Alright, today’s email is the 3rd and final in a mini series about creating win-win-wins.
You want to make sure that the seller wins on the deals. Email 1 covered that. You want to make sure that the buyer wins, whether it's a cash buyer or tenant-buyer. That was email 2.
So how do you as the investor win?
First thing’s first: You want to try to get at least $10,000 as an assignment fee or wholesale fee on every single deal you do. $10,000 minimum. When you make your offer, just calculate that in there.
Sure, you can easily make $2k or even $5k, but do better. Expect more. Get more. You’ve gotta make sure you win on these deals. That means making at least $10k per deal, while not spending ALL your time doing deals, working every night and weekend.
Your valuable time is for your family. And you’re worth more than $2k per deal.
This business is all about freedom. If you're in this business, making decent money, but you're not spending any time with your family — you're not going to their baseball games, you're not going to gymnastics, you're not going on vacations or you're glued to your phone when you're at home with your kids or spouse — you’re losing. 🙁
Make sure your family comes first in this business. Don’t be the absentee parent or spouse.
Here’s how you win…
Design a vision for your life first, and then build a business around that.
What do you want your life to look like?
Maybe it's being home every day at 5:00pm, and it's having weekends free, and it's having breakfast with your kids before they go to school. It's going on a date night with your wife once a week. Put all of that in your calendar, and then design a business around that to support it.
See, I wanted this business to create long-term capital wealth for my family. Is $5 grand per deal gonna get me there? It might be nice, sure, but it’s not creating long-term wealth.
If you're already in this business and you're just doing short-term cash flow deals, making a quick $5k… what are you doing with that money? Are you spending it all? Are you thinking about long-term capital wealth? Are you taking some of your profits and reinvesting them into other cash-flowing deals?
You should. Because that’s how you win!
Think long-term capital wealth — don't just think short-term because that's going to bite you in the butt.
Okay, another main reason I like our industry is that I can run it from home or from anywhere in the world. I work remotely. I don't want to be tied to an office and overhead and fixed expenses like renting space.
See, you're going to have months where you make really good money and you're on top of the world and everything you touch turns to gold… and months that aren’t so good because business can get hard. Imagine not ever having to pay rent for an office space. Huge savings.
If you want to win, keep it simple…
Sometimes we want the big business, we want to make the big money. But remember, the more money you make, the smaller your percent net is. The more revenue you make, your profits will go up, but it's not a straight-line dollar-for-dollar increase.
Let's say you're making $500,000 gross revenue a year. You're doing good if your net take home after taxes and overhead is 40%. Once you start getting into the million dollars a year, the net profits that you're taking home and putting into your pocket are going to drop from 40% to 20%. Sometimes, the bigger your business is, doing well means taking just 15% to 20% of it.
So, you’ve got to think about that… it's not like you're going to make 40% the whole way through.
Do well, make money, just make sure your business stays simple. You don't need a bunch of staff, you don't need a bunch of overhead, and if you are bringing on people, consider hiring them on commissions. I have lots of VAs who are great and not expensive.
And finally, as you’re winning, you also want to make sure you have a business that helps people and benefits the community.
Again, here’s how you win: simple business, low overhead, short-term cash flow, build long-term capital wealth, work remotely, time with family, help your community.
Maybe you want to run your business from the beaches of Hawaii. With REI, you can.
This business can give you true freedom.
Work smart and simple. Not hard.