Bruce’s Wealth Blog

Dreams are really cool things.  They let you play out scenes that you would not or could never play out in real life like the dream I had last week featuring Katherine Heigel.  Boy did that one come out of left field.  But I digress.

Dreams also help to sort things out that are jumbled around in our brains.  I can tell you that the last several months have really shown this to be true.  It has been a while since I have gotten up at 2:00, 3:00, or 4:00 in the morning because my brain was working on software development hurdles that were too difficult to solve during normal “awake” hours.  As many of you know, I have been diligently writing code for the last several months writing the RFS Short Sale Manager which will be released today or tomorrow.  My wife experienced me waking up at all hours of the night and morning to solve a problem I was dreaming about.  It gave her flashbacks to when I wrote software as a full time job.

Dreams also help us to formulate goals and plan our future.  It was a dream of a better life that brought early settlers across the Atlantic to the “New World.”  It was a dream of a better life that took us westward to California.  It was dreams of a better life that brought technology to us that we take for granted today.  It was a dream of a better life that got me into real estate.  It was a dream of a better life that brought you to this website to read my blog.  Every great human accomplishment came from a dream.  While not necessarily a “great” accomplishment, a perfect example of this is the cell phone.  The cell phone, especially flip phones, and bluetooth technology started off as a dream and shown to us on TV in the late 1960s on Star Trek.

Some people call others dreamers as a put down.  But not to dream is to stay stagnant in life.  I say to you dream and dream big.  You never know where it will lead you.

Bruce..

I know so many people who demand great service from their suppliers of goods and services.  Yet, often when the shoe is on the other foot many of these demanding people are not willing to give a little extra to people demanding it from them.  Why is it that as so-called business people we understand that the way to develop loyalty and grow business we need to go that extra mile, and often choose not do it?

I don’t know the answer to that question.  But I was thinking about it this week as I was working a short sale that needed to close.  The problem was that the seller had two judgments that needed to be satisfied.  During negotiations we  included payment in full for those judgments but we did not get the payoff letters yet.  Once negotiations were complete, it was time to get the payoff letters.  Unfortunately while the first judgment holder was very quick in getting the payoff letters to us, the second judgment holder was much more difficult to deal with.

The judgment holder told us that it would take at least seven days to get the third party authorization into the system to be able to talk to us.  After working the system, I was able to find out that the judgment holder would not discuss the payoff directly, that they needed to refer the file back to an attorney through a national attorney referral network, and that would take an additional 10 to 14 days.  So, the normal timeline would be at least 21 days from initial call to a point where we might get a payoff letter.  The problem with this timeline was that it went beyond the settlement deadline given by the first mortgagee.  And that the first mortgagee already told us they would not extend the settlement since the foreclosure sale date was so close.  So to summarize, if we didn’t close on the short sale in time, it would go to the foreclosure sale and the judgment holder with all the red tape would lose the collateral they had to collect the judgment.  When I explained this to the judgment holder the response was, well then there is nothing we can do.  Talk about not going the extra mile, the judgment holder was a perfect example of it. 

So if the judgment holder wasn’t going to go the extra mile willingly, that meant I would have to do it and give them a better incentive to go that extra mile.  My approach required multiple personalities.  A nice guy approach through the front door, and a factual and demanding approach through the back door to create coercive pressure on the people responsible for getting the job done.

While I was being a nice but squeaky wheel on the front end, dealing directly with the people responsible for getting the job done, I was also climbing the corporate latter on the back end that took me from the local branch in NV to their corporate headquarters in CA, to the corporate headquarters of their parent company in NY, to the world headquarters of the parent company’s parent company in London, UK.  The purpose in talking with the people in the CEO’s office in London was to create a high level of priority and pressure as they send me back down through the chain.  The reason this works is because a corporation relies on being able to solve problems at the lowest possible management level.  If that doesn’t happen there is a failure in the system or a failure with personnel.  Regardless, the CEO of a worldwide finance corporation doesn’t want to hear from someone complaining about one of his subsidiaries doesn’t seem to want to be paid a $2k judgment they are owed. 

The strategy worked.  The representative of the CEO put me on hold and gave me the phone number and name of someone in NY who he had just spoken to about the situation.  The person in NY did the same thing until I was back at the local level.  Only now, I was back at the local level with someone who knew that the CEO in London said to get it resolved and quickly.  The next day I was notified that the attorney had it.  I had already been working the attorney referral network, so they too were looking for it.  In fact, from my understanding it had been assigned to the attorney within minutes of receiving the request from the judgment holder.  I also had been working with the attorney who it was going to be assigned to, so when they received it, they already had everything in place.  We received the payoff letter the very next day.

A large company who had no desire to go the extra mile was now bending over backwards to accommodate the needs of this situation.  Obviously we were going the extra mile for our client, and the client knew what was going on every step of the way because we were using the Short Sale Manager system we created for our Inner Circle members and they could see firsthand how much effort we were exerting to serve them without us having to tell them directly (very powerful).  And a process that was going to take at least 21 days was accomplished in 5 days.  We also derived a tremendous benefit by going the extra mile by strengthening our relationship with our client, we were able to build more relationships in the UK, and I personally found out that the CEO of this company is also an Anglican minister who wrote a book on faith and finance.  I got a new found respect for the leadership of this company.  The relationships and information are much more valuable than anyone could ever imagine.

So I ask you.  How much are you willing to go that extra mile?  Are you willing to make that overseas call?  Are you willing to put in a little extra time?  Are you willing to truly put your client first?  I challenge you to do these things.  Your business will be stronger if you do.

Bruce..

Wow, it has truly been a while since I have written a post.  I am going to start with encouraging you to take a look at a video that will tell you more about who I am and what this Inner Circle is all about.

Give it a try.  Go to http://member.drpreforeclosure.com to learn more.

Bruce..

I am simply going to ask you to look at these two videos this week.  They speak for themselves.  These could be the most important videos you have ever seen.

Video 1

Video 2

Now that you have seen the videos, I have only one question for you to answer: 

What is your excuse?

Bruce..

I spoke to someone who is under a lot of stress today.  She is a business owner who I have a lot of respect for.  The conversation reminded me that when we think about starting a business we have visions of spending months in Tahiti lying on a beach with a drink in our hand that comes with its own little umbrella to shade it from the hot sun.  We don’t think about the work, time, effort, sweat, and sometimes even blood it takes to get there.  But the truth is that everything has a cost.  And, freedom, even financial freedom, does not come free.  The conversation also reminded me that I had endured similar struggles.

For me, the stress really started pounding me when I started adding other things to my business. It was really difficult to stay focused on one thing because I kept switching hats. One minute I was negotiating a short sale, the next minute I was an educator, the next minute I was a social worker, and then I was a landlord. I was doing the work of about 5 to 7 people. What really made me mad was that none of those 5 to 7 people were doing their job well. As a result, my business was spinning out of control. I was at a point where I didn’t even want to get out of bed.

After you start a business and start achieving some level of success you eventually learn that you have your arms around a beast of a business. It is bigger than you ever thought it would be.   It is starts to take on a life of its own, and you are trying to control it.   It is stressful and it is scary.   What adds to the stress and the fear is the fact that you are afraid others might find out how out of control your business really is.  You become paranoid about changes that occur in your business relationships.  You end up thinking even your close associates are out to get you and that there is no loyalty anymore.

If you haven’t experienced this yet, you will.  I did and most everyone I know who has started a business of any kind has.  So here are some things I have learned that may or may not help you. Please let me know if anything rings true here.

1. You need a “Sabbath.” It does not have to be a religious Sabbath. But the idea is that your life needs to be cyclical and part of that cycle is rest. You sleep part of the day, then you are awake part of the day, then you are asleep, etc. To have one day out of seven where you refuse to involve yourself in any form of business is crucial. It doesn’t even have to be on a Sunday. You can pick any day you want, but when you pick it commit to keeping it the same day and don’t ever let anything intrude under any circumstances. You would be surprised how critical rest is. When I was writing software or involved in solving hardware or software problems, it was often in the middle of the night when I came up with the solution. That was because I let my brain rest.

2. Identify the things you can control and control them. Let go of the stuff you cannot control. We spend too much time and energy on the stuff we have no control over. You can control the content of the stuff you send out. You cannot control the content of the stuff people receive, or how they interpret what you send out. You can control your behavior toward others but you cannot control their behavior toward you.  Often we spend so much time trying to control the things we cannot control that we lose control of the things we can.  It is best just to control the things you have power over.

3. Accountability is good if it is used correctly. Accountability should never be used to affix blame. Blame is never relevant.   Blame takes the focus off solving the real problem.  I have watched companies spend weeks investigating a problem so they could assess blame while the problem went unresolved.  It is better to focus on the solution and stop wasting so much effort on blame and retribution.  Accountability is different.  We think about, “holding someone accountable,” as being synonymous with, “if it breaks it is his fault.”  But again, that is not accountability.  Accountability is a combination of responsibility and communicating results.  Accountability should be used to understand what is going on with your business so you can anticipate the future. Used correctly accountability will allow stakeholders to anticipate and allocate resources on the next phase of the project or to start a new project.   The challenge is to introduce that accountability without taking you precious time away that are needed to complete the project. Business owners have a responsibility to know what is going on.   That should not be confused with micro managing.  A simple reporting mechanism should be enough.   But I have to admit, while I believe accountability is important, I find it difficult to hold myself accountable. I think that is normal with entrepreneurs. I think we all find it difficult to keep ourselves accountable. But our businesses depend on it.

4. Focus is critical. We can only focus on one thing at a time. It is important that we don’t dilute ourselves too much by following the next shiny object. That is where I have made major mistakes in my business and why I have run into the financial difficulties in the past.   As a result of those costly mistakes I retooled my business and adjusted my mission to one that is clearer today.

5. Taking a page from Jim Collins, I have to say it is critical to get the right people on the right bus and in the right seats, and to get the wrong people off the bus. This is tough because we don’t want to fire good people. But good people aren’t any good if they are not in the right seats.  It also means firing a client.  That is right, sometimes the client is in the wrong seat or even on the wrong bus.  When we recognize that we need to fire them.  Even more difficult is when the business owner learns that it is he who is in the wrong seat or on the wrong bus.  Sometimes that means the business owner needs to get off the bus completely and let someone else drive.

6. Change is sometimes good. Change for the sake of change is often not good. But, change is inevitable. If your business is flexible and adaptable to change like the amoeba, then your business will thrive in many different economic environments. If your business is not flexible and adaptable to change it will become extinct like the dinosaur. Be the amoeba.

You may be able to relate to some or all of these things.  If you do, you are not alone.  I would not be writing about them if I had not attended life’s seminars on the subject.  You have a choice.  You can think you are different and that these things will not happen to you.  If that is the case, then chances are that you will be sitting in one of life’s seminars learning that these things will indeed happen to you.  Or you can learn from my experience in the seminar of life.  The only thing I can guarantee is that attending life’s seminar will be more expensive.

Take care and happy investing!

Bruce..

As we look at stock portfolios, job losses, and our current economy, it is easy to feel sorry for ourselves.  But tomorrow is Thanksgiving.  And, on Thanksgiving we should be counting our blessings instead of the things that are wrong.

If you live in our country during this harsh economic time, regardless of your income level, you are still wealthier than 90% of the rest of the world.  I learned this year that in Cuba, income is limited to about $20.00 per month.  Just try living on $20.00 per month.  After you tried it, you can start counting your blessings.  The folks at the intersections of our country with cardboard signs make more than that in a single day.

If you wanted John McCain to win the election, you may be down in the dumps.  But since you live in America, you can now enjoy the privilege of complaining about Obama for the next four years without fear of death or being thrown in jail.  You may also be thankful that congressional elections are only two years away.

Maybe this is the year you planned to quit your job, but you couldn’t.  Guess what.  Like it or not, you still have a job that is paying most of your bills and is probably providing you with insurance.

Warning – Shameless Plug – Maybe you spent $20,000.00, or $30,000.00, or $40,000.00, or even more on a guru’s course and found the reality did not live up to the promise.  But as luck would have it, you can still join my Inner Circle for only $19.97 per month.  You could spend the rest of your life as a member and still not spend the big bucks you are paying to other "gurus."  Imagine how much education you could get from me during that time.  End Of Shameless Plug

Regardless of where you are and your perspective, there are things to be thankful for.  So, for this Thanksgiving spend some time counting your blessings.  Fill your belly full.  Then, have a wonderful nap!

Take care and Happy Thanksgiving.

Bruce..

I would be remiss if I didn’t comment on the historic election of Barack Obama.  I will be back on topic at the end of the week.

To All:  Whether you voted for Barack Obama or John McCain, you exercised your responsibility to vote in record numbers.  President – Elect Obama has broken barriers and in doing so is deserving of our respect and admiration.  Maybe the racial chasm that has been ever present in our country is a little narrower – a little shallower today than it was yesterday.  We have given him a mandate to lead our nation to a better place than it is today.  It is up to us to give him the support he needs to do so.

To President – Elect Obama:  You did not earn my vote today.  But you did earn my respect and admiration.  You have done a great thing.  You have been given a mandate from what I think is a more united America.  You have been given a mandate to lead us back into prosperity and to do so with integrity, honesty, wisdom, and discernment.   I hope that you can heal the deep wounds that exist and divide this country.  I also hope that you can set an example that will help us as a people to regain our trust in our government and to strengthen the moral fiber that is critical for the future of our country and our society.  Maybe, just maybe, in four years you will also earn my vote.  Good luck and Godspeed.

Bruce..

Anyone who has heard me speak live has heard me say that we are not in the real estate business, or the money business.  We are in the people business.  I truly believe that tenet.  Our success is based on the relationships and networks we build.  Our very existence as investors is based on solving the problems others need solved.  On Monday, I had a meeting that was set up by a Pennsylvania Realtor® I had forged a relationship with.  The meeting was with an investor with very deep pockets.  This investor gets about 30 sellers who need short sales every month.  He needed someone to work the short sales so he could buy.  That someone is the Realtor® who set up the meeting with me providing all of the back office support.  This will take our typical short sale load of 90 to 120 short sales on our desk at any given time to between 150 and 180 short sales or more.  Not only will my short sale volume increase, but the investor himself is now a resource I have to help my Inner Circle members.  It is all about the relationships.  If I had not formed a relationship with the Realtor® in the first place, none of the rest would have happened.  The best marketing I have ever done, is the same as the best marketing you will ever do – Network and build relationships.

But now, it is confession time.  As much as I teach, preach, believe, and live the truth that this business is about people, I still find myself regressing back to the money.  I caught myself doing this last week when I welcomed some new Inner Circle members.  As soon as I saw them sign up, I started making a mental calculation in my head.  You know, the one where you start spending money you haven’t even received yet.

Don’t get me wrong.  I do have a personal interest in seeing each and every Inner Circle member find the success they want and to reach the dreams they want to reach.  I am very devoted to them.  But the fact that I made that mental calculation told me something about my heart.  It revealed something to me that I didn’t want to see and am embarrassed to admit.

After the meeting with the new investor client I started picturing what that additional $30K to $45K per month income would look like for my business.  Again, the investor and Realtor® will make more money on these deals than I will, and I will do everything I can for them.  But that mental calculation said something about my heart. 

This is something that we all struggle with whether we want to admit it or not.  We are lured into real estate investing with the promise of big, quick, and relatively easy money.  Some investors get out as quickly as they got in.  But for those of us who stay, we eventually come to understand the truth that this is not about money, it is about people and relationships with those people.  Yet, even with that realization there is still a part of us that reduces those relationships down to a dollar amount.

You may be thinking why this matters if we are doing good things for other people.  If they are better off because of the things we do for them, why does it matter?  If you are better off because of the things I teach you, why does it matter?  It matters because it goes to motivation.

A close investor friend of mine came to me a couple months ago complaining that some of the people he is associated with have not been loyal to him.  I told him that the reason people aren’t being loyal to him is because he has done what most of the rest of us have done.  Even though he was teaching ethics and honesty, he was luring them with the promise of big money.  He was teaching them how to make more money.  He had reduced the relationship he had with his students down to a dollar amount, and then he expected loyalty from them.  The focus was on the cash not the relationship.  Is it any wonder there was no real sense of loyalty there?  The reason why there was no loyalty was because there was no strong basis for a loyal relationship.  It was a result of his own doing, and he is not alone.

I have a student in Texas who was complaining about the Maryland law.  He had no idea how anyone could make money if they could not collect the fee up front.  He was shocked to learn that I had no trouble collecting fees after the services were performed.  The difference?  He was focused on the money.  I was focused on the relationship.

Many national speakers have been teaching (and some still do) to grab the deed.  Create a situation where the homeowner cannot back out of the deal.  This is dangerous, unethical, and downright wrong on so many levels.  But I bring it up for this reason:  The reason investors feel the need to do this is because they are focused on the money, not the relationship.  The truth is that if the seller wants to back out, it is a bad deal.  The other truth is that if there is a relationship established between the seller and the investor, the likelihood that the seller will back out is near zero.

Most students don’t believe me when I tell them that networking is the best marketing they will ever do.  It is too easy and inexpensive for them.  I have built my entire business on these relationships.  Like everyone else I have made really stupid mistakes.  Yet I am still in business.  The only reason I am still in business is because of the relationships I have been able to form with others.  Even though I am good at building these networks and relationships, I will still sometimes make that mental calculation.  That mental calculation harms the relationships I am in and I am working to fix that problem in my heart.

So what about you?  Are you pursuing money or are you pursuing relationships?  Are you looking for loyalty but not building the foundation on which to base and expect that loyalty?  Are you focused on what you get from a transaction, relationship, or other event or are you focused on what you can offer to others?  I am not asking you to answer these questions on a superficial level.  I am asking you to go much deeper.  Most people would say my mental calculation is no big deal.  On the surface, I agree with them.  But when I look deeper, I believe it is a big deal and one worthy of change.  Are you willing to dig deep, see the truth that you may not want to see, and then work for change?  If you do I believe you will reap the rewards.

Take care and happy investing!

Bruce..

It has been a while since I have blogged, but that doesn’t mean I have been vacationing.  The truth is that I am in the process of moving “Dr. Preforeclosure” to web 2.0.  What does that mean?  Well, it means we are taking full advantage of the additional bandwidth that is available to produce and serve multimedia content over the web. 

The truth is that I have never been really comfortable charging thousands of dollars for my training.  Don’t get me wrong, I have done it, and been successful with it, but it automatically excluded those who could not afford it. Why is it that only the wealthy can afford to learn how to be wealthy? Why is it that the average man on the street who wants a better life has to get a second mortgage on his home just to learn how?  Why is it that the only people who can get bank loans are those who don’t need them?  I am told that the reason is that if a national speaker doesn’t charge through the nose for his courses, that those who purchase it won’t appreciate it.  I am told that, notwithstanding the S&L crisis of the 80s and the subprime crisis of the 2000s, that banks only make safe bets.  The safest people to lend to are those who have enough money not to need the loan.  But what about the average man on the street?  Where does that attitude leave him?  How can he learn to be wise with his money if he cannot afford to learn?  This is why I am focusing on web 2.0.  By providing all of my education in multimedia format over the web with teleclass support, the cost of teaching drops dramatically, and as a result the student can get the same high quality education without the expense.  The $3,000.00 course is now available for $300.00.

I am putting the final touches on the Maryland Foreclosure Consultant training right now, although you can start taking the course right now.  By the time you get to the end, the course will be complete.  This course will have all the content required to test for certification through the Maryland Association of Professional Foreclosure Consultants, Inc.  The next step will be a course on short sales followed by wholesaling then buying notes.

While it is not functional yet, we also started a new website called BrucesWealthSecrets.com.  This site will have more basic and general material for wealth creation and retention.  It is my goal to offer the highest quality training possible affordable for everyone from all walks of life.  Money plays a role in all of our lives.  It is my goal to teach everyone from all walks of life how to live with the abundance we are blessed with, how to grow it, and how to use our lives to affect income instead of letting income affect our lives.

Wow that is a deep thought. . .  

I will explain more about it later.  But for now, just know that training can be affordable. 

Bruce..