Author: John Peterson

Some people know it as “hitting a wall.”  Marathoners know it by another name: “bonking”.

Bonking.  I had never heard of it before. It’s more than just a cramp in your calf, or getting tired half-way through the race.

It’s when your body completely shuts down on multiple levels.  Your legs just don’t want to move and you begin to mentally shut down. You may experience fatigue at such a deep level you start to hallucinate.

Runners can train and practice for months, or even years and still “hit the wall” during a marathon.  Endurance runners understand that the race is more than just “running”.  Your body needs the right type of fuel before the event, and your mind has to be prepared as well.  If both the body and the mind are not in a good place, half-way through the race your body may start bonking, and those little green men in your hallucinations may really frighten you.

Strangely, I see the same thing happen to people in business.  Many people work for 5, 10 or even 20 years, and then they start to fatigue.  Business gets hard.  Times change.  They start to hallucinate and see “little green men” that will ruin their careers.

Sadly – some people give up at this point in their career.

Others keep going.

In 1995 a top athlete named Paula Newby Frazier was running the Iron Man Triathlon in Hawaii and collapsed 400 yards from the finish line.  She could actually be heard saying “I’m going to die”. It terrified most of the people around her.  Moments later, the most beautiful moment of the entire day took place when she got back up and continued.

Paula finished the race.

This “bonking” happened to a world class athlete.  You may not realize that Paula, who fell down 400 yards shy of the finish line, also won 21 of 26 Iron Man Triathlons that she entered.  But on that day in 1995, she was a winner simply because she finished the race.

If you have faced some struggles over the last few years, or even been knocked down in your career or business – you will want to be with us on Monday.

This month at our WREIA meeting, (which is May 21st) we are going to talk about getting started and restarted in 2012.

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Mark Your Calendar for May 21st – The May WREIA Meeting
Getting Started or Restarted In 2012
5 Major Challenges Influencing Today’s Market That Didn’t Exist in 2005

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Times have changed – pretty dramatically –  since 2005.  There are many new challenges that you face in this business, or any business.  If you choose to quit when you hit small bumps in the road, you simply will not make it to your finish line. Paula Newby Frazier didn’t quit in 1995.  She was 400 yards from the finish line. She simply had to finish.

No matter where you are in your career Monday night we will shed some light on major challenges influencing today’s market.  If you have yet to do your first deal you will want to join us.  More importantly, if you are making 300k or more in this business –  you will definitely want to join us.

Get ready for Monday night.  We are working hard to give you the skills, tools, and access to the people you need to avoid mistakes and be successful.

If I can help you, let me know.

John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S. In this video I posted a few more details about Monday night.

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Register early for the May 21st WREIA meeting here, and skip the registration line!

You will also find the registration link at  http://wreia-may2012-wreia.eventbrite.com

Never Eat Alone: And Other Secrets to Success, One Relationship at a TimeWe will be distributing our new WREIA Book Club book tonight at our April Meeting.

If you are a WREIA member, you can pick up your copy tonight.

Pure and simple – “Never Eat Alone” is a fantastic book.

In the first pages, there are countless examples of how the successful build the professional networks that help them reach their goals.

Just a few paragraphs into Chapter Two – one statement jumped out at me and vividly describes where we are in this economy.

“Today, we need each other more than ever.”

My business was built with the help of many people. Early on, Ernie Kessler was instrumental in building my business. Today, I still have mentors that give advise and help me sort through issues my company faces each day. Without these friends, my business would not have made it through the last few years.

Times are changing rapidly. This time of change requires you to reach out to other people, and not be afraid to seek advice and help when you need to. Once you start to do this the right way, you will agree – Today, we really do need each other more than ever.

Join us tonight at WREIA and pick up your copy of “Never Eat Alone”. Get there a few minutes early and spend some time saying hello to old friends and meeting new people. You may be able to help them, or they may be able to help you.

See you tonight!

John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S. Register online to avoid the line that sometimes builds at the door. You will find the registration link at http://wreia-april2012-wreia.eventbrite.com .

Find video updates on the Profitable Property Channel at
http://www.youtube.com/ProfitableProperty

I enjoy watching 60 Minutes, and a comment stood out during last nights piece about the various European recessions.

If you missed it last night you can watch the video below, or read the interview here.

There are very big concerns for the United States recovery, if Europe is unable to get their various economies moving again.

Getting various countries economies going again is a big undertaking. 10 European countries are in a recession, and some countries like Spain have 23 percent unemployment. This organized effort is even more challenging when – at one time or another – many of these countries have been at war with each over the last 1,000 years or more.

One comment by a London financial analyst kept my attention – “….if it’s uncharted waters, then that makes a lot of people very nervous. ”

Why did it keep my attention? Because when I hear statements like that, I know someone is making a profit. When people get confused, or scared, there is opportunity. Some people take advantage of the situation, and can harm companies or people even more, while others see an opportunity to help.

That is exactly the case with Bankruptcy here in Maryland, DC and Virginia. It’s fairly easy for you to find people or companies in various stages of bankruptcy, and from there, you have a choice.

Do you want to help a company or person, or will you look into the situation just for your own personal gain? Entire industries exist on both sides. Some “vulture funds” exist just to carve up companies and sell the pieces. Other companies exist that are “turnaround” specialists and they help companies become profitable again.

We are going to be talking about Bankruptcy at our Washington REIA meeting next Monday.

Think about the content in the video above. We will use some of the comments in the video as a backdrop for our conversation Monday night. The issues happening on a global scale are also taking place on a local level right in our backyard. When we finish Monday night, you will have the opportunity to be a “vulture” in some cases, or you can help people move on and get a fresh start.

The 60 Minutes segment makes the motto of the Maryland Districts Bankruptcy Court even more relevant to Monday night and our discussion at WREIA – “To promote social and economic order by reconciling the opportunity of debtors to a fresh start with the right of creditors to be paid.”

Steven Covey has sold over 10 million copies of his classic book “The Seven Habits of Highly Effective People”.

The second habit of highly effective people is to “Begin with the end in mind.”  In other words, you should know where you are going to finish.

When you buy a property, and plan to renovate it, are you disciplined in your approach?  Or do you spend a few minutes looking for the lowest price home in a community, make an offer and hope for the best?

Today, there are stories everywhere about people who have had it rough over the last few years.   Bud Matthews in North Carolina has been asking Suntrust bank to stop the foreclosure on his business headquarters building for months.  He has not missed a payment in over 10 years, but Suntrust Bank has called his loan.

Bud Matthews decided to fight back and has now hired an attorney to help keep his business going.  If you attended WREIA last month, you heard some other similar stories here in the DC area.  To read the rest of Bud Matthews story visit http://www.newsobserver.com/2012/03/11/1919843/entrepreneurs-scramble-as-banks.html

We want you to understand where you are going with your real estate business.  Most of us who attend WREIA each month either have, or have the desire to buy, renovate and sell a home.

When you finish the hard work of renovating the property, who will buy the home?  How will they finance the property?  How much is their down payment?  How much will YOU make as a profit for you hard work?

If you know the answer to these questions – FROM THE BEGINNING – you will have a much higher level of success in this business.

For instance – let’t talk about the note business for a moment.  Specifically, the commercial non-performing note business.  Following is a brief piece from MarketWatch.

“According to the latest Ernst & Young US nonperforming loan (NPL) survey, At the crossroads: Ernst & Young 2012 real estate nonperforming loan investor survey, investors could also see more opportunities to acquire commercial real estate debt instruments in the year ahead. Despite improvements in bank earnings and declining loan loss reserves, the sheer volume of US commercial real estate loans maturing in the next five years — estimated to be close to US$ 1 trillion — could put pressure on US banks to step up their efforts to strategically sell some of the more than US$100 billion in NPLs, currently on their books.”  You can find the article in it’s entirety at http://www.marketwatch.com/story/ernst-young-investors-eye-four-more-years-of-distressed-real-estate-debt-opportunities-2012-03-12

The numbers boggle my mind.  $1 TRILLION in commercial real estate loans will be maturing in the next 5 years.  And already, there are $100 Billion  in non-performing loans.

Could you work with a small bank and purchase (at a discount) a few small commercial loans?  Could you re-structure those loans and keep another small business afloat, like Bud Matthews we talked about above?

This month at Washington REIA we are going to have a few people who work on the front lines of the residential home financing business. They originate loans for retail homeowners and for investors.  Join us for one night and learn where the business is, and who you should be targeting in the retail market. The loan market is still a challenge, but when you have the right mix of properties, home-buyers and price, business is getting done.

Begin with the end in mind.   Know who will purchase your renovated home. Know how they will finance it.  Most importantly, know how much their down payment will be.  Very few deals are going to a closing table without the right mix of these “ingredients”.

In The Seven Habits of Highly Effective People “Begin with the end in mind” is habit #2.

Habit #1 is “Be Proactive”.  Register now at http://mar2012-wreia-ws.eventbrite.com and join us on Monday at WREIA. Learn where the financing business is headed, and learn first hand where retail homes are being sold.

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And as always, let me know how I can help with your real estate investing here in the DC area.

See you on March 19th,

John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

Find video updates on the Profitable Property Channel at
http://www.youtube.com/ProfitableProperty

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Register early for the March 19th WREIA meeting online, and skip the registration line!

You will also find the registration link at http://mar2012-wreia-ws.eventbrite.com