July 12, 2023
Something I’m Reading
I’m still reading "The Courage to Be Disliked” by Ichiro Kishimi from last week.
Something I Photographed
UFC fight with some friends last week. Who do you recognize? Comment below!
Something I’m Excited About
We just launched Fund 9: A Generational Wealth Fund — our first-ever mixed-asset fund! Here’s what I love about this deal:
Diversification across mobile home communities + self storage facilities — two of the best performing asset classes during economic uncertainty that’ll help you reduce single asset risk.
This Generational Wealth Fund structure allows for a long-term, more tax-efficient investment with strategic diversification. It’s like the BRRRR strategy at scale. Meaning, once you get your initial investment back, you remain in the deal for the long-haul — benefitting from future cash flow and equity growth. Plus, you’ll get to benefit from year-1 bonus/accelerated depreciation.
50% of the properties in this fund are already under contract! Check out this video of me onsite at one of the self storage facilities we’re purchasing!
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: "How do you define success in your own life?”
I’ve always loved the Steve Jobs quote “If today were the last day of my life, would I want to do what I am about to do today? ' And whenever the answer has been 'No' for too many days in a row, I know I need to change something.” For me, when it comes to success, do I love what I’m doing in that situation?” So in other words, for monetary success, do I love where I'm at? Do I feel really good in regards to my money? When it comes to success with my body? Do I like what I see when I look in the mirror in a physical way? When it comes to success in my relationship? Do I like what I see in the relationship with my spouse or with my kids? Now, I would also argue on the relationship and kid side that I don't get to define success. The other person in the relationship defines success. In other words, I can think I'm a good dad and that I'm successful at it, but I'm not the one that gets to judge that. Ultimately, my kids judge whether I'm a good dad and my wife judges whether I'm a good husband. And so success in those regards makes it more about what they what they see.
Question: "How can someone effectively negotiate the purchase price of a property?”
That's a huge question and I could write a whole chapter on it. In fact, I have several times. But here's the summary.
First of all, negotiation is often about who wants it more. In other words, if there are 10 people all bidding on a house, that seller can choose between ten people which means you want it a lot more than they do. But on the other hand, if a person is desperate to sell because they're going to lose the property and you're the only one looking at it, well now you have all the power in that negotiation. I know this is so basic, but the reason that's important to remember is because you have to find properties in which you have the power. And that usually means going off market and looking at off market strategies such as direct mail, driving for dollars, cold calling, etc. Or even finding properties that nobody wants such as properties that are nasty, and going to have problems once they’re listed. You have to be able to take back that power. As for tactical stuff, number one- be the first person to make an offer. Speed and quickness help. Number two- submit multiple offer options. So instead of just saying "hey, I can pay 500,000 for your property” you could offer "I’ll pay 500,000 for your property as is, or I can pay 525 if you fix up XYZ” (you actually don't care about them fixing XYZ, you just want them to decide between your options). So instead of thinking yes/no, they think, which one? This also adds in a nice price anchoring component, which may help you as well. In addition, people like to sell to people they like. Which means just be kind, courteous, generous, funny, engaging, build an actual relationship with the seller whenever possible. And then listen. Actually listen to them. Find out what they really want and what really matters to them. As an investor, it's usually price for us but oftentimes with the seller, there are other things that are equally important. I know that sounds crazy to people like us who are investors, but the truth is, money is not everything to everybody. And so sometimes it's speed, sometimes they want to take care of the cat that lives next door, sometimes they have a tenant that they don't want to have to evict because it's a family member so you can take care of the problem tenant for them. Listen to find out what their real problem is.
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. The first step in hitting crazy goals is identifying them. Jason and his team are providing a complimentary impossible goal setting session – to help you uncover the impossible target you should be aiming it. Here is the link to get yours.
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 :)