Real Estate Investment Teachings – Genius Tip #3
Your Identity as
 a Real Estate Investor

This is a series of 8 real estate investing tips. The first one was knowing your Vision where you wrote out the script of the story you will create for yourself as a real estate investor. The second tip was about knowing your purpose for investing in real estate.

Real Estate Investment Teachings – Genius Tip #3
Your Identity as
 a Real Estate Investor

What beliefs and behaviors does a successful, empowered, responsible and results oriented person possess? You may have an identity right now that doesn’t match the person you need to be successful and build wealth as a real estate investor. This is where you get to create the identity that is going to serve who you are.
What are some of the words that you will use that spark your enthusiasm, inspire your thinking, get your creative juices flowing, allow yourself to be bold and give you the right to already be that person – frankly you are!
I recognized very early in my career that being your word and showing-up gave me a HUGE advantage over any competition. My identity was “you can count on me and trust me”. This identity has served me throughout my life.
I used the GPS Program to create
my Vision around a relationship. The words I used for my identity were similar to the one I have written here. When my coach read the words I used for my identity she said I sounded like a great guy! I then looked at what identity I did want to create to be in the relationship of my dreams. I came up with words like sensitive, capturable, nurtured, cherished… and I lived into my newly created identity.
What will be the words you claim that will form your identity as a successful real estate investor?
Here are some possible words to consider: Trustworthy, Reliable, Honest, Valuable, Resourceful,
Wise, Genuine, Creative, Diplomatic, Sincere, Bold, Savvy, True, Grounded, Fun, Giving, Generous………..
Use single words to create your identity. These words will set the tone for who you will be as a real estate investor.

Make sure to write it down!

Real Estate Investing can create a great harvest if you know the best way to start a successful crop.

If you want a great harvest planting seeds isn’t enough.  You need to know what seeds to plant, where to plant them, when to plant them, what nutrients are best for your seeds, how to keep them free of weeds and when to harvest your crop.

When I work with clients I take them through an 8 step process before we begin.  I used this process myself for over 20 years with remarkable results.  It is the part of planting that many people either skip or don’t think is important which is making sure your soil will yield a great return from the seeds that you sow there.

The fertile ground of real estate investing is about creating a solid foundation so you have a sturdy base.  Too many “want to be” investors jump into the business buying whatever sounds good in the moment mostly driven by “it’s cheap”.  Buying cheap might sound good in the moment but what type of long term results will a cheap property yield.

I’ll be sharing several blogs about the essential steps that are necessary to being a successful real estate investor.

Tilling the ground and testing it to make sure it is healthy enough to support a crop takes time.  But does it?  How much time,effort and expense would it take to plant in contaminated soil only to find out months down the road that your hard earned investment will not yield a cent.  Taking the time upfront to plan and be mindful will yield great results as a real estate investors.  I hope you enjoy this series of videos I put together for you.  Grab a pad and pencil.  Lets begin!

There seems to be so few people who really understand the business of real estate investing or take it seriously. The market has been so inundated with get-rich-quick schemes which has left  us with few mentors that can or will guide us as craftsmen did working with stone cutters and masons when apprenticing.

Sorting through a lot of hype to find sound business practices and principals in most of the programs that are offered these days is a daunting task.  I’m so grateful that I didn’t fall prey to one of these programs when I started my portfolio 20+ years ago.  Don’t get me wrong, there is a lot of money to be made as a real estate investor. History shows that the wealthy use this form of investing because it works.

I’m not talking about the folks who own large real estate portfolios. I am referring to the small to average investor who wants to invest in a few well selected properties that will give them a nice retirement adding-up to $500,000-$2,000,000 worth of inventory that are solid and cash-flow well. These beginners struggle to locate and understand the business of investment real estate although they know investing this way is the best way to create future wealth.

I was fortunate to build a small business from scratch into a $1.8 million dollar operation that I ran for 16 years. During this time, I was always learning and refining my approach so we could perform at our fullest potential.

After I gained a measure of mastery with the methods, processes and approaches to run a successful well functioning business I took what I had learned and applied those practices and tools to real estate investing. The results were that both businesses ran well, grew over time, and were sustainable. It was important to me to bring my consciousness into my professional life, which meant I was always keenly aware of the impact of our products and services on people lives. In the business of real estate investment, our products are the properties and our service is maintaining these homes for our residents.

So what are the practices that create sustainable wealth for a real estate investor? It’s really all about having consistent systems in place. I know that doesn’t sound

Bluechip Property

glamorous and frankly it isn’t. That is why the “gurus” don’t talk about these subjects. It is a mundane topic that isn’t very marketable.

Just like in our personal lives, it is the consistent practices that make a long-term difference. It seems dull to think about brushing your teeth everyday but it makes a real difference over time. Owning a piece of property is similar to this. The slow consistency and everyday habits are what create results.

So here is one of the starting foundational systems that you will need to have in place in order to maintain your property.  Don’t wait until you have a problem to look for a reliable contractor.  You will be coming from a place of panic which isn’t a good start to any relationship.

Maintenance

Here are the three systems that you will want to have in place:

• Ongoing: Ongoing maintenance are the responsibilities that need to be done each week: cleaning the common areas, mowing the lawn, removing rubbish, and touching up paint in worn spots.
• Seasonal: Seasonal maintenance is done during the appropriate time of year: snow plowing, window cleaning, leaf raking, furnace cleaning, gutter cleaning and outdoor painting.
• Occasional: Occasional repairs are the unplanned repair jobs like fixing running toilets, light switches, broken A/Cs or furnaces, and roof leaks.

You should have a reliable service contractor for all three of these areas. Make sure to start looking for these resources before you need them. Get a few different quotes then negotiate with these contractors. It will take a bit of work at first but it will be well worth it.

Make sure the contractors that you choose are trustworthy. I would suggest working with a couple of contractors at first until you find the one that can do most repairs, gets the job done quickly and affordably, and is reliable.

Once you have all three areas of maintenance setup, maintaining your property is quite easy and systematic.

So here it is! Real Estate investing is a real business and a great one at that. Owning, maintaining, and serving others as a real estate investor is a noble profession.

Who is willing to join me to learn about this noble business where you can feel good about the properties you own, the people you serve, and the wealth that you will create?

One of my upcoming blog posts will be about another key area that will help ensure your success as a real estate investor: how to avoid vacancies.

The folks that would make the best real estate investors are the ones that run for the hills when someone mentions the subject or even the possibility of owning real estate.  I don’t blame them as there has been so much bad press about how difficult tenants are and how much work it takes to own investment real estate.

They have visions of late night tenant phone calls and non-paying residents where they live in eviction court.

This can be a very true picture if you buy in tough areas, rent to challenging residents and don’t have a few simple systems in place to maintain and manage your property.

When I started investing in real estate I didn’t have anyone to guide me.  I found inexpensive duplexes in fringe areas.  I did experience what most people are afraid of although I wasn’t a slumlord and took care of my properties.  The result of my investments were beyond anything the text books could have explained to me.  These areas became desirable urban renewal areas.  My properties more than tripled in value within the first 5 years.  The cash-flow was great and the tenant base was challenging.

Great Kitchens Matter

I then was looking for a high-end multi-unit where I could live.  I was fortunate to find a beautiful property a few blocks down from the George Eastman House in Rochester, New York.  The property was stunning with high ceilings, hand molded decorative plaster adornments, hand carved fireplace mantels and stained glassed windows which housed mostly traveling consultants.  It was a bit of a stretch for me going from buying $25,000 duplexes to a $500,000 6 unit in a high rent district.

Bluechip Property

Beautiful Entrance

I didn’t know that this one purchase would redirect my real

Bluechip Property

estate investing life forever.

The problem tenant phone calls disappeared, the chasing someone around for rent check stopped and the tenant to tenant issues went away.  I didn’t realize how much aggravations I was handling until I had the experience of the exact opposite.  When I bought my new home on East Avenue I had already been a real estate investor for over 16 years.

This experience set me on a new course in real estate investing.  I started seeking out and understanding this new area of investing that I now call “bluechip properties”.  I still looked for urban areas that needed great land lording to support the revival of these areas.  I went to work creating apartments that would attract and house what I call “bluechip tenants”.  I intuitively knew that there would be many folks who would love to live in a newly created space with great amenities like granite counter tops, ceramic tile flooring, refinished hardwoods, stainless steel appliances, replaced windows and off-street parking.

I now have 27 completely rented head-ache free units that create great cash-flow and have the possibility of doubling in value within the next 5-10 years.

Bluechip Property

What I learned and now teach my clients is how to invest their hard earned money in “bluechip” properties that are easy to own, maintain and manage.  These properties are solid, steady and generate a great return just like any “bluechip” stock would.

Our country needs more folks like you investing in, caring for and contributing to these neighborhoods.  You’ll feel good about where you are investing your hard earned money. Besides feeling good, you will create great cash-flow, lower your taxable income and have a property that appreciates in value.

Bluechip Property

Your hard earned money will go to work for you creating a prosperous future financial  portfolio that builds dividends each year while your residents pay down your debt increasing your profit.

Everyone Wins!  The neighborhood wins because they have a responsible investors who is caring for the property, the tenant wins because they get to live in a great place and the community wins because there is a well kept property in their neighborhood.

The truth is there hasn’t been a lot of responsible mentorship or teachers that have taught the “business” of investment real estate.  Just this week I’ve seen another one of these “get rich quick” flippers come through our area promoting how you can make millions in real estate. I cringe when I hear these advertisements knowing that this is the cycle that created the real estate crash that we are just digging ourselves out of.

Real Estate Investing is a great way to create cash-flow and build long term wealth.  Knowing that Real Estate investing is a “business” not a get rich scheme will change your perspective if you choose to learn what was once a noble business.  Knowing what properties to buy, where to find them, how to understand the financials and having a few simple systems to manage as well as maintain your investment will insure your success!

We just sold another beautifully renovated single family home here in Geneva, New York. It took us three months to renovate the house and six months to sell it. While that might not sound too bad, it is three months longer than my usual flip cycle. Let me tell you why this was a special case.

When you are a property renovator, it is critical to know your market. Most markets have a premium high selling time. In Upstate New York, this is what we call the early spring market. It starts during the last week of February or the first week of March.

131 Whitesprings

Front Steps

Buyers are out in droves wanting to buy after being pent up with the snow and cold all winter. This trend continues until mid-June. If you miss this window, you might as well know right now that it is highly unlikely that you will sell your house quickly or for a premium price.

After the last week of June, buyers slow down. They are typically planning for summer vacations and back to school time. There is a little sales spurt from late October to November but then it falls down again until early spring.

Now, with this project, we had a few complications that added another 30 days to the renovation. This put us exactly where I didn’t want to be which was the first week of July. This is one of the worse times to list a property for sale being the first vacation weekend of the summer which then leads into more of the same for the balance of July through the end of August.

The city that we are in is a college town. This makes it even more important to have inventory ready for incoming professors and parents who might be in the market to buy for themselves or to obtain rental property to house their student.

If you miss the market, be prepared for a longer sales cycle and a drop in price. I was fortunate to have a great agent, Belinda Fratto with Nothnagle Relator, who was diligent about having an open house every weekend for several weekends in a row to keep the property energized.

This cycle might be different in your area. Make sure that you know when the best times are to sell property. If you know this, you can have property renovated and ready to flip at a maximum profit.

Bedroom - Before

Bedroom - After

Kitchen - After

Kitchen Before

Family Room Before

Family/Dining Room After

I love people who deeply care and have vision about their neighborhood. About a month ago I received a phone call from my agent who told me that a good friend of hers was desperate to find someone to buy the property that was going up for sale next to her home.

This women was very involved cleaning up her street and was worried that a slumlord would buy it. The house went empty when the owner decided to move out after there was a water main break on the second floor causing the floor to buckle and the ceiling to collapse. Fortunately the insurance company came in and removed all of the wet fallen debris making it easy to renovate.

I wasn’t looking for a single family to renovate but it wasn’t about that this time. It was about supporting a neighborhood that had worked hard to turn itself around. You could feel the change as soon as you drove down the street.

The current owner was a really nice man who was also interested in having the “right” investor buy this small jewel of a house. I offered him $2,000 less than the slumlord who was licking his chops thinking he had stole another one! Little did he know the seller was more interested in making a difference than making a few extra dollars.

We got to work and transformed this gem into a jewel and found a great new resident for this home.

The hero in this story is the women who cared enough to make a few phone calls to lobby on behalf of her neighborhood. She was proactive and cared about her neighbors, her community and her family.

Bedroom - After

Bedroom - Before

Kitchen - After

Kitchen - Before

Taking my conscious message of real estate investing and artistic approach to both my rental units and renovation project is my signature approach to the business.  I feel it is smart to put your hard earned money in real estate to create on-going cash-flow and future wealth.  This is what I did with the profits from a business that I owned for over 16 years.  Real Estate is what created my wealth not the business I owned.

Conveying this message with a heartfelt visual brand is what Chris Cooley from CMCreative Design did for me and does for his many clients.  Here is an interview we did for the Finger Lakes Women Magazine.

Finger Lakes Women Magazine Article

DC/CMC INTERVIEW
Chris Cooley is owner and creative conductor behind CMCreative Design, a personal visual branding firm in Rochester, New York. Chris has developed a FREE seven-step process called the B.E.S.T. (Branding. Education. System. Training.) program, which teaches the ins and outs of personal visual branding. These seven easy steps are directed (but not limited) to entrepreneurs who appreciate change and aren’t afraid to think differently.

After four years of being the top producer at a premium promotional company, Deb Cleveland got the itch to start her own business. It turned into a $1.8 million business within five years. During that time, Deb realized that the premium and promotional business was hard work and decided that investing in real estate would assure her long-term financial objectives. To Deb, real estate was a medium of artistic expression where The Queen of Investment Real Estate was able to create beautiful living spaces for her clients.

Hi, Deb. How are you?

This is the best time of my life.

I’d like to give our readers a little bit of your background. You created two multimillion dollar companies. Can you please describe them and give a little bit of their/your history?

Information about my current and past businesses are in my bio, but the topic I am asked about the most is what fueled my success. In the very beginning it was fear, and as I matured it became about creating beauty and feeling good about making a difference. My clients always loved working with me because I am a quick out-of-the-box thinker who cares. I would come up with marketing items and ideas that they were proud to put their brand on and would have a lasting impression on their clients.

So, with a premium promotional company such as yours, you must have worked with a lot of designers. Can you tell me what type of brand developers and graphic designers you’ve worked with in the past and what some of the pros and cons were?

Yes, Chris, I have worked with a range of corporate brand and marketing companies as well as the do-it-yourselfers. The big marketers played it safe, wanting mostly to keep things status quo, while the start-ups didn’t know what they wanted or needed, so they relied on me to help them pick out fonts, colors, slogans, copy, etcetera.

I’m curious what you think about my philosophies and process compared to your other experiences.

What I know after working with over a thousand businesses over the years is that those businesses would have done anything to have found what your business offers. Instead, what they were finding were very expensive branding/logo companies and, if they did find one that fit their budget, they weren’t allowed to give much input. Even if they could give their input, it was rarely considered.

Based on the time we’ve spent working together, how would you define a personal visual brand and what have I helped you realize about the process of creating/maintaining one?

Chris, you were willing to let me bring all of my creative ideas to you, no matter how ridiculous the ideas might have seemed to start. I remember bringing in paint chip samples, wallpaper books, crayon drawings, fabrics, photos, fonts I had researched, several “crown” ideas—all in a box that we spread out on your conference room table. With your artistic wizardry, you pulled together a few designs that encompassed all of the elements. You also wanted to know about my business and about the clients I was serving, which added to the outcome. The process was fun and exciting, to say the least. We are still having fun, like my latest idea about creating a character of “the goose that laid the golden egg.” Now that we have my branding set, you’ve developed this theme with fun drawings to expand my company’s ideas!

Here’s a good one: You say I look 20 years old, but I’m right on the edge of 30. I know I look like I’ve found the fountain of youth, but have my strapping young looks and youthful attitude ever been a problem?

No, your strapping young creative heart is what brought out the playful, creative and expressive branding that has come forth.

OK, since we do work so well together, let’s try this question: When we sit down to have a conversation, it always turns into a creative brainstorming session. Why do you think that is?

Chris, not many people can take an idea and expand upon it like you do. I have had a lot of practice being in a similar business for over 20 years, so I am used to being the one who does what you do for me.

You created a nickname for me, the Design Genius of the World. Although it sounds a bit extreme, where did the name come from?

Chris, you are a design genius. (See the definition below.) I have watched you grow and evolve into one of the most original and genuine designers I have ever met.

(genius(jnys) n. pl. genius·es a. Extraordinary intellectual and creative power.)

Alrighty, Deb. I create unique brands for people that really represent them in a visual way, and I am just starting to promote this expertise. You’ve been doing something important and special for a while now. What is it?

I figured out what most people who got into real estate investing didn’t realize. It is a BUSINESS! I was going to retire after I sold my primary business, so I liquidated my portfolio. I took a few years off to rest and reflect on my life. During that time, I was divinely directed to guide business people who wanted to invest their hard-earned money so that they would have the financial freedom that they, too, dreamed of. I am just starting to work with clients who are serious about building long-term wealth with real estate. I have also created a program that is my flagship program called Knowing Your GPS. This process is what I used for years to build two very successful businesses. I’ve created my first release specifically for real estate investors, although this process can be used for any area of your life where you need change, clarity and direction.

Well, I couldn’t have reached this point without your guidance and support. Now, because of your influence, my B.E.S.T. program is at the brink of exposing industry secrets to the masses and on the verge of ascending to the highest pinnacle. Do you feel somewhat responsible?

Chris, you make me proud. I believe in you. You did what it takes to be successful, dare I say a Purple Cow!

Until next time…

What a SUMMER!

39 Genesee Street

We bought this gem for only $30,000 and put about $40,000 worth of renovations into her which included all new kitchens, bathrooms, appliances, flooring, light fixtures and boiler. We were able to get great tenants for all three units. She sure is a beauty.

131 Whitesprings Road

We were cooking this summer in Geneva, New York. We completely renovated a single house at 131 Whitesprings Road. This house was in pretty bad shape when we took ownership. My team did a top to bottom renovation which included redoing a finished basement. She came out beautiful!

She took a few months longer than usual to sell but that was because we missed the best time to sell a renovated property in a college town. Knowing your market for premium exposure to buyers when you are in renovating and flipping business is essential.

14 Pine Street

I received a call from a property manager who tipped me off about a house that needed a complete renovation. This street in has been the focus of several neighbors and investors buying up houses and improving the area. I was called because there was a threat that a slumlord was eyeing the house as it was going to be sold for less than $15,000.

14 Pine Street is completely renovated and rented to a great tenant.

Mixed-Use Buildings Can Be Great Investments

510 Exchange Street
My first investment property, other than the homes I lived in, was a small mixed-use building in an up and coming urban area. Although all of the real estate investment books I read strongly suggested that a beginner stay away from this type of property I went ahead and bought it anyway!

I bought it for $60,000 put $20,000 into it over the 18 years I owned it and sold it for $240,000. I had long term tenants that stayed between 7-18 years. The property was always rented and easy to manage.

510 Exchange Street is my newest mixed-use purchase in Geneva, New York. She is a beauty with two storefronts and 4 apartments above. The property was in great shape with the exception of the 4 apartments that hadn’t been lived in for 15+ years. Although the kitchens are so dated that they are now back in style toting a shabby chic type of look, funny how that happens.

Here’s a few pictures to give you an idea of where we are starting. Check back to see the progress.

[Show as slideshow]

Investing in real estate can be a lucrative business if you know how to attract buyers without spending a fortune on upgrades and renovations. You can make simple changes that will have an amazing impact on the appearance and value of a home without going broke in the process. Updating faucets and fixtures is one simple, cost effective way to create a fresh look and increase interest in the property.

Put the Buyer in the House with Visual Appeal
Potential buyers use their visual senses before they even start asking questions. If they walk in your bathroom and see an out-dated, leaky faucet they are immediately going to distance themselves from the house. You want them to connect with the house. Replacing faucets in the kitchen and bathroom is one way to create that instant connection.

Bathroom fixtures such as sink faucets, bathtub faucets, and showerheads are simple enough for the average person to handle and don’t cost a lot of money. You can create a big impact with new faucets that compliment the decor of the room. You should also consider adding low-flow aerators to save water and at the same time add the element of being “green” to the room. This is a big selling point for many people who are part of the conservation movement.

You can also add a low-flow shower head to save water. However, you might want to step outside and add a showerhead that is a little more luxurious and inviting. You can find massaging shower heads and the popular showerheads that are similar to a downpour of rain. You want potential buyers to picture themselves relaxing in their new shower after a hard day.

Kitchen faucets should be functional and visually appealing. Cooks want their kitchen sinks to be deep with high faucets that pots can easily fit under. Choose a faucet for the kitchen with a spray handle for washing vegetables and a low-flow aerator for water conservation.
The material you choose for the faucet should coordinate with the room. If you have a bright, modern room, choose faucets that are polished and modern. On the other hand, if you have a warm-toned decor, you might want to choose antique copper or other neutral faucets.
Fixtures

Many realtors who are new to investment property tend to go overboard and perform massive renovations. You can easily make a house more appealing by replacing outdated fixtures. Most of the fixtures can be replaced without a professional. You should be able to replace the kitchen sink and bathroom sinks without much cost involved. A plumber should help you with toilets and bathtubs. The relatively small cost of putting in a more modern toilet or adding a pedestal sink to replace an out-dated vanity will pay off in the end.

Chipped or super-shallow sinks can be replaced with deep ones. If you like the bathtub but it needs updated, you can have it repaired or replaced and make the bathroom appealing. Everyone likes an inviting bath at the end of a long, stressful day.

You don’t have to be afraid of the “F” words. In fact, faucets and fixtures can be one of the most inexpensive, easy to install upgrades you can do to your investment property. Get started today. Take a look at your bathroom and picture it with new faucets and fixtures.