Looking to start a new real estate career? Don’t let limiting beliefs hold you back! In this compilation of the best real estate podcast clips from May, we highlight our guests’ best real estate advice. Listen and learn about real estate team building, mastering the market, working as a buyer’s agent, and more!
Get 10+ hours of mastermind-level content 100% FREE. Register at Carrot.com/Rockstar today!
Listen to today’s show and learn:
Derek Tellier’s thoughts on limiting beliefs [4:17]
Geoff Zahler’s tips on mastering the real estate market [5:48]
Advice on starting a real estate team with Amy Florida [7:22]
How to stay positive and productive with Eric Bramlett [9:42]
Caleb Drake’s advice for new real estate agents [11:52]
How to handle cancellations with Sarah Knauer [15:58]
Elliot Hoyte and Kelly Carlson on buyer consultations [18:58]
Applying what you learn in real estate with Amy Rogers [22:09]
Related Links and Resources:
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
There’s something fabulous about the casual ease of a disheveled light fixture. It gives a stylish yet unpretentious twist to a space. That’s why this DIY light is this week’s Idea to Steal.
I’d love to drop something like this from a high height over an end table as an alternative to a lamp or make one a focal point over my dining table. Sure, there’s some debate among electricians as to their safety, but no one can argue with their seriously cool style!
You’ve just won $250 million, and it’s been deposited in your bank account. So what are you going to do today? After polling the internet, here are the top-voted responses.
1. Check My Balance About 100 Times
Image Credit: Pixelshot From Canva.com
“Check my balance about 100 times,” confessed one. A second admitted, “I’m not going to lie; I’d be checking my account every three minutes.” “With that kind of money, you could hire someone to check your balance as often as you need to feel comfortable,” a third user joked.
2. Disappear
Image Credit: GPoint Studio From Canva.com
“Disappear. I’d travel the world for a bit and consider the options,” shared one. “It’s the only logical choice. Travel around a bit and let the dust settle. But still, don’t ever go home,” replied another. “That place is hostile territory as soon as you say ‘No’ to any request for money, of which there will be many.”
3. Retain the Services of a Top Lawyer, Accountant, and Financial Advisor
Image Credit: Rido From Canva.com
“Retain the services of a top lawyer, accountant, and financial advisor,” said one. “Then hire another top lawyer, accountant, and financial adviser to keep tabs on the first three firms,” a second added. “Hire two accountants you trust but hate each other,” a third tacked on.
4. Tell No One
Image Credit: Kaspar Grinvalds From Canva.com
“Tell no one. Once you have that much money and people know about it, you will be asked constantly for money or favors. You will start to get dirty looks when you go out to dinner because, after all, why wouldn’t the man with millions of dollars pay for the whole thing?”
Your family will tear itself apart. You will be blamed for other people’s lack of money. There’s always a slight undertone of ‘Well – if you could help me out,” and some of your family and friends may be bold enough to say it outright.”
“Anyone you give money to now sees you as a money printer. People who previously looked at you as a human with your own issues now see you as a bank with money they theoretically have access to,” said one.
“There is a reason that winning the big jackpot in the lottery has a such high mortality, drug addiction, and feuds. People with wealth aren’t friends with only other people who have wealth just because it’s fun. It’s their lifestyle. They’re the only people who won’t ask them for money.”
“They’re the only people they can interact with that do not look like puppies begging for scraps. And you’d be surprised just how selfish you will become, given access to the ability to be ahead of everyone else around you. We’re human, after all,” they concluded.
5. Sleep
Image Credit: Pixelshot From Canva.com
“Sleep. I would sleep so long and so peacefully. Then I’d tackle business,” one replied. “This was my first thought; having no care in the world, generational wealth, and nothing forced me to wake up. I would sleep well,” agreed another.
6. Text Family and Ask Them for Money
Image Credit: Lifestock From Canva.com
One user suggested, “Do a mass family group text asking them to borrow money. It will buy me valuable time before anyone catches the wind and comes running for cash.” “It would also be a good test of who deserves a gift from Daddy Warbucks,” added another.
However, a third argued, “Not a group text, text them all individually. You’ll get more of an honest answer to how people would act. If somebody walks into a room full of people and asks someone to give them money, I’m not taking them very seriously. If they walk up to me and tell me privately, they need something. I’m much more inclined to help.”
7. Make Timely Acts of Kindness to My Friends and Family
Image Credit: Puwadon Sangngerns’s Images
“Tell no one and act normal, but eat a lot better. Pay off my debts quietly and make timely acts of kindness to my friends and family,” shared one. “I like this one a lot. I’d probably add simple acts of kindness to strangers and charity, too,” claimed another.
“Having this much money and people knowing, I feel I’d never be able to trust the sincerity of connections I make. But this is a way to have it and still offer timely help and kindness to others around you! Yes.”
8. Pay off Debts
Image Credit: Shisuka From Canva.com
One person expressed, “I’d Moonwalk out of my job and spend the entire day making sure every cent of any possible debt I have is paid off. Also, letting my dad know all his debt is gone, too, and we’re taking an extended vacation next summer, so start planning.”
A second person agreed, “Same here, pay off my debts first. Then any home repairs I have been putting off, and then discreetly pay off mortgages for specific family members and friends.”
Someone said, “Pay student loans off. Before another joked, “With the $5 leftover, you can probably get some Taco Bell or something.” Finally, the OP responded, “I can get TWO things off the dollar menu at McDonald’s and save the extra dollar for retirement.”
9. Mutual Funds Held in a Trust With a 1% Payout
Image Credit: Dzmitry Dzemidovich From Canva.com
“After getting a lawyer, accountant, or financial advisor, I’d probably end up putting it all into mutual funds held in a trust that pays me out 1% per year so the principal can grow over time while still giving me more than enough to live on very comfortably,” confessed another.
10. Hire a Team of Professionals To Get Healthy
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“Hire a doctor, physical therapist, physical trainer, physiotherapist, nutritionist, masseuse – have them on a weekly home visit schedule for six months until I’m in much better shape and health,” one replied.
“Get a personal chef too. You can pay them $100k a year to do all your shopping (on your dime) and cooking, and I bet you could get a legit chef for that much,” a final user said.
Source: Reddit.
Image Credit: Shutterstock – Denis Makarenko
Who is one actress you can never stand watching, no matter their role? After polling the internet, these were the top-voted actresses that people couldn’t stand watching.
10 Actresses People Despise Watching Regardless of Their Role
These 7 Celebrities are Genuinely Good People
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We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?
These 7 Celebrities are Genuinely Good People
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Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.
These 10 Activities Are an Immediate Red Flag
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Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.
10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth
Image Credit: Troma Entertainment
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites
Do you dream about living full-time outside the United States? The best countries to work abroad are affordable, safe and offer job opportunities for foreigners (or at least reliable WiFi for virtual entrepreneurs). Here are 10 international destinations where you can unpack, get to work, and stay a while.
Do you ever wish you knew the secrets to attract wealth because your 9 to 5 isn’t paying the bills very well? You’re not alone! Today, we’ll talk about the 11 secret life hacks that rich people are doing to make gaining wealth easier.
We’ve compiled the best answers from Reddit, so you don’t have to do it yourself. Read this blog and shift your mindset with these lessons from the wealthy.
1. Organize Everything
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If you’re familiar with Marie Kondo, she specifically emphasizes that organizing and decluttering will have a huge impact our lives. It turns out that’s one of the life hacks of truly rich people.
One person said, “Allow me to ramble passionately about a hack of small consequence. Something I noticed about all the rich people’s houses is they have storage containers everywhere. The pantry isn’t piles of groceries shoved inside, it’s all in tidy bins, often matching, sometimes labeled. Their closets have shelves and drawers, not a single pole to hang items. Under their sinks are multiple bins and containers, sometimes on a pullout shelf/drawer. Their spices are ALL on racks, not just the few that fit in a singular rack with the rest piled on top or haphazardly in an adjacent cabinet.
“Their jewelry is organized like a utensil drawer and not shoved in a single box. There are trays or giant bowls by every entry door to toss your mail and keys instead of cluttering every flat surface. Imagine how much calmer your brain would be if you didn’t have to hunt through what feels like a disorganized garage sale everywhere you turn. You don’t have to bend over to rife through objects, you can bring a bin to you.
“I’m just a povvo, but I started ramping up my organizational game and it’s made a subtle but impactful difference in my daily life. Started with matching-sized Amazon boxes in the pantry and Dollar Tree fabric collapsible boxes for toiletries under the sinks and the closet floors, and built up from there. I’ve been slowly converting all my bathroom and kitchen shelves to pull-out drawers (this one is expensive).”
2. Buying in Bulk
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This life hack may not be applicable to every body because, in order to save a lot of money on purchases, particularly groceries, you must have the money to shell out first.
One user shared, “Rich people can afford to save money on purchases if they want. I guess if you are rich and don’t care about saving $ it doesn’t apply to you, but it’s definitely a big benefit if you’re a frugal rich person. If that makes sense. A small tiny example. Most would categorize me as wealthy. I buy high-end groceries but aim to do it for as cheap as possible. When our Whole Foods has a sale on our favorite frozen pizzas, normally $12.99 and on sale for $7.99, I buy 10 of them and load up my deep freezer. The fact that I was able to save $50 is only possible because 1) I have enough money to shell out $80 for the upfront cost on the pizzas, and 2) I have a deep freezer to store it in. Neither of those things would be possible without money.”
3. Semi-Permanent Cosmetics
Photo Credit: Shutterstock.
Beauty, in whatever form, is expensive—and only the rich don’t think twice about spending such a huge amount on beautifying themselves or their surroundings.
“…I think a lot of beauty at that level is faked, just like the lawns are faked. Spray tans, teeth caps, really expensive hair extensions and plugs, professional makeup, tailoring, even surgery, etc. etc. I was shocked when I learned about caps for teeth. I didn’t even know that was a thing. Feels like a total cheat code. Can even avoid the expense and discomfort of braces. There are a lot of beauty ‘hacks’ that are not accessible unless you have $$$,” someone shared.
4. Hacking Expensive Purchases
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One person commented, “I’ve worked for a rich family and learned a couple hacks. Everyone else is correct. They just hire things out. If you’re genuinely curious, then I’ll share two things I learned in my job that are specific to the wealthy lifestyle. First, moths love real cashmere so you have to keep cedar in your closets to keep them away from eating your sweaters. Second, if you are flying private and only medium-wealthy not truly a fan of throwing money down the drain unnecessarily, it is actually more affordable to ship your luggage via UPS than pay for the additional fuel it will take to carry it in the plane with you.”
Another one shared, “I knew a lady who was, let’s just say she was in a different tax bracket. She and her late husband never took a road trip. They flew everywhere. He was a pilot, and they owned their own plane. They would fly somewhere, and if she ran out of clean clothes, she would just buy more. She’d ship her dirty clothes back home, and the maid would have everything dry-cleaned by the time the lady got back. I can’t imagine how many clothes this lady had. Or maybe she donated them on a regular basis?”
5. Networking
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We’re familiar with networking, but it really is one of the life hacks that truly rich people are doing. They leverage the people they know who are also rich and powerful, and that’s what makes them too.
One person shared, “Networking. Powerful people have a large network of connections to get what they want. If you aren’t going out of your way to build ties with people who have things you want like wealth or power, the alternative is working very hard and hoping you get noticed—which doesn’t work most of the time because, unfortunately, the meritocracy is a lie. Learn to meet people and maintain professional connections, not just friendships. And no modesty, that’s a killer.”
The second person replied, “The best network—Politicians, Thieves, Police, Money Laundering—Mafia. Exist all around.”
6. Know What’s Worth Your Time
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“When you are good at what you do to make money, you hire pros to do things that you need and get them properly done. That’s classic economics of the division of labor. You focus on what you do well and make more money. That’s the opposite of downward spiral. The concrete example is that I unblock my toilets and fix leaks. I also change my engine oil. Because it’s cheaper for me to do it. If my pay rate is higher than the pros, if course I’ll hire someone. That saves me money,” one person said.
“Sure… but I kind of hate how many people try to apply this to a typical salary worker. No one is gonna pay me to work overtime on a Saturday at my hourly rate (and I don’t want to), and it’s easier to work on a house project for a few hours than find a 2nd job. Many people point to your example, but they either don’t have time for projects cause they work 60 hours a week or prefer to use their disposable income and do something else with their free time. They are not financial wizards, they just make other choices based on circumstances, and that is fine,” argued another commenter.
Another user added, “Yeah, not every minute of my day is monetize-able. Someone once said Bill Gates is so rich that he loses money if he stops to pick up a penny in the street. No, he doesn’t. He didn’t cease to earn money for doing it. Rich people hire others to change their oil because it gives them back time for leisure.”
7. Buy Quality the First Time
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One person said, “I was taught to always buy the best of anything I can the first time so I don’t waste my time, money, or efforts on junk. That bled over into everything. Relationships. Experiences. It becomes a mindset and lifestyle. I think that’s what you’re seeing when you look at that neighborhood.”
Another one replied, “This right here. If you want to buy a new piece of furniture, TV, car, etc… Buy nice things and buy quality. It’ll last for years and years. Also, pay cash. Don’t bother financing it. That’s just more wasted money.”
Another user quipped, “Buy once, cry once.”
8. Weigh your Options
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“Not really a hack but spending dollars so they count. If there’s a gym that’s $50 a month but is 20 mins away and they’ll only go once a week, and there’s one 2 mins away that’s $200 but they’ll go every day, spend the extra money. The $50 option is a waste. This can be applied in many circumstances,” one person shared.
9. Elegant Appearance
Photo Credit: Shutterstock.
One person shared their experience while working with truly rich people, “A few things I’ve noticed when working for wealthy people. They look rich even in casual clothes because they get everything tailored, even simple white shirts and jeans so they look expensive even when they aren’t.
“A lot of accessories like shoes, bags and jewelry are custom made which can be a better option if you’re going to spend a lot on designer brands anyway, and they will be unique. They don’t just go to the gym, they have a personal trainer who focuses on that toned without being too muscular look, so they look naturally hot without trying.
“Getting blow dry right before an event makes you look polished. I worked for a woman who never washed her own hair, and she always looked amazing. I saw people spend a lot of money on wardrobe staples like jackets and classics, but they would only buy high street seasonal pieces to keep them in style.
“They sell designer pieces to concession stores after wearing them a few times and basically get 50-80% of the cost back depending on the designer. Having lunch at a Michelin-star restaraunt can be slightly more affordable than dinner but you still get the experience. Having drinks at the restaurant bar so you can be ‘seen’ and mingle but don’t have to buy dinner. Going to clubs and events on weekdays means you are more likely to get in, get a table/ticket and it can be less expensive.”
10. Excellent “Talkers”
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One person shared, “When I was doing my first startup I saw ‘new money’ people. In school I saw ‘old money’ people. There are all types of rich people and these types have their own ways. They do live in the same areas though. They recognize each other by their watch, type of clothes and behavior. And you can see if they are new rich, old rich, dem or rep by these things too. Their kids go to an endless amount of extracurricular activities. Here it is hockey and tennis, sometimes baseball. The parents do it so their kids build their network (I mean 5year olds).
“Rich people have some skills, but the main skill is talking. They are great at talking. It used to put me off. So and so became the director of yadayada. Why? The only thing he can do is talk. And that is precisely the point. They don’t get so stressed. They just talk for a living. Everything comes from their network. People like listening to their stories. But they cannot do anything of value other than talking. They hire people for that. Duh. Don’t be apologetic. Don’t do stuff worth 10$ an hour if you can make more. Do lots of self-care. And be a professional talker. Listen to people, look at their behavior and clothing, and copy that in your own way.”
Someone added, “I agree with this comment but will extend it further. You call it ‘just talking’ to anyone that will listen, but what they really are doing is ‘selling.’ They are selling their latest ideas, pitches, schemes, problems, solutions, whatever, etc. And their audience (other rich people) love to talk too, so the audience then adds on to those ideas, sometimes with money or introductions to other people with money. And it snowballs because of the network effect.”
11. Etiquette and Mannerisms
Photo Credit: Shutterstock.
“You have a lot of time for personal maintenance and improvement if you don’t have to worry about cooking dinner or doing laundry. Some things, like good etiquette, are made very important from a very young age (hence the napkin folding, knowing what course to use which fork, how to properly address folks in a formal setting, etc) it’s a social code that helps identify who is and who isn’t,” one person stated.
Another one added in agreement, “Exactly. It’s very subtle and says a great deal.”
Source: Reddit.
Image Credit: Shutterstock – Denis Makarenko
Who is one actress you can never stand watching, no matter their role? After polling the internet, these were the top-voted actresses that people couldn’t stand watching.
10 Actresses People Despise Watching Regardless of Their Role
These 7 Celebrities are Genuinely Good People
Photo Credit: Shutterstock.
We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?
These 7 Celebrities are Genuinely Good People
Photo Credit: Shutterstock
Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.
These 10 Activities Are an Immediate Red Flag
Photo Credit: Shutterstock.
Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.
10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth
Image Credit: Troma Entertainment
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites
True penny pinchers always buy used cars over new ones for one rock solid reason: new cars depreciate by thousands of dollars the second you drive off the lot. But three years ago, before my financial epiphany, I bought a new car, and I don’t regret it. I concede that buying used is usually best, but there are times buying new isn’t as bad as some say.
Winter weather has arrived in Oregon — it’s rainy and cold. This time of year, Kris and I search for ways to keep warm. A lot of guides to saving money on heating contain impractical advice: “consider heating with solar energy!”. They offer good suggestions for the long-term, but they aren’t useful if you want to save money now. Here are some frugal ways we stay warm in our drafty old house.
Let in some light. Open blinds on south-facing windows during the day to let in the sun. Close them in the evening to add a bit more insulation. This provides just enough mid-day warmth that we don’t need the heater.
Use rugs on bare floors. We have hardwood floors above a poorly-insulated basement. These floors are cold in the morning and the late afternoon. An area rug does a fine job of keeping my feet warmer.
Block drafts. This is best done with weather-stripping or other forms of insulation, but even a blanket in front of a door helps. Because our house is so old, nothing is level. This makes it difficult to install weather stripping. The bottom of our mudroom door, for example, has a one-inch gap on one end but is flush with the floor near the hinge. By laying a blanket in front of the door, we can mitigate some of the heat loss.
Use space heaters. According to Michael Bluejay’s energy guide, this is the single best way to save money on electricity. As I learned from my tests with the Kill-a-Watt, a portable radiator-type oil heater uses a lot of power, but not nearly as much as a furnace. We have a couple of these heaters. They take a while to get warm, but once they’re going, the can heat a small space cheaply.
Bundle up. I love cold-weather clothes: long underwear, sweaters, hats, scarves, gloves. Some days we simply bundle up and turn down the heat. It’s cozy. And don’t forget: house slippers go a long way to keeping you warm!
Install a programmable thermostat. My sister-in-law just received her first big heating bill at her new home. “It was $100!” she said. (She had been leaving her thermostat at 68-degrees around the clock.) Her heating bill was more than she had budgeted, and made it easy to justify the cost of a new programmable thermostat. They’re easy to install and an excellent way to cut your heating costs. We set ours for 54 at night and when we’re gone during the day. (Reader Adam G. reviewed his programmable thermostat last August.)
Use an electric blanket. There’s no need to heat the entire house when you’re asleep. There’s no need to even heat the bedroom. An electric blanket is cheaper and cozier. (A blanket with dual-controls is best.)
Change the furnace filter. A dirty filter forces the furnace to work harder, decreasing its efficiency, increasing heating costs. We change the furnace filter at the start of the season, and once every month or two thereafter.
Close unused rooms. Do not heat them. This winter, we closed off our guest room and shut the heater vent. That room is now separate from the rest of the house. It stays cold, but there’s no reason to keep it warm.
These steps can reduce your heating costs immediately. In the long term, your best bet is to make sure your home is properly insulated. You should also check that your heat source is efficient, and that you’re not losing heat in unintended locations.
For example, I went down to the cellar last night to pull out some Christmas lights. I was startled to find that the basement was actually warm. It shouldn’t be. It’s uninsulated, below-ground, and exposed to the cold. The furnace was pumping away, doing its thing, heating the house. But it was apparently heating the cellar, too. It took only a moment to find the problem — our ductwork is not insulated. As the hot air blows through the pipes, the metal is heating, and the warmth is dissipating into the basement. We need to fix that.
Reportedly, insulating your water heater is another good way to save money. Since ours lives in the uninsulated mudroom, we should probably look into that.
For a detailed analysis of how your home can be heated most efficiently, set up an appointment for an energy audit. Many large cities have free programs for assessing home energy use. In Oregon, for example, the Energy Trust is a non-profit coalition of energy companies. A representative will tour your home and give you advice on how to save money on utilities. It’s free. (In fact, when we did it, they gave us several compact fluorescent bulbs and told us about rebates we qualified for. It was better than free.)
Robert Kiyosaki, Robert Allen, and Loral Langemeier would have you believe that in order to get rich all you need to do is throw your money into real estate, sit back, and let the profits come. It’s not that simple. There’s risk involved. You have to know what you’re doing.
Jon forwarded a link to what he calls “a personal finance trainwreck”. He writes: “If this guy is for real (and there appears to be some suspicion about that) then, wow. Unbelievable.” Casey at iamfacingforeclosure.com thought he could make a killing at real estate. He wanted to reach Financial Independence quickly.
I’m a 24-year-old aspiring real estate investor from Sacramento, California. After going to few seminars I bought eight houses in eight months across four states with no money down. I fixed and sold two and then ran out of cash. I am now facing foreclosure on six five houses. I’m learning my lessons, finding solutions and blogging about it.
Casey’s story is fascinating. Here’s a young man who read Kiyosaki and Allen, and who is trying to find riches by following their advice. He’s trying to make money quickly, and is struggling, but is willing to share the gory details. In one entry, Casey writes that he and his wife are running out of money. They’ve been living on credit cards, which are now maxed out. He’s afraid he might have to get a job.
I can’t just do a job. I do not want to give up my dream of financial independence. If I get a full-time job, I will continue doing my business and investing on the side. Finding time to do both will be hard (tried it before many times). If I must do that, I will. But it will probably take much longer to reach my goals.
An hourly job has limited earnings potential. Getting a 3% raise every year is not my idea of upwardly mobile. Making $25/hour writing code seems like a waste of time when I can sell a real estate contract for $5,000 after doing 5 hours of work = that’s $1000/hour!
So if I can work really hard for one month and find just 2 deals, I can make $10,000. That’s much better return on my time.
Casey received many responses (the comments are the best part of the site), some helpful, some angry, some flabbergasted. Some are all of these at once.
You’ve just nailed the difference between fantasy and reality. […] You are in the process of learning the difference between GAMBLING and INVESTING. Everything you’ve done so far has been gambling. Investing requires that one balance the risk with the rewards, diversify, and be dedicated. Some investments will fail, but a wise investor won’t have too much tied up in any single thing (like real estate purchased on a guru-drunken binge). Investments are made with money that one could stand to lose. Investing is not done by leveraging oneself up to the eyeballs and beyond, hoping for a miracle.
You can see television interviews with Casey (choose “House Flipper Part One” or “House Flipper Part Two” from the menu in the middle of the page). His story is also featured in two articles from the San Francisco Chronicle:
Langemeier, Kiyosaki, and Allen are inspirational. Some of their ideas may even be useful. (Prlinkbiz — who I’m sure will have something to say about this entry — is a huge Kiyosaki fan, and seems to be making his principles work for her.) But these folks preach that their methods are sure-fire ways to wealth and success. They overpromise in an attempt to sell books and seminars. Langemeier says she’s created 200 millionaires, and that she can make one out of anybody. Yet I can find no independent evidence that this has occurred. I’m not saying that it hasn’t happened, but I’m skeptical.
The only sure-fire way to wealth and success is to spend less than you earn, to save the difference, and to invest that savings for growth.
Follow-Up on Casey Serin, the Man Who Would Be Rich
Casey stopped by Get Rich Slowly yesterday and had this to say:
I don’t see why a person CANNOT get rich quick… but still do it in an honest and safe way. Whenever you hear “Get Rich Quick” you think somethhing bad.
And yes, if you read my story, it DOES sound like i’m just a big screw-up. AND YES.. I did do some stuff that I am NOT proud of (liar loans). However, I am learning my lessons and hoping to make a comeback.
I am determined to find a way to make an honest buck in real estate in a down market. My mentor “Rich Dad” did it. It took him only about 10 years. Now he has 20K+/mo in PASSIVE income from REAL ESTATE.
Is 10 years too quick? What about 5 years?
That’s an interesting question. How quick is too quick?
It’s not impossible to get rich quickly — the day before I wrote about Casey, I shared advice on how to handle sudden wealth — but it’s dangerous to focus on quick wealth as a goal. I’m convinced that people get rich quickly by chance, not by intention. If get rich quick schemes worked, more people would do them. You’d read and hear documented tales of success. But they don’t work. They’re mostly scams designed to transfer money from saps like Casey into the hands of others.
My advice for Casey is this:
If you have a burning passion to make these sorts of plans succeed, then pursue them with only a portion of your finances. Follow tried and true personal finance wisdom with most of your money. Take 90% of what you earn, and do the boring stuff with it: pay off debt, start an emergency fund, invest for retirement. You are so young right now, that if you would invest just $5000 each year until you’re 50, you could retire then as a millionaire. (Assuming 10% returns.) This is with almost no risk. Why try to get rich all at once? Why not ride it out?
If you’re dead-set on trying to get rich quickly, then don’t use all of your capital to do so. Do the safe stuff with 90% of your money. Save the remaining 10% to make real estate purchases. If you strike it rich, great. But if you don’t, then at least you haven’t mortgaged your future. This isn’t ideal for most people, but you have the drive and desire, so it gives you something to play with. But this means that you’ll have to work in order to meet your goals.
I don’t want to kick Casey’s dreams. Dreams are good, and I think people should pursue them with gusto. Too many people make a practice of telling others why their plans won’t work instead of lending support. But when your dreams are at odds with reality, you need to re-evaluate.
$2 Million in Debt in Two Years
Casey Serin of I Am Facing Foreclosure held a two-hour conference call to take questions from readers and to explain his situation. I didn’t hear the call, but I did read the entire transcript (part one, part two).
For those of you unfamiliar with him, Casey Serin is the Napoleon Dynamite of real estate investing. He took real estate seminars from Russ Whitney and read books by Carleton Sheets. He bought into the “get rich quick” mentality. In October, the San Francisco Gate wrote:
After spending a year and upward of $15,000 (borrowed on credit cards) going to real estate seminars and buying home education courses from everyone from Russ Whitney to Bruce Norris and, of course, the aforementioned Robert “Rich Dad, Poor Dad” Kiyosaki, Serin embarked on his brilliant career as a real estate flopper, er, flipper. “I wanted to move toward financial independence,” he told me by phone from his home in Sacramento, referring to “passive income,” a key tenet of the “Rich Dad, Poor Dad” scriptures (“Don’t work for money, allow money to work for you”).
Most people take these seminars and read these books but never do anything. Serin heeded the advice of these gurus. In his own words, he “bought 8 houses in 8 months in 4 states with no money down looking to fix ‘n flip.” He bought these houses between October 2005 and May 2006, after the U.S. real estate market had already begun to decline. He ended up $2.2 million in debt, and he’s been blogging about it ever since.
Serin’s story bugs a lot of people. He made many mistakes. He lied on his loan applications (and continues to rationalize this by saying it’s “industry standard policy”). He exhibits no regret. He continues to live a normal (even lavish) lifestyle despite being deep in debt. He refuses to pay anything on his debt because he doesn’t think it’ll make any difference. He refuses to take a job. He doesn’t take any action to improve his situation. He seems to be a publicity whore. Despite his failures, he believes that he can still get rich quick in real estate if he only finds some sweet deals.
I don’t get angry at Serin. I just think he’s dumb. He continues to pursue a way of life that is just not tenable. He’s trying to bypass the “hard work” portion of the American Dream. I consider his story a stark counterpoint to my message of “get rich slowly”. (Trivia: Casey went to high school with Ramit of I Will Teach You to Be Rich. The former tried to get rich quickly and failed. The latter teaches sensible entrepreneurship and personal finance advice, and has succeeded.)
As I said, I read the entire transcript of Serin’s two-hour conference call. It’s an amazing glimpse into the mind of a young man who wants wealth now. Since I know most people don’t have the time to wade through the entire thing, I’ve culled the best parts to share here.
The first thing that strikes you when reading Serin’s stuff is that he doesn’t seem to have learned his lesson. He’s two million dollars in debt, but he’s still convinced that there’s a quick fix for this mess.
Besides real estate, I’m also looking at other opportunities. With this exposure I’ve had, I’ve made a lot of interesting contacts in different industries, not just real estate. I’m talking with a gentleman in Southern California who’s a silver broker, for example. The silver and gold and precious metal market right now is on the rise, and whenever there’s turbulence, or any kind of a war, or anything crazy with the economy, that’s a good place to put your money. I’m definitely looking at that. I’m looking at stocks, but individual stocks, not mutual funds — the performers, the companies that are about to take off, that you’re able to make some money; for example, with penny stocks.
I want to mail Serin a box of personal finance books. I want to send him Dave Ramsey, Your Money or Your Life, the words of John Bogle. I want him to read real personal finance advice that works. But I’m afraid the books would go unread. (Does anyone have his address or know how to get it? Maybe I really will send him some personal finance books.)
At times Serin seems to have learned something. Regarding “no money down” deals, he says:
If I was putting my own cash down, I would have been a lot more careful. That’s what happens when you have a real down payment. Anybody out there who’s looking to do a no money down deal, I say, you have to be careful. Don’t treat the no money down as just a free deal for you.
But other times it seems he hasn’t learned a thing:
I love those no doc loans, they’re the best because you’re never stating anything so no one can ever go back and say you were lying on your application.
One caller tried to explain the concept of “buy low, sell high” to Serin, but he didn’t want to hear it.
CS: Well, you know, if you’re going to do flipping in a down market, here’s the biggest thing. Buying is going to be easy. There’s tons of people giving houses away, including myself. You come to me; I’ll give you my houses away. Just take them over, or whatever; save me from foreclosure. So, buying is not going to be the hard part. Selling is the tough part. You have to get really good at selling your properties, and in a down market, you probably don’t want to buy anything that’s not a first-time-buyer home. […] SC2K2: I just can’t handle how brainwashed you’ve been by all those seminars. CS: Oh, yeah? SC2K2: The way you make money in a down market, is you wait for the prices to bottom; you buy in paying very little; and then you sell when they’ve gone way up. Yeah, your Rich Dad probably — CS: That’s the long-term strategy. Are you saying you can’t do quick flips on the way down? SC2K2: You know, Casey, there’s no way you would be able to handle quick flips.
Serin isn’t interested in a long-term strategy. He wants his money now. He doesn’t see that this is precisely where he’s going wrong. While he’s focused on quick riches, he’s neglecting basic personal finance. For example:
I thought at the beginning it would be such an awesome story, a comeback story and show so much success to be able to pay everything back, but at the same time I think I had a bit of a wishful thinking going on, because I didn’t realize when I first started what kind of a hole I was in. The hole’s so big that at this point, I’m really out of options.
Yeah, but here’s what’s going to happen. I pay a credit card — even fifty bucks — that doesn’t do anything to the collection process. Here’s what happens: it’s going to go and get discharged, and then they’re going to try to sue me and try to get that money. So that fifty bucks could have been used better in something where I can actually make money, perhaps doing another deal —
And:
GDS: What’s your FICO now? CS: I actually don’t know because I haven’t logged into Washington Mutual in a while and I probably should have done that before this call, but last time I checked it was in the high 400’s, 490 I believe or something along those lines. It might be lower now because I’m going to have two official foreclosures showing up on my record any time. GDS: Well, it doesn’t go below 450, so it doesn’t get much — CS: It might be interesting to see if I might be a person that actually gets a 450 FICO score. I might be one of the few amongst some of my friends. I’m hoping other people don’t do the same thing I did.
The end of the conference call is the best part. A caller named Nacho tries to push Serin to think about his situation, about the things he’s done.
CS: Not everyone’s going to be successful and self-employed. But don’t you know self-employed doctors or lawyers or successful realtors or anybody who doesn’t have a W-2 but still makes money? It’s not like W-2’s the only… NACHO: But you haven’t been successful! So isn’t it time to try something else? Supplement your side jobs with a real job. CS: Well, you know, I never said I’m not going to get one. I’m definitely considering that, and since I do still have money coming in through some of those other sources, it allows me to stay flexible so I can still kind of be in real estate a little bit, and other opportunities. NACHO: Do you understand that the real estate market is tanking? Do you have a grasp of that? CS: Oh, yeah. That’s why I’m looking at other investing opportunities, not just real estate. NACHO: And do you understand that you bought in at the worst possible time? You do understand that, right? CS: It’s not like you can’t make money in a down market. My local Rich Dad, he made his fortune in the last downturn in California. But of course he had a lot more experience. NACHO: Did he have decent credit? Was he able to secure loans? CS: Well, he could secure loans. He had money partners. He had mentors. See, I kind of started off without any mentors guiding me, and that’s kind of one of my problems. And I didn’t have any construction experience. NACHO: You know what, Casey? I don’t think mentors is your problem. I think you’ve got enough with these guru mentors. I think that that’s the last thing you need. What you need is a swift kick in the ass, from somebody who’s going to tell you the truth. Seriously. Someone who’s going to tell you the truth. CS: I appreciate you being upfront and giving me a little dose of reality, as you said. NACHO: Well, that’s how I roll. I’m always trying to keep it real. I’m just trying to let you know, man, that you need to start looking at things differently. You’ve been going a certain way and it’s not working out for you, and you really need to change the way you’re viewing life. CS: Well, I appreciate it. NACHO: Because everybody that you owe money to is going to get shafted, and then, in turn, taxpayers are going to have to pay — you know, foot the bill. NACHO: Are you worried about going to jail? CS: I’ve already kind of addressed it, but the thing is, if I live my life in fear, what good is that going to do? NACHO: And you don’t think that you deserve to go? You don’t think that what you did was basic thievery? CS: Well, the thing is I wasn’t out to rob banks, I was out to make a business, and I screwed up. NACHO: But Casey, you got everything fraudulently. Come on, you knew in your heart that that was the wrong thing to do. CS: Part of me was thinking that maybe I shouldn’t be doing stated income loans, because even though everyone seems to be OKAY with it, I had a little bit of a gut instinct. I should have listened to it; you’re right. NACHO: And you understand that when you do things wrong like that, sometimes you have to pay the piper? CS: Oh, yeah. And do you think I’m paying the piper? NACHO: No, not yet. Not by any means, no. CS: You don’t think that all the financial stress and the issues I’m going through is not enough? NACHO: Absolutely not, Casey. I think you should be out there working your ass off — two jobs if necessary — paying five bucks a month on every single bill if that’s what it takes to pay this stuff down. I think you should be calling your creditors and making some sort of payment arrangement for you to — CS: You know what? Check this out; put yourself in my shoes. Even if I get three or five or ten jobs right now I’m not going to be able to catch all my loans up, so they’re going to go to collections, and they’re going to start suing me. So if the only good thing I can really do right now is bankruptcy protection or refinance all those loans. NACHO: If you pay five dollars a month on any bill, they can’t send it to collection, Casey, do you understand that? CS: Sure, they can. NACHO: No, they can’t. CS: If I don’t pay the full monthly payment — I can’t just keep letting them go… That means I can just pay a dollar on all my loans and they’ll just keeping indefinitely. They’re not going to do that. NACHO: I’m not talking about the foreclosure loans, I’m talking about the credit card bills. CS: Even the credit cards. NACHO: Casey, you have to do something to try and right this wrong. Who’s the guy who has the blog – I am [$334,442 in unsecured debt. I am 23. Will I make it ?] dollars, whatever the hell it is, in debt. CS: Yeah, the guy eating Ramen and stuff. Yeah, he’s eating Top Ramen; he’s doing all this other stuff. NACHO: He’s doing the right things. If you would do those things, people would be behind you. People would be giving you suggestions and telling you what to do. Do you understand that? CS: Well, you might have a good point there. But I wonder if that guy’s really for real, though. Do you think a person can survive on Top Ramen for six months? NACHO: Oh, yeah. Sure. CS: Do you think he can eat that crap and still be healthy and still be safe? NACHO: Yeah, throw some vegetables in there. Casey, the last thing you need to worry about right now, seriously, is eating your vegan — your mildly vegan — seriously, you throw some vegetables and a little bit of whatever, some chicken in the Top Ramen, and it’s fine. Have some beans and rice; that’s fine. Buy a big-ass bag of beans and a big-ass bag of rice and cook it up. Have oatmeal for breakfast —
Casey Serin may or may not be a good guy. I can’t tell. He seems likeable enough. But he has succumbed to the idea that the best way to make money is through tricks and games. I’m not saying that you have to be a wage slave all your life in order to get money to save for retirement. But there are clear, safe paths to wealth and happiness. They take time. They take effort. My goal is explore these paths with you. It’s too bad Casey’s not along for the journey.
Though David Bowie moved on from this beautiful New York apartment with Central Park views in the early 2000’s, he left a special something behind.
His piano.
The delicate instruments are notoriously difficult to move, and the process doesn’t get any easier in an apartment, no matter how spacious. Since Bowie moved, the piano has changed hands with every owner, and now it’s up for grabs–as long as you also buy the $6,495,000 apartment that houses it. Of course, it’s a pretty nice apartment.
Its 3 bedroom and 3 bathrooms are spread out over 1,877 square feet, including a top of the line kitchen and all the amenities of the nicest hotel. Take a look below.
Ocwen Financial ended a losing streak with a slim profit in the second quarter, driven in part by the firm’s first reverse mortgage securitization.
The originator and servicer posted $15 million in net income during the second quarter, a leap over its $40 million loss at the end of March and an $80 million loss during the last three months of 2022. In addition to the spring gain under standard accounting principles reported Thursday, the company also recorded $46 million in adjusted pre-tax net income from servicing that included $21 million in reverse mortgage gains.
The firm’s PHH Mortgage subsidiary sponsored in June a $265 million reverse residential mortgage-backed security, after a pair of large asset purchases, executives said. Ocwen acquired a $133 million portfolio of reverse mortgages and real-estate owned assets, and combined it with $167 million of its own existing buyouts. The combined transactions produced around $15 million in adjusted pre-tax income, company leaders said during Thursday morning’s conference call.
“This is a terrific example of how our superior operating capabilities and diversified business allows us to capitalize on unique opportunities that are emerging in this environment,” said Glen Messina, Ocwen chair, president and CEO. “However, the timing and the profitability of any such transaction cannot be estimated at this time.”
The company ended June with pretax income of $23 million on an adjusted basis. That was an increase over the prior quarter’s $6 million and a $38 million pretax loss in the second quarter last year.
The recent profit was diminished by a $33 million negative mortgage-servicing rights valuation adjustment, a small improvement from the $39 million subtraction to close March. In the second quarter last year, Ocwen reported a $46 million favorable adjustment.
“What we’ve seen during the course of 2023 has been a fair amount of volatility in what’s called the discount margin or spread, essentially, that reverse mortgage-backed securities get priced off of,” said Messina. “That spread volatility has impacted our originations business and frankly, has impacted the valuation of our MSR portfolio.”
This second quarter’s dip was however offset by $28 million in favorable adjustments from legal expenses, stemming from Ocwen’s court victory over the Consumer Financial Protection Bureau in May.
The market for MSRs in the second quarter favored buyers, Messina said. Ocwen was busy, also securing a subservicing agreement with Finance of America Reverse in May.
“Potential client interest in subservicing remains stronger than ever and our opportunity pipeline continues to grow,” said Messina. “However, We continue to see clients extending RFP processes and decision making due to market factors and conflicting priorities.”
Another factor impacting seasonal changes in MSR runoff, he added, will be trends in property tax remittances and escalating insurance costs impacting escrow balances.
Ocwen counted a total, unpaid principal balance of $289 billion in servicing, down 3% quarter-over-quarter, including $158 billion in subservicing, which was down 2% over the same time period. The subservicing declines came from tiny dips in both reverse and forward loans.
The company is still targeting up to $25 billion in subservicing additions through the first quarter of 2024, with executives touting a favorable servicing environment including record-low prepayments.
The servicer ended the second quarter with $256 million in cash and cash equivalents, and $272 million in revenue, both modest quarterly and annual increases. Ocwen also drove its expenses down from $114 million in March to $84 million, with a $17 million decrease in professional services costs.
The spring tailwinds could subside in the third quarter, company leaders warned, with reverse mortgage opportunities drying up. Homeowner equity has become less competitive with high interest rates, Messina said.
The company reported a $1 million loss in adjusted, pretax origination income, a slight nudge up from last quarter’s $2 million loss.
Ocwen’s stock fell post-earnings and ended Thursday down 5% at $32.82 a share.