We Are In The People Business
October 22nd, 2008
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..
Getting Training
September 2nd, 2008
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..
My Kind Of Freedom
June 27th, 2008
Right now, I am sitting near Seneca Lake in Watkins Glen, NY. We have been here camping since Wednesday. After a passing storm cell, the sky is blue, clear and beautiful. I see the sky peaking through the trees. There is a cool breeze blowing and the sun is warm and gently warming my back. I decided to go to work today. It was my choice. I went to work after riding bikes with my daughter, Katie, and wife, Barb, this morning. Oh, and I almost forgot, I also took a nap. It is late afternoon, and I am sitting back in my lawn chair with my legs propped up on the picnic table. Barb just put steaks on the grill. I bet you are wondering what this has to do with real estate investing.  Well, actually it has nothing to do with real estate investing. But it has everything to do with financial freedom. When was the last time you went to work in your lawn chair in such a beautiful setting?
It is important to keep your eye on the ball in everything you do. What is your dream? Mine is spending time how I want with my family. I am living my dream right now. I hope to see you here soon.
Now where was I? Oh that is right, back to my Mike’s Lemonade.
Bruce..
P.S. Don’t forget, if you want me to help you reach your dream faster, email me and let me know. I launched a one-on-one coaching program. I have room for a couple more, but I will not take more than 12 this year.Â
Disney vs Post Office
June 15th, 2008
Mouse Goes Postal
    Orlando, FL. Mickey Mouse, beloved husband of Minnie Mouse, was arraigned today on charges of murder, assault, battery, destruction of public property, and various weapons charges. Goofey, attorney for Mr. Mouse, announced that the defense team would be pursuing an insanity defense. The esteemed attorney went on to say, “For eighty years my client has been trained by Disney to provide the best in customer service. Due to the increased price of gasoline and fuel oil, he was forced to get a second job which he secured with the United States Postal Service (USPS). The USPS insistence that my client significantly reduce the quality of the service he provides postal customers was too much for him to bear. As a result he was pushed over the edge and committed this heinous crime against his co-workers.” Mr. Mouse’s best friend Donald Duck was out at sea and not available for comments. While this reporter cannot confirm that Mr. Mouse’s dog, Pluto, had been advised of the situation, I did witness the faithful dog growling at an approaching mail carrier. There will be more on this story tomorrow.
Obviously, this article is not real. I am not trying to make light of the horrific and infamous acts of violence that put, “Going Postal,” in the dictionary, nor am I encouraging anyone to resort to violence as a means to solve disagreements. But looking at the difference between the customer service provided by the USPS and the customer service provided by Disney can reveal important clues we can use to grow our businesses.
What actually got me thinking about customer service was an incident I had with the USPS. A little over a week ago, I ordered a movie from Amazon. I had been following the movement of the movie over the last week, and it was supposed to be delivered today. As I peered through the window with child like anticipation, I saw the mail carrier approach the mailbox. My pulse quickened as the carrier opened the door of the mailbox and placed several items in. Some of these items were larger than normal letters, so I knew that my movie had to be in one of those packages. The carrier closed the mailbox and as he moved away. My feet were like wings as I swooped down to get my much anticipated movie. As I am sure you have already guessed, the movie was not there.
I walked with great disappointment back into my office and logged into the Internet to confirm when the movie was supposed to arrive. The Amazon web site confirmed that I was supposed to receive the movie today. So I got the tracking number and called the post office. The woman I spoke with told me she couldn’t do anything until the end of the month. I asked what I thought was a reasonable question, “It only took one day to get from Des Plaines, Illinois to Philadelphia, Pennsylvania. Why is it taking more than five days to get from Philadelphia to York?” She explained that Amazon used a different carrier to get it to Philadelphia. It was clear that I was getting nowhere with her, so I asked to speak with a supervisor. The supervisor told me that the normal delivery time is two to nine days anywhere in the country. So I asked if I can expect it will be delivered this week, and he said, “That’s possible.” “That’s possible?” I asked. He said he could not guarantee that it would be there this week. “Next week?” I asked. He said, “That’s possible.” “This month?” I asked. He said, “That’s possible.” Out of complete exasperation, I finally asked, “This year?” And he replied, “That’s possible.” I confirmed, “You mean you cannot guarantee I will get my package entrusted to your care at anytime this year?” To which he replied, “I can’t make that guarantee.” I could not help but laugh. I thanked him and terminated the call. I actually resent having to pay $0.42 to mail a letter and I also resent the fact that the rate will increase annually.
Compare this to Disney. The last time I was at Disney World, I had a great time. I paid about 33% higher for the hotel room than I would have for a non-Disney room. I paid nearly twice what I would have paid for my meals just about anywhere else. The souvenirs were also higher than one would expect. And yet, I would do the same thing again. Why is it that I would willingly and cheerfully spend hundreds or thousands of dollars more for a vacation and I resent paying 42 cents to mail a letter.  Maybe it is because whenever I saw a Disney employee they were smiling. Maybe it is because every time I had a question I got a prompt and cheerful answer. Maybe it is because Disney made sure I felt like I deserved the best. Maybe it is because when I had a problem (which was rare) at Disney, they said, “Yes Mr. Norton! Let me fix it for you.”
If Disney ran the post office, the answer to my first question would probably have been, “Mr. Norton, I am sorry you didn’t get the package when you expected to. I cannot solve your problem right now because we need to trace it, however, I am going to put a trace on it right away. It will take a day or two to get the results of the trace, and I will personally call you to discuss it when it comes in. Is there anything else you would like me to do for you?” The cheerful response, implementation of a plan, and promise of a personal response would have been enough for me. I don’t expect miracles, no one does. I just want to know someone cares to take care of my needs.
So how does this pertain to the investor?
We are in an environment where many national gurus have taught all of us to grab the deed, get powers of attorney, and other acts that are designed to keep the seller from backing out of a deal. Now legislators all over the country are specifically dealing with these predatory practices and criminalizing them. All over the country it is becoming unlawful to charge up front fees for foreclosure work. So if you can’t get your money up front, how do you ensure you will get paid for your efforts. The answer lies with Disney. The key is found in good communication, good follow through, and a nurturing relationship. You need to keep your client informed as to what is going on. Even if there is nothing new, you need to initiate a call to tell your client there is nothing new. When your client calls you need to return the call quickly. If you don’t know the answer, tell your client you don’t know then research it and call back with the answer. And most importantly, remember it may just be a deal to you, it is a personal loss for your client. You need to treat them with compassion and empathy. Do these things, and you won’t have to be predatory to get paid for your efforts.
Bruce..
A Bit of Nostalgia
June 4th, 2008
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I was talking to someone on the phone the other day about my experience with the legislative process in Maryland and he commented that it sounded like I had been involved in this kind of thing for quite some time. I started to tell him that I had been working with legislators and other public servants since 2005, but then I began to get a little nostalgic about my life, and realized that I actually had been involved like this for nearly thirty years. |
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You are currently looking at a photo of me at age 15. It was in a newspaper article written by Lynne Salisbury with the Columbia Flyer dated January 18, 1979. I was asked by the school administrators at Mount Hebron High School to be their keynote speaker at a boundary line hearing. Centennial High School had opened up, and they took a large block of students from Mount Hebron. Not only did this decrease the number of staff available, but it also reduced the number of programs Mount Hebron could offer. Within two years, Centennial High School was over crowded, and the school board was again looking at making boundary changes. The way they were doing it was illogical, and would create a situation where Mount Hebron High School would still be under enrolled and under staffed and the problem of overcrowding at Centennial High School would not have been solved. As you can imagine, we were less than thrilled with the decision. How young I was then. At age 15 (contrary to the fact the Sunpapers thought I was older which made me feel really cool!)I thought I could make a difference. The interesting thing is that I did make a difference. It wasn’t all me, but I was a part of a team that made the board of education change their mind. In fact, there were over 500 people in attendance at the hearing, many of whom were not happy about one decision or another. Ours was the only objection that prevailed. In fact, the Board of Education finally adopted our solution to the problem. Read the Columbia Flyer Article Read the Baltimore Sunpapers Article Read the Baltimore Sunpapers Article of the Final Result
I hear so many people say, “I am only one person. What can I do?” The fact is that one person can do a lot. In my years as a paramedic, I touched the lives of countless people one person at a time. As a medical educator, I touched the lives of physicians, nurses, paramedics, and lay people who wanted to learn emergency skills they could use to save a life. Currently as a real estate educator I help people realize their dreams. As a public speaker help people to find their dreams and to dig deep into their spirituality to find truth and peace. As an activist, I can actually point to areas of the law and say, “I asked them to do that.” Yes, I am still naive enough to think I can make a difference, and I think you can too. So go out and follow your dreams. Touch people in positive ways. Be naive and believe you too can make a difference. Bruce.. |
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Inspiration
April 4th, 2008
Anyone who has heard me speak knows how much I believe this business is not about real estate and not about money. This business is about people. More often than not, it is about people in despair. Most people we encounter are people who live in the home about to be foreclosed. It is the most embarrassing event they will encounter. They see it as a referendum on their intelligence and usefulness as a human being. They feel like failures. If that weren’t bad enough, the process is very public. It is published in the newspapers – papers read by their friends and family. Instead of reaching out to them, their friends and family are embarrassed for the homeowner and don’t know what to say to them. Instead, they simply avoid contact. The homeowners facing foreclosure end up isolating themselves from everyone else instead of reaching out to those who may be able to help. Many virtually end up as hermits or even worse commit suicide because of how they believe the world determines the worth of their lives and more importantly how they view their own self worth.
Somewhere along the line we got everything screwed up. We decided the value of human life should be determined by their possessions. Our worth as human beings are judged based on our “things” instead of the content of our character. I am going to ask you to think about what epitaph you would want on your gravestone. Would you want your gravestone to read like this:
Your Name
Possessed Many Things
19xx – 20xx
Please take a minute and write down what you would want as your epitaph. Then listen to Randy Pausch. Randy is a professor with Carnegie Mellon University. At the time he delivered his last lecture and the following clip his life expectancy was being measured in months. After you listen to Randy take another look at your epitaph. Is there anything you want to change? How does this change the way you see those facing foreclosure? How does this change the way you want to run your business? How does this change the way you approach wealth creation and any other goals you may have? How does this change the way you live your life? Is your situation different from Randy’s? Has tomorrow been guaranteed to you? You may be wondering how it feels to know you are going to die. I would ask you how it feels to be under the delusion that you won’t.
I think these are important points to ponder.
Randy Pausch Last Lecture Reprise (12 minutes)
Randy Pausch Last Lecture
Carnegie Mellon University (1Hour 44Min.)
Bruce..
Vinny The Rat
February 1st, 2008
Last night, I watched the two hour special Celebrity Apprentice. I don’t watch much TV, but Trump’s Apprentice has captured my attention. There are some good nuggets in there for those who are willing to look for them. But the episode last night was very unique.
For those of you who didn’t see it, Vincent (Vinny) Pastore was asked by Piers Morgan (the project manager) to infiltrate the other team. He did it and passed some information back to his team. But, part way through Vinny had a change of heart. He explained what he was supposed to do there and started helping the team he was sent to infiltrate. Ultimately, Piers started teasing the other team about their slogan, and they fired Vinny. Ultimately, Vinny became what he called, “a man without a country.”
This illustrates several lessons that reflect what is going on in the foreclosure industry:
- Your word is critical to your success in everything. We do not live in a vacuum. Everything we do impacts others. As independent as we want to be, our lives are intertwined with the lives of others. If we want to be successful, we need to have a reputation of being honest.
- We have all heard that good guys finish last. That is only because we look at the battles, and not the war. The truth of the matter is that the good guy always wins in the end. Part of being the good guy is being ethical in your business dealings. Being ethical may mean making decisions that negatively impact your business for the short term, but it buys you much more in dividends in the long term. Do you want more business? Earn a reputation for being ethical. Piers’ decision to be unethical not only undermined the project, but it broke a previously unbroken and winning team. His decision will negatively impact the rest of the team and the team’s cohesiveness for the rest of the season unless another event brings them back together.Â
- If real estate investors specializing in foreclosures had learned these lessons early, we would not have the legislative backlash we have been experiencing over the last three years and will experience for the foreseeable future.
We don’t really own much in this world. The only thing we own is what we can take with us when we die. Our “things” are simply borrowed while we are alive. Our reputation will last forever.
Bruce..
A Forward Look at 2008
January 16th, 2008
Well, a new year is here. Unfortunately for homeowners, we are expecting a 40% increase in foreclosures in 2008 over 2007.  Homeowners need honest help now more than ever. The good news for them is that lenders are getting more creative in their workout options. While it does not represent a big paycheck for those of us who are genuinely attempting to help homeowners, it does give us more tools to use to help them stay in their homes. Ultimately, if we keep the best interests of our clients in mind, we will end up generating more business than we can handle.
 We can expect more legislation this year. Some of it will regulate our activities. Some of it will provide relief for homeowners. One very exciting piece of legislation was signed by President Bush in December. The Mortgage Forgiveness Debt Relief Act of 2007 eliminates the phantom income received when a lender issues a 1099 for the next three years. Obviously there are restrictions and rules, but it will make life easier for homeowners as well as those of us who earn our living helping them.
