Why the Taxi Driver Can Make You Tens of Thousands of Dollars Investing in Commercial Real Estate

It may sound hard to believe, but, when it comes to where and what kind of apartment or commercial property you should be looking at investing in and or becoming an owner of, the taxi cab driver and TV reporter are sometimes your best indication of what kind of property you should choose.

I know, sounds like I may have finally fallen off of my rocker. Upon reflection, it does sound a bit crazy, so, having said this let me explain it in a little better detail for you with a story.

A few months ago I needed to do some traveling and I flew into a well known city located in the SE part of the US.

I grab my luggage from the airport and find a cab to take me to my hotel. The gentleman or cabbie driving me was very helpful. Not only was this cabbie helpful with my baggage but he also helpful in telling me that I should not buy any real estate in this market.

How did a cabbie convince me that this was NOT the place to buy real estate?

By proceeding to tell me that the marketplace was hot. People are buying properties and turning around and selling them for hundreds of thousands more the same day or in some cases the next day. If I was smart he says I would be going to buy this property so I could profit on this too.

No offense to my cabbie friend OK. But, if a cabbie is telling me how hot the real estate market is that tells me that the market is about ready to either have a major slowdown or a huge correction.

Why? I will tell you in a bit.

So, I get out of the cab and proceed to my hotel room. The first thing I do upon getting there was flip the TV on. Well, while flipping through channels I run across a local TV news program and a local reporter is telling me about, you guessed it, how hot the real estate market is and how much money people are making.

Once again, the decision NOT to buy here was made even stronger to me.

Some of you may be thinking something along the lines of, “Darin, you had two people tell you how great the market was and this was all in the same day. So, why not buy there, wasn’t there evidence that the market was good?

Yes, there was evidence, but let me tell you something. When the “common folk” such as a cabbie start to tell me what kind of property I need to be investing in that is a sure sign that this is the property to avoid. In other words, if these folks know about it, if folks “on the street” and “not in the real estate know” are experts in this it is time to run away from these kind of investments and this kind of property.

Look what happened in the recent dot com bust? Same kind of thing. Only the same kind of rules DO apply to real estate as well.

The big lesson? When it comes to owning and investing in apartments and commercial investment property, the smart thing is to do is WHAT OTHERS ARE NOT DOING – Make sure you do not follow the masses. Do what 99% of the people don’t do.

This will be the best path to success for you in the apartment and investment real estate business. Let me tell you, you will be tempted. Don’t fall for it.

The Key to Starting a Business in the Foreclosure Market

There comes a time when the market is so right that a move has to be made. The time is now as the mortgage crisis has created a plethora of foreclosed upon properties that are in need of a business that will be extremely profitable while being enormously ethical. The steps to owning such a business in the real estate side market is going to have to be initiated by you. There are a load of self-help books and self-help themselves gurus that will swear to the maker that you will be swimming in cash before the morning comes. This is all very well and good yet before the life preserver is needed the key to starting up the vessel that will make a profit for the foreclosure business entrepreneurs need to be prepared.

Learn from those who have been in the business and are doing it right now. Suffice to say that although smarts and maturity are required for any business along with the hard work that will run off most of the people in the life of the entrepreneurs, working with the right team will save you time and money.

The key is the drive to be a success and do it ethically and morally. This way one can sleep at night knowing that the foreclosure, inevitable anyways, was made as close to honest as possible. Now the point that is being made here is not to sweep in tucking the wings under the blazer and gift a family the home back – that is not what a successful business person is required to accomplish. Rescuing a family that has gotten themselves into a position to lose the residence is not the fault of the entrepreneur striving to alter his or her business existence. The guilt trips and the sneers will always be there as the bank account swells to maximum capacity. Yes, there is a boat load of cash floating around in the foreclosure market and it is not up for grabs it is up to the smarter investor.

The key to starting a very profitable foreclosure business is right inside you. There is a very fine line between the ones that make it and the ones that end up losing it all. Just what the degree of separation of a success and a failure is can be very difficult to pinpoint and history has shown that very few really know the answer to this age-old question. The bottom-line is that hard work will always be the partner and cannot be a silent one as it must scream at the top of its lungs, win. The first step in starting a business is a business plan and the passion to make that plan into a viable reality. There is so many that start off with a fantastic sales/marketing idea that on paper looks like a bonafide winner, yet it closes up before it has even bought the first property. The key is inside you. Take action.

The Seven Biggest Home Business Mistakes and How to Overcome Them

With the current recession people need a hedge against the rising cost of living. Home businesses are becoming more and more popular. Network Marketing is a particularly good home business model.

With so many people looking to start a new businesses there is a lot of confusion on what needs to be done; and how to do it. Too many people have been misinformed on what it takes to run a successful home-based business. It’s not just a matter of joining a company, getting a website, and BAMM! You’re in business.

Yes you have a business, but is it profitable? How do you overcome the fifty percent failure rate of start up businesses? These are seven of the biggest mistakes a home business owner can make, and how to avoid them.

1. They Build Their Business Like It’s A Hobby.

A hobby is something you do in your spare time, if you feel it. A hobby is fun and costs money to do, and gives nothing back. If you want to run a business you must treat it as such. You have only so much time to build your business, use it wisely. Give yourself a work schedule, and stick to it.

An hour of work is just that, work. Don’t spend your hour reading emails and hoping it will all work out.

Invest your time in acquiring the skills necessary to operate a business, and then use them.

2. They Don’t Follow A Proven System

How can you tell if a system is proven? Results, check to see if people have become successful following it. A proven system will take you from start to finish in an orderly fashion.

Find a system that works and follow it. As the saying goes ‘If it ain’t broke, don’t fix it”

3. They Don’t Get The Right Training

Just like when you get a new job you need to be taught how to do it. You can’t jump in with a lot of enthusiasm and expect long term results.

Motivation and self-help are key factors in running a business. Motivation gets you out the door, or in your home office, to implement your training. But being motivation alone is not enough if you don’t have the proper training.

You need to be taught what you need to do and the order in which to do them. You need specific training from some one that has done it successfully before.

4. They Don’t Build Relationships

Relationships are vital to your business. Without a relationship at best you have a one shot customer.

How do you build a relationship with your customers and prospects? Ask them what they need or want. Then listen to them and try fill their needs. Give them what they want and they’ll come back. Fail to fill their needs and they’re gone.

5. They’re Not Their Own Best Customer

You must believe in your product and use it. Would you dine at a restaurant if you repeatedly saw the owner eating some here else? If the owner won’t eat there why would any one else?

Your product fuels your business, if you don’t believe in it find something you can believe in.

6. They Don’t Spend Enough Time Prospecting

If you’re not prospecting for customers or business leads your business won’t grow. Instead it will die a slow death.

The methods you will want to use vary with your industry. You can take out ads. You can write short articles relating to your product or business. You can even just talk to people about your business.

All three of these methods work, each has it’s pros and cons. You need to find out which way or combination of ways works best for you.

Seventy five percent of your time should be spent on prospecting, twenty percent on training and five percent or less on fixing problems.

7. They Don’t Reinvest In Their Business

Yes, you’re in business to make money. Take some of that money and reinvest. You must spend some money to make a lot more.

Invest in advertising, you need more leads. Invest in training tools the world is always changing you need to change with it. And reinvest your time with your down-line, the more you help them build their business the stronger yours will be.

Those are seven of the biggest mistakes a home business owner can make. Learn to overcome them and watch your business grow.