Mar 27, 2018
Today, my guests are friends and
neighbors. We’re going to talk about one word, “No.” It’s hard to
say sometimes, especially in business and if you have a kind,
generous heart. But you have to say “no” and master it.
Instead of just saying, “no,”
ask the requestor, “What should I do?” By asking them that
question, they understand and feel where you are coming from.
Sometimes you just have to say “no.” You want to help everybody,
but you know that you can’t sometimes.
Topics on Today’s
means no. At work, you feel like you have to do what your boss
tells you, but sometimes you probably have the ability to say
are a real estate professional who wants to level up one step at
buying bigger deals, or you’re new to the game and wanting to
learn. You are working hard for someone else, who is making all the
money. You don’t want to “work for the man” anymore.
you given your soul to a company, and they didn’t care? Are you
just a number? There’s lots of people who feel like that and want
to break free.
free from a job by replacing your income through real estate. Learn
how to raise private money. Other people’s money (OPM) can set you
you raise private money, you can do multiple deals with multiple
vendors and people. The power is not real estate, but in the money
- the ability to attract capital from other people.
- You’ve worked all your life to have a
retirement income. What were you afraid of? Not having enough money
to retire or running out of money. Most people get advice from a
stockbroker on how to deal with this fear. However, they get paid a
commission to take your money, so be wary.
are your options? CDs, bonds? What you want is to be able to live
off the interest. However, if you don’t have enough money and only
get a 0.5% return, you’re going to start eating into that
principle. That’s when people get really scared that they are going
to outlive their money.
your retirement money, you’re not willing to risk anything.
Remember 2007-2008? You’ve been saving your whole life, but when
the market crashes, it can wipe out your money. Once you take the
money and don’t have principle, it snowballs. That’s the real
reality for people.
- Apartment investing offers financial solutions.
You never sell anything because you don't have to. It is an
opportunity for people’s money to grow.
- Usually, with an apartment deal, there’s a 6%
preferred return. If an investor gives you $100,000, every year
you’re going to be paid $6,000.
6% is far more than anything that a stockbroker or anybody could
offer you. That’s a real deal.
quarterly. People want to schedule their monies, and they like
paychecks. If paid quarterly, that means you’ve got an income
stream. An income stream is important in return because that’s how
you pay your bills. You want to turn on as much income stream as
you can, so you never have to touch your principal. The 6% is
probably the best money you can get.
apartments, 6% is usually based on the cash flow because there are
several buildings and tenants pay rent every month. Tenants expect
rents to go up, so never disappoint them. By raising rent, that’s
how you raise your income.
onto properties for five years. Year 1, fix everything that is
broken. Year 2, fix all the broken tenants. You upgraded and fixed
everything, made it nice and shiny, so now you’re going to attract
a better tenant profile. Years 3-5, optimize your rent growth
potential and keep expenses as tight as possible.
who pays a lot of money when you sell it? Other investors or family
office. A consistent rising income story: You have three years of
solid operation, plus two years of fixing things.
you sell it, you usually give investors another 6%. That’s a total
of 12%. It’s a growth and income story. Everybody loves growing
incomes because everything keeps going up, too. If you reinvest in
upcoming deals, your income will rise.
would you say “no” to an apartment deal? If it’s in the wrong spot.
There’s a lot of foot traffic around the apartment complex during
the day, which means nobody’s got jobs. You look at and around the
property at night because you see a lot of things that no one tells
you about. During the night inspection, you see a drug deal. It is
time to say “no.”
through the worst units. Toilets are yanked off and there are
misplaced pipes - a handyman hack job.
someone wants to work with you on an apartment deal, they may think
it is amazing, but you need to educate them and share your honest
opinion. They get into it. They see a deal, and all they see is a
working deal - no roadblocks or red flags.
- It is
hard to say “no” and hurt someone’s feelings. But you are
preventing them from making a really bad decision. Champion each
other’s dreams and goals. Push each other to be
“No is a hard word sometimes to
say, especially in business.” Corey Peterson
“I’ve given my soul to this
company, and they don’t care. I’m just a number. I know there’s
lots of people that are out there that are like that and you wanna
break free.” Corey Peterson
“I learned how to raise private
money. OPM, other people’s money, can set you free, and that’s what
set me free.” Corey Peterson
Don’t forget to download
my Free Workshop Quickstart Video
Series, and if you like
what you have heard please
leave a review on
Text the word MONEY to
408-500-1127 to get my free private money program and credibility
kit for single family.