10 REASONS YOU DONT WANT TO BE IN THE RAT RACE

We have heard so much about the rat race in modern like. What is the rat race that you want to escape from? A rat race is the perpetual on-going quest for the utopia American dream - it is the continuous quest for materialism - the endless, mindless, pointless self-defeating pursuit for higher standard of living.

The concept has currently been transformed into the modern day pursuit of success. We wake up in the morning, hardly have time  for breakfast as we race to work in the early hours in the morning, stuck in our cars or commuter trains to work in the corporate environment or whatever for 40 hours or so and rush back home tired to our love ones. What a way to live!!

Here are the ten reasons you don't want to be in the rat race.

1. The Corporation don't care about you - corporations are there to make a profit and whatever they can do to squeeze from you they will do it even if it means terminating or firing you at random. Always remember that corporate  pay structure are designed to keep you glued to the corporate ladder. A leading business executive admitted that "corporate pay scales are delicate structures designed to keep workers, managers and officers of the corporation satisfied, happy, and striving for more, while the corporation remains profitable". According to him the aim of corporate profitability is to keep taking in younger people at the lowest level and moving them up and very gradually increasing their pay. The net result is to make the employee, at some  state of his or her career, a captive of the corporation.

2. Encourages you to go into debt - the illusion is that you have a good paying job so you apply for all the credit card in the world paying astronomical interest rate. Not only that, but we have a car note, a mortgage payment and other obligations. As a result of this you need the paternal corporation as your life-blood. As soon as the life blood is cut there you are unable to survive. Isn't it time you wean yourself from the all knowing corporation and starting living your life?

3. No Time For Yourself - The increased pace of modern life does not have room for any recreational activities. I am in the real estate industry and I drive around neighborhoods where I see million dollar homes unoccupied as the inhabitants leave for work and return late in the evenings with hardly any time for family and children. I think there is more in life than material possessions.

4. No time to think - The rat race does not allow time for reflective thinking. What distinguishes the human race from animals is our ability to think. Whatever you have came to us though our thinking. I believe we would be able to fare better if we allow some time just to think. I have a saying "A mind expanded would not return to its original state."

5. Become an Entrepreneur - I know you have a lot of reason why you don't want to consider starting your own business. And listen I am not asking you to quit your job tomorrow. All I am telling you is to start thinking and looking at things differently. Don't wait until the lovely corporation fires you before you start thinking about starting your own business. If you have a skill or a gift start developing it and start marketing it on the internet for potential customers. There is more to life than 9-5 jobs. There are a lot of undercurrents in the economy that would make it difficult to sustain a permanent job for life.

6. You have a limited time on this planet - Do you want to spend your whole life doing things that you don't enjoy. After you strive for success and all that comes with it  remember that nobody will remember you in 100 years.

7. Start living below your means - make it a habit to save at least 10% of your income and be thrifty. In these days of extravagant living any suggestion for people to live below their means is dismissed, but it is one of the ways you can escape from the rat race.

8. Learn time management - Learn to use your prime time efficiently -Prime Time - is the period between 6:00 pm - 10:00 pm - that is the time when the networks charges a lot to the advertisers because of viewership. I was thinking why don't we use the prime time to advance own interest - like read, learn new habits, exercise , take a course etc. we can increase our potential exponentially -use the prime time to advance your interests.

9. Network with people with the same aspirations - Get a network going or start one yourself to encourage one another . Nobody said it is going to be easy, but networking with people with similar aims would help in the journey.

10. Listen to motivation tapes and seminars - You have to start thinking differently and listen to motivational tapes will help you gain a whole new perspective in life and help you change the rat race mentality to an independent thinking ready to fulfill your life's mission and purpose.

THE TEN COMMON MISTAKES THAT REAL ESTATE INVESTORS MAKE AND HOW TO AVOID THEM

THE TEN COMMON MISTAKES THAT REAL ESTATE INVESTORS MAKE

AND HOW TO AVOID THEM

1. NOT HAVING THE PROPER INVESTMENT KNOWLEDGE: Real Estate investing is one of those subjects where the risk involved is directly proportional to the knowledge you have. As a real estate investor you have to invest in your education by attending seminars and other educational opportunities to educate yourself before you plunge into the game. The more knowledge you have the more confidence you will become as a real estate investor. The more you know about negotiation, creative real estate financing, lease options, the different acquisition techniques and other strategies the less risky your investment. Your knowledge will help minimize the risk inherent in real investment. Please investment in your education.

2. NOT DEVISING AN INVESTMENT STRATEGY: What is your strategy as an real estate investor? Are you a cash flow investor? Do you buy, rehab and sell? Do you buy, rehab, refinance and sell or rent? Do you buy and wholesale to other investors? Do you buy and flip the property immediately? If you device your strategy before you buy, it will enable you to see your financial numbers clearly before you buy. A lot of beginning investors do not have a clear strategy and as a result they lose money because they try to change strategy in mid-course. Before starting your investment career please have a clear investment strategy.

3. NOT UNDERSTANDING THE REAL ESTATE MARKET: It is advisable to understand the real estate market in your local area. Even if you are buying one property per year it pays to pay attention to the shift in the market place. As you may know there is an interplay of market forces that is very subtle but do make an impact on the local market. For example, shift in population, immigration patterns, inventory of new buildings compared to re-sales, foreclosure levels in the market place, interest rates etc. All these invisible patterns do make an impact in the market place. As investors we need to understand market forces in order to make rational decisions. Also whether or not we are in a buyer's market also do have an impact on particular investment strategy that we are pursuing. For example, what is the state of the rental market? Is there an over-supply of properties therefore trending down rental rates? There are some of the factors that need to be considered in making a decision to purchase an investment property. For example, what is your strategy in the current market environment?

4. BEING TOO GREEDY: Many a real estate investors come to this business and they want to make so much money in their first deal. Investing and building wealth in real estate does not have to be doing a quick deal here and there and making money. When I talk to investors they tell me I want to make $30,000.00 in my first deal. They have no clue as to the kind of strategy they need to use to make this kind of money. My suggestion is that we have to be realistic in our approach to real estate investment. Like any worthwhile project, it takes a while to succeed and make a lot of money.

5. NOT UNDERSTANDING FINANCING OPTIONS: Financing is the wheel that turns the real estate industry. As a real estate investor, it behooves you to learn and know about this topic. Realize that financing plays a major role in buying and selling real estate; it affects real estate values. Interest rates are very determinate factor in real estate financing. The higher the interest rate the higher the monthly payment and vice verse - the lower the interest rate the lower the mortgage interest you can afford. There are various financial options available to the real estate investor from the ubiquitous traditional financing to the more esoteric creative real estate financing. It is advisable to seek the advice the services of an aggressive knowledgeable and investor savvy mortgage lender to help you with your financing needs. Do you know the difference between a mortgage broker and a mortgage lender? How about creative real estate financing and the more traditional approach. How is it that creative real estate financing is legal in its entire ramification, but it is not very popular with the public?

6. NOT HAVING ENOUGH CAPITAL: Despite the "Nothing Down" techniques being preached by the late night television gurus, real estate investment is very capital intensive. I have always cautioned beginning investors to have some cushion to carry them through the lean times and also in case of unexpected , and occasional problems that often accompany rental properties. As the saying goes it is not advisable to be cash poor and equity rich. A lot of investors place heavy emphasis on the quantity of the property that they possess instead of the quality of their portfolio. I was very excited to hear a very prominent investor suggested that investors should grade their holdings every year so that they can get rid of all the alligators (properties that are eating you alive - literally). Please remember that the quality of your holdings is very important.

7. NOT TREATING REAL ESTATE INVESTING AS A BUSINESS: A lot of people choose real estate investment because a number of late night television gurus promise quick riches in real estate investing to enable you to take expensive vacations to the Caribbean and buy other expensive gizmo. The truth of the matter is that like any other business it takes time for a business to develop a life of its own, get to define your niche, and even acquire the necessary capital to complete deals. A good systems would take about two to five years to develop. The get rich mentality perpetuated by the gurus has led to a loft of frustration on the part of  seminar participants. It takes months and years to build a sustainable infrastructure to support your business and nurture it to grow.

8. NOT HAVING A WINNING STRATEGY: A winning strategy is a set of rules that you devise to help you achieve your investment goals. As an investor you should be able to quantify your winning formula. What is your winning formula as a real estate investor? For example "my winning formula is to buy wholesale properties and re-sell the properties to other investors to generate a minimum cash of $10,000.00 dollars per transaction. A winning formula is a statement of purpose designed to get you focused on your strategy as an investor. A winning formula enables you to focus on your strategy as an investor. It is designed to marshal your resources both visible and invisible.

9. NOT UNDERSTANDING THE PSYCHOLOGY OF INVESTMENT: What is the psychology of investment? It has to do with your mind set as an investor. As an real estate investor most of your offers are going to be rejected because you want to buy your properties wholesale or below market price. In view of this you have to prepare yourself mentally for all the rejection or you will quit the game of real estate investing after a number of your offers have been rejected.

10. NOT KNOWING YOUR EXIT STRATEGY: As a real estate investor, you have to know your exit strategy before you purchase your property. In other words, you ask the question: What am I going to do after I purchase the property. Are you buying the property and flip to other investors? Are you buying rehabbing and selling to another investor or the retail buyer? It is always advisable to know your exit strategy before you buy a piece of property.

ARE YOU AN ENTREPRENEUR? THE 10 MINDSET OF THE ENTREPRENEUR

ARE YOU AN ENTREPRENEUR? THE 10 MINDSET OF THE ENTREPRENEUR

"In a sense, entrepreneurship is the creation of surprises. It entails breaking the looking glass of established ideas even the gleaming mirrors of executive suites - and stepping into the often greasy and fetid pins of creation" George Gilder

Incorporate these concepts into your routine  as you nurture and grow your enterprise

1. STAY MOTIVATED: Surround yourself with people who would give you the encouragement that you need. Starting your own business is a herculean task requiring every ounce of your being. Be so motivated to want to reach your goal more than anything else. Don't expect everything to be smooth sailing but be willing to stand your ground and believe in your project more than any anything else. A study of successful enterprise illustrates that not one of them found it easy to accomplish their task, but they stood their ground.

2. DO IT NOW: Adopt an action oriented philosophy. Invest time in working towards your goal. That is the only way to succeed. With so many things competing for your attention you have to resolve to be action-oriented.

3. WORK HARD: Starting and managing your business is not an easy task. You have to work hard as never before to ensure that success of your enterprise. You have to put a lot into your enterprise in order to receive something. Working hard alone ensures that you are ahead of the crowd. De diligent and shun laziness.

3. BE FLEXIBLE: Be flexible and willing to change even it  means going contrary to what everyone else is doing. The courage to change course is a very positive trait to develop. There are times when the only way to ensure the  successful operation of your enterprise is a change in your started course. As you know times change, people and their needs change. Economic and market conditions change as new trends emerge and old ones die out. Be able to adapt yourself to market and investment alternatives as they present themselves.

4.  ADVERSITY AND YOUR BUSINESS VENTURE: Do not assume that just because you started a business everything is rosy. Business is fraught with risk and adversity. There are time and many times that you will feel like quitting, but if you love what you are doing and have a passion for it, this will sustain you and you will tide the tide of adversity.

An area of the greatest concern has to be with money. What happens when you run out of cash because your customers are not paying on time? The sales that you forcasted are slow to materialize. The idea of bills piling up and no adequate money to pay them  are enough to frighten you. Because the entrepreneur's venture are often beyond measurable risk the rapidity with which adversity can set it cannot be ascertain. Hence the need to go into a venture knowing that adversity in every form would occur and the entrepreneur would have to learn to  the best of his/her ability. Be very determined and not give up on a good idea because of temporary problems or lack of faith from others.

5. ENDURANCE AND STAMINA: Needs to be nurtured as you grow your business. You will need plenty of this. To be at your peak performance you need to keep yourself in the best possible mental and physical condition, To minimize stress and its attendant problems incorporate fitness and exercise  into your routine. It does not make sense to succumb to stress or the effects of overwork in pursuit of your goal. Schedule yourself in such a way that you can get enough rest and maintain a cheerful, positive mental outlook.

6.  INDEPENDENCE: Be able to operate independently. Recognize that as an entrepreneur you are responsible for every step of your achievement. You must be able to work alone on every task toward your goal. However, recognize the need to assemble experts in other fields, for example, in accounting, legal, etc., to help you realize your goal. This requires the need to assemble facts and make quick decision. Your success as an entrepreneur would depend largely on the quality of decisions you make and how you follow these decisions through  with action.

7.  BUILD YOUR CONFIDENCE: The basic ingredient in building your confidence is knowledge. Be knowledgeable in the area you are venturing and it would build your confidence. When you know and understand what you are doing you, you can't help but be confident. Study thoroughly the venture you want to get involved and ask questions of anyone who might be able to give you good advice. The more you know, the more confident you will feel.

8.  BE THRIFTY: In these days of extravagant life style, advising people on the need to be thrifty seems like you are going against the trend. It is advisable to spend money only where necessary for the success of your enterprise. Avoid expenditures that do not add to the growth of your company.

Always remember that thrift is a habit that can be formed. Note that once a business has started an entrepreneur who is naturally thrifty have a greater chance of success than the individual of equal ability who does not possess this quality.

The habitually thrifty person will be able to recognize opportunities for reducing overhead in the current competitive business environment. Minor savings can mean a great even representing the difference between a net profit and a net loss. There is always a fluid reserve to meet contingencies, carry one through the slack period or make it possible to expand or make  improvement without resorting to borrowing.

9. BE INFORMED: As an aspiring entrepreneur, make it your business to be abreast with current information. Not only those relating to your particular area of interest, but also to new trends and shifts in the marketplace if you are going to be ahead of the competition.

You can collect information from all sources - online publication, newspapers, trade journals, newsletters, , books, seminars, computer data banks (the internet), and other experts you can tap for information. You can also begin a habit of starting a library of your own on topics that interest you. For example, I have  built an impressive collection of books on business, finance,  real estate investment and other topical issues of interest to me.

10. GIVE YOURSELF AN ARMCHAIR EDUCATION  :An armchair education enables you to accelerate your knowledge in a particular business field quicker. For example, you can go to the library and research a business that interests you. You can also get consultants to help you. Quick read kits and other similar materials would help you faster. Seminars and other quick online courses and video presentation are other avenues to increase your knowledge in specific businesses. Also, remember that most small business people are friendly and would be willing to offer you all the business advice that you might need in your particular field.

The Ten Myths About Starting A Business

The Ten Myths About Starting A Business

As an entrepreneur who has started a number of businesses over the years I want to dispel some of the sacred cows surrounding starting a business and give you the freedom you deserve to go start your own business and free yourself from the claws of the corporate structure.

Myth 1: Not Enough Money or Capital - This is one of the major reasons preventing so many people from starting their businesses. While this is understandable, the current technological environment makes it easier to start a business for under $99.00. It is advisable to start small and when you start to grow you will attract the  money that you need to grow. Remember that there are a lot of start-up cost that is free or you can also barter.

Myth 2 - Need A Detailed Business Plan - Business plan is just a road map. It is mostly used to attract capital from potential investors. Since you are starting from scratch all you need is a one page summary of what your business is about. You might include Vision and Mission of you business, Your marketing plan, Social Media Outreach, Your Tactics and Strategy, Financial Numbers and your Overall Goal. Of course the Legal Name of Your Business should be included.

 Myth 3 - Have To Register With the IRS - You can start the business as a Sole Proprietor which is the easiest way to get started. You can use your own social security as the business identification number for tax purposes and you do not have to report to the IRS that you are in business until you file "Schedule C" the following year which is your income and expense statement.

Myth 4 - You Need A Partner - While seeking a partner is a good idea. Initially, you just need to get started. There are advantages and disadvantages you need to consider before bring in a partner, but if you are passionate about the business you want to start, just get it started.

Myth 5 - Difficult To Start A Business - Starting a business is the easiest part. Managing it might take a while to know the intricacies involved, but that should not deter you from starting. Just start and the rest will take care of itself. As I mentioned before the current technological environment makes it easier to get started than before. There are so much information out there to research your business. There are  risks in all endeavors, but if you plan your entry carefully, you can minimize your risks

Myth 6 - Must Have a Business Degree - While it is necessary a plus, it is not a requirement. I believe that the most important thing you need is a passion for the idea or the business that you want to start. Everything else will fall in place. Remember that many of the businesses started in recent years were not started by college educated individuals; the Late Steve Jobs of Apple Computers and Bill Gates of Microsoft come to mind.

Myth 7 - Need A Bank Account - Yes you need a safe place for your deposits, but you can set up a Pay-Pal Account. Let all your payment be made through a Pay-Pal Account.

Myth 8 - You Need A Good Credit - You are not going to the Bank to borrow any money so No you don't need a good credit.(At the appropriate time you can clean up your credit). Just get the business started. Also remember banks as institutions are not interested in lending money to small businesses. For the banks to consider your loan you should be in business for three to five years. (The joke is that the Banks will give you money when you don't need it).

Myth 9 - Need To Start The Business At The Right Time - There is no right time to start a business. What you need is  carve out time to start and develop your business. As I scan the environment, I believe the right time is now. If you need to hire people on a commission by contract basis, there are so many experts on the unemployment pool to hire and deploy.

Myth 10 - You Need Experience - Having your own business is the best on the job training.  Listen you know more than you give yourself credit so just get started. My assumption is that you have a skill and a passion. In areas where you need assistance there are plenty of experts to tap into to complement your weaknesses.

Conclusion: Don't let fear prevent you from starting your business to help humanity. Once you get started your fears will disappear.

HOW TO TURN YOUR HOBBY INTO A BUSINESS

HOW TO TURN YOUR HOBBY INTO A BUSINESS

At a networking event the other day a friend of mine asked me "George, is it possible to turn my hobby into a business? And also what is the difference between a hobby and a business? I know some of you might have a hobby that you would like to turn into a business, but don't know how. This blog post would attempt to point you in the right direction.

What is the difference between a hobby and a business?

A Hobby - A hobby is an activity that may produce an income, but is operated for pleasure without the intent of making a profit.

A Business -Business is an activity conducted on a regular basis with the intent to make profit, but you are not required to make a profit in order to claim tax deductions.

REMEMBER: To be a business you must have a product or service which you offer regularly to the public. You demonstrate your intent to operate a business by:

• Talking regularly to potential or actual customers and keeping records
• Open a separate bank account - Pay- Pal Account
• Keep good records of income and expenses
• Profit and loss statement
• You automobile or other assets need not be in a business name to be become deductible

As a business you may deduct all of your ordinary and necessary operating expenses, no matter how great or small your income.  If you have more income during the year than expenses, the difference is your taxable profit. If you have more expenses than income the difference is your taxable loss.

Quick Business Start-Up Kit

1. Select  a business idea based on your interests, abilities and the amount of the time you have to spend on your venture

2. Choose a form - a Sole Proprietorship - Partnership -Corporation

3. Choose a business name and file it at the county clerk office for license

4. Offer your product for sale to potential customers

5. Learn everything you can regarding your business from books, tape courses, seminars, the internet, etc.,

6. The Small Business Administration (SBA) also has valuable resource publications

7. Colleges continuing Education departments also have various courses

Ask yourself these questions:

Do you have a business plan? What is your objective? What is your time frame? Have a five year incremental time frame and take into consideration the different market cycles that you will encounter. Is it possible to make money in the beginning, and can you sustain the momentum?

THE TEN BUILDING BLOCKS OF PROFITABLE REAL ESTATE INVESTMENTS

THE TEN BUILDING BLOCKS OF PROFITABLE REAL ESTATE INVESTMENTS

As a successful investor, it is advisable to have a framework to operate. These ten pillars is a theoretical framework to enable you identify some markers for you to operate efficiently.

1. Identify Your Winning Formula: A winning formula is a set of rules that you use to guide you in your investment decision making process. When you have a winning formula, it helps you narrow your focus and able to pass over deals that fit the criteria.

2. Identify Your Niche Market : It is crucial for you to identify your  market. Define exactly the kinds of property you want to buy and the profit you want to make on each of them. (If does not fit the criteria do not buy it).

3. Know Your Financial Numbers : The numbers always tell a story - The Return On Investment, Cash-on Cash Return. You can pay a full price for a piece of property and still make money.

4. Know The Psychology of Investments:  The mechanics of the buying process - Remember that 80%  of the time you would be making offers.

5. Identify Your Target Market For Selling The Property: Mostly First Time Home Buyers and how to market to them. First time home buyers are always interested in some kind of First Home Buyers Assistance so get them some assistance. Have a specific market plan in place to sell your property. For example, a data base of customers ready to purchase.

6. Identify your team members: (Attorney, Accountant, Mortgage Banker, etc.). You can create a leverage through them.

7. Know Your Exit Strategy:  Are you buying to sell, rent, lease purchase etc. Are you creating a cash flow or cash out? You should know this exactly before you structure the deal. The exit strategy would have a great implication on your taxes.

8. Know the tax implication of Your Deals:  Do you want to hold title under a corporate structure - Limited Liability company, S-Corporation, C- Corporation

9. Create a business : Create a business plan for effective utilization of your resources. Identify how much money you want to make and shoot for it.

10. Monitor the real estate market: markets change all the time so you have to keep abreast of the markets though reputable publication and resources. For example, in certain parts of the country, we are in a seller's market so you need to change your strategy to take advantage of the market conditions.

How I bought My First Business : A Lesson In Business Acquisition

How I bought My First Business : A Lesson In Business Acquisition

Part II

Over the years, I had learned how to study the newspapers and identify lucrative deals. But in the early 1990's, I used to scan the New York Times business sections for deals. I had gotten use to calling owners of various businesses and negotiating with them with the intention of buying. But my efforts were not fruitful. So as soon as I moved to Atlanta, I put the ideas into action. Prior to moving to Atlanta from New York City, I had studied the Dry Cleaning and Laundromat business and I knew that it was a lucrative business and the cash flow was excellent.

In Atlanta, I started studying the Atlanta Journal Constitution (The Business Section) and identified a Laundromat for sale. I immediately called owner and negotiated a deal to buy the Laundromat. The interesting thing is that I was able to negotiate and acquire the Laundromat without any bank financing. How was I able to acquire the business without bank financing?

Through my numerous mentoring program and entrepreneurship studies and research, I have discovered that you can purchase a property without bank financing. I also learnt that it is possible to acquire a business without possible bank financing and for the owner to carry back the financing. So during the negotiating to buy the property I asked the owner to finance the deal and he agreed to finance the purchase with a down payment.

In buying a business it is advisable to conduct a due diligence process. What is a due diligence? This is term used for a number of concepts, involving an investigation of a business prior to signing a contract. We audited the financial statement of the company and evaluated any legal matters that could affect the business. I decided to go ahead after I was satisfied with the due diligence.