Job Searching in the Age of Social Networking

Matt, a friend of mine contacted me a few days ago.  He knows I used to prepare résumés for folks.  He was starting a job search and needed some help. 

Some time ago I pretty much shelved that whole business of preparing individual résumés because I was way too busy doing other things.  But, when I looked at his résumé I realized I could craft him a new one faster than I could tell him how to fix the modest problems his had.

After I did that, I sent it off to him in an email and added some advice.

I thought that others who are looking for a job right now might be able to benefit from what I told Matt, so here it is:

    Make sure you print this resume and the references sheet (when you provide it) on 20 or 24 pound bond paper, preferably light cream colored.  No other color on the page (no flecks, etc.).  Don’t use white, because it will disappear amid other white papers on a desk.

    Always send a hard copy to those who you send an electronic copy and use envelopes that match the resume paper.  Address the envelope neatly in blue ink by hand.  Always send a cover letter with your resume, whether you send it electronically or in hard copy.

    Your cover letter should NOT be hand-written.  It should address the recipient by name and title.  Refer to the job you are applying for and where you found the job lead (or who referred you).  Briefly point out skills you have displayed in your resume that match some of those in the job listing.  Mention any relevant skills or experiences that may not be evident in your resume.  Conclude with a positive statement such as “I look forward to meeting with you in person to discuss my qualifications for this position and how I can add to the reputation for high performance you and your team have earned within our company.  After you finish reviewing my resume, please call me right away at sss-sss-ssss so we can arrange an appointment to meet.”

    Sign the cover letter in blue ink.

    Include a postscript that says:  “PS:  If you would like to read additional information about me please feel free to view my professional profile on LinkedIn.com or you can see my personal side through my Facebook Profile at XXXXXX 


    Trust me on this, they will look whether you invite them or not.  That is why your online presence needs to be managed.  If you have anything embarrassing to you on your FB page, get rid of it NOW! Matt is working in Operations Management and although he is just starting out, he wants to make a career in that field.  Because of that, the next day, I sent him this as a followup…

    I see that you have already created a linkedin profile and started working it.  If you want to build your brand as an Operations Management Expert, I suggest you do a couple of things:

1)      Join some interest groups in linkedin or other places related to this topic as well as subscribing to publications that cater to this profession

2)      Create a blog where you share your insights, learnings and experiences.  As you interact in the special interest groups (see #1 above) you should use your blog link as part of your electronic signature and from time to time suggest that if someone wants to know more about a topic they can read more on your blog.

    The purpose of these two activities is to increase your “googleability” and to link your name with your chosen profession so that it builds your reputation as an expert in your field.  This will increase your prestige and make it easier for you to  command higher pay in your field.  At first, you will be a designated expert.  Over time you will become a true expert and a source of information and learning for others. At some point, you may be able to get paid to teach others what you know about Operations Management.

So, what is YOUR Googleability?  When a prospective employer or client puts your name into Google and searches, do you appear on the first page of their search?  When they do find you, are there embarrassing pictures or messages out there that could damage your credibility?

If you want to learn more about how to avoid these and other pitfalls of job hunting in the age of the internet, I suggest you get a copy of my book “Fire Yourself: Get the JobYou Want”

Tom Sheppard is the author of "Fire Yourself: Get the Job You Want" available from XLibris Press and on both Amazon.com and barnesandnoble.com. Tom has been successfully investing in real estate since 2001 while working part time. In 2008 he left a six-figure job as an enterprise project manager with a major national bank to manage his real estate business full-time. His goal is to help 100,000 people find peace of mind by finding quality, affordable homes. He is currently looking to expand his network of funding partners who are helping him achieve this goal. If you would like to know more about how you can Do Well By Doing Good (TM), go to www.CharlotteWealthPartners.com

Buying a House for Pennies on the Dollar

Can you really buy a house for Pennies on the Dollar?

Yes, you really can, and I have. And yes, there is a catch!

Recently a partner and I purchased a home that is worth about $300,000 for just $140,000. In case you don't have a calculator handy, that is 46 cents on the dollar.

This is a nice house in a nice neighborhood. So, what is the catch? Well, actually there is more than one.

Catch #1) ALL CASH and QUICK CLOSING

When you find a house that you can buy at a price significantly below the market value you must have access to a large sum of money that is available immediately. We had to close in less than three weeks from the time we found this deal.

Three weeks isn't enough time for traditional lenders to even finish determining if they think you will pay them back. Then they need to spend several more weeks scheduling and evaluating the house you want to buy. The bottom line is, a fast close for a traditional lender is six weeks and most won't get done in less than twelve weeks.

So, if you cannot get the money fast, then the deal will get away from you.

Catch #2) Lenders Will Only Consider the Purchase Price

When you find a deal like ours, most lenders will look at the contract price of the property and will only lend a portion of that value. This will still leave you with the need to come up with anywhere from 5% to 20% of the contract price in order to make the deal happen.

Catch #3) Lenders Will Decrease the Loan Based on the Property Condition

When you find a house at a great price, in most cases it is going to require some repairs. If the repairs are too significant, the bank won't lend you anything, regardless of how low the purchase price is. They don't want to end up owning it in case you walk away with their money. If the repairs are within reason, they will decrease the stated value of the home by the amount of the repairs and lend you a portion of the decreased value.

Catch #4) Fixing the Property Requires More Cash

With very few exceptions any house you can buy for 46 cents on the dollar is going to need some repairs and some updating. To do the repairs and updating will require more money.

Our deal was no exception. We had to put on a new roof within days of closing to make sure we didn't have the inside get damaged from rain that would have come through the old roof. Then we had to clean out the house and make several other repairs. Lastly, we had to update the tiny kitchen by expanding it and improving it.

All of this requires a lot more cash, in addition to what we paid for the house at closing.

Catch #5) You Have to Pay While You Wait

When you get a loan to buy and fix a house, you have to keep making payments on the loan even though you aren't living in the house. If you get a loan that doesn't require payments, then you are just deferring payments while the interest is piling up. That is what is known as the cost of capital.

Catch #6) If the Repairs Aren't Done Right It is Still Your Problem

When you are doing it yourself or even having others do it for you, if the repair or upgrade is messed up, you are still on the hook. You will suffer more for it than anyone else in terms of money, time, and frustration.

Conclusion

Every week my team and I find and buy homes for pennies on the dollar. We work with a group of investors who make money with us by lending us the money to buy and fix these homes. We pay cash and close quickly. Then we fix up these homes and make sure they are done up right. When we are done, we want to sell them fast, so we put them on the market at a discount price. That way you save m0ney even while we make money.

While it is true that you can find and buy houses for pennies on the dollar, there are a lot of hidden downsides to doing this for yourself. We know and understand the problems with doing this. We do it every week.

If you buy a home from us, you will save yourself the time and frustration of trying to find one of these deals and you will save yourself the aggravation and disappointment of trying to buy and fix up one of these homes.

Why bother when instead you can let us to all the dirty work and you still get a discount on a beautiful home?

Tom ~

Why Buy Retail?

http://www.buyahousebelowmarket.com/

See my latest blog about what we do at The Gold Seal Homes Group: http://www.youtube.com/watch?v=ACJx3wpKezQ

Easy Money: Why Buy Real Estate?

Real Estate is the Best Investment

Real estate has been the basis for the wealth of more millionaires than any other form of investment. This is true because real estate is probably the best of all possible investments.

You can make money and have a tax loss, legally with real estate. If your annual depreciation amount exceeds the amount of income you have from the property, it will result in a reduction of your taxable income, even though you actually made money.

Banks will lend you money to buy real estate, sometimes more than 100% of the present value of the real estate. See how many bankers will lend you $100,000 to buy $100,000 worth of stocks.

A good real estate investment will give you dividends and appreciation (growth), not just one or the other as most stock brokers will try to convince you to settle for when buying stocks. Rent payments can be the equivalent of dividends for the smart investor and in spite of the recent downturn in real estate values, the historical average appreciation of real estate exceeds the historical average gains in the stock market.

The value of real estate does not disappear overnight like it can with stocks and bonds. At worst case, if you own it, you can always go live in it. Try that with a stock certificate!

Like they say in buying stocks, the secret to making money is to buy low and sell high. In real estate, we say that money is made in real estate when it is bought, not when it is sold. If you buy low and ensure you have a positive cash flow, it is pretty hard to miss in real estate.

It is a simple formula, but a challenging one to execute. Most professional real estate investors spend a lot of time understanding their markets. They see a lot of houses for sale that they won't make offers on. They know how to tell the winning deal from a loser, because of their experience and training.

Unfortunately, the amateur investor often gets taken in real estate, just as they do in the stock market. Anyone who hopes to consistently make money in real estate investing has to be prepared to pay their dues by getting the right education, getting a good mentor, and then following directions to do deals the right way instead of trying to make it all up on their own, or improvise their own approach to the market.

Because real estate is a capital intensive field, it is easy to loose a lot of money investing foolishly. There are three ways people can profitably get involved in and benefit from real estate investing.

1) Become a private lender. Find an experienced, successful and reputable real estate investor in your area and ask him if he could use a private lender. Use your IRA, move the money in your old 401K into an IRA, or use excess cash you have parked in CDs or less profitable investments. Make it available to this investor to use. Don't try to tell him or her how to find houses or which houses to buy, but require that you get four things every time your money is used:

• A promissory note for the amount loaned, personally guaranteed by the investor


• A deed of trust on the property with your loan in the first lien position


• Lenders title insurance with you (0r your IRA) as the named beneficiary


• Hazard insurance with you (or your IRA) as a named beneficiary/lender

As I mentioned, don't try to tell the investor where or what to buy. But, do feel free to ask why she or he bought the house they did. Learn all you can from the investor and don't begrudge her or him their profits. You are getting paid to learn from them by getting a nice interest rate return on your money.

2) Become an equity partner with an experienced, successful real estate investor. Seek out this investor and tell him or her that you have a sizable chunk of money (this better be at least $500K) and you want to get into the real estate investing business. You commit to providing the capital in exchange for a 50% share of the profits on each deal you do with them.

Again, be sure to pick the brain of the investor as you do each deal so that you can learn how the investor picks the winners, how s/he acquires the property and profits from the deal. Once again you are getting paid to learn.

3) Become a professional (part-time or full-time) real estate investor. First, you will need to set aside about $30K to $50K and invest it wisely in the best real estate investing training you can find (if you ask me, I will provide a confidential list of the best I have seen and some to avoid). As soon as you complete the very first course, apply it, apply it, and then apply it some more - before you attend or sign up for any additional training. Do not sign up for any additional training until after you have worked solid for six months trying to do everything the first course taught you to do. I will make an exception for a coaching program and a mentoring program that can help you apply what you have learned. You probably should sign up for those right away and work them for everything they will give you during that six month startup period.

After you have successfully used your training to buy and profit from three to six deals, then it is safe to go back in the water to sign up for additional courses.

In another post I will discuss the perils of real estate training and how it can distract you from making money.

Of the three ways I mention above to make money in real estate investing, the first two require the least amount of time and effort. The third, even if you do it only part-time, requires a tremendous amount of work, dedication, persistence and applied knowledge. The rewards are greater and so are the risks. Decide for yourself which approach suits you.

If you would like more information on:

1. How to be a private lender see the Investors page of www.BuyAHouseBelowMarket.com.


2. How to become an equity partner, contact me directly at tsheppard@adbproperties.com


3. How to become a successful real estate investor, keep reading these blogs or contact me directly at tsheppard@adbproperties.com

Tom ~

Why Buy Retail?

www.BuyAHouseBelowMarket.com