Transcription
Hey, welcome to your four main pillars to investing, and I hope you get a lot of value out of these four videos that I'm gonna put out for you.
One is being Pillar One, which we're going to talk about the foundation and why this foundation is so crucial to the success of your business. Whether you're just starting out in real estate, or maybe you've been started out for a little bit, but you're not finding the success that you want, or you're living in a little bit of anxiety or stress just because you're either not able to close more deals quickly or consistently, or move quick enough. Foundation is going to help you with that.
Then we'll move to Video 2, which is all about prospects to contracts and to get your head around that, and what are the key components inside of that that you need to be thinking about to grow a successful investing business.
Then we're going to talk about Pillar Number Three, which is all about contracts to closing, and honestly, this is where a lot of deals fall out and a lot of investors get frustrated because they just don't have this together.
Then we'll dig into Pillar Number Four, which is all about smart investing and how you need to get your head around multiple tools in your tool belt so that you can execute on more deals faster and consistently, so that you're not a one-trick pony.
So with that said, let's jump right into Pillar Number One here. So Pillar Number One, like I said, it's all about foundation. Um, when you talk about foundation, it's all about getting a clear understanding of your foundation. What are the legs that you've got to have in real estate, um, under the table to say, to hold that table up? Um, it's the key to long-term success. See, a lot of people just run into real estate and they watch some YouTube University or they read a book and they just want to run out, look at houses and make offers. Well, the problem with that is, is yeah, it feels good, it's kind of tangible, like I can actually touch it and feel it, but it's not the legwork that needs to be done in the beginning to build a solid foundation.
Now, this is going to include who you work with, how you get the money, where you're gonna start investing, and it's really gonna focus you in on segmentation of the market. And so let's talk about this for a minute. So when you dig into Pillar Number One, I want you to get real clear that this is the part of real estate where a lot of people want to jump right over this. They just want to kind of go, okay, well, look, real estate looks cool, I think I can make a lot of money with it, but I'm just gonna move forward and start looking at houses. Well, look, out of the 20 years I've been doing this business, and out of the 15 plus years I've been coaching and helping people do this business, this is the part that I find that we have to have slow investors down, pull them back, and actually get them to execute on the foundation of the business because they just haven't done it. And this is a lot of the reasons that they don't grow, they haven't been successful at growing, or they're just kind of a hit and miss, maybe a one-hit wonder type of process.
And so it really breaks down into four elements, and if you want to be successful, you need to put your time in on these four elements. And element number one is your power team. And look, a power team is not just, I have an agent and I have a contractor, or I have a management company. That's not the depth of a power team. There's, so I think at the boot camp, I gave out an example sheet that we use in our business, and it's like 48 different key members that you need on your power team. And this is a big part of knowing who to go to, when to go to them, and how you go to them when it's time to execute on a deal. For example, let's say that you need a property inspected. You go, oh yeah, I have a home inspector, but when you get that deal and then you call that home inspector because it was referred to you and you didn't do your legwork upfront, well, that home inspector now tells you he's three weeks down the road. Huh? That's a problem, right? Because we didn't actually build an actual process of putting our power team in a sheet, identifying all the information that we needed about each one of those power team members, like when they can do the job, how far out are they on the job, how long do they take, you know, what areas do they market in? That's just one component of it. And we do this for all of the people that are belong in our power team, from not just agents and contractors and handymen and painters and plumbers and electricians and surveyors and, you know, feasibility study experts, and it moves on and on and like to tile installers, tile replacement, tub resurfacers. The list is, is pretty substantial. But most people will wait until they get to the point that they need it and then start looking for it. This is a reactive type of investor instead of a proactive type of investor, and this is why we see so many people make such huge mistakes.
Number two of the element is your funding sources. This is a big reason why a lot of investors lean in on wholesaling because they just don't realize that there are funding sources out there for them for the types of strategies that they want to deploy. And when you think of funding, there's really several different buckets that we, we categorize. Number one being traditional lenders. And some people will say, but Zach, I work with a bank already, but that's not who we're probably are going to work with. We're looking for very specific and key people, um, to work with us in our business. And when it comes to traditional lenders, we're looking for banks that have no seasoning. And we look for small local type banks that have very few branches. And then we have a questionnaire that we use when we're talking with these banks to make sure that they're, they're portfolio type lenders and that they have no seasoning and they can refinance us out. And what we do is we have, we target, we might have to call 20 of these to target five main banks that's going to allow us to know who we're going to take which deal to, because every bank is different. And then from there, we're going to need asset and hard money type lenders that maybe work nationally and locally, but all have different types of programs, and we have to put that into our spreadsheet so that we know who we're talking to and why. And then from there, it's bridge lenders and and gap funders. And then our fourth bucket is always private lenders. And so that's part of the foundation.
And then number three of the Pillar Number One elements is the market research. We have to put the time in to really identify what our market is, what type of market are we in? Are we in a Tier 1, Tier 2, Tier 3, or an isolated type market? What is the opportunity in that market? Then we got to take that information and break it down by zip codes so that we can identify each zip code inside that market and say, okay, in this zip code, we can then find the clustering zones. And those clustering zones are what helps us mitigate risk when it comes to our investing strategies. It also helps us identify where these investors are at, and if we wanted to wholesale deals, what would be the best place to start doing that with? But those cluster zones start with the research to the zip code matrix to them to the clustering, which gives us a huge head advantage when it comes to eliminating risk when we move into a market to start investing. And that's just touching the surface of market research and segmentation. But that is the big key of Pillar Number One, is putting the team together, getting the money in place, and then identifying our markets and how we're going to invest, because believe it or not, one investing strategy does not work for every single zip code.
And then finally, in our systems and our, in our Pillar Number One, is putting all of our systems and tools together so that we have the right infrastructure to move our business to the next level that we need to. We have the tools and sometimes the software that we need to be able to execute on our marketing plan or on our research or our property evaluations so that we are now sitting in the driver's seat of our business. This is foundation. Yes, I touched the surface of it, but it is much more depth than this. But you kind of get the idea of it. If you've looked at this and said, you know, I didn't go that deep with it, or I overlooked a lot of that, I get it. Most investors do, and this is why they don't last very long. And I'm here to try to help you have the long-term game here, not the short-term win. And it all starts with Pillar Number One. I'll see you on Pillar Number Two training.