| Nanaimo Real Estate Investors Club Newsletter
June, 2010
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Victoria Club
Meeting
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Tuesday June 29, 2010
3020 Blanshard, Victoria
7pm - 9pm
$15 at the door
(no charge for annual members)
Speaker: TBA
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 Hi folks!
Lots of education this month.
All 4 of the news items to the left attempt to give us some advice on what to do or how to best look at RE investing situations so that we head for success. Give 'em a read.
The article at the bottom about RE Investing Gurus is the article I've always wanted to write. Folks who keep learning and are afraid to take action provide a great income for most gurus. What's the magic pill that prompts people to take action? I'd buy one of those!
Our speaker at the June 1 meeting (see article below) Jason Roll of 4 Winds Roofing, will educate us about roofs. If you are looking at potential properties, getting ready to make an offer, you need to know this stuff.
Check out Cornell's latest opportunity below. If he shows up at the
meeting, I recommend you chat with him. He's got lots of ideas and
energy. Inspiring!
This meeting will be the last one 'till September, 2010. As usual I'm taking the summer off. In addition, I'll be taking a lot more time off from running the NREIC. Terry O'Toole will take over running the club in the fall. He's an investor in Nanaimo who has supported the club for the last few years. I trust he'll continue to offer you all good value in the meeting and with the newsletter. I want to concentrate my efforts in the Victoria area from now on. It's always been worthwhile for me to come up to Nanaimo to run the meetings. You folks are friendly, curious, helpful and eager to do more with your money and time. The kind of people I like to hang out with.
See you Tuesday!
Gord Knox
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June 1, 2010 Meeting
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We'll get some useful education this month. Jason Roll, owner of 4 Winds Roofing, has agreed to share his knowledge and experience with us. He is an expert on roofing systems and will orient his talk to RE investors. Some questions he'll answer are: - How do you tell how old a roof is from the ground?
- How do you decide if a roof needs replacing?
- What options are there when choosing a new roof?
- How do you calculate the cost of replacing a roof?
7 - 9pm Beban Park Rec. Centre 2300 Bowen Road Room 8 (right off the breezeway) $10 at the door |
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| OPPORTUNITIES
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Hey, Cornell has yet another property you can use to eventually own an executive home in a great area. Cool! If you don't do lots of research, negotiate hard and get real about what you can afford before getting into this deal and Cornell ends up renting it to someone else while keeping the option money, don't come complaining to me!
Cornell Pidruchney says:
I have a lovely 2-year old executive house with suite
in THE PROPERTIES area of Duncan, available immediately for Rent-to-own.
You can view photos
at: www.wesellhomesbc.com
With rent of $2,200/month, less $500 rent credit, less
$800 suite rent, a family could live upstairs in 3BR, 2 bath in style and it
would only cost them $800/month!
Cornell
Pidruchney
Direct:
250-756-9239 Toll-Free: 1-866-756-9239 cornellp@4pillars.ca www.4pillars.ca
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Do Real Estate Gurus Really Want You to Succeed?
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By Dave Dinkel
Do real estate gurus really want you to succeed may sound like a very peculiar question but let's look at the logic behind this question. As a perspective real estate investor you are constantly bombarded with very different ideas from real estate gurus. Some have years of experience, but many more have just a couple of years experience and have only operated in a frenzied environment.
I remember a guru selling a program that was touted as going further than any other program in the industry. The difference was his specific strategy of having various vendors paying for the advertising and actually making money on the home sale even if the property wasn't sold. I admit it sounds good and it may have worked in a white-hot seller's market, but it had no chance of working in the flat markets we have had for the past few years.
The guru still kept pounding on the success of his program - which may have occurred five years ago. After the presentation, one person who bought the course because he was having a sale in a few weekends asked what I thought. I said that the idea was old and the new wrinkle on "selling vendors" to participate was a twist but I didn't think it would work in this market.
Three weeks later the student called me after his open house event and explained that he could not get any vendors to participate and not a single vendor who would pay to advertise. So he paid for the advertising himself and it was a total bust with only three people coming for the full two days.
I suggested he try the round-robin auction method we have used for 15+ years. He did just that two weekends later and had 53 people visit and sold the property the following week. I can guarantee that if you simply put a sign in the yard (FSBO or Realtor's), run the usual newspaper ads, put it on Craigslist, etc. you are hoping for a lightning strike called a qualified and motivated buyer. Using a systemized marketing program that also accumulates a hungry buyers list is much more effective.
The enormous value of this investor finally selling his property was not just getting rid of it after being on the market for 7 months, rather it was the buyers list he developed. Maybe 95+% were neighbors and investors, but the others were real perspective buyers and a few of them actually had loan approvals.
The investor called the guru marketing the course and complained about the result of what had happened using the instructions from his course, and the guru offered the explanation that, "It's a bad market". He did offer to personally do the sale for the investor for a nominal fee of $3,000 saying that it was a small price to pay to get his property sold and how many leads he would get!
If you have been to a national training or "boot camp" you will agree that you are often besieged by additional speakers with different specialties, all with the intent of selling you additional courses. It's not impossible to spend $20,000 - $30,000 at a single event and in some cases $50,000+. With all this money trading hands, why would the gurus want to see you fail? Frankly, if you succeed in doing deals, you will take more of their time than if you do nothing. They already have your money - it is purely economics and good business in their minds.
Just buying courses over an over again only gets you closer to broke, not closer to doing deals. Doing deals takes the courage to get started and to not be afraid of what happens. Gurus know that having you rush to the back of the room now makes money for them but not just from this initial purchase. Once you are in the system, you will now need more and more information and finally a personal mentoring course to really get you started.
These gurus already know that the road to success in real estate investing is dependent on the fortitude, courage, and experience of the individual investor. Which is the most important of these attributes? Probably, it's the courage to get started and the fortitude to keep going. However, the real asset that is priceless to any investor is experience and that comes with doing deals, not just buying more courses.
This may be obvious, but it is a "catch 22" - how do you get experience without getting started and how long does it take to get experience once you take a leap of faith? The quickest and least expensive way is to hire a mentor. This is the final sale for the gurus because this is where the money is and the last chance to sell a product. Unfortunately, the mentoring is often delegated to a former student or a phone bank of professional assistants in another state.
What the newbie or experienced investor really needs is to have someone locally look at his every deal before he puts it under contract and nurture him through the closing and on to the next deal. So simply put, the longer the investor takes to get started, the more courses he will likely be buying to give himself a sense of security. In reality, the only thing he gets is a deep feeling of insecurity.
It constantly feels like he can't get enough info to get started and only one more course will be all he needs. Not so, he has enough to get started today if he has the courage to fail again and again until he succeeds. He did this as an infant learning to walk, but then he didn't know the word failure or fear so he kept doing what needed to be done to get what he wanted - walking on his own and look how far he has come.
This is not a blanket statement or indictment about all gurus in the business. Most are honest people fulfilling the needs of other investors. It is rather an observation of what happens to investors who are perpetual beginners and never get to achieve their personal dreams of financial freedom through real estate investing. So when does it end for a wannabe investor? It should end if you find yourself not following the exact steps outlined in the course(s) you have already bought or you find you buy courses and don't even open them.
Dave Dinkel has been a real estate investor since 1975. Dave's focus in the past few years is educating the public in a manner that doesn't' amount to paying for a master's degree. Dave's recent contribution to this end is his e-course called "48 Ways to Create a Massive Buyers List" which can be seen at http://www.MakingaBuyersList.com
Article Source: Do Real Estate Gurus Really Want You to Succeed? |
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