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Signal, Noise, and Twitter

To those who don’t know my background – in my college years I spent quite a while in home audio sales, helping customers find the right home theater for their needs. It was a fun job because it was all “want”, and the boom-years meant a lot of customers could afford (and really wanted) good quality home theaters. I had fun, my customers had fun, and all-in-all it was a great experience.

One of the often overlooked stats for any piece of home theater gear was a ratio called signal-to-noise (S/N or SNR (signal noise ratio)), and the premise is pretty simple… You wanted as much signal (useful information) as possible, and as little noise (static and background) as possible. And that brings me to this little 140-character shootout we call Twitter.

I’ll be the first to admit I was late to jump on the Twitter bandwagon, and I’m still trying to figure out exactly what the perk is. Unlike social networks like Facebook or even (gasp!) MySpace, Twitter is basically a 1-trick pony. You post your little note, and go about on your merry way. In theory, people follow your tweets because they’re interested in what you have to say. But I’ve discovered Twitter suffers from a real serious signal vs. noise problem.

The problem goes like this: You want to follow as many people as interest you as possible. They’re all there, tweeting at random intervals. But there’s no filter – no meaningful way of saying “give me this but not that”. You get someone’s feed and it’s an all-or-nothing experience. Once you’ve followed someone, your feed of incoming tweets expands – showing you their tweets in the process. And therein lies the noise issue… If you follow too few people, you may be underwhelmed by the useful information (signal). But the more people you follow, the more likely it is that you’ll be overwhelmed by noise. And noise there is a plenty! Suddenly, in seeking signal, you’ve increased your noise, and the signal becomes harder to come by.

The search function is helpful to get timely information on a topic or keyword, but even there, you’re forced to scour through endless re-tweets and subjective interpretations from people you don’t know (and therefore are challenged to prove that the signal is useful or not). And the short-code links mean you can’t really trust links that people are forced to post on their twitter feeds, because a bad apple might have slipped in a link to a malicious website without anyone noticing.

In the end, I’m not opposed to Twitter. I think it’s an interesting platform (even if I can’t figure out how in the world these guys are supposed to be making money other than the typical “ad-space” play), but I think it’s inhibited by its own inherent flaws. Too much noise, not enough signal. Now, I’ll be right back – gotta go post about this new blog posting … On Twitter.

Ps… If you’re a “signal” person, feel free to give us a follow at @PropelPoint

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Why Real Estate Seminars Make Sense

So… I’m kicking off our blog here at PropelPoint.com by posing a rhetorical question: Why do people put on or attend real estate seminars? I was asked this over the weekend, and it got me to thinking about the answer to the question. Then it dawned on me that the answer is pretty straightforward: Real estate seminars make sense because they’re the right solution to the problem.

Ahh, but of course that leaves the next question in the discussion – what was the problem in the first place? And there in lies the reason real estate seminars are not only worthwhile today, they are probably one of the best ways for individuals to get educated about real estate investing.

The problem with real estate investing is that it is, by and large, complicated. I can still recall my first 3-day seminar experience; surrounded by individuals seeking to discover a new way to profit in an increasingly turbulent and volatile investing market. Since 2007, the equity markets have capitulated; falling in to a vicious cycle of explosive gains and fast “corrections”, all the while the real estate that was valued at 150% of reality is now looking more and more like it’s reset to real-world values. And that’s with 10% unemployment. Imagine what the world looks like over the next few years as spending increases, unemployment declines, and the markets get back to a healthy “normal”. Suddenly, real estate, at deflated values, starts to look like a really smart play, especially realizing that if you have cash sitting on the sidelines, you can make in investment that has already taken the losses and still provides a solid, underlying asset.

So, this gets back to the main point at hand – why seminars? Well, real estate investing is complicated. Though the fundamentals are straightforward (find an “undervalued” property, put your cards on the table, and then pick an exit strategy that’s appropriate for the investment and your time-horizon), the implementation can be quite difficult. It’s easy to make a bad real estate investment (as proven by the past decade), but spotting a good one – the “diamond in the rough” – takes understanding many variables and contingencies, not the least of which is the fact that each investor is unique and different. Therein lies the purpose of the real estate seminar – to teach and educate about the opportunities available and promote the adoption of a system that has worked for others.

Systems are my strong point – as a virtually life-long computer geek, I see systemization everywhere, from the most complex eCommerce shopping portal to the bureaucracies of any institution big or small. And systems require detail – understanding if “X” goes in, and we want “Y” to come out – how do we get from X to Y? Sure you can read it in a book, but that type of learning is passive and doesn’t work for everyone. You can teach it in a traditional school environment, but often these systems evolve so fluidly that a traditional school wouldn’t know how to make a course titled “Creative Funding 403U: Wrap Around Mortgages in Utah Suburbs”.

So what you’re left with is a problem that requires a solution: Complex systems require several days of instruction to convey even the most straightforward methods and solutions. And therein lies the reason why real estate seminars make sense. Ignore the fact that usually these investment models are proprietary, or may be the product of a life of trial-and-error by the teacher; and you’ll realize that a 3-day workshop / seminar / boot camp / training event is about the best way to learn how to get “Y” if you start with “X”. Take out all the other pieces (like networking, learning face-to-face, Q&A, personal travel & vacations, etc), and the seminar is still a very sound model for teaching real estate to interested investors and aspiring entrepreneurs.

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Welcome to the new Propel Point website

Hi there! You’ve found us while we’re changing… Er… Could you close the door please?

The new website will be coming together here in the next couple days, so please be patient with us as we get our new home on the web updated. Thanks for visiting!

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