Find out the 3 critical factors that are needed in order to be successful in real estate investing.
Michael Blank explains the factors needed and why they’re crucial as a real estate investor.
Mike: Welcome back to the FlipNerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Michael: Welcome to the REI Classroom. My name is Michael Blank and I’ll be your instructor today. Today we’re going to talk about the three critical factors to be successful with multifamily investing.
Mike: This REI Classroom real estate lesson is sponsored by UglyOpportunities.com.
Michael: So through a decade of having started various different businesses, I’ve come to the conclusion that there’s really three things that you need any time you want to do anything meaningful in your life, like lose weight, start flipping houses or whatever it is. And those three really are you need a certain amount of knowledge, you need to take action, and you need a support infrastructure around you.
My wife’s doing this Insanity Max 30 DVD workout thing, and it’s kind of crazy, right? So you’re kind of hang out with this guy, Shaun T, until you can’t go anymore, which is truly insane. So I did this, you know, and I played tennis competitively. So I think I’m in pretty good shape, and I didn’t get very far. I think I maxed out at like minute 10.
So I’m sitting there gasping, and then it kind of dawned on me. You know, if I really want to get in shape, maybe I should join her in doing this exercise program and that would give me the knowledge on how to do the exercises. But of course I wouldn’t be able to get in shape unless I took action. And if I didn’t really have people around me, then I probably might give up after a short period of time because no one’s looking.
The same thing is true with real estate investing. Whatever you want to do, wholesaling, flipping houses, in my case, apartment buildings, I tell my students, you need to really address three things. So I said, I want to get started with apartment building investing. That’s great. You’ve got to do three things. And step number one is to acquire the knowledge and the necessary skills, and you can do that by purchasing a book or a seminar or going to a course. That’s kind of the first step in getting started. You need to know the knowledge, you need to know the knowledge.
The sad fact is, and this is a proven statistical fact, that only about 10% of people that go to a seminar actually come back home and implement that what they’ve learned. The other ones just pat themselves on back for having acquired all this cool knowledge. Okay?
So being successful in something, just simply acquiring a knowledge is not going to do it. You need these other two steps as well. And the second one is to develop . . . to take the necessary action to develop new habits. So this is why just watching a workout DVD isn’t actually going to get me in shape. Right? Kind of makes sense? I actually have to do something. And it’s not just a one-time event. Right? I’m not going to do this exercise once and be in great shape, it’s a lifestyle, it’s a habit I need to develop every single day, every single week. And it’s the same thing for real estate investing.
Now, if you’re a natural action taker, good for you. Okay? You can kind of sit this one out. But chances are you’re probably one of the 90% of people who aren’t natural action takers. What you need to be successful in this step is you need some kind of accountability partner. Now, this could be a paid coach or a mentor or it could be your spouse or great friend. It doesn’t really matter. The point is it’s someone that challenges you and reminds you of your goals. So that’s really key is to have an accountability partner.
Number three is to surround yourself with the necessary community because you’re going to need some kind of support. Now in this case with the workout thing, you know, my accountability partner in my community was my wife, and I don’t know, I don’t really care too much if I embarrass myself around her. All right? Like I do it all the time. But if there’s six other people in the room or let’s say a friend of mine or a paid coach, well, I’ll probably try a lot harder. Right?
The other thing also is, being an entrepreneur can be a lonely spot. Very few other people, especially family and friends sadly don’t really understand what it’s like to be an entrepreneur. You have your good days and your bad days, and especially if you start something new, you’re very excited about something, high level of enthusiasm. Then after a few weeks, the enthusiasm wanes. Now who’s going to pick you back up and remind you of your original goals? Right? Some kind of like-minded entrepreneurs or a coach or a mentor.
So the other thing you can do in addition to that is to start or join a Mastermind group. Right? So Mastermind group is a group of like-minded entrepreneurs that want to do what you want to do, have the same similar goals, and you guys are all supporting each other and encouraging each other.
So whether it’s a paid, unpaid, virtual or in person, you’ve got to make sure that you have like-minded entrepreneurs around you, and you have some kind of support when you need it.
So those are the three things. If you want to be successful with real estate investing or really anything meaningful in life, you’ve got to address those three. You have to acquire the knowledge, take action and develop the necessary habits, and have a support group around you. So if you incorporate all those three into your efforts and your ventures, your probability of being successful will skyrocket.
So hopefully that’s helpful for getting started with real estate or apartment buildings in general, and I’ll catch you on the next episode of the REI Classroom.
Mike: HomeVestors, the “We Buy Ugly Houses” folks, is a franchise system of hundreds of real estate investors that have purchased over 65,000 houses. If you’d like to learn more about the most powerful real estate investing system in existence, whether you’re a pro looking to take your business to the next level, or whether you have no experience at all but a burning passion to be successful in real estate investing, please visit FlipNerd.com/ugly to learn more.
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