. Typically, they are mailed, faxed, or e-mailed to assignment editors at newspapers, magazines, radio stations, television stations, and/or television networks. Commercial press release distribution services, such as PRWeb, PR Newswire, CNW Group, MarketWire and Business Wire, are also used to distribute them.

When you send your press release, send a short cover letter addressed to the person you want your material to be considered by. You wont get the results you want if you send it to a general department such as advertising, circulation or business managers. Also,it wont help to mention that you are a long-time advertiser, subscriber or listener. The bottom-line is to get to the person who has the final say as to what is to be published or broadcast. Press releases should follow a proper presentation if you expect it to be used by the media. Here are some of the suggestions for press releases; it must be typed, double-spaced, and short - about a half page in total length. Here are some places where you can find help:

http://www.publicityinsider.com/release.asp
http://www.wikihow.com/Write-a-Press-Release

Choose the media best suited for your press release. Select those that carry similar write-ups on a regular basis. Always use a cover letter of some kind. It pays to call ahead to find out the name of the person you should be sending your press release to. Use the proper press release form, complete with a headline that will interest the man deciding whether or not to use your item. Also, please spell check your press release prior to sending it. Finally, w hen your item is used, send a thank you note or call the editor on the phone and thank him/her for using your press release.

Sunday, October 17, 2010

Life Mapping: A Vision of Success

Success is more than economic gains, titles, and degrees. Planning for success is about mapping out all the aspects of your life. Similar to a map, you need to define the following details: origin, destination, vehicle, backpack, landmarks, and route.

Origin: Who you are


A map has a starting point. Your origin is who you are right now. Most people when asked to introduce themselves would say, "Hi, I'm Mary and I am a 37-year old, Realtor. Well, this does not tell you about who Mary is; it only tells you her present preoccupation. To gain insights about yourself, you need to look closely at your beliefs, values, and principles aside from your economic, professional, cultural, and civil status. Moreover, you can also reflect on your experiences to give you insights on your good and not-so-good traits, skills, knowledge, strengths, and weaknesses. Upon introspection, Mary realized that she was highly motivated, generous, service-oriented, but impatient. Her inclination was in the biological-medical field. Furthermore, she believed that life must serve a purpose, and that wars were destructive to human dignity.

Destination: A vision of who you want to be

"Who do want to be?" this is your vision. Now it is important that you know yourself so that you would have a clearer idea of who you want to be; and the things you want to change whether they are attitudes, habits, or points of view. If you hardly know yourself, then your vision and targets for the future would also be unclear. Your destination should cover all the aspects of your being: the physical, emotional, intellectual, and spiritual. Continuing Mary's story, after she defined her beliefs, values, and principles in life, she decided that she wanted to have a life dedicated in serving her fellowmen.

Vehicle: Your Mission

A vehicle is the means by which you can reach your destination. It can be analogized to your mission or vocation in life. To a great extent, your mission would depend on what you know about yourself. Based on Mary's self-assessment, she decided that she was suited to become a real estate investor, and that she wanted to become one. Her chosen vocation was a real estate investing. Describing her vision-mission fully: it was to live a life dedicated to helping families achieve homeownership.

Travel Bag: Your knowledge, skills, and attitude

Food, drinks, medicines, and other traveling necessities are contained in a bag. Applying this concept to your life map, you also bring with you certain knowledge, skills, and attitudes. These determine your competence and help you in attaining your vision. Given such, there is a need for you to assess what knowledge, skills, and attitudes you have at present and what you need to gain along the way. This two-fold assessment will give you insights on your landmarks or measures of success. Mary realized that she needed to gain professional knowledge and skills on financing and taxation so that she could become a better investor. She knew that she was a bit impatient with people so she realized that this was something she wanted to change.

Landmarks and Route: S.M.A.R.T. objectives

Landmarks confirm if you are on the right track while the route determines the travel time. Thus, in planning out your life, you also need to have landmarks and a route. These landmarks are your measures of success. These measures must be specific, measurable, attainable, realistic, and time bound. Thus you cannot set two major landmarks such as earning a master's degree and a doctorate degree within a period of three years, since the minimum number of years to complete a master's degree is two years. Going back to Mary as an example, she identified the following landmarks in her life map: completing a real estate investing training course within the next 30 days; scan her real estate database for great opportunities within the next 60 days; and close her first real estate deal within the next 90 days.

Anticipate Turns, Detours, and Potholes

The purpose of your life map is to minimize hasty and spur-of-the-moment decisions that can make you lose your way. But oftentimes our plans are modified along the way due to some inconveniences, delays, and other situations beyond our control. Like in any path, there are turns, detours, and potholes thus; we must anticipate them and adjust accordingly.

Saturday, October 16, 2010

The Failed Promises of Promissory Notes

Promissory notes are promoted as safe, lucrative investments. However. many times investors are left with failed promises. Remember that when an investment sounds too good to be true, it usually is.

Promissory notes are short-term debt instruments (similar to a loan or an IOU) frequently sold by little-known or nonexistent companies which are used by a company to raise money. Typically, an investor agrees to loan money to the company for a set period of time. In exchange, the company promises to pay the investor a fixed return on his or her investment, typically principal plus annual interest. While promissory notes can be legitimate investments, those that are marketed broadly to individual investors often turn out to be scams.

Fraudsters (who may or may not be part of a bogus company) brokers persuade clients to make large investments that promise lucrative commissions. What is the catch? The brokers are generally located outside of the US, aren’t licensed to do business in the US, and lack the resources to deliver on promises. The main target for this scam are affluent seniors, but no one is immune.

What is the hook? Investors are tempted by the promise of a high, fixed-rate return (sometimes upward of 15%-30% monthly) with very little or no risk. The notes are highly attractive because the seller will falsely claim that they're “guaranteed” or “insured.” May times the fraudsters will target agents who are the ones approaching their clients to make the presentations to their clients who already have and implicit trust in them.

Red Flags: Watch out for claims “risk-free” investments and promises of fast and "guaranteed" double-digit returns, labels of “prime quality” on a start-up company’s notes, notes for a nine-month period or less, unlicensed sellers, and notes offered to the general public (most are not sold this way).

How to mitigate the risk to fall victim? Ask tough questions – and demand answers – before you consider investing in a promissory note. Be sure you understand how they work and what risks they pose. Here are some tips:

* Bear in mind that legitimate corporate promissory notes are not usually sold to the general public. Instead, they tend to be sold privately to sophisticated buyers who do their own "due diligence" or research on the company.

* Find out whether the investment is registered with the SEC or your state securities regulator – or whether it's exempt from registration. Most legitimate promissory notes can easily be verified by checking the SEC's EDGAR database or by calling your state securities regulator. If the promissory note is not registered, you'll have to do your own thorough investigation to confirm whether the company has the ability to pay its debt.

* Be skeptical if the seller tells you that the promissory note is not a security. The types of promissory notes involved in promissory note scams usually are securities and must be registered with either the SEC or your state securities regulator – or they must meet an exemption.

* Make sure the seller is properly licensed. Insurance agents can't sell securities – including promissory notes – without a securities license. Call your state securities regulator, and ask whether the person or firm is licensed to sell securities in your state and whether they have a record of complaints or fraud. You can also get this information by calling FINRA's public disclosure hotline at (800) 289-9999 or by visiting their website.

* Beware of promises of "risk free" returns. These claims are usually the bait con artists use to lure their victims. Always remember that if it sounds too good to be true, it probably is.

* Watch out for promissory notes that are supposedly "insured" or "guaranteed," especially if a foreign insurance company is involved. Be sure to call your state insurance commissioner to find out whether the foreign insurance company can legally do business in the United States.

* Compare the rate of return on the promissory note with current market rates for similar fixed-rate investments, long-term Treasury bonds, or FDIC-insured certificates of deposit. If the seller promises an above-market rate on a short-term note, proceed with caution.

If you believe you've invested in a promissory note scam, act promptly. By law, you only have a limited time to take legal action.

Contact the SEC's Office of Investor Education and Advocacy. You can send us your complaint by using our online complaint form. Or you can reach us as follows:

U.S. Securities & Exchange Commission
Office of Investor Education and Advocacy
100 F Street, N.E.
Washington, D.C. 20549-0213
Fax: (202) 772-9295

Quality Versus Quantity

Many times I have been asked about the reason why some investors become successful in real estate investing and others fail at it. One of the observations I have made is that those that are successful tend to have an area of focus. They focus on quality instead of the quantity of transactions.

When I say quality I mean the focus in the cashflow generated by transaction. This is critical when you are starting. Our resources are limited so we need to be smart about where to invest those funds. In real estate investing I suggest that you establish a target of minimum amount of cash flow you want on each property. For example you may establish a goal of $300 per month per property. Now you may say that is not enough, but remember we talking about monthly cashflow, net of all rental expenses. Therefore on a real estate transaction where you have invested $20,000, you will experience a cash-on-cash return of 18% annually, not bad.

I understand that many times investors must flip properties to generate some cash to pay off bills and to generate cashflow. However, as you develop a real estate portfolio based on quality you will generate cashflow from each property which will generate a monthly income for your family. Please remember that it is not the number of houses what is important; it is the amount of income from each property. Many times investors set up their target on the number of properties they want in their real estate portfolio, I think that is the wrong approach. Let me explain, would you rather have ten houses with $300 of cashflow per month per property or have thirty properties with $100 cashflow per month? Both portfolios have the same amount of income. However, one of this portfolios will give you the biggest bang for your buck? Which one will potentially provide you the most amount of headache in managing the properties? Which portfolio is going to have the most repairs costs?

Sunday, October 10, 2010

The Meaning of Leadership

“You cannot teach a man anything. You can only help him discover it within himself.” (Galilei, G. Coaching People, Pocket Mentor Series, Harvard Business School Press, 2006, p. 4.)

Many times we hear people talking about leadership. What exactly is leadership? What does it take to be a leader?. That is what I will attempt to answer here today.

Why are talking about leadership on a real estate investing blog? As mentioned before, real estate investing to be successful you must treat it like a business and leadership is the most important single factor in determining business success or failure. So What is Leadership? Leadership could be defined as the "process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task." (Chemers, M. M. (2002). Meta-cognitive, social, and emotional intelligence of transformational leadership: Efficacy and Effectiveness. In R. E. Riggio, S. E. Murphy, F. J. Pirozzolo (Eds.), Multiple Intelligences and Leadership.) In simple terms, leadership is the art of motivating a group of people to act towards achieving a common goal. Therefore, we could say that a leader is the person that "influences a group of people towards the achievement of a goal".

Real estate investing consist of working with other professionals and team members towards the achievement of a common goal. To be a successful real estate investor you need to be able to motivate and lead others to the achievement of a common good or plan. The subject of leadership is one that has been covered for many years and you can find thousand of books, articles and commentaries on the market offering ideas and theories on this subject. However, we cannot the importance of leadership in our businesses, leadership emerges in response to situations that require the very best you have.

The process of leadership requires the three Ps : Person, People and Purpose. The first P "Person" is the you the leader. The question is "Is leadership a position of office or authority? Or, is leadership an ability in the sense that he is a leader because he leads? Many times we confuse the role of the leader. A leader is not a tyrant, you could "lead by force", but that does not make you a leader. We may know of people who are in positions of leadership but who are not providing leadership. "Titles" and "position of office" are no guarantee of leadership. Remember that a true leader is one who goes first and leads by example, so that others are motivated to follow him. That is a basic requirement. To be a leader, a person must have a deep-rooted commitment to the goal that he will strive to achieve it even if nobody follows him!. He/she must have a clear vision of what they want.

Everyone is a potential leader, as long as they develop and execute effective leadership qualities. Here are some of the qualities that the Person must posses:

1. Integrity - Great business leadership is characterized by honesty, truthfulness, and straight dealing with every person, under all circumstances.

2. Courage - The ability to make decisions and act boldly in the face of setbacks and adversity is the key to greatness in leadership. Leadership is not
the absence of fear, but the control and mastery of fear.

3. Power - Power gravitates to the person who can use it most effectively to get the desired results. The key here is that leaders use power to advance the
interests of the organization rather than themselves.

4. Other qualities - realism, ambition, optimism, empathy, resilience, independence, emotional maturity, superb execution and foresight.

The next P is "Purpose" or Personal vision - the ability to visualize your goal as an accomplished fact; a thing already achieved.

"The very essence of leadership is that you have to have vision. You can't blow an uncertain trumpet."
Theodore M. Hesburgh


How do you become a leader with a purpose? You need guidance "Trust in the LORD with all your heart and lean not on your own understanding; in all your ways acknowledge him, and he will make your paths straight.(Prov 3:5-6). Next, is the realization that the goal cannot be achieved alone, without the help of others. The leader must integrate his (or the organization's) goal with his followers’ personal goals and then communicates this goal in such a way that they embrace it too and the goal becomes a common goal.

"The leader has to be practical and a realist, yet must talk the language of the visionary and the idealist."
Eric Hoffer


The Leader must communicate goals with "AIMS":

Achievable ... realistic yet faith stretching
Inspiring ... challenging your people to give of their best
Measurable ... quantifiable
Shared ... declaring your conviction in and commitment to the goal

The final P is "People"; To be a leader, one must have followers. To have followers, one must have their trust. What makes some individuals more effective than others as leaders? I think it can be summed up as follows:

1. Persuasion skills,

2. Leadership styles, and

3. Personal attributes of the leader.

4. Influence (a critical element of leadership - love for people). When people are convinced of your love for them and that you always have their interests upon your heart, they trust you and they will follow you up the highest mountain and into the deepest sea.

The real estate industry of today is a relatively mature industry with stable growth prospects. Real estate has emerged as an asset class of its own. Leaders of the real estate investing industry must work now in not making the mistakes of the past to prevent us from falling to the same traps and create the disasters caused. However, the recent collapse of the real estate market, thought us that the mentality of "If you build it, they will come,” will lead us to a tremendous oversupply. This coupled with unfounded lending practices caused the debacle of not just the real estate and banking industry, it almost collapsed our country. I understand that nobody wants to be responsible for moving the market out of balance, particularly in this uncertain economy,” however as leaders we must have the courage and integrity to do what is right.

This is not a complete list of the qualities of a leader. I invite you to share your thoughts about what qualities you think a leader should have.

Saturday, October 2, 2010

Colombia One of Top Hotel Investment in LATAM for 2011

As reported by the Jones Lang LaSalle hotel investment report, Bogotá, Buenos Aires, Lima and Santiago emerge as key strategic markets for Latin America in 2011. This report reveals four of the most favorable destinations for hotel investment in South America.

Bogota, Colombia surpassed Brazil, as it provides strong demand fundamentals and a favorable investment environment which is resulting in real estate opportunities. Bogotá, is experiencing growing demand for hotels and it finds itself on a solid path of recovery.

Unlike São Paulo and Santiago, Bogotá did not experience a significant amount of hotel construction during the past 15 years due to the country’s previous political instability. In addition, the stock of institutional-grade, four- and five-star hotels is expected to grow by 37 percent between now and 2012, which creates a myriad of investment opportunities, including potential conversions and management contracts.

Domestic and international hotel investors should keep Bogotá on their radar as the cities’ economic and demographic trends continue to strengthen, resulting in a number of exciting hotel investment prospects.

Credit Score Myths

As I have mentioned before, as real estate investors we must be at all times reviewing our credit scores and looking for ways to improve it. Here I share with you some of the myths and misinformation spread in the net.

1. The less credit I have the better for my credit score
2. If I lower my credit limit my credit score will increase
3. If I close my credit cards my credit score will increase
4. Keep a balance to have a good credit score
5. If I request my credit report it will hurt my score
6. I cannot get credit because I had a foreclosure or bankruptcy
7. If I pay my bills on time I will have a perfect score

In summary I will share with you how your credit score is affected:

10% Credit type (mortgage, installment, revolving, finance cards)
10% Inquiries
15% Age of the accounts
30% Outstanding balance
35% Payment history

So what do lenders look for:

1. Credit
2. Income - potential to fulfill the obligation
3. Cash in the bank - liquidity
4. Down payment

So what can you do to improve your credit score:

1. Keep credit card balances under 30% of their limits
2. Have at least 3 revolving credit lines
3. Verify the accuracy of your reported credit limits
4. Have at least 1 installment loan
5. Remove all errors from your credit report
6. Get a letter of deletion before paying a bill in collection
7. Create a restructuring plan

I hope this helps. I recommend that you seek professional help in the implementation of a debt restructuring plan. Please remember that the above suggestions are just general and specific situations may require other measures.