Qualities, Characteristics and Attributes of the Successful Entrepreneur

Posted by on Jul 28, 2015 in Motivation, Real Estate

Qualities, Characteristics and Attributes of the Successful Entrepreneur

By Dr. Jonathan Dugger, PhD, CSP Many studies, articles, books and other publications have been written on the subject of what it takes to be a successful entrepreneur. There are a lot of ideas and opinions, some quite complex and confusing, that have been generated over the years on the subject but like most things in life, it’s usually fairly simple. The list of identified qualities and characteristics can be quite lengthy so I’ve chosen to focus on just a few… You might be an entrepreneur if… Flexibility and adaptability are part of your everyday language and action. We often refer to this characteristic as resiliency. Most successful entrepreneurs would probably agree that one needs to have or be able to learn the ability to be flexible and adaptable and to learn from one’s failures. Rigidity in thought and behavior can hold you back from pushing through missteps and mistakes and keep you from overcoming your challenges, even though you may not see them from where you currently are. Sometimes we have to follow the famous words of Dori from Finding Nemo and “Just keep swimming.” You are self-starting and self- motivated. The successful entrepreneur is driven to work toward the actualization of their vision and goals. The motivation has to come from understanding and working towards what’s really important to you. This is sometimes referred to as your WHY. Others can help you stay focused and inspired but ultimately the drive to push through the challenges and unknowns has to come from inside. If you need a constant kick in the pants to keep going, your chances of ultimate success are greatly diminished. You are passionate and have purpose. Like motivation to succeed, the successful entrepreneur’s passion is driven by a clear definition and an understanding of the importance of their WHY. There is often an innate desire to help others along the way and a core knowledge that what you do and what you strive for is bigger than yourself. You are tenacious and determined. I’ve even heard the term obsessive and phrases like “a dog with a bone” thrown around in reference to these particular traits. I’d prefer terms like persistent and resolute but can certainly understand how someone that doesn’t really know me or my businesses could confuse determination with some of the darker sides of that mindset. Tenacity is defined as having determination or persistence. An entrepreneur’s life will certainly have many ups and downs. Tenacity from the entrepreneur is what will allow their business to recover from the downs and avoid the same ones again. Some might say this is the opposite of “flexible and adaptable” but I hold that it takes both mindsets and behavior profiles, applied when called for, to be consistently successful through the unknowns and challenges that come with being an entrepreneur. And a core characteristic that can often...

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5 Golden Rules to Success Series Part 4: Following Up with Your Leads

Posted by on Jul 21, 2015 in Real Estate

5 Golden Rules to Success Series Part 4: Following Up with Your Leads

5 Golden Rules to Success Series Part 1: Marketing 5 Golden Rules to Success Series Part 2: Networking 5 Golden Rules to Success Series Part 3: Build that Database of Investors 5 Golden Rules to Success Series Part 4: Following Up with Your Leads 5 Golden Rules to Success Series Part 5: Make 3-5 Contacts Daily (Still to come!)   Part 4 of a 5 part series “Scott Wilson’s 5 Golden Rules to Success” Following Up with Your Leads   In part 4 of “Scott Wilson’s 5 Golden Rules to Success”, I wanted to instill in you the importance of following up with your leads.  It pains me to think of my early career and the possible deals I threw into the trash because a potential seller told me “NO”. Why is it that people say “NO”?  Obviously because they are not receiving the answer they want to hear.   Another reason is that they may not fully understand what we are offering them and are therefore confused. What is Creative Financing?  Most sellers have never heard of it so the easy way out is to just say “NO”.   When I offer a potential seller a lease option, owner financing or a low cash offer and they reject me, I like to follow up with “is there something about my offer that you do not understand?  I will gladly go over it with you again”? The answer “NO” typically is not “NO”, it’s just “NO” right now.  As time goes on, their situation will change.  Most sellers would prefer to just “cash out” and be rid of the property, as well as the mortgage, but that is not always possible.  If they have less than 10% equity they will not be able to sell their home traditionally. Selling Costs/Holding Costs The Realtor fee’s, carrying costs, necessary repairs, closing costs and the cost to actually move into their new home can easily exceed that 10%.   So what should a homeowner do?  Even if they have the equity to cover the above expenses it’s not always that easy to sell a home.  This is why we MUST FOLLOW UP with them. Follow Up Strategies I usually do a 2 week follow up after the initial conversation.  However, if there is significant equity in the property, I will only wait 2 or 3 days for the follow up.  I continue my follow ups on a 2 week basis until they sell to someone else, who is usually paying too much, or the seller changes their mind. On my follow ups, I let them know that “I spoke to you a couple of weeks ago in regards to your property and was wondering if you have had any luck selling?”  Then I ask them, “Would you like to go over my offer one more time”?  If they want you to explain it to them...

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7 Key Qualities of a Fully Focused Individual, Part 8: Perfect the Prioritization Process

Posted by on Jul 14, 2015 in Motivation

7 Key Qualities of a Fully Focused Individual, Part 8:  Perfect the Prioritization Process

Now you are aware of what it means to be fully focused and what the formula expects you to do. You must choose your destiny and calculate the cost to fulfill it. You recognize that the learning curve will include a period of discomfort as you discard distracting habits, add timelines, and commit to deadlines. You will surround yourself with accountability partners, and focus on the finish line. At this point there is only one key skill left. Prioritizing your to-do list! Put the most important items (with the most immediate deadlines) at the top of your list. This will ensure that you’re not majoring on the minors! Write them down. You must have a system! I still use the yellow pad instead of some fancy iPad, phone, or whatever new electronic device is hot on the market. Maybe your Smartphone or Franklin Covey Planner is what works best for you. The point is, the most important task must be completed first. In fact, on my list there are many items that may go weeks and months without getting accomplished, simply because they are not critical right now. The key to prioritizing is to identify what is important and what is not. You must balance out efficiency with effectiveness. It’s not just about being busy, but also being effective. For those of you who are fairly new at the goal you have set for yourself, understand this: the best way to overcome inexperience is organization! Organization and prioritization go hand in hand. If you can be organized by listing tasks in order of importance, it will help you feel secure in your purpose each day. Those who are fully focused will not only get to the finish line, but will finish on time. As you utilize these 7 key qualities, you will look around and realize you are far more successful than those who don’t use them. You deserve this success! Those whom you care about deserve what your goals will do for them. Make it happen!    Define your destiny!  Count/calculate your cost!  Become comfortable being uncomfortable!  Set timelines and meet deadlines!  Establish accountable accountability!  Understand there is a pruning season!  Perfect the prioritization process!   If you are ready to become fully focused and start on a new path, attend one of our free 2-hour workshops! To read the other articles in this series: 7 Key Qualities of a Fully Focused Individual Part 1:Introduction 7 Key Qualities of a Fully Focused Individual, Part 2:Define Your Destiny 7 Key Qualities of a Fully Focused Individual, Part 3: Count the Cost 7 Key Qualities of a Fully Focused Individual, Part 4: Become Comfortable Being Uncomfortable 7 Key Qualities of a Fully Focused Individual, Part 5: Set Timelines and Meet Deadlines 7 Key Qualities of a Fully Focused Individual, Part 6:  Establish Accountable Accountability 7 Key Qualities of a Fully Focused Individual, Part...

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The Advantages of the Series LLC, Part 3: When Should you Consider Using a Series LLC?

Posted by on Jul 7, 2015 in Real Estate

The Advantages of the Series LLC, Part 3: When Should you Consider Using a Series LLC?

By Clint Coons Click here to read the first two articles in this series: LLC’s vs. Insurance, and Introduction to the Series LLC When Should You Consider Using a Series LLC? A lack of legal precedent should only be a deterrent for those who are considering using a Series LLC in a state outside of the 12 I listed previously. In Ted’s situation, only two of his properties were located in a Series LLC state, leading us to go a different route. However, if you have substantial holdings in a state like Nevada or Texas, then you most definitely should consider this option. If you are considering using this entity form, then I strongly suggest you do not attempt to set it up without the assistance of a professional. The initial formation and the creation of the master LLC agreement and the first Series are far too complex for the uninitiated. I have found many attorneys do not even understand the basics themselves and often refer to the Master LLC as a “Parent LLC,” which is not the case and should not be confused as such. It is especially important for real estate investors considering this form of entity to know how to take title in a specific Series. Consider Ted’s situation. If we set up a Series LLC for Ted and created 12 separate Series to hold his various properties (e.g., Red Rock, LLC – 732 Broadway Series A, Red Rock, LLC – 3225 McLeod Series B, etc. , see a sample form), Ted could not simply deed his various properties into each separate Series as if these were separate LLCs. Unlike the situation where a separate LLC is created and has a verifiable and legal existence, a Series does not for title holding purposes. If Ted attempted to deed his property into a specific Series he would create a title defect for himself. A title defect occurs because title companies typically require a certificate of good standing for an LLC, whether it is a traditional LLC or a Series LLC. The problem arises in attempting to secure this certificate from the Secretary of State. The Secretary of State will only issue a certificate of good standing for the Master LLC and not the specific Series. The reason being is the Series is not filed with the state, only the Master, thus the Secretary of State has no way of verifying its existence. Remember, Series are created privately, without necessity for public notice or a state filing. No official method exists for establishing that a Series (as opposed to the company at large) is in “good standing.” Some have suggested deeding the property into the name of the Master LLC and then adding a notation at the bottom of the deed stating that this property will be held as a Separate Series with the following language: _________________ is held in the _______________ Series, a separate Series of the ______________...

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7 Key Qualities of a Fully Focused Individual, Part 7: Understand There is a Pruning Season

Posted by on Jun 30, 2015 in Motivation

7 Key Qualities of a Fully Focused Individual, Part 7: Understand There is a Pruning Season

By Brad Sides As we continue to identify the key qualities in a fully focused individual, having the ability to eliminate the distractions that so often make us lose our focus is essential. I didn’t realize the influence unimportant things had on my life or the time I wasted on them until I made the decision to cut them out of my life. We put off important things because we have replaced them with unimportant things. For example, my nightly routine to de-stress had always been television channel surfing for two to three hours before going to sleep. A few years ago I spent a weekend in a hotel in New York. I decided to go the whole weekend without turning on the television; an enormous challenge for me. I knew I had the ability to do this, but I had to reach deep down inside me for the willingness to cut something out of my life that would seem possible for most . Again, we don’t realize how dependent we are on something until it’s taken away or we decide to eliminate it. Channel surfing was an activity I needed to prune from my days in order to add what actually would help me succeed. When you take serious inventory of your life, the productive choices versus the unproductive ones will pop out at you. Bearing fruit in our lives can be the most rewarding and confidence-building goal we can achieve, but when the fruit does not come right away, doubt and disbelief rise to the surface. It’s amazing how a tree can lose leaves in the winter, bloom in the spring, and produce the most unbelievable fruit in the harvest season of summer, proving that it had been productive all year. On the other hand, if your tree is growing in infertile soil or the roots are suffering from lack of water, it will not achieve its potential. Our lives work the same way. When I began to take inventory of whether I was fruitful in the critical areas of my life, I had to admit my distractions were reducing my effectiveness. I could trace the root of my fruitlessness to things like channel surfing that wasted my time. What needs to be pruned from your life? I took a hard look at the fruit I did bear. Was it well formed? Did it have good color and shape? Was it beautiful? When a tree produces fruit, the farmer admits he can’t tell how good it actually is until he takes a bite. Fruit is worthless, even if it looks good on the outside, unless it is sweet and juicy on the inside. I realized my life looked great, but I needed to work on the inside. If you look at a fruit tree, you’ll notice the branches that bear no fruit are dead and brittle. I...

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Shorting Elmo

Posted by on Jun 24, 2015 in Stock Success

By: Tyler Craig, CMT Rich Dad Education Elite Trainer and Mentor   Many spectators to the trading game are fascinated when they first learn of selling stock short. The reason for the excitement is that shorting opens up a whole new world of opportunity. The lion’s share of the public has been indoctrinated with the philosophy of buy and hold. With such an approach the only way to score profits is if the stock market rises in value. And so, for the majority of people a climbing stock market becomes a necessity in order to make money. Rising prices mete out pleasure while falling prices deliver pain. With such a narrow, one-sided view of the markets, buy low, sell high becomes the only game in town. The beauty of selling short is that it allows us to embrace the buy low, sell high mantra, only in reverse – sell high, buy low. It’s possible to borrow shares of stock from your broker to sell into the marketplace at a high price in hopes that you can buy it back later at a low price and pocket the difference. See if the following personal story of the Tickle Me Elmo craze doesn’t shed light on selling short. It was 1996 and the holiday shopping season was fast approaching. That year the must-have toy was Tickle Me Elmo. Remember the fuzzy red doll that would giggle and shake when tickled? I certainly do. My dad, ever the opportunist, would drag me around with him from store to store in search of the coveted toy so we could scalp him and make a quick buck. I can’t remember how many dolls we ended up getting our hands on, but as soon as we were lucky enough to acquire a few we posted “for sale” signs at the most prominent bulletin boards around town. The Internet was in its early stages back then and eBay had just been founded the year prior so we marketed it on the up-and-coming auction site as well. Suffice it to say, my Pops was able to sell Elmo for a hefty premium over the $28.99 we had to shell out  in stores. I won’t bore you with the economics of the Tickle Me Elmo craze, but let’s just say demand far outstripped supply, temporarily driving prices for Elmo through the roof. Here’s where the shorting application comes in. Suppose in the midst of the mania you, like my dad, wanted to sell these outrageously overpriced Tickle Me Elmo dolls to the clamoring masses but weren’t able to find one. That is to say, you wanted to sell high but weren’t able to find little ol’ Elmo anywhere to buy low first. Lucky for you, however, your friend has a few Tickle Me Elmo dolls he wouldn’t mind letting you borrow as long as you give them back...

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The Advantages of the Series LLC, Part 2: Introduction to the Series LLC

Posted by on Jun 23, 2015 in Real Estate

The Advantages of the Series LLC, Part 2: Introduction to the Series LLC

By Clint Coons The first article in this series covers Series LLC vs. Insurance. A Series LLC is in essence an LLC (Master) that can be subdivided into separate units (series) with separate rights, powers, or duties with respect to specific property or obligations of the LLC, or with respect to profits and losses associated with specific property or obligations. The primary attraction to this form of LLC is that the debts and other liabilities of a separate series will be enforceable against that series. This is similar in form to what I created for Ted minus the numerous annual fees and expenses. For example, a Series LLC typically has only one annual filing fee, one resident agent fee, and reduced ongoing legal fees for future property acquisitions. Unlike Ted’s structure where a new LLC was created for each purchase, in a Series LLC Ted can easily complete the documents on his own by filling in a few blanks on a standardized two-page form and a new Series is ready to take title. Here is a list of 6 key benefits and requirements of a Series LLC: Each Series has its owners (members) and may be managed separately from the Master LLC and other Series Each Series must maintain separate books and records As with a regularly formed LLC, the owners (members) of each Series are not financially responsible for the Series’ debts and obligations A Series may conduct part of the business of the Master LLC, or may conduct a wholly different business; Each Series has its own assets and liabilities. The members of each Series are treated under the laws of the state where the master LLC is formed as owning an interest in only that Series, and have no rights as members of one Series in the assets or income of any other Series. Each Series is liable only for its own debts and obligations. In general, creditors of one Series may only make claims against the assets of that Series. You might be wondering why Ted opted for the “support your favorite attorney charity program” and set up 13 separate LLCs when he could have opted for the cost-saving Series alternative. Believe me, we discussed this option, but Ted was already getting the cold shoulder from Lady Luck and he was not comfortable venturing into unchartered waters. The Series LLC has not yet been fully vetted by the legal system. A lack of case law should give any prudent investor pause because a judge is operating in the blind when first presented with this new form of entity. This is further compounded when the litigation arises in a state that has not yet adopted this form of LLC. Currently, only Alabama, Delaware, Illinois, Iowa, Kansas, Missouri, Montana, Nevada, Utah, Oklahoma, Tennessee, and Texas have Series LLC statues. It is also worth mentioning Minnesota, Wisconsin, and North Dakota...

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