Picture a room full of real estate entrepreneurs making over $500,000 per year. Now guess what year it is?
If you said 2004, 2005, 2006 – well, you’d probably be right. That could happen. But if you said 2010, you’d also be right. Surprised to learn that there are some people making so much money without bail-outs in today’s market?
In today’s real estate market, it’s too easy to get swayed by the mass market media stories and pictures of real estate devastation. Without a doubt, there have been a lot of people who have lost millions. In fact, most of the people I spent Friday with did hit absolute rock bottom in 2007. I heard story after story of months with no business, dropping real estate values and general hopelessness in 2007. There were people in the room who had lost everything. Then they did 3 things that others weren’t willing to do.
#1 Trick from 7-Figure Earners: Be flexible
Probably the most poignant story this past week was from a couple who had high paying corporate jobs that they left to become real estate agents…right at the beginning of 2007. They had a few months of sales and then it just stopped. It was like someone had turned the spigot off. They hung on as long as they could, some would say too long, and lost everything.
Then in 2008, they said enough was enough and went about trying to figure out how to make the most of what they had in today’s market.
They did and hit a 7-figure income within a year.
Most people will ask specifically how they did it, and they’ll tell you. (Hint: short sales) But the lesson is really bigger. That’s because this current market won’t last forever. Right now Bank of America controls 50% of all mortgages and they are very slow to act on short sales. Meanwhile the number of REOs (real estate owned properties) are climbing. Plus there are 800,000 houses in ‘shadow inventory’ – not quite the banks but not quite the homeowner’s either.
Short sales won’t last forever and the next wave will likely be buying and selling REOs.
Don’t fall in love with just one system. Learn more and be ready to pivot on a dime. When the market shifts, shift with it. Don’t keep trying to work the same old way.
Even if you’re not in real estate, or want to be, that’s good advice.
Trick #1 again is: Be flexible.
#2 Trick of 7-Figure Earners: Stay focused
The big-time earners all had a very clear game plan that they closely executed. One of the big earners (who had also crashed and burned in 2007) completely programmed his Mon–Fri. He used blocks of time to block out his morning work out, his morning positive talk (through recorded affirmations and music), sales, business management and family time. Saturday was available for work, if needed. Sunday was always family time.
My favorite trick that he taught me was a ‘reset’ time after lunch of 20 min. He used a guided meditation of 20 min to ‘reset to zero’ after a morning of dealing with other people and their issues all morning. He’s in a business (also short sales) where he’s dealing with a lot of drama and it’s easy to get pulled down by it. He starts off well, but without that reset time, he finds his afternoons get offtrack.
Focus so YOU to stay in control of your day. The reset time is the most powerful trick for me of the day.
Note that it Is possible to be flexible and focused at the same time. The flexibility isn’t minute by minute, in a state of a reaction to other’s demands and needs. The flexibility is for your big, overall plan. The focus then keeps you true to what you’re working on.
#3 Trick of 7-Figure Earners: Protect yourself
But we’re in a unique time right now. If you’re making money when others aren’t, there will be some people who live in that entitlement state of mind that means they are going to want to take what you have. And unfortunately, our system is set up in a way that makes it easy for anybody to sue anyone at anytime for any reason. And legal recourse is pretty pointless if they don’t have anything.
So, protect yourself. Almost every single successful business owner I know has been sued at least once in the past two years. Or if not sued, they’ve had a suit threatened.
You also need to protect yourself from the ever-increasing taxes.
Your taxes are going up somewhere between 10-40% over the next two years. Do you have a plan to handle that?
Some of the topics I talked about to the group included business structures like the Series LLC (a real estate investor’s new best friend), pension investing and C corporations to control when and how much you pay in tax PLUS protect your assets.
Join us for the new May Tax Coaching for the May Real Estate Tax and Asset Protection Focus.