Finishing well is a sign of maturity

Most people knows more than they actually do. So often times, the best encouragement is "just do it" and "just get started". At least you have a chance to succeed - otherwise it's just another "thought" wasted.

Recently I have a few unique opportunties to observe a few startups including my own. Inevitably sailing across the ocean, we will encounter rough seas and unexpected weathers. I have seen too many incidents of too many people giving up. Or started something with good intention but never finish it. What they missed out is the best lessons and rewards lie in persistence. Ability to preseve through extreme hardship not only builds character but is a sign pointing to a major break through coming.

Finish it and move on. Open a book and finish to the last page. Start a club for one year then finish it with one year. You can change the pace if things gets bored or don't go well, accelerate it to finish. You will learn much and gain much!

If "startup" provides an opportunity toward success, finishing well would be the secret sauce of reaping the rewards of success. Remember to finish what you started!

Issues with certain Brokers

Got a call from a friend having issues with certain broker-led syndicates. The broker made a killing but leaving those who brought in dry and sorry.

Why do brokers often get a bad rap? Often they put themselves first and not put their client first. You call and they told you to look at the property on your own. They put up signs but never filled the flyer box for the client they represent. They don't hold open house or go out market or show properties. No wonder the property just sit on the market for 3 months, for 6 months, and on and on. Are they doing justice to the owner that gave them the listing?

Same thing can be said with fund raisers or investment bankers. They bring you in to an investment and once they make their lucrative sum of money, they are out first leaving you dry. Misalignment of interest is everywhere.

It's funny though in all real-estate, mortgage, and stock broker/dealer licensing that it is specified that they DO HAVE A FIDUCIARY to act in the best interest of their client.

Now, I know a good broker in Missouri that did everything possible including fixing things up to get a property bought. I know a good broker in Alabama that's working hard through title problems trying to help us sell. There's plenty of good broker.

So I don’t think it’s the broker job per se, there are good broker and bad brokers just as there are good owner and bad owner. I believe it’s in attitude. Do you have a bad "broker" attitude or good "owner" attidude?

Here are some of the tests you can do to find out if you are using an investment broker:

1. find out if they themselves put any money in (are they at risk)
2. fidn out if they have an advantage over you (do they honestly disclose it first)
3 find ou if things go bad, are they first one out (are we on the same boat? do you try to make an effort to get their client out first and them next?)
4. find out in the event of conflict of interest, how they would work: would they put their self interest first or their fiduciary interest first

Now, in line of "be-do-have", let’s contrast the self-interested “broker” attitude with the good “owner” attitude below:

"While we cannot promise your results, but can guarantee that your financial fortunes will move in lockstep with ours for whatever period of time you elect to be our partner. We have no interest in gaining an “edge” over you. We want to make money only when our partners do and in exactly the same proportion. Moreover, when we do something dumb, I want you to be able to derive some solace from the fact that our financial suffering is proportional to yours"

How do you like that? Do you see the difference? We all will have our ups and down (some worse than others), but isn’t it wonderful to have someone with that kind of philosophy being your broker, manager, and manager?

That’s what we are looking for and what we strive to emulate. Again attitude & competence both are necessary. I know at one time I may have good attitude but not competence and competence but not good attitude and they don't work. Need both.

Now bonus questions: who first said the above "owner/partner" paragraph?

Positive Attitude Revisited

Now, positive attitude doesn't mean that you smile and be mellow all the time.

There are plenty of different ways to have positive attitude - find one that you can naturally grow into.

There are the quiet ones: who never says much (and therefore don't complaint either) but quietly deliver the results. There are the supportive type that just by being there lends you the strength when you are in your most difficult hours. There are the social ones: who can not cease chattering and dispense admiration and their passion to you. There are the stiff lip ones, on the outside they may seemed distant and firm. But they are someone who are very competent and can be trusted and they take responsibility seriously and care. Then there's the boy of wonder, who is always curious, full of a-ha, appreciating all sorts of new learning and applications.

There's even the constructive critic. The difference being a complainer complains and ends while the constructive critic provides criticisms of the weakness and provides thought provoking questions that guide us deeper in our quest and/or provide several innovative or value-added suggestions.

Bottomline: one with positive attitude gives or inspires, the other constantly takes or saps energy.

Are you ending your criticism with positive suggestions and thought provoking questions? Read More...

Blue Ocean Strategy

Do you have a "Blue Ocean Strategy"? If you are involved in a cut-throat/competitive business envrionment (in a sea full of blood and cost-cutting), your mind may be lifted up by this book by two professors in France. They introduced a concept called "value innovation" - which I had called "creative win-win" is the key to it. It's not about incremental value-adds but innovative value creation where all parties gain value from a new hereto untouched front (the blue ocean). Thus renders competition in red ocean meaningless. It's a good read. The challenge for a startup though is the tough VC questions of "what's your market size? is it a proven market? who are your competitors". If you say yes, you are entering the Red Ocean. If you answer no you have no competitions, many VCs will worry about market risk and lack of reality check on the side of entrepreneur's ego. But of course, successful entrepreneurs thrive in the pardox and bootstrapping. In any case, ask yourself this question after reading the book: what value innovation are you introducing to your company? Why is it an innvoation? Why does your strategy create significant value in your ecosystem?

Launching 10 week Apartment Study Group

How to start participating:

Read the chapters before Monday of each week and then follow the following format and post on this discussion forum: yesinvestor.com: Guide to Buying and Selling Apartment Building

Format:

1. Check in: what did you learn last week? What was your a-ha last week? What went wrong and what went right in life/work? What did you learn from that?

2. Main Point: what in your opinion are the main point for this chapter? What else did you find to be a profound new insight that you want to share with your classmates. What really life example supports your observation.

3. Questions: what questions do you have that you do not fully agree, need clarification?

4. Request: what is my goal next week. "

Read More in Buying and Selling Apartment Building Forum.