Monday, October 29, 2012

Daniel Pink

4 more emotionally intelligent signs

I haven’t been blogging much the last few weeks because I’ve been putting the finishing touches on a new book, which will be out at the end of the year. (Pre-order now. It’s worth it. I beg you.)
But the mailbag is always brimming with emotionally intelligent signage, so I’ve plucked four recent reader submissions that show some interesting examples of the crafty ways signs can attempt influence what we should and shouldn’t do.
Three of the signs direct viewers what not to do.
Don’t be a jerk on the road (via Jack Dorsey):

Don’t knock on my door (via Thad Gembczynski):

Don’t do anything stupid in a library (via Mike Stock):

And one tells us what we ought to do — albeit with a literary twist (also via Thad Gembczynski):

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Owning rentals part 2

Owning Rental Properties Part 2

 

Owning Rental Properties Part 2

In a prior blog, we talked about rentals as retirement income. In this post, we’ll take another step and review what you need to know before buying an investment property.

First Rental Property Resources

Neil Uttamsingh has a website focused only on helping you get your first rental property. His message is that you should manage the property yourself and make sure you do your due diligence with home inspections.
A recent blog discussed that you should not rush the process or you will miss out on some important decision points:

One of the fastest ways of learning these skills is by finding a real estate workshop to understand how to analyze the value of the property, where it’s located, and what kind of tenants you could anticipate i that location.
Making certain that the property will provide a positive cash flow is the number one question you have to answer. The second is what monthly expenses can you expect?
The next step is to figure out how you will finance it. A good loan officer will help you crunch the numbers to find out what you can afford to invest. You will find out your options with how much money you can put down, whether you should get fixed or variable rate, what length of term you should use, and most importantly, you should get pre-approved so when the right property shows up, you can grab it.

Landlord Resources

Nolo Press has some of the best books that explain the law in plain English as well as useful forms. As we mentioned in the prior post, having a valid contract will protect you from a bad tenant.
In their Legal Encyclopedia, they have numerous questions and answers (FAQs) on signing leases and rental agreements such as how to enforce a ‘no pets’ policy, how to divide damages between departing cotenants, and how to handle a tenant wanting to break a lease due to noise.

Cautions

Once you’ve gotten your first rental property up and running smoothly, then start to look for additional properties. Don’t try to invest in too many properties too quickly until you’ve established procedures for analyzing a property as well as systems for finding good tenants.
Always keep a separate checking account dedicated to your rental properties. Deduct the mortgage payments, insurance payments, and maintenance work from this account. At the end of the year, your tax accountant will have a much easier job. Additionally, you can regularly check your cash flow to see if it stays positive. Also, if you personally have a large expense, it will be more difficult for you to borrow from your investment property cash, and you will have peace of mind that your properties are taking care of themselves.
Remember, looking at a house from the eyes of a homeowner is very different then looking at the house through the eyes of the investor.
What would you want in an investment property that you wouldn’t want in your home?

Fees 2 of 2

Mortgage Fees Explained Part 2

 

Mortgage Fees Explained Part 2

Yesterday, we talked about lender fees and third party fees. Today, we’ll talk about mortgage fees, and other fees that aren’t covered in the three other categories, but are important for you to know.

Mortgage Fees

  • Title Search -This fee is charged by your bank or lender and is sometimes called an underwriting, administration, or processing fee. It’s designed to cover the costs of processing and evaluating a loan for you, such as legal costs, notary fees, and overhead.
  • Title Insurance -Title insurance guards you and the lender against an error in the title search. If a previously-undiscovered problem pops up down the line, this policy protects the lender. If you want to protect yourself, you will need to purchase an owner’s title insurance policy.
  • Processing Fee -This is a fee the mortgage broker charges to compile paperwork and submit the loan on your behalf. Some companies charge this fee others do not.
  • FHA, VA, and RHS fees - The Federal Housing Administration (FHA) offers insured mortgages and the Veterans Administration (VA) and the Rural Housing Service (RHS) offer mortgage guarantees. If you are getting a mortgage insured by the FHA or guaranteed by the VA or the RHS, you will have to pay FHA mortgage insurance premiums or VA or RHS guarantee fees.

Other Fees

Points – A point is 1% of the loan amount. What that means to you is that points are a one-time charge that may be negotiated with the lender, usually to reduce the interest rate you pay over the life of your loan. For example, one point on a $100,000 loan would be $1,000. In some cases, especially in refinancing, points can be financed by adding them to the amount that you borrow. However, if you pay the points at settlement, they are deductible on your income taxes in the year they are paid.
Prepaid Interest – Your first regular mortgage payment is usually due about six to eight weeks after you settle (for example, if you settle in March, your first regular payment will be due on May 1, and this May payment covers the cost of borrowing the money for the month of April). Interest costs, however, start as soon as you settle. The lender will calculate how much interest you owe for the part of the month in which you settle (for example, if you settle on March 16, you would owe interest for 16 days–March 16 through 31). The lender will want this up front.
Private Mortgage Insurance (PMI) – If your down payment is less than 20% of your home’s value, the lender may want you to purchase PMI to cover its losses in case you default on the payments. Typically, you will pay a PMI monthly along with each month’s mortgage payment. Your PMI can be canceled at your request, in writing, when you reach 20% equity in your home based on your original purchase price if your mortgage payments are current and you have a good payment history. By federal law your PMI payments will automatically stop when you acquire 22% equity in your home based on the original appraised value of the house as long as your mortgage payments are current.
Flood Determination Fee – A fee the lender may charge to determine if your home is in a flood zone, and if you’ll need to buy flood insurance.
Homeowners’ Insurance – The insurance policy that protects against fire, vandalism, wind, natural disasters (other than floods), and other hazards that can damage your home. Lenders require that you have this to protect their investment. You should also consider looking into additional insurance to cover your furnishings and belongings.
Escrow (or reserve) funds – You may be asked to add in money at closing to put in an escrow account to cover property taxes, insurance, and other costs. Even if you don’t pay this at closing, part of your monthly mortgage payment will probably go toward escrow. When the bills for taxes and insurance come due, the lender takes the money out of escrow and pays them for you.

Conclusion

Be cautious of “bundled fees” if they don’t expressly mention what is bundled. Some lenders offer a package deal that could be less then if you paid for all separately. However, you want to be able to compare apples to apples when you’re shopping around.
If there are any fees listed you don’t understand, ask for an explanation. Also realize that many fees, especially application and processing fees, are negotiable. Ask your lender to reduce or waive these fees; alternatively, the seller may be willing to pay them. Don’t be afraid to ask – after all, this is the biggest purchase you’ll ever make.

Fees 1 of 2

Mortgage Fees Explained

 

Mortgage Fees Explained

Whether you’re a first timer or a re-financer, you want to know where your money is going. When you’re signing all of the forms, a good loan officer recommends you read each page, but seeing all of those numbers can make your eyes cross. Thankfully, mortgage paperwork has gotten simpler over the years, and fees can be grouped into a few categories. Mortgage fees are also called settlement costs and vary quite a lot amongst lenders.

Lender Fees

These are fees asked for by the lender.
Application Fee – The fee charged by your bank or lender to apply for a loan used to cover initial processing costs and a credit check. If they pull your credit report from all three bureaus, the fee will be higher.
Loan Origination Fee – This fee is designed to cover the costs of processing and evaluating a loan for you, such as legal costs, notary fees, and overhead. It’s sometimes called an underwriting, administration, or processing fee.

Third Party Fees

These are fees paid to third parties as part of the home purchase process.
Appraisal Fees - Lenders want to ensure to the best of their ability that the purchased property is worth at least as much as the loan amount. An appraisal fee pays for a determination of the value of the home and lot you want to purchase or refinance. Some lenders and brokers include the appraisal fee in the application fee. Make certain that you ask for a copy of the appraisal. If you are refinancing or have had a recent appraisal of the property, some lenders may waive the requirement for a new one.
Home Inspection Fee – Your lender may require you to get a home inspection to check for major structural or other damage, water quality, leaks, etc. The most common inspection is for termites. In rural areas, there may be a test of the septic system as well as a quality test on the water supply. Even if it’s not required, a home inspection is a good idea for your peace of mind. If nothing else, you’ll be able to plan when you will have to make investments into the property such as a new roof.
Property Survey Fee – Some lenders require a simple survey to confirm locations of boundaries and easements as well as the location of buildings and improvements. If there are questions as to the legality of these issues, such as a boundary line dispute with neighbors, the lender will require a complete, and more costly, survey.

Tomorrow, we’ll finish up with Mortgage Fees and Other Fees. Are there any fees that you’re curious about?

Wednesday, October 17, 2012

Thank you John Maxwell

The Law of Pain: from my new book, The 15 Invaluable Laws of Growth

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In just one week, my latest book, The 15 Invaluable Laws of Growth, will be available in the United States and Canada. (But it’s available for preorder now!) I’m especially excited about the potential of this book, because it’s on a subject that everyone can relate to. Everyone benefits from growth. Learning more about the subject can lead to great gains and expansion of a person’s potential.
Today’s post is an excerpt from Chapter 8, The Law of Pain. It demonstrates that even a bad situation can yield positive growth if we make the right choices while experiencing it. This is just one of the lessons that I’d like to share with you in this book, and also in a special FREE event on October 9. See the end of this post for details.
The Law of Pain: Good Management of Bad Experiences Leads to Great Growth
How do you usually respond to bad experiences? Do you explode in anger? Do you shrink into yourself emotionally? Do you detach yourself from the experience as much as possible? Do you ignore it?
John McDonnell once said, “Every problem introduces a person to himself.” What an insight! Each time we encounter a painful experience, we get to know ourselves a little better. Pain can stop us dead in our tracks. Or it can cause us to make decisions we would like to put off, deal with issues we would rather not face, and make changes that make us feel uncomfortable. Pain prompts us to face who we are and where we are. What we do with that experience defines who we become.
Novelist James Baldwin commented, “Not every thing that is faced can be changed. But nothing can be changed until it is faced.” Often it takes a bad experience for us to face the changes we need to make in our lives. I know that was true for me when it came to my health. As I’ve mentioned before, I experienced a heart attack at age fifty-one. Prior to that, I knew deep down I wasn’t eating right or exercising enough. But I’d never had any health problems, so I just plowed ahead as I always had. But the night I had the heart attack, the excruciating pain I felt in my chest and the belief in that moment that I wasn’t going to see my family again finally got my attention. It made me face the fact that I needed to change the way I was living. You could say I had finally reached a teachable moment. And that is the value of the Law of Pain. It gives us an opportunity to turn our lives around. A bend in the road is not the end of the road unless you fail to make the turn.
Most people don’t think their way to positive change—they feel their way. In their book, The Heart of Change, Harvard Business professor John Kotter and Deloitte Consulting principal Dan Cohen explain, “Changing behavior is less a matter of giving people analysis to influence their thoughts than helping them to see a truth to influence their feelings. Both thinking and feelings are essential, and both are found in successful organizations, but the heart of change is in the emotions.”
When bad experiences create strong feelings in us, we either face the feelings and try to change or we try to escape. It’s the old fight-or-flight instinct. We need to train ourselves to fight for positive changes. How do we do that? By remembering that our choices will lead to either the pain of self-discipline or the pain of regret. I’d rather live with the pain of self-discipline and reap the positive rewards than live with the pain of regret, which is something that can create a deep and continual ache within us.
Athlete and author Diana Nyad says, “I am willing to put myself through anything; temporary pain or discomfort means nothing to me as long as I can see that the experience will take me to a new level. I am interested in the unknown, and the only path to the unknown is through breaking barriers, an often-painful process.” That’s a process Nyad has gone through many times as she trained to break records as a long-distance swimmer. In 1979, she swam non-stop from Bimini in the Bahamas to Florida. It took her two days. Her record has stood for more than thirty years.
The next time you find yourself in the midst of a bad experience, remind yourself that you are on the cusp of an opportunity to change and grow. Whether you do will depend on how you react to your experience, and the changes you make as a result. Allow your emotions to be the catalyst for change, think through how to change to make sure you are making good choices, and then take action.

Great Daniel Pink posts

Ask Gretchen Rubin anything you want — only on Office Hours

Happiness. It’s what we all want, right? But what does it look like? How do we find it? And is the joy in the pursuit or in the realization?
For answers to these and other questions, tune in to Office Hours tomorrow (Friday, 12 October 2012), when our guest will be Gretchen Rubin, author of the blockbuster book, The Happiness Project, and the her newest work, Happier at Home.
Office Hours, of course, is our monthly radio-ish program that we call “Car Talk . . . for the human engine.”
Here are the instructions for participating:
When: Friday, 12 October 2012, 1pm, EST
How: Just dial (206) 402-0100, extension 203373 at the appointed hour to listen to the live interview live and to ask Gretchen a question.
For more on the program, including downloads of previous episodes, visit the Office Hours page.
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Search Inside Yourself with Chade-Meng Tan

Search Inside YourselfChade-Meng Tan is an amazing guy. He started out as an engineer at Google, but his current title is Jolly Good Fellow with a job description that reads, “Enlighten minds, open hearts, create world peace.” As part of that mission, he developed a personal growth curriculum at Google called “Search Inside Yourself.” With his new book of the same name, he’s spreading that program to the whole world. (Buy it at Amazon, BN.com, or IndieBound.)
I find this combination of clear-sighted engineer and compassionate guru very intriguing, so I fired off a few questions for Meng. I think you’ll find something useful — perhaps life-changing — in his answers.
How did the Search Inside Yourself program come about? And what makes it different from other programs?
The main motivation for creating the Search Inside Yourself program is to create the conditions for world peace. I feel that if we have inner peace, inner joy and compassion on a global scale, it will create the conditions for world peace. In order to do that, I feel we need to align those qualities with success of individuals and companies. In other words, if we can help people and companies succeed in a way that inner peace, inner joy and compassion are the necessary and unavoidable side effects, then those three qualities will spread. I feel the way to achieve that is with an effective curriculum for emotional intelligence for adults. That is why I gathered a team of experts to create that curriculum in Google.
I think the main distinguishing feature of Search Inside Yourself is its emphasis on training core emotional skills. When you come across a program advertised as an emotional intelligence course, you might naturally assume it to be a mostly behavioral program, i.e., a program that tells you how to behave or to not behave in certain situations. Search Inside Yourself takes an entirely different approach. For example, it does not tell you how to react in an emotionally difficult situation; instead, it shows you how to train yourself to become calm and collected in an emotionally difficult situation so you can think clearly and choose for yourself how you want to respond. In addition, Search Inside Yourself has a strong scientific foundation, its methods are already shown to be effective in a work setting (in Google, no less), and it is taught in a highly accessible language.
Search Inside Yourself puts a strong emphasis on developing mindfulness. Why do you think we tend to avoid opportunities for mindfulness and sustained attention in favor of busy-ness and distraction? Is the reason ourselves or our circumstances?
Actually, I think we do engage in mindfulness and sustained attention a lot, but we only do so in circumstances we find enjoyable and rewarding, for example, when playing video games or buried in work that we enjoy or solving interesting problems. I think we avoid opportunities for mindfulness and sustained attention in favor of busy-ness and distraction when we consider what we are doing (or are supposed to be doing) to be a chore.
This insight suggests one strategy for practicing mindfulness meditation: try to make it not a chore. One skillful way for the beginner is to treat mindfulness as moments of rest for the mind. Rest your mind for a short moment by bringing a gentle attention to the process of breathing for maybe one breath, that is all. If you like, you can think of the mind as resting gently on the breath, whatever that means to you. If it helps, you can imagine the breath as the petal of a flower moving gently in the breeze and the mind as a butterfly resting gently on the petal.
The idea here is to have a lot of these micro mental rest breaks frequently. The best feature of this practice is it doesn’t require you to give up anything. You don’t have to stop working and go to a meditation room for an hour or something like that. You can take a micro break between tasks, when you are walking to the restroom, or at the beginning of every activity (for example, opening your lunch box or starting up your word processor). You can get some benefits of meditation for practically zero cost.
The key advantage of this practice is it never becomes a chore, because every time you do it, it feels rewarding (because it is restful), and one breath never gets long enough for mindfulness to become boring. Equally importantly, mindfulness practice is cumulative, so one second of mindfulness here and there adds up. Perhaps most important of all, if you do it frequently enough, mindfulness becomes a mental habit, and when that happens, you may be ready to do formal mindfulness meditation for long durations and not feel intimidated.
You write a great deal about listening — a skill that I think is poorly developed in most of us, in part because nobody ever really teaches us how. What are one or two listening exercises that Pink Blog readers might enjoy and learn from?
There is a very simple and beautiful practice called Mindful Listening that improves your listening skills and is almost guaranteed to improve your social life and the quality of your marriage.
The practice is very simple: as you listen, give your full moment-to-moment attention to other person with a non-judging mind. That is all. Every time your attention wanders away, just gently bring it back.
Think of this practice as offering the speaker the gift of your attention. When we give our full attention to somebody, for that moment, the only thing in the world that we care about is that person, nothing else matters because nothing else is strong within our field of consciousness. There is no greater gift.
In our class, we do a formal version of this practice as an exercise. We pair up participants and have them speak to each other in monologue for three minutes each. We frequently hear people telling us, “I got to know this person for six minutes, and we are already friends. Yet there are people who have been sitting in the next cubicle for months, and I don’t even know them.” This is the power of attention. Just giving each other the gift of total attention for six minutes is enough to create a friendship.
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How are free agents doing these days?

A long time ago, in a galaxy far, far away, I wrote a book about the rise of people working for themselves.
A lot has happened since then — a historic recession, the emergence of widespread broadband, the explosive growth of smart phones, the further erosion of job security, lower barriers to entry for small entrepreneurs, and so on — that has reinforced the underlying trends.
But for a clear and illuminating look at the current state of one group of independent workers, check out Ed Gandia’s 2012 Freelance Industry Report. Or if you’re too swamped to read the whole thing, look at this cool graphic summary of its main points:
2012 Freelancer Report Infographic (image)
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Forgive thyselves thanks Vicki Garcia life coach

The One Where I Confess…

by Vicki Garcia on September 24, 2012
Post image for The One Where I Confess…Ok, I just have to get some things off my chest. This is a confession of sorts. Not that I’ve been hiding anything on purpose. If you read my blog with any regularity you know I’m a pretty open book. It’s just that I haven’t been blogging. How can you know what’s going on if I don’t tell you? Well, I’m about to tell you. You might want to go get a drink before you start reading.
So, this transition I wrote about (the one where we pack all our stuff, say goodbye to everyone and move to Washington). It kinda sucks more than I thought it would. It’s most definitely a great time for me to practice all the tools I’m always telling you about. I am going to be THE BEST COACH EVER, if practicing has anything to do with it.
Here’s what I’m confessing:
  1. I can’t think of a damn thing to write about. I know tons of stuff I could share with you but when it comes to writing it down, I suddenly become empty of any and all knowledge, ideas, opinions or useful information. My goal was to blog at least once per week. I actually kept that up until the time of our move and then everything went to hell in a hand basket. Please, someone tell me what I should write about!!!!
  2. I’m crying. A lot. I miss my friends. I miss my family. I miss having a network of people nearby who know me and love me anyway.
  3. I don’t feel motivated to do anything with my business. Nada.
  4. I’m drinking way too much coffee and um, other types of beverages…
  5. I’m not eating all the healthy stuff I used to.
Know what this means? It means I’m human and I’m going through a transition that is difficult. Know what else it means? It means I get to PRACTICE what I teach. J Here’s how I’m doing that:
  1. I’m giving myself a break on the blogging thing. I’m doing it when I can and when I can’t, I don’t. You have to just give yourself a friggin break sometimes.
  2. When I feel like crying, I cry. I don’t try to be all brave and hold it in. I cry like a baby. It’s healing and gives me perspective and reminds me of all the wonderful people and things I have in my life. Crying is good stuff, even when it doesn’t feel like it. Also, I don’t try to go it alone. I call a friend and vent and cry and laugh. Why suffer alone? Pain is an inevitable part of life. Suffering is completely optional.
  3. I know that feelings lie. All the time. Feelings are big, fat liars. So, I am paying attention to my feelings and doing my best to act on my commitments. Never act on your feelings or you’ll probably do something you’ll regret. Take it from me. I know this from lots and lots of experience.
  4. Yep, too many beverages are being consumed. The answer, sign up for a 10 day detox. That should do the trick! J
  5. See answer #4.
Well, there’s my big confession. I guess it’s not so big after all. You already knew that I’m not perfect and that I do my best to practice what I teach. Well, just so you know, I’m here, in Washington, doing just that. Practicing.
Ooooh, look at me! I just wrote a blog post. See, talking to you always helps.