How To Start A Real Estate Business From Scratch
So, today we're talking about how you actually build a real estate business from scratch. And here's a couple things that you need to be aware of. If you're reading this article you're thinking, "Why wouldn't I get out there and just build a business from scratch?"
Now, take it from someone that has done thousands of deals. Literally thousands of deals over the last 15 years. And here are the biggest -
Misperceptions that I find. People will either say, "Oh, you're going to need some money if you're going to do that. You know, money credit and then the second thing they say is, you know, "And you're going to need some experience and I'm like,
"Wait a second. That doesn't make sense." Are you saying the chicken comes first or the egg? Because you can't get experience until you actually get out there and do something. And then they're going to say "Yeah.
But if you mess up because you don't have the experience, you're going to lose everything bro." You can see why this is what keeps people from starting the real estate business. And I want to show you how to kind of get over that today. I'm going to introduce you to some acronyms. And here they are. The first one is OPM.
Did you know the stands for? It's not opium. For the masses. This is OPM. Stands for other people's money. So, when someone says, "Oh, I don't have money. Oh, I don't have credit." I say, "Great, then what you need to learn how to do if you're starting a business from scratch. Your job isn't to possess the resource. Your job is to gather the resource.
That distinction my friend is worth a million dollars to you. Your job isn't to possess the resource. Your job as to what? Gather the resource. So, OPM means I got to go out and find the people who have the money.
And by the way, why would someone give money to you? I mean you've never done any of this before. Easy. Because if you find a really good deal, then the money talks, and then people jump in and that's how people and real estate get started every single day.
The next thing that you want to leverage is o-p-s. This stands for other people's systems. Do not reinvent the wheel. If you're going to start a business in the game of real estate, then don't be like, "Oh, yeah, yeah. We're going to flip a property then we're going to do, you know, multifamily then we're going to a rental.
Listen, you want to specialize as quickly as possible. And if you're going to do your first 5 deals, do not do 5 different kinds of deals. You want to pick the best strategy and then do that one strategy 5 times. You want to that for a couple of reasons.
1. Reason number one is that if you learn how to do real estate this way and on your next deal you try it that way, you're diversifying way too much and you're having experience and nothing. You need to collect experience because with every single deal in the same experience field, you get better and better and better and better and your profits get bigger and bigger.
You do not want to be the jack-of-all-trades in the game of real estate. You want to be the master of one, okay? Now, in a moment, I'll show you a system that you can leverage. There are many systems that are out there. My system is simple. If you're a beginner, you should be doing lease options and you should be doing no money down real estate.
Because if you don't put any money up and something goes bad, guess what? You're protected, right? I want you to be insulated. And I don't want you to have this excuse of "But I don't have the money." Some of these deals take maybe like 4 or 5 grand. You'll find amazing deals it'll take 10 grand. But you'll find deals that don't require any money or like a very nominal amount, right? So, leverage someone else's system.
2. The next thing that I want you to be aware of is that you want to leverage O-P-E. Other people's what? Experience. What you need is a guide. Sometimes they're called Mentors.
And I want to give you the definition of a good guide. The guide has already been where you want to go many times. Like imagine for a moment that you want to climb Mount Everest, right? Like you have a choice. There are 2 guys available ones like, "Dude, this is like my first time up Everest but I got certified online.
It's going to be awesome." And you got the other guy who's like, "Alright. You're going to prepare. You're going to do everything that I tell you to do. I've helped 300 people up the mountain and no one has died on my watch yet. Not one. And you won't be the first.
It's like... Which guy would you pick? I'd probably pick Mr. crotchety, right? Like crotchety over surfer dude, probably going to be a safer pick. Similarly in the game of real estate, an experienced guide has done what you want to do at least ten times over.
So, for example, if you're like, "Hey, I want to make a million in real estate." Then go find someone that's made 10 million dollars, right? That already exists. Do not reinvent the wheel and don't be out there alone like the lone wolf. So many people are like, "If you want something done right, you do it yourself." That's how you get killed. Do not murder yourself. What you need to do is you need to say, "If you want something done right, you get a pro, you get a team, you get an expert." So, O-P-M, O-P-S, O-P-E leads to O-P-D.
Other people's deals. Listen, if you have other people's money, other people's deals, leveraging other people's systems, other people's experience, guess what you have now? You have everything that you need for making tons of money. Your job is to be the deal maker that pulls it all together. What you need to do is get the resources.