Grab the Map Podcast: Episode 8 (How to )
Email John at [email protected] if he says something you disagree with or totally love.
Investors think differently than consumers. A consumer is looking to temporarily feel better, impressing a friend, getting from point A to point B, or improving his life. An investor asks if that purchase will return on their (or other's money).
[02:45] Investors can help you sharpen your investment strategy. An investor can look at your deal and see that it cashflows. John sends his friend his purchase price of a property, expected interest rate, expected expenses, and the friend may think it's a good deal with $300 profit, but John settles for $150 per month.
Another friend is a sounding board to help with decision making and the spiritual side. Invest with or without debt? Is enough time being spent with family? It's okay to have friends that help you balance where you're going, even if they don't have the same situation and goals as you.
[05:50] Another friend, Brady, buys properties, land, and businesses. He thinks about location, proximity in good areas. John is instead looking for cashflow, money returns. That friend helps talk John out of deals with red flags. He also helps to push the limits. Most of John's properties are in the $35k-$60k range. He's done 50 deals this year. That friend may notice that he does lots of little deals, and a few larger deals (higher risk) may make the same amount of money.
[07:45] A contractor friend, an entrepreneur, thinks about what's attractive to consumers, what it takes to get setup and rolling. John has suggested business ideas that became profitable. Some friends are great for listening to all your ideas.
[09:00] John's wife sometimes doesn't want to hear about real estate. She's there to make sure John remembers about family time, prayer, and life, to balance that real estate business he's growing.
How do YOU have conversations with friends as an investor? You SHOULDN'T be talking to some people. Others will help you with your motivation and decision-making. Real estate investing is a team sport, although you make some decisions on your own.