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.

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 

$1 Million in Revenue on Just $30K in Marketing? YES!!

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You hear all kinds of numbers on how much you should spend on marketing — percentages, dollar amounts, different mixtures of marketing areas (Facebook vs. direct mail vs. cold calls vs. buying data, etc.). But what if your marketing expenses needed to generate $1 million in revenue was just $30,000?

That’s right — 3%.

“You’re crazy!” is the first response. But Tyler Austin of Florida Cash Home Sales does just that. Three percent.

Who is this wizard? He must be a master marketer, have incredible connections, work in that mythical “can’t miss” market (wherever that is), or just be plain lucky.

None of the above. In fact, Tyler just about lost his shirt doing direct mail before he gathered his thoughts, used his resources and experience from his prior career, and discovered the real secret to effective marketing:  Good Data.

Good Data? That’s it? I can buy good data. He must have bought some REALLY good data (and just got lucky).

Nope. Tyler doesn’t just use the data he receives. He has created a system to examine data, remove the extraneous and useless information, refine it further, rinse and repeat. So when he does his direct mail, cold calls, or other marketing, he is using updated, solid data that gives Florida Cash Real Estate a complete picture of the property they have targeted to acquire. So they don’t spend hours falling down the rabbit hole chasing potential clients who aren’t there; they almost always know who the client is, what is their situation, and why they need help.

Now add in the human touch. 

Tyler uses actual humans to talk to actual human clients. He doesn’t use autodialers or other impersonal methods (direct mail is an exception, but the messaging is personalized to the group targeted). His team leaves personal voicemails for people, sends them personalized messages on Facebook or Instagram, or sends them personalized emails. They try to find a family member or friend as a contact who can make a warm introduction for them, which builds trust and helps lower the potential client’s protective shield. And if they can’t help the person, they refer them to someone who can, like a real estate agent or attorney.

Amazingly, human clients really like being treated well, and like, well, human beings. 

Tyler’s data-driven marketing uses various software, including Tyler’s own REISift to parse data, remove the junk, and leave his team with data they can be productive using (www.REISift.io). As Tyler says, a great aspect of real estate is that there are vast amounts of public information on virtually every property. This is also the downside, because a large portion of that data is not relevant to your business, but is included in the data sets you get. Manually sifting through copious amounts of data searching for gold nuggets is a non-stop, time-wasting, exhausting process. However, with the proper software tools and defined parameters, you can automate that process and be left with high quality leads which are useful and valuable.

Tyler still does some traditional marketing — direct mail, local networking groups, Chamber of Commerce, Facebook ads (yes, those are traditional now). He can control his costs and highly target these marketing expenses rather than shotgunning around blindly hoping to get a hit.

Don’t be afraid to take your data and work it to extract what you need for your business. An investment in data management can pay off exponentially both in money saved and time gained.For more information and more tips and tricks from Tyler, check out the Real Estate Disruptors podcast featuring Steve Trang’s interview with Tyler Austin at https://www.youtube.com/watch?v=KaI4L11iHV4&t=1094s. Find more helpful information on YouTube at https://www.youtube.com/channel/UCcsj9IjfX7-fhzLZRPtWo1Q?view_as=subscriber and www.RealEstateDisruptors.com.