Last week I finally got back into town (LA) after 2 back-to-back business trips. Right now my brain's still a little mushy and it's been a full week since I've been back in the office.
I have a car service that brings me to LAX then picks me up when I get back into town. Usually I like my drivers quiet with some type of music playing while I force myself to look out the window so I don't get car sick.
And yet, despite my repeated requests to the service to my specific requirements, I so often get the lip-flapping driver from hell. And it's always when there's hours and hours of traffic on the 405 freeway.
Last week was such the incident.
The conversation has to start off with..."What do you do?" And then quickly snow balls into..."How can I get involved in real estate investing?"
Very easy. Just start doing it.
My dumbest students actually do the best in this business. Why? Because they never second-guess themselves. They jump right in and start working the business.
My smart students, unfortunately, never end up doing anything. They're the ones with multiple college degrees whereas they'll find a kick-ass cash flowing deal then spend several nights thereafter finding every reason as to why the deal won't work out. All at about 2am.
And guess what? The deal doesn't work out because, well...they never do the deal at all.
So, back to Larry the limo driver.
Actually, I think his name is Lawrence but Larry has a better ring to it.
I tried side-stepping most of his questions just because my brain was fried. After all, I had just got back from doing my 3-day seminar in Detroit where I was under the weather most of the time, had lost my voice, and was beat beyond belief.
But I'm not one to shun someone from getting a basic education. So, I gave Larry a simple set of tasks to begin building his personal and business credit so he could get started investing in real estate using that credit to get his down payment money together. I further advised him to stick with smaller properties like "quads" and 6- or 8-plex apartment buildings.
At the end of the never-ending drive to my house, I gave him my business card and told him to email me and I'd send him my Apartment Building Millionaire book and workbook.
Then I didn't hear from him. Typical, I thought. People are all gung-ho for a minute then realize that anything worthwhile requires a little bit of work.
Well, I finally did hear from Larry this morning. He sent an email with his address for the books. And I went downstairs, actually packaged the books up myself into a Priority envelope, and mailed them off to Larry with a personalized note.
So this is the point where you just have to ask yourself..."Is Monica getting to some kind of point here?"
Yes, there is a point.
Some of the advice I was giving Larry about building personal then business credit to raise down payment cash is one very effective way of raising capital. Aggressive real estate investing such as SFR flipping for profits is another way to raise the money for those passive income real estate deals.
Then there's another way...
Money partners, of course.
I have had 2 ways of working with my students in this department.
1) Offering the opportunity to partner in with my investor partners through my Viper Wealth group as well as through select mentorship groups.
2) Teaching my students how to find their own investors.
Both have been successful yet both have had "holes" in their effectiveness.
The problem with having my students work with my investor partners over the years is that they have changed criteria so much (especially during the downfall of the commercial market in 2008 and every year since then), students tended to not present deals to me correctly (i.e. "Here is my Loopnet link so...I get 50% of the equity split and cash flow of this deal now, right?"), and sometimes students would lie about the amount of due diligence that was done just to find out that everything they knew about the deal was based on misinformation the scum-bag listing agent had said about it.
Based on the last fact mostly, many of my investor partners didn't want to work with my students anymore.
Of course, I still have a handful of investors who actively invest with my students, especially with apartment building and MHP deals across the nation.
My pool of investors had gone from 14 to about 6 in the past couple of years.
Now I have new blood. I have gotten an "injection" of another 9 investor partners into my "pool" through one of my speakers at my recent Detroit event.
Since I have 9 investors that have specific investment criteria (different from my 6 remaining investor partners) and these investors are actively and aggressively looking for new deals, this 6-week mentorship group (conducted by me and Robert Combs) completely revolves around the deal and proposal requirements of this specific set of investors.
You'll discover which types of properties they are looking for and in which areas of the country. You'll get an instant assessment from me and Robert about whether your deal is worth building for this set of investors...or not. And it will give you an opportunity to find different deals.
You can build up as many deals that you want to for this group. You are not limited to a certain number of deals. If you want to do 10 deals, you can.
After you determine which deal you'll want to pursue, you'll then begin building a specific type of property proposal for the deal to fit the exact submission requirements for this set of investors. The proposal is short and sweet, not to exceed 15 pages (including having lots of pictures of the property).
Once your proposal is completed, it will be submitted directly to the investors. These investors will then contact you to work with you on the deal.
This is the first mentorship group of its kind where you find then build deals for specific investors who are actually waiting to review and participate in your deal.
No, this is not bird-dogging. All of these deals are partnership related which means you'll get a piece of the deal!
See you at the top!