CMG Racing

Making money with a “fix and flip” property is a great way to make money in real estate. However, it isn’t about repairing drywall and planting flowers. It’s all about how you do the numbers.

People often buy and sell a fixer-upper without a definite plan. They buy a house, fix it up, then add $10,000 or $20,000 onto their costs. They then put the house up for sale at this price.

Have you ever bought a house according to what the seller has into it? Of course not. You look at similar houses to determine the value. If you have $110,000 into a fix-and-flip project, and similar homes are selling for $105,000, how much will you get? It has nothing to do with what you’ve spent, does it?

The Fix And Flip Formula

1. Determine the after-repair value of the house you’re looking at. Get an appraiser’s help, or look at what similar houses have actually sold for (not asking prices). The price it’s likely to sell for is going to be your starting point.

2. Calculate costs: closing fees, loan fees, document prep, homeowner’s insurance, title policy, repair costs, interest on loans, property taxes, sales commission, fees, title policy, etc. You want projected costs of all four categories: buying, improving, carrying, and selling. Subtract all costs from the expected sales price.

3. Subtract a profit that makes it worth the effort. Now you have the highest price you can pay. You have to walk away if you can’t get it for this price or less. You’ll offer thousands less, of course, to give yourself negotiating room.

A Fix And Flip Example

You’ve found a fixer-upper, and determined you can get $98,000 for it when it’s done. Buying costs will be $2,000. Repair estimates add up to $8,000. Carrying costs will be $2,500. Sales commission and other closing costs will be around $8,000. You figure in $1,500 for the “unexpected.” For you effort, you want a $10,000 profit.

When you subtract all of that from your expected sales price, you have $66,000. That’s the most you’ll pay if you want a safe real estate investment. Offer $61,000, and walk away if you and the seller can’t settle on something under $66,000.

You always start with the eventual sales price and work your way back. This is the right way to safely do a fix and flip.

By: Steven Gillman

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McLaren vs Renault

This titanic duel between the two top flight teams isn’t going to be fought out on the track. In true Stepneygate style, the battling will be done by the lawyers. McLaren accused Renault of having obtained, disseminated and used confidential team information to the benefit of the French team. The hearing planned to go ahead on Thursday this week was first preceded by news that McLaren had been forced to clarify their claims against Renault. Apparently, it was ‘only’ 13 members of Renault’s personnel that had submitted witness statements and not 18 (the point being?). There also seems to have been some confusion has to how many ‘media devices’ had had the information copied to them etc. Hugely significant as this clarification seems to have been portrayed by the media, it really does seem inconsequential. Worryingly for Ron Dennis, the handbags are drawn as this week, the Flav at Renault was quoted as saying that he would sue McLaren for defamation if McLaren’s claim is thrown out by the FIA.

Two things are clear though: 1. F1 lawyers have had all their Christmases for the next ten years rolled in to one and served early; and 2. The single common thread in all the scandals that have rocked F1 this year, sits quietly waiting in the wings for the storms to pass and worm his way towards the next title challenge.

Hamilton and Brawn

The Brits are back! Lewis Hamilton returned to testing after the hiatus following the end of the Championship to lead the times at Jerez during the last test before the New Year. Ross Brawn, Honda’s new head-honcho and former technical chief for Ferrari during the Schumacher glory years, returned to the F1 circus with his latest project. “Finding your way back from the brink – 101″ Tasked with the job of restoring Honda to its, some will remember, rightful place at the front of the grid, he warned of tough times ahead. My projection? Honda will be on the podium before the end of the coming season and mix it with the big boys for race wins in 2009.

McLaren and Alonso – the madness is official

Finally, reports from Spanish media sources suggest that McLaren may be reconsidering their strategy of sacking Fernando Alonso a few weeks ago and offer him that 1 year contract he so desperately wants as he continues to harbour misguided delusions of his chances at vying for a seat in a Ferrari for 2009. Maybe Ron Dennis WILL take him on. And maybe, then, the FIA WILL disqualify McLaren from running next year too.

On the basis of the Spaniard’s conduct this year and the Woking squad’s inability to focus on being a racing team, they won’t have had time to design and build their hospitality suites, much less a competitive car. It would be a shame for Ron Dennis, but just deserts for Fernando Alonso.

For free information on next year’s Spanish F1 Grand Prix, log on to the Barcelona F1 [http://www.barcelona-f1.co.uk] website

By: Selwyn Figueras

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As we near the start of a brand new Formula 1 season, in a month’s time, a few more rule changes have come into effect. In December I had written about the point system change for the 2010 season. (read: Formula One Rules Being Revamped). But a new point system has come into effect after an agreement was reached between the governing body (FIA) and the teams. The Formula 1 Commission accepted the changes proposed after a meeting was held on Monday.

Until the 2009 season, the points for places 1 to 8 were, 10 – 8 – 6 – 5 – 4 – 3 – 2 – 1. Then in December, it was changed to a point system for places 1 to 10, which was, 25 – 25 – 15 – 10 – 8 – 6 – 5 – 3 – 2 – 1. With the latest change, the point system for the 2010 season will finally be 25 – 18 – 15 – 12 – 10 – 8 – 6 – 4 – 2 – 1. The basic idea being that a bigger gap between the points for first and second place will provide more incentive for winning races.

There are also a few other rules that have been changed from this year onwards. Refueling has been banned from now on, and pit stops will only entail tire changing and repair work. Those cars that run in the final 10-minute qualifying session, need to start the race on the same set of tires that they set their grid time in. There was also a move to ban the split level or double decker diffuser. But this change has been pushed forward for the 2011 season onwards. Though it won’t be banned completely, its height will have to be reduced from 175mm to 125mm at the most.

The aim of all the tweaks in the rules is just to make the sport more exciting and competitive. Rest assured, we are all in for a cracking 2010 season.

By: Jarmon Kell

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If money is not easily and abundantly flowing into your business and life, then you have a money-leaks problem on your hands. If money leaves you as quickly as it comes in, then this is a manifestation of the same problem. The good news is, once you strengthen your money boundaries, you will attract and keep more money. Are you ready? Good! For each statement below, rate yourself using a scale of 1 to 5, where 1 is not at all, 5 is absolutely, and “NA” is not applicable.

1. I am discounting my services.
2. I am giving away far too much for too little of a price point.
3. I am letting clients slide on making their payments.
4. I am offering full payment options that are not enticing enough to motivate clients to pay in full.
5. I am late in paying my suppliers or vendors.
6. I am late in invoicing my clients.
7. I am canceling out of programs because I am thinking: “I do not currently have the money”.
8. I am canceling out of networking events too late and for this reason having to pay a no-show fee.
9. I am not supplying and asking my clients to sign a written agreement before I start working with them.
10. I am not speaking with my clients if and when there is a problem with their payment, no matter how big or small it may be.

What the above statements relating to business boundaries have in common is they all say this: “I am not worth charging more or worth keeping what I make”. So, do not let these money leaks sneak up on you, okay! In fact, patching up these money leaks now, along with implementing marketing strategies that are aligned with your life purpose and who you are mean to serve (i.e. your niche), will pay off in the short and long run: both on a practical and energetic level, respectively, by: (1) immediately bringing you more cash; and (2) creating a powerful, authentic energetic alignment with money – with clear, strong money boundaries – that will result in you more easily and naturally attracting more of this “good stuff” into your business and personal life.

Patch Money Leaks: 4 Step Formula

Step 1- Write down the statements that you rated a 3, 4 or 5, and decide which one you want and are willing to address from today until one month from now.
Step 2- Share your intention with your business coach, partner, or a close colleague, and ask them to be your accountability partner.
Step 3- Write down what the (a) worst thing and (b) best thing that you happen from patching up this particular money leak.
Step 4- Fully and actively commit to resolving this problem.

By: Monique MacKinnon

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Over the course of ten years, I have interviewed thousands of employees from all walks of life (many in the sales and marketing fields). What do these people say they want? More time, more money, more freedom, more health, more love, and more happiness in life. Sales people are no different. We all want these same things.

The good news is that sales people are in a particularly good position to claim these things. From my research, I believe that the best way to become wealthy in America is to own and operate your own business. The second best way is to be a sales person. The sales profession is the only one without a limit to the amount of money that you can earn! When you find that right sales position, all you need to do is to dream, plan, and execute and your sales career will soar!

The key question, of course, is this: How can a sales person get more out of life? I have an answer that’s helped many people: By utilizing what I call the Sales Success Formula.

Your Biggest Obstacle:

Before we discuss the Sales Success Formula, it’s important to understand that your biggest obstacle or competition isn’t another company, it’s not another sales person, it’s your own mind. Your mind can either help you or hurt you depending on how you have programmed it to think. Rather than focusing on doubts, on reasons why you might not succeed, you must learn to believe and trust in yourself and in your unique passions.

The best way to learn how to further believe and trust in yourself is to set small, attainable goals and objectives for you to follow daily. As you execute your daily game plan, and accomplish these objectives one by one, over time you will learn that you are capable of overcoming your obstacles and self-doubt. You will find yourself capable of achieving even more far reaching goals. This is how to build internal trust and belief.

Once you have conquered self-doubt and won the mind battle, you will accomplish all in life that you can envision. Your mind will ignite a fire in your heart to execute your plan by taking actions in pursuit of your goals. As you experience this, you will become an unstoppable force of power fully capable of achieving more success and freedom then you could have ever imagined. You will literally rise to the top of your organization and become the person you’ve always wanted to become.

The Formula:

Now that you understand the power of your mind, it’s important to analyze why people purchase goods or services from one organization but not others. If you ask buyers why they awarded a contract to one company and not another, you quickly will learn the key: relationships. People buy from people they like (friends buy from friends). It is that simple. If you want to make more sales, develop more solid relationships. The sales person who is best at developing relationships will ultimately produce the biggest results, period.

To develop more solid relationships, I suggest that you use what I call the Sales Success Formula. The success formula is this:

Trust (T) + Respect (R) + Need (N) + Ask (A) = Money ($)

Like every formula, each part must occur to reach the ultimate goal, in this case sales. Trust is absolutely crucial to close sales. Your prospect may respect your company, and they also may have a need, but if they don’t trust you as a person, they will never buy from you.

To build trust, you must show the buyer that you care about their success. When a buyer learns how much you care about them and their organization’s success, then they will trust you. The best way to earn this trust and respect is to make sure you let the buyer speak 90 percent of the time, and you only speak 10 percent of the time.

Another way to build trust in the relationship is to ask about the buyer and his or her interests, outside activities, etc. Questions can include those about their commute, their working conditions, their family and children, and their hobbies-these and others will give you a better idea of the buyer and his or her interests.

Respect is another key component to this equation. It’s possible to trust someone and not respect them for whatever reason. The best way to build respect is to follow up on action items as promised by responding in a timely manner. Also make certain that you show up on time for all appointments or call if you are going to be late. Finally, always make the prospect know that you value their business.

It is extremely important to qualify need as quickly as you can in the sales cycle because without need (regardless of how much trust and respect that you have established) you will never be able to close the sale. To discover a prospect’s need, ask them if them if they are in the market for your product or service. If they won’t tell you, find others within the organization to see if they can advise you of their need.

All too often, sales people forget to ask if there is a need as well as ask for their business. A buyer could have all the trust and respect in the world for you and your organization, but if they don’t have the need, they will never buy! If this is the case, move to the next prospect and then qualify their need prior to building the relationship.

Conclusion:

To become the top sales person in your organization, utilize this success formula to develop solid relationships based on trust, respect, need, and asking for business. To make this happen, execute your game plan daily and don’t take rejection personally (the word “next” is the most powerful word in this field). If you implement and follow this formula (T+R+N+A=$), you will become unstoppable and earn more money that you could have ever imagined. This increased income will ultimately help you get more out of life!

Patrick Snow is the best-selling author of Creating Your Own Destiny, an international professional speaker, and a publishing coach. He can be reached at (800) 951-7721 or at Patrick@CreateYourOwnDestiny.com. His Web sites are: http://www.CreateYourOwnDestiny.com http://www.BestSellerPublishingCoaching.com [http://www.BestSellerPublishingUniversity.com]

By: Patrick E. Snow

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Kansieo.com

Sport an innovation go hand-in-hand. Ice-skating is well known for its continuous renovations of skates, in swimming the suits gain on aqua-dynamics but what about the Formula One?

Fernando Alonso has won the Formula One Championships twice, for the last time in 2006 driving a Renault. Now after the year with McLaren he is back with Renault and he is quite certain that he will not reach the podium this year. How is that possible? What has changed?

Formula One is a sport unlike many others where not only the players (the driver) matter, but also their equipment (the vehicles). There are few other sports where this dual relation is so profound. This makes it ever so hard to determine where a possible problem lies: is it the driver or the vehicle? “The team reached the pinnacle of performance during the 2005 and 2006 seasons, winning the drivers’ and constructors’ championships in both seasons in an historic double-double achievement.” (1)

Apparently much is due to the vehicle. “The new single-seater has lost superior traction capacity in respect to the former R27.” There are also earo-dynamical changes that deteriorate the agility of the car. (2)

According to the sport-newspaper “Marca,” the Renault team has contracted 526 employees to make the new R28 as much competitive as possible. “Without Alonso, Renault struggled in 2007 because of design flaws in their car and problems adapting to the control tyres that were introduced last season.” (3)

The vehicle is key in winning the championships. “and it is clear that Ferrari’s is one of the best.” (cars, says Alonso). (4)

Apparently Formula One is not only the fastest of races, its innovation pace is also steady. Each year there are changes and innovations to the vehicles and those who cannot keep up end-up behind.

(1) – http://www.hpcwire.com/hpc/2190842.html

(2) – http://www.20minutos.es/noticia/357830/0/renault/plan/monoplaza/

(3) – http://news.bbc.co.uk/sport2/hi/motorsport/formula_one/7136498.stm

(4) – [http://sport.guardian.co.uk/formulaone2008/story/0],,2267946,00.html