Today I’m going to feature an excellent guest article from Lou Brown, our speaker at Traction REIA this week.
If you have the intention to be successful in Real Estate, you should first take a look at what works for others.
Let’s understand what you want to accomplish:
You want to have your own business in real estate.
Either you want to buy and sell, or buy and hold, or deal in mortgages, or buy and renovate, or build, or subdivide, or some derivation of these.
So we are going to proceed based on what we think we should do next.
Let’s take a look at what other entrepreneurs do to go into business. The track that follows the traditional process for folks going through the process of earning a living includes predictable paths.
And this is the distinction I want you to know. Teaching a skill to go into business is what is taught at college… no that is NOT what is taught at college… they teach you how to work for someone else!
Even courses entitled Entrepreneurship, Business Management, and Business Applications don’t teach what you need to know about creating, and more importantly… sustaining, a viable business.
You see, they don’t teach what you need to know about the process of owning and running your own business. They do teach much of what you need to know about how to work for someone else, but they do not teach how to work for ourselves.
Not only are you not taught how to start or maintain a business for yourself, they also don’t teach how you can get wealthy. That’s the process of how to create assets that work for you, instead of you working for it.
So what can you do to learn this? You must learn from someone who has done it for themselves. More importantly, you must learn and adopt a process to have that happen for you without all the expensive and time consuming trial and error that comes with creating a business without a path to follow.
According to Michael Gerber, author of the E Myth, 1,000,000 people go into business in the United States each year. Within 5 years, 96% of them are out of business. I don’t know of anyone who has that intent, but that’s what happens.
They, like you, are attracted to create a business in hopes it will provide a good living and retirement income too. But for 96% that promise or vision does not come true and they lose the chance for freedom from the shackles of working for someone else.
Gerber goes on to say that those with the dream of entrepreneurship thought business worked one way when in actual fact successful businesses work in quite a different way. Hence, the title of the book, The E Myth.
He reports that when the entrepreneur follows a different path , 75% are still in business AFTER five years.
What he found that you need to know is that those who enter business with a franchise are able to build and sustain their business because they have a path to follow. A clear, direct, tested and proven path that leads them right to the money without the risks and pitfalls that so many others fall into.
I can relate one story. Some of you have heard me talk about the Holiday Inn we built, funded using private money.
We could have opened that hotel and called it “Lou’s Hotel”. That would have saved us a ton of expense, but would it have been an uphill battle for us to find customers?
Not only that, we would have had to create our own reservations system, housekeeping training, accounting software, resources for supplies, and all the rest.
Instead we opted to go with Holiday Inn. Now that was expensive. $35,000 to use their name, $25,000 for their training, $20,000 for their software and 8% of every dollar that comes in for the entire length of the franchise agreement. Whew!
But we opened the doors to an immediate 80% occupancy, and understanding of the proper way to manage the hotel, staff, marketing and lots of support. We were able to take their training, tools and support and have an up and running business without having to make it up as we go.
Doesn’t that make more sense?
Hummmm… Does the Real Estate business have such a path?
You bet it does!
And you can actually choose the path to follow. You can buy a franchise that requires you have a $250,000 net worth and obligates you to invest many thousands of dollars to get in and requires a monthly marketing budget of as much as $50,000 per month!
That may be a good idea for some of you reading this who really intends to have a huge business, staff and lots of ongoing requirements. But for most of us, that is not the path we want or can afford to follow.
Whether it be that you don’t qualify because of the net worth requirements, or just don’t want to, or want the ability to invest all that to get the support and leads, you know this is not for you.
Most of us just want a business plan to follow; one that allows us to build a business that will generate a good income and a future of dependable cash flow for you and your family.
This business plan needs to:
* Cover all the aspects of this confusing real estate business,
* Provide for safety and allow for controlled expansion,
* Include all the possible profit centers in Buying, Renovating, Managing, and Selling,
* Support all the aspects so profits and risks don’t get overlooked,
* Provide a business model that can be easily duplicated regardless of the size or economic condition of the market you are in,
* Have a communications component to allow for adjustments as the market changes.
* and the list goes on…
In order for this concept to work in your real estate business your business plans needs to have Tools, Training and Support. It needs to be a holistic approach rather than a concept here, a form there, a piece of marketing material from someplace else all jumbled together like some untested recipe.
In fact this is the recipe for disaster that so many would be investors follow. And that is why, as Gerber explained, that 96% of the ones without a plan will be out of business in such a short period of time.
Doesn’t that make sense to you?
Get a true, time tested business plan that works in all locations and takes advantage of the most compelling profit centers in the business complete with support to be sure that occurs.
So I’ve identified the component parts you need to make your business work regardless of your current net worth or monthly marketing investment.
In fact we have developed a system that allows you, regardless of income or background, to build a business that will have all the benefits a franchise offers without nearly the investment.
Tools, Training and Support. All in one place AND with the component no one else teaches.
The aspect and huge profit center of holding property. Assets that will work for you for the rest of your life. This is where WEALTH resides.
Assets and equity working for you instead of you working for it.
This allows you to do something today, such as find and negotiate a deal, that you do in a way that allows you to reap profits monthly for as long as you choose. This hidden profit gift that keeps on giving as long as you choose.
So this is what I will reveal to you this week at Traction REIA.
Many of you have the basic tools already. That is a good start. Some of you will see the value in the holistic approach to allow you to take advantage of all the profit centers. Some of will you understand the benefit of a franchise and will “step up to the plate” to get your own franchise without the cost.
Imagine the cost if you could learn this at college. The education, the time, the cost of textbooks. Four years, many thousands of dollars, equipped for business, sadly than doesn’t exist. Instead some of you will get all the benefit without the time and expense. Maybe this is you.
Equipped with the right tool, training and support, we plan to help you achieve your goals. Either way…strap on your seatbelt because I am about to unload a ton of useful information that will allow you to walk out of this event and start making money right away!
Whether you have been in the business for years or you are just getting started you will benefit greatly as have many others before you.
Together we are going to create a business plan for you to follow. We’ll lay out the plan… it’s your job to choose to follow it.
This is your next step. I want to hear from you and rejoice in your success. Just like Steven Turley who attended a recent Millionaire Jump Start. He walked out of the event and went to work…
Dear Mr. Brown,
Good News! … Through the use of your materials and forms I purchased one junker on Friday , a fixer on Saturday , made an offer on Sunday and owner is signing contract today … Tomorrow I meet with person in foreclosure that called on an ad… Short sale situation but I need help on mechanics… Altogether I will be opening escrow on three homes this week and possibly a “subject to…… I used your Seller Presentation Kit…. I love It !!!
Thanks for your training…
My mission and prayer for you, is success in this business that will benefit you and your family for years to come.
Join me this week at Traction REIA. I’m doing 4 events:
1. Traction REIA Greenbelt Main Monthly Meeting
TOPIC: “House Monster: Doing Good While Doing Well!”
Wednesday March 19th at the Marriott Greenbelt. Get more info at:
2. Traction REIA Tysons Corner Main Monthly Meeting
TOPIC: “House Monster: Doing Good While Doing Well!”
Thursday March 20th at the Westin Tysons Corner. Get more info at:
3. Power Dinner
TOPIC: “Building, Growing, and Surviving Over Time!”
Friday March 21st at BlueFire Restaurant in Westin Tysons Corner, VA. Get more info at:
4. Full Day Training Event
TOPIC: “Creating a 24/7 Money Machine!”
Saturday March 22nd at the Westin Tysons Corner. Get more info at: