The Theory of Association

Sep 2nd, 20103 Comments

You become the average of the five people you spend the most time with is the basis of the theory of association. The idea is really simple. If you spend time with people who read books and are successful business individuals, chances are you will read more books and strive harder to be a successful businessperson. If you hang around with people who spend most of their time bowling and drinking beer, chances are your average will go up as well as your weight from all the beer you’ll be consuming. The tape was suggesting that I search out some new friends who were more successful than I was so that I could learn from them and hopefully allow some of their positive characteristics to rub off on me.

The hardest part about the theory of association is the disassociation with individuals who don’t have a positive impact on you. You can still associate with these individuals, but the tape suggested that you put a conscious effort into spending less time with people who have a negative impact in your life. Around this time I took a long hard look at the people I was associating with and determined that I would have to disassociate with almost every person I knew. I found myself with a list of only one friend whom I mentioned earlier in this book. It was my friend Steve from the mortgage business. If the theory of association suggested you become the average of the five people you spend the most time with, then I needed to find four other people to associate with. I decided to accomplish this task by looking for some new friends.

Tools in the Toolbox

Jul 30th, 20101 Comment

When I say tools in the toolbox, I’m referring to all the skills that a real estate investor needs to develop over his or her career. Everything that you learn about this business essentially becomes a tool in the toolbox that you can pull out and use whenever you need it. Some of the things that I consider a tool would be a buy-and-hold strategy to purchase properties. The knowledge about how to acquire a mortgage using lending institutions is an essential tool to fi nance your next moves. Access to the multiple listing service and skills a realtor has are also important to getting things done in this business.

Other tools are construction skills, negotiation skills, communication abilities, management capa- bilities, and QuickBooks experience. Speaking of experience, knowing how a short sale works, a sheriff sale functions, an REO works, a “subject to” gets put together, and wholesaling can be accomplished are all important tools. The point to all of this is don’t let a sector of real estate worth knowing be ignored. Make an effort to learn everything that you can about each one of these sections of doing business. Every time I go to a real estate meeting and I hear somebody talking about something I don’t understand, I always go over and introduce myself. I really don’t like anyone knowing anything I don’t know, and that brings us to our next topic.

Alignment of the Mind

May 30th, 2010643 Comments

I believe that I have the ability to accomplish any task I set my mind to with ease and comfort. I’m not afraid of making a fool of myself or being laughed at if an idea that I have appears funny to some. I have to be confident in my plan to the point that I sound arrogant. I have to be brave enough to throw large deposit checks at a dream that may or may not ever come to fruition. I have to accept that there is a chance that I would lose my down money or end up in a legal battle fighting for it costing me even more cash. I call this type of thinking the alignment of the mind. Much like the way an athlete prepares himself for a big game, you have to prepare yourself to enter the commercial real estate world. As you discuss your plans with your family and friends, my guess is you’re going to experience a lot of negativity and pessimism. I can hear myself arguing with people who care about me, talking about my plans; while I may not have been able to convince them that the plans make sense, I was convincing myself with every comment I made.

I think it’s important to say your plans out loud to whoever will listen, and if you’re in a situation where no one will listen, then say them to yourself. That’s correct. I am saying to talk to yourself. You might find your talking to the most intelligent person in the building anyway. Sometimes an idea in your brain may make sense, but when you try to explain it to someone intelligent, it doesn’t come out so well. So keep saying it until it does. This process will help you come up with a plan that has a great chance of success. Talk it out. When people ask me about real estate, I tell them to go get a pillow. If you get me started talking about real estate, you’d better make yourself comfortable because I’m going to go on for quite a while. Keep telling yourself you can be the best at real estate.  Remember half of all landlords graduated in the bottom half of their class.

I have some other guidelines I try to follow and I would like to share them with you below.

Health:

Drink plenty of water.
Eat breakfast like a king, lunch like a prince, and dinner like a pauper.
Eat more foods that grow on trees and plants and eat less food that is manufactured in plants.
Live with the three E’s—Energy, Enthusiasm, and Empathy
Play more games. I play poker often.
Go to the gym every day; don’t stay longer than an hour.
Read more books.
Sit in silence for at least ten minutes each day.
Take a twenty-minute walk daily.

Personality:

Don’t compare your life to others. You have no idea what their journey is all about.
Don’t have negative thoughts about things you cannot control. Instead invest your energy in the positive present moment.
Don’t take yourself so seriously. No one else does.
Don’t waste your precious energy on gossip.
Dream more while you are awake.
Envy is a waste of time. You already have all you need.
Life is too short to waste time hating anyone.
Make peace with your past so it won’t spoil the present.
No one is in charge of your happiness except you.
Realize that life is a school and you are here to learn. Problems are simply part of the curriculum.
Smile and laugh more.
You don’t have to win every argument. Agree to disagree.
Society:
Call your family often.
Each day give something good to others.
Spend time with people over the age of seventy and under the age of ten.
Try to make at least three people smile each day.
What other people think of you is none of your business.
Your job won’t take care of you when you are sick. Your friends and family will.

Country:
Respect and support the founding fathers of the United States of America.
Support the troops of the United States military.
Support democracies all over the world.
Beware of socialist and communists who want to change the USA.
Own a gun and be prepared to defend your country with your life if necessary.
Defend your freedoms at all cost.
Life:
Do the right thing!
Get rid of anything that isn’t useful, beautiful, or joyful.
However bad a situation is, your brain has the way out if you just use it.
No matter how you feel, get up, dress up, and show up.
The best is yet to come.

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