by Donald J. Trump

So much of the nation is so dependent on gas that there’s certainly been a collective sigh of relief over the past few weeks as the price at the pump has slowly started slipping. The last I read, the national average price for a gallon of gas was around $3.80. Less than a dozen states had prices hovering at more than $4 a gallon.

A year ago, those figures would’ve seemed astronomical, but today, we’re hopeful that this is a sign of good things. Reports are that worldwide demand for petroleum products is finally slowing down so, as you learned in economics class, it’s a lesson in supply and demand. Finally, in this case, the consumers are benefiting.

Of course, although this is good news, it’s just relative. Today’s gas prices are still more than $1 higher than they were this time last year. But take it for what it’s worth. At best, a sign of a slowly recovering economy. If not that extreme, at least it’s the sign that people have learned to conserve energy. They’re carpooling and telecommuting and driving more fuel-efficient cars so in the end because the demand’s not as high, the price is not as high.

All signs point to prices to keep slowly dropping, at least for the time being. I don’t think we’ll ever get back down to the gas prices we had enjoyed and expected for so long, but there’s no way we’re going to become accustomed to these ridiculous costs.

Let’s hope at least one little part of the economy is starting to recover.

by Brett Carman

Statistics show that at least one landlord in five are now doing so out of necessity rather than by planned and conscious choice. These people did not purchase their properties with the intent to lease them out...it just sort of happened. 

For instance, my friend Dave and wife, Delores in Dallas had a home built in the suburbs by a new home builder about two years ago and moved in. They added all the fancy upgrades such as a media room, hardwood floors, etc. The home turned out beautifully and almost simultaneously, Delores sought and attained a great job in the Houston area at the same time the mortgage/housing markets began to show major signs of trouble. With having minimal equity and being overly upgraded, they decided to wait on trying to sell as they would assuredly lose significant money in doing so. So Dave and Delores put the house up for lease and began reviewing the many applications they were getting. Although Dave is in the business of real estate sales, he is not only out of town, but he is unsure of how to manage a rental property as well.

Dave and Delores are now “accidental investors” and there are thousands of others just like them. These new landlords are being asked to understand how to analyze prospective tenants, prepare leases, know their’s and their tenants rights when it comes to repairs, collections, and unfortunately, evictions. If you or someone you know has become an accidental investor, it’s important to make sure you brush up on your contract law and tenant’s rights laws in your state so you can be prepared to operate efficiently should the need arise for you to take action. Taking a property management course like the one offered at Trump U can give you a broad base of knowledge from which to draw should you convert from happy homeowner to shrewd landlord. Proper asset insurance and marketing will be key to get new tenants in and keep them as long as you need them.

by Brett Carman

We have all heard the terms hard money and private equity... but do you know what those are and how to get your hands on capital when you need it? Although they get a high rate of return, they are sometimes the only way to get your prospective deal financed. They are in a risky business and are handsomely compensated as a reward.

For instance, if you wanted to buy an apartment complex or retail center and the bank wanted you to have 25% down as an equity position, you could seek out a private equity partner to come up with any cash you were lacking and in some cases, ALL of the cash if the deal is strong enough. The kind of return that these specialty type of lenders want can vary greatly so once you have secured the property with a contract, feel free to shop around. It can be a cut-throat business so be sure to have the property “tied-up” in contract before submitting your package to the lenders or else you may find that you mysteriously lose out to another buyer. Include in your package, among other things, an attorney prepared non-disclosure and non-circumvent agreement to give a little more professionalism and a small layer of protection.

When building your investor package you will need to have current financials on yourself, your credentials (resume), pro-forma on the subject property outlining current revenues and expenses (get this from seller), and a detailed vision of how you will improve upon the current concept in place. Do these things and let the hard-money and equity guys compete for your deal. If it’s truly a good deal, you’ll know it!

Anyone who has had experience with these types, please post your story!

by Donald J. Trump

You’re probably wondering what I’m talking about when you see that headline. But I’m talking about what’s happening today, now, in the U.S. I say that times are good because there are still plenty of opportunities out there. In fact I’m a little tired of the negative cloud we seem to be under these days.

Difficult doesn’t necessarily mean negative. Challenging doesn’t have to be negative either. There are ups and downs in every aspect of life and business, and as someone who has survived some major financial upheavals and losses, I think I have some insights to share with you about this.

First of all, things usually manage to even themselves out. Real estate is known for having ‘bubbles’, good markets, bad markets, ups, downs, you name it. But many people, including myself, have endured these cycles and still managed to make a lot of money.

What’s the key? Looking for the upside. Looking for the opportunities that are out there no matter what’s going on.

It’s a fact that when I first entered the real estate business in New York City, the market was terrible. Everyone told me it was the wrong time to get started. Know what? I wanted to go into real estate then and so I did, and look what’s happened.  But if I’d listened to those people back in the 1970’s when times were ‘terrible’ I wouldn’t be where I am today. One of my detractors back then, a big New York real estate guy, actually told a friend of mine that “Trump has a great line of s--t, but where are the bricks and mortar?” My answer today is that I am now much bigger in real estate than the other guy. To me, it was a time of great opportunity.

So that’s why I’m saying that times are good. Look at it that way and I’ll bet you’ll find a way to not only survive, but to make a difference.

by Donald J. Trump

How happy are you? Not as happy as if you were living in Denmark, apparently.

Denmark is the world’s most content nation, according to a recent study on global well-being. Surprisingly, I think, the United States is way down the happiness list at the Number 16 spot. Researchers at the University of Michigan said Denmark earned the top spot thanks to economic prosperity, stability and democracy.

"I strongly suspect there is a strong correlation between peace and happiness," said Ronald Inglehart, a political scientist at the University of Michigan's Institute for Social Research. "There is also a correlation between democracy and peace. Democracies are less likely to fight each other than non-democracies."

At least the good news is that despite the economy, the housing and credit crises and rising fuel and food prices, we’re all supposedly getting happier. Researchers said that compared to a similar study conducted two decades ago, respondents were much happier. 

TOP 10 HAPPIEST COUNTRIES

1. Denmark
2. Puerto Rico
3. Colombia
4. Iceland
5. N. Ireland
6. Republic of Ireland
7. Switzerland
8. Netherlands
9. Canada
10. Austria

10 MOST MISERABLE COUNTRIES

1. Zimbabwe
2. Armenia
3. Moldova
4. Belarus
5. Ukraine
6. Albania
7. Iraq
8. Bulgaria
9. Georgia
10. Russia

by Donald J. Trump

I love the Olympics. It’s amazing to watch the world’s greatest athletes all take the same playing field together.

Like so many time before, these Beijing Olympics have been wrought with controversy. Many people feel that President Bush should not have agreed to attend the opening ceremonies. They think that boycotting the event would’ve shown his concern about China’s horrid human rights’ record. But he said not attending would’ve been an affront to the Chinese people and he felt no need to connect the athletic event and politics.

Both Barack Obama and John McCain have echoed the calls of human rights groups, saying they would have boycotted the opening ceremonies had they been in the president’s place.

It’s a difficult position that politics have to play. These young people have worked hard - often most of their lives - for the chance to compete at the Olympics and for them, there’s nothing political about the event at all. They merely want to show their talents on a worldwide platform against incredible athletes.

I wish we could keep it about the athletes and their sports, but I know we can’t. To them, I say congratulations for making it that far. We’re impressed and proud and will be rooting for you. Bring home the gold!

by Brett Carman

Maybe I am a bit biased and am so because I did my homework and researched the pros and cons of the “captive” agencies versus the” independent” ones.   As an independent insurance agent, I feel good about having the ability to shop for the best possible product and price for my clients. I keep the carriers honest by doing the exact same each renewal. As a captive agent, I would have only one basic product available to offer my client and if we weren’t competitive with that particular client’s set of risks, I would have to reject them and send them down the street to a competitor.  I hate to let any “crumbs fall off the table” and want to be able to offer a diverse product mix to be able to serve my clients diverse needs. 

To me it seems to be a philosophical difference between the two: The captive agencies appear to be interested only in building their brand. They spend a lot more on marketing than do the independents while offering a fair priced product for an okay price. You won’t usually or consistently see one of the big named agencies buying the market by delivering the lowest price on insurance.   While it IS ultimately important to properly protect your assets, there is no sense in paying more for A-Rated insurance than you have to. After all, it’s just business and there’s definitely nothing sexy about carrying a particular company’s ID card in your wallet! 

Be sure when setting out to shop for your insurance that you make sure to read what the coverages are and understand what they do and don’t cover. Price alone should not be a determining factor when purchasing a policy.   The reality is that entrepreneurs, real estate investors and every day people all need solid insurance coverage as part of smart asset protection.   Paying more for any specific brand name won’t matter so don’t do it.

by Donald J. Trump

What do you do when you’re on the job and someone insults you - whether it’s your boss or a coworker or even a client? Most people just grin and bear it, even though it can eat them up inside.

It’s no surprise, but a German scientist has proven that people forced to smile and take on-the-job insults suffer long-lasting stress that may harm their health.

In the study of 4,000 people, half were allowed to respond to abuse while the other half had to suck it up. Those people who weren’t allowed to answer back had terrible stress as compared to those workers who were allowed to let their feelings show.

This isn’t brain surgery. If you keep your feelings inside, of course you’re going to be stressed.

But you also have to be smart. You can’t yell at your boss or clients every time you feel insulted. Be as professional as you can at the moment, then take a break when you have a chance and let it out later.

That way you can avoid getting an ulcer as well as losing your job.

by Brett Carman

Think about this...around the country, there are many areas that are experiencing a pricing downturn in home prices. Simultaneously, home loan requirements are on the rise making it more difficult for homebuyers to qualify. Add that to the millions of foreclosures causing families to be displaced looking for more affordable housing. Where are those families going? The answer is simple. They are moving into rental properties that are more in line with what they can now afford to pay. 

This of course spell opportunity for the buy and hold real estate investor looking for long term rental income. Are you hedged in enough positions to weather the storm? I don’t want to use the term “capitalize” because it is such a sensitive subject. I use “hedge” because it is a more accurate description. As an investor, I am buying properties at a discount as a defense against the deflation of my existing housing positions. My “offense” is my best defense. It’s kind of like “dollar cost averaging” with stocks. 

I am also counting on the increase in demand for my properties to help keep my rents high. Since there are so many people needing housing at this time, they only need a clean and functional home and are happy to pay for it. I have been accepting the credit challenged ones, too. I am screening them by working out a budget of their income and expenses to make sure they can afford to pay. And, as long as they haven’t shown a complete disregard for credit, I usually let them sign up with either a single or sometimes double deposit.

Don’t be afraid to join the buy low, sell high club. Once this cycle heads upward, you’ll have a nice real estate portfolio to show for it.

by Brett Carman

My last blog about real estate mentoring was aimed at challenging readers to reach out and mentor others. Part two is all about reaching up the ladder and seeking mentoring from others who can provide valuable information to help you grow both personally and professionally. Just like in religion, we seek mentoring from our pastors, preachers, rabbis etc. What I am suggesting is to find a real estate mentor of integrity, who has been there, done that, and get them to help you learn what to do and not to do in order to achieve your ultimate goals.   You don’t have to “re-invent the wheel”. Contrary to what you think, you don’t know it all nor were you probably the teacher of the guy who knows it all. It’s okay to seek advice or help with an open mind from others who have succeeded.

On a personal level, if you’re interested in getting in shape, find a personal trainer who can work with your schedule and get in a routine with them. They will lay out the steps for you to have success based on the goals you set for yourself. 

In business, look to see who is doing well at whatever it is you do and volunteer to intern with them. Perhaps hiring on with them is not a bad idea either so you can learn how to operate in a successful system like the one they have. Of course, I am a proponent of entrepreneurial endeavors but if you are not successfully operating your own business and are researching how to start one, look to those who have the systems in place from which to learn. You may find that you can simply invite them to meet for coffee, informally pick their brains about their business and the challenges you are facing, and they will offer advice and mentorship and help identify your skills.

This time I want to challenge you to identify both a personal and professional weakness you have and share with me how you are going to go about finding a mentor to help you improve in those areas.