“It is just another zero… ” I laugh. “What?” He asks. “Wait… your serious?” I reply. “Hell yes I am serious!! Are you afraid of a zero?” I could not respond.
He got me. I guess I was afraid of a zero. Big profits scared me. Was it the risk of the deal or the fact that I did not believe I could earn that kind of money? Up to that point I was doing deals making $10,000 to $20,000, which was decent money, but nowhere near my potential. I remember the first year I saw 6 figures on my tax return. I was very proud of that year. Now I wonder how I was able to live on that income. What changed? My mindset.
A few weeks ago a friend of mine and I went to a commercial real estate investing conference. I was blown away by the quality of the attendees. People at this conference are not seminar junkies. These people implement what they learn and take chances. I was hearing stories about profits on single deals of 2, 3 and 4 million dollars. Many people I spoke with started in the fix and flip business, but none of them were willing to look at a small deal like that again. What changed for them? Their mindset.
We shared a room and went out each night to network with other attendees, so we had a lot of time to chat. He mentioned to me several times that he is excited where his business is going and is excited to make the money he is finally making. He is making 7 figures a year. “I know I work hard,” he said to me “I can choose to work hard for $100,000 a year working for a company or I can work hard, take some chances, and make $1,000,000 a year doing deals.” I started working with him when he was fixing and flipping houses. Now he will not look at a deal without $200,000 in profits. What changed for my friend? His mindset.
To some this might sound arrogant. It is not arrogance at all. In fact, most of the wealthy people I meet, including everyone I met at that seminar, are extremely humble and open. The difference is they know their value. They put a value on their time and effort and will be paid for that. The mind will not allow them to accept less. That simple shift has allowed them to make big money. Here are a few mind shifts that have helped me turn $10,000 or $20,000 deals into $100,000 or $200,000 deals.
I deserve to be rich. There is no shortage of money to earn. There is no scarcity. Anyone that wants to be rich can be. Everyone deserves it but not everyone is willing to do what it takes. I understand that I deserve to be rich, with the understanding that it does not come free. I need to work hard and make smart decisions and then I can have anything I want. Look at it this way. Some people make 7 figures a year and drive their companies into bankruptcy. If they can earn 7 figures, why can’t you?
Think long term. This is not a race and not a get rich quick business. It is about building relationships and investing for the future. The quick profit game is played and lost all the time. I see it with investors, Realtors, lenders, and others on a regular basis. They are so interested in the commission or fee, that they forget to take care of people and add value. I focus on adding value and taking care of clients and partners. My reward for that over the years has been a steady growing company that pays me each and every month and a database of vendors, partners, and deal finders that want to work with me to make big deals happen.
Leverage is my friend. I have learned the hard way that financial leverage is a dangerous necessity. With that said, I would not be doing the big deals I am doing now without it. I have written articles about this topic because I believe it is extremely important. Leverage helps you accomplish more with less. It could be leveraging other people for their time, knowledge, and skills; or leveraging money in the form of partners or loans to get a deal done. Myself and several other people I know have built up a single family rental portfolio that is producing big time today because we leveraged hard money with bank financing. These are simple little deals that will produce big profits over time.
I can’t fail because I won’t give up. You only fail at something if you stop trying. I understand that I will be successful 100% of the time because I am not willing to waiver on my commitment. This has served me over the years, but has not been easy. I remember times I would be laying in bed wide awake at 3 am wondering how I was going to get out of a mess I got myself into. Thinking how easy it would be to let people down and stick my head in the sand. How my life, at that particular time, would be so much better if I just gave up. It was those trying times that made me who I am. Because I did not give in to the temptation of defeat, I made it through, learning the lessons necessary to become who I am.
Excuses are for losers. Harsh? I don’t think so. If you try and fail, great. The key is to take ownership of that result, learn from it and try again. The second time might have a better outcome. If you fail again, own the result, learn and try again. As so it goes. When you fail and make an excuse, you are shifting blame and not accepting the educational value of the failure. Losers do that. With that said, you have to try before you can fail, and so many people don’t even try. The reason? A bunch of excuses. No matter how broker you are, no matter how limited you are on time, no matter how unfair your life is, there is still a path to success. When I got started as a real estate investor, I was broke with no credit. I was in college full time and worked at night in a call center 30 hours a week. I was “unable” to work on my business except Saturday nights and Sundays. So I decided to make my calls as I walked between classes. I decided to use my lunch break to sit in my car and work on deals. I decided to give up every single weekend to hang signs and visit sellers. I decided to make it work.