How To Become A Real Estate Mogul (Stage 1)
WARNING...Below is the exact roadmap you should use to accelerate your journey to becoming a real estate mogul, and turn your real estate investing "hobby" into an automated 7 figure income.
So what does it take to become a real estate mogul? Are real estate moguls gifted, lucky, or have some natural abilities they are born with? When I think of a mogul I typically think of someone that has risen to the top of their game, amassed a HUGE fortune, and lives the lifestyle of the rich and famous. So the question I have for you is "Can the average Joe or Jane become a real estate mogul?"
In the book "Outliers", Malcolm Gladwell talks about a concept he calls the 10,000 hour rule. Basically what he says is that for a regular person to be considered an expert at any job, industry, or sport, they must practice for at least 10,000 hours. 10,000 hours! If his theory is correct then anyone can become an expert, and rise to the ranks of mogul if they practice enough!
Becoming A Real Estate Mogul Should Not Take That Long
BUT WHO WANTS TO WAIT THAT LONG? That means you would have to practice for 24 hours a day for 416.67 days before your considered an expert and transition into becoming a real estate mogul. No wonder I failed miserably when I first got started as a real estate investor. My A.D.D kicked in and killed any hopes of me staying focused that long. If you're anything like how I was when I first got started investing in real estate, then you want to make as much money as you can in the shortest time frame possible!
Fortunately for you, there are investors like me that spent the time and mapped out the exact business and marketing systems we use everyday, in order to dominate our competition and make a fortune investing in real estate. Like investing in a restaurant franchise, you cut down on your 10,000 hours and gain a HUGE competitive advantage over someone that just "wings it". Proven systems work because you don't have to think before you take action. You just simply need to follow the step-by-step road-map and expect to get the results the system is designed to produce!!!
Becoming A Real Estate Mogul In 4 Stages
- Stage #1 - Closing Your First "No Money Down" Real Estate Deal
- Stage #2 - Ramping Up, Building Out Systems, And Firing Yourself
- Stage #3 - Doing Fewer, Bigger, Better Deals
- Stage #4 - Becoming A Tax Free, Passive Real Estate Investor
Below you will find the exact step-by-step blueprint you will need to follow to quickly become a real estate mogul and turn your investing "hobby" into an automated 7 figure income within the first year.
Stage #1 - Closing Your First "No Money Down" Real Estate Deal
The place where most future real estate moguls start is learning how to wholesale real estate. Real estate wholesaling is the concept of hunting down distressed sellers, negotiating to buy their property at a significant discount, then after putting the property under contract, re-marketing the property for sale at a discount from retail to cash buyers. Once you find one willing to pay cash for the property, you simply assign your rights to the cash buyer and collect an assignment fee. Click here if you want to learn more about how to wholesale real estate.
In this stage you start out confused, scared, and hesitant. Maybe even broke. The key to creating "crystal clear clarity" and "superior confidence" is realizing 3 things:
- Having the right education is essential.
- Marketing for leads is your businesses #1 function.
- You cannot do this business alone.
When I say the "right education" I am not talking about "googling" how to wholesale real estate, reading a little bit about the subject, and then winging it. I'm talking about plugging yourself into a "franchise-like" wholesaling system that shows you how to set up your business, how to market for leads, how to process those leads and uncover the "deals", how to negotiate and make offers like a pro, and finally, how to close and get paid.
There are a lot of so called "Gurus" out there that try and teach wholesaling... but like the "Wizard" in the Wizard of Oz... once you pull back the curtain...in reality they don't currently wholesale houses in todays turbulent real estate market!
When I say that your businesses #1 function is marketing, I mean that if you don't spend the majority of your working day marketing for leads, then you will die as a wholesaler. Right now you should be able to consistently close multiple deals each month because of 6 "super profitable" marketing channels.
Cody's Current 6 "Super Profitable" Marketing Channels You Should Use When Trying To Buy Discounted Properties:
1) Direct Mail Marketing - This should only be done with proven "magnetic marketing pieces", "conversion scripts", and by buying the right leads from a "top secret" list of motivated sellers. Otherwise you WILL lose money. I teach all my students the exact place to purchase a list of highly motivated sellers, give them my magic bullet marketing pieces, and show them the system they need to use in order to continuously mail for less than .39 cents a postcard.
2) Bandit Signs - On average you should always have at least 100 bandit signs out at any given time. There is a right and a wrong way to place and track your signs results to ensure you avoid fines and maximize ROI. I show all my students exactly where to purchase their signs, and how to outsource the sign placement.
3) Making Offers On HUD Properties - This can be done through HudHomestore.com as long as you have access to a registered real estate agent with a NAID #. The only way you should make offers on HUD properties is if you have access to our "proprietary spreadsheet" that tells you what to bid.
4) Online Marketing - This includes running PPC campaigns, and branding your buying and selling business on Google, YouTube, and Facebook. This is easily done using Clever Investor's M5 Marketing System. The M5 automatically builds your buying and selling websites, squeeze pages, and Facebook fan pages, then funnels any leads you generate into an email marketer and text message marketer. This is the ultimate marketing system for a real estate wholesaler, and it is packed full of lead generation training that focuses on SEO, YouTube, and Facebook marketing as an added bonus.
5) Breeding Birddogs - Using real estate bird dogs is a great way to become the "go-to" real estate wholesaler in your town. Most wholesalers offer $500-$1000 to a bird dog which does not really motivate anyone. You should only breed bird dogs using Clever Investor's proven bird dog breeding program.
6) Using Virtual Assistants To Hunt Down "Diamonds In The Rough" - Scrubbing the local County Recorders records for Probate, Inherited Property, Code Violation, Fire Damaged, and Tired Landlord leads is a ton of work. Having a Virtual Assistant do it for you while you sleep... is AWESOME. You should only use this technique if you have access to our VA training program where we teach your VA exactly how to hunt down deals in County Records!!!
And when I say that you cannot do this business alone, I mean that your only as good as the weakest member of your Power Team. Your power team is essential to your success in becoming a real estate mogul, and by "hiring" the right team members who exhibit "Level 5 Leadership Qualities" you will begin to grow and profit. Basically what "Level 5 Leadership Qualities" means is your power team members are experts in their field, and have the right blend of personal humility and professional willpower. When learning how to invest in real estate it is vital that you hire the right team.
The 3 Most Important Power Team Members Needed To Help You Become A Real Estate Mogul:
Real Estate Agent: Just hiring a real estate agent is not good enough. Your real estate agent must understand how an investor thinks, be capable of seeing the BIG picture realizing that they will have to chase dozens of "duds" before they find the diamond in the rough. They must understand how to look at the numbers and calculate ROI. And finally, they must realize that the relationship with an investor is much more profitable than that of the average home buyer. As an investor, you will do multiple deals every year and not look at deals from an emotional perspective.
Closing Agent: Just hiring any old closing agent is not good enough. Your closing agent must understand the creative side to the deal closing and be willing to do both assignments as well as "double closings". They need to educate themselves on the latest investing trends like flipping REO's, Short Sales, HUD properties, and Reverse Short Sales. And most of all, they need to understand that your closings are more important that those of a normal home buyer because within the year you will close multiple properties where the average homeowner closes one ever 7 years.
Real Estate Mentor: Just hiring any real estate investing mentor/coach is not good enough. Your real estate investing mentor should have hundreds of verifiable closed transactions and constantly close deals on a regular basis. Plus, they must be a good educator. I bet you can only think of 1 or 2 teachers from when you were growing up that made an impact on you. There are a lot of bad, or "average-at-best" teachers out there... being a great teacher takes a combination of training, talent, and patience. And lastly, your mentor should have proven business and marketing systems, be good at holding you accountable each and every day, and be a great "motivator" encouraging you to push yourself outside your comfort zone.
So at the end of the day, in Stage #1 you should not focus on creating the world's greatest real estate investing business. Simply get your butt out there, build your power team, hire a coach/mentor, and turn on your marketing. Remember that at this point in your investing evolution you just need to focus on completing your first deal. My mentor always used to tell me to "keep articulating the ball down the field and eventually you will score a touchdown." Basically what he meant was don't focus on the touchdown... focus on the next 5 yards... then when you reach that goal.... focus on the next 5 years!!!!
Well that's it for now. Becoming a real estate mogul is easy when you follow my 4 stages. In my next post I will continue breaking down how to become a real estate mogul and reveal Stage #2 which is titled "Ramping Up, Building Out Systems, And Firing Yourself".
Your Friend In The Biz,
UPDATE, CLICK HERE TO READ HOW TO BECOME A REAL ESTATE MOGUL (STAGE 2)