Personal Podcast Notes (432) 4 Steps a Millionaire w/ Brandon & David
BiggerPockets Podcast 432: From $0 to $1,000,000 in 5 Years: The 4 Steps to Gain Millionaire Net Worth with Brandon and David
My personal takeaways
Anybody who learns to do these 4 things will become a millionaire in five years or less.
1.Be decisive. As investors, we are not standing on the beach looking for buried treasure hidden gold, we are artist standing in front of a giant easel. So we have to be decisive and our decisions matter but they don’t matter as much as we might think. Decisiveness leads to the data that you need to build wealth. Don’t get stuck in the planning phase. Instead, Decide, Commit (take action), Plan. You’ll figure it out as you go. It is more important that you decide than what you decide. Investing is like driving on a foggy road. You cannot see the entire road, but you will never reach your destination if you stop on the shoulder trying to anticipate every twist and turn ahead.
2.Take repeated action in a related field. Keep asking what is the next step and building momentum. How do I go faster? How do I do more of this? Continually moving.
3.Track what you’re doing. Track the actions that you are taking that are leading to you being successful. Track your budget. How much are you spending every month and how much are you bringing in? I don’t know a millionaire who can’t tell me what they’re doing in their business and how often they do it to get the results if they want. Track the number of offers that you’re making . How many deals did you analyze this week so that you can make an offer on them? How many deals are you getting across your desk? What are you doing to get leads right now and how much of that did you do last week? Tracking also allows you to get other people to do the work. It’s really hard to outsource thing if you’re not tracking. Because how do you know if they’re doing the right thing? Track your habits.
4.Mastery. The various things you do to be come world class. You cannot just be mediocre and hope to succeed. Mastery is a process of becoming increasingly better. Continually asking yourself, “What did I do wrong what did I do right and how can I improve?” When you’re just getting started you should specialize so that you can get a lot of reps doing one thing. We need to become extremely good at doing that one thing. Specialization in focus allows me to get a lot of reps in one area and develop mastery then you can start expanding into other areas. As you gain experienced, part of mastery is not resting on what you’re good at but finding bigger and bigger challenges. That is why we recommend The stack. The stack is a concept where it where if you’re having trouble building momentum you start buying a house because it is the easiest way to get started in real estate. Use house hacking to buy a SFH, then buy an investment property, then buy a duplex, then a 4-Plex, then an 8 unit apartment, then a 16, etc. With this stacking approach, your jobs are big enough and they are challenging but you’re not going to drown. That is how you ensure that you’re improving. You’re always taking on a bigger challenge. Another component of mastery pattern pattern recognition. You will start noticing when deals are showing up and cash flow properties aren’t in this area they are over here. You will become savvy at detecting honesty or dishonesty in other people but you can’t develop this skill without getting in repetitions.
Use the Crystal Clear Criteria.
1.Where are you going to invest?
2.Number two what property type are you going to buy?
3.What condition are you going to buy it then?
4.What price range are you going to buy it in?
5.Profitability. What makes it a good deal?
6.What strategy are you going to employ?
If you were decisive and you made your decision based on the six criteria, is there any doubt you will succeed? There is no doubt. Now you can gather other people around you. Now you can have other people help you find the properties. Now you can focus your marketing on these things.