Tag Archives: Real estate investing

The Number 1 Opportunity For Small Businesses To Absolutely Kick Ass In A Market Dominated by The Big Box Stores

Build Business ProfitsIn every US market with more than about 100,000 people you will find them – the big box stores.  Most know what that description means.  For clarity they include places like Costco, Sams Club, Home Depot, Loews, Target, Walmart and so on.

I am an experienced real estate investor in the residential niche.  Along with my team we find distressed properties, renovate them and resell them to a buyer who will live in the home. We are constantly looking for distressed multi-family deals for our buy and hold strategy. In the single family home rental niche  we work with our strategic partner Strongbrook.

In order for us to be successful there must be the right products.  on time,  reliable sources of money for our deals and a strong  team of contractors and realtors. With that background I am sharing with you the number one opportunity for small to mid-size businesses selling products and services to companies like mine.

The Number 1 Opportunity For Small Businesses To Absolutely Kick Ass In A Market Dominated by The Big Box Stores

You probably already know what this is because the issue is not limited to stores servicing real estate investors.  All of us from time to time need to call the cable company or the company where we get our cell phone service.  Except of course unless you are a very successful person who can afford to have an assistant take care of these things for you. If you outsource the task then you are  generally immune from the day to day reality of  the deplorable level of customer service in this country that is pervasive at all large businesses – all.  If you are immune and you are running  a business, they you really need to pay attention to the following:

Deplorable Customer Service at All Large Companies Is The Number 1 Opportunity for Smaller Businesses.  Here are The Top 3 Actions Steps That Will Guarantee Your Competitive Edge:

  1. Never install automated attendant phone systems – never. Have a live person answer the phone all the time. That person needs to be at your business and not outsourced to some remote location. There is a process and procedure for doing this right which is beyond the scope of this article.
  2. Know your customer!  Here is one example.  We order flooring from a local supplier.  Their pricing and service is good.  They have no idea that we have projects in our pipeline, They do not have any connections to other suppliers like cabinets, kitchen and bath, tile, All you have to do is continually update your circle of qualified suppliers and contractors and refer business to them. We are always looking for qualified resources. This is so easy to do and nobody does it.
  3. Communicate with your customers. The only email I ever get from any supplier including contractors is a bill.  Nobody calls or emails me to ask about our level of satisfaction with their in-store experience,  product quality, delivery and installation where applicable.  Nobody – not one and we deal with quite a few companies.

My Number One Recommendation for the “Big Box” stores:

Each CEO needs to get out of their office and become a mystery shopper by phone an in person.  If you do this you will reinvent your company and nobody will be able to even come close.

Your comments and experiences in the market place are encouraged and welcomed.

Resources To Help You

The Book: Building Business Profits Fast
Results Guaranteed Coaching
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Steve Pohlit IBusiness Turnaround and Real Estate Investment Coach, Real Estate Investor, Business Builder MLM

Steve Pohlit IBusiness Turnaround and Real Estate Investment Coach, Real Estate Investor, Business Builder MLM

Steve

 

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Why I Recommend Real Estate Investing and Network Marketing To Those Who Want To Be Entrepreneurs

In a one hour movie recently released by Eric Worre, he interviewed some very well know experts. Harry Dent talked about the true level of the debt owed by the US and the number is staggering and scary. Robert Kyosaki showed the dramatic negative trends in food stamps, college graduate incomes and student loans. Most of these statistics I was aware of except for student debt which is now over $1 trillion and if you declare bankruptcy you still own student loans. So people are going into more debt to get more education. What is the result, lower paychecks than in the past.

Don’t misread this. My daughter is a doctor. She would not be a doctor without the education and the support of the student loan program. Our society needs medical professionals, scientists, teachers and other professionals who need to be qualified by our university and special education systems. However, the vast majority of people entering higher education are not seeing the likely outcome clearly and will be well served by taking a look at the economic reality of our world today.

All interviewed by Eric in this movie were in support of the message that it is harder and harder for many people to feel confident about earning a living at a level where they are not worried about their bills. The days of being able to count on a 40 hour a week job that provides an acceptable level of income for a lot of people are long gone. Technology is advancing at a rapid pace and often makes a well established business or industry obsolete. Look at what happened to the majority of book stores in the last decade. Look at the market share shift in the last decade because of companies like Apple, Google and others. Do the research on the amazing number of companies that were once very commonly known in America are out of business.

With those trends which are not very bright, people still need a place to live people need products and services. That leads me to the two industries that get my vote for where more people should be paying attention. Those are real estate investing and network marketing. Network marketing is often referred to as direct sales or multi-level marketing.

The reasons I like both of these industries the best for people thinking about being in business for themselves are:

1. Very little money is required to learn the businesses
2. There is plenty of evidence of people making good money in those industries
3. The training is outstanding and most of it is relatively low cost or free.

Let’s look at training for example. If you select the right network marketing company and sponsor, the training is amazing. In real estate it is true you do not need your own money or credit for deals. However, because of the dollar size of the transactions you are well served by being mentored by one or more people who will help you and JV with you as you get started.

Cost of entry: In real estate you can get started for about $1,000. It is better if you have $5,000 to $10,000 because there are some programs that cost money that will really help you get to a faster start. However with about $1,000 for gas and a few other supplies you can get started. I know of people who make $3-$5000 checks in their first month. Is that typical – I would say yes for the people following the directions and devoting more than 20 hours a week to the business. In Network Marketing you can get started with most companies for $250-$500. If you work hard you can begin to make money your first month. I have met people who make over $20,000 in their first three months. I don’t think that is typical.

What is the one skill you must have as an entrepreneur? In my view it is the skill of being able to get past rejection. There is one sure fire way getting past being rejected – set really high goals and be relentless on following them with the guide of a very experienced mentor and team.

Now you have my vote and why. What is yours and why. I welcome your comments.

Questions ? Call me 727-587-7871

Steve Pohlit International Business Turnaround and Real Estate Investment Coach, Real Estate Investor, Business Builder MLM


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My Vote For The Top Two Industries Where Entrepreneurs Are Most Likely To Succeed

In a one hour movie recently released by Eric Worre, he interviewed some very well know experts. Harry Dent talked about the true level of the debt owed by the US and the number is staggering and scary. Robert Kyosaki showed the dramatic negative trends in food stamps, college graduate incomes and student loans. Most of these statistics I was aware of except for student debt which is now over $1 trillion and if you declare bankruptcy you still own student loans. So people are going into more debt to get more education. What is the result, lower paychecks than in the past.

Don’t misread this. My daughter is a doctor. She would not be a doctor without the education and the support of the student loan program. Our society needs medical professionals, scientists, teachers and other professionals who need to be qualified by our university and special education systems. However, the vast majority of people entering higher education are not seeing the likely outcome clearly and will be well served by taking a look at the economic reality of our world today.

All interviewed by Eric in this movie were in support of the message that it is harder and harder for many people to feel confident about earning a living at a level where they are not worried about their bills. The days of being able to count on a 40 hour a week job that provides an acceptable level of income for a lot of people are long gone. Technology is advancing at a rapid pace and often makes a well established business or industry obsolete. Look at what happened to the majority of book stores in the last decade. Look at the market share shift in the last decade because of companies like Apple, Google and others. Do the research on the amazing number of companies that were once very commonly known in America are out of business.

With those trends which are not very bright, people still need a place to live people need products and services. That leads me to the two industries that get my vote for where more people should be paying attention. Those are real estate investing and network marketing. Network marketing is often referred to as direct sales or multi-level marketing.

The reasons I like both of these industries the best for people thinking about being in business for themselves are:

1. Very little money is required to learn the businesses
2. There is plenty of evidence of people making good money in those industries
3. The training is outstanding and most of it is relatively low cost or free.

Let’s look at training for example. If you select the right network marketing company and sponsor, the training is amazing. In real estate it is true you do not need your own money or credit for deals. However, because of the dollar size of the transactions you are well served by being mentored by one or more people who will help you and JV with you as you get started.

Cost of entry: In real estate you can get started for about $1,000. It is better if you have $5,000 to $10,000 because there are some programs that cost money that will really help you get to a faster start. However with about $1,000 for gas and a few other supplies you can get started. I know of people who make $3-$5000 checks in their first month. Is that typical – I would say yes for the people following the directions and devoting more than 20 hours a week to the business. In Network Marketing you can get started with most companies for $250-$500. If you work hard you can begin to make money your first month. I have met people who make over $20,000 in their first three months. I don’t think that is typical.

What is the one skill you must have as an entrepreneur? In my view it is the skill of being able to get past rejection. There is one sure fire way getting past being rejected – set really high goals and be relentless on following them with the guide of a very experienced mentor and team.

Now you have my vote and why. What is yours and why. I welcome your comments.

Questions ? Call me 727-587-7871

Steve Pohlit International Business Turnaround and Real Estate Investment Coach, Real Estate Investor, Business Builder MLM

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The Value For A Strategic Equity Real Estate Deal Partner

strategic real estate equity partnersA Real Estate  Equity Deal Partner Is Strategic For Our Business

The real estate investing  industry is vibrant and offers many  rewards for adding value.  We are very interested in attracting one source of equity funds for our real estate business.  Our business model is primarily investing in the niche of distressed real estate properties both residential and commercial multi-family. There are exceptions.  We are most interested in a real estate  equity deal partner that contributes to our profitable growth and helps us lower the transaction costs. Since we only recommend deals where we are confident with the profit, a positive deal doing mindset is important.

In a previous article I wrote that nearly every business has one barrier to massive profitable growth. (Click Here for the complete article.) For my firm it is equity funding for our real estate deals.  Working with our continually expanding network, we find really good deals in markets where we have teams that are skilled in managing the day to day requirements of a renovation and then our exit strategy.

Real Estate Investment Deal Structure

Most real estate transactions are a combination of debt and equity. When buying, renovating then reselling distressed properties, debt is short term or often referred to as bridge financing or hard money loans.  The cost of this debt is higher than more traditional bank financing.  Regardless of the source of debt financing, some level of equity is needed. The percentage varies by lender requirement.

Generally we are successful having lenders fund 75-85% of the total cost of the deal including the cost of debt interestingly enough.  For example one deal we are working on has all in costs including cost of money of $4 million. The lender will fund $3.0 million which leaves us to bring $1.0 million of equity.  For his deal we are projecting the equity partner will receive a 46% annualized rate of return on their money.  This percentage is often higher on smaller deals because the time line from start to finish is shorter. For example it is common for us to project annualized returns for equity funding partners greater than 80% for a single family fix and flip.

Our Deal Focus

We like deals where we are adding value to the property which in turns adds value for the final buyer or tenant. When we do this we improve the neighborhood and the community. We have an increased focus on using more alternative power in our projects and “green technology”.

Equity Deal Funding Resource Targeted 

The volume and size of deals we are finding are growing.  Accordingly we are interested in a source of equity that will support our growth.  This means having access to at least $10 million liquid for an equity participation on a deal by deal basis over then next 4-6 months is strategic for us.

If this catches your attention I would love to talk with you

Steve Pohlit, Business and Real Estate Coach, Consultant, Real Estate Investor. Published Author, Professional Speaker

Steve Pohlit, Business and Real Estate Coach, Consultant, Real Estate Investor. Published Author, Professional Speaker

Steve Pohlit, Managing Partner
727-587-7871
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My Number One Suggestion For A Business Start-Up – Bonus: There Are Two

Business Start Up Coaching AdviceMany people who decide to start up a business spend a lot of time preparing to be in business. My advice for any company starting out other than an on-line product sales business is to have a simple webpage for credibility – saying who you are, what you are offering and how people can contact you. Then focus 100% on marketing anyway you can to those people most likely to benefit from your offer. Pay particular attention to those who connect with your target customer.

Nearly all your efforts should be on marketing. I have two primary lines of business One is consulting and I would love to have 5 clients right now who have more established companies with say 20 employees or more. I am currently offering JV opportunities to marketing firms. Marketing firms don’t like JV’s because they want paid up front. That is like me wanting paid up front for consulting before the project even starts.

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I a previous article I presented my expanded success formula. In a nutshell we are well served by setting much bigger goals and taking massive action to achieve them. Click Here for that article that also includes my five steps to success formula.

Results Guaranteed 300x227 I Am A Victim Thinking Will Not Bring The Desired ResultsSpecial Offer: 1 complimentary coaching call plus one call a week for 6 weeks -7 calls total. I have priced this to be affordable for nearly everyone and if money is your issue I am open to a JV. Start now and in one month or less you will see results guaranteed!

Call me now 727-587-7871
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The other line of business is the strategic expansion of my real estate investment business. This is a perfect example of my next recommendation to start ups: connect with people who know what you don’t know or can help you with tasks that are not a good use of your time. If you are not marketing you are not using your time in an optimal fashion. For example I have developed a procedure for marketing properties that we have in contract. That is very detailed. How do I know? Well I had to know how to do it so I can train an apprentice who wants to learn. I am also marketing for equity JV deal partners. Again once I have the foundation for marketing I can work with an apprentice to help me.

In summary I have identified the key success factors in achieving my business growth goals and what I think are the primary marketing action steps needed to achieve them. Now following the advice from several mentors, I am taking even more action. Those who are successful take massive directed action.

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I a previous article I presented my expanded success formula. In a nutshell we are well served by setting much bigger goals and taking massive action to achieve them. Click Here for that article that also includes my five steps to success formula.

Results Guaranteed 300x227 I Am A Victim Thinking Will Not Bring The Desired ResultsSpecial Offer: 1 complimentary coaching call plus one call a week for 6 weeks -7 calls total. I have priced this to be affordable for nearly everyone and if money is your issue I am open to a JV. Start now and in one month or less you will see results guaranteed!

Call me now 727-587-7871

 

 

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