The 4 Mandatory Skills of a Real Estate Entrepreneur
Investors can drown in the vast sea of information on how to do deals. There’s a tendency to overcomplicate an otherwise simple business model. I’m here to challenge you to start thinking about the skills you must be building first before you can ever do multiple deals.
So, I hereby give you permission to forget about ALL of the nuts and bolts of wholesaling real estate, Podio, and all the fancy wingdings that can distract you. You already know what you have to do to get a deal done, but in order to do it effectively and stand out, you need to focus on learning and practicing the following mandatory skills.
I will expand upon all of these points in the form of longer blog posts later. For now, I’ve provided links to some great resources so you can dive deeper on these ideas and start sharpening your skills. Those resources will start you down a path of personal growth that will set the conditions for a massive real estate company. The following skills resemble the foundations to your personal business value, and can transcend into all areas of life:
The mindset of abundance is a necessary skill. It’s like learning a new language. “I think,” “I should,” “I can’t,” are replaced with “I know,” “I can,” and “I will.” See if you can catch yourself next time you use words of scarcity. The awareness of these language patterns is where it all starts. As soon as the voice in your head changes its thought patterns to “how CAN I” accomplish this seemingly impossible task, your subconscious will start to influence every tiny decision you make.
These tiny decisions rooted in abundance will snowball into a better team, more clarity in knowing where you want to go, more deals, and more time for you to do whatever you want.
I’m HUGE on mindset and could talk about it all day, but check out this podcast with Chris Lee and Lewis Howes for some great insight on abundance.
Communication is the most powerful of all human skills. Learning to effectively influence, lead, and interact with your team and your sellers/buyers depends on your proficiency of communication. How you represent your company on the phone and in person obviously plays a huge part in how well you can negotiate deals without being stepped on by the other party.
Learn how to control the frame, but most importantly, know how to position yourself when you are talking to sellers. You can have all the leads and the best lead management system in the world, but if you don’t know how to close deals, you’ve already lost. Listen to the following podcast if you want to increase your conversion rate on appointments: Todd Toback is the man.
This is a volume business, meaning you need to do multiple deals over and over. When you are doing something over and over, you need to define that process, build a framework for the process, and hire a team to execute the granular next actions of that process.
That is exactly what we’re building with InvestorFuse. The processes themselves will be built into the workflow of InvestorFuse, so we’ve got you covered there, but it’s still important to understand the mindset behind effective lead management and systems implementation so you can hit the ground running when InvestorFuse launches. Read “Work The System” by Sam Carpenter. Also, check out this video on the first steps towards systemizing your RE business.
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Your ability to know your market and understand the art of comps is a mandatory investor skill. Proper due diligence will make you millions (and potentially save you millions) over the course of your career. You need to know how to determine repair estimates, or have someone on your team that is very good at this within 5-10k.
When I was first starting in Baltimore, I used the MLS to look at completed rehab deals, saw what they bought the property for, looked at the old pics, and used that data to learn specific areas of my city. It takes time, but you should absolutely become a master at this. Here is a great post from Justin Williams about properly analyzing deals.
The ONLY way to become a ninja at property analysis is to go and look at real live deals every single day. There’s no automation tools that know the art of comps, so the more deals you look at personally, the more accurate you’ll become.
If you can prioritize practicing and learning about these 4 skills over everything else, the nuts and bolts of this business will naturally fall into place. Focus. There’s no doubt you’ll be a successful investor when you’re an abundant minded master communicator, system creator, and property analyzer.
Cheers to your ongoing successful journey!