Funding Real Estate Deals: Can You Say Friends And Family

Funding real estate deals is obviously an important component for any investor that wants to do multiple deals. This is probably even more true today, with the state of lending and the economy. So what is an investor to do? Well there are several means outside of the conventional and one which you may not have considered. I am going to site a very successful investor, you certainly have heard of, and his strategy and how this may work for you, too.

Warren Buffet is an American investor who earned a huge fortune from wise investments. He lives in Omaha, in a house that he has been living in for the last 45 years. He is the second richest man in the United States and recently gave the first richest man in the United States $37 billion dollars to handle for him. He donated it to the Bill & Melinda Gates Foundation to manage.

When he was a young man just home from graduate school a few decades ago, he was convinced that you should always buy based on the fundamentals and not worry about trends, what other people were doing, or even what the buzz on Wall Street was. So he wrote a thesis and mailed it to 272 of his closest friends, neighbors, and relatives. Basically it said, “Here’s my philosophy. I’m not going to take a job. What I am going to do is start a fund that will only buy on the basis outlined in my philosophy. I will walk over broken glass to make sure that you don’t lose a dime. I will have 100% of my net worth at all times in the fund.”

Then he just mailed the letters and waited for people to send checks to him. While he waited, he started calling on people. He signed up a large share of those 272 people at some point or another. If you had been one of Warren Buffet’s original investors, you would be quite well-to-do today.

He knew that he couldn’t just run an ad in a newspaper since he was a kid hardly out of college. He had to deal with the people he knew best and who knew him best. Many people of good character thought a lot of him and invested their money. Some of them invested just a little money at first and then more later on. But surprisingly enough, over two-thirds of the people to whom he wrote letters became stockholders in that first month.

You need to do that, too. If you can’t get an owner or a tenant to invest with you, start with the people to whom you are closest-that know you the best. They are the ones most likely to give you money. Perhaps it seems to be counter-intuitive to ask your best friends for money because you don’t want to ruin that friendship, but consider these key points.

Key Points:

If your deal isn’t good enough to ask your Mom to invest in, you should not consider the deal. If the deal isn’t good enough for your friends or family, it may not be a wise starter deal for you. So get out there and set up the best possible deals. Only show people the deals that are under contract. Otherwise, they’ll feel that it’s their prerogative to dictate how your deal is structured, and may act like your senior partner. Show them why it’s such a good deal, but if they’re not convinced, they simply don’t have to invest.

Now you may have to get outside your comfort zone to initiate this technique or you may quickly find out ‘Who Loves Ya Baby’. However, if you are knowledgeable and confident you can do good deals and prove yourself, then it is likely you will find people to invest with you and most likely more so in the future if they are getting a good return on their investment. So funding real estate deals from external sources will take some leg work and effort, but it is a doable proposition if you approach it in the correct manner and perform on your promise.

Cancun Real Estate – Lifestyle Benefits From Sports Investment

For Cancun real estate buyers, the main attraction to live here is the wide, beautiful beaches, warm weather, and high quality of life. Another clear benefits to choose living in this city is the effort made by municipal and state governments to maintain and increase facilities for public activities; these sorts of investments provide a double benefit, often making life convenient for residents, and at the same time improving the quality of life for the working class population, preventing social problems, keeping the city safe and pleasant.

A recent example is a sports complex which was celebrated its grand opening at the end of August, 2010. At the celebration, the governor of the state of Quintana Roo (which includes Cancun, Playa del Carmen, Cozumel and Tulum) and the mayor of Cancun stressed the benefit which sports bring in health, education, security and development, contributing greatly to a better society.

Other sports related projects which have recently been completed in Cancun are the Olympic swimming pool, renovation of the ballpark “Beto vila” and football field “Andrs Quintana Roo”, the rehabilitation of the regions and construction of sheltered basketball courts in various surrounding villages. One way in which Cancun’s investment in sports has already been paying off has been the success of local athletes on a national level. During the most recent National Olympic games, this state ranked 13th, a huge improvement from five years before (2005) when the state ranked 34th.

A number of these projects show a direct benefit for expats living in Cancun, such as the new sports complex or Olympic pool, which are very accessible and good quality for their use.

However, the social benefit is also a necessary investment for Cancun real estateowners. As the mayor pointed out, “sports help to fight the vices of society and to keep away children and young people from addiction,” and other social problems. This means that the streets of Cancun will be safer and cleaner and the relationship between expats and the local working population will be healthier.

A number of expats in the Cancun area also choose to be involved in local sports programs. Involvement can take place in a number of ways:

  1. Direct team involvement.Whether a casual adult team with monthly competitions, or a teman for the kids, these kinds of sports are a great way to get to know other members of the community (expat and locals) and see surrounding areas during travel for tournaments.
  2. Coaching. Ideal for retirees, or others who no longer participate in the sports actively, but have good experience which they can share with kids. For someone who knows some Spanish, this a great way to share with local kids, and be a good “neighborhood ambassador” for their country.
  3. Donation and Support.While some people don’t play sports and don’t know much about them, or are here on business and just don’t have the time, financial or equipment donation for kids teams are a very necessary form of support. Fan-support is also welcome!

When considering life in Cancun, consider sports as a part of you relaxing beachfront lifestyle.

Luxury Real Estate Marketing Essentials – Involve Your Clients in the Community

As a luxury real estate marketing expert, come up with something that can get your clients involved in the community. It feels wonderful for all who participate as well as those who benefit from your actions. Here are two exciting ideas to start you thinking in this direction.

The Ritz Carlton

The Ritz Carlton chain of hotels has found a novel way to contribute to the communities where their hotels are located. On designated days, guests and hotel staff contribute a half day to a local community experience in a humanitarian or environmental project. Unique to each destination “the program is designed to make a lasting contribution and create an enduring impression.” All profits are donated to the participating organization.

For the guests, it is a fine opportunity to join the locals and enhance their experience of the cities in which they are traveling. What a wonderful way to meet people and create new friendships! This is social networking without computers. It is the best way of playing a part in the global village, spreading culture and generating good will. The venues are varied and interesting. You can plant trees in Beijing, preserve monuments and memorials in Washington D.C., or participate in music therapy for children in Istanbul.

FreeRice.com

For those luxury real estate marketing professionals who like to play games on the Web, here is a site that is amazing. Go to FreeRice.com. It is a vocabulary game. For each word you get right, they donate 20 grains of rice. It is free, it is fun, and hunger is on its way out. You improve, and life improves for someone hungry. So far, since its debut in October of 2007, 39,541,334,330 grains of rice have been donated. How do they do it? You can advertise on the site, and those dollars buy rice.

A terrific marketing idea for luxury real estate professionals would be to donate some rice in your client’s name and include that in an advertisement. This is a great return on investment, and think of all those eyeballs viewing your ad while learning a new word.