Providing Value for Customers in Metro-Detroit

You need to provide value to those that you’re working with otherwise you will not succeed. This seems so simple yet so many people disregard it. How are you providing value to your customer? If you don’t have a clear answer for that question, you better figure it out. Customers are getting even pickier now and are buying even less. What makes you stand out from the competition.

In the hey day of spending and consumption, you didn’t have to watch out for your customer as much as you do now. You had a product, people were probably going to buy it because everyone was buying. You could be rude, you could not really innovate and you could still succeed on some level. Those days are over my friend. Today you better be able to explain to your customer why they should work with you or why they should buy your product.

Price Competition
The singe biggest thing that people try to do when they want to set themselves apart on business is to compete on price. This is the single hardest item to compete on with consumers and you better have vast resources, processes, and technology at hand (think WalMart). There is almost always someone out there that is willing to take less of a profit, is willing to work with less overhead, and is willing to figure out how to produce, ship, and market their product cheaper than you. My advice for you is to have a competitive price but don’t compete on price. In other words, you can still have a reasonable price but add value to your customer in other ways.

Customer Service
It doesn’t matter what business you’re in. Customer service matters. If my company sells you a house in Detroit, we need to make sure that we are in contact with you to make sure that you understand everything about the purchase, that the transaction runs smoothly, that we’re available for any questions you might have, and that we’re there to help you with any challenges you might have. If you’ve ever worked with him, you’ll see that Drew Sygit with The Lending Edge is very good at this.

Extra Added Benefits
Are you just providing what everyone else provides or are you adding in extras that make your product or service a must buy for your customer? If you’re selling a house, are you just selling them the house? Why not add in extras like a rehab estimate, a desktop appraisal, all of the pictures of the house you took, a checklist you took of the house, video, a free eBook of exit strategies or managing rehabs in the City you sold them the house, and contacts to contractors, Realtors, appraisers, property management companies and anything else they would need. Why not send them a gift basket congratulating them on their purchase? What can you provide your customer to make them feel like they got the best deal ever and that they would never buy from anyone else again? Note that all of this doesn’t have you competing on price.

We’re in a challenging market but that doesn’t mean it has to be a bad market for YOU! Entrepreneurs and innovators thrive in markets where everyone else says you can’t make money. By the time the public as a whole sees that the economy is turning around and that it’s a good time to start a business or invest in real estate, you will be dominating the market. I’m not talking about any big radical ideas here. These are sound business practices that top businesses use every day. When are you going to start?

Jared Pomranky

Renegade Detroit Investors – Metro-Detroit Entrepreneur Club
Get your Free Report on Detroit Investing

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Busting Blight for Profit & Fame

Is it possible to make money off real estate while being socially responsible?

We all know about the housing crisis and what it’s doing to home values in Metro Detroit.

As a result, the number of vacant foreclosed properties is growing and blight is spreading. Traditional blue collar areas have been hit especially hard as manufacturing jobs decline. Drive down any street in one of the cities that border Detroit and you’ll see vacant properties in disrepair.

The city of Detroit is the biggest mess of all, but seems to have several parties working to stem the effects of foreclosure blight. We met one of them at last month’s meeting called Peace Tree.

I now introduce to you another, Urban Detroit Wholesalers – as featured in Sunday’s Detroit Free Press.

What would it take for you to leave everything you know behind and start a new life in one of the worst cities in America?

If you have a hard time imagining this, spend a few minutes talking to Jeanna Kiehle at the registration table of Renegade Detroit Investors. She wasn’t mentioned in the Free Press article, but she followed her husband Jeremy Burgess to Detroit when they came here in 2007. She left family, friends and a great job behind to follow their dream.

You may have heard the story of how the Aztec conquistador Cortez, burned his boats when his army landed in Mexico in the 1500’s. He did it to make sure his troops knew they had no choice but to succeed.

Jeremy & Jeanna didn’t burn anything when they got here, but they did come with the “failure is not an option” mentality. They’ve survived several setbacks & failures, but remain upbeat and positive about their decision.

They may have found their calling when they met John George of Blight Busters. They’ve teamed up with him to turn trashed properties into cash. Now, they’re making a positive impact on the city of Detroit, while making money flipping houses.

Not only have they gotten involved with Blight Busters, but they’re also planning to organize other nonprofits and groups to improve a city that’s only been their home for two years.

If these two can come here and make this much happen in only two years, what’s your excuse?

What’s holding you back from jumping into real estate investing? The fear of failure?

If that’s the case, I suggest you either team up with Urban Detroit Wholesalers or hire them to mentor you. Don’t bother them though, if you’re afraid of hard work and success.

Drew Sygit

Drew Sygit is President of The Lending Edge and holds mortgage industry designations CMPS, CMC, CRMS, CMLO, CALO, has an MBA and is an approved industry instructor. He’s spoken for HUD, has written numerous articles and is a mortgage industry advocate for loan originator licensing and consumer education. He can be reached at 248-356-3739, dsygit at TheLendingEdge.com or read his blog: Drew’s Mortgage News

[tags]detroit,free press,blight busters,non-profit,success,real estate[/tags]

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When I became a Renegade

I have always known that something wasn’t right about what I was learning in school and even much of what my parents were teaching me financially. I studied and worked hard to learn it anyway and was diligent like a good boy should. All the while I knew it wasn’t right. I didn’t know what wasn’t right; kind of like Neo in the movie, The Matrix.

Some of you may laugh at the comparison and I know that many of you know exactly how I feel and can identify with the feeling. This didn’t stop me from doing exactly what I was taught to do and doing it well! I got all A’s, I worked really long and hard hours, and even enrolled in college at one point. I did all of this in an effort to be financially free and independent. Of course it didn’t work.

In the mean time I met my wife Jeanna and the thought of financial independence started to become an obsession. Luckily for me, my best friend Jason found an answer, real estate investing. While in Iraq Jason read some books on real estate investing and getting out of the rat race. He came back fired up about investing in real estate and his enthusiasm infected me as well. That was the exact moment I became a Renegade.

That was a little over 4 years ago and it seems like a life time. I have learned so much and an entire new world with different rules has been opened up to me. Rules that make sense, build wealth, and feel right; these are the rules that make me a Renegade. As a Renegade I also understand that building wealth is a long term strategy and not a get rich quick scheme. I was brainwashed for 25 years before I decided to head down the Renegade path and I have no regrets. Most importantly, I have learned to have patience with myself as I continue to unlearn years of bad programming.

For those of you wondering if you have the Renegade mentality, let me be specific. A Renegade Detroit Investor doesn’t care if the economy is good or bad, he just makes money. A Renegade doesn’t trust the government with his health, retirement, or progress; to hell with social security. Last but not least, a Renegade Detroit Investor immediately distrusts what the majority sees as safe and practical and knows instinctively that the opposite is most likely true.

For those of you who feel the same, you are not alone. Come join 50 Renegade Detroit Investors at our next meeting. The path to being a Renegade Detroit Investor is a path that starts scary and ends up feeling like you are walking home.

Make your life uncomfortable,
Jeremy Burgess
The Detroit Market Expert

Metro-Detroit Real Estate Business Group
Metro-Detroit Real Estate Blog
Detroit Real Estate
Get your Free Report on Detroit Real Estate

[tags]renegade, real, estate, independent, financial, free[/tags]

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Identifying Opportunity in Times of “Crisis”

“When written in Chinese, the word ‘crisis’ is composed of two characters – one represents danger, and the other represents opportunity.”

Now I’m not fluent in written or spoken Chinese so I have no idea if this is correct or not but it makes a very good point. Throughout Michigan in the past couple of years, even more so in Southeast Michigan, I have heard newspapers, workers, and everyone else state that our economy is in some form of a crisis or another. I’m not arguing the fact that we have significant challenges with our economy and the real estate market right now. What I’m arguing is where our focus should be.

Whether we have an auto industry “crisis”, housing “crisis” or any other sort of “crisis” there are two ways to look at it. While keeping the challenges with any situation in mind, I always choose to focus on the opportunity. We don’t face “problems” throughout our day, during the week or even with our economy, we face “challenges”. When we have challenges, we will analyze and overcome them to see an opportunity or more importantly, create an opportunity. When we see problems, our brain stops working and we all get in a slump.

There is tremendous opportunity for all of us if we just open our eyes and see it. If you can’t see an opportunity, create one for yourself! We’ll get nowhere if we just sit around and wait for something to happen, wait for an opportunity to come around or wait for a deal to fall in our laps. Don’t be the person that looks back 5 years from now and tells all their friends about the opportunities they missed and how they could have bought that business for pennies or they could have bought that house for a tenth of what it’s currently selling for.

There are more opportunities in Metro-Detroit right now for entrepreneurs and real estate investors then there has ever been. You just have to know that there are opportunities and there are challenges to overcome in seizing those opportunities. We can act scared and timid in real estate and business right now or we can be bold, realize our challenges for what they are (something to overcome), and take advantage of all of the opportunities before us.

Entrepreneurs don’t focus on the danger, they focus on the opportunity.

Be a Renegade,
Jared Pomranky
Renegade Detroit Investors
Metro-Detroit Real Estate Group – Renegade Detroit Investors main site
Metro-Detroit Real Estate Blog – Renegade Detroit Investors Blog
Detroit Real Estate Deals – Deals and market info
Free report on Detroit Real Estate Investing – Investment Secrets

[tags]michigan,economy,market,opportunity,mindset,crisis[/tags]

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The Real Estate Race is On

Real estate investors are getting spoiled with all the great deals currently available in the market.

Foreclosures and short sales have been driving inventory up, while home buyer demand has been down.

How much longer can it last?

A recent report from the National Association of Realtors (NAR) showed home prices falling from a year earlier by the biggest margin in over 40 years.
US sales price of existing homes

The same report also showed that the Pending Home Sales Index, based on contracts signed in December, surged 6.3 percent to 87.7 in December, the first increase since August.
US Pending Home Sales Index

So, home selling prices are down and sales are up. Is that any surprise?

Real estate investors aren’t the only ones looking for deals in this market!

One might be tempted to believe that best buying opportunity of real estate in our lifetime is over.

Not so fast. Did anyone follow the news back in November that FNMA and FHLMC were suspending foreclosures? How about their announcement they were extending the suspension to the end of January, 2009?

FNMA & FHLMC did this to give homeowners more time to work out loan modifications and stay in their homes and to also score political points by not evicting people over the Holidays.

The result though, is a backlog in foreclosures and a coming final surge in REO’s hitting the market. The increase in demand for housing will be overrun by this surge in supply and housing values will drop further and hit bottom.

Of further note, Wayne County Sheriff Warren Evans announced Monday, February 2nd that he would indefinitely halt foreclosures. This too, will contribute to the backlog.

What’s all this data mean? The housing market hasn’t hit bottom yet, but appears to be getting close. Rising home sales will soon put a floor under housing values as consumers grab deals on homes. The coming surge in REO’s this summer will probably be the best buying opportunity of our lifetime. Once the market hits bottom, it’ll stay there until there’s an increase in jobs.

Investors need to get out there and buy, buy, buy before the rebound! These are times when millionaires and fortunes are made, but remember – it’s almost impossible to time the market. Soon after the market hits bottom, the excess inventory will be absorbed and prices will go up. Then the question will be, when do investors sell their inventory and cash in?

Drew Sygit

Drew Sygit is President of The Lending Edge and holds mortgage industry designations CMPS, CMC, CRMS, CMLO, CALO, has an MBA and is an approved industry instructor. He’s spoken for HUD, has written numerous articles and is a mortgage industry advocate for loan originator licensing and consumer education. He can be reached at 248-356-3739, The Lending Edge or read his blog at Drew’s Mortgage News.
[tags]real estate,market,bottom,inventory,nar,reo,fnma,investors[/tags]

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