Tom Karadza & Nick Karadza

Happy Birthday......But Should I Really Celebrate?

This past weekend I celebrated my 30th birthday.  My wife and I arranged a BBQ at my home for our friends and it was a great time.  I love an excuse to get together with family and friends and enjoy each others company.  After all, life really is about relationships isn't it?

Having this birthday and gathering put me into a bit of a reflective mood.  It made me realize something.

We celebrate birthdays like they are an accomplishment, but are they?

Most people view the fact that they have lived another year as something to recognize, no matter the circumstances.  But what if we barely scraped through the year?  Or we sat on the couch and did nothing with the gifts that we have all been given?

Or maybe we got up every morning tired and grumpy, dragged ourselves to work complaining, did barely enough not to lose our job, moaned about traffic on the way home, ate a high calorie dinner, and plopped down in front of the TV for the night.......for a whole year!!  I know I can think of a few people like that.

Is that really something to celebrate?

Not as far as I can tell.

We shouldn't be celebrating the fact that 'we made it' we should celebrate 'what we made' of the last year.  What accomplishments have I completed?  What goals have I achieved?  What have I contributed to my legacy? How have I grown as a person?

It should be the over achieving answers to all those questions that should be celebrated.

I have seen investors just be happy that they purchased an investment property.  But they haven't done anything with it!

They will take time just to bask in the glory of becoming an 'investor'.

I've got news for you, that vacant, run down house you own, it's not much of an investment unless you do something with it.

You have to overcome the hurdles and make something of it.  Money usually being the prime objective.

The work or effort that it takes to make it a success can vary, but that is what should be celebrated.  Once you have taken a journey down the road in which that investment will lead you, and you have overcome some of the potholes and turns, you will be a better person because of it.

And then it's time to celebrate, and make it the best party ever.

Let me clarify one thing.  I do feel that being around for another year is a gift for us all and I am grateful for it.  I also think that anyone that makes an investment should pat themselves on the back as it can hard breaking through the fear barrier.

But let's save the real celebrations for our accomplishments.

On my birthday I was continually congratulated for making it to 30.  That is great but to me the real celebration is around the real estate I acquired, or the book I have co authored (which you can find on Amazon by the way :-) you can click here), or the hundreds of private coaching clients I have helped make hundreds of thousands of dollars.

Now that is a year to remember.  These are achievements worth celebrating.

Before I forget about the investor I spoke of earlier.......He did the work he needed to and turned his property into a great investment, and the celebration followed shortly after.  But the plan for next time is to get to the party sooner.

So make this your year to really party!!

If it is real estate investments you are striving for get out there and do it.  When you look back you will have grown personally and financially because of them.

And the parties will just keep getting bigger and better!

- Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!

Look at People as Dollar Signs Baby!

This might sound a bit harsh, but hear me out.  I promise there is a great lesson here.

But first let me explain why 'Baby' is in the title........OK there is no real reason except I thought it sounded good.  Now that I have come clean let's get to the point.

In business it is important to understand your costs and your return on investment.  I think that is fairly simple.  But it seems that many people just have not clued in yet.

Recently I ran an ad in the local paper by our offices.  This is a company, and ad rep that I have spent tens of thousands of dollars with in under two years.  For the first time since I started working with this company they ran the ad without my final approval.

I am not an overly picky customer so I would have been fine with it EXCEPT they made changes to the ad that I didn't ask for.  So I have now paid for an ad (just over $600) that is not what I had requested, and I wasn't given the final say on the changes.

Now, I have never been in advertising sales but what I can say is that I have placed many ads with a lot of different companies.  And I'll let you guess what the one constant thing is........Right, they all send you a proof before the ad runs to make sure you are happy with it.  I even get this service with a $100 classified ad if I ask.

So I decided to call and mention that I was not sent a final proof of the ad for approval and changes that were not requested were made.  I was not angry but I felt that there should some sort of recourse for such an incident.  Really I thought this would be a small thing that we would get resolved and move forward......it wasn't!

I will keep it short for our purposes but by the end of it I was in contact with the Advertising Director at the paper.  And after a couple of emails to which he did not even acknowledge that they ran an incorrect ad or answer any questions posed to him, he finally called me.  His tone was harsh and condescending but he grudgingly agreed to a 50% refund.  Which works out to about ($300 + tax). 

It sounds good, but the only problem is now I am left with an entire different outlook on the company as a whole, and it persuades me not to do business with them any longer.

Let's look at this because it applies directly to business and real estate investments.

Let's guess that I have only spent $15,000 with this company, and up until this point was happy with everything.  Because of the way I was treated for their mistake, which they did not verbally accept responsibility for, I am now left with a bad taste in my mouth.  All because of the $300 I has asked for.

If handled correctly this could have been the best $300 they ever spent.  If that's what it took to keep me happy and spend another $15,000 that would be a 5000% return on their investment in under two years.  Did you catch that? 5000%

Would you be willing to spend $300 to have a customer with a proven track record that shows that kind of return?

I would everyday of the week, and do it happily.  And so would any other smart business owner.

The problem is that this Advertising Director didn't understand the long term value of customer or the big picture of a business relationship.

I agree, it is sad but true.  Think about the owner of the paper that just lost out on this future revenue, he or she must be thrilled right?  Nope!

How does this apply to real estate investing?.....Good question

The same principle applies.  You should be looking at your potential customer thinking about the return on your money for working with that person.

I have seen negotiations that would make an investor over $20,000 break off over paint that would cost $500.  You can do the math on that one.

This investor wasn't looking at this person as dollars.  If he was and he realized the dollars these poeple represented, he would have, and should have spent it.

In business or investing each person or customer we come in contact with has a value to them.  Our job is to determine the value, and if justified, establish the relationship needed to maximize it.

Investing is a business and as with any other one, it is a heck of a lot easier to keep good existing customers (or tenants) that to find new ones that are good.

That is why I just spent $300 on a new BBQ for some good tenants that I have.  I could have said 'No', it was not my obligation to do it.  But through working with them over the last three years (remember, I am 'working' with them, it is a business) I have realized they are people I want to continue dealing with.

It is becasue I see the dollars in our relationship and because I value them.  And little things like a BBQ help them value me as well.

Oh and by the way, I didn't even flinch at the request I smiled and agreed.

Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!

Quit Being a 'Loser'!

'Are you a winner or are you a loser?' this was the questions posed to me a few weeks back.  It sounds like a fairly simple question right? Let me explain.

I was sitting at a table with Lloyd Irvin who is a master at getting many, many things done, all at once!  We were going over some other topics when he told me how he operates.

Every time he wants to get off track or do something to waste some time in the day he will ask himself 'Are you a winner or are you a loser?' It's a big question. 

Then he will analyze what he was going to do and if he thinks it is a loser task he will move on to something productive.

I don't know about you but I don't wake up in the morning and look in the mirror at a face of a loser.  This line of questioning gets my competitive fire burning.

Throughout the course of the day it is easy to get distracted from the productive tasks, typically those are the ones that are longer and more complicated than the simple ones like answering emails or more likely checking out your favorite time wasting site while at work (Facebook, YouTube, News).

It really breaks down to this.

The key to success is implementation you could have all the knowledge and drive  in the world but if you are not doing anything with it, it is wasted. 

You need to implement.  Most of us get so tied up with useless tasks that we don't ourselves the opportunity to be nearly as productive as possible.

If we look into our habits and what is holding us back it is easy to see most of the time.  Often it is filling our time with the easy, reactive things that come our way.  People wonder how successful people can accomplish so much.  There isn't a big secret that they are hiding, it is their commitment to being productive that sets them apart.

I am wrapping up a week where our office was a ghost town since so many vacation schedules collided.  To make matters worse I was committed to a full time course as well.  But things still had to get done.

I didn't have the luxury of any extra time at all.  I was forced to stay focused and pick the most productive tasks to keep our momentum going. 

Have you ever been in such a situation?  Perhaps the final days before a vacation?  I was forced to fit a full days work (which is not 8 hours when you are running multiple things) into five hours every day.  Split up between early morning and late evening.

It is amazing what you can do when you are forced to.  When you sit down and focus on the tasks of winners.  But if you don't have that fire behind you pressing you forward most people start adding the loser tasks back into their daily routine.

There were many times in the last week that I wanted to take a break, and I had to ask myself if I was a winner or a loser. 

It sounds kinda corny right? I agree!

But what isn't as laughable is the amount of productive tasks that I plowed through day in and day out. So instead of being a loser and sitting back in your chair today, the day before a holiday weekend.  Decide to do something productive.  Make the most of your time.

I can tell you that the successful winners in life are not sitting around surfing the internet aimlessly or checking their email 10 times a day.  You just have to choose to be one of them and, most importantly, act like it!

- Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!

"Fat Dog Don't Hunt"

Nick and I were recently down in Myrtle Beach discussing real estate investments with a great group of people and someone next to me blurted out these words, "Fat Dog Don't Hunt".

For the next few days we've both been blurting it ourselves.  Not sure why but it really sticks.

I wrote about it over at the Income for Life blog, check it out by clicking here.

You'll never look at a fat dog the same again!

- Tom Karadza

p.s. Yes, that's really a cartoon representation of me below, wait until you see Nick's!

The Grass Is Not Always Greener Elsewhere Part 2

Alright let's finish what we started.

We have all looked elsewhere and thought there was more opportunity that we have access to.

But before we get into that let's talk about a little book.  It is called "Acres of Diamonds" by Russell H. Conwell.  This book is only 63 pages but it holds a huge lesson.

I don't want to take anything away from it by summarizing the book but I know very few people will ever read it.  It tells the story of a farmer who is looking for diamonds and travels to many different and far places to find them when he had a whole pile of them in the land he owned at home.

Ouch, I really took away from the book with that summary but I hope you get the point.

We will often overlook the opportunity that we have access to for the next "BIG thing" or fad that is blasted all over the media headlines.

Too many people I speak with will look st the headlines and think that those people have all the luck, or all the opportunity.  This causes them to overlook enormous opportunity in their own backyard.

Or even worse they will credit it to 'luck'. And how lucky those people in that area are because they have access to the opportunity.

It amazes me how many people get caught up in the 'grass is greener over there' syndrome.

I am willing to bet that the large majority of these people, even if they lived where all this "great opportunity" existed would not do a thing with it.  They would complain and moan about something else or not get off their butt to make something happen for themselves.

If you are looking for opportunity and you are someone that is willing to turn that opportunity into results then don't overlook your own backyard.

I know people making money in real estate all over the place, including some of the areas in the US that CNN tells people to never buy a home in.  And you know what.....they are making money!

Opportunity is abundant and if you want to travel to find it that is great.

But don't miss out on the "Acres of Diamonds" in your own backyard.  If you look for them you will find them.  Then other people will look at you and think the grass is greener on your side of the hill.

- Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!