World Wide Property Sales
The Three Levels of Real Estate Investors
by Peter Conti
I had a great conversation with a mentorship student yesterday who shared with
me how he and his wife are selling their third house (their first two houses
they still own) and will net $45,000. It inspired me because I had talked with
them over a year ago when they had a tenant/buyer back out of a deal, and they
were at an emotional low.
Let's face it, if you're in real estate long enough, you will have moments
of frustration and emotional lows. But the other side is so worth it. You have
to look at real estate investing from the 'Big Picture' perspective. I hope
you will gain new insight to your business for your long-term success.
The Three Investor Levels
The end goal my partner, Peter Conti, and I have for you is that you create both
the passive streams of cash flow needed each month to live an incredible life,
And to build a significant net worth. It is the combination of these two
financial markers'cash flow and net worth'that guarantee you financial
success over time. Cash flow is the money you get each month that you can use to
fund your lifestyle, to invest in more appreciating assets, and you can use to
share for the greater good.
Net worth gives you long-term financial health. It's equity you can use to
convert into lump sums of money. It's capital you can convert into cash flow.
It is stability and an important long-term piece of financial abundance. From my
perspective, I see real estate investors needing to grow through three distinct
levels. See where you fall and, more importantly, where you want to end up.
Level One Investors
They've proven that real estate doesn't just work for other people, but that
it works for them. They have done this the most simple way'by making a
significant profit on their first few deals. Level One investors have the
certainty that real estate will be their proven path to financial success. They
know they still have a lot to learn, but they've seen that they can do it.
Level Two Investors
Level Two is all about mastering the five core skills of real estate investing
and building a business to support a real estate portfolio. Level Two investors
have created a net cash flow of $5,000 to $50,000 per month and an increase in
their net worth $250,000 or more per year.
Most investors think Level Two investing is all there is. They aren't even
aware that another level exists, and they stop short. But there is so much more
that's possible for them, and the rewards are worth the effort.
Level Three Investors
Imagine having built your mini-empire in such a way that you earn massive income
without having to be involved in the day to day direction of the business. Level
Three investors earn at least as much as Level Two investors, but they do it
passively.
This means Level Three investors work less than ten hours per month. Their
property portfolio and business work without them needing to be there to run
things. I'll share some thoughts on the key steps to progress through each of
these three levels.
Key Steps to Moving Through the Investor Levels
Level One: Since this level is about proving that real estate works, you
have three main hurdles to 'climb." First, to get out of thinking mode and
into doing mode. This means going out and meeting with at least three
sellers--this week!
One of the reasons we make every mentorship student go out and meet with sellers
right there at the training is it's too easy to let fear push you to
rationalize away your dreams: 'Oh I'm too busy.' Or, 'I'm not
ready.' You can either have your reasons or your dreams, but you seldom get
both.
Second, learn from the best coaches and teachers. Notice that this learning
happens after you've broken through the inertia of inaction. Learn from the
best, but make sure you are really willing to do first.
Third, stop and learn from your experiences on a regular basis. This triangle of
Do, Learn, Regroup; Do, Learn, Regroup is the key to your initial success.
Level Two: Here are the five core skills you have to master:
- How to consistently find motivated sellers.
- How to be a master negotiator.
- How to quickly analyze deals to know the deals from the dogs.
- How to structure a variety of deals: short sales, lease options, cash sales,
"subject to" deals, selling on a wrap mortgage'
- How to write up the deals and understand the contract part of investing.
Level Three: The key here is belief systems. There really is no
difference in skills other than the beliefs that support you seeing the
opportunities that exist all around for big deals. At a certain point it's
actually easier to buy a shopping mall than it is to buy five more houses. And
you'll make 10-fold to 100-fold more cash flow from the shopping mall,
potentially.
I hope this got you thinking. I'll revisit this topic over time to share more
thoughts on it. For now, what's important for you to do is to identify
yourself on this spectrum. Where do you fit?
Bio:
An ex-auto mechanic turned real estate multi-millionaire, Peter Conti is one of
the top real estate investors in the United States.
He has created over 15 real estate courses and six real estate best sellers,
including Making Big Money Investing in Foreclosures Without Cash or Credit!,
which soared to the top of the best seller lists at the Wall Street Journal and
Business Week.
In addition, two of Peter's books were selected among the Top 10 Real Estate
Books of the Year by syndicated real estate columnist Robert Bruss.
In 2005, Conti added the Commercial Mentoring Program to his already successful
list of Residential and Foreclosure programs. This Level Three Program earned
the Educational Excellence Award from the American Real Estate Investors
Association and attracted Wiley Publishing to ask Peter to write their
Commercial Real Estate Investing for Dummies book.
Peter Conti says, "Anyone can create the level of success and life fulfillment
I've created...once they know how. The secret is combining a burning desire to
succeed with finding the right mentor."