3 Steps to Becoming a Real Estate Investment Leader
By Richard Dolan
Napoleon Hill wrote the book Think and Grow Rich that I credit largely for having shaped my motivation and focus to prosper in life and business. In one of the chapters called, Organized Planning, the Crystallization of Desire into Action I recall how something stirred deep within me 25 years ago when I first read it. Hill wrote, Intelligent planning is essential for success in any understanding designed to accumulate riches. From that moment on, I became obsessed with planning and executing plans to generate marketing activity, grow sales and make money.
During the nineties when I was a wholesaler in the financial services industry, I sold my product on behalf of mutual fund companies and did so business-to-business. The catalyst for business was to generate sales presentations and client meet & greets between our fund managers and the money managers clients. The two accelerators for business came in the form of producing an event (and often paying for it, wine and all) and presenting the opportunity with clarity, compassion and confidence.
There is a lesson here for real estate investment business owners: start educating, empowering and entertaining your prospective investors and the money will follow.
I remember Hill wrote,
There are two types of people in the world. One type is known as LEADERS, and the other as FOLLOWERS. Decide at the outset whether you intend to become a leader in your chosen calling, or remain a follower. The difference in compensation is vast. The follower cannot reasonably expect the compensation to which a leader is entitled, although many followers make the mistake of expecting such pay.
Being a real estate investor or investment business owner is about being a LEADER. Not leading by example, rather enlightening your friends, family and colleagues on whats available to through real estate investing such as freedom, security and peace of mind.
It is not disgrace to be a follower. On the other hand, it is no credit to remain a follower. Most great leaders began in the capacity of followers. They became great leaders because they were INTELLIGENT FOLLOWERS. With few exceptions, the man who cannot follow a leader intelligently cannot become an efficient leader.
To become a leader in real estate investing, consider mastering these THREE STEPS to BECOMING A REAL ESTATE INVESTMENT LEADER:
1. Begin With Your Intention
Real estate leadership is about mobilizing, commercializing & monetizing relationships with people you know that have money to invest in real estate.
To mobilize is defined as to organize and encourage (people) to act in a concerted way in order to bring about a particular political objective. To bring (resources) into use in order to achieve a particular goal. And to make (something) movable or capable of movement. To commercialize is to manage or exploit (an organization, activity, etc.) in a way designed to make a profit. To monetize is to convert into or express in the form of currency.
Real estate leadership is mobilizing peoples money, not just asking for it.
2. Your Have Access to $6.4 Million
Consider the statistical fact you know 64 people on average. The national average of investable assets is said to be approximately $100,000 per household. That means the universe of opportunity measures $6.4M in your world. You could charge an advisory fee of ten-percent on that amount of money to advise, consult and empower people to invest earning you a cool $640,000. If you referred your friend or family member to a turn-key deal, Im sure you could negotiate a marketing fee of five-percent earning you $320,000 or two and a half percent earning you $160,000 if you want to be super conservative. Is that worth learning more about?
Real estate leadership is a numbers game, of yes and nos. You want the nos to get to yes.
3. Remember, This Is A Conversation Not A Transaction
The first thing real estate investors do when they realize they want to attract and leverage the financial resources of friends, family or colleagues is to present an idea by way of illustrating a deal rather than painting a picture for whats possible. Think about it. No one invests their money in a GIC because its exciting, or they know thats the route to live a magical life. They do it because its safe, simple and secure. Real estate opportunities are presented as numbers, statistics, cash flow and management dynamics made simple. Speak dont sell. Tell a story about why it works, and not a PowerPoint on how it works.
Real estate leadership is about exhibiting how much you care, not how much you know. And customers wont be motivated or mobilize their money until they know you care about them.
Conversations about money, investing and financial security requires compassion, courage and empathy. Commercializing your real estate investment efforts and ambitions cannot afford overlooking the deeper, more vital need to connect with your prospective investors in a meaningful way.
Humanize your real estate investment conversations, while commercializing your real estate investment business.
To humanize something is to make something more humane or civilized; to give something a human character. Real estates human character is shaped by the values, motivations and why a real estate investor would lend, invest or joint venture.
Its all about asking the poignant and necessary question of anyone you wish to engage in your real estate investment pursuits which is: what does money mean to you? You want to hear them tell you money means having security money means safety money means being able to do what I want when I want to
Real estate leadership is born when you are clear on peoples why; making it possible to present the how.
Richard Dolan is the President of REIN and the resident expert on Performance for real estate investors and professionals. Addicted to producing results, Richard is an expert on raising funds, building brand and strategy with one aim: to produce competitive immunity. Reach Richard at Richard@reincanada.com.