Don Loyd, President
Oregon Association of Real Estate Professionals
From my earliest days I remember thinking and planning on ways to make money. When I was in the second grade I came up with a plan to gather apples from nearby orchards and set up a roadside stand along California’s Highway 101 in Cloverdale. I enlisted my brother’s help and together we set to work with dollar signs dancing in our heads. Unfortunately we didn’t sell any apples that day and if I remember correctly, we took the apples to our mother who made apple sauce out of our stock.
The fact that I had failed didn’t seem to bother me. I kept thinking and planning. In a comic book I found a coupon advertising a business opportunity, mailed it in, and I started my very own door-to-door greeting card sales company. As you might imagine, it wasn’t much of a company but nevertheless I knocked on our neighbor’s doors and talked to our friends and sold boxes of greeting cards. Mother was probably my best customer.
I began to see the advantage of repeat customers and started a TV Guide sales route which ran on Saturdays. I would receive my weekly allotment of TV Guides and hit the sales route. When I was 12 years old I hit the big time. I had a paper route that paid big bucks - a penny a paper to deliver the Fresno Bee in Sanger, California!
I seemed destined to a life of marketing and sales – which is quite interesting when you know the “rest of the story” as Paul Harvey has said many times. From early childhood I had a speech impediment. I stuttered. My problem made talking difficult and understanding what I was saying almost impossible at times. My “disability” was very, very bad. I entered speech therapy in the first grade and although I continued with it for many years it didn’t help. Finally, when I was a freshman in high school I pulled the plug on speech therapy.
As a result of my speech problem I was often the brunt of jokes. I was called names and made fun of by my peers. In high school I might be walking down a hall and someone would say, “Stutterin Don, how’s it going?” Adults tolerated me and often tried to finish my sentences when I couldn’t get the words out – much to my frustration and annoyance.
In 1967 I tried to enlist in the Army but I was rejected because my speech impediment was so severe. This was during the height of the Viet Nam War and they were taking almost every young man with a normally beating heart. I was classified 1-Y, just one step above the worst classification – 4-F.
Soon after my Army rejection I married my wife, Becky, and we had a large church wedding. I didn’t want to repeat my vows because I didn’t want everyone hearing me make a mess of things. However, since the vows are the central part of a wedding ceremony I couldn’t avoid saying them. When it was my turn to repeat our vows, I just mumbled some sounds so the preacher could hear something.
As hard as my speech impediment was to endure, I determined not to let it, or other people’s reaction to it, stand in the way of my dreams. I decided I was in charge of my life, not those who poked fun or ridiculed me. My success, if any, was up to me.
In 1970 my dream was to “get rich,” or at least my version of it. I contacted the brother-in-law of a friend of mine who had a direct sales company selling fire alarms “door to door.” My friend told me about all the money his bother-in-law was making and I knew he drove a new El Dorado, wore great cloths, had a nice house, and owned a lot of real estate. That was right down my alley.
I wrote him a letter expressing my desire to go to work for him. I wrote rather than call because I didn’t want him to know of my speech impediment. He later told me he already knew about my speech impediment and hired me as a result of it. He said the fact that I wanted to succeed overrode any “handicap” I had. I believed him, took some sales training (principles I still use today), and started knocking on doors.
Picture the scene: an awkward looking 130 pound kid who can barely communicate is knocking on cold doors trying to get the person inside to purchase an expensive product. Looking back, I must have been laughable.
Today it’s very difficult to tell that I ever had a speech problem. I cannot put my finger on any one thing that was the genesis of my transformation but today I speak frequently and persuasively to all sizes of groups. I own several companies which enjoy incomes in the millions of dollars. I lead a very successful real estate investment club and ran for a seat on our County Commission as well as a run at the State Senate.
The story is not that I had a speech problem. The story is I had a speech problem, so what? The fact is, all of us have a “handicap.” Some handicaps can be seen. But the most destructive handicaps are those that can not be seen – the mental stumbling blocks that lead to mediocrity and failure.
One of the greatest hitters in baseball history is Mickey Mantle. Mickey is remembered as a great home run slugger, but did you know he struck out more than 1,750 times? In addition, he walked to first base more than 1,750 times. In other words, there were more than 3,500 times he went to home plate and didn’t hit the ball. That is the equivalent of seven full seasons he never had a base hit!
Here’s the lesson in the form of a question: If you never get up to bat, how are you going to hit a home run? Furthermore, it’s not the misses that count, it’s the hits. Learn from your misses but focus on your hits.
But, there’s more! Although Hank Aaron broke Babe Ruth’s home run record, the “Babe” still has some interesting stats. One is the best percentage of home runs per ‘at bat.” Every eleventh time Babe Ruth came to the plate he hit a home run. How many of you feel good going 1 for 11? We often think we have to bat 1000. We expect to hit 100 for 100.
If you are a major league baseball player and had a batting average of .300 you would be paid several million dollars each year. Think about that! That’s 30 for 100, or 3 for 10. The fact is, very few professional baseball players enjoy a batting average that high yet you think you have to hit 1,000.
One mindset of the successful is that they have a positive expectancy of success and they are tenacious with their goal setting and planning. I think the important thing to these individuals is the effort they expend and the journey they take. If you never go to bat, or if you never get in the ball game, you will never get a hit.
You have choice. You can live life on purpose, or you can live it by chance. It’s up to you. Get in the batter’s box and strike out a few times. It’s okay. Never fear failure. When I make a mistake (that goes without saying) I increase my awareness and improve my performance. I refuse to relegate my disappointment and failure to the back of the bus and purposefully move them up front where I can deal with them, work out the kinks, make adjustments and get back on track toward success. I turn my mistakes into stepping stones toward my goal. I figure if didn’t make a mistake yesterday, I didn’t learn much.
Success or failure is up to you. If you want to be a success and overcome the invisible handicaps that are detrimental to that success, you need to know that you can do it if you think you can. I overcame a “handicap” that could have stopped a speeding train. You can too.
Here’s how you can do it.
1. Decide what it is you want to do and carve out a niche for yourselfIf you try to be all things to all people the deck is stacked against you. You have to find a unique position for you.
2. Set measurable goals. You need both long term and short term measurable goals. Write these goals out on paper. Until you write them down, they simply do not exist.
3. Define how you will attain those goalsAfter you write down your goals, determine how you will achieve them. Write a step-by-step plan. Create a road map that clearly defines how you are going to reach are your destination.
4. Work your plan. As you do the daily activity it takes to accomplish your goals, focus on the daily activity rather than the goal. I your goal is to purchase one rehab property each month focus on the activity that will result in that one purchase.
5. Make adjustments as needed. You will make mistakes and experience failure from time to time. When this happens, do some soul-searching. Determine where you went wrong and readjust your approach but do not allow yourself to become distracted from achieving your goals.
6. As you work your plan, start thinking about ways to give to othersIf you cannot give away your money, it owns you. If you do not give yourself and your money to others, you will become self-focused and shallow. Contentment will always elude you.
7. Be a mentor to othersThere are millions of people who would like to be where you are. Take one or two along for the ride with you. Teach them what you have learned.
The question you are now faced with is crucial. What are you going to do with this information? Will you be inspired to get in the batter’s box and take a swing? Or, will you sit in the bleachers and play the role of a spectator? It’s up to you. My advise is the swing away. Strike out, make some adjustment, and enjoy the ride. Life can be a thrilling experience. Wouldn’t you like to enjoy it?
Batter up!
Sign up for Don's newsletter at www.RealCashFlow.net. When you do you will also receive Don's latest ebook, "Success Begins With a Dream."
Copyright 2007 by Don Loyd
Saturday, July 28, 2007
How To Thrive In a Slowing Market
Don Loyd, President
Oregon Association of Professional Real Estate Investors
I lead a real estate investment club in which most of the members are relatively new to real estate investing. Until recently, they could purchase anything locally and be assured of a quick profit. They could make bad choices and still look good. Some of those same people are now feeling the pinch of reality as the local market slows to a more normal rate.
Having been in robust markets that have cooled to a recession level (a recession being when they lose money, a depression being when I do), I know there are certain things professional real estate investors can do to prosper in any market. Here are my seven steps:
Have a Plan
The first step is to have a plan. If you don’t have a plan, you are planning to fail – as the saying goes. Having a plan assumes you have clearly defined, written out goals. If you work your plan on a daily basis you will create wealth as you achieve your goals. Included in your plan should be time for business, family and spiritual – don’t forget the spiritual part of the equation. It brings the whole into balance.
Make a Schedule
The second step is to work a schedule. If you want to prosper, make a schedule and keep to it. Plan your day. You want to control events rather than have them control you. Have a fixed time each day for prospecting when you do not take phone calls, a time for appointments and to go real estate closing, etc. You will create more wealth if you discipline yourself to follow this simple second step.
Prioritize Your Activity
The third step is to prioritize. Not all activity on your schedule is of the same importance. Do the most important thing first and work down your list. If you have to find the funds to close a transaction, keep at it until you have it done. Tasks that have less importance can be relegated to an assistant. My assistant relives me of so much work it is unbelievable.
Work Only With Motivated Sellers and Qualified Buyers
The fourth step is to only spend time talking to motivated sellers and qualify all your prospects. It is a waste of time to talk to sellers who are really not motivated. In the inflated equity of our local market many have put their houses up for sale just to see what will happen hoping to get lucky. If a seller is not motivated the results can be discouraging and a waste or your time.
Don’t waste the buyer’s time either. It is fairly easy to determine if a buyer is serious or just dreaming. It is okay to have them dream on your time as long as you are secure knowing that you can help them achieve the dream.
Education
The fifth step is to take time each day to further your education. Learn different techniques that will make you a better buyer, seller, negotiator, entrepreneur, closer, or will bring you current with various markets and trends. I spend the first hour of each morning increasing my real estate knowledge. At the gym each morning you will find me reading another book on an investment related subject while doing my cardio.
Attitude
The sixth step involves having a right kind of attitude. The fact is, bad things will happen during the day. The question becomes, will it control you, or will you deal with the bad stuff and make something good out of it? All of us face circumstances we were not planning. What helps make one successful is how he or she handles the unexpected. I embrace the philosophy that says there is good in all situations – you just have to look for it. If a deal turns into a lemon I will try to make lemonade with it, sell it, and create wealth.
Plan to Give
The seventh step involves an idea that has been relegated to the rear of the philosophical bus. Most books and articles that tell us how to be successful are focused on “me.” They are all about what I want, when I want it. I think that is dead wrong. If you want to truly enjoy success you must first learn how to give away your wealth to others.
The principle of reciprocity is very real. The more you give, the more you get. I suggest that you learn to give away at least ten percent of whatever you earn. If you cannot do that, your wealth owns you rather than you owning it. You can give to a charitable cause (you may even want to start one), educational foundations, mission projects – the list is endless - just give it with the thought of not receiving anything in return.
The result will be a satisfying, rich life. I give to others to enrich their lives. I not only share my wealth but also my time. For example, I donate Fridays to helping budding real estate investors. Learn to give and you'll be amazed at the results.
You can survive and even thrive in a slowing market. You just have to work smarter and plan for your success. Follow these seven steps and you will do well.
Sign up for Don's newsletter and for a limited time download his new ebook, Success Begins With a Dream. Go to http://www.realcashflow.net/ and sign up today.
Copyright 2007 by Don Loyd
Oregon Association of Professional Real Estate Investors
I lead a real estate investment club in which most of the members are relatively new to real estate investing. Until recently, they could purchase anything locally and be assured of a quick profit. They could make bad choices and still look good. Some of those same people are now feeling the pinch of reality as the local market slows to a more normal rate.
Having been in robust markets that have cooled to a recession level (a recession being when they lose money, a depression being when I do), I know there are certain things professional real estate investors can do to prosper in any market. Here are my seven steps:
Have a Plan
The first step is to have a plan. If you don’t have a plan, you are planning to fail – as the saying goes. Having a plan assumes you have clearly defined, written out goals. If you work your plan on a daily basis you will create wealth as you achieve your goals. Included in your plan should be time for business, family and spiritual – don’t forget the spiritual part of the equation. It brings the whole into balance.
Make a Schedule
The second step is to work a schedule. If you want to prosper, make a schedule and keep to it. Plan your day. You want to control events rather than have them control you. Have a fixed time each day for prospecting when you do not take phone calls, a time for appointments and to go real estate closing, etc. You will create more wealth if you discipline yourself to follow this simple second step.
Prioritize Your Activity
The third step is to prioritize. Not all activity on your schedule is of the same importance. Do the most important thing first and work down your list. If you have to find the funds to close a transaction, keep at it until you have it done. Tasks that have less importance can be relegated to an assistant. My assistant relives me of so much work it is unbelievable.
Work Only With Motivated Sellers and Qualified Buyers
The fourth step is to only spend time talking to motivated sellers and qualify all your prospects. It is a waste of time to talk to sellers who are really not motivated. In the inflated equity of our local market many have put their houses up for sale just to see what will happen hoping to get lucky. If a seller is not motivated the results can be discouraging and a waste or your time.
Don’t waste the buyer’s time either. It is fairly easy to determine if a buyer is serious or just dreaming. It is okay to have them dream on your time as long as you are secure knowing that you can help them achieve the dream.
Education
The fifth step is to take time each day to further your education. Learn different techniques that will make you a better buyer, seller, negotiator, entrepreneur, closer, or will bring you current with various markets and trends. I spend the first hour of each morning increasing my real estate knowledge. At the gym each morning you will find me reading another book on an investment related subject while doing my cardio.
Attitude
The sixth step involves having a right kind of attitude. The fact is, bad things will happen during the day. The question becomes, will it control you, or will you deal with the bad stuff and make something good out of it? All of us face circumstances we were not planning. What helps make one successful is how he or she handles the unexpected. I embrace the philosophy that says there is good in all situations – you just have to look for it. If a deal turns into a lemon I will try to make lemonade with it, sell it, and create wealth.
Plan to Give
The seventh step involves an idea that has been relegated to the rear of the philosophical bus. Most books and articles that tell us how to be successful are focused on “me.” They are all about what I want, when I want it. I think that is dead wrong. If you want to truly enjoy success you must first learn how to give away your wealth to others.
The principle of reciprocity is very real. The more you give, the more you get. I suggest that you learn to give away at least ten percent of whatever you earn. If you cannot do that, your wealth owns you rather than you owning it. You can give to a charitable cause (you may even want to start one), educational foundations, mission projects – the list is endless - just give it with the thought of not receiving anything in return.
The result will be a satisfying, rich life. I give to others to enrich their lives. I not only share my wealth but also my time. For example, I donate Fridays to helping budding real estate investors. Learn to give and you'll be amazed at the results.
You can survive and even thrive in a slowing market. You just have to work smarter and plan for your success. Follow these seven steps and you will do well.
Sign up for Don's newsletter and for a limited time download his new ebook, Success Begins With a Dream. Go to http://www.realcashflow.net/ and sign up today.
Copyright 2007 by Don Loyd
Thursday, July 19, 2007
How To Thrive In A Slowing Market - Don Loyd
I lead a real estate investment club in which most of the members are relatively new to real estate investing. Until recently, they could purchase anything locally and be assured of a quick profit. They could make bad choices and still look good. Some of those same people are now feeling the pinch of reality as the local market slows to a more normal rate.
Having been in robust markets that have cooled to a recession level (a recession being when they lose money, a depression being when I do), I know there are certain things professional real estate investors can do to prosper in any market. Here are my seven steps:
Have a Plan
The first step is to have a plan. If you don’t have a plan, you are planning to fail – as the saying goes. Having a plan assumes you have clearly defined, written out goals. If you work your plan on a daily basis you will create wealth as you achieve your goals. Included in your plan should be time for business, family and spiritual – don’t forget the spiritual part of the equation. It brings the whole into balance.
Make a Schedule
The second step is to work a schedule. If you want to prosper, make a schedule and keep to it. Plan your day. You want to control events rather than have them control you. Have a fixed time each day for prospecting when you do not take phone calls, a time for appointments and to go real estate closing, etc. You will create more wealth if you discipline yourself to follow this simple second step.
Prioritize Your Activity
The third step is to prioritize. Not all activity on your schedule is of the same importance. Do the most important thing first and work down your list. If you have to find the funds to close a transaction, keep at it until you have it done. Tasks that have less importance can be relegated to an assistant. My assistant relives me of so much work it is unbelievable.
Work Only With Motivated Sellers and Qualified Buyers
The fourth step is to only spend time talking to motivated sellers and qualify all your prospects. It is a waste of time to talk to sellers who are really not motivated. In the inflated equity of our local market many have put their houses up for sale just to see what will happen hoping to get lucky. If a seller is not motivated the results can be discouraging and a waste or your time.
Don’t waste the buyer’s time either. It is fairly easy to determine if a buyer is serious or just dreaming. It is okay to have them dream on your time as long as you are secure knowing that you can help them achieve the dream.
Education
The fifth step is to take time each day to further your education. Learn different techniques that will make you a better buyer, seller, negotiator, entrepreneur, closer, or will bring you current with various markets and trends. I spend the first hour of each morning increasing my real estate knowledge. At the gym each morning you will find me reading another book on an investment related subject while doing my cardio.
Attitude
The sixth step involves having a right kind of attitude. The fact is, bad things will happen during the day. The question becomes, will it control you, or will you deal with the bad stuff and make something good out of it?
All of us face circumstances we were not planning. What helps make one successful is how he or she handles the unexpected. I embrace the philosophy that says there is good in all situations – you just have to look for it. If a deal turns into a lemon I will try to make lemonade with it, sell it, and create wealth.
Plan to Give
The seventh step involves an idea that has been relegated to the rear of the philosophical bus. Most books and articles that tell us how to be successful are focused on “me.” They are all about what I want, when I want it. I think that is dead wrong. If you want to truly enjoy success you must first learn how to give away your wealth to others.
The principle of reciprocity is very real. The more you give, the more you get. I suggest that you learn to give away at least ten percent of whatever you earn. If you cannot do that, your wealth owns you rather than you owning it. You can give to a charitable cause (you may even want to start one), educational foundations, mission projects – the list is endless - just give it with the thought of not receiving anything in return.
The result will be a satisfying, rich life. I give to others to enrich their lives. I not only share my wealth but also my time. For example, I donate Fridays to helping budding real estate investors. Learn to give and you'll be amazed at the results.
You can survive and even thrive in a slowing market. You just have to work smarter and plan for your success. Follow these seven steps and you will do well.
Having been in robust markets that have cooled to a recession level (a recession being when they lose money, a depression being when I do), I know there are certain things professional real estate investors can do to prosper in any market. Here are my seven steps:
Have a Plan
The first step is to have a plan. If you don’t have a plan, you are planning to fail – as the saying goes. Having a plan assumes you have clearly defined, written out goals. If you work your plan on a daily basis you will create wealth as you achieve your goals. Included in your plan should be time for business, family and spiritual – don’t forget the spiritual part of the equation. It brings the whole into balance.
Make a Schedule
The second step is to work a schedule. If you want to prosper, make a schedule and keep to it. Plan your day. You want to control events rather than have them control you. Have a fixed time each day for prospecting when you do not take phone calls, a time for appointments and to go real estate closing, etc. You will create more wealth if you discipline yourself to follow this simple second step.
Prioritize Your Activity
The third step is to prioritize. Not all activity on your schedule is of the same importance. Do the most important thing first and work down your list. If you have to find the funds to close a transaction, keep at it until you have it done. Tasks that have less importance can be relegated to an assistant. My assistant relives me of so much work it is unbelievable.
Work Only With Motivated Sellers and Qualified Buyers
The fourth step is to only spend time talking to motivated sellers and qualify all your prospects. It is a waste of time to talk to sellers who are really not motivated. In the inflated equity of our local market many have put their houses up for sale just to see what will happen hoping to get lucky. If a seller is not motivated the results can be discouraging and a waste or your time.
Don’t waste the buyer’s time either. It is fairly easy to determine if a buyer is serious or just dreaming. It is okay to have them dream on your time as long as you are secure knowing that you can help them achieve the dream.
Education
The fifth step is to take time each day to further your education. Learn different techniques that will make you a better buyer, seller, negotiator, entrepreneur, closer, or will bring you current with various markets and trends. I spend the first hour of each morning increasing my real estate knowledge. At the gym each morning you will find me reading another book on an investment related subject while doing my cardio.
Attitude
The sixth step involves having a right kind of attitude. The fact is, bad things will happen during the day. The question becomes, will it control you, or will you deal with the bad stuff and make something good out of it?
All of us face circumstances we were not planning. What helps make one successful is how he or she handles the unexpected. I embrace the philosophy that says there is good in all situations – you just have to look for it. If a deal turns into a lemon I will try to make lemonade with it, sell it, and create wealth.
Plan to Give
The seventh step involves an idea that has been relegated to the rear of the philosophical bus. Most books and articles that tell us how to be successful are focused on “me.” They are all about what I want, when I want it. I think that is dead wrong. If you want to truly enjoy success you must first learn how to give away your wealth to others.
The principle of reciprocity is very real. The more you give, the more you get. I suggest that you learn to give away at least ten percent of whatever you earn. If you cannot do that, your wealth owns you rather than you owning it. You can give to a charitable cause (you may even want to start one), educational foundations, mission projects – the list is endless - just give it with the thought of not receiving anything in return.
The result will be a satisfying, rich life. I give to others to enrich their lives. I not only share my wealth but also my time. For example, I donate Fridays to helping budding real estate investors. Learn to give and you'll be amazed at the results.
You can survive and even thrive in a slowing market. You just have to work smarter and plan for your success. Follow these seven steps and you will do well.
Sunday, July 15, 2007
Improve Your Credit Rating - Improve Your Options
There are many real estate gurus who tell us we don’t need good credit to make millions of dollars in the real estate market. While that is certainly true, and I have shown many investors how that can be done, you can make much more with good credit.
Poor credit is a weight around your neck that can kill many good deals. It limits the alternatives and options you have when the money market dries up. Besides, it is a reflection of your character. A person who isn’t faithful paying their monthly bills is a person whose word is not very believable.
The person with “challenged” credit, as we generously sometimes say, has a flashing neon sign on his back that declares: “I know I promised to pay, and I had good intentions, but I decided to buy a new car and take my wife to dinner instead.”
Here’s what I suggest:
1. Run a credit report and make a list of your debts. This will identify who you have to pay and when you should pay.
2. Don’t roll your debt into a credit card and then another. While this may seem like the answer to your problem, you are only creating a larger monster to deal with later.
3. Prioritize your credit list. My wife and I, when we were facing some very serious financial problems, had to work really hard to get back to square one. Following are the steps we took:
a. We listed our creditors and chose to pay off the ones with the least amount of balance while making minimum payments to the others.
b. When the first debt was paid off we took the amount we were paying and applied it to the next one on the list.
c. We repeated the process until we were paying large amounts each month to the final credit card.
d. We changed our lifestyle. We rarely ate out, we drove used cars and took low cost family vacations only if we could do it without using our credit card. My wife shopped for bargains and clipped vendor coupons. It was difficult but well worth it to get back on our feet.
4. Use credit card sparingly, keep low balances and pay on time. Some writers advise us to destroy our credit cards once they are paid in full. I think it’s better to keep them and use them carefully to show the credit reporting agencies that you use credit wisely. In that way you can rebuild your credit rating - making available more options to fund your real estate purchases.
5. Establish a realistic monthly budget and stick to it. It’s the only way to get out of debt and rehabilitate your credit.
6. Be extremely careful with the equity in your home. You don’t want to draw out your equity and pay off your debt if you’ve not cured the problem. I’ve seen many people get into debt, refinance their home (or get a Home Equity Line of Credit), and spend their equity while not addressing the real issue of uncontrollable spending.
7. There are many resources available to help you overcome your indebtedness so use them. Someone has said, “the more you learn, the more you earn.” That is true with regard to building a good credit rating.
Use these basic steps to start immediately paying down your debts. You will have many more nights of sound sleep knowing that the phone is not going to ring with a collector at the other end wanting his money. As a bonus, you will be able to get more real estate under contract, and closed, as more avenues of finance open for you based on a strong credit rating.
Don is the President of the Oregon Association of Professional Real Estate Investors. You can meet him at http://www.oaprei.com/ or www.RealCashFlow.net. While there be sure to sign up for Don's newsletter.
Copyright 2007 by Don Loyd
Poor credit is a weight around your neck that can kill many good deals. It limits the alternatives and options you have when the money market dries up. Besides, it is a reflection of your character. A person who isn’t faithful paying their monthly bills is a person whose word is not very believable.
The person with “challenged” credit, as we generously sometimes say, has a flashing neon sign on his back that declares: “I know I promised to pay, and I had good intentions, but I decided to buy a new car and take my wife to dinner instead.”
Here’s what I suggest:
1. Run a credit report and make a list of your debts. This will identify who you have to pay and when you should pay.
2. Don’t roll your debt into a credit card and then another. While this may seem like the answer to your problem, you are only creating a larger monster to deal with later.
3. Prioritize your credit list. My wife and I, when we were facing some very serious financial problems, had to work really hard to get back to square one. Following are the steps we took:
a. We listed our creditors and chose to pay off the ones with the least amount of balance while making minimum payments to the others.
b. When the first debt was paid off we took the amount we were paying and applied it to the next one on the list.
c. We repeated the process until we were paying large amounts each month to the final credit card.
d. We changed our lifestyle. We rarely ate out, we drove used cars and took low cost family vacations only if we could do it without using our credit card. My wife shopped for bargains and clipped vendor coupons. It was difficult but well worth it to get back on our feet.
4. Use credit card sparingly, keep low balances and pay on time. Some writers advise us to destroy our credit cards once they are paid in full. I think it’s better to keep them and use them carefully to show the credit reporting agencies that you use credit wisely. In that way you can rebuild your credit rating - making available more options to fund your real estate purchases.
5. Establish a realistic monthly budget and stick to it. It’s the only way to get out of debt and rehabilitate your credit.
6. Be extremely careful with the equity in your home. You don’t want to draw out your equity and pay off your debt if you’ve not cured the problem. I’ve seen many people get into debt, refinance their home (or get a Home Equity Line of Credit), and spend their equity while not addressing the real issue of uncontrollable spending.
7. There are many resources available to help you overcome your indebtedness so use them. Someone has said, “the more you learn, the more you earn.” That is true with regard to building a good credit rating.
Use these basic steps to start immediately paying down your debts. You will have many more nights of sound sleep knowing that the phone is not going to ring with a collector at the other end wanting his money. As a bonus, you will be able to get more real estate under contract, and closed, as more avenues of finance open for you based on a strong credit rating.
Don is the President of the Oregon Association of Professional Real Estate Investors. You can meet him at http://www.oaprei.com/ or www.RealCashFlow.net. While there be sure to sign up for Don's newsletter.
Copyright 2007 by Don Loyd
Friday, July 6, 2007
Hello Everyone!
Welcome to my new BLOG!
It was good to have all of you at today's Investment Meeting - I hope you learned a few things. As I mentioned at today's meeting, I hope you will help spread the word about my 3 Workshops coming up next week. Please tell your friends about it and have them get their FREE Tickets at www.PlanningForMySuccess.com I look forward to seeing you there!
Make it GREAT day!
Don Loyd
Welcome to my new BLOG!
It was good to have all of you at today's Investment Meeting - I hope you learned a few things. As I mentioned at today's meeting, I hope you will help spread the word about my 3 Workshops coming up next week. Please tell your friends about it and have them get their FREE Tickets at www.PlanningForMySuccess.com I look forward to seeing you there!
Make it GREAT day!
Don Loyd
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