You worked harder than you ever thought possible to get through college and land that corporate dream job.  Life was good….until reality set in.  Right?  The grim reality is that for most, their chosen careers meant very hard work and inadequate compensation for their time.  So one day you made the decision to stop working for ‘the man’ and break out on your own.  Start your own business. 

Your decision to start your own real estate investment business is one that you will not regret…provided you do it right!  Unfortunately, most start-up businesses fail a short time after they start.  The reasons are many and varied, but the truth remains that it just doesn’t pay to try and go it alone!  Remember the old adage: “No man is an island.”

Today we are going to discuss the advantages of working with a group in your own Real Estate Investment business. Isn’t it true that one person simply cannot wear all the hats in a working business?  So why try?   There is strength in numbers.  And the best way to grow and be profitable is to work with skilled people in each area of business management.

For example, there is sales, marketing, accounting, office/personnel management, advertising, website development/maintenance, ongoing education, etc.  We could go on and on about the many facets of a business.  What kind of accountant do you suppose a salesperson might be, vice versa?  Certain personality types lend themselves to certain patterns of thought.  Wouldn’t it be unfair to ask your accountant to handle your sales as well?  Usually so.

Now imagine yourself associated with a group of investors in a sort of network.  You share a common buyers list.  Perhaps you all have access to the same training materials.  What if you all used a shared internet marketing machine developed and managed by some of the best in the industry?  And let’s say you had someone experienced with whom to discuss your deals and seek advice whenever you felt the need?  Each of the foregoing questions address some of the areas in which private investors have longed for support. 

One fear that independent real estate investment professionals have is that of competition.  As with any industry, competition exists and can kill deal we work so hard to put together.  If one is to work with a group as discussed earlier, he/she would have to have assurance that their privacy and autonomy was respected.

Imagine if you could enjoy all the benefits of an investment group or network without fear of competition from your associates.  What if you had a designated territory that was owned and managed solely by your private business, but carried the power of a much larger brand than you could exert?   That kind of opportunity exists today at one national company.  There the training, materials, mentoring, marketing, etc. is all provided for the private business person seeking to sell house cash deals to cash home buyers.  In turn they joint venture with the company.  This type of business model has great potential because it allows the individual business to operate at their own pace while providing all the support in each of those vital areas already mentioned.

Remember this:  There is no longer a need to go it alone.  Help is available to serious private business people with a determination to succeed.  Why not investigate the available networks that you can join.  There are groups for every level of involvement out there.  Don’t let the ominous economic climate deter you from your objectives.  You can do it with a little help from your friends.

“No man is an island” is an expression that best explains the subject of today’s discussion.  The world of real estate investment is no different for the small, home-based investor than any other industry.  It is always harder to “go it alone.”

There is always strength in numbers.  That is why I have long stated the need to attach oneself to a solid, stable REI group, if possible.  The better organized the group, the bigger the benefit to the individual REI businessperson.

Take, for example, marketing.  If an individual decides to start advertising his business he will have to go through all the same steps that a larger conglamorate may perform.  Yet, the larger group will enjoy more “bang for their buck” because of sheer volume.  In the virtual world of the internet the same tasks are performed for both large and small businesses.  Why not pool efforts so as to keep costs to a minimum?

It really bothers me to see so many sincere folks spend their last dollar on another REI program in which they are still left to their own devices.  Imagine if they had connected with a group of experienced, motivated entrepreneurs in a non-competitive environment?  Their time and money would be put to much better use while they hunt for those illusive “killer deals” we all salivate over.  An example of one such group is found at www.invesdoor.com/mentor.htm.

Suppose you decide to start a list of cash home buyers for wholesale deals you wish to “flip.”  You hunt high and low for someone with all cash to purchase your house for sale.  The deals just don’t come often enough.  You have nothing for them and you lose touch with your prospective customers.  This is a sad scenario when we weigh in on the hard work it takes to secure cash home buyers.

Imagine, though, that you were part of a network that kept your buyers interested via the internet and maintained your relationship until you do have another cheap home for sale.  This is just one way that networking can maximize the effectiveness of one’s marketing budget.

Another advantage of such a group is the constant input of new methods and techniques.  The website referred to earlier is a non-competitive group under a mentorship program in which each member manages his own territory.  Thus, no two real estate investors can use any of the proprietary systems in the same area.  There are, of course, other fine networks out there.  National is always best in the long run.  Do your research.  No two are exactly alike.

The important thing is the results.  Remember this:  Efficiency is great, but effectiveness is better.  Look for the network that is enjoying results while growing their individual small businesses.  You’ve chosen the right industry at the right time.  Now go out there and make it happen!

Today I thought that I might go back to the basic fundamentals of investing.  As you know, whenever possible, I enjoy thinking in terms of principles and not formulas.  Formulas come and go, but principles are timeless.

Those of you that have been reading my articles for some time know that money is not the first thing in my life.  Does that seem a little odd for someone whose career is teaching people how to make money?  No.  Not at all.  You see, When someone earns money they trade their time for the currency that represents money in the country in which they earn it.  However, when one makes money it is conceivable that it is not in direct proportion to the time he/she spends in its pursuit.

Over the years I could have been driving a Rolls Royce or some other eye-popping car.  I’ll leave that to the Athletes, the Hip-Hop stars and others whose value is defined by their bling.  My values have always been much different.  My friends know that money has never been of prime importance to me.  My time is.  Because of this, I was always available for my kids when they were growing up.

If one follows the idea that you have to trade your precious time for money, then you will only have as much money as you are willing to give of your time/life.  I stopped thinking that way many years ago…and I’m glad I did!  Making money is what the wise investor does.  Investment = “making money.  This is a principle and, oddly enough, Biblical in nature.  If you don’t believe me, look it up:  Matthew 25:24-27.

One of the points of the parable there was the rightfulness of making money without toiling to “earn” it.  Those who are oriented in the, “work hard for your money” mindset don’t get it and will, sadly enough, criticize the wise investor who does it.  Making money rather than earning it is a principle that is taught in Mentor for Life™ that I founded last year.  Whether it is real estate investing or through any other means, the principle is the same.

Life is too precious to squander in pursuit of anything material, in my opinion.  The freedom that money has granted me, however, is immeasurable and I am glad that I learned that earlier in life while my family was still young.  I teach a lot about real estate investment and have also invested in Forex at times, but it has always been a means to an end…to free up my time so that I can pursue those things that are truly important to me.  Master this principle and you can master your life!

As a real estate mentor with students across the U.S., I have been getting reports from my joint venture protégés about their individual experiences. 

The company I founded, Mentor for Life!™, works with driven entrepreneurs in their respective local territories.  There is one comment I am getting more than all else and it has to do with the challenges each small business person typically encounters on their own.

Before I get to that I want to address the fact that anyone that desires to make a go of it in real estate investing needs to assess their intentions and frame of mind prior to writing their first offer.  In fact, I feel it is imperative that every new prospective real estate investor, whether wholesaler or “Fix and Flipper,” should be mentally prepared to 1) make sacrifices and 2) wait patiently.

Those in Mentor for Life!™ often hear me talk about “stuffing the pipeline” with deals.  There are very good reasons for this.  For one thing, many deals take time to close for one reason or another.  It would be foolish to start prospecting for a property and then do nothing at all until the transaction actually closes.  Stuff the pipeline with deals so multiple opportunities can be cultivated simultaneously.

Secondly, it’s a fact of business that deals “go south” or fall through.  How many offers might you make before one is accepted?  Anyway, if we have the proverbial pipeline stuffed with prospects we won’t as likely be overtaken with disappointment if we lose one.  There would be others in the mix.

Now let’s return to the field.  I often hear my new students overly-anxious about closing on a certain property and as a result I have to get them to step back momentarily and take a breather from the negotiations.  If their frame of mind is in a state of scarcity they will likely enter negotiations handicapped and either leave money on the table or lose the opportunity altogether.  This is just another advantage of having over two decades of real, hands on experience.  It is experience that I am glad to share with all my JV partners.

Few illustrations of fear are more aptly applied than that of a sky diver.  Along with fear of heights and other phobias, jumping out of a plane in flight represents a daring challenge.  Now, imagine if you knew positively that absolutely NO harm would come to you and following a safe landing you would be hooked on the thrill of sky diving.  Wouldn’t your initial experience be nothing but exhilaratingly fun?!?

Unfortunately, we don’t have the proverbial “crystal ball” and cannot foretell the future, however, if there is any truth to the saying “history repeats itself” then maybe prior experience is immeasurably advantageous.  Wouldn’t you agree?

I am personally acquainted with many who have explored the exciting business of real estate investing and they are glad they did.  Interestingly, they didn’t always feel that way.  Fear of the unknown can overtake you so that any possible enjoyment along the way is squelched.  Worse yet, you may never actually take the “leap,” even after getting your education, because fear prevents you from moving forward.

As a real estate mentor I can vouch for the many who are paralyzed by fear.  Without first-hand experience it is a virtually insurmountable challenge to branch off onto a new career path without a mentor.

Let me define what a real mentor does.  He/she has a vested interest in their protégé and stays with any sincere student seeking to emulate their mentor.  This is evident when the mentor sees the student closely following directions and trusting their sage advice.  Granted, some so-called mentors aren’t exactly worthy of such attentiveness because they aren’t truly qualified to carry the title.  However, if you find a good mentor you will need to go with the program from “cradle to grave” by following through on all directives without exception.

As the founder of Invesdoor’s Mentor for life!™, a national real estate mentorship and joint venture program, I see formerly shy, timid people advancing with gusto because they follow directions.  I think it was Donald Trump who said: “Courage isn’t the absence of fear.  It’s the conquering of fear.”  Fear is toxic and doesn’t usually disappear on its own.  Want to conquer your fears of starting your own real estate investment business?  Search for a genuinely qualified mentor and follow through.

Before I get into that subject, I want to first ask this question:  If you knew where to find great REI deals, would you know what to do with it?  The reason I suggest you ask yourself that question is because over the years many folks have sincerely asked me ‘where I get my deals.’  In reply I laughingly say to myself:  “If you knew, would you know what to do with them?”

Like any essential tool, a loaded gun in the hands of a hunter can be either useful or dangerous.  In fact, it is both.  However, in the right hands, the chances of its’ proper use is much greater.  I suggest that without proper training, (better yet, the right mindset) detailed information like where the best real estate investment deal are can be lethal to a business.  That is why, as a real estate mentor, I have stressed first things first.  Too often many novice real estate investors will innocently enter a deal without the tools to successfully complete it.  Earnest money has been lost and a great deal of time wasted.

Rather, understanding such things as human behavior and the very psychology of negotiation are fundamental to real estate investing as well as most other business ventures.  Without the fundamentals, a “great REI deal” is often wasted.  My company, Invesdoor.com, has been providing training and mentorship to entrepreneurs since 2008 and has successfully assisted students with their own deals under the program Mentor for life!™.  Buying yet another program from some REI guru has limited effect because they often focus on techniques and methods that are temporary at best.  Understanding human nature and how to create win/win solutions for people is of far more lasting value.

Where do we get our deals?  Actually, we find them in a variety of places.  Several of which are proprietary and I only share them with my students who are my joint venture partners.  Consider the fact that anytime a property comes available on the MLS, everyone knows about it within minutes.  If it is really a good real estate investing opportunity, it is often snatched up by the agent entering the listing into the computer….or one of their friends.

I am a strong advocate of avoiding intense competition whenever possible.  Therefore, we will often bypass the middleman and ferret out bargains by dealing directly with sellers.  Markets change and so do methods, but basic needs of people will remain long after an economic cycle moves on.  Principles are the basis from which I teach my students.  And last time I checked, ancient principles still apply in today’s business climate.

This past year I have cringed to hear of so many new REI home businesses folding due to an inability to close deals.  It may be a Wholesaler who cannot find a cash Buyer in time, or maybe a small-time fix & flipper who simply can’t find investment properties at an adequate margin to make a buck.  Additionally, the large Lenders have changed the rules repeatedly so that the poor folks who purchased expensive REO or Short Sale programs own an albatross which is no longer relevant.

I am so grateful that my company, which I formed in late 2008, was centered around the premise that there’s strength in numbers.  Basically, our strength comes from the large network of fellow entrepreneurs who operate their own businesses under my label.  We currently have national coverage and are soon branching out to a few other countries whose economies are similar to the U.S. market.

The power of a network cannot be over emphasized.  If you have your own real estate investing business, consider the following three networking tips that can make your chances of success far greater.

1. Circle of influence – This represents your team.  These are your supportive contacts, peers, with whom you can share new ideas.  The way the market has been changing, you have to make time for brainstorming in order to stay ahead of trends.  Your team can also contribute invaluable observations like giving constructive criticism, too.  Who, outside of your circle of influence, can you rely on for that?
2. Strategic alliances – If you are a small business owner, I strongly advise you to work with other individuals and complementary companies who may augment your services and respect you.  They will give you the word-of-mouth advertising that you need – just as you will do for them.  Thus, you can become more profitable and experience quicker services derived from your strategic alliances.
3. Exchange system – This refers to a referral or bartering system. All parties agree upfront just what will be exchanged. This system should be a win/win for all participants. Fairness and trust will ensure its success.  With the right intention, your exchange system will grow and prosper.  Seek those who truly embrace the concept of providing honest services and products for a fair price.  This is essential as bartering leaves a lot of room for abuse.  Be careful.

While the foregoing suggestions are an excellent way of expanding your business, it is important to stress the fact that a lot of time and energy can be spent if there is not a high level of trust among all participants.  That’s why I have created a non-competitive environment among my students and partners.  To me, I have no time for greed and don’t wish to spend my time policing those whom I cannot trust.  A tight network of close associates is a precious asset for any small business.

You may recall having said these very words!  Have you ever been into a deal without clear vision of how to get it closed?  Or maybe you’ve had a really great plan, but the unexpected struck and “threw you a curve ball” that you didn’t see coming?  OK, relax.  It happens to the best aspiring Entrepreneurs once in a while.  What’s more, it has happened to me plenty of times!

That’s what being an Entrepreneur is about.  You will often find yourself blazing a new trail and it can get a little scary at times.  Of course, in the real estate investment business, a “newbie” can really feel the pressure once the transaction is in contract and the “due diligence clock” starts ticking.  You have a very limited time to get things in place before you must pull your last contingency and the pressure’s on.

That’s why I am a strong advocate of working with a network and even on a team.  In the real estate wholesaling business, it is possible to close a deal per week when you have all of your support systems lined up.  Without the backup of a well-oiled team, you will find yourself caught up in the mundane tasks of your business rather than finding those golden opportunities known as those found in motivated Sellers….and Buyers.

Wholesaling in general, is a great way to break into real estate investing as it doesn’t require a lot of money or personal credit.  That’s why my mentorship program starts with wholesaling so that my students have an opportunity to earn some money, get out of debt and start saving for their own transaction in which they will actually take title.  The key here is volume.  I call it “stuffing the pipeline” and that level of volume will likely only be reached with the aid of a team.

During the past year I have watched a number of Wholesalers go out of business…not willingly, but due to the fact that they couldn’t put all of the elements together in order to get an appreciable number of deals closed.  They tried to do it solo.  I predict that wholesaling will present a tremendous opportunity for new Entrepreneurs for the next few years.  Nevertheless, the competition will get much fiercer.  I believe that, with few exceptions, those trying to do it all alone with fall by the wayside and only those wholesaling companies who operate a synergistic private network will prevail.

So, how will you avoid getting into a deal where there is no visible way out, having to possibly walk away from all of your hard work?  Start by getting a Mentor, especially one who has a support staff.  From my experience, the very best scenario is when the Mentor has a vested interest in his protégé’s success.  In other words, as joint venture partners, both Mentor and Student work together toward a common goal.

This past year I have cringed to hear of so many new REI home businesses folding due to an inability to close deals.  It may be a Wholesaler who cannot find a cash Buyer in time or maybe a small-time fix & flipper who simply can’t find investment properties at an adequate margin to make a buck.  Additionally, the large Lenders have changed the rules repeatedly so that the poor folks who purchased expensive REO or Short Sale programs own an albatross which is no longer relevant.

I am so grateful that my company, which I formed in late 2008, was centered on the premise that there’s strength in numbers.  Basically, our strength comes from the large network of fellow entrepreneurs who operate their own businesses under my label.  We currently have national coverage and are soon branching out to a few other countries whose economies are similar to the U.S. market.

The power of a network cannot be over emphasized.  If you have your own real estate investing business, consider the following three networking tips that can make your chances of success far greater.

1. Circle of influence – This represents your team.  These are your supportive contacts, peers, with whom you can share new ideas.  The way the market has been changing, you have to make time for brainstorming in order to stay ahead of trends.  Your team can also contribute invaluable observations like giving constructive criticism, too.  Who, outside of your circle of influence, can you rely on for that?
2. Strategic alliances – If you are a small business owner, I strongly advise you to work with other individuals and complementary companies who may augment your services and respect you.  They will give you the word-of-mouth advertising that you need – just as you will do for them.  Thus, you can become more profitable and experience quicker services derived from your strategic alliances.
3. Exchange system – This refers to a referral or bartering system. All parties agree upfront just what will be exchanged. This system should be a win/win for all participants. Fairness and trust will ensure its success.  With the right intention, your exchange system will grow and prosper.  Seek those who truly embrace the concept of providing honest services and products for a fair price.  This is essential as bartering leaves a lot of room for abuse.  Be careful.

While the foregoing suggestions are an excellent way of expanding your business, it is important to stress the fact that a lot of time and energy can be spent if there is not a high level of trust among all participants.  That’s why I have created a non-competitive environment among my students and partners.  To me, I have no time for greed and don’t wish to spend my time policing those whom I cannot trust.  A tight network of close associates is a precious asset for any small business.