Saturday, September 24, 2005

Final (Thank God!) Day at the Seminar...

Got up even later this morning and got the the seminar at around 7:45am. I wasn't the only one straggling in, so the speakers didn't start until 8:00am. My brain just hurts at this point...

Only 2 speakers today. They are the heavy-hitters, so they are speaking for longer.

First up is a guy that was living in a one-bedroom apartment, mowing lawns for a living until a friend recommended him to a bank to do a rehab for a foreclosed property. I just love hearing the stories of how folks get started in real estate. All the current gurus were either (1) backed into a corner by financial troubles; or (2) accidentally tripped and fell face-first into real estate.

Anyway, this guy ended up having an opportunity to buy an apartment house, so he did it. Turns out that multi-family dwellings are (1) easier to get financing for; (2) bring in monthly cash flow (called "rent" to you & I) and (3) appreciate over time (usually). So you get two bangs for you buck...monthly checks + appreciation of your investment over time. This is great strategy, and the speaker got everyone excited. Even me. However, my brain was full after the previous two days and all the zeroes involved in his examples scared me away. Maybe a future deal, but I'm not ready for this yet. No sale.

Over lunch, I talked to a couple that I had met in a previous real estate event. They own 1/2 a duplex, so they were telling me about the trials and tribulations of being a landlord. This seems to be a reccuring theme: It's great to own rental property, but having tenants sucks. The wife also has a sister in San Diego who owns a 3 bedroom home that she bought for around $180K about 8 years ago that is now valued at $850K! That's how crazy the west coast real estate market is. No wonder there's all the buzz about the real estate bubble.

Last speaker was the heaviest hitter. This guy speaks at events with The Donald. As in Trump. This guy actually retired about a year ago, but came back to work in order to donate all his income for a year to charity. He's currently doing quite a lot for the Biloxi folks, as he hails from that area. As in renting 2 Mack trucks and filling them with food and equipment to the tune of about $1 million.

This guy was a great speaker! Energetic, gave us good information, got us involved, answered questions well, and (most importantly) gave out free stuff. Hey, it's always good to get free booty. Keep your booty call jokes to yourself folks...

He had no real speciality, but rather gave us some overall strategies and really pushed the "you can do it!" spiel. In a honest, unpatronizing way. He mentioned some strategies that I had never heard of before and offered a guarantee: Make a deal within 90 days of buying his materials and he will refund the price...DOUBLE. Gives a little extra incentive, huh? And for a competitive individual (like me!) throws down the gauntlet and just begs to be met with action. Sale. Yes, I bought it.

I'm going to be reading/listening to real estate material from now until Christmas! But as the "coaching" speaker said, "There are three types of activities: low dollar, high dollar and lifetime value." Low dollar is stuff that isn't helping your bottom line, like watching TV. High dollar is generating leads, making offers, etc. Stuff that will hopefully bring in the money. Lifetime value is education, spending time with your kids, etc. Stuff that makes you a better person or feeds your soul.

I think this little bit of wisdom is something I will remember for a long time...and it was free.

6 comments:

Cagey said...

I would argue that watching TV isn't always "low dollar". There is something to be said for a hobby that a person can enjoy if it relaxes them. :-)

I completely agree with the "owning rental property is great, having tenants sucks". For the most part, we were lucky with our tenants, but we were just that - LUCKY.

Goofy Girl said...

Regarding TV or hobbies: The coaching dude actually mentioned a fourth category "high value". This is stuff like watching for an hour when you're stressed or mowing the lawn if you really enjoy it, or can ponder high dollar activities while doing it.

I would also argue that depending on what type of TV you watch, it can also be lifetime value (i.e., PBS, Discovery Channel, etc.) if you learn something you can use later.

michael said...

I have to agree with Cagey, watching tv is in the eye of the beerholder. For me, watching history channel is food for the soul. My opinion of shows like survivor or other negative "reality" shows is, well.....low dollar.

I just read your last three days, and I cant believe you had time or energy to post over the wkend. I saw very little of randy, so he must have managed without you fairly well. I figured he'd be over with alex all the time, just to split the supervision duties. :)

Any news on the existing front? How long until this house you own goes on sale? And email me the address, will you? I still dont know where it is.....Id like to drive by.

Cagey said...

I should mention, too, that I have a hard time just watching TV these days - I get antsy and must do something else at the same time, like knitting, tidying up the house, going through paperwork, or working on my stupid photo project.

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