It’s not just about the business cards.

“More business decisions occur over lunch and dinner than at any other time, yet no MBA courses are given on the subject.”

 

-Peter Drucker

 

Everyone would rather do business with someone they know, trust and who gives them business in return.  This is the premise of all networking.

 

Salesmen get a bad rap for always going for the yes (“can we meet on Tuesday, or would Wednesday work better for you?”), rushing the rapport (“nice fish, Mr. Prospect”) and being insincere.  Concentrating on the sale is the antithesis of networking.

 

Next time you’re at a meeting go for quality over quantity.

 

When you meet someone, the 2 things you should be looking (and listening) for are:

 

1)      How can you be of unique service to this person? 

You’ll need to know your market, your product, and how to communicate its benefits concisely.  This should not be a sales pitch; it should be a natural extension of your introduction. (see sidebar Elevator Pitch)

and

2)      Who do you know who can benefit this person?

Linking your connections to others maximizes your exposure and brings additional value to your inner circle.

 

Once you’ve introduced yourself, ask for permission to follow-up with an e-mail or phone call which will contain an item of value (e.g. a coupon or free report) Now it’s just a matter of doing it and doing it consistently.  Each time ask how you can be of service, look for the opportunity to connect members of your network to each other and offer value from the relationship.

 

How do you meet people?  Attend chamber of commerce functions, join your local Rotary chapter (or any similar community based service organization) or volunteer to be on a non-profit board.  Whichever one you choose, before attending each function ask yourself what the outcome will be: 1) maintaining existing relationships; 2) asking existing contacts to introduce you to new people; or 3) expanding your inner circle.  Ideally you should attend at least one of each event monthly.

 

Volunteering is a great way to meet people and be seen. Attend a few meetings before committing.  You’ll be judged on your performance, so don’t over commit.

 

Build a diverse group.  Be open to meeting & connecting throughout the day; at the gym, grocery store, running errands or at lunch or dinner.  Each is a chance to meet someone new and add people to your circle.

 

 

 

Don’t waste time with negative or unproductive people.  If you’ve been talking to someone for 3 months and there’s no sign of business, let them go.  It’s your responsibility to create a thriving, successful & productive network.  People want to do business with successful people.  And the positive energy you feel being around success will encourage you to strive harder to reach your goals.

 

Don’t be afraid to ask your network to help you.  Ask for their business, advice, and recommendations.  If you take the time to create friendships, what you get will dwarf what you give.

 

 

Sidebar:

 

Elevator Pitch:

 

A concise, planned, and practiced oral description about your company that your mother should be able to understand in the time it would take to ride in an elevator. 

 

 

Housing stimulus bill

On July 30^th President Bush signed the Housing and Economic Recovery Act of 2008 into law  Here are the provisions that will affect most people:

 

      1)      Effective December 31, FHA loan limits will increase to $271,050

            (or 115% of the local  median home  price) with a cap of $662,500.  

            The down payment requirement will also increase from 3% to 3.5%.

 

2)      First time homebuyers will receive a $7500 tax “credit” if they buy between April 9, 2008 and June 30, 2009.  It’s really an interest-free loan because it must be paid back over the next 15 years.

 

3)      If you’re one of a handful of people who own a home and don’t itemize deductions like mortgage interest and taxes, now you can take a $500 ($1000 married filing joint) deduction.

 

4)      Effective October 1, homebuyers with “problematic” subprime loans can refinance through FHA.  If your mortgage qualifies, your existing loan will be written down to 85% of the current appraised value of your home and you’ll get a new FHA 30-year fixed mortgage at 90% of your home’s appraised value.  The difference will go to loan costs.  When you sell, you’ll have to repay FHA half your appreciation.  The loan limit on this program is $550,440.

 

5)      Effective October 1, seller down-payment assistance programs will be prohibited. All other seller assistance programs are still allowed (e.g. state, non-profit)

 

6)      Effective January 1, any property converted from second home or rental property to principal residence will be taxed at capital gains rates during the time it was held as a second home or rental.  The principal residence exclusion of $250,000 ($500,000 married filing joint) will be available only for the portion of the gain attributable to the time you lived in the property.

 

The Act also tightens the licensing requirements for mortgage originators, creating an affordable housing trust fund and providing communities with money to purchase foreclosed properties.

 

One provision has already proven to be too little too late.  The Federal Housing Finance Agency, which was created to oversee government sponsored entities Fannie Mae and Freddie Mac, will now orchestrate their multibillion-dollar taxpayer bailout.

 

Posted by: Betty Kincaid

 

MREI Session #4

Our last class of the year will focus on:

Negotiation:  How much should you pay; what kind of terms are best; when is it time to walk away.

Title: How to hold title for maximum benefit with minimum liability. We’ll also have a representative from Old Republic Title stop by to show us what to look for when reading a preliminary title report.

Accountability: Tips for staying on track to accomplish your Big Why. 

November 12, 2008

6:00pm-8:00pm

3100 S Durango Ste 106

(East side, 1/3 of a mile north of Desert Inn)

Contact us to reserve your seat.

MREI Session 3

Millionaire Real Estate Investor Session #3

 

Missed our 3^rd class? Here’s the recap:

 

“Even if you’re on the right track, you’ll get run over if you just sit there”

Will Rogers

 

To become an MREI (Millionaire Real Estate Investor), you need to do 3 things.

 

 

1)      Determine Your Big Why

2)      Track your net worth

3)      Create & implement your investment policy

 

When I asked the audience who had completed all 3 steps, hardly anyone put their hand up. 

 

A former mentor said “Give them books and they eat the pages.” She was talking about me, and not approvingly.

 

On the very cover of the book on which these classes are based, Gary Keller & Dave Jenks say  “Anyone can do it….not everyone will…will you?” (emphasis mine)

 

 

So now that we’ve left behind the 94% of people who lack the simple will to get started, how do we find, qualify and buy investments?

 

If you’re an MREI, you’re always thinking about your next deal.  You know what you’re looking for (investment policy) and what you can afford (net worth). When you find the right fit, you act.  

 

Finding the right property means talking to lots of people, asking lots of questions, looking at lots of properties and making lots of offers,  most of which will be rejected.  To help you get that property, you need to assemble a team of like-minded people – including mentors, investors, real estate agents, lenders, accountants, attorneys, property managers, contractors, property inspectors…. 

 

Networking is the art of meeting people who can help you get to your goal while they move toward their own Big Whys.  That dependent clause is crucial.

 

 A regional bank recently asked The Kincaid Team to list some real estate-owned (REO) property.

 

The bank’s asset manager asked us about our goals, values and strategic plan.  I was pleasantly surprised that he asked, and he was even more pleasantly surprised that we’d already prepared our answer. 

 

A mismatched set of values is the #1 reason partnerships fail. 

 

Now that everything is in place, it’s time to find your next investment.  How do you find great properties?  You look at a lot of deals, qualify them against your criteria and whittle them down to those you want to buy.  You might start with 30 properties, make offers on 2 or3,  and end up buying 1. 

 

When you find a property that fits your criteria-BUY IT. 

 

Contact our office for copies of the outline and resource materials for this class or to reserve your place for our November 12^th class.

 

 Posted by Betty Kincaid

 

 

 

 

 

Are you ready for MREI Session 3?

On August 6^th from 6-8pm we’ll be looking for deals.  We’ll cover how to network, generate leads, qualify opportunities and most importantly, take action.

If you’ve missed the 2 prior classes, check out the recaps here and here.

 

Bring your written big why and completed investment criteria so we can review and refine them together.

 

Contact us to reserve your place and to get additional copies of the sample investment policy.

3100 S Durango Ste 106 (East side, 1/3 of a mile north of Desert Inn)

Posted By: Betty Kincaid

MREI Session 2

 

Did you miss the second class in our millionaire series?  Here’s a recap.

 

Gary Keller & Dave Jenks, authors of The Millionaire Real Estate Investor, state that financial wealth is “the unearned income to finance your life mission without having to work.”

 

My definition is a little different: “Money is the vehicle by which you can change your world.”

 

The MREI uses proven systems (models) to create wealth faster. The net worth model will help you focus on your current financial situation and help you track your investment success.  

 

3 numbers you must know are cash flow, net worth & your FICO score. Check out this blog post for more details on these important numbers.

 

Read Robert T. Kiyosaki’s Rich Dad’s Cash Flow Quadrant to understand how the way you spend money helps determine your net worth .

 

 When your spending habits focus on consumption, you’re “enjoying” shadow wealth.  We all know someone who lives in an expensive house, drives a new car, always wears designer clothes, and is one paycheck from disaster.  The shadow wealthy usually don’t have savings, or even health insurance. You don’t even need to spend ostentatiously and conspicuously to be guilty of amassing shadow wealth  the average American carries over $10,000 in credit card debt, and isn’t necessarily shopping at Saks.

 

True wealth is based on converting cash flow to assets, which then produce cash flow to purchase assets, etc.  Your net worth is your financial scorecard.  Reviewing your net worth monthly lets you correct quickly if you get off track.

 

To calculate your net worth, just add all your assets and subtract your liabilities. 

 

Once you have your finances under control, create your investment criteria.  Your personal investment policy will let you evaluate deals quickly and, more importantly, take action.  Without a policy, it’s too easy to do nothing (rather than make the wrong decision.)  Once you craft your policy, when you find a deal that meets your criteria-BUY IT!

 

Your investment policy should include your big why, goals, time horizon, risk tolerance, expertise, current cash position, tax consequences and net worth.  Contact our office to get a sample investment policy, or visit Morningstar.com or Investapedia.com.

 

The financial model of the MREI covers the triple benefits of real estate investing: cash flow, appreciation and debt reduction. If you follow the #1 commandment in real estate investing, make your money going in, you begin building equity as your property appreciates and your debt shrinks. 

 

If cash flow is important to you, the combination of rent increases and debt reduction means that your cash flow will grow over time.

 

Keller & Jenks discuss these models in The Millionaire Real Estate Investor. Contact our office for a free copy and to reserve your place for our next MREI class on August 6^th.

 

 

Posted By: Betty Kincaid

MREI Session 1

Did you miss our first class in the Millionaire series? Here’s a recap.

How you think about money is just as important as where you invest it. Your beliefs & habits regarding saving, investing, building wealth and budgeting determine your success.

Gary Keller & Dave Jenks, authors of The Millionaire Real Estate Investor, define financial wealth as the unearned income to finance your life mission without having to work.  How do you define wealth?

The MREI builds a foundation consisting of criteria, network & terms. Criteria determine how you’ll invest; network determines where you’ll invest; and terms determine when you’ll invest.

The MREI knows that actions and results start with thoughts.  Here are 7 ways MREIs think differently than other investors (or non-investors.)

Think powered by a big why:

Before you dive into how to make a million, you need to decide why you’ll make a million. Everyone’s why is different but everyone must have a reason.  It’s what will keep you going when the deals are scarce, your tenants are being difficult and the odds for success seem overwhelming.  Your why is the reason to get out of bed and apply your creative energy to the task of becoming a MREI.

 

Think big goals, big models & big habits:

 

Learn from experience – other people’s. Sure, you can try to devise your own system, but isn’t it easier to copy what works?

 

Think money matters:

Do you work for your money or does it work for you?  A life based on consumption and cash is an illusion of wealth.  Living from paycheck to paycheck, even if it’s a great paycheck, doesn’t lead to wealth. It leads to bankruptcy.  You create real wealth when you invest in assets and creating passive income.

 

Think net worth:

MREI Class #2 is all about net worth, so jump over there to read more on this subject.

 

Think real estate:

Real estate will always be a great investment because it’s:

Accessible-anyone can buy it.  No accreditation or license needed.

Appreciable-as a long term investment, real estate meets or beats the stock market.

Leverage able-even at a conservative 80% loan to value (putting 20% of the sales price down in cash and borrowing the rest) real estate is the most leverageable investment available. Using debt* increases your return on investment.

 

Think value, opportunity & deals:

Learn about the market where you want to invest so that when the deals appear you’re ready to act. Talk about deals with everyone you meet.

 

Think action:

When you find an investment that meets your criteria-BUY IT!

 

Want to learn more about becoming a MREI?  Call our office to get a copy of the class outline, a free book and to reserve your place in our next class.

 

*Real estate debt is good debt as long as it’s conservative (no more then 80% loan to value) you acquired the property at the right price and your paying at least all the interest (and preferably principal & interest) each month.

 

 

Posted By: Betty Kincaid

Despite Loss: Running for Public Office was a Valuable Experience – Gail Hartnett, Candidate District 18

In response to yesterday’s voting blog, Gail Hartnett (2006 National President of Women’s Council of REALTORS®) sent this over. I found it a perfect fit and inspiring as well. Gail really hit home how important politics is to our businesses while demonstrating what happens when you don’t vote.
Thank you Gail for sharing this with us. If you have anything you would like to share with us, please send it to info@thekincaidteam.com.

In January 2007, I was asked if I would consider running for the State Legislature. I had thought about it several years back but I had about 8 years of volunteer leadership in front of me. The door was now open and “discovery” began. Family meetings, team meetings, sessions with business friends, neighbors, party officials and lotsa prayers followed. I believe that Authenticity, Transparency and Unity are imperative to good government. We need people with strong convictions, no pre-determined agendas and a true desire to listen and represent our citizens. .. I made the decision to go for it!

My life experiences and leadership roles prepared me for the challenge. …I found myself stretching “one more time” and doing things I have never done before. I met people I never would have met. I used my networking skills and raised them to yet another level. I was proud to be a REALTOR® as I shared what we do as professionals to improve the quality of life for those in our communities. I learned more about our schools and the teachers who are so important to our future, the issues surrounding our youth, our elderly and our businesses. The economy, air quality, transportation, hospitals, taxes, education, home schooling, health care, horse racing just a few of the issues brought to my attention.

What I knew when I began, was that while our Legislature is in session, laws are being made every day that affect our lives and the lives of our children and loved ones. As a REALTOR®, I understand that these laws affect our livelihoods, our way of life and the lives of those whom we serve. What I didn’t know, was how many of us take what we have for granted. Actually, I did know that, but it was brought home “vividly” as I continued my adventure.

I attended Campaign Schools. I now understand why we donate to candidates we believe are the right people for the job…..It takes money, and lots of it to market to the public and get your message out. I understand the importance of volunteers. I understand how important your family is and how ultimately, they are the ones who matter most.

Let me tell you about the interviews and the questionnaires from organizations I didn’t know existed. Sitting at a table with the Editorial Board of the newspaper with your opponent sitting right beside you…that was a treat….wow….knowing that you “knew your stuff”, but feeling that you just weren’t “on”… …then reading the paper two days later and getting their endorsement …that was a high!

Going door to door actually meeting voters…that became my new weekend, evening and sometimes weekday activity.…the district was a lot bigger than I thought when I started this.

The Primary was May 27th. We did not prevail. We ran a good, positive campaign.

What have I learned from this? A question I always pose to those whom I mentor when things don’t go as planned. I have documented the process of my campaign and will use it in the future to help others move into positions of influence in our communities. Good will come from my experiences. I have met incredible people with valid issues…I have had the support of the business community and many, many others and I will serve in some way to assist in the important work that needs to be done.

Two important messages:
1) WE NEED GOOD PEOPLE…. Okay GOOD PEOPLE…step up to the plate and Run for office!
2) GET OUT AND VOTE…don’t let anything stop you!
Was it a good experience? It was a GREAT experience!

“Bad politicians are sent to Washington by good people who don’t vote.” William E. Simon

Election Day is coming, are you ready?

The most important thing is to register to vote. I have heard many people tell me they won’t register to vote because it means they will get jury duty. This is wrong (at least in Nevada). Jury duty is done through the DMV records so if you have a driver’s license or even an ID card, you are already on the list. Depending on your chosen party affiliation, you may not be able to register up to 30 days before the election date, so do it now. You can click on Rockthevote.com or runtovote.com and register right on the site. They do voter registration all over the country, just fill out the form. I’ll wait.

Now that you are registered, you have some homework. Educate yourself on the candidates. Voting uninformed is almost as bad as not voting at all, it leaves it up to the chance. Here are a few non-partisan websites dedicated to comparing candidates on all levels.

www.vote-usa.org
www.votesmart.org
www.usavoter.com

If you’re a REALTOR®, you can contact your local Association and your Government Affairs department and they will have a voter guide for you. These candidates are in your voter guides and need your vote. This will help you make informed decisions about those candidates that have a direct impact on our businesses. If you’re going to be in Vegas, the local chapter of Women’s Council of REALTORS® is having their meet the candidates mixer on August 6. Email me for more information, Jessica@Thekincaidteam.com.

Finally, go VOTE. If you don’t think you’ll be able to remember to vote on Election Day or you don’t want to stand in line, vote early. Going to be out of town, vote absentee. There are many ways for you to vote, it’s easy and painless…I promise.

Besides, if you don’t vote, you can’t complain. “People who don’t vote have no line of credit with people who are elected and thus pose no threat to those who act against our interests.” Marian Wright Edelman

Posted By: Jessica Kincaid

Graduates keep program alive

http://www.viewnews.com/2008/VIEW-Jul-01-Tue-2008/North/22423453.html

ICAN helps kids deal with stress, drugs and other lifestyle issues

By LAUREN ROMANO
VIEW STAFF WRITER

They can’t let it go.

A group of 20- and 30-year-olds who spent their tween years attending leadership camp have worked to make sure that kids still are able to participate in the program they loved so much.

About two years ago, the group formed Issues Concerning Adolescents in Nevada using the tools and experiences they had while participating in Students Taking Action to Terminate Unlawful Substances.

"It was such a huge part of us growing up and making us who we are, and it was heartbreaking to think it wouldn’t be there for other kids," said Lisa Fotheringham, vice president of youth with ICAN.

Although the resistance education program and annual summer camp that Cadwallader Middle School teacher Jim Shoop ran in the 1980s and ’90s has never been dark, Fotheringham said that after Shoop got cancer and became less involved, the programs just haven’t been the same.

After nearly 18 months of working under the ICAN name, the organization has received nonprofit status and participants are gearing up for their second summer camp in August.

When the program started in the 1980s, the focus was on drunken driving, and in the ’90s, saying no to drugs was added. But "these kids are faced with stuff we never had to deal with," Fotheringham said.

The new name reflects the large range of topics today’s kids deal with, which include staying drug and alcohol free, focusing on school and a positive community. Topics discussed are stress, anorexia, drunken driving, peer pressure, people skills, prescription drug abuse and self-destruction. Fotheringham said they will bring in guest speakers to talk about anything the kids recommend.

During the nine-month school year, participants from all over the valley meet once a month at the Clark County Government Center, 500 S. Grand Central Parkway, in downtown Las Vegas.

"(ICAN) changed my perception on ways to live, especially stress," said Alex Wheatley, 15, a Northwest Career and Technical Academy student. "I am more organized now."

The one-week, youth-run summer camp gives participants a chance to have fun with campfires, dances and games, but the more serious talks take place when students are split into family groups, do activities and have discussions.

"Camp was an amazing experience," said Wheatley, who was a youth staff member last year. "I came back talking to everyone about it. I can’t wait to go back this year."

Youth staff is made up of high school students who have attended camp in the past. Last year, for ICAN’s first camp, the youth staff included students who had been in the Students Taking Action to Terminate Unlawful Substances. The student leaders are given the reins to organize their own curriculum.

"Camp is a life-changing experience," said Theresa Verali, 15. "It’s pretty crazy how close you get with people just from one week of camp."

Students ages 11 to 17 can join ICAN at any time. There is no cost to be a member. The camp, which takes place from Aug. 11-17, is held at Camp Lee Canyon at Mount Charleston and costs $225. All meals and activities are included.

For more information or to register for camp, visit www.icanlv.org.