S.E.C. Real Estate Observer

The best problem solvers we all have known always asked a lot of questions, didn’t they? Quick solutions were seldom forthcoming, and multiple-choice selections of answers almost never readily available.

“I am not the kind of person who can save money to build an estate.” The author is unknown, but often quoted. It is a fact that it takes money or assets to get started in Estate Building. Many Brokers and Salesmen will admit they are unable to create and maintain a savings account. Money is always needed for short gap emergencies like office rent, family expenses or to close a transaction. Thus, many potential estate builders cannot even get started.

Question: Many people have called you the father of modern real estate exchanging. When did you really see a need for this field to become a specialty? Answer: It was in the latter part of the 1940s that I could see the need to become a specialist in the “people business” to succeed in property, and professionally conduct an exchange and counseling business.

The title of this article is sheer nonsense. It’s a cliché usually uttered by those unwilling to try. “You gotta have money to make money” is an easy “cop-out” for those who lack a positive mental attitude and have no understandable plan for accomplishment. It is true that persons with money certainly have a most proper resource (and money is a resource to the estate-building real estate practitioner).

After we had spent the better part of two days studying the Art of Exploratory Questioning during a class in “The Art of Real Estate Counseling,” one of the students presented me with a 50 cent plaque he had discovered in a dime store that read: “I KNOW ALL THE ANSWERS — IT’S THE QUESTIONS I DON’T UNDERSTAND!”

At this time, everyone seems to be concerned with the future of everything. We have been receiving calls from clients and other interested people from all over the country with the question, “What to do?” Should we keep our money in banks? Do we buy gold, silver and so forth? What kind of real estate should we retain?

Some months ago at a meeting of Exchangors, I offered a “want” for some clients interested in the purchase of units in the $500,000 to $1 million price range. Method of purchase and over-all client objectives were stated. After the meeting, one supposedly knowledgeable broker approached me and said he had a certain package priced at $750,000…

Many Realtors use cash to buy or control real estate for their own account. This program is OK if you have plenty of the green stuff around. However, once you use cash, it’s gone for a period of time, or what Jim Misko of Eugene, Oregon, calls “final spending.” The money is gone and gone probably when you need it.

An interesting technique to start a multiple exchange is often over-looked, and many transactions that “could have been” never got off the ground. I can best explain the technique by referring to a personal experience, a “double in lieu of” and happy conclusion. The important thing is to know the technique and put it to work.

The simple method of increasing income is by working on larger properties. Let’s say, for example, you are an investment broker or salesman who has specialized in selling units (duplexes, triplexes and fourplexes) and they sell from a range of $25,000 to $65,000. If you want to increase your income, all you have to do is upgrade your listing ability to start handling properties in excess of $100,000.