Good afternoon! The goal Investor Cheat Code is to blow your mind with amazing, useful content and bribe you into loving us at the end with a free download 👇🏻

If someone sent you this newsletter, you can subscribe here

Top 3 things I learned while building a 7 figure company…

Building a real estate company is hard. Building any company is hard really.

Everybody wants to build a company without making any mistakes.

Not possible.

But what is possible, not just possible but absolutely genius, is to learn from other people's mistakes. You will make your own, but let's not make the same mistakes that other people have made if we don't have to.

Success leaves clues. Like bread crumbs. Everybody's experience is going to be different, but trust me when I tell you knowing what other people have done wrong, or right, is like using 20/20 hindsight before it's actually in the past.

The way I like to phrase it is - I use other people's hindsight as my foresight.

But you're here to find out the three things that I learned on my way to building a 7 figure business right? OK, here we go.

1. Taking action trump's everything.
   
   Yes, everything. It's definitely not the smartest people who succeed in business. In fact I have met some really smart people who couldn't seem to make their business work.

   Here's a hot 🔥 take for you -

   Ignorance can be your best ally when building a business.

   I'm 100% serious about this. By the way, I'm talking ignorance here and its actual dictionary definition. I'm not talking about stupid. Stupid rarely succeeds. But ignorance, being unaware of certain things, can absolutely be your best friend.
   
   The fact of the matter is, really smart people tend to analyze everything. Usually they over analyze everything. Until all of the risks are known to them, then they freeze. Because they know everything that can go wrong, they have a hard time justifying moving forward. Therefore they don't take action. People who are informed but not to the point that they've double and triple analyzed every potential pitfall will usually take action because frankly they just don't completely understand what could go wrong.
   
   I realize to some of you this might sound like I'm telling you to take reckless action. I promise you I'm not. I very much believe that you need to educate yourself about the process, but don't hyper analyze and fixate on all the things that could go wrong. You know the old saying, if you understood how dangerous driving a car was you may never get in one again. I mean, how do you know the other drivers on the road aren't just gonna swerve out of their lane and hit you and kill you?
   
   Winners take action. Rock stars take MASSIVE action.

2. The skills that get you halfway to seven figures will not get you all the way to seven figures.
   

   As a real estate investor, the skills needed to get your business off the ground are different from the skills needed to scale to $1,000,000 and beyond.
   
   Learning how to evaluate properties. Understanding the marketing that helps you find motivated sellers, the sales skills that you will develop learning how to speak to those motivated sellers, and the process that you create, in the beginning, to pull all this together to help you understand how to add value to that property and sell it for a profit are all necessary. But will not be the skills that you utilize to scale your business to seven figures and beyond.
   
   I didn't realize this early on, and so I ignored the number one skill that I needed to scale my business, build a sustainable process, and automate and delegate that process.

   
   The skill that will help you do that is leadership.
   
   You have to, as a leader, know how to transfer the knowledge that you gained building your business, marketing, sales etc, to the team that you build. The skill was not intuitive for me and was certainly something that I had to develop over time. I spent a lot of money and time hiring the wrong people, managing them poorly and not creating a process that my team could follow.
   
   Remember, your company tends to take on your personality. If you overreact to challenges in your company, or if you are scattered, undisciplined and emotional, your team will pick up on that and your company will tend to operate that way as well period to be a good leader or better yet a great one, you have to 1st learn how to act and lead in a manner that you want your company to operate.

3. Consistency is key.

   This is the one that trips most people up. This is the one that most people have a hard time understanding.
   
   What do I mean by consistency? What I mean is not changing the direction of your company every time the wind blows. Not allowing entrepreneurial ADD to infect your team. The most successful people I know do not jump on the bandwagon of the latest trend or fad in real estate. They choose a direction, they become obsessed with being great at doing that thing, they build a team around it and teach them a process that is scalable. And they stick to the plan.
   
   This does not mean that your company should not adapt. Of course you have to sometimes move with the cheese, but just remember that cheese is the goal. If you scale a company that's constantly changing its focus and pivoting every time there's a new fad or trend, you will fail.
   
   “But what if I want to add something to my business in order to grow?”
   
   Great question. Glad you asked.
   
   This is not to say that your company can't evolve and even change course eventually. but you should change course the way a huge cruise ship has to. Think about it, make a plan, and then make the change responsibly. If you want to drive a yacht, you can't treat it like a speed boat. Your team will pick up on your inconsistency and undisciplined approach.
   
   And guess what?
   
   They will become inconsistent and undisciplined.
   
   Ask me how I know.
   
   I know because I made this mistake. Eventually I changed course and threw our process out so often that no one bothered to learn the new process. Everyone assumed it was the flavor of the week or the month and simply rolled their eyes and waited until I focused on something else. Huge mistake and it cost me a lot of time and money untraining them to expect this erratic behavior in me.
   
   Have a plan, be consistent, and stay the course.
   
   OK those are the 3 things that I learned as I was building my 7 figure company. If you disagree or have other ones that you think are super important reply to this and let me know.

Multifamily Continues its Historic Crash in 2024—Here’s Why

- Overview of the Crisis: The multifamily and commercial real estate market is facing a significant downturn, with up to $2.7 trillion in wealth erased due to soaring cap rates and declining asset values. Multifamily and office properties are particularly hard hit, with estimated declines of 30% and 35% respectively in asset value and even larger drops in equity value.

- Continued Risks: Despite warnings issued in earlier analysis like my thesis, "Multifamily Real Estate Is at Risk of Crashing—Here’s Why," the situation remains bleak in 2024. Factors such as stagnant or falling rents, an influx of supply, rising interest rates, and escalating expenses contribute to the ongoing crisis.

- Outlook for 2024: The outlook for multifamily valuations in 2024 remains grim. Little improvement is expected, with the bear market likely to persist until supply decreases, possibly not until late 2024 or even 2025.

- Part 1: Valuation Challenges: Current valuations for multifamily properties are unsustainable, with cap rates hovering around 5.06%. This means that investors are receiving minimal returns compared to alternative investment options.

- Part 2: Poor Rent Growth Outlook: The market is flooded with new supply, with nearly 1.2 million multifamily units under construction and 500,000 expected deliveries in 2024. This oversupply will suppress rent growth, particularly in markets like Texas, Florida, North Carolina, Denver, and Phoenix.

- Part 3: Rising Expenses: Uncontrollable expenses, notably property taxes and insurance, are skyrocketing, eating into profit margins and driving down property valuations.

- Part 4: Interest Rate Challenges: Despite expectations of Federal Reserve rate cuts in 2024, the outlook for multifamily borrowing costs remains uncertain. The potential for rising interest rates poses further challenges for investors.

- Protecting Wealth in 2024: Investors should consider diversifying away from multifamily real estate and exploring alternative investment opportunities such as single-family properties, senior lending, opportunistic buying, and cautious use of leverage.

- Demanding More from Syndicators: Investors should scrutinize syndicators and capital raisers, seeking transparency, alignment of interests, and realistic projections.

Overall, the multifamily market faces significant headwinds in 2024, requiring careful navigation and consideration of alternative investment strategies to mitigate risks and protect wealth.

This is a summary of an article you can find here

Current mortgage Rates

My Journey to Overcoming Analysis Paralysis

For years, I found myself trapped in a cycle of analysis paralysis. I believed that if I just kept learning, reading, listening to podcasts, and immersing myself in the subject matter, eventually I would know enough to take action without any fear or risk. However, what I didn't realize was that the learning phase can sometimes become a never-ending loop, preventing us from actually taking the necessary steps towards our goals.

The Safety of Learning

Learning is safe. You can read a book about investing in real estate and dream of having 20 rentals without risking any money, time, or your reputation. I fell into this trap myself. In 2003, I made the decision to become a real estate investor as a means to escape the nine-to-five grind, secure my retirement, and provide for my children's future. However, for five long years, I kept this dream to myself, locked in the confines of my mind.

The Fear of Taking Action

As someone who was raised with a strong sense of discipline and resilience, fear was not encouraged in my household. Yet, I found myself paralyzed by the fear of failure and the belief that I needed to learn more before I could take action. It was a constant battle between my desire to succeed and the self-doubt that held me back. I became more and more disgusted with myself, trapped in a never-ending loop of analysis paralysis.

Breaking Free from Analysis Paralysis

It wasn't until I hit rock bottom, overwhelmed by self-loathing, that I finally decided to break free from the chains of analysis paralysis. I realized that all the learning in the world would never be enough if I didn't take that first step forward. I had to confront my fears head-on and embrace the possibility of failure.

Taking the Leap

In 2008, I bought my first house. It was a major milestone for me, a symbol of breaking free from the shackles of analysis paralysis. Finally, I had taken action and made my dream a reality. However, during those five years of inaction, nobody knew about my aspirations. I kept it all to myself, shielding myself from the judgment and ridicule of others.

Overcoming Fear and Embracing Risk

Over time, I realized that fear and risk are inherent parts of any journey towards success. Without taking risks, we cannot grow and achieve our goals. It was a tough lesson to learn, but it propelled me forward. I stopped seeking validation from others and started focusing on my own growth and progress.

Frequently Asked Questions

1. How can I overcome analysis paralysis?

To overcome analysis paralysis, you need to take action. Start by setting clear goals and breaking them down into smaller, manageable tasks. Don't get overwhelmed by the fear of failure or the need to know everything before you begin. Remember, learning is important, but it should not hinder you from taking the necessary steps towards your goals.

2. What if I make a mistake?

Mistakes are a natural part of the learning process. Embrace them as opportunities to grow and learn. It's better to take action and make mistakes than to remain stuck in analysis paralysis. Remember, every successful person has faced setbacks and failures along the way.

3. How can I overcome the fear of judgment?

It's natural to fear judgment from others, but it's important to remember that your journey is unique to you. Surround yourself with positive and supportive individuals who believe in your potential. Focus on your own progress and let go of the need for external validation.

4. How do I know when I've learned enough?

Learning is a lifelong process, and there will always be more to discover. Instead of waiting to know everything, focus on gaining practical knowledge and taking action. Trust in your abilities and be willing to learn and adapt along the way.

5. What can I do to stay motivated?

Stay motivated by regularly reminding yourself of your goals and the reasons why you started. Celebrate small victories along the way and surround yourself with a supportive community. Remember that motivation may fluctuate, but discipline and perseverance will keep you moving forward.

Conclusion

Overcoming analysis paralysis was a pivotal moment in my life. It taught me the importance of taking action, embracing fear and risk, and letting go of the need for validation from others. I realized that the only way to truly succeed is to break free from the cycle of endless learning and start taking meaningful steps towards my goals. By overcoming analysis paralysis, I transformed my dreams into reality and paved the way for a brighter future.

This week's tool that I wanna give you is something that I think is the most undervalued and underestimated profit indicator in a wholesale company.

I have been a wholesaler since 2014. I have personally coached and mentored hundreds, and at this point probably thousands of real estate investors who wanna be wholesalers or, who are running a “successful” wholesale business.

But 90% of them are screwing up the back end. The dispositions part. Almost everyone understands that you need good marketing and lead generation. Most people also understand that the acquisitions process is critical.

This is where it breaks down. This is where 90% of the wholesalers that I have met over the years totally screw it up. They drive leads into their business, they spend a lot of time and energy learning to be good at buying properties, and then they treat the dispositions part like an afterthought. As if the house that they just put under contract is a hot potato and the goal is to get rid of it as soon as possible. Getting rid of it fast is something to pay attention to, but getting rid of it for the highest possible profit is the most important thing.

I have developed a dispositions process that I believe will double your profits without you having to spend another dime on marketing or payroll.

And I'm giving you the process free.

Grab my exact disposition process that I use in my business to double my profits on all my deals 👉🏻👉🏻 HERE

DISCLAIMER: This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.