Archive for March, 2011

How to Wheel and Deal With Private Money (And Save Money on Advil)

March 28th, 2011
Adam J Davis asked:




Yes.

It’s time to visit this subject again…setting up private money deals. One of the best things I can provide for you is a road map through the minefield so you don’t step on any of the ‘Bouncing Betty’s’ that I did. Here’s the typical process most investors go through with their deals:

* find deal
* scramble around for funding
* Hopefully close

Does this sound at all familiar?

I can already hear it: “but Adam, I’m just finding end-buyers and assigning the contract.” That’s great. If you can play the arbitrage game with real estate – more power to you. However, I’ve rarely seen investors make this a consistent and reliable stream of income. A deal here and there, but what you really have with that model is a marketing company not a real estate company, with small profit margins relative to what you get when you buy and sell or buy and hold for cash flow. You can do 100 transactions and make $1,000 on each one or you can do 4 transactions and make $25,000 on each one. Personally, I’d rather do the 4 transactions if I wanted to make $100k. Unfortunately, most people would rather go for the route that gives them the most headaches for the least profit. But, I stopped trying to change people’s minds a long time ago. Ok, so here’s the best way to go about profiting with private money

* Funding
* Deal
* Sure-fire close

The difference is in steps 1 and 2. And, just so you know, it’s easier to raise private investor money before making offers than it is after the fact. What you do is put a plan together, put your opportunity in front of investors, get funding commitments/proof of funds, make offers and close deals. Bing. Pow. Zing. I’ve duplicated and used this business model over and over and over again to flip houses in one of the worst economic areas in America. If I can make it work, you can too (and maybe even better). If it wasn’t for private money and this deal structure, I wouldn’t be in real estate right now. You see, there was no other way to buy and sell houses or acquire other, larger properties, here in Michigan where I live and work if there was no “cash.” Money talks and B.S. walks. Do yourself a favor and write that on a piece of paper and stick it on your bathroom mirror so it’s the first thing you see in the morning. You’ll get a lot further in your real estate investing business if you keep it in mind. Is the prospective private investor serious? Well, did they commit funds? If so, they’re serious. If not…money talks and B.S. walks. Is the buyer for your property serious?

Well, did they put down a nice size earnest money deposit? If not…money talks and B.S. walks. It’s pretty relieving to come to grips with this eternal business truth. It’s even more of a relief to know that you can put a lot of ammunition behind your deals when you raise money before launching off and putting in offers. Oh, and FYI: it doesn’t matter if you’re working with bank owned, or home owner (short sale, etc.) – Money talks and B.S. walks. I’ve gotten several very lucrative deals over the last year (resulting in roughly $80,000 in incremental profits) because I was able to put down LARGE earnest money deposit (EMD) checks. I’m talking $10k EMD’s on $50k houses or $20k EMD’s on $100k houses. I’ve even made offers with an EMD check for the full amount of the offer. How would like to see that one come across your desk? You’d be intrigued wouldn’t you? Yep.

Thus the power of my “Ready. Fire. Aim” approach to private money raising and profitable real estate investing. Your Advil bill will go way down when you adopt this approach – as un-needed stress and anxiety will dissipate quickly.

You’ll be glad you did.

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Stress and its Relation with Physical Pain

March 27th, 2011
Dvora Ifat asked:




“Why is this happening to me? What did I do to deserve this sore knee / headache / back pain?”

We tend to ask ourselves these questions when we are in physical pain. We usually think of pain as unrelated to us,as if there’s nothing we can do about it except learn to live with it, and perhaps alleviate it with pain-killers.

Physical pain creates lots of mental stress: when we hurt, the pain and the suffering is all we think about. Pain fills our mind, and we stress out. And since we don’t know what to do about the pain, more and more pain management clinics open.

I’m going to risk being regarded as a weirdo, and make the following suggestion:

Look at pain in a different way. Treat it as a messenger who is here to tell you something, to give you a message. See pain as a teacher, as your body’s way of giving you information.

“Are you crazy?!”

Before you commit me to a mental hospital, let me tell you why I believe the above is true:

Physical pain is the result of emotional pain, and emotional pain is the result of a certain view we have of the world around us. Let me give you an example:

Two years ago, my foot suddenly started hurting so bad I couldn’t put my weight on it. It was nighttime, and my kids had to help me get to bed. The following morning I woke up and wanted to go to the bathroom, but I still couldn’t walk.

Since I know from my work as a kinesiologist that pain is merely a messenger with a message for me, I sat myself down and checked with myself what could have caused the pain.

I remembered that a few hours before my foot started hurting, I went to my Aikido lesson – a martial art I wrote about in my last article. During the lesson, the teacher worked with me, but I just couldn’t do the technique the way he thought I should.

So he stopped the lesson and started shouting in front of all the students that “some people just won’t understand what you show them and are incapable of doing even the simplest things”. I didn’t say anything, but I was definitely HURT.

I was hurt emotionally, and several hours later, I also hurt physically. I was in so much pain I couldn’t put my weight on my foot.

When I sat down in the morning and put two and two together, the physical pain and the emotional pain, I realized that in order to rid myself of the physical pain, I must do something about the emotional pain. And in order to rid myself of the emotional pain, I needed to see why I was hurt emotionally.

Why was I hurt when the teacher told everyone I wasn’t good enough in Aikido? Admittedly, I’m nowhere near as good as he is. I’ve been practicing for two years, while he’s been in this business for twenty or thirty years. I was doing my best, and that’s what counts.

I realized that he was angry out of frustration, and he was frustrated because he couldn’t explain what he wanted me to do. This frustration was his own business, and so was the anger that resulted from it.

HIS. Not mine.

True, he shouldn’t have yelled at me in front of everybody, but it was still because of his issues, not because I was at fault. In short, the whole event was about his issues, not mine.

What I had to do was realize this, and decide whether I wanted to keep taking his classes or not. Should I keep walking down this road, or look for another teacher?

So I realized that the anger and frustration were his, and decided to keep taking his classes. And you know what? A couple of hours later, I could walk.

I hadn’t taken any pain-killers. “All” I did was deal with why I was hurt emotionally, and I found a different perspective from which to look at the event, one that would allow me to feel all right about it. The pain disappeared as soon as the cause for it disappeared. It was there to tell me something, and when I had dealt with what it had come to tell me, it was no longer needed, so it simply went away.

When we regard pain not as an enemy, but as a friend or teacher who’s come to point our attention to some emotional issue, it stops being a cause for stress. Instead, we can thank it, and sit down to figure out what it’s come to tell us. What should we pay attention to? What do we need to change in our life?

I do this all the time, and my body “speaks” to me all the time. When my body has something to tell me, it signals in the only way it can – through pain. When something hurts, I understand that I need to see what’s going on, and when I do it, the pain leaves. So I say “thank you” – I thank the pain for pointing my attention to where it is needed.

When we adapt such a view of our pain, we can remove another stress factor from our life. But not only that – we can also transform pain from a stressful, non-understandable enemy into a loving teacher.

Migraine Headache

The Cure For Back Pains

March 27th, 2011
Kam Malhi asked:




If you constantly feel back pain and have finally realized that it is a great cause for concern, here’s a quick guide on how you can have it cured the conservative way.

Muscle relaxants or ointments are the most common cure for back pains. Not only are ointments effective, they also make your body feel the effect instantaneously. Ointments are used to soothe the muscles in your back and therefore it is easily improvements right after it has been applied.

Another common cure for back pain are pain killers, or over the counter medicines. Over the counter medicines need not the prescription of doctors. Because they are generic they can be taken by anyone experiencing back pains so long as they adhere to the right dosage. Needless to say, pain killers are used by those people who cannot stand the smell of muscle relaxants and ointments.

Exercise can also be another way to cure back pain. It is best done with the supervision of health doctors and specialists. Once your body has adapted to regular exercise, your bones, muscles, joints and nerves will also adjust and will therefore become more flexible. When this happens, it is more likely that you will not feel back pains as easily as you used to.

Another effective cure for back pain could also be physical therapy. Physical therapy gives you first hand experience at having your muscles, bones, joints and nerves aligned or cured from pain. Physical therapy also strengthens your muscles and allows it to become relaxed and more reflex.

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