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My good friend Tom Krol is known for taking massive, imperfect action. In your real estate business, the mindset stuff up in your head makes up 85%, and the remaining 15%, if that, is the tactical stuff. Tom’s here to fire you up to stop making excuses and to start taking action, even if it’s not perfect. Tom shares some of the key markers that you see in successful people in this business, like what differentiates a beginner who's doing deals from a beginner who's still struggling.

A lot of people hire coaches to get results. The education you receive is super important, but in the end, what brings in cash is progress, not perfection. The sooner you get out there and test the strategies you learn, the sooner you’ll start making money. Some of the stuff Tom shares here sounds easy, and you might think, Hey, it can’t be this simple. The truth is that this is rock-solid information for anyone looking to make a significant change in their life and business.

Watch and Learn:

Listen and learn:

What’s inside:

  • The difference between beginners who succeed and those who struggle
  • Tom’s key markers to success in real estate
  • When to hire an assistant for your business

Mentioned in this episode:

Download episode transcript in PDF format here…

Joe:   Welcome, everybody. Glad you're here. And this is my good friend, Tom Krol. Tom is really well known for like, massive imperfect action. The mindset stuff up here in your head is like 85% of the business. It's 15% tactical if that, right. Tactical stuff is important. And so I wanted to get Tom on, introduce him to you guys because I want him to fire you up to stop making excuses, right. And start taking massive, imperfect action. But, Tom, will you talk a little bit about what are some of the key markers that you see in successful people in this business, like what differentiates the beginner who's doing deals and the beginner who's still struggling and not doing deals?

Tom:   Yeah, that's what I want to hit you guys with today. You know, a lot of people when you hire Joe and you say, hey, you know, I want this result and you look to him for education sometimes what I want you to look at it from Joe is it's yes, it's the instruction, but it's all about progress, not perfection. Yeah. If you said to me, Tom, all of your most successful clients, the guys and girls who just went on to create millions of dollars of net worth, what were they doing differently? Here is some of the difference is right. They were number one. First and foremost, they adopt an attitude of progress, not perfection. So when I would get on a support call and I would have clients who would say, you know, hey, Tom, I wanted to go out and do this, but I didn't have the right contractor paperwork. So I wanted to wait till this support call until I could do this. And then you have the guys and girls who were like, hey, Tom, the module didn't open up yet and I didn't know what to do. So I just brought a piece of paper with me and I had the seller sign a piece of paper. I'm not sure if I could bring this 100% of the time. If you had to put your money on, who's going to have $1 million a year, it's going to be that guy or girl who goes out and who goes and makes it happen. So let's go through some of those markers, guys. Some of this stuff I'm about to tell you, you're going to say, Tom, it's too easy. It can't be that simple. But I'm telling you, you once I say these things to you, you will see that this is absolute rock solid information. So even though it seems amateurish, I would write it down and I strongly suggest it. If you really want a significant change in your life, these are some of the things to start doing. Number one, first rule I guarantee you that if I asked Joe McCall right now, what book are you reading? He's going to tell me a book he just finished and a book he's about to read in a book he's currently reading. And this is one of the things that you notice with the 1% is reading all the time, no matter what your teacher told you when you were younger, especially if you're an entrepreneur, especially if you're a guy, because it seems to be more popular with the guys and the girls. But whatever you were told about some line of you're a visual learner or an audio learner, it's garbage. It's garbage. I'm telling you, get that lie out of your head right now. If you can read street signs, you can read a book. And I am telling you that if you dedicate to eight pages per day of books, it is going to change your life. I promise you, your brain will literally physically change if you start reading, it's going to give you faster recall. It's going to give you the ability to put ideas together. Reading is so powerful that there is not a dissenting opinion about reading and the power of reading in 2000 years of recorded history. So even though there have been studies, there have been instances where parts of society have stopped other people from learning how to read just because they were so fearful of how powerful it is. It is just as powerful today. What I do in all of my books is I have these tabs that I put in the inside of all my books. I read eight pages per day. You know, read means is something I should take action on. Green is a quote or an interesting fact, something I have to look up. But I'm telling you guys, I am a slow reader, but you can read eight pages a day. This brings me to my next point. Don't pick your own books. You know, there's a lot of rules in business, right? Rule number one revenue in first position. Rule number two is everyone's full of poop. Rule number three is never stop doing what works. Rule number four is never partner when you can hire. Rule number five is only take feedback from five people. Right? The people who love you, the people who pay you, the people who you pay, the people who regulate your industry, and the people who are already where you want to be. Here's the thing about rule number two everyone's full of poop. Sometimes, if you're not careful, a really fancy book that has a new idea. It is total garbage. And what happens is when you read it, it'll pour into you. And it's the wrong book. I won't name any books because I don't like to be negative, so I won't say, but just know this 80% of the books on bookshelves are complete firewood. If you want the books, I actually have a link. It's, coaching inc.com forward slash 21 books I give to my clients who are. It's the 21 books every single entrepreneur should read. So I use it for my coaching clients, who are coaches. But that's a great place to start. And it'sit'sa it's a good book. It's all good books that are absolutely rock solid that you could count on for immediate results. The other. Thing that I would say too, is you have to be a very good steward of money. You have to measure your net worth every single day. One of the things that happens in real estate. People are so focused on cash flow. Cash flow is the fastest way to have a major problem. Or people who struggle financially. They focus on what they can afford per month by what they make. All wealthy people focus on cash flow and net worth. So what I would suggest that you do every Thursday 10:00 in the morning, figure out what your net worth is, especially if you don't want to look at it. Especially if you don't want to look at it. Figure out exactly what it is and measure it. Every Thursday when your brain starts to convert to oh, wait a second, I shouldn't buy. I shouldn't finance a $50,000 car because that's 50% of my net worth. If you have a net worth of 100,000, all of a sudden you're like, okay, this makes a lot of sense. So cash flow is great. Net worth is equally or even slightly more important. Then you want to start making decisions on and on net worth and whatever you measure will do better. Start measuring your net worth every single once a week, and just get in the habit of doing it and making decisions based on how it affects my net worth, just not what I can afford per month. One thing I would make a suggestionon is you want to make a list. This is something you should do tonight. The benefits and the power of this are undeniable and instant. I cannot stress this next point enough. Make a list of 40 good people. Make a list of 40 good people and on your calendar. Write this down every eight weeks but one of their names in the calendar and make sure that you call those people. Hey, Brant Daniels, I was just thinking about you. Hey, Jay. Connor. Over. Mike. Hey, Joe McCall. I just wanted to say hello.

Tom:   And here's what you do with those people every week. It's on a cycle, right? And what you do is you just call them up and you offer. You start. Reciprocity. Reciprocity means don't ask them for anything. Just give to them. Hey, when you when you build this, there's a great book by Robert Childs. It's called Influence. And he talks about reciprocity in the power, the great power, reciprocity. When you start a relationship by giving, instead of asking, guys, I'm telling you, those 40 people, when you want to get something done or do a deal or need help in a deal, or you want to close a deal, or you need a buyer, or you need cash. If you have a list of 40 influential, good, hardworking, honest people and you could just pick up the call, pick up a phone that all the funnels and tunnels and webinars and seminars and courses, they don't make any difference when you have 40 powerful people that you can call. This is one of the main differences between the people who crush it and the people who don't. Is 40 people in a network. And if you are a people pleaser like I am and you struggle with that and you just want to be nice and allow somebody into your circle, it is so dangerous. So if you because if you invite the wrong people, if you're spending time with the wrong people, the right people will see that association. They would not want to spend time with you. Right? Like when I'm out with Joe, Joe's never doing anything that I wouldn't be seen do it ever. Right. That's a key component to this. So if you're with the wrong people and you're thinking, oh, like, I'm just trying to be polite and nice, that's. And you think they're not influencing you? That's like going swimming and trying not to get wet. It's impossible. So avoid the wrong people at all costs. Seek out the right people. If you don't know how to get those right people into your group, read the book influenced by Robert Cialdini. Read the book How to Talk to anyone. I can't think of the author's name. And also Never Eat Alone is another really, really good book. So if you struggle with networking or you're introvert or you're a people pleaser, that's what I would suggest for some really radical and immediate results, guys. Next thing if you want to be blessed financially, tithing is key. I have no hidden agenda here, but so it's there's nothing for sale on that. I'm just that that's just what I got for you. It works. It's God's word is real. All right, so next thing two is whether you are Christian or not. Christian, this. Does it make a difference? All of my top clients, all of them across the board, take off one day a week. Now, I know that there are influential people that you guys are aware of that will preach seven days a week. Da dadadada. Absolutely not. All you have to do is spend time with the OGs, right? That Joe and I get to meet all the time, right? I've become friends with a lot of them. Robert Kiyosaki, Ron LeGrande and, and really amazing people. And I can tell you that you better take off one day a week. You don't earn that. You just get that. So one day a week, take it off completely. If you're a Christian, obviously it talks about the Sabbath. If you're not a Christian. There's a great book by Anne Lamott called Bird by Bird is one of my favorite books. She what? Her exact quote is, everything works better when you unplug it and plug it back in. So including you. So take off one day a week, whatever you do. And you know guys at a deeper level, let me say this. If you say to me, Tom, you know, I've caught so many people. Who were the people who were running a thousand miles an hour? They hit a brick wall or that, you know, or they they're like a shooting star, like Joe. And I know these guys, right? Like they come out of nowhere and they're having massive, massive, massive success, right? Like millions and millions. And then all of a sudden it's like they're not taking a day off like 100% of the time. And one of the things that their priorities are wrong. So if you say like what takes out entrepreneurs, right. Like what takes us out of the game is only about five things, right? It's dead, it's divorce, it's health, it's legal and it's taxes. Right. Those are like the five things. If you had to classify every guy who like or any girl who comes in and then all of a sudden goes out, it's about it falls into that category, right? If you really think about that a little bit more deeply, one thing that you'll start to realize in entrepreneurship, it's such a it's such like a breathing exercise. Right? That's all it really is. It's just like a breathing exercise. If you think about debt, divorce, health, legal and taxes, what really is the problem? It's there's no such thing as time management. There's only priority management. That's all there is. That's all we have. If I you could say anything you want to me, all I have to do is look at what you've done in the past five months, and I'll know everything about you. Right?

Tom:   So just keep in mind, there's no such thing as time management. There's only priority management and all the stuff that takes us out of the game. It's really a question of what are you prioritizing? Hustle is a season, not a lifestyle. This whole idea of like, stay hungry, keep hustling, hustle. No nononononono, absolutely not. You don't keep hustling, Colonel Sanders. That's a warning. That's not an inspiration. Now, look, if you're 55 years old and you've got nothing but a chicken recipe, you better put on a white suit and start going door to door trying to sell that chicken recipe. No doubt. And that should be an inspiration. But the key. The point here is let's not get that 55 with just a chicken recipe. You got to prioritize the right things in life, because for every Colonel Sanders, there's 10,000 people who didn't end up like Colonel Sanders. And you want to you want to start to steer that boat in the right direction. So one thing that I would sort to suggest is prioritize your day. And here is here is a great general way of how your day should be. All of my clients who are successful, here's how their day looks. It's all the same. You wake up in the morning. What's the first rule in business? Revenue in first position. Revenue in first position. That means when you wake up in the morning, what can you do to produce revenue? Revenue means first thing I do is who owes me money. If anybody owes me money and what can I do to get it? Number two is who has agreed to do a deal with me, but they haven't paid me yet. They're like, I need to think about it, right? All that stuff. The other third thing is what activities do I do that directly correlate to revenue? So that's what I work on. In the morning I start my day revenue when my when my workday starts, my workday is revenue in first position. Second thing fulfillment. The people who paid you their hard earned money, the money that you've earned. What are you doing to make sure that you get them? The result that they paid you for, right? No matter what, this is a real estate deal. Whether you sell piggy banks or door hinges or coaching, it doesn't matter. Fulfillment is key. If you said what is the key to it? To a happy to a great life of wealth and success. It's making money and having happy customers. It all comes down to two things money and money coming in and happy clients. If you have that, almost every single problem in your business will be totally solved. The third part of your day. Really simple guys, I'm telling you, I'm going to slow down. Be able to answer these questions, guys. You know, John McCall says is brilliant at the basics. I got that line from him. Right guys? You ready for the big like sat course here? How much money did you make last week? Where did it come from? Where? Wherever it's sitting. How much is it earning? Just I mean, just sometimes, you know, my clients come in, right? And they're expecting some big, fancy thing. And I'll just say I'll ask their bookkeeper like, well, where's this money sitting? And, you know, they'll have like, this big chunk of money like Bank of America at 0.01% when all I'd like. So I'll tell the bookkeeper or the controller or the CFO, I'll say, okay, just move the money from Bank of America to like, Apple savings account. It's 4.75% right now, right? Or just move the money from like Bank of America, from Chase to like to fidelity to invest into turn it every 30 days and T-bills at 5.9% or whatever it is today. You know, I'll get a note back, a handwritten letter. I've handwritten letters. You're a genius. I'm like, okay. I'm like, I can't believe you guys pay me money to tell you. Like, this is so easy peasy, lemon squeezy.

Tom:   So, guys, how much money did you make last week? Right. Where did it come from? Wherever it's sitting. How much is it earning? Whatever you spent it on, how much is it returning? I mean, these are like, just know the answers is simple, you know? Do you have to know a PNL? And yes, you should know. You should be able to, as an entrepreneur, understand how to read a PNL and a cash flow sheet and a balancer. You should absolutely learn it. But if you don't know the answer to those questions with Pal is like, forget it. Don't worry about it, pal. And I know it sounds silly and I'm kind of like joking around about it, but all kidding aside, guys, the amount of pain and suffering that this causes entrepreneurs. You know, when you lose your business, if you're married with children or it affects everyone, it affects you, your family, your community, your clients, your potential clients. It's devastating. One of the things that I can tell all of you right now, especially if you're kind of new to entrepreneurship, rule number four in business, do not partner. If you can hire, do not partner. If you can hire, I can tell you. Joe can tell you. I'm sure I've never spoke to Joe about this that I can remember. But this is one of the most devastating things that you can do to a business. Because. Because the number one predictor of an entrepreneur success is his or her ability to handle pressure. So when you start a new adventure in entrepreneurship, if both of you guys are new, the problem is you don't know how much pressure the other person can take, right? So you might get to $50,000 a month and one person wants to grow and the other person is worried about like exposure and everything else. And now you have two partners that are going to fall apart and end up destroying the whole entire thing. And this is not just this problem. When you have a failure in business, it's not just that it's difficult because you lose time and money. There's also, I call it I know it's funny, but I call it Ed. And Ed is entrepreneurial dysfunction, right? It means like you're so low in the trenches emotionally. Your confidence is damaged. You start to question yourself, avoid all of that, and just know where your money is and where it's going and how much it's earning. And don't partner too soon. By the way, I just want to say I'm not against partners. I have. I honestly have more partners and I even I'm involved in multiple. Either I have a board seat or I'm involved with a lot of businesses. I don't even know the number, right? However, in every single one of those instances, thoseall of those arrangements are with people that I could not have hired. And one thing I would start to adopt is an understanding of money, because I keep using this word success and wealth. And there are they are absolutely opposites on the spectrum. So let me just give you a little context on success and wealth. Success is the internal comparison to your ideal, right? So I am not more successful than you, and you are not more successful than me because there is no comparison I don't like. Maybe you make, you know, $70,000 a year, but you get to spend time with your grandkids every day and you're happy and you're well taken care of. Right. And that could be your definition of success. So success is not a comparison. No one is more successful than you. This is an independent journey. Success is an internal comparison to your ideal wealth. Total opposite wealth is comparative. Either you have more health and wealth and money and cash than I do, or I have more than you. That is wealth. It's comparative. In order for me to be rich, someone has to be poor. In order for you to be healthy, someone has to be not healthy. Wealth means more and better options. That's what it is. It's a it's an actual comparison from the start. Wealth is wealthy. People have more options and those options are better, or people have fewer options. And those options are usually not desirable. So when you're seeking success and wealth, one thing that I would encourage you to do, and I know I'm going really fast because I'm going to slow down. One thing that I would encourage you to do is never, ever, ever sacrifice success for wealth. It's one of the biggest things that you're going to learn in your on your entrepreneurial journey. Every single time you sacrifice your success, your version of success, or you go against your values for wealth or money, every single time you do that, you will learn to regret it. I promise you, this is an absolute fact in business. So success, internal comparison to your ideals, wealth, external comparison to other people. And that can be in money health network guys. Entrepreneurship is it's a it's a great adventure. I mean you know just it's really if you just prioritize the right things. It's super simple. Just don't do anything. You know, if I wouldn't hire you to do it in your business, like, if I wouldn't hire you to do it in my business. Don't hire yourself in your business. Hire a team. Your first hire should be an executive. As soon as you do your first deal.

Joe:   Let's talk about that. You'll talk about hiring an assistant. What's your philosophy? How soon should you hire an assistant? And what do you what do you have them do? Where do you find them? Things like that.

Tom:   Immediately. First deal. Hire an executive assistant. I am telling you, it is a game changer. First of all, 50,000. We'll go from 50,000ft down. I'll go real quick. Best book written for it? For building a relationship on how to is Jen Jones. It's called the CEO Secret Weapon. Jen was Tony's, Tony Robbins, executive assistant. So if you want some insight into the relationship, that's number one. Number two is when you hire them. Hire. Them. Local number three is when you give them tasks to do what the one of the biggest rookie mistakes. And Joe I learned is actually from you. So there's a lot of back and forth because, Joe had me sit down and write out what I was doing every so often on a notepad, so I would keep it with me. And then what I found was I was doing so many things that an executive assistant can do. Like what in the world? Right. So. So, don't invent things that were not this is key, key, key. Sometimes an entrepreneur, when they hire an executive assistant locally, they will start to invent things for this to do because they're like, well, I hired on full time and there's nothing to do. If you do that, you will actually create more work for yourself. So do not do that. Just have them. Believe me, within a week or two, you have a ton of stuff you're doing and there's more than enough work for them to do, I promise. Also, every new hire your first five hires in business, every single one within 90 days should you should see your gross revenue go up about 15 to $25,000 per month. So every time you have an additional hire for in the first 90 days of that hire, 15 to $25,000 per month is what you should start to see by the fourth month. If you're not seeing, it was probably the wrong hire. Also executive assistant. Okay. Absolutely. Must be working. This is true of almost everybody you hire. If you hire somebody who is not working, that is a humongous risk. They're either too entrepreneurial or not working for a reason. Either one is not good. So what I would suggest is right now, every person you hire from this point forward already working 100%, no questions asked. Also with an executive assistant college degree absolute must. What it does is it shows a certain level of follow through, and it also shows a certain level of intelligence, because you do have to have a certain level of intelligence to graduate from college. College is essentially like an employee factory. So when you go to get an employee, go to the factory. That means employees don't go till. I hate to say it that way, but, but it is what it is, right? So, also ona executive assistant, what I would suggest is that they have a QuickBooks background. They should know a little bit about bookkeeping. That's a really huge benefit. And, you know, the. Yeah. And then the other thing, too, is to be sexist is that I normally see that females are better at this than males. In my case, if you take all of my clients and you take all of their eggs practically 100%, it's a female. And one little piece of advice, is your wife or husband is a better judge of character than entrepreneurs are. So, have your wife or husband do the final interview. So kind of like, wind it down to 2 or 3 people. And then, Julie, I've always done this. You're going to be spending a lot of alone time with that person, so you know you'll be traveling with them occasionally. Have your spouse, pick out the final person because you want them to be comfortable, with whoever you decide to hire.

Joe:   So that's really, really good. And we've got to we got to wrap this up. So good. Thanks, Tom. Have a good one, everybody.

Tom:   Bye, guys. Enjoy the day. Thanks, Joe.

Joe:   Bye bye.

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