Grab the Map Podcast: Episode 5 (Your Network Determines Your Net Worth)
Being a real estate inventor is lonely. Many people talk about deals and know that buying monthly cashflow assets is the path to wealth, but not everyone does it. Many times, people will email [email protected] to come up with a plan, but they don't always implement. It's common to get a good idea and not follow through.
[03:00] Your network influences your net WORTH. Connect with other people like you interested in doing deals. Your network includes the five people you talk to the most. You value and respect their opinion. Warren Buffet, one of the most successful investors, says, “You will move in the direction of the people you associate with.” Associate with people that are better than yourself. Most of us want to be at the top, so we can feel happy with our progress. Instead, find people who have already reached the goals you want to reach.
[06:00] Who do you talk to on a daily or weekly basis? This doesn't include books you read. What about your HUMAN interaction on a daily basis? These people have the most influence on your business, personal, and spiritual life. Ask yourself:
1. Where are these people headed?
2. Is that place a place where I want to head?
3. What is their net worth?
[07:15] Do this activity for your financial, spiritual, or relationship benefit. Example: if you're not married, ask yourself, who are the five people I talk to the most? Are they married, about to get married, or looking for marriage? Are they headed in the direction I want to go? Could they influence me in a way that gets me toward that direction?
[08:30] If you want to be a successful real estate investor, your network should include successful real estate investors. Most of us have a network including people just like us, or a little “less” than us, and we wonder why we can't reach our goals. Celebrities marry other celebrities. Wealthy people marry other wealthy people. Beyonce and Jay Z were married because they were in the same network.
[09:20] We can influence our net worth by changing our network. Perhaps the people in your circle are not headed in the direction you want to head, and maybe you could gradually change the people in that inner circle.
[10:45] Recently, John wondered if he was buying too much real estate. A mentor responded that you can never buy enough real estate if it cashflows – it makes more money every month than it costs. If you're sure that's what's happening, keep buying those properties and you won't have a problem. Instantly, he was relieved. That friend in his network influenced his mentality.
[12:20] From the Meetup group, John found a private lender, business partner for new construction, guys he can call for deal advice, and people have partnered together for new construction of their own, property management businesses, and new people with confidence about financing.
[13:20] Take three actions today…
Action #1: Take the above exercise and consider who is in your network.
Action #2: After that, think about whether or not there needs to be a transition between the present and what it SHOULD look like. In the next 20 years, John wants to own $50 million in real estate. To reach that goal, he will slowly have to change his network – the five people he talks to owns $5 to $15 million in real estate, because he owns less real estate than that. Those people are better than where he is right now. Eventually, he will have to transition into people that own more than that. Some people currently in his network will grow their portfolios and become those people.
Do not get investment advice from people who are not actively investing. Do not take advice from scared, struggling, or failed people.
Action #3: Email [email protected] so that John can become a part of your network, to influence one another's net worth.