10 Common Traits of Real Estate Billionaires

Did you know that 46 out of the world's 691 billionaires made their fortunes in the real estate industry? Well, according to Forbes magazine's 2005 annual list of "The World's Richest People," this elite group have quite a bit in common between their habits, lifestyles, and business styles. Here are some unifying qualities shared by America's richest real estate moguls.

1. Go commercial. Billionaires who make their fortunes in real estate don't do it in residential. They are moguls with an empire of owned and operated office buildings, shopping centers, apartment complexes, and luxury hotels. That strategy works particularly well for "America's richest landlord," 73-year-old Newport Beach Resident Donald Bren, the wealthiest man in American real estate. This self-made millionaire, with a net worth of $4.3 billion, made much of his money as chairman of The Irvine Company, a privately held real estate investment company known for creating balanced, sustainable, quality communities like the 93,000-acre Irvine Ranch in Orange County. Finished plots sell for more than $1 million an acre. The ranch also has 400 office buildings, 35 shopping centers, 80 apartment complexes and 2 luxury hotels. Bren is 6th wealthiest real estate billionaire and the 122nd richest man in the world. He is also one of real estate's great philanthropists.

2. Do more than invest. Making big money in real estate goes beyond buying property and waiting for it to appreciate in value. It's all about improvements. John Sobrato of Sobrato Development Companies calls Atherton, home, but he made his fortune in Silicon Valley - for more than 40 years, Sobrato's SDC has developed real estate in Silicon Valley - specializing in facilities for high tech and R&D companies. Another self-made man, he began in 1953 with one of the first "tilt-up" buildings in Santa Clara County. Sobrato, who owns and manages the buildings it constructs and maintains single tenant occupancy, boasts a portfolio of $1.5 billion. His assets include land throughout Silicon Valley, San Jose, Fremont, Newark and Santa Clara and he has developed in excess of 7,000 rental units.

3. Be able to see the property for what it could be. Just because you buy a shopping complex doesn't mean that's the highest and best use of the property. Know the local zoning codes and be open to the possibilities...Los Angelino Ed Roski did just that. Roski is the founder of Majestic Realty, the largest commercial builder in Los Angeles, boasting an office, retail and industrial portfolio totaling more than 55 million square feet. The USC grad with a net worth of $1.1 billion saw the highest and best use of the formerly blighted area near the convention center and built the Staples Center with Philip Anschutz. Roski is also a minority owner of the Lakers and the Kings. Headquartered in City of Industry, Majestic Realty also has offices in Atlanta, Dallas, Denver, and Las Vegas - where they have a 400-acre business park and 3 million square feet of casinos.

4. Be tenacious and relentless. Billionaires don't let obstacles or pitfalls keep them from achieving their goals. Newport Beach billionaire George Argyros is the grandson of Greek immigrants. Argyros began by running a Palm Springs grocery. He graduated to buying and selling corner lots at busy intersections for gas stations. Turned to apartments in 1968. Today, as part of Arnel & Affiliates, Argyros manages apartments and commercial properties in southern California. He has a net worth of $1.2 billion.

5. Have a thick skin. People can be resentful and jealous of successful people. Don't let criticism of your work deter you from your goals. Consider Red Emmerson - the second wealthiest real estate titan in California. Emmerson is the largest private forestland holder in North America - assets include 1.52 million acres in Northern California, timberland stretching more than 350 miles from Mount Shasta to Yosemite National Park. For the last 20 years, while other logging companies retrenched or relocated, Emmerson, and his company - Sierra Pacific Industries - quietly grew into the second-largest private landowner in the United States. Needless to say, Sierra Pacific is a darling of environmental groups.

6. Have superior information. If you do more research than your competitors, you'll have an advantage in any transaction. Self-made billionaire Carl Berg was a loan processor before investing in Silicon Valley commercial real estate with John Sobrato in the 1960s. He struck out on own, forming Mission West Properties, a real estate investment trust (REIT) in Silicon Valley. Berg owns a controlling stake in the REIT, which focuses on single-tenant research and development and office properties in Silicon Valley. Mission West now owns and manages more than 100 properties, major tenants include Microsoft and Apple Computer. Currently, the Atherton-based businessman boasts a portfolio of $1.2 billion.

7. Don't accept the cards you're dealt. Forbes notes that while one-third of the world's 46 billionaires who make their money in real estate inherited and then grew their fortunes, two-thirds are self-made. Stockton-based A.G. Spanos Companies are known for building, managing, and selling multi-family housing units; constructing master-planned communities, and developing land. Although California based, they have expanded to build more than 100,000 apartments in 18 states since 1960. A.G. Spanos Companies have also developed top-class office space in San Joaquin County. Alex Spanos, owner of the NFL's San Diego Chargers, operates the company with his sons Dean (president and CEO) and Michael Spanos (EVP). Spanos, whose net worth is $1.1 billion has pledged $200 million to San Diego for a new stadium for their football team.

8. Live in California. Of the 21 U.S. billionaires who made their fortune in real estate, more than one-third live in Atherton, Los Angeles, Newport Beach, Palo Alto, or Stockton.

9. Get, and stay, married. Of the 43 real estate billionaires whose marital status is known, according to Forbes, 37 are married, while only three are divorced and three are widowed.

10. Go back to school. Of the 26 real estate billionaires whose educational attainments are known, 20 have a college degree or higher. Five made it on high school diplomas, and one is a high-school dropout. John Arrillaga is a big donor to alma mater Stanford University. Arrillaga + Richard Peery are two of 2 of Silicon Valley's biggest commercial landlords. In the 1960s, they converted farmland into pricey office space. Peery and Arrillaga are lifelong business partners who avoid debt, and the media. Each has net worth of $1 billion."

23 Marketing Weapons For Commercial Real Estate Professionals

It's a jungle out there. You are all surrounded by the enemy vying for the same bounty. The enemy is trying to steal your business or better yet, make sure no new business comes your way. These enemies are disguised as other real estate professionals, the very ones who greet you at conventions with a smile and ask about business. They stand waiting for you to get turned down for business and then swoop down for the kill.

These enemies thrive on competition. These guys are out to get you and get you good. But there is good news - by implementing a dynamic marketing program, you can beat your enemies at their own game! All you need is a solid marketing program consisting of approximately 10 of the Marketing Weapons listed below (part 2 and 3 of the list will appear in the next 2 issues of my newsletter).

Just make yourself a marketing calendar (a marketing calendar is simply a document that lists your marketing weapons and shows when and how often they will be implemented) through the end of the year. Make sure this marketing calendar lists your marketing weapons, the action step(s) required for each one, date(s) when each will happen, as well as a place to record the results. You need to record as you'll soon learn which weapons work, the ones you'll keep.

The 27 Marketing Weapons - Part 1:

1. Competitive Advantage: Make sure you have the competitive advantage within your target market. Be professional, referable, and provide outrageously good service. This is a good example of a daily marketing weapon.

2. Have a prospect List: Have a prospect list, keep it updated, and review it daily.

3. Follow-Up: Believe it or not follow-up is a marketing weapon because 90% of commercial real estate professionals stink at it! The best way to make sure your follow-up is working for you is to review your potential deals, deals in progress and deals under contract daily - determine what action steps are needed, make a list and then block out 1 hour of your time when you will not allow yourself to be interrupted and go for it. And, don't forget all of those things you've promised people you would do. There are many other ways to create a follow up system - call me if you'd like to explore this.

4. Get an 800#: This number is easy to get, and you only pay when someone calls you. You can use it for pre-recorded messages. This is an easy way for anyone to contact you, a way to get some business from Canada (it is costly to call Canada and some people therefore don't), and it gives you a very professional image.

5. Website and Online Presence: This one's easy. Get a website and make it work for you. Then you can send prospects to your site for more information about you. And, while you're at it, give away a free report in exchange for capturing their name and email address.

6. Make an Audio CD Interview: This is cool. Go out and buy yourself a digital recorder (I recommend the Olympus DS-2, $149.00 because you can download the recording directly to your computer and make CD's from there), have a colleague get on a phone call with you and interview you about business. Have a list of questions prepared in advance so there are no surprises. You can then send a CD made from the recording to prospects or better yet, post it on line. This will give a taste for what you're all about. Be sure to capture the "benefits" a client receives when working with you.

7. Host a breakfast: Send invitations to 6 of your favorite prospects and invite them all out to breakfast. Don't be concerned with having them all together at the same time, promote this as a way to meet new people and network - even call it a networking breakfast! Before they leave, in addition to thanking each person individually for coming, give something of value (a copy of your favorite book, a gift card to Starbucks, anything). This is a great tool for a monthly or quarterly marketing weapon.

8. Postcards: Start a monthly campaign. It takes 7 to 9 times for a prospect to see your name before they will pick up the phone and call you. Remember, people do business with those they like, know, and trust. This builds trust and makes the prospect feel like they know you.

9. Speak at Conferences: For those who like to speak, this is a great way to quickly gain credibility. Just think of the times when you attend a conference and hear people speak, don't you automatically view them as an expert? Speak on subjects you are comfortable with, that way it will be effortless.

10. Effective Use of Voicemail: Leave clear, precise and to-the-point voice mail messages. For example, if you have a space you are marketing, state the exact location and request a callback with any interest the prospect may have. Or, if you're calling to confirm a meeting, state that. This eliminates guesswork and allows the recipient a chance to answer the question in the event that you are unavailable when they call. Also, when leaving your callback number please do not mumble or speak slowly. State the number twice. And finally, note that leaving a precise message increases your odds of a callback.

11. Provide Outrageously Good Client Service: Providing outrageously good client service will make you stand out and memorable. Why? Because most service providers do not! Take the time to create a system for "WOW" client service and then don't forget to follow it. This one marketing weapon is worth mega dollars. Go out of your way to go the extra mile. The reward will not only be a client for life, but referrals too.

12. Testimonials/Brag Book: You're probably asking yourself who does this? Exactly the point - you should. Create a Brag Book that consists of testimonials, letters of recommendation, descriptions of deals well done and even a list of deals completed. I can tell you few people have this and most clients love looking at them, and it will make a prospect feel like he or she is working with a pro.

13. Publish a Newsletter: This works, and I am proof! Consistently get good information in front of your target audience. Add value by providing information that would be of interest to your readers. Send it monthly, bi-weekly or even quarterly. For those that don't know how to do this, I will be offering a free class coming up soon and I will give you the step-by-step process!

14. Host Teleseminars: This idea came to me last week. I realized how cool it would be for you to host a teleseminar (a group call lead by you on a specific topic). For example, 7 Steps Leasing an Industrial Space. Or, Don't Get Caught in a Bad Location - 5 Strategies for Site Selection.

15. Have a Marketing Calendar: This simply means you map out in the beginning of the year or at the very least on a monthly basis, all marketing action steps you intend to take, the date (s) they will be taken, and the desired result. This can be written in a calendar, made as a spreadsheet or whatever. The point is to plan ahead and then follow through.

16. Post on e-bulletin boards: Although I have never carried out this particular marketing weapon, it is my understanding it can be quite effective. Just Google bulletin boards in your target market and begin answering the questions posted. This will then make you "the expert" (see #9). Prospects who participate in these types of informational exchanges will begin seeking you out - I promise.

17. Write a Free Report: Add value always. Your clients and prospects will profit by receiving a free report from you loaded with useful information. An example is "10 ways to Profit From Purchasing Your Own Building"; or, "7 Strategies to Choosing The Perfect Retail Location". At the end, add a paragraph on the benefits of using you to assist them in their needs. (Hint: make it all about them.)

18. Be an Expert: This is a no-brainer! Everybody wants to work with an expert. List 10 ways you can become known as an expert in your niche and then start checking each one off as you accomplish it, and before you know it, you will be "the expert!"

19. Ask: We so seldom remember sometimes all that's needed is to convey our need - more business. Don't be bashful or shamed because you are asking for business. Ask and you shall receive. If asking catches your tongue, write up a script or two ahead of time and you'll do fine.

20. Prospect Letters: Have an arsenal of prospecting letters you regularly send out. For example, if you notice a business acquaintance has changed jobs, send him a letter and offer to sit down and share some of your knowledge about his new territory. Or, mail a prospecting letter to your key centers of influence asking for referrals. But remember, if you don't follow up with a personal phone call the prospecting letter will be less effective.

21. Word of Mouth: Learn how to work into casual conversations that you have just finished working with a couple of key clients and now have room in your schedule for a few more. Even better, spell out who an ideal client is. Let your peers know you'd like additional business and in exchange you will be mindful to send business their way as well when you can (get in the habit of referring).

22. Offer 5 FREE Consultations: By this I mean call up 5 prospects and offer to sit down with them over a cup of coffee and talk about their current and future real estate needs, no strings attached. Give a suggestion or two towards the end and then walk away without asking for business. The key is to follow-up, ask how it's going and oh by the way, can I be of service to you? This works like magic.

23. Write a Book: Nothing will position you as an expert faster then writing a book - you will have instant celebrity status. If writing isn't your thing, record it and have your assistant transcribe and edit it.

How to sell your house?

Every viewer is your potential buyer. Each viewing must be prepared for and you may have a viewing as soon as your house is on the market. Therefore you need to have the bulk of the house preparation completed prior to this so that you simply need to refresh your house when you have a viewing. Otherwise you may be caught unawares with an immediate viewing, not be ready and in effect lose a buyer.

Firstly consider the whole house - have a spring clean: get rid of clutter from every room including the loft. For any clutter that you want to keep store it in neat cupboards or boxes. Clean every room thoroughly. Cleaning the carpets with a hired carpet cleaner is cheap and gives the carpets a new lease of life.

Do any repairs that have been waiting and touch up any marks on walls or if necessary repaint to give the room a fresh look. Viewers can be thorough in your inspection. Also clean the fridge, the oven and make sure any inbuilt cupboards are tidy and well-organised. A property sells for thousands of pounds. Investing a small amount and putting in the time to spruce up your home may save you thousands when an offer is made.

Once the house as a whole is ready view each room individually. Ask yourself what is this room used for. Is it obvious to a stranger? For example, the dining room or area needs to be clearly defined as one - not a playroom, or a storeroom or a hobby room. Your sitting room needs to convey an atmosphere of comfort and relaxation. The garden needs to appear well-cared for and be inviting.

First impressions are hugely important so you must view the house as a viewer will see it. Start from the outside and ask what the house tells you - is it well cared for? Is the garden tidy and inviting? If not, dig up the weeds, mend the gate, have some pretty flowering pots. Get rid of or neatly tidy away any unattractive garden furniture.

On entering the house you will want a viewer to feel excited about living in your house. If the entrance is a dark hall, consider placing a small cozy lamp on a small table or shelf. Show the best room in the downstairs first - ideally the kitchen. It should be sparkling clean,coffee on and have fresh flowers on the table. Another key room is the bathroom. Again, make sure it looks fresh with clean linen, no clutter and new shower curtains. When you think you are ready to sell your home, ask a friend to look round your house and see how it can still be improved.

With the final adjustments made you are then ready to have your house on the market and to have those all-important viewings.

If an agent is selling your home it is best if you are not there - let the agent sell your house. If you are showing the viewers around your home show them around each room and sell the home subtlety. And then, give your viewers privacy to look around the house themselves.

In order to sell your house at the best price and as quickly as possible prepare with care. Good luck!

Tips on Selling a Home - Follow These Tips and Sell Your House Fast

If you're selling your home you want it to sell fast and for the highest dollar. There is some work that needs to be done on your part to get it to do that. Some success depends on the market and economy but there are many things that you can do to make your home the one that sells. Here are some tips on selling a home that are pretty straightforward.

Hire an agent. Agents are professionals and should know real estate better than you. If you don't think you can handle the pressure of selling your house yourself, enlist an agent with your best interests at heart. Don't be afraid to interview several before finding one you are comfortable with.

Look at your house from the buyers point of view. Would you buy it? Sometimes there are things that we would overlook because we're used to them, the spot on the carpet, the cracked paint, the scratches on the door frame - the buyer wont. Make sure your house is as spotless as it can be. Your house must outshine all the others in the neighborhood.

More tips on selling a home.

Get rid of the clutter. You only get one chance to make a first impression. Make it a good lasting one. Make your house look like a model. Get the stuff off the counters, clean up the garage. Prospective buyers like to see clean open spaces so they can think about putting their stuff in the house.

Increase the curb appeal. What does your house look like from the street? Most buyers will make drive bys before setting appointments to come inside. Don't turn them away at the street. Make sure your lawn is well groomed. Plant some flowers or put flower baskets at the entry way to welcome the new owners.

Get out! When the house is being shown, get out and take the pets with you. You want the prospective buyer to feel like they are walking into their new house, not yours. It's a good thing to remove any personal items like pictures also. You can have a box in each room that you place personal items in when the house is being shown. Take the razor and comb and brush off the bathroom sink.

Lose the emotions. When it comes to negotiations, take your emotions out of the situation. The potential buyers may have some plans for the home that you don't like, but it will soon be their house not yours. Don't let your emotions cloud your ability to turn over the keys.