Why Masterminds Are The Future of Entrepreneurship

Guest Post by Paul Matthews // paulmatthews324 @ gmail.com

A trend that recently developed since the advent of Facebook paid social traffic was definitely related to online coaching, ranging from personal finance improvement to dating. With a lot of “self-called Gurus” and “Entrepreneurs” who are just trying to sell general, fake courses, true masterminds and mentors are the reason why the entrepreneurship sector is definitely becoming big. 

In a world where fast-paced businesses (mostly online based) are the go-to for entrepreneurs all over the world, having a solid guidance is a must, let’s break down why masterminds are the present and the future of entrepreneurship. 

The Elon Musk Paradigm 

Elon Musk has been heavily criticized recently: with unnecessary expenses within The Boring Company and with the fact that he was forced to resign from TESLA, his figure as a successful entrepreneur and philanthropist definitely dropped. What should be taken into consideration, although, is related to the fact that Musk was one of the first successful entrepreneurs in the Tech industry, betting on the power of new forms of energy and automation. Musk’s paradigm applies pretty much to every single tech company that was founded from 2015 till today: startups are heavily betting on new technologies such as Machine Learning, AI and VR, which is (mostly) due to the above-mentioned paradigm and philosophy. 

Jeff Bezos: The Online Shift 

Whilst Amazon remains the most prolific online business ever, its principles are used by many different businesses, both small and big. We must analyse how Bezos understood supply and created demand, way back when Amazon was no more than a simple online bookstore. We must understand how important the reliability of Bezos’ store is: the number of products available, combined with the easiness of buying and the delivery speed are still the 3 main items anyone (even the ones who are simply running a drop shipping store on Shopify) is taking into consideration. This applies to every kind of business, from fashion to commercial bridging finance. 

The Grant Cardone’s Example 

When it comes to Real Estate investments, Grant Cardone has always been a top player. With over $428 millions in assets sold, Cardone has developed methods and strategies that are proven to work in a quickly-changing environment like the one that real estate is. Cardone recently launched his 10x Growth speaking conference, which is currently touring around the world. 

Being niche focused, Cardone is definitely someone who can be considered as a bright example of how a true mastermind could achieve big results in multiple fields, by applying strategies and, mostly, a successful mindset to his plans. 

Masterminds As Idols 

What truly separates a mastermind from an online coaching scammer, is the fact that masterminds are presenting tangible results from the start, thinking outside the box, without talking for hours instead of going straight to the point. A bright example of the above statement would be related to the infamous Forbes Under 30 list, which is covering a lot of online mentors and TED speakers in various industries. Mike Darlington, CEO of Monstercat, for example, featured in this year’s list, is a phenomenon within the music industry, and his business model has been covered by himself on many different seminars. 

To Conclude 

There’s a big separation between online coaches and masterminds, both from a strictly content related point of view, all the way to the actual results. It’s important to focus on the ones that are respecting the true identity of entrepreneurship: creativity, results and courage.

—————————————————————————————————-

Join Our Mastermind – The W2 Capitalist

The W2 Capitalist is designed to help men and women level up their real estate investing success while working a fulfilling and successful W2 job. As a member of this elite mastermind, you’ll have access to like minded individuals coming together to collectively help you achieve your goals.  Not ready yet? Put yourself on our Wait List.

—————————————————————————————————-

Guest Post Bio: Paul Matthews // paulmatthews324 @ gmail.com

Paul Matthews is a Manchester based business writer who writes in order to better inform business owners on how to run a successful business. You can usually find him at the local library or browsing Forbes’ latest pieces.

Advertisement

I Have $10k to Invest in Real Estate. Where Do I Begin?

One of the more common questions I see or hear. “I don’t have a lot of money and by that I mean, I have approx. $10k and I want to invest in Real Estate. Where do I begin?” Some people will tell you to wait until you have more money, $100k even. I’m not that patient and I see how our net worth has exponentially grown since purchasing our first buy and hold property. So what do you do?

First…You give it all to me! Bwhahahaha, BWhahahahAA, BWHAHAHAHA <- my attempt at an evil laugh (think Dr. Evil / Austin Powers).

Seriously, first, you have to decide what type of investor you want to be. There are many ways to invest in real estate (flipping, wholesaling, buy & hold, notes, etc.). For the sake of this post, we’re going to focus on Buy & Hold, because, quite simply, I focus on buy & hold :).  Here are a few options to get started in Buy & Hold REI if you have just $10k to invest:

REI Strategies. Lessons Learned. How-Tos. No Spam…Learn More. 

Option 1 : FHA a Small MFR

Find a small multi-family (2-4 units) and get approved for a FHA loan. At the time this article originally published, down payment requirements are 3.5%, as long as you meet the criteria (i.e. you have to live in one of the units for a certain period of time). At 3.5% down payment you can purchase a $100,000 property and still have money to pay all closing costs. This is also known as House Hacking.

Option 2 : Buy an Inexpensive SFR

To obtain a conventional loan for an investment property typically requires 20-25% down payment. With only $10k to invest you will target a $50k single family residence, however, banks typically won’t provide a mortgage for less than $50k. With a $10k down payment, loan would be for $40k and if you find a lender willing to do this, please send me their contact info (I’m at jay@helmsREI.com). But if you can convince the seller to owner finance 10% on a 2nd position mortgage (or seller carry back), then your $10k is now 10% of the down payment, meaning your now looking at properties with a price of $100k. Which leads me to Option 3…

Option 3 – Buy a Property with Owner Financing

One of the best strategies to leverage your money!  In this scenario the seller becomes the bank or provides part of your down payment by what’s called a seller carry back. Best case scenario is the seller owns the property outright and y’all come to terms. No silver bullet here in deal structure, just up to you and the seller to create a win-win scenario using whatever terms y’all agree to. Always have a lawyer review these terms and represent you at closing.

Screen Shot 2018-02-05 at 4.00.05 PM

Option 4 – Partnership

Partnerships are great and here again there is no silver bullet to structure them. Find a deal that meets all of your criteria and find a partner or partners to make it happen.

We did this when we Purchased Our First Apartment Complex. We had $25k to invest and needed THREE HUNDRED THIRTY THOUSAND to close. Partnerships made it happen.

Speaking of, Option 4B is partner with someone on a larger multi-family. When we were raising money for our apartment complex, we had a minimum investment of $25k. But if you and 4 of your buddies each had $10k to invest, bringing $50k of capital to the table, I would certainly take a hard look at it.

So if you want to invest and you think “I don’t have that much money”, there are options. You just have to be creative. Happy to talk through any of these with you. I’m at jay@helmsREI.com or 850-610-0966.

Related Articles

Winning: The Real Life Game of Monopoly

Primarily because no one wanted these low-end properties and all I saw was an inexpensive way for a chance to build my portfolio. 
____________________________________________________________
real estate investing pensacola fl

 

Growing up, one of the board games I played as a child was Monopoly. As we navigate deeper into our Pensacola real estate investing, I’m reminded of those days around the dining room table and think how similar the Monopoly game is to real life investing.

Due to its luxurious nature, I always wanted Boardwalk & Park Place. I knew having a hotel on either of these properties would surely increase my bank roll from any visitor. Here in Pensacola, I correlate that to the high-rise condo on the beach or historic home in East Hill.

real estate investing pensacola fl
Only a lucky roll would push you through my corner rent free!

 

I also couldn’t stay away from Mediterranean & Baltic Avenues. Primarily because no one wanted these low-end properties, but also because I thought this was an inexpensive way for a chance to build my bank from frequent visitors (plenty of places in west Pensacola fit this model).

REI Strategies. Lessons Learned. How-Tos. No Spam…Learn More.

Needless to say, I hardly won the game unless others just wanted to quit due to boredom 🙂  In the game of real life investing, I hardly see where this is the case. My strategy for the childhood game was a slow and steady approach that required a lot of luck. This strategy didn’t produce a lot of winning and comparing to investing today, I realize I learned several valuable lessons playing the game. Maybe its time to break it out again! As I thought about this correlation more, I turned once again to good ol’ Google magic. I stumbled upon a site that really geeks out over the strategy of winning @ the monopoly game. Using our current strategy for buy & hold as a comparative to the game of monopoly, I can see where we are winning @ the game of real estate investing. It is not about the luxurious condo on Pensacola Beach, nor is it about the slums in West Pensacola (done correctly, both of these have their upsides). But the best ROI, winning formula lies in the middle (reference heat map below) of three houses on St. James, Tennessee, and New York and three houses on Kentucky, Indiana, & Illinois. For most of our current positions we’re in that sweet spot. Our others, we’re not too far from it. We buy & hold strictly sticking to several criteria using conservative #s. Using these criteria and with planned exit strategy’s already in place, we’re winning.

Screen Shot 2018-02-05 at 4.00.05 PM

Thanks to the creators of http://www.amnesta.net/monopoly/ for putting their site together and bringing back some fond childhood memories. The below screenshot is from their site, showing a heat map of the best investment and ROI for the monopoly game.

real estate investing pensacola fl

 

Related Posts:

 

#REI  #RealEstateInvesting #HelmsREI

Advantages of Selling Your Home to a Real Estate Investor

Selling your home to an investor is a relatively straightforward process in most cases. There are basically four types of investors: (1) buy & hold investor, (2) wholesaler, (3) flipper, and (4) the buy/flip/hold investor. In the Pensacola, FL and Cantonment, FL markets we serve, we apply a strategy of buy & hold and buy/flip/hold.
____________________________________________________
real estate investing pensacola fl

First things first…you are more than likely going to be offended by the initial offer you receive from an investor. Chances are they don’t know you, they don’t know the emotional memories you’ve made in that property and quite frankly, that’s not what the investor is buying. If they are a good investor, they have a specific investment strategy and mathematical formulas to support that investing strategy. The offer you receive on your property is just what comes out the other end of their formula. In most cases, as when we make offers, it is not meant to be an insult or devalue the memories you made in that home, it is simply the answer to an equation that makes that investment work for us (the investor). On your side of the deal, you more than likely have a property that is in disrepair and don’t want the hassle of making repairs that are traditionally required when using a Realtor. The investor is there to solve your problem: help you get rid of the house quickly.

Let me step back for a minute. There are basically 4 types of investors:

Buy & Hold Investors: simply put this type of an investor wants to purchase rental properties. They may manage their properties themselves (as we do currently) or outsource the management of these properties to a Property Management Company, but this type of investor wants to grow their real estate portfolio.

REI Strategies. Lessons Learned. How-Tos. No Spam…Learn More.

Wholesaler: this type of investor has no desire to hold your property for long term, even short term really. Complicated concept to grasp, but this investor may only own your property for 10 minutes and then turn around and sale it to one of the other investor types discussed here. These guys obtain the best deals on properties and while we don’t wholesale, we will link sellers to other investors if the deal isn’t right for us.

Flippers: you’ve seen the reality shows on TV. These guys buy the worst house on the block for cheap, demo it down to the studs, move some walls, update everything they can and then hopefully sell a modernized home for profit.

Buy/Flip/Hold: this is a combo of Buy & Hold and Flipper Investors and where we tend to find our sweet spot. This is typically a distressed property that the owner has let go due to financial strain, divorce, foreclosure, job relocation, or inheritance. This type of investor buys distressed properties, flips them, but holds onto them and turns them into rentals.

Many investors do a combo of flips, rentals, or Buy/Flip/Hold, while some focus on just one area and others do all. How much the investor is willing to pay depends on a number of factors, including the specifics of your house and the market conditions of the area.If you list your house for sale, investors may come to you, especially if you use the words “fixer upper, handyman special, or needs TLC” in the listing description. Even if you don’t list your house for sale, there is a chance investors may come to you. If you have a home in Pensacola and surrounding areas, there is a possibility you’ve received one our cards or letters in the mail. Don’t worry, all the information obtained about your property is public record and savvy investors know how to obtain this info. You don’t have to wait for an investor to decide to contact you, though. You can reach out to investors in your area, like us in Pensacola – hint hint :). There are both companies and individuals who will come to inspect your home. They will look around, check out the comparable homes and their value, and potentially make you an offer if it fits within their buying criteria and investment strategy.

Again, don’t be surprised if the offer an investor makes to you is considerably lower than what you were hoping to get for your home. That’s one of the downsides to selling your home to an investor. You often have to take less. After all, an investor isn’t looking to find their dream home. They are looking to make money, and they can’t make a profit if they pay too much for the homes they buy. Sometimes offers are very low, at around 1/2 of the value of your home. Other investors will be more fair with the value. A lot of that depends on how the investor plans to use the home (flip or rental), and whether the value of other homes in the area is going up or down. Market conditions always play a factor, as does the work that is needed on your home.

Screen Shot 2018-02-05 at 4.00.05 PM

Two BIG advantages to selling your home to an investor: (1) quick sale for cash and (2) no repairs needed.

Quick Sale for Cash: Investors don’t typically need to go out and get a mortgage, and you won’t be anxiously waiting for the bank to decide whether your buyer can get a loan. They typically pay cash, and because they don’t need a mortgage they can close the transaction much faster than a more standard buyer. Generally, closing is less than 30 days for an investor, and it can be within just a couple of weeks in a lot of cases. By keeping that in mind, you can decide whether the fast sale is worth the lower price you may have to accept. Depending on your specific circumstances, selling your Pensacola, FL or Cantonment, FL area home to an investor may be just the right choice for you.

No Repairs Needed: Unlike a buyer finding their dream home and wanting it to be in perfect, move-in ready condition, investors won’t ask to have repairs performed on your property. In fact, the more work needed, the better. Just realize this is one of those factors that affects the offer you’ll receive from an investor.

I have unintentionally offended a lot of people, but now that you know it’s all about a math formula and helping you get rid of that unwanted property. If you have a Pensacola area property you want to sell to an investor, Contact us today!

Related Posts:

 

#REI  #RealEstateInvesting #HelmsREI