Housing Blog

Business owners who sell a business, assets held or used in their business, or real estate used in their business operations can face significant capital gain taxes.  These capital gain taxes due from the sale of your company, assets or real property can be minimized or even eliminated with the proper tax deferral or tax exclusion planning in conjunction with your legal and tax advisor.

There are numerous tax deferred and/or tax exclusion strategies available for the sale of businesses, assets and real estate.  It is critical that careful tax planning be a priority in order to properly deal with the potential capital gain taxes that will be generated by the sale of your property.

The 1031 Tax Deferred Exchange May Not Be Suitable

Owners of real or personal property, such as a business interest, assets used in a business or real property that have been held for rental, lease, investment or used in a trade or business, frequently structure tax-deferred exchanges pursuant to Section 1031 (“Section 1031″) of the Internal Revenue Code (“Code”) in order to defer the payment of their taxable gains.

However, tax-deferred exchanges pursuant to Section 1031 are not always feasible, suitable nor appropriate for taxpayers when they are selling their company, assets used in their company or real property used in their business operation.

Section 1031 Exchange transaction structures require business or property owners to exchange equal or up in net sales value by acquiring one or more replacement properties that are of like-kind.  Locating suitable replacement properties to be acquired as part of the Section 1031 Exchange in order to replace the relinquished property (business) can be extremely challenging, very stressful, and virtually impossible in some cases.

The taxpayer may have absolutely no wish to reinvest his or her net sale proceeds into another business operation of like-kind, or any kind, for that matter.   Taxpayers may just wish to “cash out” and pay their taxes.

Taxpayers may have reached a point in their life when they merely wish to sell, cash out, pay the taxes, and absolutely not reinvest in another business, assets or real estate. They may not even want to see another business as long as the live.  Some taxpayers may opt to sell and pay their capital gain taxes in the current year, but many would prefer to implement some kind of tax deferral or tax exclusion strategy that would allow them to defer the payment of their taxable gains over a period of time of their choosing rather than get hit with them all in the year of sale.

Deferring Capital Gain Taxes Without a 1031 Exchange

There are a number of tax deferred and tax exclusion strategies available that a taxpayer can use to defer the payment of taxable gains, so it is important that the taxpayer meet with his or her tax advisor to review all of their tax strategies. The following are the two most common tax-deferral strategies available for the sale of businesses, assets used in your business or real estate:

Seller Carry Back Note (Seller Financing)

The taxpayer could structure the sale of his or her business operation by carrying back a note, which is often referred to as seller financing or a seller carry back note. Seller financing is merely an installment note or promissory note where the buyer of the business entity or assets/property makes periodic payments to the seller. Depreciation recapture taxes, if any, are due and paid in the year the business, assets or real estate were sold. The capital gain taxes are partially or fully deferred over the term of the note and are taxed as principal loan payments are made to the taxpayer.

The installment note or promissory note strategy has positive and negative features. The obvious positive is that you can sell your business, asset or property and defer the payment of your taxable gains by structuring a seller carry back note.

However, the risk of buyer default on the installment note is a considerable negative. The process to foreclose or otherwise take back the business or asset/property can consume significant amounts of time and money and the business, asset or property may have been irreparably damaged during the buyer’s ownership and management.

Deferred Sales Trusts or DSTs

Deferred Sales Trusts or DSTs are highly effective tax-deferred strategies, similar to the installment sale or seller carry back note, but without the risk of buyer default.  The Deferred Sales Trust receives all of the net cash proceeds from the buyer at the closing of the sale transaction, thus removing the buyer from involvement in the Deferred Sales Trust  transaction.  Deferred Sales Trusts can provide other great tax and estate planning strategies as well.

Deferred Sales Trusts are drafted pursuant to Section 453 of the Internal Revenue Code, just like the installment sale note or promissory note in seller financing. The capital gains tax is realized or triggered, but not recognized or paid, because it is deferred over a period of time selected by the taxpayer.

The capital gains tax liability is partially or fully tax deferred over the term of the installment sale note created within the Deferred Sales Trust account, which you will negotiate in advance directly with the Trustee of the Deferred Sales Trust.

And it’s easy to see why Brits love Costa Rica… it is a place of stunning scenery, sunshine and smiles with spring-like weather all year round, no income taxes on foreign earned income, no capital gains taxes, excellent world-class medical facilities, affordable medical plans and populated by the ‘Ticos’ who are an amiable and very attractive people.

Scary ‘Times’ Newspaper Story About Brits in Spain:

1. “Two British pensioners living in Spain have had their home demolished after being given two hours to pack their belongings – reviving fears among thousands of other expatriates that their own houses could be at risk.
2. “We’re devastated,” Mr Prior said. “This has been our home for almost six years. To have it pulled down in front of you is painful beyond belief.
3. “Many villagers watched in horror as the three-bedroom house, which had a swimming pool, was reduced to rubble.”

Since that article came out, the situation has become much worse so now you just one of the reasons know why so many Brits are considering living in Costa Rica.

Good morning my friends …

Costa Rica is located in Central America sandwiched between Nicaragua to the north and Panama to the south just a couple of hours flying time from Miami, USA.

Here are just twelve compelling reasons why I love Costa Rica and why you might want to think about living and retiring here:

1. Low Real Estate Prices: According to the Global Property Guide, in comparison with a brand new luxury home in our area, prices for a used home Barcelona are 686% higher. In Madrid they are 459% higher and prices in Sofia, Bulgaria are 62% higher
2. Thousands of Luxury Flats For Sale For Less Than £200,000: The brand new home that we built in one of the best, most exclusive gated communities in Santa Ana is a two floor 300M2 or 3,228 square feet with three large bedrooms, three bathrooms, dining room, spacious living room that leads out onto a very attractive terrace and the garden, a large kitchen, an office plus laundry room and a maids quarters with bathroom cost only £155,512.
3. Zero Income Taxes: Unlike Spain, if you are living here and receiving income from outside of Costa Rica you will pay zero income taxes.
4. Zero Capital Gains Taxes: In January 2008 I personally sold a home that I designed and built, it was completed in May 2007 and we sold it for 50% more than we paid for it and paid zero capital gains taxes. Unlike Spain, even if you double your money selling your home in Costa Rica, you will pay zero capital gains taxes.
5. Zero VAT: Unlike Spain, there is zero VAT charged on the purchase of a home in Costa Rica.
6. Affordable Cost of Living: In a recent newspaper column, they showed a comparison between the prices of fruits and vegetables purchased here in Costa Rica to the same one purchased in a California farmer’s market. The same food that cost US$8.75 in Costa Rica, cost US$29.47 in California, USA. If you eat a healthy diet full of fresh fruit, fresh vegetables, a little fish, chicken or beef, you and your family will be healthier and you’ll enjoy significant savings on food living in Costa Rica. But, if you prefer to eat highly-processed, imported food, you are going to pay a higher price for that and you are not going to be healthy.
7. Property Taxes:Buying a home in, taxes are 0.25%.it means that on a £250K home. you are paying £625 per year.
8. Is A Politically Stable Country: Unlike many countries in Central and Latin America, it has been a stable and democratic country since it’s independence in 1948. It has no army, and its citizens enjoy one of the highest life expectancy levels in the Western hemisphere and higher living standards than their war-torn neighbors. Costa Rica’s perfect climate, laid back lifestyle, financial and political stability makes look like paradise on earth to many people.
9. Business Opportunities: It’s not just Brits hoping to retire that are visiting Costa Rica. We are also seeing younger entrepreneurs from the UK coming to Costa Rica with dreams of establishing their business here and raising their children in a more stable and secure environment.
10. Affordable Healthcare: Patients from all over the world have discovered the excellent quality of the medical services and they are invariably surprised at the affordability of these world-class professional services. You will find that the costs for qualified, professional medical and dental services are often a fraction of the cost that you would expect in the USA, and the local ‘National Health Insurance’ type care costs less than £25 per month for basic coverage.
11. Crime: The level of violence in Costa Rica is a fraction of what it is in other Central American countries. Unlike El Salvador that has 47.7 murders per 100,000 people per year, Honduras = 46.2. Colombia = 38. Guatemala = 30. Belize = 15. Nicaragua = 13.5. Panama = 11.6. Costa Rica has a ratio of around 10
12. Climate : At an average temperature of 72 degrees all year round in the Central valley area around San Jose, the climate in Costa Rica is just about perfect.

Living Video Interview: To watch this short video with two British VIP Members John and Sheelagh Richards, please click on the small white triangular Play button in the middle of the screen below and allow a few seconds for the video to begin.Costa Rica’s Guide

When you are dealing with multifamily apartment properties, it is very important to understand the different classes of properties. The class that a property is assigned can tell you a lot about the property and if it is worth your time and money to invest in. There are four different property classes: A, B, C, and D.

Property Classes are really set by the conditions of the property and where it is located. They are not set by the appraisers. The classes are not something that is formally defined but more of something that is set in the vernacular.

Class A apartment properties, naturally, are the cream of the crop. These apartments are newer and have a higher rent than apartment buildings that are in the other classes. You can actually have a new Class A property in a Class B area. They are classified as Class A because they are new but they have lower rents than other Class A apartment properties because of their location.

Class B properties are multifamily properties that are 10 – 15 years old, well-kept and are in the “middle class” part of town.

Class C properties are in low to moderate income or blue collar neighborhoods. They range in age from 30-40 years so they have usually been through at least one rehab. The average rent for a one bedroom is $400 – $425.

Class D properties are in very bad neighborhoods. These are in high crime neighborhoods; neighborhoods where you do not want to get out of your car. You generally do not want to work with Class D properties.

If you are going to do Class D multifamily properties, you need to be in that niche. You are not going to turn around a Class D property without turning around the neighborhood that it is in. Class D properties are suffering from a neighborhood problem and not a property problem.

Class D properties are bought only because they are cash flow machines. You will not get any appreciation on them. They require intense management and heavy security.

Class C and lower Class B multifamily apartment properties are your bread and butter and they do not offer many amenities to tenants. The further you go down from Class A to Class D, the better your cash flow. The premium deal is finding a Class C property in a Class B area that you can reposition.

If you could find a multifamily apartment property that is considered a Class D because of its condition but it is in a Class C neighborhood, you would have a great investment deal. In this case, you can come in and clean up the property by either making a physical change or a security change to it. You can buy it low, make the changes that are needed and then sell it for a great profit.

Your understanding of the property classes enables you to effectively assess the potential value a multifamily property has as an investment for you. You can then more easily decide if it is deal that you would like to pursue or not.

The nature of an economic crisis is such that we tend to focus on the sky falling in the short term and miss out on long term opportunities. The current status of the real estate market is one such situation.

Owning a home during the last three years has been a depressing affair for most people. The vast majority of markets have seen prices plummet like a lemming running off a cliff. It hasn’t been pretty and I am not here to lie to you. The immediate future isn’t suddenly going to be rosy. Things will turn around slowly for the next few years, but what about the long term?

Let’s do some basic math. The population of the United States is expanding. People need places to live. It is as simple as that. Market forces are such that they can sway the situation for a short period of time. Keynesian efforts by the government to prop up real estate through things like the first-time homebuyers tax credit are nice and all, but the market will truly recover only when demand turns around.

The short term question you undoubtedly have is when will this occur? Nobody knows and anyone telling you that they do is a blowhard. If markets could be accurately predicted like that, the predictors would be wildly wealth and not giving out free advice! The current crisis is such that we might see a mild turn around tomorrow…in a year…or in three years. It is hard to imagine a full blown recovery in housing until employment figures start to improve, but even that is not a definite indicator.

So, what should you do? Well, the answers are fairly obvious. Real estate will recover in the long term. It might take five to seven years, but values will bounce back up. If you are considering buying now, there has never been a better time. You can buy cheap and ride the appreciation freeway all the way up in a few years time. If you own now, just hold on baby! Values will turn around and you will get your equity back.

It can be brutally difficult to think long term in an economic crisis. When it comes to real estate, however, you must as there really is no other plausible choice.

Here we are, in an economic situation that far overshadows the savings and loan (S&L) crisis of the 1980s, which warranted a bailout to the tune of $150 billion. After a real estate boom between 1997 and 2006 that increased home values faster and far beyond many people’s dreams, a bust ensued that is turning out to be more devastating than the commercial real estate fallout, which was a big contributor to the 1980s S&L crisis.

So, how did we get here? How did we arrive at such scary circumstances? What was it that caused the recent real estate bust and our current economic condition?

On the heels of the Fair Housing Act of 1968, the Equal Credit Opportunity Act of 1974 and the Home Mortgage Disclosure Act of 1975 (HMDA) came the Community Reinvestment Act of 1977 (CRA). Basically, the intent of the CRA was to require banks to make lots of loans to those who lived in the immediate areas of their facilities, and to do so in a fair and unbiased manner.

Although the first three acts were similar in their goals to address discrimination in the areas of credit letting and fair housing, the CRA took it a step further and outlawed redlining. Initially, redlining meant refusing credit for those living in specific geographic areas, typically African-American or low-income neighborhoods. Later, the term was also used relative to discrimination against a people group of a certain race or gender, regardless of where they lived.

Community activist groups advanced the use of the CRA to ensure home loans for low- to moderate-income families. Based on the newly enacted CRA law, these groups began to pressure banks into lowering their standards in making home loans to disadvantaged individuals.

In response, banks buckled under the pressure and lowered their lending qualification standards. The result was the birth of the sub-prime real estate loan market. According to many critics, the CRA has led to the greatest economic crisis since the Great Depression.

That was not the end, however, of the fair lending measures pushed by community activists. In the late 1980s, they took it a step further pressuring banks to make even more loans. Although the banks were willing, they responded that they could not comply, because Fannie Mae and Freddie Mac would not buy them.

Lobbyists for community organizations then began pressuring Fannie and Freddie to lower their lending standards … and they complied. Of course, following those changes, sub-prime lending became even more rampant.

Fast forward to the end of the Clinton Administration. In 2000, nearly half of every major mortgage company’s portfolio was made up of risky, sub-prime loans issued to low- to moderate-income borrowers.

Industry professionals began cashing in on this new prospect presented by the sub-prime market. Predatory lending, liar loans and other opportunities for, and manifestations of, fraud arrived on the scene, many of which are just now being discovered due to foreclosures.

Home values continued to increase dramatically during 1997 to 2006, some into the 124 percent range. Interest rates declined and borrowers were not only buying, but homeowners were refinancing, many included the equity in their homes to pay for home improvements, vacations or college for their kids.

Some borrowers were being approved for home loans that they could not afford. Others were buying homes for inflated values that would later nosedive due to the housing bust. At the same time, prominent employers were conducting major layoffs with increasing measure.

Sometime during the end of 2006, beginning of 2007, foreclosure signs began popping up in neighborhoods and home values started to decline. We were seeing the first signs of fallout of the sub-prime market; although, we had no idea at the time how deep its roots would run.

The stock market was booming, however, still boosted by securities that included sub-prime loan packages. Speculators were reflecting a perception of future value to real estate securities. The rise in stock values overall continued until they peaked out at all-time highs somewhere until September of 2008 when the bottom fell out. Stock prices plunged, some dropping several dollars in a day.

In mid-2008, the sub-prime market died a painful and dreadful death. By third quarter 2008, banks were failing globally. Domestic banks were scrambling in order to avoid bankruptcy, and a U.S. bank bailout ensued. Surprisingly, a large percentage of that bailout has already been paid back by many banks. Around $70 billion of the $200 billion bailout has been reimbursed to the U.S. Government.

If all that was not enough, in December of 2008, former Chairman of the NASDAQ stock exchange Bernie Madoff was arrested and charged with fraud. He was later sentenced to serve 150 years in prison. He bilked billions out of unsuspecting investors through his hedge fund, operating what is thought to be the biggest Ponzi scheme in history.

So, bottom line, what is the cause of the recent real estate bust and the current state of the economy?

Although, the initiators of the CRA had good intentions, once it was enacted, it opened up a whole new world of risk and issues for the lending industry in the form of sub-prime loans. Fannie Mae and Freddie Mac jumped on the band wagon in lowering lending standards, succumbing to pressure by community activists.

Securities that included sub-prime loan packages boosted the stock market. Home values became overinflated. Thrown into the mix, speculators and fraudsters added a perception of value to securities that included sub-prime loan packages.

Real estate values hit the ceiling hard and started to decline. Unemployment numbers were rising significantly. Foreclosure signs began popping up in neighborhoods. The stock market hit bottom. Banks had to be bailed out. Sub-prime lending died.

No, it was not just one thing that brought us to where we are in our economic history, but several factors, many that worked as a domino effect in causing other entities to fall.

In today’s world of breakthrough technology it’s easier than ever to stay connected. Laptops, Blackberries, and iPhone’s combined with social networks like Facebook, Linkedin, and Twitter provide business professionals (especially real estate agents) with powerful tools to not only establish many new relationships but also to stay up to date with those relationships on a consistent basis.

Although these new methods of staying in touch may provide new opportunities for expanding our personal network, they also present many challenges when it comes to staying productive and focusing our energy into activities that really improve our business and our lives. For real estate agents, this is especially crucial because selling real estate is all about relationships.

What can agents do to manage, not only their relationships, but also their time, energy, and health? In this article, we are going to look at three ways that you can begin to manage your time, energy, and relationships in a way that keeps you and your clients most productive.

1. Focus on your biggest opportunities instead of getting caught up in busy work.

It’s so easy to get caught up in the “doing-ness” of day to day activities that we lose sight of what’s really important in our life. All the little things that need to be done cry out for our immediate attention and before we know it the whole day is gone. Sometimes we are left asking ourselves, “where did all the time go?” or “what did I accomplish today?”

The problem stems from a mistaken belief that if we are “doing” lots of stuff, that we are being “productive”. It turns out that how much we do is not necessarily important; it’s also what we do that counts. The specifics of this will be different for each agent, of course. You will have to figure this out based on your own approach to real estate sales, your expertise, and where you have the most success.

For example, you could spend two hours working on fancy business cards and letterhead, or you could call up some prospects that you met at the last open house. Which activity is more productive in the long run? Which one will benefit your business the most? Usually our biggest opportunities lay in wait while we attend to menial day to day busy work. It’s not until we identify our biggest opportunities and make a focused effort to work on them, that we will make real progress in building our business. So ask yourself, “What are my biggest opportunities?” See if you can list 5 activities that will lead to real business results.

2. Take care of yourself and your clients by setting clear boundaries

If you close your eyes and imagine the ideal “successful” agent, you will probably find yourself imagining a person who is not only busy, but also on their phone constantly. A phone that rings often can be a wonderful thing for an agent (especially in this market). So it would make sense for an agent to make him or herself available as often as possible, right? Well, maybe.

We want to be by the phone when that important call comes in, (such as a call from a referral or a call to close a deal), yet we don’t want to be waking up at 2 am to answer calls from wrong numbers or even freaked out buyers (so they can freak us out too). Where do we draw the line when it comes to taking business calls versus unplugging and getting some rest and relaxation?

On the one hand, we want to be available to our clients and serve them as best we can, yet on the other hand we also have to take care of ourselves both physically and mentally. If we mistakenly believe that being a real estate agent means that we have to sacrifice everything (including our well-being) to serve our clients and get the listing, then our health will start to suffer. Then, consciously or unconsciously, we may begin to resent our clients, our work, or our life in general.

If we don’t keep our energy tank full by maintaining health self-care, then we can become sick and tired and unhappy. Guess what that does to our business? Yea, it’s not so good. How can we expect to take care of our clients if we aren’t taking care of ourselves? The answer lies in finding the right balance of work and rest. This means setting clear boundaries when it comes to taking client calls and checking emails.

I can hear the questions already, “but real estate agents must always be available, it’s part of the job, otherwise they may miss out on all the deals!” This type of reasoning is usually coming out of an anxious part of ourself, the one that acts out of scarcity and need.

People like agents who are friendly, knowledgeable, and professional. If you set clear hours of when you are working and communicate them to your client, what you are communicating is your standards of integrity. They may not like it (especially if they go into an emotional frenzy and can’t get a hold of you) but at a deep level, they will respect you. And best of all, you will respect you.

By setting clear times when you are taking calls and checking emails, you establish boundaries and focus your energy. Without clear boundaries, our mind (and energy) becomes scattered and we soon feel like we are being pulled in every direction. Some people call it A.D.D. but frankly it’s just a lack of ability to focus and set boundaries.

Our body will usually tell us when we are done; we get very tired, can’t concentrate well, and become easily distracted. By becoming aware of when our body usually checks out of work, we can create a schedule of times of the day when we are available and when we are unavailable.

Of course, when deals are closing and things get down to the wire, you can make adjustments. The key is to service your clients as best you can while still taking care of yourself. Ask yourself, “what boundaries do I need to set with my clients so that I can be healthy enough to best serve them?” Remember, you are the deal maker, and when you are in a vibrant state of mind with a ton of energy, good things happen!

3. Build recovery into your work routine

This one is related to the last tactic in that we have to stay conscious of our own energy level if we intend to perform with maximum effectiveness. They key with any real estate agent is to figure out “when am I going to stop working and recovery my energy?”

For most regular jobs, a person works Monday through Friday then gets the weekend off. For real estate agents, the weekend is where all the action happens! Yet, during the week is when all the paperwork and follow up calls happen. So it becomes very easy for agents to work 7 days a week without set days for them to rest. Combine this with constant phone calls, emails, and inconsistent commissions; it’s no wonder many agents live under constant stress.

If we are going full speed without any rest, then it’s only a matter of time before we burn out. This is why it’s crucial to set aside time to recover. This means to completely unplug from work and “do nothing” for a little while, at least. Now the amount can vary depending on your level of business and your preference. For some, this may mean taking a month off in another country at the end of each year, for others it could be taking a weekend getaway after a big deal closes, or for others it could simply be a 20 minute power nap midway through the day.

They important thing is to build in this period of recover into our work schedule, one in which we completely disconnect from cell phones, email, and work altogether. We can read a book, meditate, do some yoga, whatever. The idea is that we have to recharge our battery. A good rule of thumb is to take 5 or 10 minutes rest for every hour of intensely focused work.

When we go too long without full periods of recovery, then our capacity to do work slowly and consistently diminishes. So while a certain work-related activity may take us 20 minutes, if we are overworked and low on energy, that same activity could take 50 minutes. Compound this effect over years and you get the idea. By building in set periods of recovery, we return to our work with renewed vigor and clarity. We may have slightly less “work time”, but our capacity to work will be much greater and we will likely do even more work that we could have done otherwise.

Professional athletes are very familiar with this concept. They train hard and then they recover. Then, the next time their capacity to perform is even greater. In the real estate business it’s the same. If you are worried about losing leads during your recovery period, see if you can direct calls to a fellow agent while you rest and do the same for them. Get creative, there is always a solution. It’s just a matter of making your energy and health a priority. So there you have it, three simple yet counter-intuitive secrets to becoming more productive in your real estate business.

Being able to establish a business vision for your company separates you from the other agents who are in real estate. When building a team, you must pause and work to define your business vision. Enduring, successful people and successful companies establish their core values and core purpose. They then remain fixed on those core values and purpose throughout their business life. The changing elements are their business strategy and tactics due to the marketplace changes and competition influences.

Successful people and companies know that it is critically important to know who you are and what you stand for. In many cases, knowing who you are, as a team, will be more important than where you are going. We all will change and adapt as our world changes and adapts. This change is inevitable. The only part about change that is in question is whether it will be evolution or revolution.

Evolution is defined by Webster as: A process in which something passes by degrees to a different stage (especially a more advanced or mature stage). We want to engage in the small, gradual movement or change over a period of time. This type of change only comes from clarity of values and purpose. More effort, energy, and resources can be used to increase success, sales, and production in an evolutionary mode, rather than a revolutionary mode.

Revolution is defined by Webster as: A drastic and far-reaching change in ways of thinking and behaving. The change in revolution is more violent, sudden, and potentially damaging. The vast majority of resources will be used to keep up with the revolution at hand or trying to get out of the revolutionary process. The stress level is significantly higher, and the probability of success is much lower in revolution. By having well-defined core values and core purpose, you can avoid the forces of revolution more effectively.

There has been a prevailing thought for sometime on the value of mission statements. The thought is that you have to build a mission statement for your team. When I ask many experts why they have that view, their answers are less than stellar: “Because good companies have them”; “You just do”; “Your people need something to guide them.” There are a host of others that I have heard regularly.

I have personally coached hundreds of the most successful agents in the last almost ten years. I always ask if they have a mission statement. When they say “oh yes”, I ask them what it is. The phone always goes dead silent. Then you have this rustling of papers as they try to find the document that has their mission statement on it. Once they can’t find it, they try to recite from memory some garbled version of it.

I personally feel that mission statements have little value, and we should abolish their use. Most small business owners’ (like real estate agents) mission statements are treated as something you have to have or do, but you don’t know why you have to have it or do it. The most common practice of building a mission statement for small business owners is to scalp what they like from a large company, like Nordstrom if you have a service mentality or Nike if you like competition or Wal-Mart if you want to serve the ordinary or disadvantaged consumer.

We aren’t building it from within our own views, tenets, and principles of excellence in life and business. For most, we are building the mission statement based on what sounds good, looks good on a brochure or marketing piece, or is made up of the components that another successful company articulates in their mission statement. My best advice is to scrap the whole exercise and start focusing on what you stand for.

What do you stand for?

We can’t look for what we stand for in others. We have to discover it in ourselves. It is not outside in the world around you; it is in your inner world, in your mind and heart. In order for what you stand for to be authentic, you have to search for it. You aren’t asking yourself what you should stand for; you are asking yourself what you passionately stand for.

Let me share with you an example of what I mean. At Real Estate Champions, we stand for hard work and continuous self-improvement. We believe passionately that the quest of self-improvement, both personally and professionally, is one of the noblest callings in life. I personally toil long hours weekly in the quest of self-improvement and building tools, training systems, scripts, materials, strategies, tactics, theories, coaching – the list is endless. I spend additional hours reading, writing, praying, and listening to CDs to keep my personal development in high gear. I have other people on my team, as well, who contribute to this effort.

There is no one in the real estate field who has produced more quality systems, tools, strategies, skill improvement, and business master systems in the last ten years than we have at Real Estate Champions. You can pick any name, speaker, trainer, or coach, and most are still selling the same material they were ten years ago! We have six distinctly different coaching programs, over fifty different training programs and audio CDs, DVD training, internet subscription-based training, five books written on sales success with four of them out in the last eighteen months. We don’t do it because it’s good business; we create new intellectual property and deliver it in many different ways because it’s what we stand for. It is born out of my personal core values and beliefs.

We passionately believe that we need to engage in our own journey of personal self-improvement to impact the world. Once we take on that challenge, we will be able to impact the world around us.

What do you stand for?

Most of the time, choosing a realtor or an agent is the first step for people who’d like to buy or sell properties. Real estate is one of the most complicated industry to deal with and hiring a professional plays a crucial role in the success of your transaction.

Buying or selling a home takes a lot of hard work and knowledge. Hiring the right person for your real estate needs will not only give you hassle-free transaction, but you can also take advantage of the services of an experienced professional. Be cautious though because many agents claim to be ‘experts’ in all areas so it is better to take time to learn about the agent of your choice to see if he can be the right person to handle your potential real estate business.

There is actually a difference between a real estate agent and a realtor that most of us don’t really know. A real estate agent is simply someone who is licensed to handle real estate transaction while a realtor is someone who has joined a Realtor’s association and has a higher standard of laws and expectations by the association in handling real estate transactions.

If you are moving to a new location for your home, using a local realtor can help you big time in choosing the best home that will fit your needs, as well as your budget. A local realtor that is personally involved in the local neighborhood will have the knowledge on the current state of the local market, as well as pre-listed properties. This will give you an advantage of being the first one to contact the prospective seller through your agent.

Take time to assess the realtor of your choosing. Do some research about their background and how much they know about your local market. Meeting up with previous clients may be a good way to start. It is also important that you educate your self about the ins and outs of the industry. This will keep them from talking over you or intimidate you. This will save you time on your search as well as ensure a better chance of finding the perfect home for your needs.

It really doesn’t matter if you are buying or selling a home. Chances are you don’t want to go at it alone and getting a local professional real estate agent to help may be the wise thing to do. Real estate agents that know their stuff bring 3 critical components to the table; 1) market knowledge, 2) in-depth understanding of the process and 3) help with the paperwork.

Depending on whether you are buying a home or selling may have some influence on who you hire as your real estate agent. “Buyer” agents specialize in helping buyers while “Listing” agents focus more on the selling aspect of real estate. Both require extensive knowledge about the real estate market and should be fluent on the process and paperwork however there are subtle differences. A buyer’s agent may be required to travel more looking and screening properties while a listing agent would make better use of their time by marketing and advertising.

Since buying and selling a home can take several months you want to find an agent that will work with you in a way that provides the level of service you desire. Personalities conflict and you may want to find an agent that you “click” with. You don’t want to be stuck with an agent that rubs you the wrong way or doesn’t have the attention to detail that you are looking for. You avoid these types of mistakes by taking the time to interview several agents. A good place to start is to visit a large brokerage firm that has many agents working for them.

Going with the most experienced isn’t always the best thing because you can find great agents that have the drive and knowledge to get the job done that have not been in the business for many years. You still want to check them out but don’t fret if your agent hasn’t been in the business for a long time. We all start somewhere.

Word of mouth is another place to get started when looking to hire an agent in your area. Do you have friends, family, or coworkers you could talk to that have made a recent home purchase or sale? Who did they use and why? Did they like him/her?

Take this step of the home buying process seriously because it could wind up costing your or saving you thousands of dollars on your next real estate transaction.

This summer gave the Vallarta Real Estate industry a big reason to cheer. The tourism sector in Vallarta reported strong numbers with national tourists this summer. The industry is hoping a similar performance with international tourists this winter. The local government authorities have in recent times stressed on a sustainable development model which protects the ecology and nature which is the main attraction of Puerto Vallarta.

The latest figures for tourism released by the Federal Ministry of Tourism indicate a slight recovery in the three main tourist destinations in the state of Jalisco, including, Vallarta. Experts believe that recent investment of almost 60 million pesos in a campaign to promote Mexican tourism to the neighboring countries like U.S. and Canada, and others, will benefit Vallarta with a good number of international tourists arriving this winter. In a positive development that bodes well for the tourism industry, there has been a significant increase in tourist arrivals on cruise ships with six arrivals a week which will soon increase to eight a week.

The president of the Trust for Turism (Fidetur), Gabriel Igartua, stated that the industry is optimistic about the outlook for the winter period in Vallarta. Analysts hope that tourists from USA and Canada will flock to the sunny climes of Puerto Vallarta to take advantage of it’s gorgeous beaches, water sports and ecotourism this winter and hence, will match the excellent figures that were witnessed this summer.

In the view of H1N1 scare, Authorities are taking precautions to deal with any health related issues in the future. The government has set aside a special fund to address any health issues quickly and effectively. This will go a long way in assuring tourists and will send a strong signal that Mexican government is very serious and fully committed to the well being of its guests. This is also good news for Real Estate owners, or prospective buyers, showing that the local authorities are prepared to deal with issues before they occur. Government’s steps in promoting Vallarta tourism and in addressing public health issues show a dedication to maintaining and improving Puerto Vallarta ‘s quality of life and economy up to international standards.

In recent times, authorities in Vallarta have been very proactive in protecting the beautiful natural flora and fauna which offers so much to tourists and real estate buyers in Vallarta. As seen worldwide, any area blessed with natural beauty sees real estate investment and development. Likewise, Puerto Vallarta will benefit from the beauty natural setting of the area. Local government sees the necessity to protect this benefit and promote a sustainable, environment-friendly approach.