Real Estate Disruptors

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Why You Need to Network

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November 3, 2020

You need to network with your peers. This is VITAL to your success.

Why do I want to network with my competitors?

Why would I share my tips and tricks with them?

What’s in it for me?

Money. Time. Fewer headaches and emergencies. More closed deals. Better leads. Hot tips. Resources. 

But the biggest thing is help. You can get help when you need it, from people who care.

Most people start their business basically on their own. You may have a partner (or a spouse along for the roller coaster ride!), but you don’t have much of a support system, if any. And like most solopreneurs, you slug it out alone, battling all the forces stacked against your success.

You don’t have to.

Networking Benefits

Networking with people in your business is more than just finding like-minded crazy dudes and dudettes willing to swap war stories and have a coffee. Done properly, networking opens all kinds of doors for you and your fellow entrepreneurs:

  • Share resources, like skip tracers, lead sources, organizational systems, software/app choices, others associated with real estate (non-investor professionals), and more;
  • Gain insight, tips and tricks from those who have been in your shoes;
  • Learn how to avoid expensive mistakes before you make them;
  • Find partners for deals, investors to sell to, good contractors;
  • Gain educational opportunities to help you organize and expand your business;
  • Find some deals you may not have found otherwise;
  • And the list goes on and on and on….

Help is the Key

In order for networking to work; however, you MUST approach it from the standpoint of “How can I help?” The group isn’t there to just give everything to you; this needs to be a symbiotic relationship. If you withhold information from someone that could have helped them, you aren’t participating in the group. You’re leeching off of it, and pretty soon you’re going to burn all the bridges you may have built and damaged your reputation in the process.

I have had some of the biggest “Ah Ha!” moments of my career directly from my networking and mastermind groups. It’s possible I might have come across some of these ideas/systems/helpful tips on my own, but I absolutely would never have figured out half of them without my friends in these groups. And certainly it would have taken me much, much longer.

We see it all the time — someone who is highly motivated, is actively doing deals, but is struggling. They’re wondering if they made the right choice; not because they think the business is not there, but because they don’t know what they’re doing wrong. Remember when you were in that position? Or maybe you’re there now, debating whether to throw in the towel and get a “real job?”

You’re in the right place. The opportunity is right in front of you. You simply need some help, some guidance, people whom you can develop a relationship with who are excited and willing to provide assistance. 

Work It

Most of all, don’t be afraid to ask. This is the most expensive mistake you can make. Most of us in this industry are more than happy to talk about ourselves, our successes, and especially we like to one-up each other for the biggest screw-ups (yes, it’s a sickness, we know!). There is a sort of weird bragging rights here, but at the same time, we don’t like to see someone else go through the pain we did.

So get involved. Join a group, or three. Participate. I can’t stress that enough — you have to be engaged and involved in the group. At first, you may be mostly on the receiving end of help and advice. But soon you will know more, and you will see someone else who is in a situation you already experienced, and then it’s your turn to earn bragging rights (even the apocalyptic kind). This is where you pay it forward. This is where you provide value.

And beyond all that, you can make some good friends, cohorts, compadres. We humans like to belong to groups with similar interests, and doing so helps you feel less alone in the world, especially when times get tough. 

In real estate, you can always count on someone else to have a story that begins with, “Oh yeah, well I can top that…” 

And sometimes that’s exactly what you need to hear.

The Importance of Flexibility

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October 23, 2020

The real estate market is currently a seller’s market. Inventory is low, and investors keep bumping into each other trying to get into the door of properties.

What if you could offer a seller more money than other investors, but make a larger profit on a wholesale transaction?

“Not possible,” you say. 

Except that it is, if you structure the transaction a little differently. And best of all, it’s legal and may be an even better option to help out the seller than a straight wholesale deal.

The problem many wholesalers run into these days is that sellers want a certain amount out of their property, but you know you can’t offer them that and have any hope at making a profit. So you leave, hoping they will call you later, or you may have never called them in the first place due to the situation.

What if you could offer them more money, or more time in the property, or other concessions they need and still get the property under contract?

It can be done using a Novation agreement. Essentially, a Novation allows you to control the property, market it for sale, and receive the profits upon sale without taking title. Think about the savings you gain simply by avoiding that first set of closing costs.

In a typical wholesale transaction, you buy the property (A to B), and all closing costs, commissions, taxes, title, etc. are paid. Then you sell the property to another buyer (B to C), again paying closing costs, commissions, taxes, title, etc. A Novation removes the first closing, changing the transaction to A to C, with you in control of the property. 

But how does this get around laws against excessive commissions, etc.? Because under a Novation, you take on all responsibilities of the seller:  You make any necessary repairs, you pay the mortgage, are liable for all the disclosures, etc. By assuming the responsibilities of the seller, you stand in the place of the seller, just without an expensive closing taking place.

So knowing you could save $5,000, $10,000 or more in closing costs, you can increase your offer to the seller above what other investors can offer. Not only that, you can sell the property on the MLS or privately instead of at a discount to a flipper or another wholesaler. So you can maximize the profits on the back end with a smaller front end investment.

We call this the Brewer Method, named for Eric Brewer, who has used this technique in hundreds of real estate transactions successfully. And we’re teaching it to you, complete with all the forms, sales techniques, and monthly training you could ask for. Visit www.BrewerMethod.com to sign up and take your business to a new level of advantages and productivity.

Do You Control Your Business, or Does Your Business Control You?

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October 19, 2020

I meet so many people in real estate who just want to do more deals — get more contracts, close more deals. If only they could do more deals, everything would be fine.

Sounds great in theory. 

Yes, more deals closing is the goal. As long as they’re good deals, because putting in hours and hours of work to make $100 isn’t worth your time. More GOOD deals closing, and that means the total costs involved from finding the deal through closing it. This is where you have to monitor the pulse of your business, know your numbers, budget your expenses — monitor your Key Performance Indicators (KPIs).

Most of us like the end numbers that can come out of real estate transactions. After all, making money is one of the reasons we’re in this industry.

But are you really making money? Or are you just robbing Peter to pay Paul?

As your business grows, it inevitably becomes more complicated. You hire employees, buy software, venture into different areas, add different types of transactions (e.g., wholesaling and flipping and rentals). You have more people wanting your attention, you are now more of a manager than doing the hands-on work, and you are being pulled in 20 directions at once.

This is where the momentum of building a business can overwhelm the solopreneur (the person who started a business). The road to becoming an entrepreneur has many forks in it, and a few roundabouts to get stuck in. This is where businesses grow, only to die on the vine.

You started this business knowing everything that was happening, and you made all the decisions. If something happened, or didn’t happen, all you had to do was look in the mirror to know who was responsible.

Now you may feel like you don’t have a choice in what decisions to make, almost as if someone else has set your company down a path and you’re racing to catch up. Things are happening, but you don’t know why, or you feel like you’re constantly putting out fires and slapping on Band-Aids to keep things moving. Despite your best efforts, despite all the things you try, you feel like this car is driving itself without a destination, as if you just go to work and triage whatever pops up that day.

Your business is running you. 

It’s difficult to admit, but the first step to solving the problem is recognizing and admitting that it exists. The good news is that you can take back control.

The first thing you have to do is know your numbers. Frankly, this can be the least enjoyable part of running a business for many, many solopreneurs and entrepreneurs alike. We like to do deals and get things done, not read reports. Knowing your KPIs is absolutely critical information to both survive and grow. Nothing will improve until you know your numbers.

Why? Can’t you just monitor the bank account? Or number of deals closed?

I wish it were that simple. As a business grows, so too do the opportunities to bleed money. Wasteful spending on employees, rent, marketing, software, supplies, bad deals, etc. can blow a hole in your bottom line. Your closing ratio, profit margins, employee payroll and expenses, all can work against your success if you aren’t setting standards, implementing policy and accountability, and keeping focus on the business’ goals and ideals. ANd it can sneak up on you slowly, silently — a little here, a little there, another cold caller, another database purchase, and suddenly your expenses doubled, which directly affects your bottom line.

This is where training can make a huge difference. There’s an old maxim, “You don’t know what you don’t know.” Take it quite literally:  If you don’t know how to manage employees or motivate them to perform to a certain standard, how would you know whether they are? How would they know? Who is taking responsibility and accountability for training them and then tracking it? 

Your KPIs will tell you. You can set standards of performance, goals for each person to achieve which measures their work. The numbers are tracked. For example, you may want your cold caller making 50 calls per day. Your acquisitions person may need to offer 10 contracts a week.

It’s one thing to set targets; quite another to properly train, motivate and encourage your team to achieve them. This is where investing in masterminds, investing in training programs, and becoming educated in specific areas can equip you with the tools and strategies to make your business boom. The right training also incorporates responsibility and accountability, for both you and your team. You don’t want to have to be standing over your employees to make sure they’re doing their jobs. You want them to want to do their jobs, be good at doing their jobs, and enjoy doing their jobs. And it is training that will enable you to solve the chronic issues which cause all the brush fires in your business, will help you close more transactions with less drama, and show you how to hire, train and keep the best employees.

Notice I said “invest” in masterminds and training. Yes, good training costs money. You’re a business owner, you know that valuable things aren’t free, and that quite often free things turn out to not be particularly valuable.

Investing in masterminds and training can enable you to exponentially grow your business far beyond what you paid. Can you figure it out on your own? Sure. All the information is out there. However, masterminds and training will both speed up your ascension to entrepreneurship and will relieve stress and frustration from not having good systems in place.

The real question is where are you going, and how fast do you want to get there? I can ride my bike across the country, but I’ll get there faster in my car, and much faster in an airplane. My bike is free (only I have to put in a lot of effort), the car costs money and it’s still a several day drive, and a jet airplane costs the most but I’m there in time for lunch.

Take back control of your business. Identify your weaknesses (those things you really don’t like to do and are giving you the most trouble), invest in masterminds and training, and apply what you learn. It may be tough at first, because you may need to replace some of your team who simply don’t want to get with the program. You may need to change the way you have always done things, and change can be difficult. You may even change the focus of your business, once you have thoroughly and honestly examined it.

In the end, change is hard, but change is necessary. When you think about it, isn’t growth simply change? A seed grows into a tree by changing, not by fighting to stay a seed. The difference is a seed knows how to become a tree. Your business does not.

Go learn how to grow. Go be a tree.

$800,000 Profit on One Deal? Yes Sir.

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October 16, 2020
Tucker Merrihew just made $800,000 in one flip.

Do I have your attention yet?

No, this isn’t some HGTV show where the flippers are about to lose their shirt yet somehow a bidding war breaks out and suddenly they make $800,000.

This is real life, and it’s a real business making deals like these happen.

So are YOU ready to make these deals happen? All you need is ….

OK, pump the brakes, hold your horses, and bend the ear. While the end result is obviously exciting, there are a few steps you need to take to get there. And you may never get to that level. But know that it is possible, if this is what you want to do.

Tucker spent years building his business, honing his craft. He went through rough times, good times, more rough times, made mistakes, and made good choices along the way.

Through all that, the most important decision Tucker made was to keep learning about his business and to share his knowledge. He was a mortgage broker right before the real estate apocalypse (as he calls it) in 2008, self-funded his first flip almost out of necessity and desperation, learned to flip REOs and how to properly evaluate properties, went through general contractors (GCs) until he finally became a GC himself, developed his own software app for investing (and learned lessons about who not to hire), ventured into new construction, and moved up in target markets until his company, TTM Development, now primarily works in flipping high end properties around Portland.

Tucker has his mastermind program and two podcasts (The Portland Real Estate Podcast and The Real Dealz Podcast) he uses to help other real estate investors learn to do what he has accomplished. He constantly works with other people to help them realize their dreams. And even with his successes, he still buys other mastermind programs and sessions so he can continue to improve himself and his businesses.

So after you have all that in place, you can do an $800,000 profit deal, right? Maybe. 

If you do everything with INTENTION, you will succeed. Tucker organizes his entire business around intent — where they market, the formula they use to select properties, the financing/numbers on a project, his podcasts which have outlasted many others, his mentoring, etc. You can’t walk half-heartedly into real estate investing. You have to be fully committed, or it might drive you crazy enough to be committed. 

Don’t be afraid to ask for help. In fact, seek it out. Ask others for information and their experiences. Instead of trying to figure everything out, seek out tried and true methods. Build relationships; they will pay off down the road. Get the training to help you be successful. And know that you don’t have to go for the $800,000 profit flip right away. In fact, you probably won’t be able to for a variety of reasons, the biggest being it’s tough to get financing for those kinds of projects.

Just get started. Join local organizations and build contacts and relationships. Find mentors and teachers, attend conferences, and learn, learn, learn. You can do it, and as Tucker demonstrates, you can be very successful. You will have setbacks, unexpected things will pop up, and you will have great surprises. You just have to commit, be focused, and put in the work, both on the property and on yourself.

Watch the full podcast with Tucker Merrihew on the Real Estate Disruptors YouTube channel here: https://www.youtube.com/watch?v=TjF6KD0R-8Y&t=80s

Why I Believe in Masterminds, and You Should Too

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October 15, 2020

Steve Trang, Real Estate Disruptors

Many of you know that I am a huge proponent of personal development and mentorships. Why reinvent the wheel when others have developed systems and tools, and are willing to teach them to you so you can run your business better and more efficiently? Why not take advantage of the immense knowledge available that can make your life as fulfilling as possible? After all, making all the money in the world will not be very satisfying if you have no time or energy to enjoy it.

Last week, I had the opportunity to go to Tampa, Florida and attend the Collective Genius mastermind conference for real estate investors. This was very exciting for me — people like Jocko Willink of Extreme Ownership and Dichotomy of Leadership fame were speaking, and I soaked it all up.

My personal highlight was listening to Chris Voss. I have read or listened to his “Never Split the Difference” three or four times, bought his real estate negotiating course, and I did his masterclass. I love the guy; consume the heck out of his stuff. You would think I would be able to predict what he was going to say by now. Yet there I was, taking a bunch of notes while he was on stage.

Why? What could he have said that I hadn’t heard before? Well, apparently plenty. And that’s the entire point. There is always something new you can learn, even if you have heard it before. Sometimes we hear things, but we don’t listen to what was presented. We need to hear it again in a new unit of time for it to sink in, to resonate with us, for the light bulb to turn on. 

You see, your path to business owner and leader is truly a journey — once you learn something new, your perspectives evolve and you are more open to other ideas. You may not be ready to fully comprehend the power of these tools or ideas now, but in a year or two or five, they may be exactly what you need to elevate to the next level.

It comes down to taking responsibility. You, as the business owner and leader, have to first take ownership and responsibility for your actions and for the company. Your employees won’t take responsibility for their actions if you don’t show them how. Then you can train, learn to become a better leader by being responsible for your own personal development, and then you can bring your team along with you.

The most important realization I gained at Collective Genius was the power of relationships. Sure, I learned a lot in the formal sessions. The CG conference was fantastic and very informative. 

Looking back, the most value I gained from the weekend was in the after-hours dinners, a late round of drinks, and hanging out at 1 a.m. with your peers just talking shop. The conversations that came out of the relationships I have developed through my mastermind groups, training sessions, and other seminar events, all the things I have bought and used to build my businesses were what gave me huge wins and value that weekend. 

Make no mistake, in every aspect of your business and life, it is the relationships that make you money. People who can lend a hand, provide sage advice, be an expert, or even just bend an ear when you need someone to talk to can advance your business to new levels if you would simply acknowledge that you don’t know it all (and neither do I).

And finally, never forget that good words cannot overcome bad tone, but good tone can overcome bad words. Tonality is so important in fostering relationships, and goes a long way toward building strong teams in your business. So if you find yourself feeling somewhat alone in  your business and searching for what to do next, I strongly recommend you take a mastermind. Yes, it will cost you money. Figure out how to pay for it, because not taking it will cost you much, much more.

See my thoughts and clips from the Connection Genius weekend on the Real Estate Disruptors YouTube channel here: https://www.youtube.com/watch?v=YucsxN0WWc4&t=115s