All the answers to your porblem--even you Ed-- - Posted by Shawn Knowles

Posted by Dave Holls on July 15, 2002 at 24:47:23:

I saw this was reposted here, so I thought I would repost my thoughts here as well.

LOL. My goodness. Boy was I in for a surprise when I happened to just pop in and check out the board tonight. I think you have enough energy for the entire board. Don’t get me wrong, that’s great, but reading your posts it seems like your only arguing with yourself. The responses you have gotten were not that bad - believe me, I have been visiting this site for years.

Now, I don’t know you. I can only take you at your word. But I do have a few comments to make, some suggestions, and a lot of questions.

To start I will tell you just a little about myself. I have been visintg this site, on and off, for I believe about 5 years. I have only been really participating for the last 1 1/2 years. I am a Realtor. I got my license when I was 19. I have been a Realtor for 5 years now. Making your own business is tough. During that time, I have dedicated myself to learning everything I could about my industry. Taking the classes, reading the books, sorting the truth and facts from the myth and lies. But even as I was doing that I still needed money. So I worked other jobs - usually overnight jobs that didn’t conflict with my business (delivering papers, security, wharehouse, cleaning, etc.) I still needed to eat and pay my bills. To make a long story short - I have begun to make the turn as far as my Realtor profession is concerned.

During this same time I have begun my own second business investing in real estate. Being in the industry, I realize the unboundless potential of being involved, rather than just assisting others. So along with everything else, I have worked on this seperate business and have also begun to make the turn.

As far as goals, I am with you man. Let me tell, I have no problem believing your goals, because mine are ten times as high. I have goals that I can’t tell anyone about because of their sheer unbelievability. I have about 10 different business that I plan to open in my area. All of them are completely viable, will be succesful, have a demand and no competition. I have revelutionary plans for my Realtor business, along with my Broker to quadrupal our production in one year. I have unbelievable plans for investing in the local real estate market and tying them in with my other business - and I’m talking about billion dollar complete projects. Can all of these things be done? YES. Can I actually do them? YES. Will I do them? OH YES!

What’s stopping me. Nothing, but I realize I have to do 1 thing at a time. Or at the very least do things in the proper order. Like I said I am already planning for billion dollar business plans - but I know that they will come out of million dollar plans - which will come from hundred thousand dollar plans - which will come from thousand dollar plans. Now you can, as I am planning on doing, do multiple plans at once to get there faster - but you still must do things in order.

To date I have completed Zero real estate investments. The first one that I am close to wrapping up is a 30+ unit apartment building at over $500,000. Yes, my first! So believe me, I understand you talking about not just starting out small because that’s what everyone does. In fact I have talked with Ed Garcia about this deal (By the way Ed, if you read this I will be contacting you extremely soon). You may ask him if you like. You talk about creative ideas, I talked with Ed about an idea he had never used before and he’s been doing this for as long as I’ve been alive. So believe me when I say I DO know where you are coming from.

But, but, but, but, but…everything must happen in order. Now, that order can, and usually is, different for everybody. So nowbodys way is the only way. But there are some constants. You have to eat and maintain your life. And you have to be able to supplement you business with income to make it grow. Now if you only took scrap jobs to earn just enough - fine. But you will need something.

Now, lets talk about your post. If you are willing, I would love to hear about your plans, ideas, thoughts, whatever. I certainly won’t shoot anything down. And in case you’re worried, I am in the Metro Detroit area - not in you area :slight_smile:

First, I can tell that reading these books and listening to these speakers has got your head in the clouds. TRUST ME…I have heard them all. They all speak to the Realtor industry, and there are even some who ONLY speak to the Realtor industry. I know how they operate and how they get there connection with the audience. I know you won’t believe it, but you have your blinders on and are going 100 MPH in circles! That is the plain truth. It is entirely clear from your posts. Now bear with me, I am not trying to put you down, but I have to be honest with you.

I mean I want to talk about some of the things you posted by you fly through about 20 different business and they all run together, and you are saying some incredible things. I don’t even know where to begin. Lets start here - you say you are willing to lose everything you have, including the roof over your head to achieve your goals. This is obviously the work of motivational speakers. You may think you have found the light in your life, but listen to that statement. You know, sometimes the roof over your head IS what you need to achieve your goals. But you are just willing to throw it away. You don’t know what you may need, you haven’t even started yet. Motivational speakers operate the way they do to motivate you. Yes they say if you’re not happy with your life just change it. They are motivating you to change. If they said, well don’t watch as much TV, would that motivate anyone - no. They have to be over the top to capture your imagination and make you think you can change. But boy, you sure took every word they said and ran with it. You don’t have to be destitute to be succesful.

Think of it this way, how long could you go on like this. Don’t you think it would be a problem if you went in to present a business proposal and your pants are torn, your shoes have holes and your shirt is filthy - and you can’t fix any of those problems because you have $0.00. Who in their right mind would even listen to you. You must remember, and believe me I hate this myself, but until you are in a position to have something other people want (money, succesful business, track record, etc.) you are at the mercy of others. You must play by their rules. Now there are ways to make them think you are playing by their rules, but really be serving your own ends. But that doesn’t mean you can shun the world and still make it.

Now, here is something I don’t understand. You say you have no money and done no deals. But in this post you say in your first 4 days you turned 80k in PROFITS. What is this you’re talking about. Then you go on to say, you just let it fall apart so you could concentrate on getting funding. Now seriously, I hope you left something out of this sentence, like a few paragrpahs, because this sentance alone temptes me to disbelieve everything you have written.

Towards the end you say you had a way to make you auto shop an extra 15 million in profits a year, but they wouldn’t listen to you. Again, I hope you left a lot out. First of all what kind of “auto shop” makes millions in PROFITS to begin with. If hope this is some incredibly niche, high end auto shop. And how could they be operating in such a way as to be missing out on millions more. This is frankly unbelievable, and especially if all else is true, that they wouldn’t listen to you. I WANT to believe you, but there just has to be more info.

There is so much more I would love to talk about. There is just so much I can’t even comment on it all. It is getting late here, so I have to get going. I may not have been as accurate or explained myself the best, so please don’t jump to any conclusions. I have been rushing trying to get this out. If you would like a better explanation on anything just ask. Again, I AM NOT TRYING TO STOP YOU, OR PUT YOU DOWN, OR CHANGE YOU!!! But come on, you need to tone down just a bit and see the forest for the trees. I’m sure you will respond, and I look forward to talking with you. Maybe tommorrow I can continue and better express my thoughts. Keep on working towards your goals.

All the answers to your porblem–even you Ed-- - Posted by Shawn Knowles

Posted by Shawn Knowles on July 14, 2002 at 17:54:54:

Ed first of all I would like to thank you for taking your time to reply to my message with so much thought, I really do appreciate it!

Ed, in response to your message and all the messages I have been getting I feel that I need to open eveyones mind a little bit and shed some light. You wrote me:

"Cal Balto, gave you some sound advice. There was no doubt that his post demonstrated that, he’s been there, done that."
As I appreciate Cal’s response, but I disagree I don’t think it was sound advice. The people of this nation are so quick to assume and are held back by their own limiting beliefs. Limiting beliefs that are developed through life from ones own trial and error, because he failed it holds no water with me, is he the best there is? NO. You guys are so quick to judge and you assume what you see on paper without giving it any thought that it might be possible.
No offense, but it is because that is the response that I get from everybody that has led to my determination to complete the following goals in my life.

  1. Create California’s largest real estate investment firm using niche investment strategies
  2. By 2006 I will create a success course in which I will show people how to rid themselves of limiting beliefs and show the nation the awesome power of creativity and certainty.
  3. By the time I am 30 I will have developed a grant program for young entrepeneurs who have the passion and drive, but are turned down from virtually every source available. I will offer them a way and a means to achieve their success.
    I am willing to lose everything I personally own and have including the roof over my head to fulfill my goals. I am not worried about the money I know it is coming were I don’t know, but I will continue my creative search until I get it. In my search for funding I had to be really creative which in turn has proven to be very beneficial, I have developed some awesome investment strategies which I am not even willing to share. (Ed I will make you an exception, personally write me and give me your email address and I will provide you with some information which might blow you away, everything I have attested too and a lot more than you would probably believe)
    In attempts to save my fingers I am going to cut and paste below here a letter to which I had sent to a few venture capital companies which will clear up and prove wrong a lot of things to which you guys pre-judged me on. And by the way Cal the dollar per square foot here runs from $115-$125 I have an agent I work with that pulls all of my comparable market analysis, and I run a few of my own. I began start up on April 13 2002 in which in four days I had structured 80k plus in profits ----- long story but I had gotten a call from C.J. at promising me $250,000 in 72 hours----- well anyways I decided to let the deals fall through and work straight on my funding---- I know it’s hard to believe, but I will provide proof if you would like. The first house I called on was 40k under market value which I had structured with seller financing—but I don’t like talking about it because it’s a little hard to believe especially when you assumed who I was just off of my last letter.
    I have knowledge in:
    wholesaling, quick flipping, rehabbing, bird dogging, sub lease options, lease options, sandwich lease option, financing, seller financing, foreclosure/REO, notes, judgements, adverse possession, exchanging, partners, wrap around, balloon, hard money, venture capital, hedge funds, seller lease back, multi family residence, whole sale lease purchase assignment, Intermediaries,cooperative assignment, SBA, subject to, hybrid sub-lease option. And you can mix a lot of them up to make really big profits. I have been taught by Bruce Norris, Claude Diamond, Peter Conti etc. I found a personal mentor out of Florida which was an 11 year veteran of lease option. I have combined all the experience of these men and put them all together and pulled the best practices out of each. I admit I need to learn the smaller details which I will obtain from experience. I have a proposal going to AHA housing out of San Diego which has 75 million AAA credit which does lease options, but they are working with buyers agent. I am going to propose to them working with investors, in which I set up the tenant/buyer and the home which I get on a pure option contract then I set the two together and sell the assignment of pure option to AHA housing for a flat rate of 10k per.
    Anyways here’s that letter I was talking about:

I am who I am
know me before
you judge me.

This comes out of frustration of working with a world focused on their own limiting beliefs, that they deny what is real. You doubt yourself and your capabilities to the point where you hinder others!!! I would highly doubt you know what I am talking about. I’m not gonna bother explaining if you don’t know.

There is one thing that I am certain in life, and that is my success! I know I am going to be a very powerful force in this nation, why… because I have made a decision I don’t turn around I don’t back track, I don’t care how I get there all that matters is that I get there and am able to show the people of this world the awesome power of determination. You can read this and laugh and take it all as a bunch of hype—but you know what you are a fool who has a lesson to learn! Deny me I shake it off as it was none existent it pushes me harder. I have been denied 100’s of times in two months it did not slow me and it did not phase me. What has brought me to this point of frustration is your knowledge as to what can be achieved, your pre determined standards that create success is pitiful. I will give you an example in a couple of paragraphs.

Does being 21 yrs. of age have anything to do with my ability? Does the fact that I have brought my company from conception to start-up in less than two months a worry? Does the fact that I have never bought a house or never even cared about real estate previously before these past two months prove that I won’t be successful? Do you realize that because someone has money they can pay someone to write a proposal or a business plan that is perfect for you, and you accept it??? I don’t have money, I don’t have the luxury of sliding by easy.I have to work and spent countless hours to gain the things I have achieved in my company. I have been my own marketer, I had to learn how to be a webmaster. I had to learn how to be the best investor from the best investors. I had to scrounge wood from a construction site to make my for sale signs. I had to learn how to write proposals my original one 2 or 3 months ago was about 2 sentences long! I had to learn how to be a writerr, I had to learn what venture capital was, I had to learn equity and debt, I had to train my mind to think like a millionaire, I had to invest in myself through countless numbers of books and tape courses to learn what is required to be successful, I have obtained the knowledge that is required to be successful, I have to be flexible in the way I get there so that I can get there, I had to become a computer technician to fix my computer after it crashed spending countless hours a day trying to recover… only to lose all the information I had, I had to recover all the information that I had written, I had to run my business while I spent so much of my time attempting to get funded! just so my business does not miss it’s goals!! I have to do this from my small room, where I set at my desk and can touch my bed and my entertainment center at the same time, I have written and re written my proposals 100’s of times to try to find the right words to say that would change people’s opinion. I had to contemplate hours trying to figure how to make people understand. I had to lose countless hours of sleep to mantain my course of progress, I have denied going to work for someone else and initially putting myself in the uncomfort zone so that I can achieve success, I have stayed in contact with lot’s of lenders, brokers, mortgage lenders anybody who had the ability to create my success. And I loved it all!
All I knew is that I was willing to re write my proposal a 1000 times till I got it right, I created a vast knowledge of real estate to the point to where I can look at a house and know what I should pay for it, without being told a cost, I am sick of rewriting proposals and this will be my utter and last one!! If nothing comes of this then I will go it alone without any of you. Let me ask you this now, is it fair that because I cannot afford the luxuries of having someone do my business plan or proposal that I had to work my ass off .to achieve, is this person a more likely candidate??? Do I really have to open your eyes like this? There is one thing I am certain in life and that is where I am headed regardless of any circumstance nothing can get in the way of my dreams! I have felt the success, I feel the success (I’m not talking money) I will live the success! I have claimed my position on earth and will not let you nor anybody else take it from me! I am in this world to be a role model, I am in this world to show others like me that have the passion and the drive that anything is possible.

Desperatly trying to get others who don’t personally know me to try to believe in me, is almost an impossible task. I asked myself why I am chasing after lenders, this is wrong I am going to make them money and I am doing them a favor. Yet you judge decline and fail to see the incredible power which one person can exude. You judge by mere words on a piece of paper, you are a fool! Is words what makes a man successful? No it’s not, it’s the will of the man. I am a man of complete honesty and integrity who has a natural passion to help people in their lives, yet you deny me the right. Any successful person learns from making mistakes and learning from them… it has been proven that successful people have more mistakes to brag about. You have to look bad before you will ever look good! For those of you who still are going to ignore these words that I am putting down and have no interest what so ever. I have one last thing, it is from Anthony Robbins and I believe he put it in such a way that I can explain it to you! I highly recommend you read his book to give you practical knowledge and insight, so that you will let go of your beliefs of what is possible. I believe anything is possible as long as you want it bad enough~!!!

Anthony Robbins: "With enough emotional intensity and repitition, our nervous systems experience something as real, even If it hasn’t occured yet. Every great achiever I have ever interviewed has had the ability to get themselves to feel certain they could succeed, even though no one before them had ever accomplished it. They’ve been able to create references where no references existed and achieve what seemed to be impossible.
Anybody who sees a computer is likely to recognize the name “Microsoft” What most people don’t realize is that Bill Gates, the co-founder of that company was not just some genius who got lucky but a person who put himself on the line with no references to back up his belief. When he found out that an Albuquerque company was developing something called a personal computer that needed BASIC software he called them up and promised to deliver it, even though he had no such thing at the time. Once he had commited himself he had to find a way. His ability to create a sense of certainty was his real genuis. Many people were just as intelligent as he was, but he used his certainty to tap into his resources, and within a few weeks he and his partner had written a language that made the personal computer a reality. By putting himself on the line and finding a way, Bill Gates had set in motion that day a series of events that would change the way people do business, and became a billionaire by the time he was thirty years old. Certainty carries POWER.

Please respond and let me know if there is anything else I can clear up of if there is anything you can do for me…P.S. Ed I am probably going to take you up on your offer, all I have to do is find an investment that is lucrative. The money has to be made on the purchase!
Thank you for your time,
Shawn S. Knowles
Tri Fianncial Real Estate
I got a lot of response on the job issue, that decision was backed and induced by many hugely successful people like Phill Mcgraw, Anthony Robbins etc. The reason I quit was because I had proven in numbers a peoven easy way to produce the auto shop I worked for an extra 15 million dollar gross profit per year, when I presented it to the president he didn’t bother to look at ot and began telling me how he has a 19 year old son and began bragging about his own successes and his million dollar house, he then began telling me what I was capable of and telling me what I souldn’t do. Once again someone pre judged me without ever knowing me. I was offered a job as a service advisor at the age of 19 in charge of technicians with 20+ years experience and became one of the companies top salesman out doing the best of the best. I quit the next morning after that conversation with my president. At this point in my life quitting was the best thing I have ever done! I worked 50-60 hours a week for 2 and a half years there. I had worked 6 straight years without ever taking a vacation, I got a job the day I turned sixteen. I have been studying businesses since I was 14. I know what it take to be successful and I will be successful.
I get results, take this past letter for example I had a catchy title which led you into reading the post, then I said a lot of stuff that I knew would play on your emotions,a nd get a good response, especially by saying southern California’s smartest—there’s no way—because it took everybody else forever… I actually believe I am one of the most knowledgeable in the nation, if you want me to inform you of how I came up with that conclusion just ask me. :slight_smile:

Actions speak louder than words… - Posted by Steve D

Posted by Steve D on July 15, 2002 at 10:09:16:

The fact you have big plans, determination, confidence etc is fantastic. The biggest hurdle most people face in their life is themselves, and if you are one of the lucky few that can truely overcome that, then the sky is the limit.

However, writing long posts on a message forum, writing numerous business plans etc proves nothing, and doesn’t help establish your credibility at all. What will, is actually getting out there and doing the deals, making the profits, and demonstrating the growth - then and only then will people start taking you seriously.

Anyone can write a business plan that shows millions, or even billions, in revenue in 5 years time. Very, very few can deliver. A local non-real estate example here in Austin - had a business plan strong enough to raise $67m in venture capital, backed by a strong, experienced management team, and they filed bankrupsy either 14 or 18 months later, I forget which. There are examples out there of people that have successeded, and succeeded big - Gates, Dell, Trump, Ellison etc. For every one of them, there are maybe a 100 that have tried and failed. and for every one of them there are probably 10,000 that have dreamed but been too afraid to take the first step.

If you truely have a strong business plan (investors usually also look strongly at the people and their track record), then schemes like digitalipo may not be your best bet - once you get into public trading and SEC compliance, your incurring a cost burden on your company running to maybe hundreds of thousands a year and a large percentage of your time. If you have the idea, I’d look first to private placements or angel investors - you need to have the strong business plan, but without the experience to back it up, you need to be an incredible salesman - from your posts and the responses you have recieved, I’d suggest learning to sell/negociate or finding a partner with those skills may be a good next step.

As for your business plan, your financial projections will be the most scrutinized piece. Area’s most newbies fall down on are either in cashflow management, or making wild sales assumptions. I could write a business plan tomorrow saying I’d pay 70c on the dollar for properties and close one a day for the next 5 years, and flip it within 3 months every time. The numbers would be incredible. But that doesn’t cfactor in the time it takes to find, negociate, close etc - you may spend a month looking for a deal, you may spend a day, you may spend 6 months. You may close 1 out of every hundred deals, maybe more, maybe less, the profit has to be in the one you close to cover the costs of the ones you don’t. You also have to factor in market conditions, some times values go up, sometimes they go down. Some times occupancy rrates exceed 95%, sometimes they are below 50% (especially if your looking at commercial properties). Some times you won’t be able to find sellers quick enough, other times buyers - do your finacial projections allow for wild fluctuations in market conditions?

The best thing you can possible do right now, is go out there and close a couple of deals. You’ve got a web site up - great, but the “if you build it, they will come” approach with web sites doesn’t work (just ask - how are you marketing the web site? And at teh end of the day, it’s just a lead generation tool, you may need 100 or 1000 leads before you get a deal (depending on how tight your criteria for a deal are).

Once you’ve closed a deal or 3, factor in the time/effort spent, lead to close ratio’s etc, and re-do your financial plan using your real world data. The more deals you have to back up your financial plan, the more accurate they are and the more credible you become, and the easier it will be to get funding.

If you have a specific deal, then if the deal is good and you’ve done your due diligence, work with a lender (like Ed), they love a good deal. If your looking for business funding, don’t mess with going public right off the bat, it’s a nightmare to deall with, and incredibly expensive, and right now just look at the markets. Instead, find a VC firm or angel investor otherwise you’ll just get eaten alive in fee’s.

And remember, actions speak louder than words. You mentioned Gates in one of your posts - he didn’t sit around writing business plans and talking about it, he went out and did it.

Re: All the answers to your porblem–even you Ed-- - Posted by Ed Garcia

Posted by Ed Garcia on July 15, 2002 at 05:31:04:


I don’t have a problem. As a matter of fact I’ve always considered myself a problem solver.

I also have second thoughts of having you call me. I think it would be a waste of both of our time.

It was Bruce Lee in the movie Enter the Dragon, that said you must empty your cup before you can taste my drink. In His book TAO of Jeet kune Do. He says Empty your cup before it can be filled; become devoid to gain totality.

Shawn, at this time I feel that you are heavily involved with what I call MENTAL MASTURBATION. You’re playing with your brain.

As Zig Ziegler would say, you need a check up from the neck up.

Good luck and happy investing,

Ed Garcia