IT’S MY BIKE

By Roberta M. Standen
North American Loan Servicing,
And Equity Holding Corporation, Midpines, Ca.

Roberta Standen is the co-owner and operator of North American Loan Servicing of Midpines, California. An accomplished author, lecturer, Member National Council of Exchangors and Qualified NCE Counselor, and NMS (National Marketing Specialist), “Bobbie” is also former real estate broker, sales trainer and long time loan-servicer. She is the co-owner with her husband, Thomas K. Standen, of Equity Holding Corporation, one of the two 501C corporations acting as Trustees for the NARS PACTrust™ and NEHTrust™. Responsible for the making of many millionaires, Roberta Standen’s wit and wisdom is considered among the finest in the real estate investing and note buying industry.

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It’s been 15 years since I first spit out the words, “IT’S MY BIKE.” Since then I’ve been known to repeat those words often as an affirmation, to shout them to the backside of a slammed door, and to whisper them cautiously but determinedly under my breath (and usually through clenched teeth) upon hearing the words, “Why not? Or why should I?” But, I’ll never forget the time I first uttered the phrase.

Several years ago managing dozens of aggressive independent, highly motivated real estate agents had become a formidable task. Those who did the least expected the most and those who did the most demanded the most, and that their not-so-beloved broker capitulate to their every whim, and that they be given all sorts of concessions and bargains in order for them to get the listing, keep the listing, close the deal or save the escrow. You know…things like reducing commissions to the office, paying for the home warranty policy, and the replacement of a hot water heater…whatever they thought it should take to make them whole, despite the damage to the company.

Worse than narrowing the margin of profitability, however, was the awful realization that as a broker I was compromising my own integrity and running scared half the time. I was constantly afraid of loosing agents, loosing income, loosing listings, loosing sales and loosing escrows…when the actuality was that I was gradually loosing self-respect… as well as my sanity! The agents would bellyache about floor-time and balked at staff meetings. They continually whined for me to increase their commission percentages and/or to supply them with more and more space, materials and services…for free.

But then came that morning. The morning I walked into the office, called a staff meeting and boldly said-“Mark this day well on your calendar folks. The party’s over! From this day forward we are going to run this business the way I want it to be run. All of the nonsense is finished. No more will I allow buyers, sellers, agents, competitors or anyone else to control my company.”

Well, as the new operating plan unfolded, I thought I was going to be hung in effigy or tarred, feathered and run out of town on a rail, but I didn’t care. They hollered and yelled. They threatened to leave and/or to sue. Some even cried. When they demanded justification for my actions, I gave it to them without delay. To this day I don’t know where the following words came from, but in answer to the demand, I rose to my full 5’2” stature and out from the recesses of my soul, came the words-“The ONLY justification you will get, or for making my policy decisions, is this-‘Because IT’S MY BIKE!’”

From that day to this one, I have guarded “my bike” cautiously and carefully, never again allowing anyone to control MY business, MY clients, MY finances or MY time or MY life. And neither should you! As an independent professional in your own business, never forget that -It’s Your Bike!

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So, now you have made the decision to enter the real estate acquisition business, this is a truly laudable and courageous step for you, particularly those of you who have little or no experience or background in banking, real estate or in the financing field in general. Yes, it does take courage to step up and out of the mediocre-to stretch your boundaries, to get out of your comfort zone and plunge into a new venture. By now, you have probably purchased more than one “Get Rich Quick” course, attended a seminar or two and commenced the learning process, gleaning all you can as fast as you can. But, never forget that our profession is an honorable one, a potentially profitable one. and above all (even though you may be brand new at it) it’s YOUR business. It is indeed YOUR BIKE to ride and enjoy any time, in any manner and at any speed you deem to be honest, ethical, profitable…and fun!

Departing a bit from the analogy, let me firmly remind you that investing in, and acquiring, income producing real estate is indeed a business. Although, I am pleased to say that in our business we needn’t purchase expensive equipment, furniture and fixtures, or lease a building to operate from. We are the free ones, never tethered to any particular geographical area, office or staff. Our business doesn’t even require a structured formal education. What an opportunity! For what we do, all one really needs is a calculator, basic knowledge of how money moves, a telephone, a mode of transportation, determination and a real NEED to succeed.

Our “stock in trade” is our ability to negotiate and to put transactions together. Although a “game” in the broad sense, it is not a frivolous one-it is a business, and it’s your business. And just like your bike it will take you anywhere and as far and fast as you want to go, and you’ll get there when you choose to. And guess what? You can also stop and rest anytime and anywhere you wish (I find Jamaica and the Virgin Islands a nice place for that this time of year).

And here’s the best part … you are free to choose whomever you want to ride with and for how long. In reading posts on several discussion groups, and after visiting with investors all over the country, I am always surprised at how many have the perception that “profit” in our business is somehow intrinsically devious or unethical. It may be my imagination, but there does seem to be a commonality to this concern. The conversation often goes something like this-“What will the buyer think if they find out at closing that I negotiated the purchase for $5,000 less than their purchase price. Or…what will the seller think if they find out that I negotiated a sale after acquiring the property from them, and made another $10,000 for myself?”

Hello! This is called a PROFIT folks! And profit is honorable (or was the last time I looked). This is the American entrepreneurial business model. There is absolutely nothing wrong with making a profit. A transaction need merely be a Win/Win for everyone involved. The seller should receive what he agreed to and the buyer should received what he agrees to and for what he was willing to pay. And you, the businessman or woman, are supposed to (and expected to) make a profit. Hey, IT’S YOUR BIKE!

When I buy a sack of sugar from Mr. Potts, my local grocer, I have yet to ask what he paid for it and you know what? I don’t care. I wanted and needed the sugar (and it’s none of my business what Potts’ wholesale price was). Likewise, I can’t imagine the wholesaler who sold the sugar to Potts, asking the price he plans to sell it for, or demanding to know what profit he plans to make.

Can you imagine the wholesaler calling Potts and saying, “Hey, I heard you sold that sugar and made $50 a sack…whus’ up wid’ dat?” Do you really think he cares? Do you think I care? Do you think I have the right to know? Also, how can I possibly be intimidated by Mr. Potts, or suffer his rejection when I buy the sack of sugar? In your own situation, keep in mind that you are a buyer cruising down the street on YOUR OWN BIKE, persistently and aggressively looking for a seller who is motivated for whatever reason. Maybe he just needs to unload something that is seen as a very heavy burden for him, but something can be converted to your cash cow. What an exciting concept!

Another woebegone episode might go something like, “The seller won’t give me the information on the property that I need. He wants to know what I’m going to do for him, and with the property, before giving me any information!

What’s that all about? It’s like going to the Doctor and asking him what the diagnosis is before telling him the symptoms. If the Doc asks you where it hurts or if you have a fever, and you reply, “I’m not ready to divulge that information until you tell me what kind of shot your going to give me,” are you going to get what you went for? No! Most of the time when the seller refuses to give you the information you need, it’s because he doesn’t have the real “DNA” for your services (i.e., “Desire, Need and Ability”). In such a case, your next move should be simply to-Get back on Your Bike (it IS you bike!) and start peddling as fast or slowly as you wish down the same street until you find someone who does have a “Pain” and the right DNA, and understands that you have the “Cure” for it.

A bit of caution here-don’t expect your ride to always be smooth. There will inevitably be at least a few bumps in the road. There will be times when you get going too fast and ignore or fail to see the warning signs and plow right into a parked car or end up in a ditch. If you blow a stoplight, you might get a ticket or even get smacked by someone coming from the opposite direction. But whatever the interruption, you just have to get up one more time than you fall down. take your lumps, get back on your bike, keep on peddling and learn from your mistakes. And never, but never, be attached to any end-result.

Another caution-before boarding the bike, make sure you have a destination (a goal) and a map so that you always know where you’re headed and how you’re going to get there (plan of action). and then develop a passion to be the very best in the business that you possibly can be (determination). Long before you ever thought you would, you’ll be removing the training wheels and riding free…making a hard right onto Success Avenue and right into the parking lot of the United National Bank to deposit your profits. Remember IT’S YOUR BIKE! And it will take you anywhere you ever want to go, including the Virgin Islands, Jamaica and financial independence.

Enjoy The Ride!

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