Posted on May 23, 2008 @ 11:23 pm - Written by BawldGuy
I have an appointment Saturday morning, then off for the weekend. When someone flies in from a couple thousand miles away, you make time for ‘em. Being from the Old School, I’ve always kept in mind that it’s about our clients, and not about us. Few things in life are more important than the successful outcome of a client’s Purposeful Plan for retirement. It’s at least on the A-List.
Since the NASDAQ tumble several years ago we see several people a year who’ve finally decided to move forward and make up for lost time and lost savings — sometimes a lifetime’s worth. I empathize with folks facing the challenge of traveling roads they thought they’d never see again. But like the bumper sticker says, (kinda sorta) Life Happens. We can either pick ourselves up, scream at the injustice and win bigger and better than ever, or wave the white flag and slink away.
I’ve met so many good people who’ve raised themselves higher than they were when Murphy struck. The next time out they changed three very important factors.
They created a Purposeful Plan instead of just investing ‘cuz it was better than not investing.
They funded a Sominex Account with a serious attitude of generosity — might’ve saved ‘em last time.
They brought on a knowledgeable, experienced real estate investment pro who’d already seen the movie a few times.
The best part is, we’re nearing the end of this latest market correction to end all market corrections. (Aren’t they all?) Our finds in Texas (Dallas area, Austin) and Kansas City (new stuff maybe) are superb opportunities to build the retirement for which you’ve always planned.
Take the first step toward makin’ that retirement a reality and contact me. Use the widget saying Contact BawldGuy — you can’t miss it. I’ll get back to you and your retirement will be that much closer to becoming the reality you’ve thought it could be — should be.
Meanwhile, back at BawldGuy Ranch, after my appointment tomorrow I’m comin’ home to make one of my famous three-day weekend sandwiches and kickin’ back. First the sandwich then the theme song for the next few days.
Posted on April 26, 2008 @ 12:03 am - Written by BawldGuy
It’s never a good day when I find it necessary to tell someone I can’t take them on as a client. Sometimes it’s ‘cuz they find themselves in quicksand and need help — but they’re too far gone. Most of the time though, it’s ‘cuz they’re under capitalized. They either want me to help them invest with 0-5% down, which I won’t do period, end of sentence, or they’ll have zip, zero, nada cash reserves to establish their Sominex Account.
As I’ve said dozens of times here, no Sominex Account means we can’t work with you. Though it’s designed to help the client sleep when Murphy makes his inevitable visit(s), it’s also there so I can sleep, know what I mean, Verne? I don’t like those weird dreams when I’m stressed.
Still, to those for whom I can’t help for this reason, and who obviously have more courage than is safe, I offer the following. Read the rest of this entry »
Posted on April 7, 2008 @ 9:51 pm - Written by BawldGuy
Countless times on these pages I’ve admitted my addiction to the process of taking real estate investors from ‘now to retirement’. Of course, there are nearly an infinite menu of investor flavors. There’s the experienced veteran. The investor who’s owned their first property for quite awhile, but hasn’t experienced a tax deferred exchange yet. Obviously there’s all the variations in between.
But my all time favorite real estate investor? The first timer. Get ‘first timer juice’ flowing in my veins and I’m good for quite awhile. Talk about a potent fix. They ask more questions, have more anxieties, are more conservative, searching for ‘lake serenity’, or real fire breathers, braver than is safe. Sometimes all at once. They also offer insight at times which makes me stop and think. They’re unfettered by experience, good, bad, or indifferent, so often bring a fresh take to the arena.
The questions almost always are the ones they should be asking. Many of their queries require a crystal ball, but they understand that — they just want a professional and experienced opinion. Fair enough.
How long will it take to get these properties rented?
Do I include insurance as an expense when analyzing properties I recommend?
How to houses in the area compare to the ’sides’ of a duplex for resale value?
Don’t I need a pre-approval letter for each property?
Can we drive a harder deal with this or that seller?
Why don’t renters buy, when the payments wouldn’t be much different?
See what I mean? All great questions. And those are only a small sampling of what I’ve been asked in just the last several days. I remind people all the time — answering questions is a huge part of my job.
Of course, the best part is when I’m able to answer a question they didn’t know to ask. Lord knows I love when that happens.
When new clients, especially those new to investing, ask us questions, we try our best to give in depth, and richly detailed answers. It’s not always possible, but we give it our best shot. When the answer depends upon our perpetually cracked crystal ball, we laugh about that fact with our client, then proceed to answer the question as best we can.
Sometimes the answers aren’t what they expect. Everything isn’t Grandma’s pancakes and bacon — know what I mean, Verne? Newbies learn quickly — we don’t sugarcoat answers that are sometimes by nature, negative, or at least unpleasant. One of our most often repeated retorts to stunned silence is, “Hey, that’s why we insist on a Sominex Account.” 2 3 4, “Oh, yeah, right.”
That’s when the light comes on — there’s a reason it’s called ‘risk capital’ Virginia. Usually by the time any particular conversation is finished, they’ve learned a new respect for the concept of cash reserves. This is a decidedly good thing. Soon, the excitement of investing for a magnificently abundant retirement is tempered by the realities of the real estate investment arena.
Again, that’s exactly why we call it Purposeful Planning — ‘cuz doing things on purpose with a plan is a whole lot mo betta than the alternative. Right?
Right.
Deciding to take the path of a real estate investor for the first time means you’re gonna take a nearly vertical ride up the learning curve elevator.
It’s my job to answer questions, and do it as long as you have them to ask. Never, ever feel like you can’t ask ‘just one more question’. It’s how you learn, and how I stay high.
Posted on April 5, 2008 @ 7:53 pm - Written by BawldGuy
For years I’ve referred to a real estate investor’s cash reserves as The Sominex Account. A few days ago a very fortunate NASCAR driver, Michael McDowell, hit the wall at somewhere around 180 miles an hour, give or take. Geez! To say his car was destroyed would be to strain understatement. It was obliterated, then burned. It banged into the wall, flipped who knows how many times, then caught on fire — all at that heart stopping speed.
Thankfully NASCAR has their version of The Sominex Account too — ‘Cuz you never know when Murphy is gonna come knockin’. He will eventually. He always does. Sooner or later every real estate investor has their turn in the barrel with Mr. Murphy. The question is, when he visits you, will you still sleep well?
When it happens to you like it happened to Michael, will your ‘crash’ end up the same way Michael’s did? Will your Sominex Account do its job perfectly?
Watch in amazement what happens to the driver in one of the worst NASCAR crashes I’ve ever seen. Then think of the real estate version of that fiery scene, and ask yourself if your cash reserves are up to the task. Go ahead, take a look.
His Sominex Account allowed him to walk away. Will yours? Error on the side of bigger, not smaller.
Posted on April 3, 2008 @ 12:04 am - Written by BawldGuy
Trying always to keep Grandma’s wisdom at my beck and call, a client reminded me today of one of her favorite nuggets. She said, “Man plans, God laughs.” In other words, plans are wise, but it’s important to understand, we’re not in charge. Setting your agenda in concrete, without the flexibility to go with the flow, can be your undoing.
To paraphrase one of the most often seen bumper stickers, ‘Life Happens’.
Flexibility with your Purposeful Plan is a state of mind. Sure, we can install a degree of flexibility in most Plans, but it almost always comes down to mindset — the client’s attitude when faced with outside forces affecting the direction of their Plan.
Things come up with family, jobs cause moves, divorce rears its ugly head, and all the other scenarios causing us to change or even abandon the best of Plans. When this happens, once the surprise wears off and relentless reality remains at your door, implementing what your flexible Plan allows is imperative. As life teaches us at an early age, changes from the outside usually proceed using the timing of everything and everyone but us.
Sound familiar?
Here’s what I tell clients, whether they’re new or have been with us forever.
It’s my job to be brutally objective when constructing your Purposeful Plan. It’s your job to bring subjectivity and your own comfort zone to the table. Once we’ve established ground supporting both a solid plan while remaining solidly in your comfort zone — we’re good to go.
The final arbiter of any collisions of my objectivity and your comfort zone is your comfort zone. I do reserve the privilege to make the case for my approach once — but only once. If you’re still feeling squeamish, your train is the one we’re boarding. This assumes of course, that your way isn’t harmful in any way. (Which hardly ever happens.)
We never forget — it’s your money.
Sometimes it’s my comfort zone coming into play. Most of the time it concerns the size of your Sominex Account. (Ambien for those under 40) Those here for the first time — that’s my name for a client’s cash reserves. You know, something allowing you to sleep well at night, even in relatively stressful times. Some folks are braver than is safe. I’ve had new clients disagree with me over the size of their Sominex Account. You’re not the only one having to feel good about the amount of your cash reserves. I have to sleep too.
Our policy is to error on the side of too large rather than too small when it comes to cash reserves. Will the congregation help me out with a heartfelt Duh?!
Murphy knows where everyone lives, even you. Hard experience has taught me — it’ll be your turn in his barrel sooner or later. If the sun keeps setting in the west, Murphy will some day knock on your door, and it won’t be a social visit. We’re Old School about this — and don’t compromise — ever. Many times we’ve refused to work with folks ‘cuz they insisted on either eschewing cash reserves altogether (What!?) or setting aside a woefully insufficient amount to satisfy my sleep requirements. It doesn’t happen often, but it happens.
Still, remember our main point here — flexibility. When life zigs instead of zags, sometimes your Purposeful Plan is the answer. Changing course in midstream isn’t usually on our A-List of things to do today. But when Life Happens, and it does to all of us, having the luxury of having already mentally prepared yourself will help big time. Again, it’s a state of mind. Cash reserves are helpful, but aren’t designed to handle everything.
Flexibility. No Plan is sacrosanct.
Just about everything else in life is more valuable than riches. I wish I could relate to you what inspired this post, but discretion dictates otherwise. Suffice to say, in the next couple days I’ll be undoing, in the bottom of the ninth inning, a gorgeous Purposeful Plan. Why? ‘Cuz a client has made the value judgment that family holds sway over their future net worth. I support their decision enthusiastically and without reservation.
So tomorrow and Friday I’ll be moving Heaven and Earth to make things happen their way. The other side will simply have to understand, and I’m almost sure they will.
Family trumps net worth every time. I’ll sleep like a baby tonight.
But my all time favorite real estate investor? The first timer. Get ‘first timer juice’ flowing in my veins and I’m good for quite awhile. 
Talk about a potent fix. They ask more questions, have more anxieties, are more conservative, searching for ‘lake serenity’, or real fire breathers, braver than is safe. Sometimes all at once. They also offer insight at times which makes me stop and think. They’re unfettered by experience, good, bad, or indifferent, so often bring a fresh take to the arena. 
