In this lesson, Michael Blank elaborates on what entrepreneurs are doing different from everyday people.
Find out what sets them apart and what makes them so successful in life.
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: Hi and welcome to today’s episode of the REI Classroom. My name is Michael Blank and I’ll be your instructor today. Today, we’re going to talk about three habits of success for real estate entrepreneurs.
Mike: This show is sponsored by PassiveRental.com.
Michael: So here’s the thing, there are a lot of people who want to get in real estate investing and I talk a lot about apartment building investing specifically, and they view buy and hold property as a way to achieve their financial goals. Some of those investors take action and they invest in education and they do something, they buy a course, attend a seminar. A lot of people do that, but why is it that only a very few of them actually are successful? I’d say maybe only 10% of those people are successful.
Having studied this myself, now having students and being an investor myself, I kind of call these successful people my top gun entrepreneurs. What are they actually doing that sets them apart from everybody else? I’ve narrowed it down to three things. They’re really kind of three habits that I’ve seen these people develop and these go above and beyond the educating yourself and attending a course. So what are the things that they do differently? So here are three things.
Habit number one is that they’re constantly building a team. They’re constantly networking to build their team. In the beginning and all throughout the investing, it’s all about deal flow. Specifically, what they do is they constantly network with brokers. In real estate, if you want to hold real estate houses or apartment buildings, 90%-plus of the deal flow’s going to come through brokers. So they’re constantly networking and meeting new brokers and their goal is to identify a dozen or so good brokers that are constantly feeding them deals.
Good brokers are hard to find if you’ve ever done this before. The reason they do that is, number one, deal flow, but then the holy grail of investing is getting off-market deals, specifically on apartment buildings, which are hard to find right now. So getting off-market deals. And you only get those if you’ve built up relationships with brokers over time.
Deal flow is the life blood of real estate entrepreneurs and top guns know this. So they’re constantly networking. They know that the success of their career depends on the success of their team and they’re also then networking constantly, recruiting property managers and lenders. The better ones they have, the better their business goes. So habit number one is constantly building your team and networking.
Habit number two, and I think this is really important because I talk about it a lot, is top gun entrepreneurs are always raising money. If you’re a small time investor, you might have some money, you might be able to buy a house or a small apartment building. That’s great, but you’re not building a business this way. The only way you build a business is by raising money. The top gun entrepreneurs have realized their ability to scale the business is only limited by two things, their ability to find deals and their ability to raise money, not at their own resources at all and realize that the sky is the limit.
What they do differently than a lot of other people is, number one, they know how to go out and raise money, Number two, once they’ve exhausted their immediate circle of influence, their friends and family, they don’t give up. A lot of people would call five friends and they don’t invest with us and they say, “That doesn’t work,” and we give up.
The top gun entrepreneurs don’t do that. They talk to everyone they meet, they get referrals, they cold call people. This is what they do constantly. Each and every week, they are out there building a team and they’re meeting with potential investors.
The third habit that they’ve developed is number three, is that they’re consistently analyzing deals and making offers. They constantly do that. Each and every week, whenever they get a deal in, they will analyze the deal and quickly make an offer and get back with the broker, “Hey, this price doesn’t work for me, but this price would and here’s why.” Really, the advice is to get good at analyzing deals.
Single-family deals are much easier to analyze. Multi-family is a little more difficult. But if you check out the REI Classroom episode number 42, I talk about making offers within 10 minutes or less. You can also download my free e-book, which is at syndicateddealanalyzer.com/eBook and it describes a similar process. So just get good at analyzing deals.
So if you’ve already invested in your education, that’s fantastic. Good for you. But really it doesn’t set you apart from those successful real estate entrepreneurs. What it does is each and every week, when you look at your to-do list for today and this week, you’re doing three things: you’re building a team, you’re networking. Number two, you’re analyzing deals. And, number three, you are always raising money and meeting with potential investors.
So you do these three activities, build a team, meet with investors, make offers, repeat. Those are three key habits to real estate investing success. I’ll catch you in the next episode.
Mike: PassiveRental.com is your source for turnkey done-for-you rental properties. If you’d like to be an investor and not a landlord, please visit PassiveRental.com to learn how to purchase cash flowing, professionally manage rental properties in the hottest rental markets across the country. We can also help connect you with financing for your next property. Invest the easy way today and get started by visiting PassiveRental.com
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
Are you a member yet of FlipNerd.com, the hottest real estate investing social community online? If not, you can join for free in less than 30 seconds and get access to hundreds of off-market deals, vendors in your market to help you in your business and you can start networking with thousands of other investors just like you. Get your free account now at FlipNerd.com.
Please check out the FlipNerd family of real estate investing shows, where you can access hundreds of expert interviews, quick tips, and lessons from leaders across the real estate investing industry. They’re available FlipNerd.com/shows or simply search for FlipNerd in the iTunes store.