Real Deal REInvestor Network

As you are getting started in commercial real estate investing, or residential flipping, ask yourself, “Do I run a house-flipping business?  Or, is it a real estate business that flips houses?”  Are you working for tips? Let these commercial real estate investing tips help focus your approach to investing.

There are a few  key tips for you to consider as you are getting started in commercial real estate investing, or residential flipping.  Ask yourself as you begin, “Do I run a house-flipping business?”  Or, “Am I running a real estate business that flips houses?”  Do you see the difference? I can teach you how to do one deal, but what is that going to do for you? You just make one deal, right?  Let the following real estate investing tips help focus your approach to investing.   

 Create a Business with Systems:

 HIS Real Estate Network teaches creating a business that has a “system” that will generate residual income for you. That’s the difference. What I want you to start thinking about, the need for you to see residential and/or commercial real estate investing as a business. That’s what this is. You are not flipping houses; you’re in the residential and/or commercial real estate business.

 If you operate your real estate investing like a business, guess what happens? You don’t do just one deal a year or one deal a quarter; you do a lot of deals consistently. Why? You’re running it like a business. That’s the difference.

 Whether you are involved in residential flipping or commercial investing, it is important to know that you are running a business.  And, if you are focused on residential, you may want to look at the viability of adding or shifting to commercial ventures.

Determine your income needs to meet your obligations, reach financial freedom?

 Now I don’t know what your income stream is right now, if you make $4,000, $5,000, $6,000, $7,000, $8,000, $9,000, $12,000 or $20,000 a month in payments so that you can live. In other words, what amount of income do you need to come in every month so that you can pay your bills, and be free?

 If you just did a couple of deals and every month they were paying your bills, even if it was just $6,000 a month, would that be financial freedom? Financial freedom might mean you could just roll out of bed and be like well, “Today I don’t feel like working. It’s okay because my mortgage is paid, my kids have food, we’re going shopping and we’re going to Disney.” That makes a big difference.

 A residential business with solid systems can do a portion of that to a degree, which is one way to maximize the returns quickly because that’s what the vehicle is there for.  But, what we really want to do is take that money that we’re repeatedly making on the residential flips, and take a portion of that, right now, and put it to work for us long term.

Ask yourself if you are “working for tips?”

 Does anybody know why commercial is so sexy to us?  Money for trailing dollars… Passive income. Residual income. Commercial market crash. That’s definitely a door for it right?

 We used to just be residential and we had it down pat to a science. We could do a webinar and flip 20 properties in that webinar. It was good. We had the system down and I was bragging about it to some older guys who couldn’t stop laughing at me. 

I’m offended. I’m literally offended because I’m doing deals so I’m a player, and these guys are laughing at me. I asked, “Why are you laughing?” And, one said “Because you’re working for tips.” Think about that concept for just a moment. I’m working for tips. I’m making money, right? Yes, but the moment you stop working that business, guess what happens? You stop making money.

Then he said something that really hit me. “When was the last time you flipped a house and the house deal paid you every month after that?” I had no comeback for that. I just had to bow out, put my tail between my legs and say “okay”.

 Well, what happened was I saw the light.  I bought one commercial deal, I made money when I bought the deal, and I’ve been making money for the last 11 years as a result of that one deal.  You can’t compete with that. Do you follow? So the rate return may not be your 30 or 40% on a flip, but at the end of the day it’s an infinite return that’s paying every single month.  Do you follow that?  Every single month!

Now we are getting that residential income flow every single month. It only takes two or three deals before all the sudden you’re like hey, I can be picky now. I can relax because every month there’s a check coming in the mail. How many of you would like to do that? Absolutely! Me too!

So as you are getting started in commercial real estate investing, or residential flipping, be sure to run your investing as a business with systems, know how much income you need to generate from your system to reach financial freedom, and stop working for “tips” as you transition to commercial real estate investing, if you’re not already there.

Rick Melero

  P.S. If you’re serious about making money NOW in commercial real estate, while building long-term wealth, all by learning how to re-position yourself to achieve INFINITE returns then you must attend our next live educational online webinar with America’s #1 Real Estate Network™. Register here, right now as a guest of Rick Melero and unlock the secrets to 6-figure paydays and awesome monthly cash flow per deal:

http://www.hisrealestatenetwork.com/383

 

 

This past weekend I had the opportunity to meet Roger Salam and hear him speak at the Millionaire Speaker Camp.  Salam is an author, speaker, and master mind entrepreneur, who is unique in his approach to life and his multiple business enterprises, including real estate investing.  Interestingly enough he started his presentation with a focus on The Seven Habits of Highly Successful People by Steven Covey, a long-time number one best-selling business book.  Perhaps you’ve read the book.  If not, it is not only worth the read but is worth inculcating into your life in a conscious way. 

 

Salam’s question to the audience was “What are the ‘Seven Habits?”. Most of the audience had read the book but no one could name all of the habits.  The next question was ‘How can you integrate these proven key points into your life if you aren’t aware of them on a daily basis?’.  Salam stated that “you must live it to own it”.

 

What is it that you must live to own?  What are the habits that will transform your life?

‘The Seven Habits’ include:

 

1. Be proactive
2. Begin with the end in mind
3. Time management – First things first
4. Think win-win
5. Seek first to understand and then be understood
6. Synergize
7. Sharpen the Saw – Balance and self renewal

 

I believe that when reading the book one is able to take a personal inventory and benchmark where they are in regards to the ‘habits’. However, my focus right this minute isn’t on the habits per se, but on forming a response to Salam’s question of “Who can name the Seven Habits?” Having read the book years ago I had to ponder my inability to pull up the “Seven”.  My conclusion is that after reading the book and looking at the habits, I saw that I was already operating in the “Seven Habits”.  Congratulations, maybe. Maybe, because I can’t say that there haven’t been lapses now and then in all of the areas since I read the book. As I reflect, had I taken a more serious look at posting the “Seven” and reviewing them as a part of my daily planning, I could have avoided some of the lapses experienced and moved forward even more stealth-like in my personal and business life.  Do over time!  I have now  made a list of the “Seven Habits” and will be posting them by my computer and in my planner for daily review.   I’m also grabbing the  book off my shelf for further review.  I need to make these habits real, alive, so that they can fully serve me.

 

My question to you, is how real are the many real estate investing courses you have read and  participated in?  Do you own the material?  Have you taken action, even if it wasn’t the right action or it didn’t quite get you where you wanted to go?  Just a couple of weeks ago I picked up one of my original Robert Allen manuals (from his 40 lb box – LOL) and scanned the pages.  Somehow, it all seemed so basic to me at this point, but it wasn’t when I started the investing journey.  I believe that I have lived a portion of  the content to the degree that I can now own it.  That doesn’t mean that I have graduated from the real estate investing university in the sky.  There are more courses to take along with the need for a lot more hands-on experience.  Knowledge is best accommodated and assimilated when it is applied.

 

Real estate investing is a vast territory. And if you haven’t already done so, I’d encourage you to pick a place to start, garner the information needed for one investing strategy (congruent with the market environment), implement what the books and courses say to do, ask lots of questions, develop and review your plans (yes, this requires a clear plan of action) and then take massive action with a constant eye to measuring your success.  For those already in the game, where are you today?  Are you on target?  The rules have changed and seem to shift daily based on lenders tactics, the economy, the online community available, and changes in local through federal regulations.  Are you on top of your game?

 

Whether new or seasoned, I invite you to post your action steps where you can see them every day, right beside the ‘Seven Habits’ should you see the value in following a proven success plan.  Find successful investors in the field and learn from them, directly or indirectly through observation.  REIA’s are an asset and provide education, potential mentors and networking opportunities.  A lone wolf may succeed, but a good team will surpass that metric.  Study your territory; know that farm inside out. If you are working virtually, be sure to do extra due diligence. Make sure the “trust” part of ‘know, like and trust’ is verified.  Become part of a master mind or accountability group.  Do it and do it and do it, until you own the strategy.  Then rinse and recycle to the next strategy.  

 

Being conscious of what you have learned and taking strategic planned action on that knowledge is crucial to your success.  Consider breaking the habit of read - shelf - read - shelf all your shelf-help books and materials.  So maybe it’s time to read, or revisit, the Seven Habits of Highly Successful People, along with identifying solid information and approaches to achieving your investing strategy.  Then decide to “own the habits” and/or “own the strategies and plans” through daily review and implementation.  Doing this WILL make a difference in your life and business.  I certainly will be doing this. "You must live it to own it!"   And, the next time that Roger Salam offers a financial reward for anyone who can name the Seven Habits of Highly Successful People, I’ll be ready.  Will you?  

 

Success Isn't Fair - And That's Good News!

This post I want to take the chance to talk about one of my very favorite topics.

You see, I want to talk about the fact that "Success" isn't a "fair" game...

and what to do about it...

First off, I need to be clear that you understand that LIFE itself isn't fair. In case you were born on the moon, almost NOTHING on EARTH is fair. "Fairness" in effect is an idea, an intangible concept that man has created. I think we probably created the whole idea of what is "fair" to torture ourselves psychologically, in fact.

Why would I say that? That's a good question and we'll get to that, but for now let's put it up on the shelf.

Here are a few ways that life isn't "fair", as the whole theory relates to money and success:

1) Some people are smarter and more creative, and some are decidedly less so. While the world will reward ANYONE with enough belief in themselves and enough "gumption" to make it happen- the truth is clear that in the world of success, being born with an innate creativity is a huge advantage to an entrepreneur. How unfair.

2) A ridiculously small percentage of the population that is born and lives out their lives on this planet live the lives they CHOOSE to live without worry over finances, spending their time doing the things they ENJOY with the people they LOVE. Most are BORN that way. How unfair.

3) Many men and women go their ENTIRE lives without ever reaching that pivotal place of choice, power, and PURPOSE we call "financial freedom". How unfair.

4) Some individuals have hundreds and hundreds of millions of dollars, so much so that the MERE interest on their accumulated fortunes can provide a lifestyle of luxury while the PRINCIPAL remains intact and untouched. How unfair.

5) Some men and women know the secrets of harnessing principles of wealth that are taught to them by parents or mentors, secrets whose use consistently allow them the FREEDOM of creating an ideal life for themselves and their families. How unfair.

The point I'm trying to make is that...

LIFE

ISN'T

FAIR!

And in case you haven't noticed it yet...

The world of money isn't fair, either.

Sometimes an entrepreneur will have a GREAT idea and then external circumstances will stifle a deal.

Sometimes a specific real estate investing technique will work for you, and sometimes it won't.

Sometimes you'll feel powerful and confident in your abilities and future prospects, and sometimes you won't.

Now, to be honest here I know I may be alienating a few people here. It's true that most people don't like the idea that life (and success) isn't fair. These people often get extremely upset when things don't go their way. They frequently place too much negative meaning on things that happen to them. Too often, they respond REActively to responses they get from the world and generally act like life should be different.

Of course, this is CRAZY.

The more that I realized this fact... that life just isn't fair... the more that I realized another PROFOUND truth:

IT'S GREAT NEWS!

If life were "fair", then you wouldn't be able to do anything to change your personal success. You'd get what everyone else was getting.

So what does this have to do with investing in real estate?

Well, the fact is that you CAN change your personal success in ANY area you want (including success with money and investing).

Truly, the best part of this realization is that you can not only get better and better results in a society where many feel the house is playing with a stacked deck, but you can actually turn the tables around in YOUR FAVOR.

You can improve so much your understanding of investing and your skill with making good investment decisions that you are actually at an ADVANTAGE when it comes to money and investing.

What is this advantage? I know, I know...some of our advanced investor readers, I know you are nodding your head here as you're reading this. You understand already. But give me a moment to break it down 1-2-3 style for those who haven't figured it out yet!

It all goes back to where we were earlier...let's take that idea from before down off the shelf, that idea that:

We created the whole idea of what is "fair"...

to torture ourselves psychologically

Granted, in this light (whether you print these newsletters out or you're reading on your computer screen, as you sit there pondering what it is I'm saying...the idea that "life isn't fair!", a popular worldview, is based on self-sabotage might sound a TAD harsh.

In fact, if you know you've caught yourself saying these exact words at some time in the past, you might not LIKE ME RIGHT NOW.

But, think of it this way- what exactly do people give as the reasons for not investing in Real Estate?

Same old answers, right?

Not enough MONEY Not enough CREDIT Not enough TIME.

I know...how unfair.

The truth is, if you believe as I do then you'll realize that each of these "reasons" is in all actuality an EXCUSE.

Now, if the idea that "life isn't fair" is such great news, then why aren't more people thinking of it this way? Why aren't more people turning this belief upside down and inside out and shaking the loose change out of its pockets?

I personally think that many people have a FEAR of SUCCESS, and if you were BORN with MONEY you might think I'm full of it. If you weren't and you're just beginning to make your crack at it and strive for your rightful place in the world of success, think with me for a moment.

Isn't it EASIER just to throw up your hands and say "life isn't fair". Isn't it less painful to say "I'll never be rich". Isn't it more COMFORTING to convince yourself that dreams are for "those" people, those other people with more X, better Y, and the best Z?

Sure it is! I know. I've been there.

It's called taking the path of least resistance and this unfortunate mindset is the culprit that steals countless dreams and spoils many, many splendid plans and ideas.

And for someone who has dreams, big dreams, like you, dear reader, this mindset is a HUGE obstacle to your successful lifestyle as a real estate investor.

If you're worried that you might have this "Life isn't fair" mindset, take a few minutes then and quietly reflect...isn't it time to STOP torturing yourself by saying "Life isn't fair", realize the truth and harness the power of flipping it around!

Success isn't fair... and that's great news.

Here's where the more advanced readers can come back ;). When you take the time to really LEARN something, when you COMMIT to really mastering something, you will reach a place where you now have the confidence and freedom to do it consistently.

But, there will always be people out there who will never "get" it.

I don't think it's that people aren't WILLING to get up off of their couch, put the remote down, and actually INVEST the time and effort required to become GREAT at something.

It's just that FEAR holds us back. The "not knowing" can paralyze someone trying to make the leap from what you have and do today to what you want to have and do tomorrow.

So, I'd like you to do something right now.

Take a moment, and make the decision and commitment to yourself that you're going to TAKE ACTION in the areas of your life that you want to improve, and you're going to do what it takes to stay on track until you get the results that you're looking for.

If you want to get more involved in investing with real estate, you want to learn how to get better returns on your existing money, and you want to "plug in" to a way to make more money with real estate than many people's fear of success allows them to believe possible...

...then you're in the right place!

Another problem with real estate investing is that a lot of people don't know where to START.

They REALIZE the power of leverage and they get excited about double digit returns and five-figure checks... but the "not knowing" and uncertainty about risk creeps into their subconscious mind and suffocates their desires.

They get frustrated that they don't know how to get on the right track and where to learn the "how to" of things that actually work.

When I first decided that I had to learn how to create my own income and become an entrepreneur, I spent probably a year or two "wandering around" trying to find out what worked.

Honestly, I ran around in a lot of circles trying things that sounded like good ideas... but wound up being complete B.S.

After trying a number of off-the-wall things (because when you're determined to STOP being an employee and TAKE CHARGE of your life, the desire to become an entrepreneur and reach financial freedom can become a blazing-hot fire driving from within that can lead you literally ANYWHERE) and these things I tried FAILED...after that,

I decided to stop and take a look around.

And what did I see? When you strip away all the glitter and all the dross, when you peel back all the illusions of media and society and education, and you look down at the EARTH ITSELF, what do you SEE?

Real Estate.

There was my answer.

So I committed to learning how to become a real entrepreneur, someone who understood the secrets involved in real estate investing. I pushed myself to "get it".

Then, once I finally figured out some of the ideas, techniques and skills it was going to take to really become great at this, it took awhile to really learn the skills and practice them to the point where I could use them and have predictable success with them.

Why am I telling you this?

Because I'd like to save you some of the time, effort, expense and hassle that my partners and I put into figuring out all of this stuff... and we'd like to help you swing the odds in your favor when it comes to real estate success.

I'd like you to take advantage of the fact that together with my business partners with HIS Real Estate Network I've spent literally thousands of hours learning as much as I possibly could about this stuff, and I've personally spent hundreds more organizing this information and putting it together in a way that you can pick up and use IMMEDIATELY to get better results investing in real estate.

My question for you is:

ARE YOU GOING TO TAKE CHARGE OF THIS AREA OF YOUR LIFE, OR ARE YOU GOING TO SIT BACK LIKE MOST OTHER PEOPLE WHO NEVER WIND UP GETTING WHAT THEY WANT IN LIFE?

I'll talk to you again soon I hope.

Your Friend,

Danny Welsh

Chief Marketing Officer, HIS Real Estate Network

Mentor, MMMChallenge.com

Director, The Greatest Real Estate Giveaway

#1 Mistake New Investors Make: Don’t Wait too Long to Get Started Now- Part 4

You beat fear of failure by planning. You beat fear of success by changing your thoughts. What about the last of those fears I mentioned that are common among beginning investors?

What about the fear of the unknown?

Wherever there is uncertainty, there too can there be fear.

People fear walking up to an attractive stranger of the opposite sex in the restaurant. They fear going into a dark and silent house. They fear if they’ll know what to do if a gun is pointed at someone in their family. They fear changing jobs. They fear speaking in front of a group. They fear moving to a new city. They fear shipping out to war. They fear going to a party where they won’t know any one. Some people even fear going outside their house!

The fear of unknown can come in for people in many of these scenarios because there is the element of mystery, of what they don’t know.

Some people will never feel any of these fears, and might think that it’s ridiculous to be afraid in a situation like this…but to others these fears are perfectly real.

Others might frighten anyone.

It’s no surprise then that a large number of people might feel a tad nervous about buying their first investment property.

In real estate investing, the best way to conquer this fear of the unknown is to take action to destroy the uncertainty one feels. And the best way to do that is to through gaining knowledge.

Go out and learn more about real estate investing and begin to apply what you learn.

Fear of failure. Fear of success. Fear of the unknown.

There’s one key element in triumphing over each of them: you must take action!

Investors almost invariably share one universal belief— they wish they had started earlier. If they had started earlier, whether six months earlier, a year, 5 years or more, they all realize that they would be much wealthier and more successful today.

If they had only realized earlier that after they took action, for the most part their fears went away, they would have gotten started sooner.

Just remember, action cures fear!

That should wrap up this four part article series....check back in the archives for the rest. Hope you enjoy and PROFIT!

To your success,

Adam Steward
HIS Real Estate Network

Get in with the right crowd- important when investing and getting started

There’s a number of people I’ve seen with questions and concerns about people not believing in them or their dreams. Face it, it’s normal!

Inventing a future that others do not understand or believe in is hard. At some level you need to change your circle. Spend more time with folks who are doing what you want to do and less time with people who are trying to force you down a different path.

If that’s happening for you, trust me. You are suffering like all entrepreneurs do at multiple points in their life.

Continue to study and take a few local investors to lunch (1 at a time). See what they are doing and what is working in the local market. Not all strategies work at the same time.

If you are making offers then follow up. Keep following up until they made a decision. After then make a decision debrief with them as to what made the offer they accepted the right one for them. When doing this just listen. No challenges. You want to understand why they made the decision they made but not impose or otherwise cause them to clam up.

Some will say that a customer has to say no 4 times before you will get a yes from that customer.

Likewise, some of us need to learn who to say “no” to in our lives. And find more people who encourage us to say “yes” to our dreams.

You'll find plenty of people like that here in the community!