Think and Grow Rich
Think and Grow Rich
The Science of Getting Rich
The Science of Getting Rich

A Warning to Real Estate Investors

Matt Napier's Real Estate Warning to InvestorsSince the beginning of the Great Recession, there has been a debate on cash flow between real estate investors, many of whom learned some tough lessons when the Recession began (including myself). Specifically, the debate is: What kind of deals should you focus on and how is your money best used!? Should you focus on creating equity or focus on creating solid income and cash flow?

You may be saying that they don’t have to be mutually exclusive. While that is correct, many investors tend to focus on either building equity OR cash flow. To me, the decision of what kind of deals to focus on is made easy if you boil it down to one thing- how much money do you need right now to live the lifestyle that you are already living (provided it’s already a decent standard of living) and do you already have enough cash flow to live off of on a monthly basis? If you do not have enough to live off of, do NOT focus your efforts too heavily on equity build up. Instead, focus on cash flow (quick flips, wholesaling, and only rentals that will generate strong cash flow); investments that will put cash in your pockets within 1-9 months.

One of my mentors when I got into real estate investing nearly a decade ago, Del Hinds, who headed the SCREIA, made a point of continually telling me not to focus too much on gaining long-term equity, until I had enough to live on today. His famous words still haunt me- YOU CAN’T EAT EQUITY! I also had another mentor that swore to me, you better have a sure fire exit plan and back up strategy if it doesn’t work. I will explain that more in a minute, but for now, let’s talk about Del’s words. At the time, I thought that he just had a different approach to investing, but he was 100% correct. Although I’d built up a significant pile of equity in properties, that was slowly being squeezed out each month when the Recession hit and since I didn’t focus on strong cash flow from the beginning, the $100 to $150 I was making per property on gross rents (before expenses) barely covered basic maintenance and vacancies, meaning my true profit per month on rentals was close to zero.

This serves as a warning. If the economy goes into another recession (which is certainly possible given the lack of fundamental improvement in the economy and massive spending by our government) and you do not have more than enough cash flow to live on already and are focusing too heavily on equity, change your focus… FAST. Focus on wholesaling, rehabbing, and flipping properties, or if you do buy rental properties, ensure that you have at least 30 to 35% cash flow after PITI payments plus a 10% allowance for vacancies and a 10% allowance for repairs (I actually look for 50% net cash flow now). Just because there are enough properties with potential equity that we can buy all day long right now, don’t buy too many properties too quickly if the strong cash flow isn’t there, and if you’re choosing not to re-sell them right away. Your equity may get squeezed out and you may be stuck with a property that you can’t sell for what you thought, and then you’re holding onto properties that aren’t cash flowing well enough to make it worth your time. You’re one of the smart ones though; you know to focus on cash flow, and thus, you will be a successful investor.

Matt Napier

With nearly a decade of experience in specialized niches of real estate, Matt is considered a highly knowledgeable real estate investor in the Charleston, South Carolina area. Matt has dedicated himself to learning highly specialized skills which allow him to find high-return real estate investments for his clients and his investment company, The Napier Organization. His company offers high-return investment opportunities to select individuals and funds, secured by real estate. In his free time, he enjoys coaching new real estate investors on the technical details of real estate investing.


Start Doing This If You Want Better Relationships

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Strong relationships with others are vital components of a healthy and happy life. Those that are able to build connections with other people tend to lead longer and richer lives.

Those that cannot maintain relationships are more likely to experience loneliness or depression. The effects of both are detrimental to the health of both the mind and body. If you experience difficulty connecting with others, there is a way to build stronger relationships. Whether that be at work or in your personal life, the formula is the same.

Communication is Key

I often get asked the question, “Brian, what is the key to building successful relationships?” And my answer is always the same: Communication.

Much of your success in life is going to come from your ability to communicate well with other people. Successful people know how to communicate and have taken a lot of time to improve their skills.

Communication is just as important in romantic relationships, friendships, and business relationships.

Social intelligence, the ability to interact well with others, is one of the most respected leadership qualities.

Do you want a raise at your job? You’re going to have to ask for one and be prepared to communicate why you deserve it.

Want to let your significant other or friend know that they’ve upset you or hurt you in some way? You’re going to have to be able to communicate with them to ensure they understand how they made you feel.

Invest Your Time

In communicating well with another person, time is the critical factor. The value of a relationship can increase for both you and the other person. It depends on the amount of time that you both invest.

When you take the time to focus on the important issues in your relationships, you open the channels of communication.

Listen attentively, calmly, quietly, and with total attention. It demonstrates the respect you have for the other person, and you deepen the level of trust between you.

Deliver a Clear Message

Effective communication starts with being clear in your own mind about what you want to say. Then be clear when you deliver the message, saying it slowly and patiently.

Finally, make sure that the other person hears the message that you sent.

When you communicate with another person, this is what happens:

The first thing is you send a message into the air in the form of words. Then, the words are received by the other person. They interpret them in their own mind based on their own thoughts, feelings, and so on.

After that, the other person formulates a response and sends the response back. You receive the response and translate that into meaning and significance. Then, you send back your own response.

It’s easy to see how in the midst of all of that back and forth, the original meaning of your message could get lost. It is all based on the other person’s interpretation of your words. This is why it’s so critical to be clear and concise in how you word things.

If you give vague examples or don’t eloquently express your feelings, you leave an open opportunity for someone else to analyze what you meant.

Ultimately, they may come to an incorrect conclusion.

Effective Communication Takes Time to Master

Effective communication is something that takes some time to master.  It can change depending on the person you are talking to.

The key is to understand who you are speaking to. Determine what the ultimate goal of the conversation is and the best route to deliver the message. By consciously doing this, you’ll notice that all of your relationships will begin to improve over time.

Can you identify one person in your life with whom you need to communicate better? What steps will you take to repair that relationship?

It takes a great deal of self-confidence to develop your social intelligence and interact well with others. Discover your current level of self-confidence and how to take action toward building greater confidence in yourself.

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Start Doing This If You Want Better Relationships is a post from: Brian Tracy's Blog

Here’s Why You Haven’t Achieved Your Goal Yet

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Simply put, successful people are goal-setters. Goal-setting applies to every area of our lives. We set goals for our careers, relationships, families, finances, etc. Our ultimate goals, however, set the course for our lives. The ultimate goals define the direction that we go in.

Unfortunately, some people never achieve their ultimate goals in life. They limit their self-confidence and they limit themselves.

Learn how to set achievable goals. Get my FREE 14-Step Goal-Setting Guide.

Identify Your Limiting Step

One of the most valuable exercises you can engage in when setting long-term goals is to ask yourself, “What is my limiting step?”

What is the one factor that determines the speed at which I achieve my goal? Or can I achieve it at all throughout my personal development?
The ability to identify your limiting step is one of the best demonstrations of your intelligence. It is a huge step towards building self-confidence.

Your capacity to eliminate this limiting step is one of the best demonstrations of your overall competence.  You can achieve anything you want.

Self-Confidence is the Critical Factor

In studying everything that has been written or said about personal development and success, I’ve come to a conclusion.  Your level of self-confidence is the critical factor in everything you accomplish. When you have enough self-confidence, you will try almost anything.

Because success is largely a matter of averages or probabilities, the more things you try, the more likely it is that you will achieve them.

The same is true for you. By setting goals, trying more things, and exploring more opportunities, your probabilities of success increase dramatically. The only real limiting step to success that you might have is your level of self-confidence.

When you reach the point at which you believe in yourself fully, the barriers that exist in your external world will not stop you.

Build Your Self-Confidence

The major obstacles to success always lie within the mind of the individual.

They are not contained in external circumstances, situations or people. By building self-confidence, you win the inner battle. The outer battle seems to take care of itself.

I have learned three important ideas for building self-confidence. First, accept complete responsibility for everything that you are and ever will be.

Second, accept that you can change your situation only by working on yourself. Learn what it takes to be better. Third, set goals with timelines for the things you want. Then, work every day to bring those goals into reality.

Practice Persistently

Our natural tendency is to work hard until we find a method or technique that works for us. Whether that be in life, work, or relationships. Then, for some perverse reason, we promptly abandon the technique and go back to behaving in our old ways.

Setting goals and thinking positively act as a mental program for our personal development. Just like an exercise program works on our physical development.

If you expect it to work for you, you have to practice it persistently and keep at it indefinitely.

Apply the Success Principles to Your Own Life

When I began to apply these proven success principles to my life, I was able to bring about almost miraculous changes in every area of my life.

Every successful man or woman that I have ever talked to or read about has come to pretty much the same conclusion. By every measure, you have more talent and ability than you could use in 100 lifetimes.

You, too, can step on the accelerator of your own potential and begin moving forward at a speed that will amaze you by setting goals.

What is one goal that you have always wanted to achieve, but been too afraid to go after?

Leave a comment below, and I’ll be sure to follow up with you.

Goal-setting allows you to achieve your goals faster than you ever thought possible. Download a free copy of my 14-Step Goal-Setting Guide for exercises that will help you plan and achieve your goals for the entire next year.

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Here’s Why You Haven’t Achieved Your Goal Yet is a post from: Brian Tracy's Blog

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