the hospital workers, teachers, police officers, and firefight- ers – all the people we rely on to keep us heathy, educated, and safe. If they want to live anywhere near where they work, they better be prepared to spend half their salary or more on housing. It is up to investors and de- velopers to seek out and take advantage of existing oppor- tunities to finance affordable rental and retail residential housing, and up to municipal and state governments to create more tax incentives, subsidies, and partnership opportunities for investors to leverage to increase the housing inventory in a time when the costs are otherwise just too high. • > Continued from :: PG 47 An Effective, Often-Overlooked Strategy for “Recession-Proof” Investing wrote New York Times reporter Gary Rivlin on the topic in 2014. With the demand for affordable housing constantly growing, investors can make a big difference in their com- munities and their investment returns if they invest in the right mobile home communi- ties. The key is knowing where to look, what to buy, and how to improve the properties once you have them. • > Continued from :: PG 91 Discovery of a Parasite in Life and Business Once you have deter- mined what type of parasite
is “eating up” your business success, you will have to undergo a difficult process to eliminate it. This can be hard, but you must resolve your parasite issue to heal your business and reinitiate growth.
strive to protect the good people who are good for your business, your profits, and your produc- tivity during the time of change. Remem- ber that your new normal will bring with it clarity, harmony, and peace as well as a better business for you, your employees, and your customers. • > Continued from :: PG 97 The Do's and Don'ts of Tenant Interaction Online residents appreciate that convenience and Millennials are far more likely to answer a text verse an email. How- ever, there is a downside you must keep in mind. In your everyday life, you might text family, friends, and coworkers in a casual manner. It is second nature to reply “K,” for example, when you would most likely never send such a short message like that via email. When you are texting tenants, text as if you are emailing. Always address them with professional courtesy (“Hi Mr. Jones”) and conclude with a “Thank you.” Use punctuation and capital letters where they should be. Why is this so important? If you want tenants to take their lease seriously, then you must remain professional
across all facets of commu- nication. Unfortunately, your tenant will probably not always like what you have to say, and you won’t always like what they have to say, ei- ther! We have seen tenants text foul language when upset. When this happens, keep your cool. Remember, anything you write down can be shown to someone else. If you lose your temper and say something
unkind, it could come back to haunt you no matter how much you were pressured into that position. Stay professional and only say something that you are okay with seeing again. At the end of the day, tenant retention is crucial for your success as an in- vestor. Anything you can do to attract and keep tenants is imperative. In today’s society this means utilizing all forms of communica- tion; including texting and social media marketing and messaging. Keep these three tips in mind, and you will be able to grow your business using these tools while maintaining your profes- sional reputation. •
> Continued from :: PG 41 3 Steps to Effective Investing Strategies in a Widening Market difficult to say which selec- tion is made first. It is truly subjective. Location, however, will nearly always be the third decision investors make once they have selected their strat- egy and property type. The question all investors ask themselves once they have answered the first two questions about strategy and property niche is, "Where to invest?" The real question, how- ever, should look more like this: Can you implement your property type and real estate strategy in your area or do you have to go outside your local market? The key to answering the market location question is to get enough information about an area to understand the following three keys of the successful investor model. 1. KNOW VALUES Successful investors know their numbers. They under- stand what good investments look like. The best way to know val- ues is to evaluate comparable investments (comps) and to analyze each investment's cash flow. By looking at similar investments, inves- tors can discern what makes a good investment and what investments to avoid. Investor Takeaway: If you know values, it is infinitely easier to determine whether an investment makes sense or not.
> Continued from :: PG 47 WhyWe will Live with Labor Shortages in 2018 and Beyond obtaining the land and then developing it. That issue is not going away anytime soon. The combination of the cost of land, the cost of development, and the cost of building is not going to abruptly become less expensive later this year, next year, or, to my mind, in the near future. IS THERE A SOLUTION? There may not necessarily be a cut-and-dried solution to the cost of labor and construc- tion in residential real estate. However, there is a solution for real estate investors and developers who wish to build affordably and offer affordable housing options to the resi- dents in their communities. That solution is to seek public-private partnerships to finance projects that will increase affordable housing inventory in the areas of the country that need it most. For example, in one of my main markets and part-time hometown, Nashville, Tennes- see, our constantly expanding workforce often cannot live within the city limits because the housing is so expensive – and this is in the Southeast, which is probably one of the most affordable regions in the country. The salaries of the in- dividuals who make our city a “foodie” destination, a cultural destination, an entertainment icon, do not qualify them to afford housing anywhere near the urban core where they work each day. Same goes for
2. FIND OPPORTUNITIES Once investors are fluent in investment values, their next step is to look for op- portunities. Knowing values allows investors to quickly decide whether an opportu- nity is worth pursuing. The key to finding opportunities is to be good at sourcing. Sourcing is a fancy term that means finding as many opportunities as possible. It is important to have as many sources as possible to com- pare opportunities. Investor Takeaway: By reviewing multiple investment opportunities, investors can make better decisions. 3. MAKE DEALS The final key to invest- ment success is to make deals. Knowing values allows investors to find opportu- nities. But, investors must make deals to actually take advantage of the investment options they find. Making deals is all about evaluating, negotiating, and orches- trating a closing. The best opportunities are only good if an investor can make an investment. If investors know their values, then it is easy to determine whether there are opportunities to implement their real estate strategy in their local market or if they will have to go to another location to make deals. Es- sentially, selecting a market is all about knowing values, finding opportunities, and making deals. Investor Takeaway: Once your strategy and property type are determined, finding a market is simple. •
EXTRACTING THE PARASITE
It can be incredibly hard to let go of a parasite. That sounds strange, but parasites literally worm their way into our bodies and our busi- ness systems, which makes removing them extremely painful. You must fight the infection, extract the para- site, and push through the pain if you want business and personal success. This can mean removing yourself from certain positions in your own company, engaging in some tough hiring and firing, or ruthlessly eliminating distrac- tions from your professional and personal lives. During this process, don’t be afraid to ask for help. I hated the Herxheimer die- off, but I knew if I didn’t go through it, I couldn’t get better. I needed oth- ers to support me through this time and I looked for counsel and guidance. I had to accept that things would never be the same, but they could be better. It took me two years to get back to a normal pace from the time I discovered the parasite, and during that time I had to accept my new normal. In business, extracting par- asites necessitates a journey to a new normal as well. That journey takes time; there is no quick fix, and there will be casualties. Accept this, then
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