Ethics For the Real Estate Investor

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Ethics For theReal Estate Investor
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What Is Ethics?

• I don't know what it means to be ethical.
• Ethics has to do with what my feelings tell me is
  right or wrong.
• Ethics has to do with religious beliefs.
• Being ethical is doing what the law requires.
• Ethics consists of standards of behavior our
  society accepts.

Dr. Roger Manley, Professor Of Management And
Organizational Psychology, FIT
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• To ridicule philosophy is truly philosophical.
  Pascal (1623-1662)
• An ethical man is a Christianholding four
  acesMark Twain

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Who Am I?

• What qualifies me to Teach you Ethics?
• Am I perfect?
• Randy Cohen
• "The Ethicist" column for The New York Times
  Magazine

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• Wise men learn more from foolsthan fools from
  the wise.
• Cato the Elder (234-149 B.C.E.)

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The Philosophy of Ethics

• Right
• Kindness
• Fairness
• Morality
• Honesty
• Integrity

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The Philosophy of Ethics

• Caveat Emptor
• Pleasure vs. Pain
• Conscience Vs. Immediate Self InterestKierkegaard
  
• With the Flow versus Against the Flow

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• An ethical person ought to do more than he's
  required to do and less than he's allowed to do
• Unkown
• Being ethical is never just a matter of being a
  good rule-follower. It's exceedingly more than
  that. Rules and laws by their very nature usually
  prescribe, at best, only minimum standards of
  ethical behaviour.
• Character is Destiny - The Value of Personal
  Ethics in Everyday LifeProfessor Russell Gough

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Why Care?

• It feels better
• Its good for you and your health
• You will get referrals for more business
• You will be trusted
• You cant separate your business and personal
  life with regards to your attitude towards ethics

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• Forcing investors to be ethical doesn't work.
• they must realize the importance of ethics.
  Ethics leads to the most vital ingredient in any
  relationship - trust. Of all the strategies to
  attract business, nothing is as powerful or as
  profitable as ethics. And nothing is harder,
  especially in the short-term. It takes courage to
  follow high ethical standards. In the long-term,
  however, the rewards to all the parties are
  magnificent.
• Adapted from www.jenman.com.au
• Ethics is Real Estate

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• When his heart forsakes fairness and his deeds
  turn depraved, A man realizes deep within
  himself, "I am ruined."
• ThirukkuralValluvar 2nd Century AD

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Why Does REAPS Care?

• Creative Real Estate Investing is a Target
• Its not a Local Problem - North Carolina, Texas,
  Colorado, Illinois, Florida
• Legislation is almost alwaysa response to
  somethingwhich has ALREADY occurred!!!

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• People are more ethical than they think and far
  more unethical than they can imagine.
• Adapted from a quote by Sigmund Freud

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The Basics

• Walk the Talk
• Say What You Do Do What You Say
• Treat Others with Respect
• Yes Do Unto Others
• Is Staying Legal Enough?

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The Gold Standard?

• The Neighborhood Gossip Test
• or
• Seattle Times Page 1

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• They do more harm by their evil example than by
  their actual sin.
• Cicero

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REAPS Code of Ethics

• See Your Handout

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• A man's ethical behavior should be based
  effectually on sympathy, education, and social
  ties no religious basis is necessary. Man would
  indeed be in a poor way if he had to be
  restrained by fear of punishment and hope of
  reward after death.
• Albert Einstein

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Acting Ethically

• is the safest, most liability-free way to run
  your business.
• Is this good?
• Does it conflict withHe Who Dares, wins?

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• We strive to act ethically because we believe it
  is fundamentally right to do so, but also because
  it would be dreadful to live in a world where
  suspicion reigned, where all transactions were
  conducted from behind bullet-proof glass, and
  where, when our dinner guests departed, we had to
  count our spoons.
• Randy Cohen

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Thank-You!!!

• Do you have any questions?
• dugald_at_dugaldallen.com
• Dont forget the October Super Conference!