Archive for November, 2007

Yesterday, I arrived into the cabin I am renting in Colorado Springs. This is my 2nd visit to Colorado Springs this year. I flew into Denver, rented a car, and drove in. It was a pleasant drive but I paid the most expensive set of tolls I have seen ($6.00 for a 20 mile stretch from Denver Aiport to I-25).

It is a new trip and it feels great having a safe “established home” away from Columbus. It still boggles my mind that a little that less than 24 hours ago, I was living in a totally different environment than now. The contrast is quite significant.

Traveling is exhausting for me especially when I have to get up very early to catch a flight. Catching naps on a plane isn’t always sufficient. Anyhow, it would be nearly two hours later before I realized I lost one of my bags. I was distracted by an unexpected phone call from a business acquaintance who was asking for suggestions on how to sell her house more quickly because her husband had to leave in Jan. 2008.

In the conversation, I asked where they were going to relocate to. And guess where they are relocating to? Yup! Colorado Springs! And so, I told her that I would likely be here when they relocated. We both agreed it would be nice to have a familiar face.

After that phone call with my zombie-like presence, I totally forgot about my 2nd baggage and just registered for my rental car and drove off.

I am mostly settled in right now but need to set up my office/work area. As I write this, I just got my missing baggage which had several business books I brought, not to mention my sweatshirt and sweatpants I need to survive the freezing temperatures up in elevated altitude of my cabin. Plenty of snow and ice starting to accumulate outside the yard and driveway!

The latest business book I finished reading and really found thought-provoking is Microtrends: The Small Forces Behind Tomorrow’s Big Changes by Mark J. Penn. This book is going to sit with my other business books I will want to revisit and consult. It is really that good.

I have to admit the book also caught my eye with recommendations from a couple of very influential people who don’t normally give recommendations: Bill Gates and Bill Clinton.

“Microtrends” follows in the tradition of other great business books such as The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell, The Long Tail: Why the Future of Business is Selling Less of More by Chris Anderson, and The World Is Flat: A Brief History of the Twenty-first Century by Thomas Friedman in that those books really stretched my brain and my paradigms about today’s business.

I know there is a group of people who will not be able to apply the many microtrends identified in this book. That is because they lack the ability to apply new cutting edge principles and ideas. However, for the true entrepreneur, there is a goldmine of insights for new business niches and opportunities.

For years, I have independently identified and followed larger trends which I base my decisions on. However, like most people, I generally do not follow smaller microtrends. But these microtrends do eventually have a huge impact in all our lives. Most people don’t learn about them until it is too late.

For forward-looking entrepreneurs, this book is a great reference for those looking for new niches not known by most people. The thinking business person will truly appreciate the great insights Mark Penn provided.

Without a doubt, I highly recommend Mark J. Penn’s Microtrends: The Small Forces Behind Tomorrow’s Big Changes. It is a great new business book that has left a lasting impression on me.

This is just a quickie piece of advice to investors holding on to properties and interested in cashing them out.  The rule of thumb I am telling people is to “hold the line until 2009!”

I am hearing and seeing so many “investors” dump their property at the worst possible time.  Quite frankly, there are a couple of dogs we have that I would like to dump.  However, to do so now or next year is mostly a waste of time and energy.  I believe the strategy is to get tenants into your property (even if you have to reduce rents) and ride 2008 out.

Of course, there is an exception to every rule.  But I find it sad that so many “investors” don’t have the realization and willpower that selling property now (2007 and 2008) is mostly a waste of time and energy.  They will get out but it will cost them HUGE.  They will take a unbelieveable beating.

I have long preached to our local investor community to “get the money” when you don’t need it.  This is necessary to ride out the tough times.  I have believed that the availability of money would not always be plentiful.  And the economy looks like it is headed towards a downturn next year.  It looks like a lot of people (homeowners and investors alike) will have to learn some very tough life-lessons because of their own financial and economic ignorance.

Fortunately, I have studied history and economics and foresaw that something was going to give very soon.  I didn’t know exactly know when but the down cycle always comes.  During the “good times”, I left all the equity in our properties untouched and continue to raise credit and funds during the boom times in preparation for this downturn.  I feel good about our leverage position and once we get through 2008 and the first part of 2009, we should be sitting very well as I believe the recovery will begin then.

I predict things will get definitely get worse before it gets better.  The upside is that I am looking forward to finding some good deals and bring together an investment team to take advantage of it.  For the smart economic survivors who prepared themselves, remember, Hold the Line Til O-Nine!

There will be much more blood-letting on the economic streets next year in 2008.  Be ready for it and buckle up for the upcoming storm.

In an earlier post, I said that Matt Lombardi (Managing Director of Marketing & Sales) was going to do something “extra special” for me since he knew Wes and I was attending the 2007 NAR Convention.

Matt placed and displayed 4 of the “TurnKey Investor” book titles in the Main NAR Exhibit Booth at the center of the Expo:  3 paperback books and 1 audiobook.

I have to admit I was a bit stoked that the books would get some good exposure at the NAR Expo.

Wes Weaver (a leading contributor of the “TurnKey Investor” book series) and I managed a pose next to the books on the display area.

During my week at the NAR 2007 Convention, I had the unexpected pleasure of running into and meeting Kendra Todd, Season 3 Winner of Donald Trump’s TV show “The Apprentice”.

Wes and I were near the NAR Booth in the center of the Expo area.  We were looking around to figure out which direction we wanted to walk next when I noticed a young, attractive woman in a green dress speaking on a small stage.  It took me 2 seconds to recognize this woman as Kendra Todd, Season 3 Winner of Donald Trump’s “The Apprentice”.  Being a fan of “The Apprentice”, I have to admit I was excited about meeting and chatting with Kendra.

Wes and I walked over to the Lowe’s booth to where she was speaking on stage to a small group of expo attendees.  We had arrived at the last 10-minutes of her presentation so it did not take long for us to get a chance to meet and chat with Kendra.

Interestingly, it did not seem many people recognized Kendra so it was easy for us to approach and speak with her.  I did ask her where her current homebase was (Delray Beach).  I asked her about her current schedule.  She commented how if she had 10 days to herself without travel, it would be wonderful.  I asked about where her future direction lies.  I don’t think I am betraying her confidence when she stated that she wanted to work more with women and wealth-building.  I surmised she wanted to move away from the real estate field from which she is known.

It is my guess Kendra wants to make a bigger impact on the world than working exclusively in the real estate world.  (We share that trait in common.) She has a lot going on right now from what I could tell from her comments but I got the feeling she was having fun.  She admitted to me winning “The Apprentice” opened up a lot of doors for her.  (No big surprise there.)  Kendra did mention she did appreciate the quiet times the few times she gets it.

All in all, meeting and chatting with Kendra Todd was a fun experience.  She was a down to earth young woman.  I found Kendra to be more petite in person than on TV.  She was also gracious enough to stand in a photo with me as you can see.

After an exhausting week in Las Vegas, we have finally gotten back from NAR 2007 Convention (National Association of Realtors).  I have to admit to being impressed with the convention.  It was a huge event with approximately 30,000 people.  It was well-planned and well-organized.

I wasn’t too crazy about having NAR in Las Vegas but it is better than where they had the convention in 2006 (New Orleans).  Sometimes, you just have to make the best of situation and environment you are in.

I did have a chance to finally meet Matt Lombardi, Managing Director of Marketing & Sales in charge of carrying ”The TurnKey Investor” Book Series.  He was friendly, gracious, and welcoming.  When I informed him Wes and I were going to attend the event, Matt Lombardi made the extra effort to “show off” our books at this particular show.  Needless to say, I was happy for that effort.

Although I am not a Realtor myself (or plan to be anytime in the near future), it was still very educational being in that convention environment.  I did have my brain stretched by Seth Godin (author of Permission Marketing, Purple Cow, Unleashing the IdeaVirus, etc.).  I had never heard him speak before and the room was packed with what I loosely estimated to be around 2,000+ people.  He had a captive audience and there was good reason for it.  Essentially, I was captivated by the paradigm shift I was experiencing.  Sure, I have read his books but listening to the man himself was a way more powerful experience.

Not having any experience in politics beyond the ability to register and vote, my brain was also stretched by Michael E. Dunn on how relatively easy it was to gain political power and influence without ever running for office.  He outlined his political influence model and showed how the process ”really” worked.  He was very direct and concise in his presentation.  I was compelled by his ideas that I may one day involve myself with the political process.

Watching Bill Cosby live (my first time) with 25,000 people was also a fun hour.  It was a jammed room however.

The folks at NAR were very thoughtful of creating a private Bloggers break area to sit, break, write, and reflect.  Having great Wi-Fi connections to keep in touch was a huge asset.  It was funny to watch all the Realtors and the gadgets they were carrying.  I consider myself a power user of technology but compared to all the PDAs, smartphones, webphones, Blackberries, etc., I felt like a novice with my very ordinary Samsung cell phone.

All in all, I have to say NAR 2007 was a much better experience than I expected.  NAR 2008 will be located in Orlando, FL which is convenient since that is where I am from.  I definitely plan on attending NAR 2008 in Orlando.

I will be presenting an all-new, hard-hitting evening seminar entitled, “Building a Real Estate Investment Portfolio in a Down Market” on December 5, 2007 in Colorado Springs.  I will be inviting my book and audio program customers in the Colorado area to attend this seminar.

This seminar will be used to kick-off the newly forming Investors Roundtable of Colorado Springs.  The word-of-mouth interest and enthusiasm is already high with the various people that were involved in helping me with the logistics in putting this seminar together.  They are interested in the subject matter as well as my perspective on the current market situation.  Half-dozen people are already committed to this evening seminar.  Ha! I guess I will be giving this seminar even if not a single ticket is sold!

The official marketing begins this week with local newspaper advertising in the Colorado Springs area.  The evening seminar is very inexpensive at $25.00 per ticket.  I am hoping for a solid local investor community turnout.

I am excited about this seminar as there are new distinctions and material I am incorporating that I have not written or spoken about.  I will try to make a video recording of this event.  It may become available on DVD if the video turns out ok.

My business partner, Wes Weaver, and I are headed to Las Vegas tomorrow for the 2007 National Association of Realtors Convention.  Although I am not a real estate agent or Realtor, my involvement with NAR is that they are one of my major sellers of my books and audio programs.  I will get to meet the rep I work with, Matt Lombardi.  I am looking forward to meeting him.

And so, in that spirit, I thought it would be a good idea to get a better understanding and perspective of this well-established group.  Wes, on the other hand, is a real estate agent and soon to be real estate broker.  And so, his reason to attend is obvious.

I am not really a big fan of Las Vegas anymore but will obviously make the best of it by taking the classes and networking when possible.

The NAR Convention ends Friday evening.  It will be one  of the few times I will not stay the night following the event.  We will be catching the “red eye” flight back on time for Saturday.