Why would a book on the topic of power be interesting to real estate investors? Essentially, we are entrepreneurs running our own business.
One answer and lesson I learned from this book is leaders need power.
Power has many definitions and applications, but for our purposes here today what I am really talking about is the ability to dictate the way that events unfold.
I am talking about status, leadership, and above all, the ability to get things done. Other attributes are important.
- We need to be intelligent to make wise decisions.
- We have to be risk tolerant to take chances and improve our financial standing.
- We have to be likable and create trust with others.
All are great traits, but none are enough by themselves.
Power is leverage. Power is resource control. Power is the ability to be effective and get results.
Lesson 1: Understand and Improve Ourselves First
Before we try to influence others we must be in control of ourselves.
It is our responsibility to optimize the way we think, the way we act, and perhaps most importantly the way we react. We can only guide others on the path we want them to take, but we fully direct our own.
Accomplishing powerful goals requires two things. Will and skill.
You must have a bedrock foundation self belief and realize that personal change is possible. Many people refer to this as the Growth Mindset. Pairing together the Growth Mindset with consistent action produces results.
Real estate investing can be difficult to understand in the beginning. It isn’t the most complex career field, but there is so much to know that comes only with time and experience.
For a long time I personally struggled with “analysis paralysis”. I thought I had to know all the possibilities and answers before taking any action at all.
I hope that I can convince you that the better path is to harness your ambition and learn more effectively. Reading books is good, but spend even more time applying the principles and techniques.
You have to possess (or even better, create) the motivation to change your circumstances. Only then can you focus yourself to perform at the highest level and work to improve your skillsets.
“…strategically changing individual attributes to become more personally effective is both possible and desirable” – Jeffery Pfeffer
Work to become an expert because power requires experience. It will take time, consistency, and patience but there are no shortcuts.
Be forewarned, this requires sacrifice.
I want to be an excellent writer that requires time at the keyboard. Even now, I am sacrificing what could be leisure relaxation time after dinner to author this post. I could use a break after meeting with sellers today, but I want to improve my skills and propel my business.
It isn’t about what I want to do, it is doing what I am supposed to do.
Be disciplined because our field requires it. That means:
- Daily marketing – finding buyers, sellers, investors
- Daily networking – partners, real estate professionals
- Daily analyzing – farming your market, running comps
- Daily studying – this site has some create reading recommendations!
The powerful skill set that real estate investors need to develop is the ability to create and execute solutions.
Lesson 2: Relationships are Everything
An interesting point in Power was the revelation that we are personally less responsible for our own success that we think. Others (our boss, mentors, colleagues, acquaintances) have a greater effect in our success than we realize.
Power isn’t who you know. Power is who knows you. And likes you. And trusts you. And will take action for you.
Not only do you want to become a powerful person, you want to know powerful people. You want to network with them, befriend them, and do business with them.
One catch, powerful people you want to know are busy.
Networking with the right people takes time. Make sure to attend REIA meetings even if you have to push yourself out of your comfort zone to go.
Science shows that people like who they remember and by the sheer volume of exposure you will be more likable. This is called the mere-exposure effect. Your presence + time = familiarity -> likability.
Make people feel better about themselves, it will positively affect your likability. Use genuine flattery to get on people’s good side. I mean it when I say genuine. Look for the good in others. Have them talk about themselves.
Human interaction is a necessary real estate investor skill. Your network is truly your net worth because that is where you find partners, money, contractors, ideas, and deals. Your network is how you grow your REI business.
Mind your reputation. Trust is built slowly and lost quickly.
How many investor newbies destroy their own future prospects trying so hard to complete a wholesale deal by presenting inflated ARVs and omitting expenses?
You only get one chance to make a good first impression. Make is a positive one because with reputations perception is reality.
Lesson 3: Cultivate Tolerance to Being Uncomfortable
Develop the power to triumph over your own mind. Sit outside your comfort zone.
If you are able to take right action, especially when they are uncomfortable, you will be successful.
Ask questions and ask for help. Most people have a hard time doing these things. Their egos are afraid that asking questions makes them look ignorant, so they would rather remain ignorant. This is a common fear and people have a hard time asking for help because it hurts to admit that you cannot do something on your own.
Knowledge is power, so ask the question. Be the one that is able to ask for help.
Investing is a team sport and there are ways to create a win-win on almost everything with the right answers and the right people on your side.
“50% of a good deal is better than 100% of no deal” – Brandon Turner, Bigger Pockets
Face adversity. Most people don’t take right action because they are afraid.
- They are afraid to speak to sellers
- Afraid to speak in public
- Afraid to pick up the phone
- Afraid of being told no
If you need to hear this I am happy to tell you the truth.
- You will be told no
- You will have offers turned down
- You will have phones hung up on you
- You will find out that not everyone appreciates that you can help them
- You will have someone at sometime in your real estate career be angry at you.
The truth is, it is ok to be afraid and uneasy about all of this.
I couldn’t even answer the phone when I first started getting leads. I would let it go to voicemail then analyze the message for a half hour before maybe calling that lead back.
But you learn. You adapt. It’s ok, you will survive, figure it out, and do better next time.
Real estate investing requires thick skin. Be proactive, be assertive, be ok with looking foolish sometimes, as long as you learn.
Power struggles happen in the real world every day. It is most evident in politics and the traditional workplace, but it happens in our industry every day.
There is no point in wishing it was different because the reality is that the world isn’t always fair. That is where power comes in. The ability to learn how to harness power leads to a better life.
“You have both the responsibility and the potential to change your situation… It is up to you to find – or create- a better place for yourself.” – Jeffery Pfeffer
I wish for you the power you seek, develop, and implement for good because powerful people get things done.
Powerful people can do what the helpless cannot, solve problems.
Leave a Reply