This Financial Freedom Friday, Matt Theriault teaches the top 3 skills of successful real estate investors! Learn about the 3 skills that will impact your investing AND your entire life, how to invest with discipline, and how to become a “people person.”
What You Will Learn About Top 3 Skills of Successful Real Estate Investors:
- The top 3 skills you need to become one of the successful real estate investors
- How to make a lot of money in real estate investing
- How math relates to real estate investing
- Why “real estate investor” is your secondary role (and what your first role is)
- How to invest with discipline
- How to overcome selfish tendencies for ultimate success
- The ways these 3 skills can impact your entire life
- How to become a good “people person”
Whenever you’re ready, here are a few ways we can help:
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- Grab my book, Epic Freedom ($1)
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- Join our Badass Investor Program and be a Case Study
I’m putting together a new Badass Investor case study group at Epic Real Estate this month… stay tuned for details. If you’d like to work with me on your real estate investing, go to FreeRealEstateInvestingCourse.com to get started.
- Also, check these out:
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Speaker 1: This is Theriault Media.
Matt Theriault: Hey, Matt here at Epic Real Estate. Welcome to another episode of Financial Freedom Friday.
Speaker 1: It’s time for Financial Freedom Friday with Matt Theriault.
Matt: Okay, so the question that came in this week was what are the top three skill that you need to become a successful real estate investor? I had to think about it for a second, but I came up with the three skills. If you don’t develop these skills, real estate, you’re going to have a tough go at it. But if you do develop these skills and treat them like a skill and practice them like you would any other skill, you can make a whole lot of money with these, okay? So the top three skills of a real estate investor.
The first one would be you have to have a certain level of math skill. You got to know your numbers. You have to know what it’s going to take as far as the money going in to acquire an investment and then how is that going to pay you back. Hopefully, if you do it right, it pays you back more than you put in. That’s really what’s called calculating your ROI, your return on investment. And when it comes to return on investment, there’s a lot of different types of returns you can get. You can get piles of cash, or you can get streams of cash, or you can get a combination of both.
So you have to also know when it comes to your math, is how your math corresponds with your exit strategy. So that’s really important. What exit strategy you deploy is going to significantly depend on two things, what you need right now, and what that investment is capable of returning to you.
Some investments might be capable of giving you some really quick cash, and you need that quick cash. Maybe you got some bills or you got marketing expenses to pay, you got payroll to cover, and you need some quick cash. You can wholesale it. You can flip a contract, something like that, get some really quick cash that way. Or you might need a little bit more than that, so you see a value-add opportunity and you’re going to fix it up and then you’re going to flip it, sell it for retail and get a giant chunk of cash. Or maybe you want to hold on to this one because your cash reserves are fine and you really want to work on building your wealth, and creating your wealth, and creating that passive income. You’re going to go ahead and hold it. Or, maybe you got enough cash, and you got enough cash flow. You got enough property that you’re managing and you want the best of both worlds and you want to go and finance it.
So you can fix and flip it. You can just regular flip it. You can hold it. Or you can finance. All three of those things are going to produce a different ROI. All three of those things have different math involved. So math skill is really important, especially if you want to get paid more than you’re putting in.
The second thing would be marketing. You need to develop a marketing skill. Yes, you are a real estate investor, but you’re really a marketer first. One of the things that you need to really focus on being a marketer is you need to be able to identify problems. You got to identify problems. The reason you need to identify problems is because no one in their right mind is going to sell you their house at a discount unless they need to, unless they have a problem. There’s plenty of opportunity out there for people that have problems that are looking for you to come and solve it. They’ll gladly give you equity in exchange for the peace of mind that you can provide with your solutions.
That’d be the second part. You need to be able to market your solutions. When you can market your solutions to people with problems, what that attracts is leads. Leads. Leads are really the lifeblood of any business. If you don’t have leads, you don’t have a business. It’s going to be a struggle. If you got consistent leads, then you’ve got consistent business. So you need to be a really good marketer. One of the ancillary benefits of generating a lot of leads, and consistent leads, is it really strengthens your negotiating position when you are talking to a buyer, when you’re talking to a seller, you’re talking to a potential lender or money partner because if you hit an impasse with a certain negotiation and you don’t want to give any more concessions because that going to put you below your minimum deal standards, you can just walk away. It’s really easy to walk away there because you know you’ve got another opportunity sitting in your office back on your desk.
So if you got a lot of leads, it gives you a lot of opportunities, and it really makes you, I don’t know, a better, more shrewd investor. Makes it easy invest with discipline. Discipline becomes really easy when you got a lot of leads. All right so that’s the second one.
The third one is, which I think is really probably the most important, are your people skills. Your people skills. You’ve heard me say this at least once, that this is a people business and every piece of real estate you buy or sell is going to be from or to another person. So the better your people skills are, the more business you’re going to do. So the real goal of having good people skills is so that people like you, they trust you, and they have confidence in your competence. The way to do that is you want people to be interested in you, right? So the way to get people interested in you is to be interested in them. If you want people to think you are interesting, if you want people to like you, trust you, have confidence in your competence, be interested in them.
Be concerned about what it is that they need. If you find out what they need, the next part is you want to be a giver. You want to give people what they need. I think it was Zig Ziggler that says, “If you give enough people what they want, they’ll give you what you want.” That’s the mindset. This is a skill. This takes practice. This is not ingrained. This is not an inherent quality in most people. Most people are selfish just by the nature of being a human being, and you want what’s in it for you. That’s all you’re concerned with. It’s everyone’s favorite radio station, WIFM, what’s in it for me.
So you want to switch that around and really practice these people skills in this regard because you’re going to need these people skills when it comes into three different scenarios. You’re going to need it with buyers. You’re going to need it with sellers. And you’re going to need it with lenders when it’s time to raise money. Because if you can’t make those three work, you’re really not even going to have a business. Doesn’t matter how good you are at the math and how good you are at marketing. If you don’t have the people skills in place and you can’t get buyers and sellers and lenders to like you, trust you, and have confidence in your competence, you’re going to have a real tough go at this.
So if you get these three down, I got high hopes for you. You’re going to be a very successful real estate investor. When you look at these … You know you might be looking at this right now, I don’t know what you’re thinking but maybe, “I’m no good at math. I hate math.” Maybe you’re thinking that. Or, “I’m not good with people. I always feel so awkward and uncomfortable.” Well, no one was born a natural mathematician. No one was born a natural skilled people person. Skills, like anything else, they need to be learned. Because they can be learned, they can be practiced. You can become really good at that. Certainly, someone might have a natural inclination towards something. They might have a natural affinity towards one of these. They might have a little bit of a talent in these. But still, you can practice and you can learn any skill just like you do anything else.
If you’re going to go out to play golf, you wouldn’t just on day one grab a bag of clubs and go out and start playing. No, you probably grab that bag. You go to the drive range. You take a bunch of practice swings, maybe countless swings, and hitting the golf balls out there on the driving range before you actually went out to play the game. If you were going to learn to play the piano, you wouldn’t just say, “I want to play the piano,” and go ahead and sit in front of an auditorium and start playing. No, you’d have to do years and years of practice, a lot of repetition, before you were good enough to play in front of a crowd. Or something as simple as juggling three tennis balls. That’s a skill. To be able to do that, you have to practice, practice, practice. It’s all through repetition.
So if you want to make a lot of money in real estate, look at these three areas. They’re your math skill, your marketing skill, and your people skill. Look at them just like any other skill, like riding a bike. You’re not going to ride it on the very first. You’re going to fall down a couple times and be okay with that, and just understand that’s part of the learning process. But the more repetitions you do, the better you get at riding that bike. The more repetitions you do here, the better real estate investor you become.
These three skills really, they’ll pay you massive dividends inside of your real estate investing business, but you’ll be able to apply these all over life. You’ll find how they impact your entire life. Mackenzie up in San Francisco an Epic Pro Academy member, she was able to purchase a company last year using some of the people and math skills that we show inside of the Epic Pro Academy and what we show at the Ground and Pound Bootcamp. Richard and Cannon in Utah, they have a concrete business. They’ve been able to use these people skills and these marketing skills inside of their concrete business and well as their real estate investing. So these transfer all over in all areas of life.
But we’re talking about real estate today. If you want to be a successful real estate investor, develop a math skill, a marketing skill, and a people skill, and you’re going to be all right. Okay? So I’ll see you next week on another episode of Financial Freedom Friday.