Real Estate News

It doesn’t matter if you are a broker, agent, loan officer or an investor, what you DON’T know exceeds that which you DO know when it comes to investing outside of the

United States. For most people, this “unknown” is enough of a hindrance to prevent us from enjoying the tremendous upside of investing abroad. 

If you have watched the real estate markets for more than a dozen years, you’ve seen ups and downs before, of course. Why is it then, that THIS particular downturn seems different? Is it the rapid decline of values? Was it the news that Fannie Mae and Freddie Mac were in trouble? Even the most optimistic agent or investor understands that the majority of potential buyers currently suffer from a “deer in the headlights” approach to real estate. Many investors and realtors are frozen with fear and indecision regarding how to clearly capitalize and thrive in the current market. 

Some savvy investors saw this downturn coming years ago. Many did not. Those that did already made the shift in their strategy, marketing, sales and investments to use the slump to their benefit.  

You can too. 

We all start with the premise of not understanding enough about foreign markets in order to make a decision. Therefore, the ONLY decision you can make right now is to the decision to learn about how, where, and why to invest abroad. The fears most people have are normal, but they do not have to prevent you from expanding your reach, diversifying your portfolio, and earning tremendous returns for yourself and your referrals.
Investing offshore can dramatically accelerate your retirement plans and give you the opportunity for a tax-haven previously known only to the ultra-wealthy. 

There are several KEY factors that one should consider to set themselves up not only to survive this market, but to thrive big time. 

1. When one area of the world has a slowing economy, often there are areas which thrive in relation to it. (weakening US dollar, etc.) 

2. Ultra wealthy investors don’t participate in the financial markets the same way the average person does. They don’t necessarily “cheat” but they do set their own rules. 

3. Fear and ignorance of IRS rules keeps most people from even learning how offshore investing/banking/finance works. 

Nearly half of ALL equity funds are not marketed in the

United States. The stringent rules of the SEC have made it too expensive for many companies, funds, and securities to be marketed in the

USA. Most people are unaware that there are savings accounts available with double digit returns in other countries. US citizens are unaware because those banks are not allowed to advertise in the

USA. 

When it comes to investing in real estate beyond the borders of the

USA, these same issues are compounded by fear, lack of knowledge of foreign exchange rates, governments, culture and language.  

When one opens their mind up to the possibility of investing in foreign markets, these limitations begin to fade away. Once the limitations are gone, the opportunities are sure to keep you awake at night with excitement! The possibilities of secure wealth, lifestyle, and a reduced tax-burden are enough for anyone to “get in the game,” learn all they can, and get started! 

Here are the 8 things to INSIST upon when it comes to investing abroad: 

1. Government. After speaking with hundreds of investors, the question of banana republics and dictatorships comes up a lot. When you preview property in a foreign land, check out the history. How did it become a republic? Who was in charge before? What legacy did the previous government leave behind? No matter who is in charge now, there are ALWAYS people and power centers left from previous administrations. Be sure to work with countries with a long history of stability. 

2. Tax Haven. It is important to not only work with democratic governments, but ones that are friendly…very friendly to foreign investors (That’s you!). In the

USA, if a banker does not disclose private information to the authorities upon request, they can be prosecuted. In tax-haven friendly countries, the opposite is true. If a banker reveals private information to the authorities, the BANKER can be prosecuted! A low or non-existent tax rate for foreign investors is preferred. Any lack of banking privacy is a non-starter. For example, in November 2001, the Cayman Islands concluded a tax information exchange agreement (TIEA) with the U.S. that provides for exchange of information relating to

U.S. federal income tax. 

3. Land Ownership.

US land owners take for granted the idea of property rights. Even countries based on English common law don’t have the same protection that we take for granted. Visiting the Turks and Caicos, I found that deeds are the responsibility of the crown and not supervised by a third party. A US-based title insurance company is best for security, peace of mind, and reduces the learning curve.

Mexico, for example, requires a foreigner to co-own property with a domestic person or entity. Yuk! 

Equally important, does the developer “own” the land? Not only on title, but what about encumbrances? Select developments where the land is paid for, that way, any delays in development won’t compound the developers’ finances. 

4. Team. A project is only as solid as the team behind it. When it comes to getting permits, title, surveys, and entitlements, does your project have a manager who is local? Do they have an inside track on the national, regional and local regulations? Does the project manager have friends in the government? Is the developer perceived as a foreigner or a local? Are they using local labor? Is the master plan designed by professionals? Are there any sales? Analyzing the team is as important as understanding the project and you must know WHO you are dealing with. 

5. Language & Culture. Going offshore means you WILL be experiencing a new culture. The only way to become comfortable is to understand that culture, accept the differences and embrace the common elements. With regards to language, be sure you speak it. Using a translator is inefficient and dangerous. Contracts not written in a language you understand is like playing with fire. Even if the contract is bi-lingual, in a court of law, the dominant language is the one that will prevail. 

6. On-site Visit. In order to truly understand a project and the opportunity, an on-site visit is a must. As an investor, I would never trust an agent who had not taken his time and money to travel to the project and “put their feet in the sand.” As an investor, it is a great tax-deductible trip…and gives you first hand knowledge of the area, people and project.  

7. High-end usage. Many investors start out with affordable housing rentals as their entry into the market. It appears less expensive, but management headaches are going to be high. When investing abroad, it makes sense to cater to people of high net worth. They travel more, sale prices and rents are higher, and the wealthy are immune to economic swings. With proper management in place, upper-end properties are safer and more lucrative. 

8. Location. Yes, the old adage, “Location, location, location” is still true when investing in other countries. Understanding values, appreciation, and market demand is very similar to what we do when performing due diligence in the states. For an extra layer of comfort, be sure to invest in properties that not only have great locations but have stellar locations! When investing in tropical areas, be sure to check out the neighbors. The

Caribbean is known for having beautiful resorts residing next to dilapidated shacks. Proximity to activities, shopping, and services is important, so be careful if you find that perfect private island getaway! If it is too far from civilization or any amenities, demand could be weak. 

BONUS:If you truly want to make a TON of money in this marketplace, you need to invest in it yourself. Nothing compares to the credibility of being an owner AND an agent. By owning a part of the project yourself, you set yourself apart from all other agents/ Your referral commissions can increase exponentially when you have not only taken the time to learn about a project, but have the confidence to invest in it yourself. 

I love my country and like having more than one child, I have learned to love other countries as well. Foreign real estate investment and ownership has more…more growth, more tax advantages and more lifestyle. Now is the VERY BEST TIME to learn more, and take action! 

For more information, details or questions, you may contact me at dcrowe@themayanislands.com or call 1-888-732-6224.

 

Take CHARGE of those things which influence your thinking, behaviors and actions.  Associate with like-minded, successful, and responsible people.  They can make a significant difference in not only how you think about money, real estate and wealth, but the association you develop will bring to you more opportunities for finding deals, associates, and financing.

When you look for what could go wrong with a deal, you will always find something.  When we say to ourselves, “I need more education before I make my first offer” we forget that TRUE education comes from applying what we learn, not the raw knowledge itself.  Of course, it is important to know the basics.  It would not be prudent to go out and expect to make money in real estate after simply reading one book in an afternoon.  Expecting to become a millionaire in a weekend is ridiculous. 

However, the bigger danger lies in substituting an excess amount technical knowledge for practical knowledge.  Go to any real estate investment club and you will meet people who have attended 2 or more boot camps, have read a dozen or so books, and have been deluded themselves into thinking they are investors.  They may have been “thinking” about investing for 2 or more years and have yet to get out and make an offer.  If this is you, don’t despair, however.  ALL investors, no matter what their experience, had an “incubation” period where they absorbed knowledge before going out into the marketplace.  This period can be anywhere from a month to a year or more.  This does NOT mean that you are doomed to become a seminar junkie.  But after a while, it becomes painfully clear that more technical knowledge is not the answer.  The REAL problem is our fear. 

Conquering your fear

If you think you are alone in this dilemma, think again.  With over 1 million investors in the United States, there is not a single one who didn’t show concern, worry, and doubt over his/her first deal.  Everyone has doubts.  Your mission is to conquer those doubts by reducing or eliminating as many risk factors as you can.  This is easily accomplished with the following basics:

1. Due your due diligence.  Nothing compares to crunching your numbers 2 or 3 times, and then running them past a more experienced investor.
2. Have a plan “B.”  When markets or financing changes, you need a back up plan.  Without a backup plan, you are opening yourself up to risk.  If you can’t sell your rehab, you better be ready to rent it.  If you don’t have the financial cushion to be a landlord, you better get one BEFORE you start the rehab.
3. Take action.  The paralysis of analysis is the single biggest killer of wealth in this country.  Due diligence is important, but without action, it is a wasted exercise.
4. Be accountable.  Even Michael Jordan had a coach.  Putting your plan into action all by yourself is foolish.  Plan your business thoughtfully.  Think big.  Take small steps and get moving!  Counseling with successful people will save you millions.

Successful people got where they are because they think and act differently than unsuccessful people.  Their attitudes, actions, beliefs, and even their friends are different.  There are people (even relatives!) who always look at what could go wrong, instead of who look at what could go right.  When you have a mentor who believes in you and encourages you to grow, change, get out of your “comfort zone” and go for it, you will definitely experience new opportunities.  The risk will always be there.  How we manage that risk is a critical component. It is important to perform due diligence and “crunch the numbers” on your opportunities.  But all too often, we look back on all the opportunities we missed, instead of reaching out and working towards those that lie ahead.

Below are some resources you might find helpful as you build a better financial future for you and your family.

http://www.dougcrowe.com News, articles, and a weekly radio show.  Free membership into the “insiders” club. Radio interviews with Robert Kiyosaki, Kim Kiyosaki, Robert Shemin, Sharon Lechter, Jane Garvey, Donna Bauer, and more.

http://www.hud.gov/buying/index.cfm         

http://www.habitat.org                                  

http://www.buyers-assistance.com 

http://springboardcorp.com 

http://realestateinvestingcourses.com   

In my 22 years as a real estate investor, I have seen residential, commercial, industrial, mixed-use, and hospitality products rise, fall, slide sideways and return healthy returns for the investors. The United States and the real estate market that supports our economy is the foundation for the majority of wealth in the world.

Until now…

The dark clouds on the horizon are nothing new if you are over the age of 40. You’ve already seen a recession or two, a couple of wars, and lines at gas pumps. What makes 2008 different? Won’t we recover in a few years like always? Isn’t the current decline of the housing market, stock market and increased job loss part of the cycle our economic professors told us about?

Micro and Macro economics aside, there are looming megatrends which are making predictions of a typical recovery harder to predict. History repeats itself. When you study the Roman, British, and Chinese empires, one has to admit that the USA is clearly losing its status as the dominant economic superpower. The meteoric rise of China and India, will overwhelm our spending and investing for the next hundred years. The United States has set itself on a course of self destruction largely due to our short sighted behavior, lack of savings, dependence on credit, and isolationist attitude.

I love Americans. I love my country. When you travel the world, however, you see that the rest of the world is growing, thriving, and expanding, while the USA staggers around and assumes that we’ll grow out of our slump like have during all previous recessions.

This time is different.

With the exponential increase in energy costs, the price of nearly everything is increasing. Coupling inflation (Wow, we haven’t been afraid of that for a while!) with our credit markets and the expansion of China and India delineates our power, prestige, control, and ability to recover. China will dominate the world economy in our lifetime.

• The value of our own dollar has crashed over 40% in the past 5 years.
• As of 2005, over 21% of our GDP was in the financial service segment.
• Housing values have dropped 5-30% across our nation.
• Foreclosures are higher than they were during the great depression.
  Blah, blah, blah….

Other areas of the world are seeing tremendous growth. Nearly 50% of all equities are NOT US-based. In fact, since they don’t register with the SEC, you will never even know about them. You see, there are strict laws about marketing monetary instruments to U.S. citizens…if it doesn’t pass approval, you can’t know about it. Ever hear of a 14% CD? I’m not talking about 1980, but right now? They are available, just not to US citizens. You have to be a “world” citizen to know about them.

Do you know of countries where the real estate has appreciated 36% in the past couple of years? “World” citizens know of areas where the economies are MORE stable than those in the USA and have STRICTER banking regulations that actually make their investments safer. Remember the Savings and Loan bail out of the 80’s? People with $100K or less in their accounts were insured. But, if you had more than that, you lost-big time.

There are hundreds of opportunities in as many counties that are flourishing and whose economic base has not been hijacked by misguided governments and financial corporations. Unfortunately, seeking these out takes more than a casual look on the internet. Worse, your financial advisor is not ALLOWED to even know about these opportunities.

In the coming months, as I travel the world, I will be sharing these with you in the only format I can…a travel log. By sharing with you my currency trading platform (That gives me 5-12% ROI PER MONTH!), international CD’s in the double digits, and other offshore investments, you will discover that the world is getting smaller, and it’s high time we all wake up and become wise to what is happening beyond our borders.

There is nothing scary about investing internationally. The main hurdles will be getting over the fears that our own government and entrenched financial institutions have placed upon us. It is up to you to seek out the truth…not from advertisers, but from the very individuals who are living the dream. I will be introducing you to my friends; friends who have Swiss bank accounts, trade currencies safely, and invest in countries where the currency is strong, and the real estate values are growing. Stay tuned and keep your eyes open.

Doug Crowe
www.dougcrowe.com

A crystal ball would be handy here. While nobody knows exactly when the current correction will stabilize, there are a few fundamentals to watch.

Real estate is still a regional game. The prices, fluctuations, and sales data vary widely by demographics, employment, and infrastructure. There are several large economic factors which sway markets. They are worth watching and are in no particular order.

1. Absorption. There is an excess of inventory in many markets. With thousands of unsold homes by builders and many homeowners wanting to sell, there is more supply than demand. The result is that prices will not appreciate so long as supply exceeds demand. Watch the days on market for homes for sale and builder inventory.

2. Financing. In the last 5-7 years we saw lending institutions lose their professionalism. With the country awash in money, 110% mortgages created irrational exhuberance that has now helped to create the largest foreclosure market since the great depression. The correction in the financial markets is a very complicated issue and has amplified the housing crisis. Interest rates are one indicator. But, the resale of loans into the secondary market is equally important.

3. Employment. If people are out of work, they can’t qualify for a loan. This key statistic drives commercial real estate AND residential and is easy to monitor.

4. Infrastructure. If the community and government provide basic services and maintain roads, airports, and utiliities, then business tends to stick around. When the local and regional governments feel the pinch, businesses look elsewhere to run their shops.

5. Permits. Many builders know all of this information and then some. If permits for new construction increase, that may be a sign that the turnaround is coming. A decline in permits means that we are still on the backside of the boom-bust curve.

All in all, many pundits are saying that the housing market won’t stabilize for 2-3 years. There are permanent changes in our economy that make that prediction even fuzzier. We have survived wars, inflation, and recessions before. We have never had an accelerated energy cost spike like this before. Gas prices affect everything and many economists don’t see those prices retreating very much any time soon, if ever.

Today’s comment is by Erika Nolan, Founding Publisher and Managing Director of The Sovereign Society.Imagine waking up on a sunny Saturday morning to find you can’t use your debit card to buy groceries or pay for gas any longer? You can’t withdraw a single dollar from the ATM. And your bank froze your credit cards. Then you discover that every check you wrote in the past week has bounced. And, you receive a call saying that your retirement assets are frozen. The kicker is that you had over US$1 million dollars in your account. You try to call your bank for answers, but they won’t help you. I know this story sounds like I’ve pulled it right out of the Great Depression. I’ve got news for you…this story is very real. It all happened last month to a US$2.1 BILLION bank in a little community in

Bentonville, Arkansas.

How a Bank “Suddenly” Goes Under
in the 21st Century

It was a very organized attack. On May 9th, the accountants snuck in the back door that Friday night after 5:00pm once the bank’s doors had closed. Little did anyone know the doors were closing for good…And under the cover of darkness, over a hundred FDIC accountants began to systematically dismantle ANB financial headquarters - the venerable US$2.1 Billion institution that had been in business just hours before. In short, FDIC officials were there to pick up the pieces because ANB was about to become the third bank to FAIL here in the

United States in just the last six months. The fourth-largest bank in

Arkansas was about to become yet another sub-prime casualty that choked on their own bad loans and investments.

The unlucky customers of ANB received nothing more than a letter that stated nothing of the bank failure, but rather introduced the “new” bank - Pulaski Bank. Yet, I am sure most customers figured out their bank had gone south long before the formal letter arrived. As of 5:01 PM on May 9th, every single account at ANB was frozen. Money market accounts to trust assets to basic checking accounts…

What FDIC Insurance Really Means
If Your Bank Goes Under

When you hear your account is “FDIC insured,” do you really know what it means? In short, it means the Federal Deposit Insurance Corp. will reimburse you for up to US$100,000 for any one account you hold in your name. If you have a joint account, then both account holders are insured up to US$100,000. You also can secure US$100,000 for each beneficiary in certain accounts (payable on death). (For full FDIC rules see FDIC’s Guide to Deposit Insurance Coverage.) Does this insurance help? Absolutely. But when you have an account worth more than US$100,000…well, that’s how you can lose money if your bank goes under.Also, these days most respectable businesses make well over US$100,000 a year, so that limit is fairly easy to reach. And when accountants poured over ANB’s books, they discovered 647 accounts that exceeded that limit. That equaled US$39.2 million in uninsured funds.FDIC representatives, who I believe must hate their jobs on a regular basis, had to call these unfortunate account holders and tell them what they lost. One ANB client lost US$1.4 million. Overnight. With no warning. And as for the rest…well historically, uninsured deposits recoup 65 cents on the dollar. Plus, it can take years to get your money back. A shocked ANB client said to me: “It’s like [your money] doesn’t belong to you anymore…it’s theirs.”

Make Sure this Doesn’t Happen to You

As we’ve often said over the last 10 years in this business, you can protect yourself from such massive faults in the

U.S. banking system. And one of the easiest ways to do that is to spread out your wealth across several accounts - just in case a bank goes insolvent like ANB did.

Another valuable option is to diversify by moving a portion of your wealth offshore. By banking offshore, you gain an extra layer of protection because historically, offshore private banks have a higher liquidity than domestic banks. And in places like Switzerland and

Austria, banks have stayed solvent for hundreds of years.

Jack Pugsley, a hard money advocate and our Chairman, has a few suggestions about how to protect yourself from the next banking calamity including:1. Check out your bank’s credit rating. Check out the collateral backing up the loan. In the case of banks, you can do this by getting regular credit reports on any U.S. bank from Veribanc.2. Understand the rules, so you know what you’re getting into. You can check out FDIC rules to find out what types of accounts are covered and how much. Click here for the rules.3. If you decide to bank offshore, treat your offshore banker like a domestic banker. Check their credit rating and collateral. Sound foreign banks also protect against the possibility of the U.S. government declaring a bank holiday, or freezing bank deposits, as

Roosevelt did in 1933. It could happen if economic conditions get really bad. Other countries (like

Argentina) have done this more recently. So choose the strongest currencies and countries.4. Above all, keep in mind that bank deposits are loans in a currency. Right now,

U.S. banks are paying less than the inflation rate for deposits, and the interest is taxable. So depositors are losing purchasing power, and if price inflation heats up, which it will, the losses could be substantial.5. Diversify, diversify, diversify…between banks, between currencies, between countries, and between assets (loans, equities, tangibles).Above all, look at a bank deposit for what it is, a loan to the bank. Treat the banker like you would treat anyone who asks you for a loan. You want to know whether the borrower will be able to repay you if he gets into trouble.You never want to wake up one day and find yourself without a bank. But if it happens, a few precautions can help you protect what’s yours. ERIKA NOLAN, Managing Director There are right ways and wrong ways to bank offshore. For tips on where to go, check out my recommended reading list on www.dougcrowe.com, or send and email to doug@springboardcorp.com.

How would you like to be a billionaire? It’s easy. Just move to Zimbabwe. This country’s entire population of over 12,000,000 are billionaires. In fact, many are trillionaires, or even quadrillionaires.

However, be careful what you wish for. As citizens of Zimbabwe have discovered, these riches are a curse rather than a blessing.

Let me explain. The minimum wage in Zimbabwe last month was Z$3.9 billion, and the average workers monthly salary was a magnificent Z$15 billion. Unfortunately for the worker and his family, his whole monthly Z$15 billion dollar paycheck wasn’t quite enough to buy a bar of soap. In fact, it takes Z$10 billion to make a single U.S. dollar as of this week.

That was last week. Prices are even higher today.

You Have to Be a Quadrillionaire to Afford a House

If you think eggs and cookies are dear, real estate transactions are carried out in quadrillions (in case you’re unfamiliar with “quadrillions,” a quadrillion is a million billion, or a 1 followed by 15 zeroes).

Houses in the less desirable, high-density neighborhoods are going for Z$1-3 quadrillion, while houses in better neighborhoods will set you back up to Z$20 quadrillion. But get you bid in now — prices are going up. These numbers are real, and the people have no power to change it.

Zimbabwe’s stock market has historically been a refuge for investors during periods of inflation. But recently stock prices also have soared. The Zimbabwe Stock Exchange industrial index leapt to a new high above 900 billion points last week, from just over 1.2 billion points in January.

That’s what happens during hyperinflation. The Zimbabwean experience is not a new phenomenon. Ever since the invention of paper money, the excesses of politicians and bankers have led to hyperinflation in dozens of countries.

Personal Currency Collection Shows the Horror of Hyperinflation

An associate of mine has a small collection of paper currencies from other countries that achieved this distinction. One piece is a large, beautifully-engraved German 100-mark note from 1910. When issued it was the equivalent of US$25, or roughly 1.25 ounces of gold.

As World War One progressed, the German government began expanding the money supply to pay for the war. By 1920, 100 marks would buy only US$1, or 1/20th of an ounce of gold.

At war’s end, the Germans had to pay war debts, so the money presses began rolling day and night. The government devalued the currency so much that it reached 9,000 marks to the dollar in January 1923. Then just six months later, it was 100,000 marks to the dollar. Then by August of that same year the exchange rate was an astounding 4.62 million marks to the dollar.

My collection contains a piece of German currency printed in September 1923. The September version of the mark was no longer the large, engraved, and very beautiful paper. By then, the German currency was half the size of the current U.S. dollar. It was printed on cheap paper on one side only, and carries the legend, Twanzig Millionen Mark, or 20 million marks.

That 20-million mark note wouldn’t buy a single bite of bread. By the end of the hyperinflation a loaf of bread cost 580 billion marks. And so it goes in Zimbabwe today. A loaf of bread, which cost about Z$15 million two months ago, last week cost about Z$600 million.

Celebrating Hyperinflation’s 132nd Anniversary Here in the U.S.

This year marked the 132nd anniversary of the beginning of hyperinflation right here in the United States.

Faced with the problem of funding the struggling Continental army in 1776, the “United Colonies” decided to issue currency to pay the troops. The notes were called “Continentals.” In my paper currency collection, I also have one of those notes. At the time, Americans started saying “not worth a Continental” instead “worthless.”

Price inflation has existed for thousands of years. It’s been present in every society advanced enough to use a general medium of exchange. And it’s universally feared.

To observe inflation throughout history, you would think it is a blight of nature, like earthquakes, hurricanes and the common cold. Each time inflation strikes a nation, it’s denounced, reviled, and cursed by citizens, economists, and politicians alike. Yet despite the fact that policymakers have fought it for centuries, price inflation survives untouched.

Once again, inflation is rising again around the world, and once again the United States is in the thick of it.

On Wednesday the Federal Reserve Board met to address the nation’s current economic malaise. Once again, Chairman Bernanke announced that he wouldn’t be lowering rates (that is, printing more money) this time.

“Although the downside risks to growth remain,” his statement said. “They appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased.”

Good rhetoric, but I’m afraid it’s too late. The world is already awash in fiat dollars, and more are on the way for the same reason that Zimbabwe’s central bank keeps printing Zimbabwean dollars.

Where Does Hyperinflation Come From?

Johns Hopkins University economics professor Steve H. Hanke, in a research paper published last week about the Zimbabwean hyperinflation explained it:

“The source of Zimbabwe’s hyperinflation is the Reserve Bank of Zimbabwe’s money machine. The government spends, and the RBZ finances the spending by printing money. The RBZ has no ability in practice to resist the government’s demands for cash.”

It is no different in the U.S. The government borrows, and the Fed finances the borrowing by printing money. Like the Reserve Bank of Zimbabwe, the Federal Reserve has no real ability to resist the government’s demand for loans.

The late Nobel Laureate economist Friedrich von Hayek stated it bluntly more than 30 years ago in his essay, Denationalization of Money:

“Since the function of government in issuing money is no longer one of merely certifying the weight and fineness of a certain piece of metal, but involves a deliberate determination of the quantity of money to be issued, governments …, it can be said without qualifications, have incessantly and everywhere abused their trust to defraud the people.” [Emphasis added.]

So, be cautious as you dream of becoming a billionaire. With the help of central bankers, you may just get your wish. Don’t rely on their intelligence or knowledge of economic history to protect you, either.

Central banks are not the solution. Central banks are the instruments that defraud everyday consumers like you. Nor does it matter which candidate gets elected in November. Government spending will continue to increase, as will the central bank’s need to inflate the currency. To understand more about international currencies and the risks of paper-money inflation I encourage you to join The Sovereign Society.

Note: The piece above was written by John Pugsley, Chairman of the Sovereign Society and best selling author.

Looking for a safety valve for your money?

Would you like to know how the super rich defend themselves against the fraud of paper-money inflation?

Land rarely de-values and there are rock-solid methods for insuring that YOUR property never goes down. For methods on insuring that it goes UP, we encourage you to contact us. Yes, the U.S. real estate market has seen a correction. That slide of values probably isn’t over yet. However, smart money and REAL billionaires continue to invest, they just don’t put all their investments in one market. It is a world economy and the smart money is going to the Caribbean. For details on how you can ride on the coat tails of the super-rich, send an email to doug@springboardcorp.com.

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims:

• “Credit problems? No problem!”
• “We can erase your bad credit — 100% guaranteed.”
• “Create a new credit identity — legally.”
• “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

Don’t believe 99% of these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report. There are legitimate and LEGAL methods, agencies and programs to assist you. Filtering out the bad from the good takes skepticism and common sense.

Springboard is hosting a FREE credit repair workshop at its offices on November 12th or 13th at 7 PM CST. Be sure to register by calling 1-888-RE-COACH. The program will be approximately 30 minutes in length and available online. You can also register by going to www.springboardonline.com .

The Scam

Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, most can’t deliver. After you pay them thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money.

The Warning Signs

If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:

• companies that want you to pay a large amount of money for credit repair services before they provide any services.
• companies that do not tell you your legal rights and what you can do for yourself for free.
• companies that recommend that you not contact a credit reporting company directly.
• companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
• companies that advise you to take any action that seems illegal. If you follow illegal advice and commit fraud, you may be subject to prosecution.

You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

The Truth

No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. Doing it properly, consistenly, and with efficacy is what you need to look for. Most of us don’t have the experience or skills to accomplish this. Of the hundreds of companies that offer help, only a handful deliver. To manage, improve or repair your credit, register for our FREE credit workshop. Click here or go to http://www.springboardonline.com and get started. The workshop is on 12th or 13th at 7 PM CST. This workshop is available at NO COST and will walk you through the specific steps necessary to improve your credit. There will be credit coaching assistance available at a later date…THIS workshop is FREE! Remember, according to the Fair Credit Reporting Act (FCRA):

• You’re entitled to a free report if a company takes adverse action against you, like denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
• Each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report, at your request, once every 12 months.
  The three companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report. To order, click on annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can print the form from ftc.gov/bcp/conline/edcams/credit/ . Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. For more information, see Your Access to Free Credit Reports at ftc.gov/bcp/conline/edcams/credit/ .
  Otherwise, a consumer reporting company may charge you up to $9.50 for another copy of your report within a 12-month period.
• You can dispute mistakes or outdated items for free. Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under this law, contact the consumer reporting company and the information provider.

STEP ONE

Tell the consumer reporting company, in writing, what information you think is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request that it be removed or corrected. You may want to enclose a copy of your report with the items in question circled. Send your letter by certified mail, “return receipt requested,” so you can document what the consumer reporting company received. Keep copies of your dispute letter and enclosures.

Consumer reporting companies must investigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.

When the investigation is complete, the consumer reporting company must give you the results in writing and a free copy of your report if the dispute results in a change. If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reportincompany also must send you written notice that includes the name, address, and phone number of the information provider. If you request, the consumer reporting company must send notices of any correction to anyone who received your report in the past six months. You can have a corrected copy of your report sent to anyone who received a copy during the past two years for employment purposes.

If an investigation doesn’t resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.

STEP TWO

Tell the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct – that is, if the information is found to be inaccurate – the information provider may not report it again.

For more information, see How to Dispute Credit Report Errors at ftc.gov/bcp/conline/edcams/credit/ .

Reporting Accurate Negative Information

When negative information in your report is accurate, only the passage of time can assure its removal. A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. There is no time limit on reporting: information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance. There is a standard method for calculating the seven-year reporting period. Generally, the period runs from the date that the event took place.

For more information, see Building a Better Credit Report at ftc.gov/bcp/conline/edcams/credit/ .

The Credit Repair Organizations Act

By law, credit repair organizations must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before you sign anything. The law contains specific protections for you. For example, a credit repair company cannot:

• make false claims about their services
• charge you until they have completed the promised services
• perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees

Your contract must specify:

• the payment terms for services, including their total cost
• a detailed description of the services to be performed
• how long it will take to achieve the results
• any guarantees they offer
• the company’s name and business address

Have You Been Victimized?

Many states have laws regulating credit repair companies. State law enforcement officials may be helpful if you’ve lost money to credit repair scams.

If you’ve had a problem with a credit repair company, don’t be embarrassed to report it. While you may fear that contacting the government will only make your problems worse, remember that laws are in place to protect you. Contact your local consumer affairs office or your state Attorney General (AGs). Many AGs have toll-free consumer hotlines. Check the Blue Pages of your telephone directory for the phone number or check www.naag.org for a list of state Attorneys General.

The information to repair your credit is available at NO CHARGE!

Springboard is hosting a FREE credit repair workshop at its offices on November 12th or 13th, at 7 PM CST. Be sure to register by calling 1-888-RE-COACH. The program will be approximately 45 minutes in length and available online. You can also register by going to www.springboardonline.com . We will give you the tools you need to repair your credit for FREE.

Need Help? Don’t Despair

Just because you have a poor credit report doesn’t mean you won’t be able to get credit. Creditors set their own credit-granting standards and not all of them look at your credit history the same way. Some may look only at more recent years to evaluate you for credit, and they may grant credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.

If you’re not disciplined enough to create a workable budget and stick to it, work out a repayment plan with your creditors, or keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But not all are reputable. For example, just because an organization says it’s “nonprofit,” there’s no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, or hide their fees by pressuring consumers to make “voluntary” contributions that only cause more debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals. No matter what your situation is, you will benefit by registering for our FREE credit repair workshop on November 12th or 13th at 7 PM CST. Be sure to register by calling 1-888-RE-COACH. The program will be approximately 30 minutes in length and available online. You can also register by going to www.springboardonline.com . We will give you the tools you need to repair your credit for FREE. Coaching assistance will be made available at a later date for a nominal fee.

If you are considering filing for bankruptcy, you should know about one major change to the bankruptcy laws: As of October 17, 2005, you must get credit counseling from a government-approved organization within six months before you file for bankruptcy relief. You can find a state-by-state list of government-approved organizations at www.usdoj.gov/ust. That is the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees.

Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.
For more information, see Knee Deep in Debt and Fiscal Fitness: Choosing a Credit Counselor at ftc.gov/bcp/conline/edcams/credit/ .

Do-It-Yourself Check-Up

Even if you don’t have a poor credit history, some financial advisors and consumer advocates suggest you review your credit report periodically

• because the information it contains affects whether you can get a loan or insurance — and how much you will have to pay for it.
• to make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.
• to help guard against identity theft. That’s when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.

Sample Dispute Letter

Date
Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Company
Address
City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received.

This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,
Your name

Enclosures: (List what you are enclosing)

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Register for our FREE credit repair workshop on Nov. 12th or 13th at 7 PM CST. Be sure to register by calling 1-888-RE-COACH. The program will be approximately 30 minutes in length and available online. You can also register by going to www.springboardonline.com . We will give you the tools you need to repair your credit for FREE. Coaching assistance will be made available (At a later date) for a nominal fee at this workshop.

By Doug Crowe
www.dougcrowe.com

Money, credit, and living…it seems that there are seasons in our lives where there is often more debt than income.  This can create stress, anger, indecision, and sometimes poor decisions.  If you find yourself in a situation where there is more debt than income, you may be headed for trouble.  It is never too late to fix some of your challenges.  However, time is NOT on your side.  The more you do to attack the situation early on, the better for you in the long run. Take a look at the three stages of financial trouble, assess where you are and take ACTION NOW!

The checklist below will help you to take an unemotional look at where you are and where you are headed.  Financial challenges are a major cause of stress, divorce, and heartache.  Your situation, while unique to you, is not uncommon.  Millions of Americans are one or two paychecks away from bankruptcy and the skyrocketing foreclosure rate is at its highest point since the great depression.

While these statistics might not shed any light on YOUR living needs for today, the following checklist and action steps might help to delay or even cure your financial woes.  Remember, above all else, you cannot solve a permanent problem with a temporary solution.  All financial struggles relate around three simple issues:

·         Income            (How much you earn or bring in)

·         Expenses         (What do you spend and how do you manage those expenditures)

·         Credit              (Your ability to borrow and REPAY your obligations)

INCOME
How much you earn is often viewed upon as a decision by an employer.  You can ask for a raise, work more hours, but for most people, “the man” determines how much you earn, where you live, what kind of car you drive, and where you vacation (If at all).  For many people, this is simply an accepted fact of life.  For others with an entrepreneurial personality, they have more control over their income.  If an entrepreneur wants to earn more money, they can do more work, roll out a new product, or otherwise try to affect the level of their income.  They are called entrepreneurs because with this variable income stream comes risk.  Employees normally don’t have the risk of wide swings of income, and with that security comes limitations on income.  Sales professionals who work for companies also share the risk/reward curve of entrepreneurs and have a greater degree of control for their income.If you are an employee, you should continually ask yourself WHAT you can do to get a raise, promotion, or get more hours in to create more income for yourself.  There are many books on this subject and it behooves most people to reflect and review their job and career at least on an annual basis.  Taking control of your income can be frustrating, liberating, or downright exhilarating.  The operative phrase is “taking control.”  Without control, you will always be at the whim of the economy, the company or your boss.EXPENSES
When it comes to expenses, studies have shown that most people do not have a formal or even an informal budget that they live by.  Most Americans simply spend what they earn (or for many, they spend MORE than they earn!).  The attached budget should be filled out by anyone who wants to get a handle on their expenses.  By tracking ALL of your expenditures, you can find areas for savings.  Many people use their budget skills as a hobby.  Clipping coupons and shopping for bargains not only makes fiscal sense, but it can be fun, too!Use the budget process to understand your spending habits and take ACTION on what habits you can modify, replace, or cancel.  Not knowing where you are is a fatal mistake most people make when trying to affect any change in their financial health.  Just as it is impossible to plan a trip without a starting point, planning to create and stick to a budget is fruitless without an honest evaluation of where you are today.CREDIT
The largest “double edged sword” on this list is your credit.  For those people who have mastered their credit, they can live a bountiful life by paying off consumer debt and carefully employing asset-based debt.  Knowing the difference and being judicious with both of these instruments can easily make or break a family fortune. Simply stated, consumer debt is any debt that used borrowed funds to purchase items that are expendable or depreciate in value.  This includes food, rent, vacations, consumer goods, automobiles, utilities, etc.  When a person borrows money for an asset that depreciates or disappears, depending on the rate they are being charged, end up paying 1.5 to 2.5 the value of the goods or services.  Look at any financial statement on a car loan and you can easily see how that $20,000 vehicle cost you over $40,000 during the life of the loan.  With items that are consumed, the price is infinitely higher.  Cut back or eliminate all debt associated with consumables or any item that depreciates in value.  From a pure mathematical point of view, it can save you hundreds of thousands of dollars.PHASE I
“Financially I’m not feeling very well”
Symptoms

• No savings
• Living paycheck to paycheck
• Using one credit card to pay off another one
• Credit scores have dropped recently
• Large unexpected expense arose

PHASE II
“Financially I’m very ill”
Symptoms

• I’m late with a rent or mortgage payment more than 30 days
• I have recently had service (phone, utilities, other) turned off temporarily
• All my credit sources are tapped out (credit cards at maximum)
• Credit scores are so low, I cannot establish new credit lines
• Large lapses in income

PHASE III
“My finances are on life support”
Symptoms

• Notice of default or behind on payments 3 months or longer
• Feelings of hopelessness
• Thoughts of drastic solutions (lottery, arson, etc.)
• Illogical denial of the situation

Treatment & Cures
Save some amount of money each month.  Start with $10 and lock it away.  Do this every month and develop a HABIT of saving some amount of money.  While the amount may not affect your situation immediately, the habit can.  Next year increase that amount by $10 more dollars and before you know it, you will have a savings account worth thousands of dollars.

When living paycheck to paycheck, people find the strategies of savings and budgeting extremely difficult.  By developing the savings habit, you will be forced to give up $10 of expenditures.  The choice of that sacrifice will be yours.  It could be 2 packs of cigarettes, a lunch or taking a walk once a week instead of driving a car.  The effect will be small, financially, but the habit of reducing your expenditures will become one of control.  Your first few months may be painful, but eventually, you will embrace the habit and use it as a force to grow your financial intelligence.  Earning a raise, maneuvering for a promotion or getting new training for a new position will also help to set you up for an increase in pay, of course.  However, most Americans spend every increase they get, so be sure to develop the budget, start the savings plan, and manage the expenses before and during your journey to increasing your income.

Paying off credit card debt should be a crucial goal for everyone.  When that debt is associated with consumables or depreciating assets, the objective should be to:

1. Restructure high-interest debt to low-interest debt
2. Pay off that debt entirely
3. Use a debit card OR develop the habit of paying off your cards EVERY month
4. If you are unable to develop either habit in #3, you should lock away your cards and use them only for emergencies

Understanding and improving your credit scores takes time, patience and perseverance.  Prompt payment is a sure way to keep your scores high and your ability to borrow healthy.  If you think you will have to be late with any payments, the best time to notify the creditors is BEFORE you are late.  Often times, creditors can defer payments for you.  But, they almost never do this after the fact.  Open communication and responsible, honest communication is the key to success.

Improving your scores can be done over time.  Visit the following sites and get a FREE credit report from each of the three agencies; www.experian.com, www.transunion.com and www.equifax.com.   Get help from your banker, accountant, or other trusted advisor to understand and interpret what is on there.  The key to improving your scores is to get the bad information off of your report.  Check for inaccuracies, old data, and wrong addresses.  Identity theft is rampant nowadays and reviewing your history is important.  You can dispute any bad or negative information to the bureaus.  The fair credit reporting act states that a creditor must respond to your inquiry and prove the information is valid within 30 days.  A clever trick often used by consumers is to dispute EVERY piece of bad information the day after Thanksgiving.  Since the 30 day period between Thanksgiving and Christmas has many people taking time off, and the postal service often slows, many negative items on reports get deleted simply because the creditors can’t respond in a timely fashion.

When it comes to the psychology of financial trouble and foreclosure the devastation can be tremendous.  A majority of divorces occur because of financial issues and the tension caused by these woes spill over into nearly all areas of life.  Most experienced business owners will tell you that life is not about the ups and downs, but how you manage the frequency and pace of change.  It is never a matter of “if” a challenge will show up…it will.  All that matters is the attitude and plan you have in order to cope with those issues.  Ask anyone who has recovered from cancer about financial stress and they’ll tell you, “I thought I had problems when I lost my house, but when I recovered from a major illness, my perspective changed and nothing else seemed as important anymore.”  Indeed, money comes and goes.  Fortunes are made, squandered, and created again.  Your situation may be bad and it may get worse.  The fact remains that as long as you have your health, you can ALWAYS recover financially.  Over 70% of self-made millionaires in this country have been broke at least once in their life.  Their ability to recover and THRIVE in the face of adversity is the ammunition they use to win the financial battles in their life.  The book, “How to stop worrying and start living” by Dale Carnegie has been credited with changing and pacifying the anxiety of millions of people.

In summary, prevention is the best cure for any illness (financial or physical).  Below are the steps you need to take to prevent, treat, and cure your financial illness forever.

1. Start a savings program TODAY.  It doesn’t matter how much.  Start with any amount and stick to it.  Increase it each year and NEVER touch the account. 
2. Create a plan to increase your income.  Train for a better job, become invaluable at work, work more hours, start a part-time business, and continually strive to earn more.  You are worth more than you are paid by most employers-it is up to you to become difficult to replace.
3. Budget your household.  Use the household budgetizer to understand WHERE you are and where all that money goes.  You cannot plan a trip to financial prosperity if you don’t know where you are today.
4. Cut back on unnecessary expenses.  Use the budgetizer as a game!  Have fun saving money and use your financial goals of savings to help you in other areas of your life (health, environment, etc.)
5. Be proactive in your communication.  Don’t let bills slip by without contacting your creditors.  It doesn’t guarantee they will be any more pleasant, but you’ll feel better knowing you were professional, responsible, and polite.  Ask for help if you need it.
6. Restructure bad debt.  Transfer balances of high interest cards to low interest cards.  Start and stick to a plan of reducing and eliminating all consumer debt forever.
7. Monitor and improve your credit scores.  Contact the bureaus and initiate a credit repair program right away.
8. Read about success.  Every month read a story of someone overcoming adversity.  It will not only inspire you, but you may get an idea that you can use to make lemonades out of the lemons in your life!

Doug Crowe
Springboard Academy
www.springboardcorp.com

Below are a selection of books both real estate and non-real estate related.  These books have been extremely helpful in developing my skills as a real estate professionals.  Some of the authors I have personally met and interviewed on my radio broadcast, others have not.  However, all of them have nuggets of wisdom that I guarantee you will find enlightening, beneficial, and instrumental in your journey to financial independence.

-Doug Crowe

Title                                       Author(s)                    ISBN

How to Win Friends &                    

Influence People                               Dale Carnegie                            0-671-72365-0

How to Have Confidence
& Power in Dealing w/People            Les Giblin                                 0-13-410671-7 

You Were Born Rich                         Bob Proctor                              0-9656264-1-5

Think & Grow Rich                         Napoleon Hill                              0-87980444-0

*Rich Dad, Poor Dad                       Robert Kiyosaki                          0-96438561-9

Cashflow Quadrant                          Robert Kiyosaki                          0-9643856-2-7

The Millionaire Next Door             Thomas Stanley                           0-671-01520-6

The Magic of Thinking Big             David Schwartz                          0-671-64678-8

High Probability Selling                  Werth & Ruben                           0-9631550-3-2

How to Negotiate Successfully in

Real Estate                                       Tony Hoffman                          0-671-49775-8

Spin Selling                                       Neil Rachham                             0-07-051113-6

How to Manage Residential

Properties                                          John T. Reed                             0-939224-25-9

How to Manage Real Estate

Successfully—in Your Spare Time   Albert J. Lowry                           0-671-24829-4

Landlording                                       Leigh Robinson                         0-932956-16-5

Nothing Down for the 90s                 Robert G. Allen                          0-671-72558-0

Tips & Traps When Buying a

Home                                                 Robert Irwin                               0-07-141829-6

Tips & Traps When Selling a

Home                                                 Robert Irwin                           0-07-141830-X

How to Make Big Money in

Real Estate                                        Tyler G. Hicks                        0-7352-0116-1

Fix It and Flip It                                Hamilton & Hamilton                0-07-142148-3

Real Estate Loopholes                      Kennedy & Sutton                   0-446-69135-6

Why Aren’t You Your Own Boss?    Edwards & Economy                0-7615-1537-2

Nickerson’s No-Risk Way to

Real Estate Fortunes                         William Nickerson                    0-671-55143-4

Personality Plus                                 Florence Littauer                      0-8007-5445-X

106 Mortgage Secrets All

Home Buyers Must Learn                Gary W. Eldred                       0-471-26395-8

Endless Referrals                              Bob Burg                                 0-07-008942-6

Before talking to Realtors, its best to know what YOU want. Make sure you have established a CLEAR goal of the type of property you are looking for, the geographic area you are targeting (based on your customer needs) and the price range. You are positioning yourself as a professional. In order to get OTHER professionals to want to work with you, you must portray an image of experience and confidence (even if you are just starting). So often, we hear of Realtors qualifying the buyers. This is understandable, of course, because they need to be sure to bring a qualified buyer to the table. If they did not, they would certainly waste precious time showing the wrong properties to the wrong people. Therefore, we need to take care of this phase rather quickly. From the outset, you must establish that you are NOT a typical buyer. Within the first few moments of the conversation, the best tactic to employ is to answer the qualification question BEFORE it comes up. It makes total sense to talk to the BROKER, first. The owner/manager/broker of the office knows all of the agents and is best suited to assist you in connecting you with the RIGHT agent. The largest numbers of agents are ideally suited to work with the typical home-buyer and NOT an investor. You must do everything in your power to avoid wasting your time talking to agents who are not trained, nor have the aptitude to deal with the investor mindset. Here are a couple of tactful and powerful phrases you can use: “Mr. Broker, my team is purchasing about a property or two each month for our portfolio. We pay all cash, and our contracts will never contain a mortgage contingency. With that in mind, we also expect to purchase somewhat below retail price, which agent would you recommend for us?” “Mr. Broker, my business relies upon buying fixer-uppers and selling them within a few months. In order to do this, I am looking for an agent who can help me find those handyman specials, and has the ability to sell them for me. The only possible challenge is that we work fast, and need to have our agent match our pace. Qualification is not an issue, as all of our offers will be 100% cash without any mortgage contingency. Which agent would you recommend for our needs?” Let them know that you are a serious buyer and that any time they invest with you will not be wasted, as long as they are professional and can provide you with excellent, quality investments.

Here are a few “pointed” questions:

• How long have you been a Realtor?
• Do you work with other investors?
• What do you like about working with investors?
• Other than the MLS, what methods do you use to find properties?
• I am going to focus on an investment strategy that allows me to establish some instant equity by buying properties strictly from motivated or distressed sellers-do you work with such sellers?
• What type of profits/deals have you been able to achieve for your other investors?
• How many investors do you work with?
• Do you have any references from investor/buyers?
• Do any of these investors rehab properties?
• Do they also re-list the homes with you or your office after the rehab is completed?
• Are you an active investor?
  • If yes, are you in the buying mode right now?
  • If yes, how do separate what you buy from what you bring to your other investors?
  • If not, where would you invest right now? Why?
• If we enjoy working together, what would I have to do to get my name at the top of your investor list?
• It sounds as though we can make a bunch of money working together, let’s set a time to meet so we can discuss our mutual goals in person, would next Tuesday at 2 PM work?

By being upfront, engaging, and cordial, you will not only develop rapport and respect, but you will eventually build long-lasting relationships that are a vital part of your financial future as a real estate investor. Using Realtors doesn’t cost you money-it saves you money.Doug Crowe
www.dougcrowe.com