Joe: Hey, how you doing, guys? Joe McCall here. And on this quick video, I want to talk about the four M’s that you need to have for success in real estate investing. Now, I'm going to be talking specifically about vacant land, because that's my favorite thing right now. But this also applies for houses. It applies for multifamily, commercial. You know, the logo behind me, this is the Real Estate Investing Mastery podcast. I've been talking about real estate for a long, long time. This is where my passion is. It's where my heart is. I love doing deals and helping people do deals. And I was working on a new class that I'm doing. It's actually starting tomorrow and I was looking at my mind map and I was thinking, you know, this would be a really good little podcast that I can do quickly to talk about why I see a lot of people failing in this business. And it's kind of sad. A lot of people get excited. They want to get in there, they want to do business. They have really good intentions at the beginning. They're excited about the opportunity to make a lot of money, but then something happens and they get freaked out or they get nervous or they get scared about the unknown. And so I want to talk about these forums that are really, really important and critical for your success as a real estate investor, specifically as a land investor. So I'm going to be walking through this real quick before I go much further. I just want to give you guys an opportunity right now to get something for free figure right here to my simple land contract dot com. Simple land contract dot com. I'm going to give you for free the land contracts that we use for our land deals. It's a one page contract. There's actually a cover letter also that's included, but you can get it for absolutely free if you go to simple land contract dot com, check it out. You'll be glad you did. All right.
Joe: So I've got a mind map here that I'm going to show you. This is one of the mine maps that I create my courses on and I feel like it's going to be a big help for Angie. You ready for this? Number one mindset. Number two is marketing. Number three is momentum. Number four is getting a mentor. And I'm going to be talking about those four things kind of down below this mind map here. But it all starts in your head, doesn't it? It's like really this whole business, if you want to have success, is 80% mental, only 20% technical detail. I might even go further, say 90% mental, 10% technical. Because if you've got the right mindset that you believe that you can actually do this stuff, there's nothing that's going to stop when you hit a roadblock or a bump in the road, right? You're going to be instead of like freaking out, you're going to be like, Well, okay, I know so-and-so did this. How can I do it as well? I'm going to go ask somebody. I'm going to go look up a podcast, watch a YouTube video, buy a course, schedule a call with somebody like you. There is a way, when you're faced with an obstacle, are you just going to quit and give up or are you going to try to find a way to get around the rules or the laws or the things? Are you going to try to climb over it, which is a lot of hard work? Are you going to bust right through it? I say this all the time. If you believe that you can do it inside of your head, you will start asking better questions. You'll start asking questions like, All right, what's just the next thing I have to do? Instead of trying to figure it all out? Steps 1 to 8, just instead maybe start worrying about focusing on steps one and two or wherever you are right now. If you believe that you can do it, you know you will find a way to do it. So you've got to believe that's number one, right? Number two is marketing. I say this all the time. We're not in the real estate investing business. We are in the marketing business. Really simple. You need to understand the importance of marketing. Everything is marketing, and marketing is everything that if you want to make money, you got to do deals. If you want to do deals, you've got to make offers. If you want to make offers, you got to talk to sellers. If you want to talk to sellers, you need to do marketing. Okay? So focus on marketing. That's really all it is. And if I can take any problems somebody having and Mark in real estate and 99% of the time bring it back down to marketing. They're not doing enough of it. They're doing the wrong kind. You know, you don't have a money problem. You have a lead generation problem, really, because if you've got a lot of leads coming in and guess what? You'll find the money for your deals. You don't have a buyer problem. You're a marketing problem because you're not doing enough marketing to find the right buyers. Momentum is so important. It relates to marketing, right? And it relates to mindset because when you've got the momentum going behind you, you can actually start. When you've got the momentum behind you, you're feeling good, you've got leads coming in. Your pipeline is full of leads and you start now disqualifying leads instead of qualifying sellers or buyers or private investors, you're disqualifying them. So your mindset is completely different when you've got the momentum behind you. But it's hard at first. You like pulling that train down the tracks and it's hard to that first to pull, right? But once you continually use, you continue to keep on falling, you keep on pushing and more marketing, getting more leads coming in, making more offers, building momentum, starting to follow up with old leads. Right Then it becomes easy. It becomes hard to stop. Pretty soon you're going to start getting deals from leads that you got three, four or five, six months ago from marketing that you sent a long time ago because you've been following up, because you've been building that momentum. So never, ever, ever lose momentum.
Joe: All right. Then the fourth then, of course, is getting a good mentor. Or sometimes, you know, you just need somebody that can help remind you of these things and why this is important. Or I say this all the time to coaching clients when I'm talking to them. Do you really need to be worried about that right now? Is that I was just talking to somebody recently who was kind of not complaining but is in a funk because they're a little discouraged that they had to spend so much money on marketing. For them, spending a lot of money on marketing was maybe, you know, a thousand or $2,000 a month or something like that. Now, some people I get it, that is a lot of money. But I said, All right, listen, let's look at this here. What do you think your average profit would be per deal? And they said five grand. I say conservatively. And we worked the numbers backwards. I love doing this. Work the numbers backwards. Okay, so how many deals do you want to do? A month. And if I can just do one deal, that's great. All right. So how many offers do you think you need to make to do one deal? He said 30 has a great 30. All right, so how many? Let's figure out like how much to have any leads do you need to make to get to make 30 offers? Let's say 40 leads. All right. So if your direct mail response rate is conservative, 2% and it is for vacant land, let me open my calculator here. I know you can't see this. So if I want 40 leads and I'm getting a 2% response, I need to send 2000 letters. Right. How many how much does a 2000 letters cost? It's about 1500 dollars. Now, would you spend 1500 dollars to make $5,000? The answer is yes. That's a positive ROI. Now, by the way, looking at that number and this is where Mentor comes in with good experience, you're like, you should be doing way, way better than that. If you're spending 1500 dollars a month on direct mail, you should be doing at least two deals. And the problem the other problem is you should be making more than $5,000 per deal. You should be targeting ten grand per deal. So do you understand getting a mentor? It just helps you kind of break down it, break things down into its simplest components, help get your mindset right, help you focus on what's most important, like marketing, and help you not lose momentum by doing several things right. It could be accountability. I like to have my students submit scorecards every week and show me what are they focusing on, What are the things that they're doing? And you're like, Why are you spending so much time on that when you should be spending time on this so that the accountability, getting the scorecard, making sure you're focused on just the things that are next. Okay, cool. So all of that is kind of an intro to what I want to be talking about here in the mind map. And so it's important. This is all kind of related and you know, where I came from, where I got this stuff from is actually from my course because again, I'm starting a brand new program tomorrow. We close the doors tonight. So by the time you're watching, this is probably too late. But I'm doing a live six week case study where I'm going to be teaching all of this stuff. So one of the important things about this related to the mindset stuff is focusing on having a strong why? What does that mean? All right. Excuses happen when you're why is not big enough? What is it for you? And here's my encouragement. You need to find a strong way, number one. And number two, you need to write it down. Just write it down. Get a Post-it note, put it on your computer, or somewhere on your desk where you see it every day. And it needs to be a big Why not just enough to quit my job, make a lot of money? Why? Why do you want to quit your job? Make a lot of money so you can spend more time with your kids, so you can have less stress, spend more time with your spouse. When you look at your kids, make a promise that you'll create the best life you can present. When you look at your parents, make a promise that you'll retire them early. These are just some examples, right? When you look at your spouse, make a promise that they will never have to be worried about money again. When you look at yourself, make a promise to live your best life. So it's more than just the money. Why do you want the money? What is it going to do for you? Do you need to have picked yourself? Have a strong why? Because when things get hard and they will, that will help you push that through. So it's important to set your own expectations, not let other people set their expectations for you. But these need to be your own because disappointment and discouragement happens when you don't manage your expectations. So write this down every day. Stick it on your computer, Make it your mantra to focus on it. Don't forget about it, because this are important things. You need to have a big why and write that down. Cool.
Joe: Now, another thing that's important to this related to momentum especially is your speed. Income is directly proportional to what I know. There's a few people here watching live. What do you think your speed income is directly proportional to go ahead and type it in the comments and I will actually type this. I show you this as well. That's a bummer. I'm getting a bunch of spam comments right now. I don't know what's going on about Bitcoin. All right. Well, your speed to income, you ready is directly proportional to the number of offers that you make. Simple as that. This is why it's so important to focus on what's most important making offer. So in my scorecard, when I'm holding my students accountable, when I'm coaching them or on a group call, I'm always asking the questions. All right. How many offers have you made in the last week? Not how many business cards? No good, Allen Got it. Let me show you. Allen So there are people who aren't spammers that are watching this. Cool. All right, So it's not your business logo, your website. It's not whatever. It's the things are that you thinking that you need to get done or you're just. Delaying the inevitable, Right? It's making offers. That's all that matters. It's also a matter of being a Oh, let me fix my grammatical errors here. Being a fast implementer, implementer, or you correct me in the comments, right. They did a study, just these universities did a study where they looked at this big international sales company and they looked at the people that were making the most money, over $300,000 a year, and those that were making under $3,000 a year, those over 300 and those under 30. Right. In the sales department, a big international company. Okay. And they said, what is it about those people at the top that makes them so good at what they do? What about what's it at the bottom? And you know what? It was not it was not the college degree. It was not male or female. It wasn't that good looking. They were it wasn't their weight. Like, who were they, skinny or fat or ugly or beautiful? It wasn't any of that. It wasn't their pedigree, their degree. It wasn't their minority or ethnic status or anything. Like, you know what? It was the one thing that separated the good, the great rather from just the mediocre, the speed of implementation. How fast were they to implement the new things that they learned? How fast were they to call that lead as soon as it came in or to follow up with that lead after they talked to them at the trade show or whatever? Right. How fast were they? How consistent were they with following up when they learned some new sales strategy or some new products or whatever? They were fast to implement it. They were fast to get it out there. They didn't sit at their desk in the morning. Now, I know I can relate to this. I used to do this. They didn't sit at their desk in the morning in their job and mope around and go get some the cup of three cups of coffee and go play with emails and just do stupid work because you're just zoned out for whatever reason. No, they were quick. They were first to do the job. They were the last to leave. They were like massive, massive implementers and they were focused on productivity. So if you want to be successful in this business, make offers, That's really all that matters. How many sellers have you made offers to? How many deals have you made offers to you? It could be to a realtor, it could be to a property manager. It could be two old leads, could be to somebody else's wholesale leads. You know, somebody else is wholesaling a deal, make an offer on their deal that they're trying to wholesale. It may not work for them, but make offers. Get in the habit to make five offers a day. Okay, how about this? That may seem really intimidating. So let me simplify that a little bit more. Make it a habit to talk to five sellers a day or realtors, property managers, other investors talk to five people a day. You're talking about building momentum in your business. This will do it faster than anything else.
Joe: If you get anything out of this whole video here, I hope you're picking up what I'm laying down. Are you smelling what I'm stepping in? As I say, sometimes it's kind of dumb, but like, if you could talk to five sellers a day and then make offers to every seller you talk to, or maybe at least three offers a day. So you've got your big Y on the Post-it note there. Talk about how you're going to get to that, why it's making offers and how do you make offers. You talk to sellers, so make it a goal to talk to five sellers, be a fast implementer, know, wait until 4:00 before you start talking to the sellers. Start talking to sellers first thing in the morning. If you're doing real estate full time, if you're on your break, right, talk to sellers, just talk to five people. It's going to make a huge, huge difference in your business and in your life. Okay. The other thing I want to talk about here is you need to be in it to win it. You got to be in it. To win it, you need to play the long game. This is not get rich quick, but in my opinion, it's about the quickest way to get rich today. It's not easy, but it's simple. Does that make sense? So this isn't get rich quick. You got to put work into it. You got to put everything. You got to make offers. You've got to follow up. So if you're in this for the long game, if you're not in this as a hobby, you're want to treat this as a business. Forget about the get rich quick, but at the same time, don't get discouraged because I really do believe real estate, especially land flipping right now, it's the quickest way to get rich. Wholesaling, whether you're wholesaling land or houses, is the quickest, fastest way to quit your job makes sense. Now you've got to commit to this game for at least three months, preferably six months or more. And I say this all the time. You've got to be committed to making at least 50 or 60 offers before quitting. If you're in this like me, I'm just going to send a thousand letters and see how it goes. Right now. I'm going to try it out. Then don't even start. Like just stop and go back to working wherever you work. Go flip hamburgers at McDonald's or something. But you've got to be in this to win it with the long haul. So I want to see you in here for at least three, six months, making consistent offers before you quit and give up. I've talked to so many people, man. It's like there's a few out there that get a deal within the first week, the first month or something. Most people, maybe it's a couple 2 to 3 months. I know some people that stuck with it didn't quit and didn't give up, did a deal and nine months and refused to quit and give up. And guess where they're sitting now? Multi-millionaires in real estate. So never, ever quit or give up. But if you're if you have to, like, you can't be doing this for the rest of your life. Maybe you're trying something dumb. I don't know what, Like you've got to commit it. Commit to win. And play the long game. Does that make sense? If I'm saying 3 to 6 months, I would say don't just say, all right, I'm going to make 20 offers and see if it works or not, because it let's say it is an average of one offer out of every 30 that gets accepted and that I'm being conservative. They're right. We're averaging about 20 to 25 offers for everyone that we get accepted. And if you don't know, the way I teach land investing is we send neutral letters out and we send people offers who respond to our letters anyway. So if you're let's say your average is one out of every 30, it may be like offer number 59 that gets accepted and then offer 60 gets accepted because you're just persisting, not quitting giving up. And then when you average it, after all of that follow up, it's one out of every 30 offers. So that's my point. The other thing I see a lot of in line investors make especially is sometimes they get impatient because it takes time, takes time for the mail to hit the mailbox. You know, when you put in your order with the direct mail company, it may take them a week to get everything ready. Sometimes they send you an email back asking you to confirm something. You don't respond right away and it just kind of gets lost in the inbox. Then you finally find it after their second email and then you say, okay, good, let's go with it. It takes time to print the letters. It takes time to, you know, to get all that out. And then when it finally gets sent, takes time maybe to hit the mailbox, that seller is going to sit on that letter for a couple of days maybe before they call you. So sometimes it can take one or two or three weeks if especially if you're sending bulk rate mail and a lot of lane investors send bulk rate mail because it's cheaper, I recommend you send first class.
Joe: But my point is you got to give it time and you've got to have a budget for marketing related all of this. Treat this like a business, not like a hobby. I mean, when you compare it to franchising, but come on, it's a no brainer. All of the money you have to spend on franchising fees and equipment marketing, this is a business is not a hobby, but when you compare it to those other types of things, you spend way less money. It's way easier than any other business opportunity that I know of. The other thing I see, I see people struggling with is they do some marketing and they get all excited because they got some leads, but they're not good leads, right? The seller wants too much money or maybe the property's land locked or something's going on with the property and they get discouraged because they're like, Oh, me and I got 20 leads and none of them are good. Or I made I got 20 leads, I made 15 offers, and they all said, No, here's the point. I want you to always remember this. And this applies to houses are land always, always, always be making offers. Make them offers anyway. If they tell you in a voicemail, Hey, I'm not going to accept anything less than 20 grand and you want to offer ten, make them on offer anyway. You're going to make people mad. This is normal. This is something that I talk a lot about because people get discouraged tonight. All I get are these angry voicemails. It's funny when my son is going through our land, our leaves at home, he wears headsets. I told him, You have to wear headsets when the calls start coming in because I don't want my little girls who are 11 and 14, to hear all this cussing and stuff like that. Right? You got to make you got to have patience for that. Here's the other thing I hear sometimes people complain about was like me and Joe, all these sellers are like complaining and they're mad at me. And I don't like being angry about people being mad at me. I don't like dealing with angry people. What am I doing wrong? I say, You're not doing anything wrong. I mean, if you want to make people happy, go ahead and give them full price offers. Are you in this business to make friends or to make money while you're in this business? To make money and to do that, you're going to have to make a lot of people mad with your lowball offers. You know, if if one out of every 30 offers is not good enough for you and you want one out of every ten, go ahead and offer more. But I can promise you this, you're going to get really frustrated. You're going to have a lot of happy sellers, but you're going to get really frustrated. Then when you get these deals, you can't sell and you're losing money on whatever. So you've got to be very, very careful about who you work with, which means we are deal finders, not deal creators. You can only do deals with motivated sellers. Make sense. Let me get back to my mind map here. We're deal finders. We're not deal creators. You can only do deals with motivated sellers. And most sellers are not going to be motivated right now, which is fine. Don't waste your time with them. Just send them an offer anyway and then follow up with them. Which brings me to my final point in this little section here is if you're not making up somebody upset by 12:00, you're not making enough offers. You're not marketing hard enough. So I'm not saying your goal is to just piss a bunch of people off. Your goal is to make a lot of offers, which means you're going to make a lot of people mad. So if you've not made somebody mad by 12:00, you're not making enough offers. So get your butt out there and make more offers. Talk to more sellers. It's going to help you build confidence. You're going to get thick skin. And yeah, look related to this, the other problem I see is that some people are like me, man. Do I? I've been doing it. I've been working hard. I mean, getting these leads and you become a motivated buyer, you understand? You become a motivated by it, like, oh, I want to I got to turn this little or, you know, I'm hungry for money, I want to make money. This is a marginal deal. I'm going to go ahead and take it because I can make something out of it. Something is better than nothing. So you try to find creative ways to turn this thing into a deal. No, you can't do that. We are deal finders, not creators. And so most sellers are not going to just of course, every seller wants to sell their property for full price and they want to sell it in a week. All cash, no contingencies, right? Of course, every seller, if you ask them out, is going to want that. Nobody's going to want to lease option their house. Nobody's going to sell their house with owner financing and wait 15 to 30 years to get all their money out of it. Right. So your job is not to worry about what they think or what they care necessarily. There's a point to that. But your job is to make offers and make a lot of offers, and you make an offer that works for you, not that works for them. All right.
Joe: Now, when it comes to with creative financing, one of the great things I love about lease options, for example, is like I can give the sellers higher prices, but on my terms, it's price, more terms. I'm not talking about that type of thing where we're creating, but it's about making offers that work for us and it's probably not going to work for them. And I think, you know, this all relates to how you're dealing with sellers. We're not chasing sellers. They're coming to us. That makes sense. So the faster the harder you chase sellers, the faster they will run away. Write this down. You need to be the reluctant buyer. The reluctant buyer? Where when you're on the phone with the seller or talking to them or making the offer or whatever like that, you tell them, Listen, this is probably not going to work for you. I totally get it. But with the way we buy properties is this you know, you should probably list this house with an agent. Let me I'm just curious, why haven't you listed with an agent yet? So you play the reluctant, reluctant buyer. You need to draw sellers to you instead of you chasing them and pushing the offers down on them. That's why we become deal finders, not deal creators. Cool. All right. Got a few more things here, and it's important. Let me share the mind map again. It's important that you have good deals to sell. So a lot of times when we become motivated buyers and we get bad deals under contract, they become hard to sell. And then you get frustrated like, Man Joe, you know, I had this property on the market now for couple, three months and nothing's happened. I'm not getting any traction. Well, don't make stupid offers, okay? You've got to learn how to make good offers. I'm glad you're making offers. And sometimes this is how you learn. You learn how to make good offers by making bad offers. So I'm not coming down on your that pat yourself on the back for even making offers, which is awesome. But stop making them after you've done it before, right? Stop making stupid offers. Learn to be brilliant at the basics, which is things that everything I've been talking about here don't become a motivated buyer. And remember for land, for vacant land. And this applies to houses in many ways too, right? But you cannot sell things people don't want to buy. So what do people not want to buy in land? They don't want to buy land locked properties, properties that are in swamps or wetlands or whatever. Properties that don't have a clear title, properties that are overpriced and properties in areas with no demand. So what do you do that I'm about sending a lot of direct mail, Right. Okay. So what if a lead comes in? I'm not going to be going through that list and making sure that every property on there is not land locked, is not in a flood zone or whatever. I'm not going to go through everything on there and make sure that it's clear title before I send the letters. I'm going to send a lot of letters. I'm going to getting a lot of leaks. So and this is a beauty of our system is when they come, that lead comes in, it goes to voicemail. We listen to their voicemail. We research their property, then we send them an offer. So don't send offers to properties that are land locked. And if you did, maybe send it for like $100 or something really ridiculous. If it's in a wetland, you know, look to see or maybe other properties that are in wetlands are selling nearby there. So maybe it's okay, but maybe instead of three months to close, give yourself six months to close or just give the seller an option, make sure the property has a clear title that's still send an offer. But I'm not going to waste a bunch of time trying to get seller to fix that. I'm going to tell them, Hey, when you get this fixed, okay, here is my contract and let me know and I'll just give you a new one with new dates again, that and you become this motivated buyer and then you start trying to push the envelope a little bit so you can't sell overpriced properties if you see everything in the areas selling for, I mean, the cheapest properties in the area that are similar in size to yours are selling for 15 grand. You should try to sell yours for 14 grand. 13 or 14 grand. So what does that mean? Well, that's where you start. So if you see let me get my calculator again here, I we can't see this, but let's say everything is selling for 15 grand. What if you sold yours at 85% of that? So you sold yours for 12,007 50. Now, when we make offers on land, I like to sell. I like to make offers at 25% of that. Right. So I take 12, 750 divided by four times point to five, but I'm going to make an offer 30 $188 share what I did there. So we make offers on land at $0.25 on the dollar, but I'm not basing my first price at the 15 grant. I'm going to base myself, right, because I want to be the cheapest property out there. Right? So I'm going to sell mine for what did I say, 12,007 50 So I take 25% of that, which gets me to 3188. Now the seller told me on their voicemail they only want ten grand. That's okay. You know, I'm still going to send them that offer. I may not text them that offer, but I'm going to email it and I'm gonna send it in the mail to them and I'm going to keep on following up with them until they sell their property. Somebody else. Or die, which doesn't happen or threaten me with the with my life to stop bothering them.
Joe: Okay, real quick. I guess I'm going. I need to hurry up. I hope this is good. Listen, if you like this, please type something in the comments. Let me know. Thank you, Paul. Paul says here. Great content. I appreciate that. I mean, if you like these videos, just comment down below. Make sure you subscribe to my channel and I'd love to do more of these. Okay. So it's important to dig your well before you thirsty start marketing today, even if you don't have a ton of money to get started. Guys, you know, you could sit down and write down write out 20 letters every night while you're watching TV, while you're watching Yellowstone or The Chosen. Hopefully you're watching The Chosen, which is a great show. So start digging your well now before you're thirsty. If you wait till everything's in order and in place, then you're never going to get started. So start marketing today. Don't worry about understanding how to sell the deals yet. Start sending your letters out today. And even if you can't send 500 letters a week, you don't have the money for that yet. Start sending out ten, 20 letters a night. Okay? You can print them on your printer and then hand address the envelopes while you're watching the chosen at night. Start talking now to potential private lenders or people that you know that are wanting to get started in real estate and tell them about what you're doing and think about now. I have a whole lesson on this in my course, but think about some short term business credit cards. There are because when we buy land, we're only buying them for a few thousand dollars and we're only having that money out there for maybe a couple, three months. So you could buy vacant land with business credit cards. Now I want you to pay those things off as soon as possible. But if that's helping you maybe do deals faster, then I want you to really hammer in on that. Okay, cool. Bottom line, real quick, I want to hustle with this. You can do this. All right. I am here for you. If you become a student of mine, we have a Facebook group. We have weekly coaching calls. I just want to encourage you guys, don't ever quit. Don't ever give up. You can do this. You have no excuses. So stop making excuses. Kick yourself in the butt a little bit. I believe in you. And this is a great time to be in this business. This is a great time to be in real estate investing, to flip vacant land or houses. Remember the forums to success mindset number one. You've got to believe that you can do this. Okay. Number two, marketing. We're not in the real estate investing business. We're not in the land business. We're in the marketing business. Understand momentum. You've got to focus at the beginning. It's hard at the beginning, but you've got to push through and build that momentum and then get a mentor. Okay. And if you want more information about how to work with me, possibly even you can, there's two things you can do. Again, go to simple land contract dot com, simple land contract dot com to get the one page contract where you can do your own vacant land deals. And then after you go there, there'll be an invitation to watch a class that I did about how to flip vacant land. If you want to go directly to the class, you already have my contract. Go to simple land class dot com simple land class dot com. All right. Listen, I appreciate you all. Please type in the comments down below if you're watching us on YouTube or Facebook, what you thought of this, if you have any questions, I read those. Subscribe to our YouTube channel. If you're listening to this on the audio podcast, I thank you so much for listening. I really do appreciate you guys as well, especially you all, because you've been with me for so long listening to the audio podcast. So thank you guys. I'll see you later. Take care. Bye bye.