May 17th, 2023
Something I’m Reading
My buddy, Steve Chou, just released his new book "The Family First Entrepreneur”. It’s a great read on how to achieve an ideal work-life balance.
Something I Photographed
I know I already shared this on my Instagram, but here’s a picture of me with the book I mentioned above.
Something I’m Excited About
The Texas 3-Pack, Open Door Capital’s newest offering is over 70% subscribed! Our low basis, a 3.8% fixed rate for 7 years, and strong submarkets have made this one go fast. To provide this opportunity, our partnership with Disrupt Equity was key. They found the deal, and their in-house property management company is already crushing it in the Austin and Houston markets. This is our 7th multifamily deal together - improving lives and growing returns.
Partnerships can unlock massive advantages in real estate. They combine diverse skills, lessen individual risk, boost capital, broaden your network, and improve execution. We love working with the DE team and are excited to enjoy the wins ahead with investors. Visit odcfund.com/texas3pack to learn more!
I’m also excited for the BetterLife REI summit happening next week here in Maui! We also added another 300+ new members to the tribe this week and have closed the doors on enrollment.
Something I Can Answer
I’ll be answering two questions asked by a BTB subscriber. Have a question you want me to answer? Reply to this text with your question!
Question: “What advice would you give to someone who wants to take their passion and turn it into a successful business venture?”
First, it's important to recognize that pursuing your passion as a business can change your relationship with it. For instance, if your passion is baking cakes and you decide to open a bakery, you may find that the joy of baking cakes diminishes. Therefore, it's crucial to evaluate whether you're willing to potentially sacrifice your passion in the pursuit of a business.
Secondly, it's essential to understand that there is a significant distinction between being skilled at baking cakes and running a bakery. This valuable lesson is emphasized in Michael Gerber's book "The E-Myth Revisited." If you haven't read it yet, I highly recommend doing so. Acknowledging this difference means accepting the need to develop and acquire the necessary business skills. Don't assume that being adept at your craft automatically translates into business expertise. Dedicate time and effort to become a competent business leader. Explore business literature, attend seminars, and consider joining a business mastermind group. By focusing on honing your business skills, you can create a pathway for your passion to generate income.
Third, it's important to remember that just because you love something doesn't guarantee that the market will pay for it. For example, you might have a strong affinity for creating dog-shaped cupcakes, but there may not be sufficient demand for such a niche product. Adaptability and flexibility are key. Seek out a "product market fit" where your business effectively meets the needs of consumers. This requires staying open to feedback, making necessary adjustments, and finding the right balance between your passion and market demand. A great book on this topic is “The Lean Startup” by Eric Ries.
Question: "What advice would you give to someone who is just starting out in real estate investing, and what lessons have you learned over the course of your own career?”
1) Commit. Most people enter into real estate casually and therefore, tend to give up easily. So commit for the long haul. Realistically, it’s going to take some time to get good.
2) Figure out your niche strategy. What type of properties? (single-family, small multifamily, commercial, office building etc.) What are you going to do with it? Rent it? Flip it? BRRR? House hack it?
3) Figure out your funnel. How are you going to get your leads? I call mine the LAPS Funnel (Leads, Analysis, Pursue, Success). Leads can come from market sources such as real estate agents or off market, like driving for dollar, there is no marketing. Once you have all your leads, you need to analyze them and find out what price you can pay for them. Then once you have a presentation, you make an offer or you pursue it, go after it. That sometimes that works out to a success.
4) Financing. If you have the down payment, go get pre-approved from a bank. If you don’t, you’re going to have to get creative. This could mean bringing on a partner, private money, hard money lending or you could wholesale to get the money for the down payment.
5) Set clear goals. Set goals for yourself on action steps and what you want to accomplish and then go!
6) Accountability. It’s too easy to give up but when you go on a journey with other people, it’s way easier to keep them together.
Something I Recommend
Many of you know of my performance coach, Jason Drees. Jason has been my coach now for over 5 years and has helped me personally overcome some limiting beliefs, scale my business, and hit some crazy goals. He’s hosting a free workshop to help with goal setting and mindset growth. You can register for the workshop and learn more here.
For my health-conscious friends (or those trying to be healthier), I’ve been using MyBodyTutor for years for accountability on my fitness and diet. These guys assign you a coach to hold you accountable, track your food, suggest exercises etc. You can check them out here.
Disclosure: “Some of the links in this post are affiliate links, which means I may earn a commission if you click on the link and make a purchase. However, please note that all opinions expressed here are my own and I only recommend products or services that I have personally used and found valuable."
Your Friend,
P.S. Comment below and let me know your thoughts on this week’s BTB! Please be friendly :)