Calling you out?
Hey there, JP Moses here — but only for a minute…
I’m here today to introduce one of AwesomeREI’s extraordinary investor contributors: Awesome Alex.
Alex is taking over this blog post space, and I thought you might want to know a little about him before you dive into the awesomeness he’s going to share.
Some of you are familiar with him already from our Daily Dose of Awesome emails. So for those who aren’t, meet Awesome Alex — genius investor, fantastic writer and smart businessman.
The Man Behind This Awesomeness…
Alex earned a BS in Economics, and then an MBA with a concentration in finance from the University of Southern California in 1992 and immediately put it to work — with 25 successful years of experience in investment banking, corporate finance, business operations, and information technology.
While living in Michigan, he got started in rental real estate investing in 2004 as a way to create a safety net for his family when the automotive industry there started to crash and burn.
Alex began by buying single-family houses and quickly built a nice portfolio of cash-flowing rentals, eventually shifting to apartment buildings. He certainly is not a bragger, but I think it's important to note that he’s had tremendous success — in the millions — which speaks to his credibility and longevity in the industry.
He’s written books and founded two remarkable companies — one is a real estate education and training company, the other is a private equity fund. When he’s not crushing REI, he’s a husband, dad of four, community supporter and volunteer.
And with that, I’m think it’s time to turn it over to the well-accomplished Awesome Alex. Enjoy…
You know, I hate talking about new year’s resolutions. I think they’re stupid.
Because if it's so important to change something, why do we have to wait until the page on a calendar flips? Why not make an April 4th resolution or one on October 10th?
I just don’t get it.
So, here's a suggestion for you: make 2 very important resolutions – today — regarding your real estate business… especially if you’re a newer player in the real estate game or have yet to feel great about your accomplishments or progress so far.
If that’s you, I’m talking directly to you…
So, why 2?
Because if you’re new in the business, or you’ve been in for a while and are just spinning your wheels, then there are really only 2 things that you need to do. And they don’t include attending yet another “free” seminar by that traveling TV guy or dropping a wad of cash on another coaching program.
2 things. That’s it. They are…
1. Dive into the Deep End
Let me be blunt — you need to get moving. I mean today. Not this afternoon. Not after dinner. Do something — right now — that’s specifically focused on putting money in your pocket.
The road to success in real estate investing is littered with the bodies of people who are still looking for one more book; or one more seminar; or just one more nugget of information that will give them the critical mass necessary to take the first step.
With all the information out there, it’s an easy trap to fall into.
Let me give you an example…
Back in early 2008, I decided that I was going to buy my first apartment building. I attended a couple of seminars; attended a couple of local networking groups dedicated to apartment buildings; bought some books and courses.
Then I got busy looking at apartment buildings. All told, I spent about 90 days learning, and then closed on my first building (20 units, $900k) in less than 90 days after I finished learning, using none of my own money.
And I knew absolutely zero about apartment buildings when I started the process.
My point isn’t to brag. Far from it. I know people who bought bigger and better apartment buildings much quicker than that.
My point is that some time later, I ran into a group of people who had attended the very same apartment seminars and networking groups that I did back in 2008. Not one of them had ever even gone out and looked at an apartment building, much less bought one.
I asked them why. Every single one of them said that they just didn’t “feel like” they had enough information to get started. 7 years later.
The knowledge gap that you have before you may seem like the Grand Canyon. It’s not. It’s a gap the width of a sidewalk crack.
So get your butt in gear. Right now!
2. Take Massive Action
I had heard about this “massive action” thing multiple times when I was just getting started in real estate investing, but I had no clue what it meant.
So I did what a lot of investors do — I dipped my toe in the water and proceeded with extreme caution. Why? I have no idea. Fear, probably.
So I did my direct mail. I made my ridiculously cautious offers. I turned the crank on my business at a rate that was comfortable for me.
And after 2 full years in the business, what did I have? 3 measly rental houses and 1 wholesale deal under my belt. That’s it.
I was disgusted at the end of the second year when I looked back at how little I had accomplished and all the time I had wasted. And right then and there I decided to change things. I joined an active local real estate networking group. I carved out more time to spend on my business. And I started treating it like a business.
And because of all that, without even knowing it, I had taken “massive action.” How ’bout that!
When I looked back after year 4, I was blown away. I was up to 11 rental houses, I had done 3 profitable flips, and I had done another 10 wholesale deals, even though flips and wholesaling weren’t even my focus. The most amazing thing, though, was that pretty much all of that activity had occurred within a short 16-month window.
That’s massive action. And it built an awesome foundation for my future investing.
Hey, you. Yeah, you…
If you’re just starting out or if you’re looking to do a reset — this is me calling you out…
I don’t care what your LLC name is. I don’t care if you have business cards. I don’t care if you have an 800-number vs. a local number, or if you know what contracts to use. All of that is meaningless window dressing and none of it matters because it won’t put one dime in your pocket.
What you need to do is get going and start making a mess. Today. As in right now. You can figure out how to clean it up later.
After you’re done counting your Benjamins. 😉
Get ‘er done,
P.S. Let's hear your thoughts. Can you relate? Or perhaps, Alex made you realize a thing or two?