A Note From Justin: Last time Mike Simmons form Just Start Real Estate started with the first of 6 limiting beliefs that keep new investors from making 6 figures in this business. If you haven’t checked it out then be sure to read it here. Today he continues his “tough love” with the second belief that limits your success.
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Over the next six weeks, I am going to go over what are, in my opinion, 6 Limiting Beliefs That Will Keep You From Making 6 Figures in Real Estate.
At times, I am going to use tough love to deliver the message. This is not with the intention of discouraging you or making you feel bad about yourself, but I really think the best thing an experienced investor can do for someone who is starting out is to be frank with them. Sugarcoating the facts only gives the impression that it’s not that big of a deal.
Justin has a saying: Fail Forward Fast. He uses the word “fail” because that is exactly what you will do in the beginning. You will fail and you will have setbacks. He doesn’t use a soft or vague word; he is deliberate in using the word fail, just like I am going to be deliberate in telling you what beliefs are going to hold you back in this industry. Then, I’m going to tell you why these beliefs are absolutely ridiculous. So get ready for the truth, and get ready to grow as a real estate investor and to shed the BS that 95% of would-be investors use as an excuse not to get started.
Here is the second limiting belief that is holding you back in real estate:
You don’t think networking is important.
Networking has been a part of doing business for as long as business has been around. With the advancements in technology over the past 30 years and, more specifically, over the past 15 years, it has become easier to communicate with more people more often and over greater distances using email, texting, Facebook, Twitter and LinkedIn, just to name a few. That being said, I’d like to talk about the difference between online networking and in-person networking.
Online networking is a relatively new phenomenon. It has only really existed for the past 7-8 years, and only in a major way for the past 4-5 years. Online networking, also called “social networking”, has changed the game by making it possible for your network to be global instead of local or maybe regional. Through networks like Twitter, Facebook and LinkedIn, entrepreneurs, including real estate investors, can easily communicate as well as share knowledge and information with the click of a mouse or through their mobile devices. This networking revolution has given everyone the ability to exponentially increase their sphere of influence.
Online networking is how many people meet and do business. I am writing this blog right now for Justin. I live in Michigan. Justin lives in California. We have never met in person, yet we are working together for the common benefit of our business, and we have plans to work together even more in the coming months. This would probably not have happened 10 years ago.
In-person networking, on the other hand, has been around forever. It is still one of the most powerful ways to collaborate and develop relationships with people. There is something about seeing a person face-to-face that helps you develop a comfort level that online networking really can’t match. In-person networking is how business has been done for centuries. Even a business relationship that initially developed online will likely eventually have an in-person component. In-person networking can happen at events like masterminds, conferences, local REIA meetings, dinner meetings, etc. These in-person networking events are opportunities to connect with like-minded people in your community. I have attended countless networking events and the results have had a huge impact on my business!
Now that we are clear on the difference between online and in-person networking, let me say this: you should be doing both. In-person networking is probably still the best way to connect with people and develop business relationships, form partnerships, and raise private funds for doing deals. To illustrate my point, I will tell you exactly how I built my business when I was starting out; it was all through a combination of online and in-person networking.
–> 1st Benefit of Networking: FOUND REALTOR
In 2008, I signed up for a local real estate “boot camp” run by a successful real estate investor in my area. It wasn’t cheap, but at this boot camp I gained the basic knowledge that I needed to get started. The organizer of the boot camp also ran a local mastermind for real estate investors. I started attending the mastermind and talking to the people there who were actually doing things in the business. The first thing I did was ask for recommendations for a good realtor; I was given some names and eventually found my realtor. That realtor helped me find my first deal.
–> 2nd Benefit of Networking: CREATED AWARENESS OF ME AND MY BUSINESS
During the renovation process of that first property, I started taking a ton of pictures and videos of the progress. My mentor suggested that I create a Facebook business page and upload all of the pictures and videos. I did that, and also started posting updates about the project, including projected profits. Before long, people were liking my page and interacting with me by asking questions and commenting on the work that was being done.
–> 3rd Benefit of Networking: SECURED PRIVATE FUNDING FOR NEXT PROJECT
Through my Facebook page and through attending several local real estate investor meetings, I began to get introduced to private investors in my local market. Some of them had seen my Facebook page and were very interested in my project. By the time the renovation on my first property was completed, I had two private investors interested in loaning me money for my next project; I had not even sold my first property yet!
–> 4th Benefit of Networking: SECURED PRIVATE FUNDING FOR YEARS TO COME!
After I flipped my first property, and bought, renovated, and flipped my second property (using 100% private money), I was asked to speak at a local real estate investing event. After my short presentation about how I flipped my first property, I was approached by two more private investors who were very eager to fund future projects! I continued to keep my Facebook page updated with my latest projects. This cycle repeated itself a few more times: flip a few properties, interact with people on my Facebook page, network, acquire more private investor funds. Eventually, I had more private investor money available than I had deals!
The examples above are only a portion of the benefits I have gotten from networking. I have also formed friendships that have been invaluable to me and my business. Some of these friendships have resulted in partnerships and various collaborations. I have also met people who I talk to constantly about business, and we bounce ideas off each other. I learn from them, and we push and inspire each other to take our businesses to the next level.
Real estate is a people driven business. Most successful investors will tell you that. Every networking event/opportunity holds the possibility to change your business. Every significant moment that changed my business and helped me become successful came as a direct result of networking.
Every single one.
And here is the kicker: I am not a very good networker. I’m not. I am terrible at it. I am not the guy who walks into an event and effortlessly works the room. I am an introvert by nature. Networking is something I had to learn and work on, especially when I was starting out in real estate. So don’t let that stop you. I didn’t, and if I had I wouldn’t be talking to you right now. I’d be at home wishing I were a real estate investor.