WHAT IS THE FORMULA FOR SUCCESS?

I have always asked myself this very simple question  which is; what is the Formula for Success? What does one need to do to ensure that he or she becomes successful?

Well after many years of studying and thinking success was achieved by hard work, intelligence and brilliance it’s amazing to know that all the above only plays a little part in how far you go in LIFE.

Explore the below formula with me and see that success is determined most by one attribute that almost everyone can inculcate.

SYNOPSIS (do the math yourself)

If
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Is equal to
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Then
H+A+R+D+W+O+R+K =
8+1+18+4+23+15+18+11 = 98%

K+N+O+W+L+E+D+G+E =
11+14+15+23+12+5+4+7+5 = 96%

L+O+V+E=
12+15+22+5= 54%

L+U+C+K =
12+21+3+11 = 47%

None of them makes 100%. Then what makes 100% ???

Is it Money? NO !!!

Leadership? NO !!!

Every problem has a solution, only if we perhaps change our “ATTITUDE”.

It is OUR ATTITUDE towards Life and Work that makes OUR Life 100% Successful.

A+T+T+I+T+U+D+E =
1+20+20+9+20+21+4+5 = 100%

Your ATTITUDE determines Your ALTITUDE

So what is the difference between an adventure and an ordeal? Attitude! I’ve seen it hundreds of times. So have you. A group of people are caught up in challenging circumstances, say a hurricane. Some choose to feel exhilaration, some choose to feel burdened, even despondent.  Even something as simple as going from one place to another can show you what attitudes people choose to take on. Some get caught up in the adventure of it all; some curse the ordeal. Same situation. Different attitude.

What is the difference between gratitude and resentment? Attitude! What adds the color, the depth, the uniqueness, the rewards to your life? The experiences you have. Some choose to resent the experiences (problems, trials and tribulations) that life throws at them. Some choose to be grateful for the experiences (challenges and opportunities) that life offers them. The difference between a problem and an opportunity is attitude; between a tribulation and a challenge is attitude. In other words, the difference between winners and whiners is attitude. A negative attitude turns a mere bump in the road into a mountain of an obstacle. A positive attitude turns a mountain into a challenge to gain both strength from the task of surmounting it and a greater vista to view the opportunities that lie ahead.

What is the difference between happiness and misery? Attitude! Just ask my meter readers. I did. “How do you like your job?” I asked. My water meter reader told me, “I love it.” Why? “I get to be outside all day instead of trapped in some office. No one is looking over my shoulder and the job itself is so simple, I don’t have to even think about it. Walking miles each day keeps me fit. I love dogs and get to make friends with many in my rounds.” My electricity meter reader told me, “I hate it.” Why? ” It’s either too damn hot or its raining. If I was in an office, I’d at least have air conditioning. And its boring. No one to talk to. Every damn day is the same. They won’t even give me a scooter to ride and I’m sick of walking miles and miles every day. Plus, many people have dogs and I am always afraid of getting bit.” Same deal for both. One is happy. One is miserable. Why? Attitude.

What is the difference between success and failure? Attitude! In his long quest to find the exact filament that would allow the creation of an electric light bulb, Thomas Edison was asked by a reporter how it felt to have failed almost a thousand times. He replied that he had not failed, he had successfully eliminated a thousand ways that did not work and was thus closer to discovering the one that would work. His attitude determined his continuous perceived success and his ultimate real success. Without that attitude, he may likely have given up. Others before him had already given up on that same quest. With that attitude, he was able to persist until he succeeded. His choice of attitude created his success.

Sometimes, even the difference between life and death can simply be an matter of attitude. The survival rates of cancer patients (and those with other terminal illnesses) is proven to often depend on nothing more than their attitude. Read “Humor and Healing” and other books by Bernie Segal. Likewise, people who get caught up in disasters often survive because of an attitude of faith, hope or optimism while people right beside them perish because of an attitude of despondency or pessimism. They give up and die. Their attitude kills them. Of course, if they still could after being dead, they’d likely blame it on the circumstances and not their attitude.

What determines your attitude? Your choice. Yes, you may have inherited a predisposition to a certain general attitude towards life from your parents or your cultural heritage; but, in each moment you have the capacity to choose your attitude. You can, by conscious volition, train yourself to have the attitude that will bring you the happiness and the success you desire to have in life.

It is always within your power to choose to have the necessary attitude that creates adventure instead of ordeal, gratitude instead of resentment, happiness instead of misery, success instead of failure, a full and exciting life instead of a mere existence or even death.

I will even go so far as to say that it is your choice of attitude that determines whether or not you actually deserve to have the happiness and the success you desire.

So, get conscious about your choice of attitude. Choose wisely. It may not be everything, but it is pretty darn close.

“The longer I live, the more I realize the impact of attitude on life. Attitude, to me, is more important than education, than money, than circumstances, than failures, than success, than what other people say or do. It is more important than appearance, giftedness or skill. It will make a company, a church, a home. The remarkable thing is that we have a choice everyday regarding the attitude we embrace for that day. We cannot change our past; we cannot change the fact that people behave in a certain way; we cannot change the inevitable. The only thing we can do is to play on that one string we have, and that is our attitude. I am convinced that life is 10% of what happens to me and 90% how I react to it. And so it is with you. We are in charge of our attitudes.” ~ Chuck Swindoll

Related articles

• Einstein’s Formular for Success (funtaqa.wordpress.com)
• Attitude: The #1 Factor That Determines Your Success! (kxw1.wordpress.com)
• 5 Attitudes Wired in Happy and Successful Brains (consciouslifenews.com)
• How is YOUR Attitude??? (finerfem.wordpress.com)
• Keep Your Sanity Even If You Hate Your Job (knockeddownstillstanding.com)
• 5 Tools to Overcome Negative Self-Talk and Limiting Beliefs? (alexiaisaak.com)
• Your ATTITUDE is the KEY – “Minds are like parachutes – they only function when open. (eagleman6788.wordpress.com)
• Attitude Check (believinggirl.com)
• THE MASTER FORMULAR TO LIFE AND SUCCESS by Samuel Onatuga-Isichei (funtaqa.wordpress.com)

11 POWERFUL Concepts to Become a BETTER LEADER.

Being likeable will help you in your job, business, relationships, and life. All of the concepts are simple, and yet, perhaps in the name of revenues or the bottom line, we often lose sight of the simple things – things that not only make us human, but can actually help us become more successful. Below are the eleven most important principles to integrate to become a better leader:

 

1. Listening

“When people talk, listen completely. Most people never listen.” – Ernest Hemingway

Listening is the foundation of any good relationship. Great leaders listen to what theircustomers and prospects want and need, and they listen to the challenges those customers face. They listen to colleagues and are open to new ideas. They listen to shareholders, investors, and competitors. Here’s why the best CEO’s listen more.

 

2. Storytelling

“Storytelling is the most powerful way to put ideas into the world today.” -Robert McAfeeBrown

After listening, leaders need to tell great stories in order to sell their products, but more important, in order to sell their ideas. Storytelling is what captivates people and drives them to take action. Whether you’re telling a story to one prospect over lunch, a boardroom full of people, or thousands of people through an online video – storytelling wins customers.

 

3. Authenticity

“I had no idea that being your authentic self could make me as rich as I’ve become. If I had, I’d have done it a lot earlier.” –Oprah Winfrey

Great leaders are who they say they are, and they have integrity beyond compare. Vulnerability and humility are hallmarks of the authentic leader and create a positive, attractive energy. Customers, employees, and media all want to help an authentic person to succeed. There used to be a divide between one’s public self and private self, but the social internet has blurred that line. Tomorrow’s leaders are transparent about who they are online, merging their personal and professional lives together.

 

4. Transparency

“As a small businessperson, you have no greater leverage than the truth.” –John Whittier

There is nowhere to hide anymore, and businesspeople who attempt to keep secrets will eventually be exposed. Openness and honesty lead to happier staff and customers and colleagues. More important, transparency makes it a lot easier to sleep at night – unworried about what you said to whom, a happier leader is a more productive one.

 

5. Team Playing

“Individuals play the game, but teams beat the odds.” -SEAL Team Saying

No matter how small your organization, you interact with others every day. Letting others shine, encouraging innovative ideas, practicing humility, and following other rules for working in teams will help you become a more likeable leader. You’ll need a culture of success within your organization, one that includes out-of-the-box thinking.

 

6. Responsiveness

“Life is 10% what happens to you and 90% how you react to it.” –Charles Swindoll

The best leaders are responsive to their customers, staff, investors, and prospects. Every stakeholder today is a potential viral sparkplug, for better or for worse, and the winning leader is one who recognizes this and insists upon a culture of responsiveness. Whether the communication is email, voice mail, a note or a tweet, responding shows you care and gives your customers and colleagues a say, allowing them to make a positive impact on the organization.

 

7. Adaptability

“When you’re finished changing, you’re finished.” –Ben Franklin

There has never been a faster-changing marketplace than the one we live in today. Leaders must be flexible in managing changing opportunities and challenges and nimble enough to pivot at the right moment. Stubbornness is no longer desirable to most organizations. Instead, humility and the willingness to adapt mark a great leader.

 

8. Passion

“The only way to do great work is to love the work you do.” –Steve Jobs

Those who love what they do don’t have to work a day in their lives. People who are able to bring passion to their business have a remarkable advantage, as that passion is contagious to customers and colleagues alike. Finding and increasing your passion will absolutely affect your bottom line.

 

9. Surprise and Delight

“A true leader always keeps an element of surprise up his sleeve, which others cannot grasp but which keeps his public excited and breathless.” –Charles de Gaulle

Most people like surprises in their day-to-day lives. Likeable leaders underpromise and overdeliver, assuring that customers and staff are surprised in a positive way. There are a plethora of ways to surprise without spending extra money – a smile, We all like to be delighted — surprise and delight create incredible word-of-mouth marketing opportunities.

 

10. Simplicity

“Less isn’t more; just enough is more.” -Milton Glaser

The world is more complex than ever before, and yet what customers often respond to best is simplicity — in design, form, and function. Taking complex projects, challenges, and ideas and distilling them to their simplest components allows customers, staff, and other stakeholders to better understand and buy into your vision. We humans all crave simplicity, and so today’s leader must be focused and deliver simplicity.

 

11. Gratefulness

“I would maintain that thanks are the highest form of thought, and that gratitude is happiness doubled by wonder.” -Gilbert Chesterton

Likeable leaders are ever grateful for the people who contribute to their opportunities and success. Being appreciative and saying thank you to mentors, customers, colleagues, and other stakeholders keeps leaders humble, appreciated, and well received. It also makes you feel great! Donor’s Choose studied the value of a hand-written thank-you note, and actually found donors were 38% more likely to give a 2nd time if they got a hand-written note!

 

The Golden Rule: Above all else, treat others as you’d like to be treated

By showing others the same courtesy you expect from them, you will gain more respect from coworkers, customers, and business partners. Holding others in high regard demonstrates your company’s likeability and motivates others to work with you. This seems so simple, as do so many of these principles — and yet many people, too concerned with making money or getting by, fail to truly adopt these key concepts.

 

Also engraved in the abilities of a leader is the love and passion for what they do which creates opportunities for them to profit from it and help others do the same. Join Empower Network and let your passion work for you. follow the link.

http://www.empowernetwork.com/almostasecret.php?id=samueldavids

http://www.empowernetwork.com/almostasecret.php?id=samueldavids

Related articles

• How to Get Everything You Want. Seriously (creativemediasystems.wordpress.com)
• Change via Storytelling (dashrism.com)
• Storytelling: Persuasion That Moves & Engages (business2community.com)
• Powerful Tips for Professional Women Looking to Overcome the “Likeability Bias” (business2community.com)

 

BROKE, BROKEN BUT STILL DREAMING

The truth about life is that nothing happens by chance and everything that happens to you leads to an open door so YOU might be broke and broken but you you need to keep dreaming.

I recently came accross one of the SADDEST stories ever told in Hollywood history. His name is Sylvestar Stallone. One of the BIGGEST and Most famous American Movie superstars. Back in the day, Stallone was a struggling actor in every definition. At some point, he got so broke that he stole his wife’s jewellery and sold it. Things got so bad that he even ended up homeless. Yes, he slept at the New York bus station for 3 days. Unable to pay rent or afford food. His lowest point came when he tried to sell his dog at the liquor store to any stranger. He didn’t have money to feed the dog anymore. He sold it at $25 only. He says he walked away crying.

Two weeks later,he saw a boxing match between Mohammed Ali and Chuck Wepner and that match gave him the inspiration to write the script for the famous movie,ROCKY. He wrote the script for 20 hours! He tried to sell it and got an offer for $125,000 for the script. But he had just ONE REQUEST. He wanted to STAR in
the movie. He wanted to be the MAIN ACTOR. Rocky himself. But the studio said NO. They wanted a REAL STAR. They said he “Looked funny and talked funny”. He left with his script. A few weeks later,the studio offered him $250,000 for the script. He refused. They even offered $350,000. He still refused. They wanted his movie. But NOT him. He said NO. He had to be IN THAT MOVIE.

 

Cover of Rocky

After a while,the studio agreed,gave him $35,000 for the script and let him star in it! The rest is history! The movie won Best Picture, Best Directing and Best Film Editing at the prestigious Oscar Awards. He was even nominated for BEST ACTOR! The Movie ROCKY was even inducted into the American National Film Registry as one of the greatest movies ever! And do You know the first thing he bought with the $35,000? THE DOG HE SOLD. Yes,Stallone LOVED HIS DOG SO MUCH that he stood at the liquor store for 3 days waiting for the man he sold his dog to. And on the 3rd day,he saw the man coming with the dog. Stallone explained why he sold the dog and begged for the dog back. The man refused. Stallone offered him $100. The man refused. He offered him $500. And the guy refused. Yes,he refused even $1000. And,Believe it or Not,Stallone had to pay $15,000 for the same,same dog he sold at $25 only! And he finally got his dog back! And today,the same Stallone who slept in the streets and sold his dog JUST BECAUSE he couldnt even feed it anymore,is one of the GREATEST Movie Stars who ever walked the Earth! Being broke is BAD. Really BAD. Have You ever had a dream? A wonderful dream? But You are too broke to implement it? Too tiny to do it? Too small to accomplish it? Damn! I’ve been there too many times!

Life is tough. Opportunities will pass you by,just because you are a NOBODY. People will want your products but NOT YOU. Its a tough world. If you aint already famous, or rich or “connected”, You will find it rough. Doors will be shut on You. People will steal your glory and crash your hopes. You will push and push. And yet NOTHING WILL HAPPEN. And then your hopes will be crashed. You will be broke. Damn broke. You will do odd jobs for survival. You will be unable to feed yourself. And Yes, you may end up sleeping in the streets. It happens. Yes, it does.

BUT NEVER LET THEM CRUSH THAT DREAM. Whatever happens to You, Keep Dreaming. Even when they crush your hopes, Keep Dreaming. Even when they turn you away, Keep Dreaming. Even when they shut you down, Keep Dreaming. NO ONE KNOWS WHAT YOU ARE CAPABLE OF EXCEPT YOURSELF! People will judge You by HOW you look. And by WHAT You have. But please, Fight on! Fight for Your place in history. Fight for your glory. NEVER EVER GIVE UP! Even if it means selling all your clothes and sleeping with the dogs, ITS OKAY! But AS LONG AS YOU ARE STILL ALIVE, Your STORY IS NOT OVER. TRUST ME.

Keep Up the Fight. Keep your dreams and hope alive. Go Get It.

FOLLOW THE LINK, JOIN EMPOWER NETWORK AND KEEP FIGHTING.

http://www.empowernetwork.com/almostasecret.php?id=samueldavids

FIVE Ways to Clean-Up Your Credit Report

A credit score and report stands to be one of the most important element of everyone’s life. A credit score determines what you can and cannot purchase, it determines your financial responsibility and maturity in the sight of lenders and financial institutions at large. It goes a long way in helping people determine your character (financial character). So there is a need to take this part of our lives seriously; making sure that every little detail is in place so we don’t fall short of representing ourselves on paper as responsible and reasonable. Everyone needs to do a regular check up and clean up of their credit report to make for a suitable credit score both in the short and long-run.

For example; removing clutter at home removes obstacles to mental clarity by stopping up those little nagging drains that leak a little bit more of your energy every time you see that pile of papers that need shredding or the boxes of toys your kids no longer use. And the same goes for Cleaning up your credit report in advance of kicking off your house hunt. It’s stressful to have little credit report glitches get in your way and hold up the process after you’re already in heated house hunt mode.

Getting out in front of potential financing issues by doing a DIY credit cleaning gives you the chance to remove all those glitches and obstacles to a smooth loan approval, underwriting and home buying transaction.

Here are the FIVE tips on how to do-it-yourself:

1.  Do one scan for flat-out errors. 

Go to AnnualCreditReport.com and order your credit reports from all three reporting bureaus: Experian, Equifax and TransUnion. Look for accounts that aren’t yours, that have long been closed or otherwise are erroneously reported (e.g., payments listed as late that were actually on-time, a short sale listed as a foreclosure, etc.). Follow the instructions on the reports to dispute such report errors immediately – both online/on the phone and in writing.

Be prepared that it might even take several rounds of disputes and submissions of documents proving your case to ultimately clear everything up – if you experience this, make sure to loop your mortgage pro in after the first dispute round, rather than waiting months and months to even make the first call.  It might be the case that the hard-to-dispute items are simply not making much of a difference to your ability to get a home loan.

2.  Do another scan for small reporting inaccuracies you think don’t make a difference – but do.

In particular, you’re looking for things like:

• delinquencies that should have aged off
• balances listed as higher than they truly are
• limits listed as lower than they really are, and
• short sales/foreclosures that are improperly dated, among other things.

Paying bills late or not at all is only one thing that dings your credit report and score. Having a maxed out credit account (loan, line or card) limits is another.  So, if your credit report shows your balances as higher than they actually are or your limits as lower than they actually are, this by itself can actually impair your credit score.

These sorts of little, technical errors can, cumulatively, create a serious, negative impact on your credit score. They are very common – and commonly overlooked by consumers who are looking primarily for big, bad errors and wrong reporting that might indicate identity theft or other nefarious goings-on.  So take a second tour through your credit reports looking for inaccurate balances and limits.

In the same vein, triple-check the dates of any delinquent payments, collections, short sale(s), foreclosure(s), or bankruptcies that are legitimately reported. Another common error is for these sorts of derogatory credit marks to have been dated inaccurately.  Delinquencies should age entirely off your report after 7 years, and bankruptcies after 10.  The precise date of a short sale or foreclosure can actually make or break your ability to qualify for a home loan – so make sure it is reported accurately.

3.  Pay the right things off – and take care not to pay off accounts you need to show your responsible use of credit.

A few things that most lenders will demand you settle, bring current or pay off entirely before you can buy a home:

• accounts in collections
• state and federal tax liens
• past home loans or lines of credit in default that were not extinguished through foreclosure or short sale (e.g., second loans, home equity lines of credit, etc.)
• defaulted federal student loans (for FHA loan applicants).

If you do have to negotiate with any such creditors for settlements or repayment plans, consider including the way they report the account as one of the negotiables in your settlement deal.  Consult with your mortgage professional about how you should ask the creditor to report the resolution as part of the settlement – you might not get it, but it certainly doesn’t hurt to ask.

Your mortgage pro can also help you understand how you should sequence and prioritize the various items on this little laundry list. For example, some lenders might allow you to simply extinguish a tax lien at closing, while most FHA loans won’t allow for a credit pre-approval while you have a defaulted federal student loan on your report.

But do exercise some caution when you start paying off debt in preparation for home buying. Some house hunters take the opportunity to pay all their debt off and close out old, unused accounts, thinking it will document their readiness for the financial responsibilities of homeownership.  Not so: credit scores are optimized when they show that you (a) have credit available to you, and (b) are responsible in how you use it.  The ideal for the FICO score calculations is to be using roughly 30 percent of the credit available to you on your accounts.  So don’t pay them entirely off, and whatever you do, don’t close accounts that are open and/or current.

That said, don’t go out charging up a storm trying to bring zero balance accounts up to 30 percent credit limit usage.  A flurry of new charges can upset your debt-to-income ratio and be seen by the FICO calculating robots as a sign of potential financial distress.

4.  Get your mortgage pro to help.

Up to now, you’ve been working on the reports that you can pull yourself, for free, as mandated under the federal Fair and Accurate Credit Transactions Act (FACT Act) through AnnualCreditReport.com. These reports are free and are the smart starting point for your credit Clean Up, but they have two important shortcomings:
(1) They are almost never identical to the report your lender will actually use as the basis of your mortgage application, and
(2) They do not include the FICO credit score on which lending decisions are based.

So, once you’ve dealt with any major or minor reporting errors you detect on the free reports, get your mortgage pro in the loop (if you haven’t already) and ask them to pull your report and FICO score, and help you to troubleshoot it.  From the report, they can tell you whether you’ll have any challenges qualifying at the price range you desire and, if so, they can help you put a plan of action into place for finishing up your credit fitness program.

Many mortgage pros have software or expertise that can power a set of recommendations about what you need to do to complete your credit report Spring Clean, like paying 3 particular accounts down by a specific dollar amount, each.  Also, they generally have access to Rapid Rescore or similar programs that will have your report updated and your credit score revised within a day or two after you pay a bill down or execute your mortgage broker’s other score-boosting advice. (By contrast, it can take 30 days or more it can take for your score to be updated if you dispute your report on your own.)

5.  Ask about augmenting your report with non-traditional “tradelines,” if needed.  If you simply don’t have much credit because you like to pay cash, kudos to you for managing your finances responsibly.  Increasingly, lenders will allow borrowers to use non-traditional accounts to document their credit history.  If you can document your history of paying your rent, health insurance, or even child care bills on time, every time, for at least 12 months, talk to your mortgage professional about whether you can use any of these accounts to prove yourself creditworthy to mortgage lenders.

Part of being financially independent is taking charge of your financial responsibilities; one of which is making sure that your credit score and report are good and up to date. You can do most things yourself and if not, get a professional to help you with them. Lets start the clean-up.

Please feel free to contact me for more details

Related articles

• How to Repair Your Credit and Qualify for a Mortgage (bestcreditrepaircompanys.com)
• Credit Score Q&A (quicken.intuit.com)
• Having Bad Credit Is Not a Life Sentence (bestcreditrepaircompanys.com)
• About Credit Scores (clear-your-bad-credit.com)
• Credit scores and mortgage qualification? (jenellecameron.wordpress.com)

5 Secret Stats for Successful House Hunting.

There are some basic statistics that every buyer needs to know, in every market climate. The average number of days a home stays on the market (DOM), average list price to sale price ratio: these and other stats are part of every good/advanced agent’s tutorial for understanding the market and making offers that stick.

But today’s market – hot and heating, in most areas (GTA, downtown Toronto, Hamilton etc) – presents some unique challenges to buyers. In turn, those challenges (e.g., multiple offers, super short DOM, way over-asking sales prices) give rise to buyers’ craving for a unique set of “statistics.”  These data points have the power to help buyers manage their expectations and helps them quickly get up to speed on today’s market realities to ramp up to be successful offers.

This knowledge will translate into fewer unsuccessful offers, fewer discouraged buyers who fall out of the process entirely, a higher close rate, and less of a time drain for you the buyer.

Here are some of the insider stats that house hunters desperately desire or need, in today’s market:

1.  The number of homes most buyers “lose” before they “win”

Have you ever taken up running?  If you just go out there cold, you might stop as soon as you feel the heart-pounding, chest cramping distress of the first minute or two on the track or trail.  But if you do the research first or talk to other runners, you’ll find out that everyone experiences those awful sensations and – more importantly – that they go away once you get through the first few moments of a run.

I call this “normalizing” the distresses and discomforts that so often derail people and frustrate them into giving up on an important life initiative. If you let buyers know that it’s normal for even smart, strategic, aggressive buyers to lose out on a few homes before they are the prevailing bidder in your market, it takes a little bit of the sting out of it. And that keeps them moving forward more quickly to make the next offer. It also scores you some credibility points for being the expert about what’s “normal” in your local market.

2.  Average number of offers per listing 

When most buyers hear that this is a multiple offer market; they panick in fear and are most likely to abandon the entire process thinking that they will never find the property of choice at a reasonable price. But that’s not always or ever the case. What that truly looks like and means for any given buyer in any given market varies dramatically.  If most buyers are bidding against 1 or 2 other offers, that’s one thing. If it’s common to have one or two dozen offers in contention for every home, though, that’s an entirely different scenario.

Buyers should know as early as possible in the buying process about what is normal in the way of competition levels in the various neighborhoods, price ranges and property types in which they’ll be hunting.  That will avoid the sometimes paralyzing fears and feeling of futility that come up when they hear about multiple offers and click their mindsets into reality mode sooner, rather than later.

3.  Neighborhood “run rate.”

You calculate a run rate by projecting mathematically how the current rate of rise in home prices in an area would look like if it continued for the whole year.  For example, if homes have risen 7.5% this quarter, a run rate for the year would look like 30%. A knowledgeable and seasoned agent should be able to provide this stat.

It’s true that home price increases are seasonal, and that spring and summer home price increases will likely outpace the increases the same market will see in the fall and winter – especially in cold weather markets. So, a run rate is not at all a highly precise way of predicting the market’s performance – but it still has utility (see below). That said, in many markets, there’s still a long way to go for the market to recover. As a result, the pace of appreciation might actually continue to increase over a one-year horizon, as the market simply continues to make it’s comeback and buyer demand continues to outweigh seller supply.  So, a run rate is not a terrible tool to use, right this moment, either.

Most buyer may logically understand that they need to be aggressive in multiple offer markets or face the prospect of being priced out.  But talking through the run rate for their target neighborhood can help them understand precisely what that could look like. Instead of just saying “you’ll end up priced out,” in the abstract, a run rate allows you to get much more vivid. “If homes continue to increase in value at the rate they did this quarter, X home that you lost, which sold at $200,000 will actually go for $260,000 this time next year.”

Having numbers broken down this way creates the reality check some buyers need to make their real best offers in heated, ascending market climates like today’s.  Use your best judgment, though, before having this conversation with buyers. Make sure that they know the reality that appreciation could slow after the summer, or not. Also take an approach that creates a reality check vs. using unfounded fear tactics: no buyer should feel scared into buying prematurely or overextending himself or herself financially.

4.  Average pest report repair estimates.

If you as a buyer seek to purchase in an as-is market with older homes or where many of the homes have decks, woodwork or other items that commonly need repair, you may balk at the concept of taking a home as-is and still paying top dollar – despite the fact that the pest inspector is calling for $10,000, $20,000 or even $30,000 of repairs.  But that is the reality of what it takes to be successful on many markets.

Always seek to find hard data to show the average pest report bill in your neighborhood or town – even if you just compile it from your last 10 transactions or jointly with the help pf your agent – as this helps you know what is a standard practice in your area, and makes it easier for you to wrap you head around it.  It also empowers you to make an offer that is competitive not just on price, but on terms.

5.  Inventory rate and direction it’s trending.

The inquiring mind of a buyer with demanding or hard-to-find home feature requirements want to know: what are the chances of finding a home that fits the bill.  As you make offers, it’s critical to be aware on how those chances are trending, numerically speaking.

You need to be aware that if they fall on the picky end of the spectrum, that very few homes on the market will work for them, and that the trend in inventory in their target areas is flat or barely budging, this can change the way you approach offer-making. It may motivate you to loosen the purse strings when you do make an offer on a home that checks all the boxes on you wants and needs list.  It can also help you be more willing to deprioritize some ‘needs’ to non-essential ‘wants,’ when a house comes up that could work for you.

These five powerful stats can help you and your agent make both well-informed and – timed decisions.

For more information. Contact Sam.

 

Five Simple Ways to Play Up Your Listing’s Luxury.

Every buyer, no matter the budget, wants as much luxury as their money can buy – and many times even more. Whether they’re dreaming of Barbie’s Dream house or Tony Stark’s Malibu Iron-Mansion, appealing to the luxury thirst of today’s house hunters is a smart move for both agents and sellers looking to sell for top dollar and fast.

Unfortunately, finding and showing luxury is a lot harder with some listings. Here are five ways to show off the luxury of your listings and put today’s serious house hunters in the high-end mindset:

1. Low cost, high impact staging

No ads, e-mails, or other marketing can help a home that doesn’t show well. To maximize your listing’s appeal to luxury-thirsty buyers, do a walk-through the property to spot the small fixable culprits that are stealing your listing’s shine factor like

• Beat-up fixtures and accessories
• Distracting themed decor
• Overstressed storage

In addition, consider investing in second or third-hand furnishings that will make your listing pop.

“In this era of Craigslist, eBay, Freecycle, estate sales and other peer-to-peer online stores and trading sites, there is an abundance of access to used furniture at great prices…” says real estate agent Samuel C. Anyanwu.

2. Start your shooting with a photo plan

After you’ve tackled your staging issues, the next logical steps are to start photographing and showing the home.

Before you start snapping, come up with a photo agenda/plan that includes these five most-loved listing features:

• Gourmet Kitchens
• Front of House
• Master Bedroom
• Master Bathroom
• Living Room

Chances are, not every listing will have these exact features to show off, but playing up luxury finishes found in the smaller details is a great way to increase your listing’s appeal. For example: Your seller’s kitchen may not be “gourmet,” but focusing on small details, like quality appliances or granite countertops, go a long way toward creating a luxury feel.

3. Light it like a pro (or use one)

There are steps offered as helpful advice for do-it-yourself listing photographers like “Writing down what stands out and what’s going to catch the eye. Then, start early to catch warm morning light and consider staying late to get shots at dusk.”

If you’re going to enlist the help of a professional photographer, be sure to look for one with a portfolio that includes great architectural shots. One great place to connect with local real estate savvy photographers is Houzz.com. Using Houzz, you can find not only professional photographers from your area, but also get ideas for luxury listing shots.

4. Include the luxury of the location

When your listing lacks the premium polish, be sure to sell and show off the luxury around it.

Marketing expert and author of the best-seller Likeonomics Rohit Bhargava wrote, “When you buy a luxury property, you are not just buying your own property but also entry into a particular neighborhood and even a way of life.”

You can sell the neighborhood in a number of ways, like

• Photos – Connect with the proprietors of the community’s most popular amenities. Ask them for permission to add a few of their photos to your listing pages.
• Listing Descriptions – Don’t waste your listing description repeating what buyers and sellers can find elsewhere on your listing pages. Use this space to include mention of points of interest, neighborhood names, and local details that highlight the neighborhood’s values.

5. Get inspired

Lastly, but definitely not least, remember that luxury is a state of mind. Before you can show luxury, you should get to know luxury and get to believe in luxury. You can only give, what you have and one great way to do this is by visiting Luxury Real Estate Blog like this one to see how today’s top agents and clients are marketing their homes.

These are my 5 starter ways to add luxury to your listings. What would you add to the list?

Toronto home prices up 4% in January

Toronto’s evening skyline: The average price of a home is up in January.MARK BLINCH/REUTERS FILE PHOTO

By Susan Pigg | Wed Jan 16 2013

Realtors are “cautiously optimistic” that Toronto’s housing market is picking up a bit of unexpected steam after six months of slowing sales and softening prices.

The number of houses that changed hands in the first two weeks of January was up 2.4 per cent and the average selling price was up 4 per cent compared to the same period a year ago, according to figures released Wednesday by the Toronto Real Estate Board.

The average price of homes sold in those first two weeks of 2013 was $459,728, according to TREB.

“I am cautiously optimistic about this result. It will be important to watch sales trends closely as we move through the first quarter to see if some of the households who moved to the sidelines as a result of stricter lending guidelines are starting to renew their decision to purchase a home,” said TREB President Ann Hannah.

The condo sector was another story: Sales were down about 4.4 per cent — 5 per cent in the 905 regions compared to 4.2 per cent in Toronto — and prices sank by 3.3 per cent.

Semi-detached homes remained in highest demand, showing a 12.2 per cent increase in sales in the first two weeks of January over a year earlier and price increases across the GTA averaged 11.5 per cent, according to TREB.

Sales of detached homes in the GTA were up by almost 5 per cent overall, despite a 2 per cent decline in the City of Toronto. Prices jumped by an average 4.3 per cent.

The biggest challenge remains low inventory, with not enough homes for sale to meet demand, a problem that has shown no signs of letting up since before the recession, says Jason Mercer, TREB’s senior manager of market analysis.

Realtor Duncan Fremlin is seeing that problem play out a number of his clients who would like to list their current homes and move up, but are frustrated by the lack of choice.

“I always encourage people that if they are selling, they can’t get a better time than January and February because there is almost no product on the market,” says Fremlin.

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• Toronto home prices up 4% in January (moneyville.ca)

Downtown Toronto condos show signs of life

Toronto’s condo boom is slowing, but the downtown is showing signs of life.RICHARD LAUTENS/TORONTO STAR

By Susan Pigg | Tue Jan 22 2013

Some Toronto realtors are seeing an unexpected surge in condo buyers scouring the market post Christmas and the return of a phenomenon not seen in months — bidding wars.

“I was shocked,” says ReMax realtor Peter Krpan who advised one couple, first-time buyers, that the softening condo market meant they could take their time and bid low on almost any downtown unit they wanted.

Instead, the couple found themselves outbid this month on their first choice, an 800-square foot condo listed for $324,000 on Queen’s Quay.

Their “backup” — an older, 660-square-foot condo on Victoria St. that had been on the market for 71 days — suddenly had three bidders and was gone before they could even put in an offer.

“I thought, ‘This can’t be happening. This isn’t in keeping with what we’ve been seeing the last few months at all,” says Krpan.

After a dramatic softening in sales and prices that started last spring and was exacerbated by tighter mortgage lending rules that left many first-time buyers on the sidelines, some Toronto realtors are seeing some signs of life in a market that, by December, was virtually dead.

Bidding wars have also broken out the last two weeks in some prime Toronto neighbourhoods where the inventory of houses for sale remains low, such as the west-end Junction Triangle and the east end Beach.

Even the well-supplied condo market is facing inventory issues, say veteran condo realtors. It’s not that there’s a shortage of units, per se, especially given the recent condo boom and the dramatic softening of demand just since spring.

It’s that too much of what’s for sale now are small, poorly laid-out units, aimed at investors, rather than the average buyer, realtors say.

“I think people who have been standing on the sidelines are realizing that we’re not having a crash. We’ve had a lot of clients come out of the woodwork the last couple of weeks,” says downtown realtor Joanna Kalbarczyk.

Kalbarczyk’s client, a young woman, paid over the $323,000 asking price for the older condo on Victoria St. that had three offers. She declined to say how much more because the deal is still being finalized.

Realtors, who have been anxiously awaiting the normally busy spring market, are hopeful this surge means the market is in pause mode — as it was in the nine months after the 2008 recession — rather than a continued decline.

But no one really knows.

Which is part of the reason ReMax has undertaken its first Canadian Homebuying Trends Survey, trying to gauge who’s buying and how that could impact the overall housing market.

The survey, released Tuesday, notes that “purchasing patterns have evolved, with a more conservative, fiscally-responsible purchaser moving to the forefront,” says Gurinder Sandhu, executive vice president and regional director of ReMax Ontario-Atlantic Canada.

First-time buyers are “experiencing a period of readjustment,” says Sandhu, in light of tougher lending rules from Ottawa that cut maximum amortizations from 30 to 25 years and put restrictions on the types of properties the Canada Mortgage and Housing Corp. will insure where buyers don’t have a 20 per cent down payment.

First-time buyers will account for about 30 per cent of purchasers over the next two years, notes the report.

While the report doesn’t break down local markets, it too confirms a significant shift to the downtown core over the suburbs in Ontario, as confirmed by a TD Economics report, also released Tuesday.

That report, by TD economist Francis Fong, notes that double-digit job growth in downtown Toronto from 2006 to 2011 has followed in the footsteps of all those folks who are now opting to live downtown, rather than in the suburbs, close to transit lines and amenities in what’s now become a vital, vibrant world-class city.

 

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SMART INVESTING: A good time to look for investment properties

Now is a good time to enter the rental property market for both residential and commercial buildings.

By Mark Weisleder 

If the real estate market is headed for a correction, then it presents a historic opportunity for buyers of investment properties. The main reason is that interest rates should continue to remain at historic low levels, even as prices fall. The key thing to remember is that the property must have positive cash flow.

What I mean by positive cash flow is that after you make your down payment, the income you receive from tenants is more than what it costs for your mortgage payment, property taxes, maintenance and utilities (if not paid by your tenants). Budget an additional 10 per cent for unanticipated repairs, as these always come up.

If you’re going to take a dip into commercial real estate, make sure, you must have the right team of people working with you. Who do you need? Here are some suggestions:

The right real estate agent: You want to find a real estate agent who specializes in this area and preferably owns investment properties themselves. They can introduce you to their contacts, such as insurance brokers, home inspectors, mortgage brokers and property managers, to protect you when making this investment.

A knowledgeable mortgage broker: You need someone who understands your personal financial situation in advance so that you are aware as to how much you can afford on any mortgage needed to finance any property.

A home inspector: You want a firm that specializes in the type of property that you are interested in. Ask for references and check them out. You need to have an unbiased opinion as to how much you may have to invest in the property itself after taking ownership.

An experienced lawyer: Depending on the type of property, you may need special clauses to protect you regarding verification of income, tenants or even the condition of the property. You will also need advice as to whether to hold title to the property in your own personal name, a partnership or a limited company.

An accountant: Besides tax advice, if there are commercial tenants involved, then you will need to be registered for HST purposes.

Private planner: If you are considering any changes to the property, whether it is an addition, basement apartment, to bring in more income, you need to know before you buy as to whether this is permitted under the local zoning by-laws and what applications may be necessary to get this done.

A building contractor: Renovations to improve your cash flow require someone experienced who can bring any project in on budget. Make sure that you check references and that a proper building permit is applied for in advance on any job. Put everything in writing so that there are no arguments later.

An arborist: Sometimes there are trees on the property that will have to be removed in order to do the renovations that are needed. There are many restrictive tree by-laws out there that may prevent taking down a tree. A lot depends on the diameter of the trunk of the tree. You need an experienced arborist who can advise you in advance how difficult it may be to remove any tree from the property.

A local property manager: You do not want phone calls in the middle of the night to fix something on the property. You need to hire an experienced manager with local ties to where the property is to make sure that your investment is well cared for and that all tenants are properly qualified in advance. Again, ask for references and check them out. Budget approximately an additional 10 per cent of your total expenses to pay for the manager.

By having the right team assembled, you can do the homework you need to do in advance of making such an important investment decision.

Mark Weisleder is a Toronto real estate lawyer. Contact him at mark@markweisleder.com

For your Real Estate Investment consultation; Please Contact 

 

REALTY CONNECTIONS {building wealth using real estate}

Take a look at a list of the World’s Richest People as compiled by any number of organizations such as the US “Forbes 400 Richest Americans“, or Australia’s “BRW Rich 200 List”, and look at where each of these individuals have built their wealth. Whilst these people have generated their wealth from a very eclectic field of businesses and professions, one stands out as more common and re-occurring than the rest: Real Estate!

And for those that haven’t generated their wealth directly in real estate, many of them will use real estate as a secure and solid asset to funnel and further grow their fortunes.

So what makes real estate stand out above all the other asset classes as the vehicle of choice for wealth creation?

There are a number of reasons, but four principles stand out.

1. Leverage

When purchasing real estate, it is not uncommon, particularly for a house and land package, to be able to borrow 80% or 90% of the purchase price. Depending on the location of the land, the lender, and your borrowing position (i.e. whether you already have other assets or secure “professional” employment), 100% lends are also possible.

If you went to your bank and told them that you wanted to buy their publicly listed stock and wanted a loan to do so, in most cases they would only loan you maybe up to 70% on listed stock in their very own bank! And yet this same bank would probably be more than happy to lend you 80% or 90% to purchase a well located piece of real estate.

This is a testament to how highly regarded well chosen and well located real estate is as a secure and solid asset class.

2. A Real Asset – Everybody Needs a Roof Over Their Head

Unlike “paper assets” such as stocks or derivative market instruments, real estate is something real and tangible. It physically exists! Even more importantly than this is the fact that everybody needs a roof over their head, and we all need space and a place to live.

As long as there are people in a given area, there will be demand for real estate.

3. Limited Supply

Unlike virtually every other asset class, real estate is finite. Sure we can always build taller buildings with more apartments in them on the same size block of land, but there is only so much land, and only so much “well located” land near to public amenities, employment, and transportation.

The land component in particular makes real estate such an outstanding asset class because we aren’t making any more of it! Therefore your best real estate investment will generally involve one with a reasonable land component, as this is the component that appreciates most in value. Physical buildings themselves depreciate in value as they get older.
4. Price Inflation

As discussed in point 1, your “leverage”, or ability to borrow 80%, 90% or 100% of the purchase price of a piece of real estate, is only powerful IF it appreciates in value. If it depreciates… you could find yourself owing more than you originally borrowed! Whilst that may be a scary prospect, it is also pretty easy to avoid. This comes down to the correct “Real Estate Selection”, namely making sure that your purchase is:

– in an area of either increasing population or increasing demand;

– close to transport, shops, and public amenities;

– has a good land component to it; and

– is affordable to the average resident in that area

Real estate price inflation occurs for a variety of reasons:

a) Because of underlying inflation in the economy

Ever since the end of the Great Depression of the 1930’s, western as well as most other economies around the world, have been subject to economic inflation. This is the progressive increase in prices for most consumer items, and the corresponding decrease in the value of the nation’s currency unit.

During periods in the 1970’s, 1980’s and early “90’s, many western economies were suffering double-digit inflation, and whilst this may at first sound great to real estate speculators, bear in mind that interest rates during those times were correspondingly often in double digits as well!

So far in the 21st century, most western economies have enjoyed very low interest rates and correspondingly low single digit inflation. This may or may not continue. Nobody has a crystal ball, and we could be in for higher interest rates and inflation in the future, or possibly a return to deflationary times which we have not seen since the 1930’s. We need to be prepared for any and all possibilities. Fortunately, we are not dependant solely upon “economic inflation” for our real estate to appreciate. This is merely a contributory factor.

b) State of the Economy and Economic Health of the Nation

Real estate values also appreciate in line with the overall health of a nation’s economy, and the wealth of its citizens. If a country is enjoying economic success, has a low unemployment rate, and its citizens enjoy an increasing standard of living, then real estate prices for “in demand” locations will appreciate. This type of market is not only dependent on owner-occupiers for price value appreciation, but will also be helped along by investors seeking to build their nest eggs with their surplus equity and funds. The level of real estate investment in an economy is directly linked to the investor’s confidence in their nation’s present economic outlook. As with other investment classes, fear and greed are significant driving forces for investors.

c) Increasing Population

As stated earlier, one very valuable aspect to real estate, specifically the land component of it, is that we aren’t able to make any more of it! If a town, city, or even a particular suburb’s population is on the rise, so too will the real estate values. It’s all a part of the laws of supply and demand which influence the market values for almost every commodity.

This is one to take note of… If there are plans afoot for a new freeway, or a freeway extension, to link an outer suburb to downtown, you might like to investigate making a purchase in that outer suburb BEFORE the freeway is built. In many cases, the land values will increase several years before the completion of planned public works, so the earlier you can catch the wave the better. Such public works need not be limited to freeways or transportation infrastructure. A new shopping center, or any other commercial project or public work that is likely to enhance the desirability of the area, can be a precursor to future capital gains for that area.

d) Limited Supply in an “in demand” area

As touched on in the preceding paragraph, increasing demand for a limited supply of real estate occurs for reasons other than population increase.

Whilst a particular suburb may have been manufacturing oriented, the factories may have closed down as that industry may no longer be viable. If the suburb is in a desirable location, maybe close to the beach or not far from downtown, with good schools, shops and public transport, a process of gentrification may occur and the suburb may start to revitalize as a “café strip” lifestyle area. This will result in the area becoming more desirable to live in, and will attract more financially well-heeled owners and tenants! The net result… appreciation in real estate values.

So now that I have covered some of the reasons as to why real estate values appreciate, let’s touch on why price inflation of real estate in particular can be such a powerful wealth creation vehicle.
It all comes down to that first magic ingredient that real estate provides us with so much of: leverage.

If you purchase a $300K house and land package at 90% loan to value ratio, you are effectively only investing $30K (plus closing & transfer costs) to purchase that asset.

It’s historically quite common for real estate located in the metropolitan areas to double in value every 10 years. This is a compound rate of increase a little over 7% per annum.

For the sake of this example, I will assume a 5% per annum rate of appreciation. At the end of the first year, your $300K house and land package is now worth $315K. Hmm…. not bad you say? Fantastic I say! You only invested $30K of your own funds, therefore you have effectively realized a 50% cash-on-cash gain within the first 12mths. You’d be lucky to make a 5% return if you had instead parked your money at your local bank in a Term Deposit, GIC or mutual fund. This is ten times better!

But this is just the beginning. Your investment is now worth $315K, so let’s roll over to year 2 with another 5% appreciation in value: your asset is now worth $330,750; year 3 $347,287; year 4 $364,651; year 5 $382,884; year 6 $402,028; year 7 $422,130; year 8 $443,236… but wait a minute you say… it’s increasing in value by more than the original $15K per annum which we had after the first year? Indeed it is… because the value of your real estate asset is compounding! The increase in value, given the same 5% rate of appreciation, will become greater and greater as the years roll on.

Can you start to see the power in owning real estate? Now to be fair, values generally do not progress at this rate in a linear fashion. Several years may go by with very little or no capital appreciation, and then suddenly your area may experience several years of 10% or 15% per annum or more in capital gains. This is the cyclical nature of the market at work, but again as stated, it is not unreasonable to expect that well chosen real estate will double in value in every ten year period.

Now the hardest part about building wealth in real estate is making your first purchase. This is the purchase where you will have to find that 10% or 20% deposit to fund it. But once you are “in the game” and own your own little piece of appreciating real estate, you can use the increase in value from your original purchase to make subsequent purchases without having to save up to fund the 10% or 20% deposit in cash for each future purchase. You can simply borrow against the increase in value of your original investment to fund the deposit required to make subsequent purchases.

As time passes, you are creating a snowball effect, and your wealth will continue to multiply given stable economic conditions and well selected real estate in the right location.

For more information and help with building YOUR wealth using Real Estate contact:

Samuel C. Anyanwu.

Dream Maker Realty

Sales Representative/Real Estate Consultant

C: 647 449-4114

E: Samuel_davids07@yahoo.ca / Samuel.davids07@gmail.com

Follow on twitter @samueldavids