"Real Estate Investing Secret: Is Making Money Easy?"...
That was the question that one of the best mentors I’ve ever had asked me during what ended up being one of our last in-person meetings, “Is making money easy?”
I stumbled with my answer.
“Ugh, yes, no—I guess.”
He quickly shot back with, “wrong answer.”
And then went on to explain that making money was easy when you resisted some very common and very powerful temptations. This is one of the real estate investing secrets.
Here’s what he shared that day:
Society teaches us to “do business,” we are NOT taught to “design and build a business.”
He explained that too many people go into business, real estate or otherwise, so that they can “do the next deal.”
The real estate investing secret to keep in mind is this: they never actually build the systems and processes that will allow them to acquire more real estate automatically.
A never ending focus on the “next property” prevents them from designing the marketing, property management, and financial systems that will allow them to grow.
He illustrated this by making me write out on a white board all the tasks that needed handling with our current properties.
Things like: marketing for our properties, raising capital, showing properties, dealing with vacancies, and handling small repairs ourselves.
He then asked me to write out the name of the person who was responsible for each task directly next to it.
As you may expect, either Tom or Nick was next to every single item. Every single one!
And that, he said, was the problem.
If we truly wanted a real business our goal should be to get our name off the white board and have it replaced with other people’s names as fast as possible.
For us it was truly an “ah-ha” moment.
We were so busy “doing” that we didn’t even realize we weren’t “building.”
Why don’t they teach us this stuff (or real estate investing secrets) in school again?
He then shared this temptation:
It’s easy to chase money and resources instead of being resourceful.
Most people, if you give them all the money they ask for, will in short order will lose it or spend it all and be no better off. Why?
Because they had not developed the skills of a business builder.
Their problem isn’t a lack of money, their problem is them. They are not aware of the real estate investing secrets that directly co-relate to success in investing.
If they can’t figure out creative ways to get around ANY and EVERY problem that comes their way, then as soon as someone solves their problem of “lack of money” they’ll have the problem of “what to do with it.” One obstacle solved but another will appear. The real estate investing secret isn't understood, but it is a "quick fix."
They’ll certainly never develop any real wealth.
That’s a bit harsh, but having observed many investors over the last few years we would now have to agree.
We meet a lot of people at our “Introductory Training Classes” and many are repeat attendees. They come each and every month and tell us how much they enjoyed the class but just can’t figure out how they’ll get started. They don’t want to risk $39 because they can’t figure out how they will take the next step.
When we ask them what they’ve done to solve their credit problems or their lack of cash, their reply is usually… Nothing. Zero.
But they have no problem asking us if we would like to Joint Venture with them. And that’s when we break it to them that without money and without experience they unfortunately aren’t offering much value to a partnership. It hurts, but it’s the truth.
Donald Trump isn’t as wealthy as he is because of his money.
He’s wealthy because he can solve problems resourcefully— with no money.
If you’ve ever read any of his books, especially, “The Art of The Deal,” you know this to be true. If you haven’t read that book yet, we would highly recommend it. It’s much better than his recent books.
Trump’s first huge Manhattan real estate development only happened because of his creative ability to get New York City, multiple lawyers, and several experienced land owners to agree to terms that no one else had been able to.
George Ross, one of the lawyers, told him that his idea to make the deal happen would never succeed… He worked out some more wrinkles and got everyone to sign on the dotted line. An unbelievable accomplishment for a young developer with no track record in Manhattan.
The deal he negotiated had nothing to do with the money he had. It was about finding a way to get something done that everyone else said was impossible.
He was… Resourceful.
A resourceful person with a temporary credit problem or lack of cash or lack of experience will find a way around it.
The majority of people will complain that the world never gives them a break.
And thankfully, if you’re here, reading this, then you’re in the former category. And that’s a good thing! You are in on this real estate investing secret!
Here’s the next thing that was shared that day... It’s easy to get lost learning a little about a lot instead of a lot about a little.
Let me use my own example to explain this. I used to be very guilty of this and still have to fight to avoid this never ending temptation.
For years I would read all sorts of self-help books.
Tons of them. I personally have shelves and shelves filled with them. Some in the garage even.
Loved them, still do.
And as I read them, I would naturally come across
different exercises that were meant to engage and force some real change in my behavior.
But every time I came to that section of the book, I would just skip over it and say to myself, “I’ll just keep reading, I don’t actually need to do the exercises.
Just gaining the knowledge in the book will help me.”
So I was spending all this time reading these books, but I wasn’t actually growing or changing because I skipped the most valuable pieces.
And of course, this applies to business as well.
How often we spend studying or reading about the next newest / best / greatest investing techniques, instead of focusing intently on the one thing that we need to learn to grow our CURRENT investing business to the next level?
For example, if you want to generate more leads outside of newspaper ads -> study and implement Google Adwords and/or Facebook advertising.
Have you? Need more capital -> learn how to create and master presenting business plans. Want to get pre-power-of-sale leads calling you -> become great at direct mail list selection and postcard mailings.
So, “Is Making Money Easy?”
It may not be easy, but it’s definitely easier when you avoid some common temptations.