Building your real estate business?
It will be thrilling at first, but then…
…you have to set up certain business systems, which gets boring… as it should be!
It may not be sexy or exciting, but once you set your system up you will repeat themover and over if you want to reach success.
I did a Periscope session on this exact topic.
Give it your attention for a few minutes. (It’s pretty entertaining, so you won’t get bored.)
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Here’s the deal…
If you’re doing things right conducting business should be boring!
- If you don’t hop from one strategy to another…
- If you find a niche that works well for you that can be repeated…
- If you develop a system to generate leads… which means buyers, sellers and investors… you will do really, really well.
Here’s a quick video that should help you understand how to be successful in business…
So, what’s the best system for business-building?
Specifically, here is the exact system that you want to go through over and over and over again that will make you very successful as a real estate entrepreneur:
1. Become the local expert
In short, to become the local expert, people have to see you as such. That means you have to put yourself out there and talk to bunches of people. You’re going to attend real estate investing events, you’re going to place yourself in the eye of the public and get the attention of passersby. At a coffee shop, you’re going to sit with your computer that should have a sign on it that draws people to you.
If you want the exact words to put on the back of your computer, go to www.cashflowdiary.com/10words. Do it in a minute. For now, keep reading.
You become recognized as the local expert when you share with others what you do, what type of investor you are, what types of deals you are looking to do and what types of problems you can solve for other people through your real estate transactions.
You may wonder about how you develop your voice when becoming the local expert. If so, you should find this video helpful…
You become a local expert when you start attending and hosting Cashflow 101 game events. You become a local expert when you read books on real estate investing and entrepreneurship, and then start recommending those books. You should get good at taking books with you wherever you go. When people see them out on your table, for example, at the coffee shop… it’s gonna garner a few conversations about the books. (Rich Dad Poor Dad always gets a few comments that lead to great conversations.)
2. Get good at your III Interview (Triple “I” Interview)
In Cash Flow Diary-speak that means you sit with investors, sellers and buyers to interview them in a very friendly way to find out what they are looking to do, what problems you can solve for them and what type of properties and investing they’re into.
This is a topic you’ll find in a lot of Cash Flow Diary live events. If you’re new here, you should give this podcast episode a listen…
You will learn that one size does not fit all when it comes to real estate deals. What one person is looking for help with is not what the next person needs.
One person may be an investor and another will be a buyer. When you get good at the interview you will be able to match people to your deals. If it’s not a fit, don’t force it. That rarely turns out in your favor.
How you get people to sit with you for the interview requires a system… and it is repetitive. Read till the end of this article and I’ll show you where to go to get the words to use to start your system.
3. Learn how to explain deals inside the P.A.Q. (Profit Analysis Quadrant)
You can do this on the back of a napkin! This helps you raise as much private capital for your deals as you need. This is how I’ve raised literally millions of dollars in private capital for my deals. I’ve rarely used my own cash and certain didn’t use my own credit… because I didn’t have any.
You want a good look at the P.A.Q. and how to explain things inside a deal? Devote about 15 minutes and watch this video…
You can most assuredly get other people to finance your deals. It happens all the time. But in order to get it, you have to be able to explain returns across a quadrant. In short, returns are found in Appreciation, Depreciation, Amortization and Cashflow. Once you can show people the numbers and the percentages you will do more deals faster!
4. Enroll others in your vision
You get to ask people to join you in your mission. You are required to ask them to join you. Otherwise, you’re going to have to go it alone and that won’t work.
There are ways to share with others what you are doing and about your goals. It boils down to being a good storyteller. You are not “selling” them on anything. You are not trying to convince anyone of anything. You are simply sharing your mission and goals via your story.
Here’s a quick video that can help you figure out what you want to do in real estate…
You will need to be engaging and excited to talk about what you’re doing inside real estate, because that is contagious. You have to show others your long-term vision and how they can participate to make the dream a reality. You get them to see their role in what you’re doing and how it benefits them. It is, after all, more about them than about you… always.
Once a person is enrolled in your vision it’s pretty hard for them not to want to be a part of the journey.
5. Ask for referrals
Maybe the person across the table won’t or can’t work with you in a deal for whatever reason. Maybe their Investor Identity doesn’t match yours and what you’re doing. That’s okay.
Truth is… if you’ve done a good job at sharing your vision, and you did a good job in your III interview, the person should be open to referring others to you. It happens all the time!
Watch this video and see if it doesn’t help you get referrals, because it tells you how to generate leads, which involves getting referrals…
Of course, this part of the process can’t be pushed or faked. You have to ask politely, and it’s worth the few seconds it takes to let others know it’s okay with you if they tell their friends, family and associates about you, because maybe you can help solve their problems, too.
This system is not so different than those used by other businesses.
Think about it…
Let’s take my favorite office away from home… Starbucks. It is a business and, as such, it has a system to raise money (typically called Wall Street), a system to attract customers, a system to keep them engaged and a system to get them to tell others about them and to keep them coming back.
Starbucks has built its identity as a provider of excellent coffee and coffee drinks.
Once they got that system down, they didn’t suddenly decide to sell shoes or paper products. They didn’t decide to compete with a fast-food hamburger joint.
Starbucks’ niche is coffee. They got good at selling basic coffees and only then did they add fancier coffees and coffee-related products.
It should be the same for your real estate business.
The hard part is that there are so many opportunities inside real estate investing that it can be overwhelming. But here’s the deal, only after you master ONE type of deal should you go on and do others.
This is something you will learn in podcast episode 109!
If you don’t stick with a niche you’ve found that is working well for you, it’s like being a misguided gold minor.
Imagine that as a gold minor you’re working, working, working to find your way to the gold. When you find it, does it make sense to suddenly go off and start digging another hole?
If you have discovered a niche in real estate that works really, really well for you… why would you go off and do something different in another market when the secret to your success is actually to replicate what you just did?
It would be like walking away from a gold mine full of gold to see if you can find another productive mine. Does that make any sense? Um, no…
However, this is pretty common among newer real estate investors.
Again, there are so many opportunities in real estate investing that it’s easy to find yourself wanting to jump around from market to market to try new things. (We call it the “next shiny object syndrome” and it’s not good.)
If you’ve never jumped into the real estate entrepreneurial pool and you need a little nudge, give this podcast episode a listen…
As a new investor, it’s more important to master one market and add to it before moving on to something else…
- You may master buying and holding first before moving on to something else.
- You may master finding great properties and wholesaling them to other investors before moving into buy-and-hold strategies.
- Maybe you discover you’re really, really good at finding single-family houses and changing their use. Do that a few times before heading off to try something else.
This may sound boring, but guess what?
Truth is… business is boring if you’re doing it right.
You must set up your systems and perfect them before moving onto something else… and then that something better be related to what you’ve gotten good at doing.
So how do you determine that niche? Again, it’s in the system…
First you figure out which problems you are going to solve. Then you determine your Investor Identity. Once you have that clarity you can talk to other people about your mission, vision and goals.
All of this helps you build your credibility as the local expert in your niche. Only then will people want to jump onboard and help you reach your goals.
In real estate investing, there is a specific business system and you will take the same exact steps over and over again to become successful in what you are doing. It isn’t exciting, but sure does work!
If you like the information in this article and want the exact words to kick start your real estate investing business? Click below: