Thanks to Turn Here for helping create the video.  Brad Inman’s new company helps small start-ups like mine have a professional commercial for web distribution.  Very tasteful.  Thanks Brad for the complimentary video!

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It’s taken a while to sink in but now I see it everywhere. People are saving, conserving, making better decisions in an overall bid to return to sanity. In real estate, during the last half of 2007 to the Lehman implosion in late 2008, we were booming. Arrogance was everywhere in the investment property market. With speculators the markets on the coast were overpriced and people started migrating dollars to cities like Memphis, TN. We were projecting 2009 to be an incredible year until the fateful day the financial markets collapsed.

It was easy to think I was a highly-talented mistake-free entrepreneur. Demand outpaced the supply of our investment homes. People bought at a feverish pace which ultimately caught up with many of them. But with prices solid, rents high, and economic growth happening locally how could it just suddenly stop?

Fast forward to 2009. Real estate investment has followed the US savings trend and has returned to more of a dividend stock approach. Deals must pencil in order for them to be purchased. Smart decisions, less frequency in purchasing and more price negotiation. And frankly, I’m humbled by 2009. As a real estate entrepreneur, the margin of error on business decisions is minuscule. Hell, I was speculating with the best of them. I bought in emerging neighborhoods within Memphis (which I’m still long, of course, since I have no choice but to be).

I like the new direction, although I wish the hangover of the big party wasn’t lasting so long. The lingering effects often make it hard to channel entrepreneurial energies. The relationships I’ve forged in 2009 have been the difference. Meeting new entrepreneurs with the burning desire, even in this climate, have kept me motivated. In fact, this year has made me a much smarter entrepreneur and real estate investor. Our team has been scrutinizing real estate deals for our clients to the nth degree. Problem is, appraisal issues are everywhere even though the conditions are now optimal for buying. I have enjoyed seeing monies come off the sidelines to purchase property in times like this. It shows American are a pretty resilient bunch with a deep bench for the tough times.

My bet is 2010 will see continued smart purchasing by better heeled investment home buyers. They’ll snap up incredible deals out there, rely less on creative financing schemes, and clean up in the profit category when the market returns. And when it does return, signs point to the recovery being very strong. I think to myself, what an interesting time in this world. I wish the crazy hours were producing as much revenue as they were in 2007-2008. But it feels the business is improving and evolving, because of the crisis, for the better. Technology will only compound this evolution and the real estate business will be better off than when it entered the crisis (albeit with lower prices).

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I was catching up with an old friend the other day and he was asking me how starting a new business has been in 2009.  He was referring to, of course, Investor Nation.  Although I’ve been in the same business for several years, Investor Nation was officially launched in February.  This timing was interesting, starting a new business in the midst of the financial crisis, a real estate business, no less.  It gave me an opportunity to reflect on 2009 and the events leading up to the breakup of my previous business partnership and launching of the new entity.  This year has for many businesses been a difficult environment.  The real estate business has bore the brunt of the fiscal crisis, but that also has created a big wind of change.  Further I couldn’t have a better business partner in this time of uncertainty.

For my company in 2008 was much different.  The real estate business (up until the Lehman Brothers implosion) was booming, at least on the real estate investment side in my geo.   The numbers looked good and the revenue was certainly coming in, but in 2008 something wasn’t right.  It’s almost as if my gut told me this wasn’t going to last.  I was working some relentless hours trying to make up for a partner who was exploring the 4-hour workweek.  Seriously, he literally left mid afternoon for Yoga and then went home to “work”.  Meanwhile our client base was on the West Coast which warranted us working their hours.   They were just getting done with lunch by the time my business partner was in Yoga.  Thankfully I had a team of people who working their asses off to grow the business.  When my partner and I split in January this year, the existing team chose to my new company which made the prospects of starting a new business less daunting.  These people are my heroes of 2009

Having multiple startups under your belt helps alleviate any fears entrepreneurs have.  So while 2009 has been a difficult year for many startups, those with hard working, dedicated people have reason to smile.  Now the excitement has replaced the stress knowing we made it through the Dip.  Financing markets are improving somewhat, real estate sales are picking up (although somewhat artificially), and the real estate community is buzzing.  Just join the conversation on Twitter and you’ll see what I mean.   Carefully architecting a team takes time.  A wise person told me the only thing you can’t teach is desire.  Everything else can be taught.  I learned this through several heavily one-sided business partnerships.  As entrepreneurs, we must find the like-minded people who throw the emotion away to focus on success, creating change, disrupting industries, and not listening to the forces for mediocrity.

Real estate is no different.  Market disruptors like Google, Zillow, Trulia, Redfin, and more are forcing the real estate industry to change.  And these are good changes which will create new sub industries within real estate leaving a big void of opportunity for those of you who are willing to work and skip the 2:30pm Yoga breaks to make it happen.   The problem is the change meets resistance.  That resistance can be anything in the form or shape of negativity and emotion based logic.  These forces for mediocrity will suggest that your business model is no good, that it can’t be done, and that you won’t succeed.  Yet the forces themselves are the antithesis of success.   As we prepare for 2010, take a strong look at what you are doing within your business.  Are you bold enough or crazy enough to change the world? If you are, then bootstrapping your business will be an enjoyable experience.

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Although I recently retired my license selling real estate, I currently assist in training new real estate agents at my brokerage on sales, personal branding, and marketing aspects they can directly use to generate sales.   I thought I’d write this post to offers a bit of sales advice to real estate entrepreneurs who are having some difficulty getting their businesses going.

First things first, realize you’ve made the decision to be in the real estate business today.  So admit you are a little crazy.  We are in the worst recession since the Great Depression, and you just entered the industry.  The one being hit the hardest.   So quick recap,  you’ve chosen the worst industry at the worst time right?

1. Realize and Reflect on Your Decision.

You are crazy enough to choose to be a real estate entrepreneur, agent, or otherwise because you see opportunity.   Opportunists always have the advantage, but make sure you are prepared for the wild ride you’re about to have.   Thriving during a real estate bust is not an easy task, so mentally prepare to spend long hours working hard to build your business.

2.  Demand Don’t Dodge Accountability.

Demanding accountability isn’t for everyone.  I’ve seen agents try to dodge the phone and find excuses to cut the day short then wondering why things are slow.  The phone is your friend, business is on the other line.  My companies have sold countless homes from call-ins.  If things are a bit slow, demand that you want to be the person answering whenever possible.  Same for treps with your own companies.   Make it rain by turning everything you dread or mentally stall on into an opportunity.

3.  Find Your Niche and Find it Quick.

Hyper local branding is key.  You need to find something within real estate you are good at, you love to do and attack it.  Become the best in the world at that one little thing.   Maybe you know more about the Castro neighborhood in San Francisco than anyone else.  Document all the data in your head and put it down in the form of blogs, reports, and other media you can leverage.  People will flock to you as the expert.

4.  Don’t Get (Too) Caught Up in Social Media

Remember someone somewhere has to be in the trenches producing business.  While social media is sexy right now don’t lose site of transactions.   Most people in the real estate (or any) business don’t  eat unless transactions of some shape or form happen.

5.  Use Social Media as Trialogue Only

This seems to be the hottest topic and despite people saying, “Everyone is doing it wrong”, there are many examples of people doing it right (e.g. Comcast Cares).  They are using “trialogue”.  Basically this means they are communicated directly with customers (traditional dialogue) + brand communication with her.  This means the brand communicates effectively plus personal communication with the customer.  Too many companies are using monologue which is too spammy.

6. If you think you can change the world, then stop talking about it.. do it.

Action Creates More Fortune than Caution – Luc de Clapiers

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I’m sitting hear at 9pm on a random Wednesday thinking to myself. I’m crunched for time.  Cell phone battery is dead. Need to get gas for my car. I’m starving because I haven’t had time to eat. I’m tired. My eyes hurt from staring at the computer. I’m beat. I’m also smiling.

I love being an entrepreneur.

I love creating something

I love seeing something grow from an idea to revenue to something that creates revenue for people who work for/with me.

You see Investor Nation is my 8th startup. I’m classifying a startup a something I’ve devoted considerable time, energy, and resources to. Another definition: something that has had its own Tax ID#. Now I’ve had had a couple dozen websites, ideas, or otherwise which we won’t count because I always have several of them(we’ll call them hobbies).

Here’s how my 8 startups have fared:

• 2 were failures, (t-shirt company, lawn care company)
• 1 was successful for 2 years then sold to my partner (mortgage company)
• 2 (realty, and a fix & flip co) were outgrowth businesses that fed off of my most successful business
• 1 became a multi-million dollar company in less than 2 years (wholesale real estate business)
• 1 became my biggest learning venture although I made limited revenue (startup web dev and SEO company)
• And Investor Nation, (online real estate sales) my current company which is the biggest undertaking of my life and the funnest.

Despite some costly failures I love the learning that comes with being an entrepreneur.   I see more passion and excitement out of entrepreneurs than any other type of person.   Most believe they can change the world.  Whether they can or not, the belief is why I’m an entrepreneur.

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First printed in 1921, this book tells the story of a person with the odds stacked against him perserveres through an impossible test.

Peter B. Kyne wrote a timeless tale of resolve, determination, and persistance.  These traits seem to be natural to many people who are at a disavantage when it comes to resume` strength.

I personally know a few people I would consider “Go-Getters” and the burning desire for success seems unquenchable to them.   My former boss/mentor first had myself and my peers read this book about 10 years ago.  I thought it was worth another read in 2009.  Although the lingo is a bit archaic, the book is well worth your time.

Lastly it’s a short read so you can read this in one good sitting.

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I received this book from Seth Godin who offered it up to his blog subscribers and asked us to write a review and pass it on.  Although I hadn’t heard of the book, Seth mentioned it was the memoirs of the founder of the Acumen Fund, Janine Novogratz.

Godin is a huge supporter of Acumen and the last seminar of his I attended, the entire $2500 gate fee went to Acumen.

I can sum this book up in one word; “touching”.  The book tells Novogratz’s story from bootstrapping a microfinance lending organization to the Rwanda genocide, to starting the Acumen Fund.   I was blown away by the Rwanda story and saw a side of it the media wouldn’t touch.  I learned a lot about micropreneurs in 3rd developing nations.  That resonated with me.  After doing a few home stays in Panama and spending time in Brazil, I knew the potential impact of financial aid but learned what a profound impact helping local entrepreneurs could have.

This book will make you rethink what is possible as an entrepreneur.

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A true friend and mentor of mine, Harish, taught me more than I ever wanted to know about planning and preparation.  I had always been a “planner”.  Although I don’t carry one around, I’ve always been on time and prepared in the way that I thought was sufficient.

I’ve read a lot about being prepared for meetings and so forth but he elevated my level of preparation to a new degree.  Being prepared takes a lot of planning.   A meeting with venture capitalists that are going to fund your company for example might take 2 months of strategic planning, role playing, in depth analysis, question and answer, and even minute details such as time of day, location, what to wear and more.  See most entrepreneurs that I meet seem to be somewhat prepared, but often have so much going on that it is easy to fly by the seat of one’s pants.

At the same time the planning takes preparation.  In that same meeting with venture capitalists, prior to the role playing and Q &A, you need to be prepared with facts, figures, financial models, projects, what-if scenarios, and more.   The more I learn to plan, prior to the preparation for something, the more the situaiton goes into my favor.

I say this because I used to have a “quick on the draw” style of leadership and management.  I know spend a lot more time analyzing situations, playing out the scenarios, and identifying the best way to respond.  Consider this as you venture into the challenges that 2009 is sure to bring you.

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Want to get some advice from the guy that created the “Marlboro Man”?   Then you’ve found the right book.   Jay Conrad Levinson may be one of the Godfather’s of marketing.   The beautiful thing about this book is that although first published in 1983, its been updated to reflect the electronic world we live in today.

Jay Conrad Levinson takes a serious approach to marketing on a budget.  And I think the timing of this read could perfect for a lot of us.   Levinson shows you how to adapt technologies, develop proven strategies; from combining search and display advertising, to a take-no-prisoners approach to sales.

I’ve read this book before and have referred back to it on many occaisions.  He covers most aspects of marketing and despite working for a large Chicago ad agency, he’s able to communicate in a way that small companies can truly relate to.

Levinson’s bonus section, “The 200 Weapons of Guerilla Marketing” gives you a fresh bevy of marketing ideas to try that are covered in the book.   Example, how many of you forgot about “door hangers”?

Additionally Levinson has developed an entire culture around this groundbreaking book with dozens of books, cd’s, dvd’s and more around the Guerrilla Marketing culture.

Given the present economy, I think the timing to read this updated classic is perfect.

Get the paperback today

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