Fear of Failure

Fear of Failure

Everyone hates to fail, but for some people, failing presents such a significant psychological threat their motivation to avoid failure exceeds their motivation to succeed. This fear of failure causes them to unconsciously sabotage their chances of success, in a variety of ways.

Failing can elicit feelings such as disappointment, anger, frustration, sadness, regret, and confusion that, while unpleasant, are usually not sufficient to trigger a full-blown fear of failure. Indeed, the term is somewhat of a misnomer because it is not failure per se that underlies the behavior of people who have it. Rather, a fear of failure is essentially a fear of shame. People who have a fear of failure are motivated to avoid failing not because they cannot manage the basic emotions of disappointment, anger, and frustration that accompany such experiences but because failing also makes them feel deep shame.

Shame is a psychologically toxic emotion because instead of feeling bad about our actions (guilt) or our efforts (regret), shame makes us feel bad who we are. Shame gets to the core of our egos, our identities, our self-esteem, and our feelings of emotional well-being. The damaging nature of shame makes it urgent for those who have a fear of failure to avoid the psychological threats associated with failing by finding unconscious ways to mitigate the implications of a potential failure—for example, by buying unnecessary new clothes for a job interview instead of reading up on the company—which allows them to use the excuse, “I just didn’t have time to fully prepare.”

Some thoughts I use to avoid the Fear of Failure.

  • Feel the Fear and Do it Anyway. A good book to get you through those feelings.
  • “Grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.” Identify aspects of the task or preparation that are in your control and focus on those. Brainstorm ways to reframe aspects of the task that seems out of your control such that you regain control of them.
  • I think of my favorite athlete. How he gets knocked down, intercepted, misses the last shot, or. He shakes it off and tries again. Michael Jordan is widely considered to be one of the greatest basketball players of all time. And yet, he was cut from his high school basketball team because his coach didn’t think he had enough skill.

Failure isn’t all bad. Think of Thomas Edison. He failed many times inventing the light bulb. Edison said of his career, “I have not failed. I’ve just found 10,000 ways that won’t work.”

How Much Money Do You need to Invest in Real Estate?

How Much Money Do You need to Invest in Real Estate?

The stock market has lost all its gains for the year. We are still up over 6,000 points since the Trump election. Some are getting nervous, and have moved money out of stocks into bonds. However, real estate and hard assets are attractive now, if just for a way to diversify. How Much Money Do You need to Invest in Real Estate?

According to Investopedia, “Thanks to the continued mess in the housing market, prices on all types of real estate are getting lower and lower. Those low prices have made it easier for average people to add these assets to their investments.” And Gold stocks are as cheap now, relative to the price of Gold, as they were when Gold bottomed in 2001.
However, given the number of choices and ways to go about investing in the asset classes, finding out where to begin or how much capital one needs is a daunting task.

Real Estate Investment Trusts
First created in the 1960s as a way to allow regular retail investors to participate in the commercial real estate market, REITs are some of the cheapest and easiest options for adding real estate to a portfolio. These securities are traded on the major exchanges like stocks and invest in real estate directly, either through properties or through mortgage investment. Some REITs will invest specifically in one area of real estate or in one geographic location. In exchange for offering investors high-dividend distributions, REITs receive special tax considerations and offer a highly liquid method of investing in real estate.

More importantly, REITs provide one of the lowest starting capital cost options for getting into the asset class. Several major REITs offer dividend reinvestment plans (DRIPs). These plans can provide access to commercial real estate for as little as the cost of one share of stock with little in the way of fees. You can buy one share for less than $50 or multiple shares.

Real Estate Investment Groups

For those investors looking to own physical real estate directly, real estate investment groups (REIG) or private partnerships may be for you. At their core, REIGs allow

Investors to own property in a cost-effective way to enter the real estate market. Generally, real estate investment partnerships usually take an investment between $5,000 and $50,000.

Hard Money Loans

If you want to invest in real estate but don’t want to be involved in property management, a good way is to use money from your IRAs or 401ks to invest with a real estate investor. You provide a short-term loan to bring a house up to new homebuyer standards. When the house is sold, your short-term loan to the developer is paid off with interest of 8% to 12%.

Generally, real estate investors look for $20,000 to $50,000 in short-term loans.

Notes and Deeds

Notes and deeds can be far more profitable, and less stressful than buying for resale. Hard money lenders, individual investors, and community banks can auction-off or sell-off mortgage notes (the notes can be current or in various states of default).

Investors can bid on and purchase these notes and start receiving payments from the borrowers. You become the bank and service the loan yourself or hire a third-party servicing company that also deals with late pays.

For more information on Building Wealth with Notes Workshop from Paige Panzarello, you can register for the next class or go online for training. Or listen to these powerful podcasts.

Paige also helps to educate people on the importance of Passive Income, deal evaluation, money management, how to wisely interact with money, and what the heck does a profit and loss and balance sheet actually look like?

Working Smarter Not Harder – What Does it Truly mean?

Working Smarter Not Harder – What Does it Truly mean?

Forbes wrote about Working Smarter Not Harder – What Does it Truly mean?  “Work smarter, not harder,” is a phrase many workers have heard throughout their careers. A phrase that often conjures the image of a high-level executive on a beach with a smartphone and cocktail in hand.  The phrase touches on an individual’s emotional and intellectual desire to “have it all,” but doesn’t really tell anyone how to go about working smart, not hard.

I knew a stockbroker who was told that if he called 200 people every day, for two years,  he would live like no one else for the rest of his life. That was working harder. He became a success. However, another young stockbroker by giving seminars found a way to reach many people at one time. Thus working smarter. Too many of us stick to the old ways instead of how to make it easier.

One year I was taking skiing lessons. I liked to go fast downhill, and I crashed a lot. I figured that crashing meant I was working harder than everyone else. What I missed was the smarter part. It would have been better to work to learn the basics rather than go faster. My goal was to go fast; I put little effort into learning the basics.

There are investors who want to retire on the beach in their chase lounge and a cocktail in their hands. They want a passive income from real estate to support their lifestyle. It all starts with a goal, doesn’t it? There are many ways to achieve passive income. Paige Panzarello helps to educate people on the importance of Passive Income, deal evaluation, money management, how to wisely interact with money. Our goal is to show you how to achieve your goal smartly.

Working Smarter Not Harder – What Does it Truly mean?

It means to have a goal, be smart about achieving the goal, and then put your passion into the work to be a success. I suspect many start with the work and through trial and error get smarter.

America Has an Aging Population

America Has an Aging Population

Boomtown, a blog by Joanna Harrison, has some great advice about  a real estate investment opportunity. You see, according to Harrison, “America has an aging population. Currently, the median age is 37.8, (up from 30.0 in 1980, and 28.4 in 1970) and the median age of homebuyers is 44. This demographic shift is happening for a few reasons – decreasing fertility rate, shifting cultural norms, improvements in medicine, the sheer size of the baby boomer generation – and more seniors means more buying power.”

She says this growing market means one thing – OPPORTUNITY! You can capitalize on this niche market and position yourself as an expert for senior homebuyers. Harrison outlines a strategy for becoming the real estate solutions company or go-to agent for seniors.

Consider these statistics from the 2017 NAR study Home Buyer and Seller Generational Trends Report:

Buyers age 52-61: “The Young Baby Boomers”

Makeup: 16% of recent buyers
Higher median household incomes
More likely to have children under the age of 18 in their home
More likely to buy multi-generational homes
Buy for an array of reasons, such as job-relocation, downsizing, and being close to friends and family

Buyers age 62-70: “The Older Baby Boomers”

Makeup: 14% of recent buyers
Often moving due to retirement, downsizing, and being close to friends and family
Typically move the longest distance
Least likely to make compromises on their home purchase

Buyers age 71-91: “The Silent Generation”

Makeup: 8% of recent buyers
Often moving due to retirement, downsizing, and being close to friends and family
Least likely to purchase a detached single-family home
24% purchased in senior-related housing
Tend to purchase the newest homes
More likely than any other age group to find their home by visiting an open house

Seniors are concerned about the following:

  • Seniors are often targeted for property theft, so have information on hand about the neighborhood crime rate.
  • Are there stairs? Does the neighborhood have a lot of hills?
  • Most seniors aren’t concerned with flash or grandiose. Even if they have a hefty budget, they are likely in the process of downsizing. Keep this in mind with the listings that you show, and consider offering educational tools to help with the downsizing process.
  • Along with downsizing, most seniors are looking for a reasonable home to spend the last phase of their lives. Affordability is a concern, especially on a restrictive retirement and/or social security budget.
  • Is the home in a gated community, or a neighborhood with amenities close by? Seniors don’t want to have to travel far to get to the grocery store, the gym, or their doctor. Be sure to know the distance and accessibility of hospitals, grocery stores, etc.

Be sure to know your market and their needs. Equip yourself with valuable resources that can aid the homebuyer in their process.

Don’t miss an opportunity to capitalize on this niche market and position yourself as the expert!

What Words Like Average and Median Mean

What Words Like Average and Median Mean

Do you really know what words like average and median mean? Take for example this news story on May 3rd in Los Feliz Ledger. “Southern California real estate sales in February 2018 were down 0.5% from January and up 0.6% from February of the previous year to a total of 15,189 homes or condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernadino, and Orange counties combined, according to data from Core Logic, a real estate analysis firm out of La Jolla, CA.

The median price paid for Southern California homes in February was $506,750, up about 2% from January and about 10% from last February.

According to Los Feliz Ledger, “Southern California home prices have “been rising on a year-over-year basis each month for almost six years. The ongoing mismatch between housing supply and demand suggests continued upward pressure on prices, but if mortgage rates keep edging higher some of that pressure would be relieved as more buyers are priced out of the market.”

What Words Like Average and Median Mean

Average and median are best explained by a six-foot man drowning in a pool averaging five and a half feet. Judy Hedding at About.com wrote an article explaining the difference. First, let’s show how the median price is arrived at:

Here are 11 fictional home prices.

  1. $100,000
  2. $101,000
  3. $102,000
  4. $103,000
  5. $104,000
  6. $105,000
  7. $106,000
  8. $107,000
  9. $650,000
  10. $1,000,000
  11. $3,000,000

The median price of these 11 homes is $105,000. Five homes were lower priced, and five homes were higher priced. The median really is the middle value. 50% of values are above it, and 50% below it. When the data is not symmetrical, this is the form of ‘average’ gives a better idea of any general tendency in the data.

The average price of these 11 homes is $498,000. That’s what you get if you add up all those prices and divide by 11.

What difference does it make?

Suppose you have a fine French chair you brought back from your trip to Europe. It is a memento of the time you spent there celebrating your wedding anniversary. A friend comes over and asks if this chair will support her. She weighs 250 pounds. Oh yes, you say it will support the average weight of 498 pounds. She sits, and your fine memento collapses into fragments. You meant to say it will support the median weight of 105 pounds.

Knowing how average and median are arrived at gives you information you can act on. Suppose you are looking for a house and your realtor says, “The average price of a house in the Los Angeles area is $498,000.” You might get discouraged if you are looking for a house priced at $105,000 and say to your spouse, “Honey, we can’t afford to live here. The average house is way above what we can afford.”

However, if your realtor says, “The average price of a house here is $498,000, but the median house is priced at $105,000.” You could take heart that you will find something in your price range, for of all the houses on the market right now, 50% are priced at $105,000 or lower

Both averages looked at over time, will give you information about the state of the real estate market nationally and locally, but understanding average and median, when referring to housing prices, gives you enough information to make you a happy first time home buyer.

Real Estate Lead Generation 101

What are the best real estate lead generation options today?

Where and how can real estate agents, investors and other related industry professionals generate more leads for buying, selling and renting properties? What are some of the little known benefits, and pitfalls of common real estate lead generation channels today?

Here are 12 ways for real estate investors and Realtors to bring in more leads: (more…)