Wednesday, December 18, 2013

3 Secrets to Growing an Einstein Brain

Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com
 
3 Secrets to Growing an Einstein Brain
3 Secrets to Growing an Einstein Brain Relativity and quantum physics weren't the only things on Albert Einstein's mind—he also had a few tricks up his sleeve for making sure his brain was both working at peak efficiency and harnessing as much of its power as possible.

There are three parts to the brain—the stem, the limbic system, and the frontal cortex—and according to Dr. Rudolph E. Tanzi of Massachusetts General Hospital in Boston and co-author with Deepak Chopra of the book Super Brain, we get the most out of our brains when all parts in the system are working together.

Here are three exercises that when practiced regularly, can help you get the most out of your brain:

Become a possibility processor. Einstein's genius was in part due to keeping his frontal cortex (the logic center) in its place. Letting your imagination run free—allowing nonsensical, even outlandish, ideas to form without criticism or fear—can cause new neural connections to form, helping develop highly creative and refreshing ideas. The trick is not to judge these ideas too quickly; there's plenty of time to let logic sort them out later.

Look for loops. Our limbic system automatically looks for patterns and creates associations or "loops" as memory and response shortcuts. When you react to things in a way you can't quite explain, you might be stuck in a loop. Examining the source of your feelings and how your responses may have been shaped can go a long way toward rewiring unhealthy or unwanted reactions, patterns, behaviors, and more.

Reactivate all brain centers with a "S-T-O-P." Just remember the acronym STOP—STOP what you're doing; take THREE deep breaths and feel them through your whole body; OBSERVE how you feel (this activates the limbic circuit and frontal cortex); within a few seconds you can then PROCEED with full awareness of yourself and those around you.

You may not develop a new theory of relativity, but with a little practice, you'll be well on your way to discovering new mental power!

Friday, December 13, 2013

Monthly Market Guide: Get your Updates


Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com



Monthly Market Guide:  Get your Updates!

IN THIS ISSUE...

   
 Home for the Holidays. Whether you're heading home or looking for a new home this time of year, the articles below can help make this season bright:
  • Sign of the Times? - The markets are looking for clarity from the Fed as housing and economic reports roll in.
  • What to Watch - Take a look at the broadest measure of the U.S. economy.
  • Fresh Ideas - Try these 3 unique decorating tips this season!
  • Q&A: Rates? - Find out how home loan rates have been trending!
If you have any questions or would like to discuss your unique situation, call or email today. And please forward this newsletter to friends, family members and coworkers who may find the information helpful.
 
 


 A Sign of the Times?

   
  As we get ready to enter a new year, the markets are watching for signs that might indicate when the Fed will taper its Bond purchase program, known as Quantitative Easing.

Remember that the Fed has been purchasing $85 billion in Bonds and Treasuries each month to stimulate the economy and housing market. That includes Mortgage Bonds, to which home loan rates are tied.

Last month, likely incoming Federal Reserve Chairwoman Janet Yellen was on Capitol Hill for her confirmation hearing and she signaled that the Fed's current Bond purchase program will continue, as the economy is still running below its potential.

For example, the Empire State Manufacturing Index came in weaker than expected last month and it also revealed that labor market conditions are weak. The report backed up Yellen's statement in her prepared text at her confirmation hearing that, "Unemployment is down from a peak of 10 percent, but at 7.3 percent in October, it is still too high, reflecting a labor market and economy performing far short of their potential."

In housing news, Existing Home Sales for October fell due to a rise in home loan rates and housing prices. As you can see in the chart accompanying this article, that was the second month of declines. Similarly, Pending Home Sales declined by more than expected in October. The drop was due in part to declining affordability and higher home loan rates.

Finally, although the National Association of Home Builders' Housing Market Index remains in positive territory, it fell to the lowest level since June.

What does this mean?

Overall, the housing sector is fairly stable, but further improvements could be hindered if home loan rates continue to rise (see the Q&A article below for more on home loan rates).

One thing is clear: The Fed has said that economic reports will be a key factor regarding when it begins to taper its Bond purchases. Whether this will happen before or after the new year remains to be seen.

The bottom line is that now is a great time to consider a home purchase or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions for you.
 
 

 What to Watch: Gross Domestic Product

   
  Although a variety of economic reports are released each month, one of the broadest measures of the U.S. economy is the Gross Domestic Product (GDP). That's why it's important to keep an eye on this report.

What is it? GDP measures the total production and consumption of goods and services in the U.S. GDP components like consumer spending, business and residential investments, and price (inflation) indexes illuminate the economy's behavior.

What happened last month? The first of three readings on third quarter GDP showed that the U.S. economy expanded well above expectations. The rise was due in part to a buildup in inventories, a pickup in trade, and increased spending by state and local governments. However within the report, consumer spending—which is the main driver of the U.S. economy—fell to the lowest rate in three years.

I'll be watching future releases of this report to see what it reveals about the economy and how it may impact home loan rates. If you have any questions, please call or email me.
 
 


 Freshen Up Your Winter Season

   
  Here are 3 unique decorating ideas that are easy to pull off and guaranteed to add a little something extra to your winter memories—without breaking your budget.

1. Jar to the World: Clear glass vessels are perfect for displaying collections of winter decorations. For a colorful display—no electricity required—fill your jar with old-fashioned incandescent light bulbs. Try another with spools of ribbon and peppermint sticks or even cranberries. Jars with lids can even be topped with artificial snow for a cool effect, even if real snow is nowhere in sight.

2. Winter Word-erland: If your Scrabble® game is collecting dust in the closet, you can use the trays and tiles to spell out winter-season messages, or use them as place cards for a gathering. Paint the trays in festive colors to give some pop to the tiles. If you don't want to chance ruining your set, Amazon.com sells replacement tiles and trays you can use exclusively for decorating.

3. Going Out on a Limb: If you don't have much room on your dining table, here's a unique idea. Suspend a bare tree-branch from the ceiling above the table using eye hooks and fishing wire, then hang winter-season decorations of various shapes and sizes from the branch. You can even spray paint the branch a special shade, such as red, silver or white.

Nearly all these ideas can be accomplished inexpensively with a trip to your local craft or discount home goods store. And if you keep your eyes peeled and ask around, you're sure to come up with additional ideas of your own!
 
 


 Q&A: Home Loan Rates?

   
 QUESTION: What's the trend with home loan rates?

ANSWER: Borrowing costs for homebuyers have been rising since May. But the good news is that rates are still lower than in August, when rates reached a two-year high and held close to that level through mid-September. So the bottom line is that home loan rates remain attractive compared to historical rates.

Thursday, December 12, 2013

Identity Theft: 5 Tips to Protect Your Privacy

Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com
 
Identity Theft:
5 Tips to Protect Your Privacy
The Federal Trade Commission (FTC) estimates that as many as 9 million Americans have their identities stolen each year. This means that an identity is stolen every 3 seconds, costing the average victim nearly $4,000 and nearly 175 hours to straighten out their problems and their credit. How can you protect yourself from the dangers of identity theft? Here are some suggestions.

Conduct a Credit Check-up – Visit www.annualcreditreport.com to obtain a free credit report every 12 months. Review all three of your credit reports and look for any suspicious activity, unusual or inaccurate names or addresses, or any inquiries that were done without your knowledge. In many states, you may place a 90-day "Fraud Alert" on your credit report, which further restricts access to your credit information. Simply call one of the three main credit bureaus to activate the alert. Here are the toll-free numbers: Equifax 1-800-525-6285; Experian® 1-888-397-3742; or TransUnion® 1-800-680-7289.

Don't Give It Up – Avoid falling prey to phishing scams, both over the phone and through email. In a phishing scam, identity thieves pretend to be someone from your bank or a credit institution and simply ask you for your personal information. If someone contacts you and requests any personal information, don't give it to them. Verify who is requesting the data and why, and then call the institution yourself. One extra phone call could save you a lot of trouble and money.
Stay off the Pharm – While phishing enables thieves to pilfer information from you, pharming is another kind of scam that consists of hijacking your computer and stealing your personal information. A pharming site is designed to look just like the website you're trying to visit. However, enter your information on this fake site and not only can it track your moves within it, it may also direct your computer to give up other personal information at a later time. Be sure you are visiting the correct site, that the address in the navigation bar is correct before entering any information.

Return to Sender – Some scammers simply fill out a change of address form and divert your mail to another location. Others simply steal the mail they want right from your mailbox. The key to avoiding this scam is to know your statement delivery dates and pay close attention to any unusual delays in delivery. A lot of identity thieves do things the old-fashioned way: They rummage through your trash to collect your information that way. Be sure to shred any junk mail or other documents that may contain your personal information before you throw it away.

Opt-out of Special Offers – Visit www.optoutprescreen.com to cut down on the pre-approved offers from credit card and insurance companies. It's also good idea to have your clients opt out as well, especially if they're thinking about buying a home. When people apply for a mortgage, they often become "trigger leads" to the credit bureau, who sell your clients' information to any number of companies. It only takes a few minutes to opt out, but it could spare your clients a ton of junk mail and could possibly save them from identity theft.

Wednesday, December 11, 2013

The Federal Reserve and Mortgage Rates

Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com

The Federal Reserve and Mortgage Rates
Understanding What Causes Interest Rate Movement
 
Consumers are often misled when it comes to the subject of the Federal Reserve and how it affects mortgage interest rates. Often the media is the culprit causing the confusion. Many times, the Fed has taken action that caused mortgage interest rates to move in a direction other than what consumers expected, because the media provided weak reporting on the subject.

The Federal Reserve affects short-term interest rate maturities, the Fed Funds rate, and the Overnight Lending rate. These factors have a direct impact on the Prime rate. If you took only this into consideration, you may mistakenly conclude that changes made by the Fed will cause a similar movement in mortgage interest rates. However, mortgage interest rates are dictated by the trading of mortgage-backed securities, which trade on a daily basis. The real dynamic at the heart of interest rate movement is the relationship between stocks and bonds.

Stocks and bonds compete for the same investment dollar on a daily basis. There is literally only so much money to be invested. When the Federal Reserve feels that interest rates need to be decreased in an effort to stimulate the economy, this reduction in rates can often cause a stock market rally. When the market becomes bullish, the money to invest in stocks comes from the selling of mortgage-backed securities.

Unfortunately, selling mortgage-backed securities to fuel stock market rallies causes interest rates to go up, not down.

Historically, there have been many times when the Federal Reserve has increased interest rates. Stocks then sell off in fear that the increase will affect corporate profit margins, and the liquidated stock assets need a place to park until the next rally comes along. The safe haven is found in mortgage-backed securities which cause mortgage rates to drop.

The daily ebb and flow of money is what matters most when it comes to the movement of mortgage interest rates. I make it a point to continuosly monitor interest rates for my clients, and advise them of opportunities to manage their mortgage debt at a better rate. This is the foundation of my business model as a Trusted Advisor.

Monday, December 9, 2013

Weekly Market Guide


 
Robert Hernandez
MBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS : 241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com

Weekly Market Guide

     
  Last Week in Review: Key housing and jobs data was released. Plus a surprising read on Gross Domestic Product, the broadest measure of economic activity.

Forecast for the Week: This week's economic calendar is light, featuring readings on retail sales, jobless claims and wholesale inflation.

View: See the important time tip that can make all the difference any time of year.


 

  Last Week in Review  


     
  "Tomorrow is often the busiest day of the week." Spanish Proverb. And it sure seemed that way with last week's busy economic calendar, as Friday's Jobs Report capped off a week filled with data. Here are the highlights.

The highly anticipated November Jobs Report revealed that employers created 203,000 jobs last month, above the 188,000 expected. The Unemployment Rate fell to a 5-year low of 7 percent while the Labor Force Participation Rate (LFPR) managed to tick up to 63.0 percent, though it is still at lows not seen since the late 1970s. The LFPR is a measure of how many people are looking for work. All in all this was a good report, but the labor market is not out of the woods yet.

Also of significance, the second reading of third quarter Gross Domestic Product (GDP) rose by 3.6 percent, above expectations and the best level in a year and a half. But a closer look shows the gains coming from a large buildup in inventories. This is important to note because a buildup in inventories could cause goods to stay on the shelf and not materialize into sales, which could set the stage for a disappointing read in the fourth quarter.

In housing news, research firm CoreLogic reported that home prices, including distressed sales, rose by 12.5 percent in October 2013 compared to October 2012. This marks the twentieth month of year-over-year home price gains. In addition, New Home Sales for September fell but October's New Home Sales surged 26 percent, coming in above expectations. Both reports were delayed due to the government shutdown.

What does this mean for home loan rates? Remember that the Fed has been purchasing $85 billion in Bonds and Treasuries each month to stimulate the economy and housing market. The Fed has said that its decision regarding when to taper these purchases will be dependent on economic data. Whether data has been strong enough for the Fed to begin tapering these purchases after its meeting of the Federal Open Market Committee on December 17-18 remains to be seen. Either way, the timing of the Fed's decision will definitely impact home loan rates heading into 2014 and it's why economic data in the coming weeks will be important to monitor.

The bottom line is that now remains a great time to consider a home purchase or refinance as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.
 

  Forecast for the Week  


     
  Economic data is light this week and doesn't kick off until Thursday.
  • As usual, Thursday brings Weekly Initial Jobless Claims. Last week's claims dropped below 300,000, though this figure could have been skewed by the Thanksgiving holiday.
  • Also on Thursday, Retail Sales will be delivered and will show the health of consumer spending.
  • The last report this week will be the Producer Price Index on Friday, which will reveal if there are any inflation pressures at the wholesale level.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving — and when they are moving lower, home loan rates are getting worse.

To go one step further — a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Bonds and home loan rates have worsened in recent weeks, as some positive economic reports have caused concern that the Fed will taper its Bond purchases sooner rather than later. I will continue to monitor this story for all the latest developments.


Chart: Fannie Mae 4.0% Mortgage Bond (Friday Dec 06, 2013)

Japanese Candlestick Chart

Sunday, December 8, 2013

Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com

Total Quality Control
Set Goals that Lead to Improvement

The concept of KAIZEN®* is based on ideas developed by Japanese industries, which date back to the 1950s. This system for optimizing production melds together ideas from both Eastern and Western cultures, and embraces the philosophy of implementing common sense, low-cost forms of improvement. It takes into consideration all members and facets of a company, and how each plays its part in reaching Total Quality Control.

While breakthrough ideas are based on rapid change and the development of new systems, KAIZEN® principles are geared toward recognizing what resources you have at hand, and making better use of them. The KAIZEN® process is soft and gradual, and a team or support group evaluates each level of change step-by-step.

According to Masaaki Imai, Founder and Chairman of KAIZEN® Institute, you should regard how you currently do your job as the worst way to do it, and seek to make gradual and consistent improvement. "In order to improve you must first perceive the need for change, and then recognize the problems and work to solve them," Imai states.

Rate your current activities on a scale of one to ten (ten being best), and determine what goals you should set to improve your current system. Circle the number that best applies for each category listed below.
Setting Priorities
1 2 3 4 5 6 7 8 9 10

Being Organized
1 2 3 4 5 6 7 8 9 10

Ability to Focus
1 2 3 4 5 6 7 8 9 10
Commitment to Goals
1 2 3 4 5 6 7 8 9 10

Follow up on Prospects
1 2 3 4 5 6 7 8 9 10

Follow up on Clients
1 2 3 4 5 6 7 8 9 10
Asking for Referrals
1 2 3 4 5 6 7 8 9 10

Developing Referral Partners
1 2 3 4 5 6 7 8 9 10

WOWing Clients
1 2 3 4 5 6 7 8 9 10
Review your notes, and decide which areas could use the most improvement. How does this affect your company's production overall?

Saturday, December 7, 2013

Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com
Write-offs to Remember
Deductions in the Loan Process
Write-offs are the government's way of rewarding taxpayers when they've done something the government likes. And to judge by the write-offs, the government likes it when people borrow money to buy a house. There are write-offs aplenty, many of which people often forget.

Make sure your clients take advantage of every break the IRS will give. Here are a few they tend to forget:

Points:
According to the IRS, origination fees charged as points must be paid for the use of money, (for example, to obtain a lower interest rate) in order to be tax deductible. Origination fees that constitute a "service fee" are not tax deductible. The question must be asked, "Does the fee apply to the use of money, or is it a service charge?"

Pre-payment penalties:
Unforeseen circumstances often cause borrowers to pull out of their mortgages sooner than expected. Fortunately, pre-payment penalties are tax deductible, which helps ease the pain.

Pro-rated real estate taxes:
Even if the seller sent the tax collector the check, chances are the buyer paid a pro-rated portion of the taxes for the year at closing. Be sure they know to deduct their fair share.

Pro-rated mortgage interest:
Depending on when in the month the home sale closes, buyers pay either a hefty or a tiny amount of pro-rated mortgage interest for that month. Big or small, they can write that off. The Final Closing/Settlement Statement will show just how much they've paid.

Home construction loan interest:As long as the construction period doesn't last more than two years before they make the new place their "principal residence," they can write off the interest for that construction loan.

It pays to pay attention – all these write-offs can add up to some serious savings when tax time comes around.

Friday, December 6, 2013

Director of First Impressions: Using Voicemail to Start Off Right

Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com
Director of First Impressions
Using Voicemail to Start Off Right
Have you ever stopped to consider how many times a new prospect gets your voicemail before they have a chance to speak directly with you? Your voicemail greeting provides an excellent opportunity to create a first impression that can have an enormous impact on whether people decide to use your services. It can also be used as a dynamic marketing tool.

If the first time you called a CPA, Financial Planner, or Real Estate Agent, you heard a voicemail greeting that was energetic, educational and professional, wouldn't that set the proper tone for the rest of the relationship? Very few people take into consideration the full potential of the voicemail greeting!

Here are some suggestions for creative use of your voice message:

Leave your schedule for the day, including the time of day you can be expected to return calls.
Most people don't mind leaving a voicemail message if they know when you will be returning the call. This shows that you are very professional, organized, and busy in your daily practices. It makes it crystal clear that you've taken the time to structure your day.

Assess what would be important to a prospect that is calling you for the first time.
What would they want to know about you? What would they want to know about your profession? If you seek to teach in every interaction and form of communication that you have with people, you will be wildly successful regardless of what business you are in. If you are a Real Estate Agent, discuss the market trends in your local community over the past 30 to 60 days. If you are a CPA, share any new or potential changes in tax laws that might be hot topics in the news.

Use your voicemail greeting to promote philanthropic activities.
Announce activities you are involved in with your church, school district, clubs or other organizations. This creates a lasting impression that you are deeply rooted in the community.

Give people optional ways of communicating with you.
Provide your email address. Leave an alternative contact should they require immediate assistance, and be sure they know how to bypass the message and transfer to another extension within your system.

Thursday, December 5, 2013

Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com
 
Email Signatures that Make an Impact
Your email signature is more than just a virtual business card. If utilized effectively, it can also be a great and inexpensive tool for marketing and branding your business, growing your database, and even generating leads. Here are a few tips to help maximize the full power of this simple, but often overlooked, marketing marvel:

Create Consistency – According to marketing experts, your email signature should be short and sweet, which means between 5 and 7 lines of text. Just be sure to include at minimum the following information: name, title, company name, phone number, and website address. Some companies include an email address in their email signature, but others see it as redundant since the email is coming from you. Either way, it is essential that everyone in your organization is consistent about it, and follows the exact same format.

In other words, your email signature should look like a uniform company stamp of which only the names and titles change from person to person within the organization. That's the first step in branding your name and image. And it's the easiest part of creating a consistent experience.
Forget the Bells and Whistles – Avoid unusual fonts, colors, and symbols in your email signature. Not only can these come off as unprofessional, some email software programs simply do not support these high-end graphic features.

Acceptable options to your signature, according to the experts, are a line separating your signature, short inspirational quotes or marketing taglines, brief announcements of a new product or service, small banner invitations to an event, seminar, workshop, or subscription to a newsletter, e-zine, or other publication. These should all link directly to your website, driving traffic and strengthening your brand with every email that's sent out by you or anyone in your organization – something even the best business card can never accomplish. Here's an example of an ideal email signature:

Mr. John Smith
Vice President, Platinum Realtors
3000 Main Street, Suite 100
Los Angeles, CA 90004
(310) 555-1212 Ext 23
PlatinumRealtors.com

"Your Real Estate Solution Specialist"

Pay it Forward – Finally, while using an email signature is a great way to advertise your products and services for free, spare your co-workers and close colleagues from your signature appearing over and over again on reply and forwarded messages. Set your signature to appear on "new messages only" or simply delete everything except your name before sending your message.

Wednesday, December 4, 2013

Proactive or Reactive? It's Up to You

Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com
Proactive or Reactive?
It's Up to You

Everyone makes choices. Their outlook on life, whether at home, at work, behind the wheel or at the theater, directly correlates to the decision to be either positive or negative. In essence, it's as simple as whether you see the glass half full or half empty. As author Stephen R. Covey puts it in his much publicized book, The 7 Habits of Highly Effective People,* you can choose to be proactive or you can choose to be reactive. He takes his theory a step further, saying that a proactive stance leads to greater success and contentment. From that perspective, a reactive person is sabotaging himself or herself.

Covey contends that every single day, people have 100 opportunities to be proactive or reactive. Let's say you're in your car on the freeway and an overly zealous driver is practically sitting on your tail in the fast lane. You're driving at the speed limit, actually a couple of miles faster than the law permits. But the motorist behind you thinks he's at the Indy 500. You can stay where you are, infuriate him and possibly get rear-ended. Or, you can move out of harm's way, to that opening in the right-hand lane and let him pass. He's in the wrong, and there's no question about it. Will you follow his lead? Will you be proactive or reactive? It's up to you.

It's very empowering to look at life from Covey's point-of-view. If you moved to the right lane, the reckless driver didn't force you. He didn't win. A vehicle can be a deadly weapon and you made the sensible, mature decision that shows why you deserve a driver's license and the other driver belongs on roller skates.

At work, you can be proactive if you take the time to learn about the principles of nature - in this case human nature and people interaction.

"If you ignore the principles of human effectiveness, you (can) work very hard, but still not get what you want," Covey says. Say that you've been working with a prospective client for the past three weeks, really putting a lot of effort into the new relationship. Then you learn, through some mutual acquaintance, that this would-be client ended up going to a competitor for the same service. It happens, and you don't have to necessarily blame yourself. But, you should take time to reflect on the past three weeks. Were you really proactive or were you reactive? How did you interact with the client?

Covey says principles are "natural laws that govern the world." To attain a proactive mind-set, he emphasizes one must create beneficial relationships, build trust and commit to self-renewal. "To be trusted, you must be trustworthy over time," Covey asserts. As for self-renewal, he says renewal means "preserving and enhancing your greatest asset - yourself."

Tuesday, December 3, 2013

Negotiating Like a Billionaire


Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com
Negotiating Like a Billionaire
Donald's Dos and Don'ts
 

In Donald Trump's 2004 book, Trump: How to Get Rich*, he dedicates an entire section to the secrets of negotiation. I think you'll be amazed to know how much the dealings of a multi-billionaire relate to business at any level.

Here are some of the tips he shares for successful negotiation:

Consider What the Other Side Wants. If you remain too focused on what you want, you'll miss which concessions you can make that might satisfy the other side.

Be Reasonable and Flexible. Unless you are never going to be negotiating again, it will hurt you in the long run if you show an unwillingness to bend. The word will eventually get out, and no one will want to work with you.

Trust Your Instincts. If it sounds too good to be to true, it probably is. Don't let the same brain that struggles with long division be the only decision-maker. Trust your gut!

Know Exactly What You Want and Keep It to Yourself.Chess masters know they've lost the game when their opponent can see their true attack coming. In other words, as soon as the other side knows what you want, they have you by the throat.

Let Your Guard Down, but Only on Purpose. Let out some facts or opinions to "test the waters." See if people are agreeable or disagreeable, in order to gauge what they're thinking and feeling.

Be Patient. Stubbornness is not the same as patience. Don't let your impatience overrun the deal itself. Be willing to wait for the right conditions to be met.

Be True to Your Friends.Be loyal, be kind, and believe that both sides can come out winners.

The Google Effect

Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com

The Google™ Effect
Learn About Your Prospect Before the Appointment!
 

Do you know enough about your prospects and potential strategic partners when you meet for that first appointment?

The Internet can tremendously aid your business in many different ways. One of the great benefits is Google™, the world's leading search engine, aptly located at www.google.com. This search engine allows you to access a wealth of information about people – possibly those with whom you seek to form a relationship. Use this utility to research backgrounds on individuals prior to meeting with them.

As sales people, we've been told, "Use your mouth less and your ears more," especially on the first few appointments. That gives us a clearer view of our prospective clients' and referral partners' hot buttons.

Often, because of our insecurity as sales people, we present our sales pitch too aggressively. We essentially toss darts at a dartboard and hope to come close to hitting the bull's eye. That's where Google™ comes in handy. Consider the value of walking into an appointment, armed with the knowledge of a prospective client's goals and interests.

Many people have Web pages loaded with personal information about their family, their hobbies and their successes. The more data you gather about your contacts, the better you can tailor your presentations to suit their needs and desires.

By doing a little preliminary research, your interactions will dramatically improve. This will lead to an increased conversion ratio from prospect to client.

Here's another hot tip! Would you like a quick listing of all the professionals in a certain field in your area? Try http://local.google.com, and put in the name of the profession (for example, "CPA"), along with your zip code. Google™ combines search data with Yellow Pages references to compile an amazing list of professionals, including business phone numbers, addresses, as well as links to their websites. You can use this information to develop strategic partnerships in a variety of fields.
Look for more Business Boosters about efficient methods I use to manage my business and provide stellar customer service!

Monday, December 2, 2013

Leadership Essentials - Avoid these Bad Behaviors

 
Robert HernandezMBA, Hablo Espanol
Private Capital Ventures, Inc.
Phone: 650-776-3280
Fax 415-573-0930
NMLS :241292 Broker Lic.: 01935727
Robert@1PCVI.com
www.1PCVI.com
Leadership Essentials
Avoid these 4 Bad Behaviors
Employees look to leaders for reassurance, insight and feedback. As a leader, the four bad leadership behaviors below can create morale problems and worse, stifle ideas from your employees, who likely know the business best:

Interrupting. Wait for the other party to finish first. This works best for three reasons:

  1. You allow yourself and others a chance to listen and form more valid and insightful opinions
  2. Some team members may need time to "warm up," and jumping in too soon could derail a potentially valuable breakthrough
  3. Everybody roots for the underdog; helping someone save a little face will maintain a team-focused atmosphere
Interrogating. Nobody likes to be cross-examined, nor do they like to see this happening to anyone else. Healthy morale and team-building is possible simply by fleshing out problems together.

Judging. Instead of judging any ideas on the spot, try taking notes on all of them. Then regroup to discuss those that made the cut, or just announce your decision after the fact. Avoid making powerful non-verbal signs of disagreement, such as eye rolling or frowning.

Pretending. Turning on the charm with clients and higher-ups one minute, then being prickly with your direct reports is superficial and arrogant. People notice this game and will respect leaders who are firm, fair and treat all reciprocally and with respect.

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