All Forum Posts by: Tommy Ray

great event!  Totally enjoyed it!

Agents / Brokers / Property managers sit on top of of a sphere of influence, a myriad of social media platforms, and a desire to excel and secure a stake in life for themselves and their family.  How best to parlay this into something very special? 

Learn to create value by solving problems.  Invest in intellectual re-capitalization!  "Creating Wealth" by Allen was the first book I read that really struck me as a "how to think book" in this regard.  "Rich Dad, Poor Dad" reinforced it and turned into my little lunch box of motivation and is an annual re-read to stay motivated.  There are no educational platforms with embedded spheres of influence, tools to find deals, and recurring training opportunities with vary modalities to increase the effectiveness of the training.  Embrace these and internalize the learning.  More importantly, add the culture and the goodwill to round out your skill sets.  See sarealestateinvesting.com as an example. 

Solving problems is a dying art thanks to the combined effects of the US public school system, never ending bounty of technology / app distractions, our shallow culture, no sense of delayed gratification, and disengaged parents. Super networked agents have an incredible opportunity to step forward and create social fiber as well as build a professional "moat" around their real estate practice while at the same time building the potential to joint Venture (JV) into massive projects assuming they have built into themselves the right tools and competencies.

Covid-19 and our response to it has emptied out many of our hotels/motels in the city cores. Office space is not in as much demand. Time to pivot and re-assess the market needs! How holistically trained are you to do the required adjustments to the current market? Read the NAR chartered Dangers Report--threats to the industry are outlined. I hope agents, brokers, and property managers embrace the evolution. See sarealestateinvesting.com on how adjusting and re-tool military mirrors the approach agents/brokers/property managers should embrace.

Take Earnest Money as liquidated damages

Fire agent.

They should have you stacked with back up offers (RFR is what it is called here--basically notifying market that you have an accepted offer but you want backups in case they flake or fail)

When I was a rookie investor 32 years ago and a rookie agent 16 years ago I did not know this... and it is a big deal...

Values have value.  Someone with integrity, competency, honesty, and willing to disclose all they know to provide true transparency is incredibly rare in any human but especially agents, brokers, and tradespersons.  They allow you to shift your focus elsewhere and lean into them, their capabilities and their integrity.  Freeing up focused time for explosive growth while avoiding negative momentum moments that break confidence and hope.  

It has been my experience humans are opaque and you can not see what is in their heart and mind.  You are left with the difficult task of distinguishing reality while managing your fears.  Do you know how to see through the marketing that surrounds people in the marketplace?  Could you be part of the problem.  I know I am.

 Let me develop this point...

As a 55 year old guy my life was shaped by the 21 years in the military.  What we said is what we meant.  Anything less than that was perceived as dishonest and deceptive.  After 2 decades of this culture I returned to civilian life with the "judgment handicap" of honesty in a largely marketing saturated, mildly deceptive and manipulated capitalism coated reality.  So the journey commenced into real estate investing on a larger scale in 2008.  The market collapsing as mortgage backed securities were being defaulted on left right and sideways...  (see the movie "the big short).  I commenced to buying tens of houses a year to buy, renovate, refi, and rent as well as some to buy, renovate and retail resale.  The time between 2008-2012 were fat times and profits were good as the margins were large and the room for error was significant.  Those times would allow me to stay in the game even though I made these errors.  Today bears not resemblance to 2008-2012 buyer beware.

1. I projected my values onto people I met.  People that would later prove they deserved none of my trust had gotten my trust because my values were the lens I saw the world through.  I was naive.  They were deceptive.  Trades has always been the greatest challenge for me.  A people that live hand to mouth may and are more likely to manipulate anything and anyone to survive.  Find tradespeople that are good people.  They will tend to have a book of business forward scheduled to where you have to wait for them.  They are doing things right.  Wait for them.  Give more value to get value and learn to lean into one another so as to create something very special. 

2. Just because a realtor, broker, or agent hold themselves out as an expert it does not mean they are. Interrogate them on the creative deals they have done: subject - 2 buys, vacation rentals, wraps, VA Vendee deals, Room 4 rent models, owner financed deals, Joint Venturing with owners to fix, and retail their homes for equity splits, and alike... Listen for those crickets .... ;). Hugely mind blowing read for you: https://www.nar.realtor/videos...

3. Tell a good story.  My grandfather could tell an epic story.  We'd listen to the story (same story) year after year each summer we visited.  We would never interrupt papaw...  I can still smell the cigarette and feel the gentle breeze and the swing bench on his carport.  Tell a good story that is the basis of your plan to your brokers, bankers, friends and families and build the coalition of the willing about a year before you need them.  The plan can be the development of a home to its highest and best use.  It can be the development of a business plan and how you are to re-gentrify a larger project or a city.  It is marketing in its most organic form.  It also gives us all something very special that is in short supply.  Strategic patience coupled with wisdom that arrives when the project comes to fruition.   

Many things to convey here but I will rack and stack by my perception of importance.  Will speak to them as concisely as possible

Always Market - marketing is 1/3 of my business activities.  It is both giving back to community, establishing goodwill, and asserting myself as a subject matter expert (I cringe to say that).  It brings me mentors, business allies, mentorees, assets that are often disguised as "problems" to their owners/past owners.  

Always Invest in Learning - Learning allows max conversion rates of problems to my portfolio.  An ability to assess someone's root issue and negotiate a win / win that also may not involve a heavy "sunk in" cash position to execute is one thing as well.  Learning to couple deal structure (subject-2s, lease options, wraps, owner financing, or a Joint Venture) into the solution scenario(s), while providing absolute transparency, and fully explaining the win / win to don't wanters will make them more accepting.  Trust is hard to earn and easy to lose so manage those expectations wisely.

Standardization of processes - doing everything in a manner (and documenting it) that it can be replicated by the next person in your organization once you feel the need to fire yourself.  You should want to fire yourself and elevate to a position where you get to apply your connective learning.  It will grow a greater understanding of your market, other niches, and other networks so you can assemble greater value.  Operate in the stated spectrum of organizational priorities.  As a buy and hold investor mine are: safety (first), security (second), function (third), and aesthetics (looks are last).  So whenever something is wrong my teams address the issues in that rack and stack of values because monies are usually a limiting factor for managers I have delegated into roles of daily problem solving.

Culture and Content - Add culture and content to everyone and everything you touch.  Leave things better than when you found them.  Sort of like mom telling me to pick up my toys as a kid but at a deeper soulful social level.  Celebrate the grit and struggle of dealing with ever impatient humans.  Stay on target-never waver-never quit-you got this!

Wholesaling is most always the easiest point of entry into the real estate hustle.  An assignable contract and a sellers trust being the first things to start your momentum into the real estate game!

That is how most wholesalers start...  high motivation, low cash, high leverage of time, technology and networks....  The only problem is the range of deal structure familiarity and transactions fluency is low.  Credibility is a perception to sellers and they may be willing to sell to some but not owner finance others.  Looking to align with wholesalers to help fill their training shortfall and Joint Venture the learning and earning...  

Are there wholesalers out there struggling with this issue?

Kirsten, investing is an art to me.  Nailing down a firm understanding of "highest and best use", "market cycles", and "contrarian investing" will be of immediate use to you today.   Find me if you need more help...    https://www.facebook.com/tommy...

Kirsten in 1991, I knew I loved real estate so enrolling in the H&R Tax Preparers Course was a home run.  It was like reading the rules to monopoly before really playing the game.  When you get depreciation side of real estate it will be an eye opener.  When you have to have an underwriter mechanically add back in to your income all the depreciation (paper write-offs you are allowed by the tax code) to see what your true available income is you will understand them and their processes better so as to teach as well as manage expectations of your team.  Connective learning in all things at all times.

So I will assume you are someone like me when I was 19.  So taking to that newbie I will tell you what you need to know right now.  Ready?

1. Understand the rule of real estate investing in terms of the tax code.  Go to IRS.gov and print out the instructions for the schedule E and highlight all the write-offs.  Notice that training and education are write-offs, note meals and travel, note the 750 hours of active participation to have uncapped write-offs.  Log hours, save and label receipts and track mileage in a log.

2. Seek awareness--ASK FOR A MENTOR.  You do not know your right and left margins of mental elasticity and you surely do not know what you do not know.  But a mentor can talk to you and assess your strengths, weaknesses, and the opportunities and threats you face based on your personality traits and aptitudes as well as values.

3. Ask for help in gaining awareness from those who love and care about you.  Seem personalities are unsuitable to be buy and hold investors that self manage their properties.  Tenants are quick to sniff out tender hearted types and will export all their problems to such owners and walk on their rent payment obligations.

4. Look to materially participate in on-going activities of the mentors you have found that you find relatable.  Life is a give and get.  Immersive learning is best.  Once proficient at that "learning moment" move onto the next thing.  Best part you may trip into that aspect of real estate that you just love -- immerse there when you find it.

5. Find your A-team.  Your A-team will make you look dead sexy.  They cover down on tasks that are outside your current acquired skills sets.  Social Media marketers, accounting/bookkeeping, insurance, financing, and the various trades are all super common to want to fill as you build your own team.

6. HAVE FUN and stay CONSISTENTLY ENGAGED.  People want to see the good and the bad.  When they see those things they see you as real and relatable and they'll follow your evolution and even one day seek you out for advice.  I hope you freely give it as I am now... 

7. this is where you take over and start filling in steps... and learning, earning and adding back to the culture within these few words...  Time is ever fleeting....  Don't waste....  Look to help others...  I hope this message resonates in your soul... forever

That subject line throw you for a loop?  Heard of leaving money on the table in regards to a deal?  Well knowledge is money if applied.  Let me explain....

When I started real estate I wanted MOMENTUM.  I could taste progress when I was taking action and buying, holding, leasing and dealing with the mundane tasks of property repairs, maintenance and taxes (accounting and reporting).  But it did not occur to me that what I felt as progress was really me being pacified by activity and perception of progress.  Now I know I should have become a mass consumer of information and attitudinal culture at the outset.  I should have always been on the look out for an evolution mentor w/I real estate.

Expanding further--I started at the tough end of the spectrum "buy and hold" versus at the knowledge end of the spectrum on hybrid/derivative deals like: subject 2s, owner financed, Lease options, wraps, joint venturing with owners to fix, retail resale something they would otherwise not have the capital, time, or other resources to do. 

In short, I did not add knowledge to myself so I could add value to others, their transactions, and facilitate problem solving.  

Values have value--never forget that!  It will serve you well. Afford to "pay" attention and learn how to earn because this world is FILLED with OPPORTUNITIES.  People bring them to you and lay them at your feet.  They carry a gift to you that they call a "problem"...  They see it as a don't wanter property or a physical issue like deferred maintenance that are beyond THEIR means.

But you my friend have taken the time to learn much so you can provide much -- both specific knowledge of how to reposition the asset and how to involve your mentor, their capital and JV the deal. Learn to Social Concierge others to problems and solve them together... I know, I know schools don't teach this... Maybe we should make schools teach it--I am in if you want to win that way!

Lastly people change as they go through their different cycles of life.  As we get older we shift and want to have a greater societal impact so we can answer the question to ourselves--what was it all about, what impact will I leave....  I stand ready to assist.

Get'r done