Too busy to go a CCIM Meeting? Good for you!

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Are you one of those CCIM’s who got “pinned” and never went to another meeting again? Maybe even stopped paying your dues but still using the initials after your name? Got a cease and desist letter from Gail?

I’ve heard all of the excuses before…I’m too busy to go to the meeting…I passed the exam, screw them, I earned it!

Well, I beg to differ. And some of you are my friends, you know who you are.

If you have ever seen an ad, had a member of the Leadership Team visit your chapter, or just poked around ccim.com, you will see that for your $595.00 a year you receive about $13,000 worth of benefits. WOW, $13,000 for only $595! And you didn’t even have to use a coupon!

Now, we all know the next line coming….I don’t even use the Site To Do Business….I don’t need your spread sheets….I don’t care about retaking CI-102 over again to update my skills! I still have my abacus (the one you borrowed it from Jay Levine in class and never returned) and it works just fine!

Ok, fine. Neither me nor any of the other CCIM’s you know are going to change your mind. Good for you! Your business card looks great with that e-PRO designation!

Having just returned from the CCIM Mid-Year business meetings in Nashville last week I found myself 1: recharged and 2: with more business opportunities. Let’s examine these seriatim (See, I did remember some Latin Mr. Celapino!)

1. Yes, recharged! You see, some of the closest friends in my life I have come to know through the CCIM Institute. It truly is a family      reunion at least twice a year, only better because your cousin Lenny isn’t there!

When you travel to Texas you meet several friends for drinks and dinner and one insists you stay at his house.

You go to a meeting a few days early so you and your wife can hang out with another couple or two.

The kind of friend you talked to every Friday driving home when the market was at the bottom. You already have 2 friends that succumbed to this financial disaster created by the incompetent boobs/criminals in Washington and on Wall Street. They made it once, the second time would have been easier. Just a temporary problem we told each other.

You always end the conversation saying “I love ya brother, hang in there!”

“Yeah man, I love you too! Give your wife a hug for me!”

“I will, you do the same.”

You get a call from one of your CCIM buddies telling you a mutual friend is sick or needs a word of encouragement and needs to be in your thoughts and prayers. You call and end up speaking with his wife, because you know her too….family. The kind of family you greet in the hotel lobby with a hug, not a hand shake.

2. Deals! Isn’t this the entire reason you got into this in the first place? Of course not! You just had nothing better to do with the $12,000 you invested in this education! ROI! Yes, doing more deals, better deals, bigger deals! Deals with people you know, like and trust! Deals!

***DISCLAIMER – The following is a true and accurate account of what has happened in the past week. Names have been changed to protect the innocent, maintain confidentiality, and so those of you who were not there don’t try to snake in on the assignments!

Monday during my 3 hour drive to Nashville:

Call from a CCIM I have never met. “Don, this is Gilbert, I am a CCIM and need to send a deal to KY. Our mutual friend Joe said you were the guy to call.”

“Great, tell me about it.”

“Well, I don’t know too much about it but the asset manager will be calling you for a proposal. He is a close friend and I told him if Joe said you are the man, you are the man! He told me it is probably in the $12 to $15 million range (in reality probably $10 million, but who’s counting). Several properties involved. Send me a referral fee if you work it out.”

“No problem, always happy to pay a referral, by the way, we have to throw some money toward Joe too!”

“Oh, hell yes! Dead presidents for everybody!”

Tuesday lunch:

“Hey Mary, how are you? It’s been too long. What’s up?”

“Oh, I’m so glad I ran into you. I was thinking about you on the flight.”

“Oh really?”

“Ha! You wish! No really, I was. My company is in the middle of acquisition of several properties down there near you. Do you have time to meet when I fly in with my boss to discuss the market, maybe drive us around to look at comparable properties. Maybe your company could handle the leasing for us? You know, we usually do our own, but this is a little far away for our in house team.”

“Sure, just give me the date and I will be there! I’ll buy lunch or drinks!”

“In and out on the same day, company plane you know. We’ll buy lunch, just really grateful to have someone down there I know and trust.”

Wednesday night dinner:

Bill is next to me and lives in an adjoining state. We talk about what we are working on.

“Bill, I have this client who is really expanding his business and is talking about opening his next location in your state about 60 miles south of you. Any ideas of the market down there? He won’t lease, always owns his real estate. 10,000 square feet, near the interstate, you know, like everyone in that business.”

“Holy crap! I have that exact property listed! Bank owned too! They will probably really cut him a deal, especially if your guy will finance with them.”

“I’m sure he will at least let them give him a quote, he didn’t get where he is by being stupid. I just texted him, wants us to drive over late next week.”

Thursday afternoon driving home I call a friend from the southwest:

“Hey Mark, it’s Don. I was just thinking about the REIT you work with, will they buy outside of the southwest?”

“Oh yeah, anywhere! The biggest challenge is assembling their minimum number of units in a particular market. They need a lot!

“I know a fellow CCIM who deals in a lot of that property type in a nearby city. Call you right back.”

5 minutes pass

“Mark, its Don. Yeah, funny thing. He is listing that exact property, meets all of your clients criteria, on Sunday afternoon. I’ll send you his contact information when I get home. I don’t want to get in the middle of your deal, just buy me a steak next time I see you.”

“Thanks, man! Don’t want to buy you a damn steak! My guys pay my fee, I’ll send you a referral fee and I’ll have your buddy do the same. I just appreciate the hook up, makes me look like I’m working while I’m at the bar!

“You were and I was too! I think there are pictures to document that!”

“I thought you deleted those? Hey the flight attendant is given me a dirty look, got to go! I’ll copy you on all emails.”

“Safe travels my friend.”

I’m glad you saved your $595.00!

I’m glad you were too busy! I was too!

Real Estate holdings in your IRA? Yes, and here’s why!

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Do you remember that historic day, October 5, 2007? Probably not. Let me refresh your memory, that was the first time the stock market hit 14,000. You may have an easier time remembering March 6, 2009….come on….think hard! YES! That was the day the market closed at 6,626! The market lost over half of its value in less than 18 months!

Your broker told you that you were diversified to protect yourself from these situations. You were thinking you would never retire! Diversification my ass!

Time to cash out and protect what was left. You call your banker and ask what you can get on a 12 month cd.

“Mike, we must have a bad connection…you keep cutting out….all i hear is .25%. What is the number to the left of the decimal point? There is NO number to the left of the decimal point? Geez, what the hell am i supposed to do?

Take it from a former Enron stock holder (thanks a alot Karen!!), we have all been there. Sometimes more than once. So now what?

The dirty little secret that your stock broker won’t tell you is that you REALLY could diversify your portfolio in more ways, they just don’t want to tell you about it because that can’t make any commi$$ions on it, nor do they have the license to sell it!

How about adding real estate to your IRA? Yes, real estate! You can actually have a self directed IRA that owns real estate! Owning real estate with all of the tax advantages of an IRA! Pretty cool huh? Oh, but wait…you don’t want to be a landlord! You once had a rental house! Oh what a pain it was to collect the rent, spend a weekend fixing holes in the walls and painting. When you sold it you proclaimed to your spouse, “NEVER AGAIN!”

Well, there are some great alternatives in commercial real estate. That Walgreen’s you go to twice a week, I’m going to let you in on  little secret. Walgreen’s doesn’t own it! No, they really don’t! So who does own it?

The large pharmacy chains, dollar stores, most fast food restaurant locations are owned by investors just like you. They sign a lease referred to in the industry as a triple net lease (NNN lease). Yes, is has about 80 more pages than the one you used on your former rental house, but the provisions are pretty cool!

A NNN lease is one in which the owner..landlord..YOU have no responsibility! Really! NONE! Too good to be true? Let me explain.

In a NNN lease you , as the landlord, have no maintenance responsibilities. That includes paint, HVAC, plumbing, parking lot repairs, snow removal, mowing, roof repairs, etc. Want to know something else? They even pay your property taxes and insurance! Oh, by the way, they also sign leases for between 10 and 25 years and are backed by companies like CVS, McDonald’s, Dollar General, etc. Some even have built in rent increases!

Ok, I know what you are thinking. What’s the catch? Too good to be true? Must be, right?

You are right, there is a catch. Once a month you will have to walk to your mailbox and pick up a check or, if your a “techie”, log on to your bank account and see that $7,000.00 rent check has hit your account. That’s it. REALLY!

Call a commercial (note I said COMMERCIAL) real estate broker (not your friend who sold your house) to find out more details on how this works. Oh, also look for a broker who has the initials CCIM after their name http://www.ccim.com/whatisaccim