Mentor, Mentor on the Wall
by Matt Scott

So you think you need a Mentor. Let’s see if you do..

Do you have the role of a Mentor and Personal Trainer confused. A personal trainer will call you and hold you accountable. They’ll ask you what you did today and what you ate. The personal trainer will show up and scream at you to GO! GO!… PUSH.. ONE MORE REP…. JUST ONE MORE!! Nope.. one more! Do it now!

Most investors that strongly desire a Mentor really want a personal "REI" trainer. They’re not looking for a true Mentor. Here’s how to know the difference…

A Mentor points and give direction.
A Personal Trainer points and says, "Pick this up & give me 10 reps!"

A Mentor says "Follow this road. It leads to your destination."
A Personal Trainer follows you on the road and yells, "Go..Go..Go!"

A Mentor meets with you occasionally to discuss your progress & offers mid-course correction.
A Personal Trainer calls you daily to make you progress.

A Mentor says "Good job. Hard work pays off."
A Personal Trainer screams "WORK.. WORK.. WORK.."

A Mentor holds his values & morals in high regard.
A Personal Trainer holds your hand every rep of the way.

A Mentor gives you advice learned by experience.
A Personal Trainer gives you a routine learned from an infomercial.

A Mentor gives you knowledge and leverage to create wealth.
A Personal Trainer gives you a payment schedule that’ll cost you a fortune.

A Mentor is not a teacher but more like a grandparent to share valuable experiences. 
A Personal Trainer is not a teacher but more like a babysitter.

A Mentor says "Follow this path and clear your mind."
A Personal Trainer says, "Will your check clear?"

A Mentor offers the map that leads to your goal. 
A Personal Trainer offers a map that leads to their bank account. .

A Mentor says, "Invest in yourself."
A Personal Trainer say, "Invest in me and I can get you there."

A Mentor receives satisfaction in your achievements.
A Personal receive a check every week.

A Mentor looks to see if you have goals and character.
A Personal Trainer looks to base his goals on your bank balance.

A Mentor is not your counselor or therapist.
A Personal Trainer is more like your Mother-in-law on steroids.

A Mentor should not be called when you’re depressed, unmotivated or seeking what to do next.
A Personal Trainer should be called when you need a kick in the pants.

A Mentor is guiding you through the roads he’s traveled.
A Personal Trainer has never been fat but he’s read about it!

A Mentors asks you, "How do you plan to contribute to your fellow man?"
A Personal Trainers asks, "Will it be MasterCard, VISA or America Express?"

You should not depend or request your Mentor to:

• Train you.
• Give you "forms".
• Loan you money.
• Teach you daily lessons.
• Complete your to do list.
• Set your priorities.
• Determine your goals.
• Call or Check in on you
• Give you their resources.
• Baby-sit you.
• Motivate you.
• Or listen to you whine.

So, do you need a mentor or trainer?   Beware of some "Trainers" calling themselves "Mentors". They don’t even know the difference. Follow the guide above and you’ll be able to determine their true colors.

This article was written by Matt Scott of Dealmaker’s Cafe.  If you would like to learn more about real estate investment strategies and techniques that work then you should visit http://dealmakerscafe.com

Let me ask you a question:

What’s stopping you from buying a property?

One of  the most common answers is:

“What if I can’t find a tennant?”, if you are buying and holding.

Or “What if I can’t find a buyer?”, if you are flipping or wholesaling.

The answer is the same for both questions.

There are ALWAYS people looking to rent or buy homes.

It always has been and it always will be that way.

I know that you know that but still you are not conviced, right?

So, let’s take a closer look at the reasons why you wouldn’t be able to find a tenant or a buyer for your property:

1. The price is too high.

2. The neighborhood isn’t appealing.

3. The property itself.

4. There is no marketing plan in place.

If you can’t find a tenant for your property then you’re likely falling into one or more of the above categories.

Let’s start with A.

The property itself.

With demand for what it is you’re selling you are almost guaranteed success.

Pretty obvious right?  Amazing how this point is often overlooked by investors and business owners.

So, obviously, you want to invest into properties where you know there is demand.

Think about this for a minute.

If you are renting to students, where is the demand for housing?  That’s easy! Close to the college or university, right?

Not complicated.

But what about your typical residential property.  Where is the most demand?

Well, the most demand is always going to be in the starter home market.  It’s the most affordable and it has the most number of people looking for it.

Ask yourself, what are the typical starter homes in your community?  Town homes, maybe even a Condo?  Which is it?

There are always families looking to get into a good starter home.  Shelter is a basic need after all.

If your property falls into the category of the market where the most demand exists you reduce your risks.

Instead of focusing on a “good deal” focus on buying into demand.

That small detail changes everything.

Next time I’ll address the second excuse: “the area isn’t appealing”.

Until then,

Keep raising your Real Estate IQ.

I know how it feels getting started in real estate investing. You get this overwhelming feeling that there are so many things to learn and to do that you become paralyzed. Well, I have good news and bad news for you. The good news is that you are not alone. Every single successful real estate investor and entrepreneur I know has been through the same exact situation. The process is the same for everyone. The bad news is that you have to overcome these feelings, you, actually, have to overcome yourself, if you want to get started and succeed in real estate.  

Let me back up for a while and ask you a question. “Why do you want to get started in Real Estate Investing?” Obviously, you are looking for something new. Maybe you want to change your career path. Maybe you want some additional income. Maybe you want to build your retirement so that you don’t have to worry about those golden years. Whatever it is, make it big as it will assist you to overcome the obstacles in the beginning.

So, why most of the people hesitate to get started in real estate investing?

You see, this overwhelming feeling you get, causes the fear of failure. Since, nobody wants to fail the result is to procrastinate and eventually quit!

Stop getting ready to get ready. Stop spending a tremendous amount of time trying to find the perfect place to start.

The most important thing in real estate investing, especially when you get started, is to focus. There are many different strategies to create wealth in real estate but don’t go after every deal that comes your way. At least not in the beginning when you are getting your feet wet.

Many beginner investors will read a book or attend a 2-day ‘boot camp” where they will learn 10 different real estate investing strategies (!), get pumped up and ready to take over the world. The problem starts when they try to implement every single strategy they have learned … on the same deal!!

It doesn’t work this way. Pick and choose one buying strategy and one exit strategy and stick with them until you get your first deal. Don’t get distracted.

So, how are you going to overcome all these obstacles? Find a mentor and educate yourself. For example, go to your local REI Club and look for the few seasoned investors in the room (as most of the people are beginners). Ask them questions and pick their brain. Ask them for referrals about RE agents, contractors, mortgage brokers, insurance agents, attorneys, CPAs etc. These investors have already their Power Team in place.

Another important thing is to give yourself permission to succeed.

Most people give themselves time to fail not to succeed.  If they don’t buy real estate or they don’t make money during the next 30-45 day, they quit. Real estate investing is a business and there is going to be a learning curve. Researching the market, evaluating properties, negotiating with sellers and buyers, closing the deal, all of these are skills that you have to develop. And this takes time. If you haven’t done this before expect to make mistakes. The secret here is to minimize this possibility by finding a mentor, continue educating yourself and surrounding yourself with like-minded individuals that will support you during your real estate journey.

As a Real Estate Investor, especially a new one, you should always take care of your credit.

First of all, what is credit?

Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later date.

Your credit power as an investor is heavily affected by your credit score.

So, how can you increase your credit score?

You can begin with a basic technique such as budget planning, but the truth is it is more difficult than it seems. This is even more true with making financial transactions using your credit card since it basically offers you lots of convenience to purchase items you normally would be unable to afford if you had to rely on actual cash to make the purchase.

Below are suggested steps in which you can help achieve a more stable personal finance system and eventually become debt free.

Stop Spending!

It seems like the most obvious thing to do, right? And at the same time is the most difficult one!

With access to credit card, it is relatively convenient for an individual to splurge today without realizing the financial burdens that he or she will have to face in the coming days.

When you already have thousands in debt, stop adding up to your existing debt. Especially major purchases that you will never get any return on your money (e.g. a big plasma TV). Check out this funny video about credit card debt:

Create a Budget Plan

This applies for anyone who wants to establish a healthy financial flow. However, budgeting seems to have been neglected by most families and as a result we spend more than we actually make. But it is not too late to get started on a budget plan yet. Doing so will help you identify areas of your spending habits that lead to wasteful spending and can be eliminated from your budget plan. Start tracking ALL everyday expenses for 30 days. You will be shocked when you realize how much money you spend on things that you thought they are not important.

Creating a budget plan will also enable you to appropriate the more important expenses and make them a priority in your list. This is an important method in financial planning that people often fail to undertake with using credit card.

Reduce your Credit Card Interest Rate and Increase your Credit Card limit

Another way that you can help eliminate your credit card debt is by decreasing your credit card rate. This can impact your monthly cash flow if you have a large personal debt by reducing the interest rate.

Call the customer service of your credit card (you can find the phone number on the back of your card) and tell them that you are customer for X years and you want to make a purchase with this credit card. Then, ask “how much can you increase my credit limit?” After they tell you, ask “since we are at it, what’s the best interest rate you can give me?” You will be amazed what you can get just by asking.

Now, not all credit cards will increase your credit limit and/or reduce your credit card interest rate. If that’s the case ask to talk to their supervisor! Emphasize that you are a customer for X years. Many times you’ll get what you want.

Do that for ALL your credit cards.

This will increase your credit score significantly.

It’s worth the time and effort especially in this economy.

Some of the benefits of increasing your credit score are:

- Stronger purchasing power

- Qualify for home loans

- Qualify for car loans

- Better interest rates on home, cars and credit cards

- Peace of mind!

Until next time,

Keep Raising Your Real Estate IQ!

This is my first blog and am really excited! So bear with me… Here are the most common mistakes new and maybe not so "new" investors make:

1. Lack of planning.

Most beginner real estate investors don’t have a set of investing criteria. Some of them could be the type of the property they will invest in, the area they will invest in, the price range of the house, the cash-on-cash rate of return. All of the above except for the cash-on-cash rate of return can be determined by a market research of your area. First set your criteria and then find a house that fits these criteria. Not the other way around.

2. Not having a Power Team in place.

Many investors don’t realize the importance of building a team of professional experts. At the very least, you’ll need one real-estate agent, an appraiser, a home inspector, a real estate attorney, a lender, an accountant and a contractor or handyman. Trying to do everything by yourself will only slow you down and probably will cost you a lot of money in “mistakes”.

3. Having the wrong people in their Power Team.

Don’t let just anybody in your team. Ask for references and interview them. Ask them if they own investment properties themselves. A real estate agent who has invested in real estate can see the investor’s point of view which is different than a regular buyer’s. Do you think that an accountant/CPA may know all the tax deductions for a real estate investor if he is one himself?

4. Not having an experienced mentor to assist you.

A good mentor can save you a great deal of time, money and help you avoid costly mistakes. At the same time keep educating yourself. Attend workshops in your local Real Estate Investing Club (Hint: you may find your mentor(s) there).

5. Not treating investing as a business.

Real Estate Investing is a BUSINESS! Let me say that one more time, Real Estate Investing is a BUSINESS. That means you should have a business and a marketing plan at the very least. Your business plan doesn’t have to be elaborate, but have it written so that you are clear on your goals and how to get them. Go back and review it every 6 months. Bottom line is treat Real Estate Investing like a business and it will pay you like a business. Treat it like a hobby and it will COST you like a hobby.

6. Not having and following a step-by-step system.

Many investors “go with the flow”. Having a structure and a system will assist you to avoid bad deals, and speed up your transactions. A system is what distinguishes the self-employed from the Business Owner. A mentor, education, a business and a marketing plan with clear investing criteria and taking ACTION will assist you to create a successful System.

7. Underestimating repair and holding costs.

New rehabbers and fix ’n’ flippers after they have read a few books and watched a couple of TV shows go out to become investors. In my opinion, rehabbing is one of the most “dangerous” real estate investing strategies especially in this economy. If you are not a seasoned investor you have no business getting involved with fix ’n’ flip or rehabbing. It’s very easy for someone who is just starting out to underestimate repair and holding costs. In this case, best case scenario all your profits are gone. Worst case scenario, you go to foreclosure. Real Estate Investing is not only rehabbing and buy and hold. Educate yourself on other investing strategies. That way, you’ll have more options and exit strategies.

Now, obviously there are other things that someone could add to this list, but if you could avoid some of the the above you could skyrocket your real estate investing career.