Today, my guests are friends and neighbors. We’re going to talk about one word, “No.” It’s hard to say sometimes, especially in business and if you have a kind, generous heart. But you have to say “no” and master it.
Instead of just saying, “no,” ask the requestor, “What should I do?” By asking them that question, they understand and feel where you are coming from. Sometimes you just have to say “no.” You want to help everybody, but you know that you can’t sometimes.
Topics on Today’s Episode:
- No means no. At work, you feel like you have to do what your boss tells you, but sometimes you probably have the ability to say “no.”
- You are a real estate professional who wants to level up one step at buying bigger deals, or you’re new to the game and wanting to learn. You are working hard for someone else, who is making all the money. You don’t want to “work for the man” anymore.
- Have you given your soul to a company, and they didn’t care? Are you just a number? There’s lots of people who feel like that and want to break free.
- Break free from a job by replacing your income through real estate. Learn how to raise private money. Other people’s money (OPM) can set you free.
- When you raise private money, you can do multiple deals with multiple vendors and people. The power is not real estate, but in the money – the ability to attract capital from other people.
- You’ve worked all your life to have a retirement income. What were you afraid of? Not having enough money to retire or running out of money. Most people get advice from a stockbroker on how to deal with this fear. However, they get paid a commission to take your money, so be wary.
- What are your options? CDs, bonds? What you want is to be able to live off the interest. However, if you don’t have enough money and only get a 0.5% return, you’re going to start eating into that principle. That’s when people get really scared that they are going to outlive their money.
- With your retirement money, you’re not willing to risk anything. Remember 2007-2008? You’ve been saving your whole life, but when the market crashes, it can wipe out your money. Once you take the money and don’t have principle, it snowballs. That’s the real reality for people.
- Apartment investing offers financial solutions. You never sell anything because you don’t have to. It is an opportunity for people’s money to grow.
- Usually, with an apartment deal, there’s a 6% preferred return. If an investor gives you $100,000, every year you’re going to be paid $6,000.
- The 6% is far more than anything that a stockbroker or anybody could offer you. That’s a real deal.
- Pay quarterly. People want to schedule their monies, and they like paychecks. If paid quarterly, that means you’ve got an income stream. An income stream is important in return because that’s how you pay your bills. You want to turn on as much income stream as you can, so you never have to touch your principal. The 6% is probably the best money you can get.
- With apartments, 6% is usually based on the cash flow because there are several buildings and tenants pay rent every month. Tenants expect rents to go up, so never disappoint them. By raising rent, that’s how you raise your income.
- Hold onto properties for five years. Year 1, fix everything that is broken. Year 2, fix all the broken tenants. You upgraded and fixed everything, made it nice and shiny, so now you’re going to attract a better tenant profile. Years 3-5, optimize your rent growth potential and keep expenses as tight as possible.
- Guess who pays a lot of money when you sell it? Other investors or family office. A consistent rising income story: You have three years of solid operation, plus two years of fixing things.
- When you sell it, you usually give investors another 6%. That’s a total of 12%. It’s a growth and income story. Everybody loves growing incomes because everything keeps going up, too. If you reinvest in upcoming deals, your income will rise.
- When would you say “no” to an apartment deal? If it’s in the wrong spot. There’s a lot of foot traffic around the apartment complex during the day, which means nobody’s got jobs. You look at and around the property at night because you see a lot of things that no one tells you about. During the night inspection, you see a drug deal. It is time to say “no.”
- Walk through the worst units. Toilets are yanked off and there are misplaced pipes – a handyman hack job.
- If someone wants to work with you on an apartment deal, they may think it is amazing, but you need to educate them and share your honest opinion. They get into it. They see a deal, and all they see is a working deal – no roadblocks or red flags.
- It is hard to say “no” and hurt someone’s feelings. But you are preventing them from making a really bad decision. Champion each other’s dreams and goals. Push each other to be successful.
Quotes:
“No is a hard word sometimes to say, especially in business.” Corey Peterson
“I’ve given my soul to this company, and they don’t care. I’m just a number. I know there’s lots of people that are out there that are like that and you wanna break free.” Corey Peterson
“I learned how to raise private money. OPM, other people’s money, can set you free, and that’s what set me free.” Corey Peterson
Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.
Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.
