M. Nack’s Blog

Are your current marketing strategies not producing enough leads? Has income been sliding? Overhead exceeding income? Struggling just to make ends meet?

No one adopts new strategies if the old ones are working. A quote from Abe Lincoln seems particularly pertinent to our current environment:

   ”The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty. As our case is new, so we must think anew and act anew.”

What a great nickname: “Honest Abe” - especially coming from Illinois - home of impeached governors. Honest Abe, of course, was talking about the Civil War and preserving the Union. Thank goodness he realized he had to use new strategies - or we might be 2 separate countries right now instead of one United States!  

This is what I’ve discovered: the lead generating strategies of the real estate boom are inadequate to the stormy present. I have been working REALLY hard for 2 years to generate the income I need to sustain myself. I’ve never been a stranger to hard work. But I having been working harder than ever and STILL not generating adequate results. I finally realized that I had hit a brick wall.

Insanity is doing the same thing and expecting different results. If you’re in a hole, digging harder and faster will only get you in deeper.

Delving into social media strategies, I am beginning to realize that THIS is how people want to be communicated with these days!! They don’t WANT you “knocking on their door” (I did plenty of that in my youth!) or calling them on the phone. They want to go to the internet, (i.e. “FaceBook”, “My Space”, “Twitter”, etc…) get the information they want and THEN contact you if they feel like you’ve got what they’re looking for. If they CAN do it by themselves, they will. But most often that just isn’t practical. So, they do the next best thing: they talk to the person they think is the most likely to help them.

The way we did business in the “roaring 90’s” is inadequate for the stormy present. Just as “cold calling” was an awesome strategy for the 50’s and 60’s, relational strategies was amazing for the 90’s. As our case is new, so we must think anew and act anew. Today, the way we market ourselves is using Social Media.

If you find that the old “tried and true” systems just aren’t working for you as well, find out what we’re doing on www.NewMarketLeaders.com. We’ll help you put the all the social media puzzle pieces together.

“All Things With Exuberance!”
mary!

On our teleseminar call last week, I shared a couple of paragraphs from an article by Peter Wallsten of The Washington Bureau that appeared in The Chicago Tribune on Weds, Jan 14, 2009. The article said:

    ”The organization, known internally as ‘Barack Obama 2.0′ is being designed to sustain a grass-roots network of millions that was mobilized last year to elect Obama and is now widely considered the country’s most potent political machine.

    ”Strategists for both parties say the scope of this permanent campaign structure is unprecedented for a sitting president. People familiar with the plan say Obama’s team would use the network in part to pressure lawmakers - particularly wavering members of the new president’s own party - to help him pass legislation on the economy, health care and energy.

    ”The plan could cause tensions with members of Congress, who are unlikely to welcome the idea of Obama’s political network targeting them from within their own districts…

    ”Strategists in both parties said the ideas being discussed would create a weapon for policy battles far more powerful than the speeches, news conferences and donor-targeted techniques used by past presidents.

    ”No one’s ever had these kind of resources,’ said political strategist Ed Rollins, who led political operations under President Ronald Reagan. ‘This would be the greatest political organization ever put together.’…”

I share this article with you because it demonstrates the incredible effectiveness of what the Obama campaign has done using very accessible AND AFFORDABLE Internet marketing strategies!

And what we’re teaching you are the very systems that the Obama campaign used so that you can win your election with YOUR database - “Marketing 2.0″

To hear a *FREE* recording of the call -or to register for our NEXT *FREE* call - where we will cover “Must Have Social Media Tools” - on Jan 22nd, go to: www.NewMarketLeaders.com

“All Things With Exuberance!
mary!

I was listening to a teleseminar last night on REO’s (bank owned real estate). The speaker, (who is an REO specialist and has been doing REO’s since 2000) cited a study done by Credit Suisse 1st quarter 2008 on foreclosure trends. In this study, they predict that 1 out of every 8 homes will end up in foreclosure in the next 5 years!

He went on to cite a pool of loans made by Washington Mutual made in July ‘07. Out of nearly 1800 loans, by Feb ‘08 - 7 months later - over 6% were 30 days delinquent, 4% were 60 days delinquent, 3-1/2% were 90 days delinquent, 12% were in foreclosure proceedings and 3-1/2% were already REO - meaning that the homeonwer never made a single payment on the loan! Nearly 30% of those loans are in trouble!

And are these “deadbeats”? The average credit score of these borrowers is 704. The average loan amount is $519,000. And are these 110% loans? NO!! The average loan to value on these loans is 77%!  The media’s perception that only inner-city, financially illiterate poor people are in trouble is a myth.

So what’s going on here? Because values have depreciated, the homeowner is unable to sell if they need to move (job transfer, divorce, death, marriage - you know, the things that people do in the process of living their lives.) They can’t refinance because they’re upside down - the loans they already have are more than the home is worth. In fact, the only thing they CAN do is walk away!

The speaker’s premise is that there IS a real estate boom - only it’s in REO’s!
 
So what are the implications for the average consumer? Well - as home sales go down, rentals go up. People need to live SOMEWHERE. For those that have cash to invest, now is the best time that I’ve seen in over 20 years to jump into the real estate investment game.

I’m sure that reading this, you are saying that prices MUST continue to drop. However, from my perspective - from being out pounding the pavement and kicking the bricks - it feels like we are already hovering very near the bottom. At least in the Chicago market. And this is all I do everyday:  eat, drink, breathe and sleep what’s going on in the industry. 

What I’m seeing is that - even in this market - when a property’s price hits ”the sweet spot” it is being sold in a matter of days. Why is that? How is that possible? Well, rents are rising - and in some areas they are rising dramatically! (A major shift from 3 years ago when landlords were desperate for renters.) If an investor is able to extract enough rent to cover expenses of ownership and realize a satisfactory ROI, then he’d be crazy NOT to buy.

This is not a market to do “flips” - or, as they say in the stock market, for the “momentum” investor. You must be prepared for a long term “buy and hold” position. Contact me if you want to look at some good candidates.

“All Things With Exuberance!”
mary!

Well, there isn’t a soul that I’ve spoken to that isn’t scared to death of what’s going on in the financial markets - as well they should be!!

For those who don’t panic and are prepared, there has never been a better time to fortify your financial fortress. Do you actually think for one minute that Barclays isn’t utterly ecstatic about the deal they made on purchasing Lehman Bros! This is the kind of market where fortunes are made or lost. It’s no time to run and hide. If you can keep your head about you while others all around you are losing theirs, you can truly lock in your future!

For sure, “cash is king” - and if you have access to cash, it’s how you are going to negotiate your best deals. If you can GET a mortgage, interest rates are at historic lows - 5-7/8% for 30 year fixed! For those for whom it is appropriate, now is the time to get rid of those adjustable and ”interest only” loans and lock in a fixed rate. It seems certain that interest rates aare going to climb. I’m guessing the window of opportunity on low interest rates closes Nov 4 - although with this week’s news, it may last a little longer.

It’s uncertain whether or not housing prices have yet hit bottom, but it seems fairly certain that we’re hovering there. The only way to know when the bottom is the bottom, of course, is when it no longer is. The only way to actually hit bottom is by just falling into it out of sheer luck. And, unlike stocks, real estate has real, inherent value. You can’t eat your stock certificate, but people will always need a place to live.

The past few months, I’ve been promoting a particularly unique investment opportunity to my clientele. The initial reaction has been “it seems too good to be true” and they back off from jumping onto it. But I have done my research and, like the Barclays purchase of Lehman Bros, this could be an opportunity to lock in your future wealth. Check it out at www.BuyersEquityFund.com and email my friend Marc@BuyersEquityFund.com to get all the info on it.

For those who own their home and want to pay off their mortgage in 1/2 the time, I have been promoting a very conservative mortgage acceleration program (No - this is NOT another MLM scheme) that my friend Neil@EquityExcel.com has available. You can check out the details on THAT program at http://mnack.eqxl101.hop.clickbank.net.

One of my mantras has always been, if you’re not “running with the herd”  - if you’re doing the opposite of what everyone else is, you’re probably not too far off the mark.

“All Things With Exuberance!”
mary!

I just rewatched the Crain’s interview of serial entrepreneur of Howard. (See Feb 2007 for original posting.) It is worth watching, re-watching and taking notes. The man is brilliant. Check it out:

http://www.chicagobusiness.com/TalkingManagement/Tullman.html

Howard has owned 11 businesses and is still involved with 5 of them. In this interview, he discusses some of the aspects of starting and managing a business. He teaches entrepreneurship at Kellog.

“All Things With Exuberance!”
mary!

This weekend, my husband and I attended the 37th Annual Pilsen East Artist’s Open House. (http://chicagoartsdistrict.org/events_4.asp) Over 50 art galleries line Halsted Street between 17th St. and 19th St. I remember taking potential investors into the neighborhood 15 years ago. And though I knew that there was an incipient artist community in the area, Bucktown and River West  (both areas are now heavily gentrified and way too expensive for “starving artists”) were also considered to be incipient artist communities. Given my perspective of the area from 15 years ago, I was surprised to see it being marketed as “Chicago Arts District”. I considered it to be a marketing ploy. Curious, I wanted to see what was really going on. Far from a marketing ploy, it is reality! And these are not “faux artists” fresh out of school trying to find their voice - these are real artisits with a real voice. It was a fabulous afternoon! And, indeed, if you were to do it justice, you would have to spend the entire weekend exploring the galleries.

The fellow that apparently is primarily responsible for this transformation of the area is John Podmajersky, Jr. (http://www.podmajersky.com/about.htm) He started out 50 years ago buying up buildings along Halsted St. in a crusade to prevent the area being given over to “urban renewal”  - a notorious trend in the late 60’s. It’s a fascinating story. This is a link to an interview he gave on the occasion of his 80th birthday, May 7, 2002. Who is it that said “So you don’t think one person can make a difference? Indeed, it is the only thing that CAN!” Mr. Podmajersky rambles a bit, but his story is truly inspiring. Check it out!  http://video.google.com/videoplay?docid=-7723327581487845137

“All Things With Exuberance!”

mary!

 

I was at a luncheon the other day where Goldie B. Wolfe Miller was the speaker. (http://womenleadersinrealestate.com/speak.htm) In fact, I was honored to be seated at the head table with her family. I am so inspired by this woman! She started in commercial real estate - office leasing - at Rubloff in 1972. Rubloff is a venerable Chicago firm that has been around since the 1930’s.  (http://en.wikipedia.org/wiki/Rubloff_Company). The company was founded by a feisty and brilliant fellow that I had the privilege of sitting next to early in my career at a board banquet one night: Arthur Rubloff. I can’t help but wonder what Mr. Rubloff would think about the direction his eponymous company has taken these past 10-15 years. It is not the company it was under his leadership! In the early 90’s, the Rubloff company, under it’s new owners, decided to spin off its commercial division and focus only on residential brokerage. In the break-up and shake-up after Arthur’s death, Goldie departed forming her own eponymous company - which under her leadership went on to become the largest woman-owned commercial real estate company. I wouldn’t be surprised if Rubloff’s decision to spin-off it’s commercial division had a great deal to do with Goldie’s success. They found her a tough competitor to beat. She sold that company in 1998 and is now consulting and developing as President of Millbrook Corporate Real Estate Services.

Some of Mr. Rubloff’s feistiness must have rubbed off on Goldie during her formative years as a real estate agent. In her speech this past Thursday, she said that she is often asked how she was able to balance her career with being a single mom. She said there is no such thing as balance. She said that there may be many defiinitions of success, but she always defined it in terms of money. That if you wanted to be successful, you couldn’t have the luxury of balance. One attendee during the Q&A asked how one can assure being lucky. Goldie’s response was by working harder than anyone else. And though she sounds like - and is! - a “hard cobb” -  make no mistake, she is a character and a half!  - what has made her the success that she is - and an inspiration to the standing room only crowd in attendance - is her genuine interest in and concern for the person she is talking to. For that brief moment when you have her attention, you have her full attention. She makes you feel as if there is nobody else in the room that is more important to her. It’s a rare gift and comes from a generous heart.

It is amazing what this woman with singleness of purpose, dedication and drive has been able to accomplish. Her energy is infectious. It is a tribute to her warm and generous spirit that in an industry notorious for envious back-stabbing and vicious mud-slinging, that this woman is held in high regard by any who come into contact with her. One cannot help but be enlivened and inspired by her. I sure as heck wouldn’t want to be competing against her in a business deal!

“All Things With Exuberance!”

mary!

Serial Entrepreneur Extraordinaire Howard Tullman (see my “All Things With Exuberance” entry) was interviewed by Crain’s. Here is the link to that video.

http://www.chicagobusiness.com/TalkingManagement/Tullman.html

Howard has owned 11 businesses and is still involved with 5 of them. In this interview, he discusses some of the aspects of starting and managing a business. He teaches entrepreneurship at Kendall College.

 

It has been awhile since I’ve visited these pages. There is a phrase: “to return to a familiar place to discover the ways in which you yourself have changed.” These past 6 months have been interesting - in the same way that, when asking the attributes of a blind date that has just been arranged, the reply is, “They have a good personality.” At the end of it all, I am happy and grateful for where I have landed - no longer in charge of running and operating a real estate office. To be sure, it has been a huge learning experience - and I don’t regret it for an instant. However, I am so glad to have that “out of my system” (at least for the time being). Now I am able to focus on the things I love doing most: working with clients, building relationships and making deals happen.

What has been most interesting is how many previous small business owners have since admitted to me that they are much happier being rid of their businesses! Our culture creates this myth that owning your own business is the ultimate scenario. This seems to be the best-kept secret in America: most small business owners work harder only to make less. The book The E-Myth by Michael Gerber says ”just because you love to bake does NOT mean you should open a bakery.”

Owning a business is about the business of running a business - and the actual product doesn’t really matter that much. The problem does not lie with owning and running a business. For those willing and able, the myth is true. Owning a business can be a terrific way to become financially independent. I am probably stating the painfully obvious: being a good craftsman has little to do with being a happy business owner. For a great read on this subject, I cannot do better than to recommend my friend Barry Moltz’s fine book You Need To Be A Little Crazy. (www.barrymoltz.com )

“All Things With Exuberance!”

mary!

I was at an event last week where the speaker was discussing his latest book  Extreme Competition. Much of his talk was about Business Process Management (BPM) - which, frankly, was a bit over my head. OK - maybe more than a bit. Yet, there were some fascinating issues that he raised. The number one thing I brought away from the evening was this: if you charge a fee for activities that you perform, you are providing a service; if you charge a fee for how you make people feel, you are providing an experience. Ah-ha! This explains the Starbucks phenomena - why people are willing to take out a mortgage to buy a lowly cup of coffee.

The other things he talked about were sobering and disturbing. Asia and India are the new frontiers of capitalism. According to our speaker/author, the Asians are very serious and dedicated to getting an education - particularly in science and engineering. With the advent of technology and globalization, we are now competing against 3 billion (that’s with a b!) new capitalists. It is not just about cheap labor anymore. They are investing in their mental assets with the intent of dominating the intellectual property markets. America has gotten very smug and sure of its intellectual dominance, a confidence that is not warranted.

When Brittany Spears tours Asia, they have no idea who she is. When the CEO of Sun Systems tours Asia, he is greeted like a rock star. 30% of high school students in America drop out before graduation. Rich Dad Robert Kiyosaki says in his book Prophecy that the entreprenuerial and pioneering spirit of the immigrants who came to America just asking to be given a chance has evolved, in those immigrants’ grandchildren, to an attitude of entitlement. Our author says that history shows us that wealth only lasts for 3 generations before another country/region takes dominance. This has to give any red-blooded American shivers down their spine. Will America slide into oblivion in the next 3 generations? If so, what does that portend for our children and our grandchildren? Will Singapore or Tokyo become the new “land of opportunity?”

 One last tidbit to keep you awake tonight: the population of America is roughly 200 million. The population of Asia is 3 billion. Our population amounts to no more than a rounding error! Time to wake up, America and smell that great Starbucks coffee…

“All Things With Exuberance!”

mary