Posted by David Butler on May 04, 2008 at 12:36:04:
I just returned from Las Vegas, where I attended the National Council of Exchangors biannual Marketing Session as a guest of Tom Standen's Equity Holding Corporation (a nationwide trustee for investors using Land Trusts as their acquisition, control, and/or disposition vehicle); which included an opportunity to host two days of roundtable classes for attendees..
The five day session included two days of ongoing advanced dealmaking education that this licensed real estate agent organization requires its membership to participate in (as does its counterpart, The Society of Exchange Counselors); followed by an intense three-day marketing session - wherein the members present deals from around the country, and explore possible solutions for the client buyers and sellers looking to make transactions happen.
This most recent session was one of the more energetic "trading floors" I've seen during my 31 years in the creative real estate investing business.
The enthusiasm, creative problem solving, and intensive dealmaking activity were a welcome and much needed "elixer" juxtaposed against the economic malaise the real estate marketplace is presently in. More importantly, it was hopefully a portent of things to come, as more practioners in the private cash flow and creative real estate investing industries explore the vastness of the marketplace, the players, the diversity of motivations and objectives, and the multiple methods for putting transactions together in a market where cash/credit liquidity is at a premium.
As we, and fellow moderators John Behle and Mike Morrongiello, along with CREO web master Terry Vaughan have pointed out here in the Cash Flow Forum over the years, there is a huge market of mainstream CREI's (and their professional advisers) out there - (I cover this in our RainMaker Workshops as well). These guys actually thrive in difficult markets, and often look forward to the approximate "six-year" down cycles to back around. (Another example was the similar activity at the Society of Exchange Counselors National Marketing Session I attended this past January.):
Dealmakers Deluxe
http://creonline.com/cashflow/wwwboard3/messages/24102.htmlSome good news is that they are just as happy to work with anyone who wants to learn how to work with them, and most experienced folks find them to be a tremendous resource for increasing our productivity. (Interesting side note - coincidentally there was a Real Estate All-Stars Workshop going on in the meeting room right next to the NCE Marketing Session. In addition to having the opportunity to meet a number of my own student acquaintances in attendance at that event, there were a couple of NCE members doing double time by teaching mini-courses or hosting roundtables at the RE All-Stars event as well!).
This is particularly so during times like these, when the credit markets are tight - and more motivated sellers come into the arena looking for ways to dispose of their properties while meeting other objectives that do not focus solely on getting cash out today (tax issues; estate planning; wealth pyramiding goals; creating and/or disposing of multiple ownership interests; consolidation of holdings; or other).
As we've discussed in a series of articles here in CREO's "How-To-Library" since the early fall of 2006, the market has changed to our favor in many respects. There is a lot of private money on the sidelines right now looking for a place to roost. There is a lot of pent-up equity, or functional equivalents, looking for more effective capital utilization.
The foundation of our success (as note brokers note investors and real estate brokers/investors), in times like these is effective marketing and relationship building... coupled with a broader knowledge and open-minded approach to how deals can be structured - and who can help us in structuring them.
Happy Hunting, and...
Have Fun For A LivingDavid P. Butler
www.hotspurinvestmentgroup.com