So, without further ado, let me help you put this into perspective.  Suppose you were a sincere aspiring Real Estate Investor who, back in 2008 or 2009, purchased some short sale educational program.  It may have been in the form of books, CDs, DVDs, or seminars.  It also probably cost $500.00, $1500.00, $2500.00 or more.  Let’s assume that everything went along as planned; you diligently studied, comprehended and applied the “full court press” to this endeavor. 

If you did exactly as you were told and the wind was blowing in the right direction, you started to buy properties from short sales.  Good for you.  Now, 2-3 years later you are compelled to look back on where that has taken you.  Knowing what we do about the U.S. housing market in retrospect, you can probably conclude that your properties would now be in default, if not foreclosure.  Why?  It is because you didn’t see the forest through the trees.

Simply buying properties without an intelligent real estate investing business plan, will keep you busy, but in the long run you will be broke!  The point is: You have to understand market trends and all that they represent. 

In previous articles I have commented extensively on “demographics” and how they play into the “bubble” we experienced and its subsequent “burst.”  Understanding how we got here in the first place can and should directly influence the REI business decisions you make today!  One reason is that the key to knowing when and how the real estate market will rebound lies in understanding these basic, historically proven principles.

I recently produced a program for beginners and experienced Real Estate Investors alike who want to do it right the FIRST time.  It’s called the “Real Estate Investor’s Guide.”  Interestingly, this entire program speaks very little of techniques but, rather, aids the student to rise above all of the hype; to understand what the really big REI Gurus have known for years.  Many lost fortunes in real estate over the last few years.  Yet there were those who lost little to nothing and are building on their REI wealth today.  Why not be among those who are able to clearly “see the forest through the trees?”

High in the Sierra Nevada Mountains there are trees that grow out of the solid granite hills.  Some of these pines are hundreds of years old.  It impressed me just how much was being accomplished in what appears to be less than favorable growing conditions.  In nature, things die consistently, yet life prevails.  This is in spite of severe weather, development, pollution, etc. and life just keeps on.

When I looked at these trees growing out of a crack in the rock I reflected on the many adversities that we encounter that make growth seem impossible.  In fact, these trees grow so slowly that, if watched, we might have given up on any chance of their survival.  Their growth is almost completely imperceptible due to the time it takes.  Yet they ARE growing! 

When we contemplate our personal growth, we must be mindful that results don’t usually jump out at us.  We live in a society of instant gratification.  You can pick up the phone, order a pizza and 30 minutes later have it at your door: hot out of the oven and just the way you like it.  Life, however, is not like that.  Results often take a lot more time than we would like to have it.

Measurable growth comes in time.  If we are confident that our mission is realistic, one of service to our fellowman, and our motive is pure we will achieve our goals.  Regardless of the circumstance, life will prevail.

Now, when we decide to launch a new business we must remember these principles.  Professional growth also takes time.  Growth may seem imperceptible, yet when properly educated and mentored, it does happen.  We often need an extra helping of patience. 

As a leading real estate mentor I have seen so many students come to me with a “quick-fix” mindset and that’s why I thought I would comment on this subject.  In conclusion, I want to say that there is definitely sound basis for hope.  Life is stronger than death.  Focus and determination will help us to thrive regardless of environmental hazards and setbacks.

Recently a study by Portfoloio.com and bizjournals ranked the nation’s 50-largest metro areas for their stress levels.  The uncertainty of the economy and instability of government weighs heavily on the multitudes of the unemployed as well as the rest of the population who see their retirement accounts dwindle and(if unemployed) savings disappear. 

Furthermore, a recent Gallup Poll reported that 40 percent of workers nationwide experience stress daily and 50 percent (and climbing) of the unemployed experience the same.   The poll revealed that nearly half the U.S. adults have felt the escalating stress levels over the past five years. 

So what’s the answer?  Simply put, we need to learn to be proactive and take that action immediately!  Most psychologists will agree that there are positive steps one can take to alleviate stress in our life.  Psychologist, Phyllis Watts, offers the following tips that will come in very handy when you are ready to begin the process:

• Focus on what is positive & good in your life right now.
• Ask yourself: “What do I feel grateful about today?”
• Have people around you for support who can both commiserate and be positive.
• Don’t watch the news too much.
• Set small attainable goals for yourself and possibly scale back on your expectations. 

As the nation’s leading real estate mentor, I advocate first focusing on personal development before taking on the world. In my company we first work on the student’s mindset and prepare them to think like genuine entrepreneurs.  One is truly not ready to start a business until he/she learns proactivity.  All of the real estate investment training in the world will not ensure success.  That’s why I am often quoted as saying that “attitude is everything.”

So are you through reacting to all of the negative reports from the media?  Are you ready to take action?  Good!  Accentuate the positive and become proactive by starting today.

Recently, a friend of mine, Rhonda, wrote a book on overcoming fears and she explained the process very well.  Rhonda has appeared on Oprah to speak about this as well as star on the Emmy-award-winning show: “Starting Over.”  She is known as “America’s Life Coach.”  Notice how she breaks down our fears and perceptions in bite-sized chunks.

First you begin with the comfort zone.  This is where we feel no apprehension, yet absolutely NO change, good or bad can occur.   The next zone is the stretch zone.  In this zone we dare to venture maybe a few times daily.  We may have to get out of bed when it’s cold or cook dinner when we really don’t feel like it.  Further out from our area of comfort is the risk zone.  This is where we get really uncomfortable.  For us, it may be starting a new school, job or social group.  It could be dating for the first time in a long time.  Either way, we don’t feel comfortable and often hold back from entering this arena.

Finally, on the outer reaches of our courage we find the die zone.  This means that we might prefer death to going through whatever we are facing.  All kidding aside, for some this could be asking the boss for a raise, proposing marriage or any number of other daring propositions. 

Now, you’ve probably heard the adage: “Ask and you shall receive.”  I believe that with my whole heart.  Simply asking can get us the results we seek….if we only dare.  However, it takes courage; for some, greater courage than others. 

The point is: If you want to change your life for the better, you will need to be accustomed to the feeling that comes with stepping out of your “comfort zone” and entering the “land of the unknown.”  Billions do it every day.  Why not give it a try?

Where do you want to be in 2 years, 5 years or 10?  Who do you want to become?  What are your fears?  Here’s your homework: Seek to clearly identify your fears.  Once you have done this, your job is not done.  You will next need to prepare yourself and begin to tackle those fears head on.    Develop a habit of living and thinking in an area of stretch and even risk.  That’s what successful business owners do every day.  Only this way will you be able to make the transformation from ordinary to extraordinary.

C.J.:      This came from a personal setback in my life in 2007 on the heals of two decades, making millions as a highly successful Real Estate Investor .  I thought I wanted to retire, but when you find a niche that you love, it’s different.  That’s when I founded Invesdoor.com.

EVAN:  What was the most difficult part for you when you were starting your business?

C.J.:      Like everyone else – fear of the unknown.

EVAN:  What was the best part for you when you were starting your business?

C.J.:      The knowledge that I was doing what I truly wanted to be doing.  I don’t live for my job.  In fact, I was set to retire in my 40s, when I went through a divorce.  Now, I am still in business…but I don’t work, because I am doing what I want with my life.  I love helping sincere Entrepreneurs to take their businesses to the next level.  It gives me great satisfaction to watch their delight as they realize their dreams.

EVAN:  Can you provide some basic tips for entrepreneurs who are interested in starting their own business?

C.J.:      Professional growth MUST follow personal development.  The old wisdom was that anyone setting out to start their own business must have education, capital, contacts, market research, etc.  These are all good to have, yet more important than all of them combined, is to start with the proper mindset.

As one of America’s leading entrepreneurial Mentors, I discovered most aspiring Entrepreneurs believe that obtaining those other assets will insure their success in business, yet most new businesses fail in the first couple of years.  My discovery was the actual reason why they fail and here it is:  “It’s not what you have, but who you are.”  This is a scientifically sound concept that is backed by hard evidence.

Of course the entire notion runs very deep into the universal pattern of growth that I call the “internal growth dynamic.”  In fact, I have written extensively on this subject, copyrighted it, I lecture on it and hope to have a full length book for which I will seek a major Publisher by the end of 2011.

EVAN:  What do you think entrepreneurs struggle with the most when starting their business, and how do you think they can change that?

C.J.:      As I stated earlier, fear of the unknown can be paralyzing.  The solution: get a mentor; not just anyone who calls himself a Mentor, but a genuinely qualified one.

My advice is to seek a qualified mentor in your industry; one who has 1) ample experience, 2) measurable success, 3) is a good teacher and, perhaps, 4) has a vested interest in the success of your business.  The business model for my mentor for life! partnership plan is built this way.  It’s working and the results we are seeing are phenomenal.

EVAN:  How does an entrepreneur know they are buying into the right business?

C.J.:      It all starts with your core desire.  You must fully understand why you want to be in business.  “Making a lot of money” is merely the byproduct of doing what you believe in and doing it well.  It should not be your motive.  Being of service to your fellowman is what is really rewarding.  That is how you live your life with significance.

So examining your motives should preempt the rest of your business plan.  It’s like Covey said; “Begin with the end in mind.”

Whether or not green rehabbing is for you – you decide.  Even so, there is a principle here that has to do with more of a long-term perspective as opposed to instant gratification.  Don’t weigh your choices by short-term gains.  What I mean is:  “Green” is a way of life.  It’s not just using specific materials and working with municipalities to qualify for green programs.  It is a sustainable way of running your REI business in every facet of management.

For example, the Sierra Club has suggested some positive ways of going green at work that are both environmentally as well as financially rewarding:

1)      Use Energy Star fixtures and bulbs along with timers and motion sensors to turn off lights when not in use.

2)      Turn computers, monitors and printers off at night.

3)      Buy recycled paper and supplies….then recycle it.

4)      Don’t buy plastic cups, plates or cutlery.

5)      Rethink your travel.  Be conservative and carpool when possible.

6)      Telecommute whenever possible.  This will save $100.s per year!

7)      Create a healthy office environment, especially if your office is in your home.

These are some great tips.  You will likely have the most success implementing these tips once you resolve to think green and sustainable in everything you do.  Although,  may seem to be the expensive way to go right now, your real estate investment business cannot afford to ignore the green revolution.  From a long-term perspective, it’s the only thing that makes sense.

Back in late 2008 I founded the Mentor for life!™ which is a division of Invesdoor Corp.  The mission was and is to provide support to the new REI business long after the techniques of another “program” wear off and become stale.  The reason for mentioning this is that, since starting that company, I discovered an amazing truth.  What I discovered explains why it is that many sincere folks NEVER seem to have success…even after spending small fortunes on seminars and all of the subsequent materials they were sold.

This “truth” is really quite simple.  It has to do with the fact that most people purchase a “magic pill” program and set out to build a business without a foundation.  As you know, it really doesn’t matter how nice a location, how fine the materials, or even the quality of the craftsmanship.  If I home is built without a foundation…or even over an inadequate foundation, it will be, frankly, worthless.  What a waste of time, effort and money!

Can you see that happening to an aspiring Entrepreneur seeking to start their own business?  They listen to the webinars, attend seminars, buy the books, CDs, DVDs, etc. any never, ever make it happen?  In past articles I have written about the necessity of personal development BEFORE professional growth.  This involves a conditioning of the mind to prepare it to respond to the training we purchase.

While some REI Gurus sell old, stale, outdated techniques that no longer work, some programs are pretty decent and a good value.  Either way, it would be a complete waste of money to purchase another program without a solid foundation upon which to build.

So, there’s the simple truth I was talking about.  It’s not a secret, yet it may as well have been, because millions of people have not prepared a foundation upon which to build.  While my area of expertise is most directly related to real estate investment, what I have just written about crosses industry lines.  This is a universal truth.  In a subsequent article I will get into some specifics that will give you a better idea of the building materials you will want to use on your foundation.  Stay tuned.

You have, no doubt, heard of this expression.  And you like the concept.  But do you understand what it actually takes to create a genuinely win/win scenario in which both parties leave the table content?  Well, it all starts with intention or motive.  True win/win is generated when mutual respect abounds.  Both parties must be legitimately concerned with the welfare of the other.  Neither can enter a negotiation with bad intent.

Sometimes, I have seen negotiations where one of the parties arrived with the wrong intent and, by the time it was all over, they had changed their tone completely.  This comes from inaccurate perceptions and ideas that can be slowly worn away by a negotiator who is truly skilled in the art.

As a leading real estate mentor, I teach my partners to recognize the psychology behind everything people do or say.  There is often a good reason for certain behaviors and developing the ability to identify these is a great asset to the real estate investing professional as well as everyone else inhabiting the planet.  I have always found human behavior to be fascinating and as a result have studied the subject intensively.  What I found is that there is not only a reason for most things people say and do, but there are very constructive ways in which we can be a positive influence…even during a negotiation.

I like Steven Covey’s principle which states: “Seek first to understand, then to be understood.”  Everyone wants to be understood!  When people don’t feel understood they act alienated and that can kill a productive negotiation instantly.  Becoming a good listener is one of the first habits we should form.  Of course, this is a life lesson.  But in the business world, without the ability to listen empathically, our effectiveness will be marginal.  It is truly amazing how much we can learn when we simply “shut up” and listen.  Often we pick up information about the other party that is essential to putting the deal together.

In my mentorship program, the psychology of the deal is a subject that comes up frequently.  The principles of basic human conduct and thinking are timeless, and somehow apply to each negotiation we set out to complete.  With that being said, it should become more obvious now, how a true win/win deal is accomplished.  Negotiation is an art and mastering it is something I believe we must all learn sooner or later.

I am so grateful that my company, which I formed in late 2008, was centered on the premise that there’s strength in numbers.  Basically, our strength comes from the large network of fellow entrepreneurs who operate their own businesses under my label.  We currently have national coverage and are soon branching out to a few other countries whose economies are similar to the U.S. market.

The power of a network cannot be over emphasized.  If you have your own real estate investing business, consider the following three networking tips that can make your chances of success far greater.

1. Circle of influence – This represents your team.  These are your supportive contacts, peers, with whom you can share new ideas.  The way the market has been changing, you have to make time for brainstorming in order to stay ahead of trends.  Your team can also contribute invaluable observations like giving constructive criticism, too.  Who, outside of your circle of influence, can you rely on for that?
2. Strategic alliances – If you are a small business owner, I strongly advise you to work with other individuals and complementary companies who may augment your services and respect you.  They will give you the word-of-mouth advertising that you need – just as you will do for them.  Thus, you can become more profitable and experience quicker services derived from your strategic alliances.
3. Exchange system – This refers to a referral or bartering system. All parties agree upfront just what will be exchanged. This system should be a win/win for all participants. Fairness and trust will ensure its success.  With the right intention, your exchange system will grow and prosper.  Seek those who truly embrace the concept of providing honest services and products for a fair price.  This is essential as bartering leaves a lot of room for abuse.  Be careful.

While the foregoing suggestions are an excellent way of expanding your business, it is important to stress the fact that a lot of time and energy can be spent if there is not a high level of trust among all participants.  That’s why I have created a non-competitive environment among my students and partners.  To me, I have no time for greed and don’t wish to spend my time policing those whom I cannot trust.  A tight network of close associates is a precious asset for any small business.

In this article I want to discuss something called the “Preferred List”. This is a list of the funds that a brokerage recommends to their clients.  It is the selection of funds that their research has determined are the absolute best in the industry for the firm’s clients. Sadly, in a lot of cases this list is made up of fund families that paid some sort of extra consideration to be on the list.  It’s also interesting how often the firm’s proprietary funds end up on that list. Hence, if you are a client of Merrill Lynch, let’s say, you will typically see quite a few Merrill Lynch funds on that list.  This is a simple case of allowing how much you get paid to drive your decisions on what funds to recommend.

Another issue that arises in that industry is that many savvy Financial Advisors will leave their large firms to go out on their own as independents.  The main reason for this is to increase their “payout” on commissions. The payout can easily double what they earned working for the big Brokerage house.  Interestingly, many Financial Advisors, as well as their clients, think that they have access to more products by working with a major firm. That is a huge misconception.  In fact, the opposite could be more likely.

The fact is that today, there exist an enormous amount of conflicts of interest in that industry.  When you invest through a major Wall Street firm, you probably assume the funds that are on the “Preferred List” are there because the firm’s research department did extensive due diligence and arrived at the conclusion these funds are the absolute best investment vehicles for your money.  This is just one example why the small player in the stock market may not be making any significant gains.

Real estate, on the other hand, offers a wonderful thing called “leverage.”  We can discuss that another time.  Meanwhile, give me my “brick and mortar!”