Connecting the Dots

Posted July 6th, 2007 by Joe Kaiser

And they can't listen to their guts because their guts don't have a clue.

Dear Rob,

I talk to a lot of folks who want to get started in real estate as investors.

No, they aren’t interested in exploiting people, as your office suggests; they’re interested in providing for their families and their futures.

Not bad things.

They buy a course or two and off they go, out to make their fortunes.

Some even ask me to give them a hand and show them the short-cuts, and I’m happy to because I know succeeding on their own isn’t likely to happen any time soon.

the dreaded learning curve

There’s a learning curve to this investment business and successfully negotiating that curve is never easy.

Real estate investing is filled with subtleties and nuances that beginning investors cannot possibly recognize. That means they not only miss opportunities, they miss the warning signs that can and do point to trouble ahead.

And the results are not good.

zero instincts

Additionally, they have no instincts so practically every situation they find themselves in is out of their comfort zone. And they can’t listen to their guts because their guts don’t have a clue.

They end up making poor decisions based on flawed assumptions and either lose their investment or find themselves completely in over their heads.

It happens all the time.

connecting the dots

People new to real estate investing have no ability to connect the dots.

It’s a skill essential to investing and with the ability to connect dots, we can recognize and take advantage of situations people without those skills could not possibly understand.

Real estate investing?

It’s all about your ability to connect the dots.

Not so crazy

Several years ago we did a training class in Santa Barbara and a buddy of mine, a local competitor, sat near the front of the room. He’s a pro in every way, successful, smart, good looking (sorry, he follows the blog) and someone who knows how to connect dots.

Heck, he does that for a living.

I’d introduce a new training concept and while the majority of the class took notes or listened intently, I could tell he already had a pretty good handle on not only where I was headed, but how the whole thing turned out.

After getting just a word or two out of my mouth and before I could even catch my breath, he’d have the “end game” figured out, even if it took 12 steps for him to get there.

Now, there’s a guy who can connect dots, and the look on his face told me all I needed to know . . . he’s got it.

and there’s the problem

Your office, in terms of real estate investing, has all the instincts of a brand new investor, and that would be none.

Not only does your staff not understand what’s in front of them, they jump to all the wrong conclusions because they have no ability to discern anything beyond the most basic of concepts.

As mentioned earlier, flawed assumptions make for poor decisions.

And what do poor decisions lead to?

Disasterous conclusions.

no wondering

Having an AAG involved in this matter who’s unfamiliar with the concept of real estate equity, as we witnessed in one settlement meeting?

One has to wonder about her ability to connect the dots.

She can connect two dots. She only knows of two. So, her thought process goes from “foreclosure investor” to “scam,” and that’s it.

Her job is done.

It was that easy.

And in her mind, the dots were successfully connected. That’s why saying . . .

I don’t know what they do, but I know it can’t be right.— Unknown AAG at settlement meeting

. . . makes perfect sense, to her.

Dots connected.

Not surprisingly, that’s also why we’re involved in a consumer protection lawsuit where no consumers have complained.

Dots connected.

Poorly, but connected just the same.

a real estate background is needed

Rob, your office has no ability to recognize our business models and without the skills to connect more than the above-mentioned two dots, is completely in over its head.

I’m not putting your people down and it’s not their fault. They simply are not qualified to do this job. Were they so qualified, they never would have tagged us as scam artists.

Kindly bring someone into this investigation with a real estate background.

Preferably, that’s someone with the ability to connect more than the two dots that take you directly from “foreclosure investor” to “scam.”

It would make things a lot easier for all of us.


Joe Kaiser

2 Responses to: “Connecting the Dots”

  1. David Alexander responds:
    Posted: July 6th, 2007 at 1:04 am

    You know Joe, it’s funny how people always asume that to make money , especially obscene amounts of money there has to be something wrong… Somebody must have been harmed in the process…

    I remember the first time it clicked for me over 10 years ago.. that what we do is not different that what folks do on ebay today… we take advantage of uneven markets… if you look up lighters on ebay… Sometimes You’ll find some that sell for $500 – $1,000 or more…

    The crazy thing is some collector went garage selling and bought that same lighter for a buck or less…. Why, because he had superior knowledge… he knew what he was doing after years of doing it… the time that most people want give up studying their craft…

    Does that make him dishonest… Heck No… the person at the garage sell just wanted a buck…

    Or how about a store that buys a truckload of closeouts and then creates some superb marketing campaign and makes ten times their normal profit…

    We as investors have simply learned to buy from a market that no longer wants their property and move that property to a different market that is willing to pay retail….

    Why because we have spent and will continue to spend the time and money it takes to continue our education… So, that we may take advantage of those uneven markets

  2. Glenn responds:
    Posted: July 6th, 2007 at 8:21 am

    I agree, I got a free old HP Calculator and sold it on ebay. Thought it might be worth a few bucks. SOLD for a lot more. Went to a garage sell and found another one for ten cents. Yes I bought it. Turns out they are selling for hundreds. Guess I need to turn myself in to the local AG.

    We do still live in America don’t we? Where it’s OK to make a profit?
    Seems like we just celebrated July 4th, guess it’s just a paid holiday to some.

    Well, as David does and says… Keep on educating yourself. And many thanks to Joe for help in that process!

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