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Stop Asking This Question; Start Asking Another Instead

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As real estate investors, we tend to look at each deal and ask ourselves the question, “how can I do this deal with the resources I have?” And while that is a natural question to ask, it’s the wrong question—instead, we need to break that question into two separate questions: 1) is this a deal worth doing, and 2) if so, what resources do I need to do this deal? In this episode, Jeff talks about a powerful quote, and what it means to us Thoughtful Real Estate Entrepreneurs: “Don’t tell me what you have and what you can do with it; tell me what’s possible and what you need to achieve it.”

Episode Transcript

I was at a great event recently, and I heard one of the speakers mentioned something that one of his advisors said to him, and when I heard it, I thought, oh my gosh, that’s beautiful, and brilliant and it applies so much to what I talked to my coaching clients about. So in today’s episode, I want to share that simple statement with you. But dissect the depth and the power behind the questions that it asks that are far more important than it might seem on the surface. So let’s cue up the theme song and jump right into it.

Welcome to racking up rentals, a show about how regular people, those of us without huge war chest of capital, or insider connections, can build lasting wealth acquiring a portfolio of buy and hold real estate. But we don’t just go mainstream looking at what’s on the market and asking banks for loans, nor are we posting “We Buy Houses” signs are just looking for quote, motivated sellers to make lowball offers to. You see, we are people-oriented dealmakers, we sit down directly with sellers to work out Win-Win deals without agents or any other obstacles and buy properties nobody else even knows are for sale. I’m Jeff from a Thoughtful Real Estate Entrepreneur. If you’re the kind of real estate investor who wants long term wealth, not get rich quick gimmicks or pictures of yourself holding fat checks on social media. This show is for you. Join me and quietly become the wealthiest person on your block. Now let’s go rack up a rental portfolio.

Thanks for joining me for another episode of Racking up Rentals. Show Notes for this episode can be found at www.thoughtfulre.com/e128. Please do us a big favor by hitting the subscribe button on your podcast app, it really helps you make sure you don’t miss any shows and it helps other fellow Thoughtful Real Estate Entrepreneurs to find us onward with today’s episode.

So I was at this event recently, and the speaker on stage was telling the audience that I was a part of something that one of his advisors said to me and what the advisor said was this, don’t tell me what you have and what you can do with it. Tell me what’s possible and what you need to achieve it. Okay, let me say that again, because we’re going to dissect it and break it down. Don’t tell me what you have and what you can do with it. Tell me what’s possible, and what you need to achieve it.

Okay, so let’s just take the first half of this, because these are two different ways of thinking. And it applies so directly and so powerfully to how we think about the deals that we are looking at doing. So the first part of this sentence is, don’t tell me what you have and what you can do with it, right? So what we tend to do is we tend to look at our resources and say, Well, okay, here’s what I’ve got to work with. Maybe it’s I’ve got $10,000, I’ve got a good credit score, I’ve got a bad credit score, I’ve got some property management experience, but we look at it, we say here’s what I have. Then we asked what can I do with it, right? So we look in our wallet, we say, Okay, we’ve got $10,000? What can we do? Real Estate Investing wise with those $10,000 and that’s a very natural thought process. It’s a very common-sense way to think about it. But it’s also a very limiting way to think about it, because you are only seeing things that you feel like are possible with the resources that you have.

Now let’s revisit the second half of this sentence. Instead, tell me what’s possible, and what you need to achieve it. Okay, so in this case, what this person is saying is, stop worrying about the resources that you have or don’t have. And instead, let’s look at an opportunity and figure out what’s possible with that opportunity, then we’ll make a list of what we need to go out into fulfill that opportunity that we see. Now, this is a very different mentality, right? That as a real estate investor, from a deal-by-deal perspective, what this is saying is when you have a deal, take a look at that deal. And figure out where the opportunity is, figure out what maybe the highest and best use of that property is so to speak, figure out where you see the greatest upside where you see the greatest opportunity without worrying at all about whether you think you have the resources to do that deal or not. Then once you know what the greatest opportunity is, now make a list of what you would need to achieve it. And instead of worrying about what we have, we now have a list of what we need to go out and gather on a resource type of level to fulfill the potential that we have found. So if I could sort of summarize one main question, one main topic that I find myself talking with my coaching clients about It is really this because there are two questions. As we look at a deal that we tend to smash together into one question, the question we ask ourselves is, okay, I’ve got to deal. How can I make the most of this deal with the resources I have? That’s the natural question that we ask ourselves. But the better way to approach this is to ask two separate questions. The first question is, is this a deal? And if so, how is it a deal? What is it that makes this a good opportunity? Is this a deal worth doing? We’d have to look at that question by itself, without worrying about anything besides that. So we just simply need to answer that question. First and foremost, is this a deal worth doing? Is there opportunity here? And what does that look like? The second question, though, that we then ask ourselves is, if it is indeed a deal, what do I need to assemble in order to do that deal? Right? So now that we see that there’s an opportunity there, we might say, “Well, okay, it’s going to need four pallets of two by fours and it’s going to take this amount of paint, and it’s going to take this amount of money to do that.” Now we’ve got basically a shopping list that says, we have a project that is worth doing. We’re going to go out and we are going to acquire the resources we need, you know, I love to make this analogy about cookies. You can look in your pantry and say, well, I’ve got, you know, a half a cup of chocolate chips, and I’ve got some coconut flour, and I’ve got some potato chips in this network. What can I make with that, okay, I want to make cookies, well, it might be end up being some weird cookies. If we try to just bake cookies with what we have. On the other hand, we can look at our vision and say I want to have a big beautiful plate of two dozen cookies. Now, now that I’ve seen that vision in my mind, and I know it’s a worthy project, I know, I can picture myself enjoying those tonight, I can picture myself giving some to my neighbor and you know, having my kids enjoy them, etc. What do I need in order to bake that batch of cookies? Oh, with chocolate chips, great, I’ve got some of those, I might need a few more. Over here, we’re going to need to get some eggs, I’m going to need to get some a different kind of flour, etc. But we focus on the vision first and what’s possible. And then we focus secondly, on achieving or assembling the resources that we need to achieve that goal. So here is my encouragement to you. I realized that it’s perfectly natural to look at any opportunity and say, ‘how can I do this deal with the resources I have?’ But we have to stop asking that question because it’s the wrong question. We have to break it into two separate questions. Is this a deal worth doing? And secondly, how do I get the resources that I will need in order to do that deal. So I want to leave you with this quote one more time. And I hope that this just bounces around in your subconscious. I hope that it’s haunting you in your sleep in all the right ways. And I hope it’s just infiltrating your thinking in the back of your mind and eventually in the front of your mind. And here it is. Don’t tell me what you have and what you can do with it. Tell me what’s possible, and what you need to achieve it.

That’s it for today’s episode of Racking up Rentals. Again, show notes for today’s episode our thoughtfulre.com/e128. Please do us a big favor by hitting the subscribe button in the podcast app and rate and review the show. Did you know we have a Facebook group for thoughtful real estate entrepreneurs too? It’s called Rental Portfolio Wealth Builders. We’d love to have you join us over there. Just go to group.thoughtfulre.com and the magic of the internet will take you right to that page and you can hit the Join button. If you liked this episode, please take a screenshot and post that to Instagram and tag us we are @thoughtfulrealestate.

I will see you in the next episode. Until then. This is Jeff from the thoughtful real estate entrepreneur signing off.

Thanks for listening to Racking Up Rentals where we build long term wealth by being a win-win deal makers. Remember solve the person to unlock the deal and solve the financing to unlock the profits.

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