The Importance Of Adding To Your Real Estate Investment Group
Copyright 2006 Chris Anderson
But teacher, the computer gremlins ate my homework!!!!! Unfortunately, that is what happened to my well crafted article for last week, right before I left to teach classes at the Learning Annex in New York.
The good news is that after being in NYC, I can now give a really strong example about today's topic which covers what to do once you have found ( or created) a great real estate investment group. What MOST people do from human is exactly opposite of what it takes to be a part of a real estate investment group that yields outstanding investments time after time.
It is human nature to believe that if you have something good, you don't share it with others for fear of not having enough to go around. Psychologists call this a "SCARCITY" model were people believe that there is only a finite supply of anything worthwhile. Coming from a very conservative background, where I grew up the son of a college professor, I was cursed with this scarcity belief.
As I started to gain more and more success, the more I realized that many successful people believed exactly the opposite of me: that is, they believed that by working together and sharing, you could produce an INFINITE supply of whatever was wanted. This is what experts refer to as an ABUNDANCE model.
So how does that apply to us? Let me give you the example from the Learning Annex. During our last night, we had a person in attendance that has been with our group for some time and has participated in multiple projects. This person is a full time real estate investor, is very savvy in her choices, and it's a big believer in the power of real estate investment groups.
Afterwards, we got talking about how she might be interested in purchasing multiple units in our N. Tampa project and probably would also know others that were interested. To her credit, she did not want to "hog" too many units for either herself or others outside of the GetPreconstructionDeals.com real estate investment group.
In my opinion, this person could SUBSTANTIALLY INCREASE the ability of others in our real estate investment group by telling others now. Yes, we may run out on "this project" but now let's look complete the chain of events:
1. Some people cannot get into the project because it is sold out;
2. Because it is sold out, several developers take notice and want to offer special incentives to the real estate investment group;
3. Another good project is offered and because of more people are around, a substantial number of properties are consumed, some of them by people who could not get in last time.
4. In turn, this continued activity attracts even better opportunities by developers
5. Because the opportunities are continuing to flow, more and more people are attracted to the real estate investment group;
6. The process simply continues providing an ABUNDANCE of opportunities for all.
Now, suppose you do the opposite and individuals decide that it is a bad idea to grow the real estate investment group. Now what happens?
1. First project, everybody gets to participate and is very happy;
2. Developer's notice what occurred and want to work with the real estate investment group;
3. Next project is offered but VERY FEW people participate because they are personally tapped out since many in the group only want about 1 investment per year;
4. The real estate investment group now has difficulties getting good projects in the future since developer's don't know if it will work.
Let's do a real life, current day example. Right now, we are in discussions with a mid-size developer for getting access to about 40 units of a project that we think will truly be awesome. But what this developer NEEDS our real estate investment group to do is take 40 units VERY QUICKLY to greatly assist in their financing program.
For our real estate investment group, if we can solve the developer's problem and get good investments for ourselves, they have another 160 units coming several months behind this project; i.e., increasing opportunity for EVERYONE. It is our personal stance that by feeding the below cycle, EVERYBODY in the real estate investment group wins over the long term.
For this reason, regardless of if you have your own real estate investment group or if you are a GetPreconstructionDeals.com member, we hope you will keep growing your group by telling people what you do and how they can participate.
This is the last in our series about real estate investment groups and how to get the most out of them. In March, we start our next series talking about the a number of real estate investments and how we see them fare in 2006 and beyond.
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Dr. Chris Anderson is the founder of http://www.GetPreconstructionDeals.com and is referenced in many venues including the New York Times and USA Today. Get his weekly, thought provoking articles by signing up today!
Overpricing Homes: Sellers #1 Mistake When Listing Their Home
Home sellers said that overpricing was the biggest mistake they made when listing their homes. Next worst mistake is dealing with the same real estate agent who represented the buyer.
Overpricing a home is the number one mistake sellers said they made when listing their homes, according to a new national real estate e-mail survey. The margin was nearly three-to-one over the second choice concerning homes for sale.
Survey respondents said their next biggest mistake was "dealing with the same real estate agent who represented the buyer," thereby setting up a possible conflict of interest and possibly a perception that the buyer was getting a better deal with the home price.
Third biggest mistake was "failure to disclose known defects or problems." Virtually tied for fourth place were: "under pricing their real estate properties" and "not utilizing Internet technology to market their homes."
"With the rapid home price appreciation we've seen in many housing markets across the country, it's not surprising that sellers expectations sometimes outran their local real estate market reality," said Michael Bearden, president and CEO of HouseHunt, Inc.
Bearden expressed surprise over the negative response to agents representing both buyers and the sellers: "Usually it boils down to good communication with the consumer. The agent who communicates effectively and stays in touch throughout the real estate transaction usually has a positive experience with both the buyer and the seller.. With automated response systems customer communication should not be a problem."
Monte Helme is a national public relations consultant with HouseHunt, Inc. Previously, he was vice president of public relations and publications for Century 21 Real Estate Corp.; vice president of communications for AmeriNet Financial Services (now LendingTree); assistant city editor/Orange County for the Los Angeles Times; executive sports editor of the Rockford, IL, Morning Star and Register-Republic; and reporter for the Dixon, IL, Evening-Telegraph. Find real estate, homes for sale through public MLS and by visiting websites: HouseHunt.com and SuperMLS.com powered by HouseHunt, Inc.
IRM Expands Customer Base by Diversifying
To continue offering free services, InteractiveRealtyMarketing.com will start selling products.
It was just one week ago that Interactive Realty Marketing (IRM) announced that it would soon offer its customers the chance to add virtual tours to their listings at the company's site. The company is now announcing that it is planning to offer products. For real estate professionals, supplies and equipment such as signage, printers, digital cameras, and real estate publications will be available, while consumers will be able to purchase products for their homes.
Carly Benson, who manages the operations of the Dallas-based company, says that "diversifying will allow the opportunity to increase the company's margins and customer base." IRM currently offers different property listing plans-both free and paid-to residential and commercial property owners and managers. The company's tag line "Interactive Realty Marketing…where buyers and sellers connect...and save," expresses the company's dedication to bring sellers and buyers together at prices that are beneficial to both parties.
As noted by Carly Benson, the products that the company is planning to offer have higher margins, which will let IRM continue to offer online services at the rates that they currently do.
Interactive Realty Marketing
…where buyers and sellers connect...and save.
www.InteractiveRealtyMarketing.com
In addition to website design, maintenance, & hosting, Interactive Realty Marketing offers free & paid online listings to commercial & residential property owners & managers.
For inquiries generated by this release, please reference the following: Release ID #33060226.
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