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Yesterday I had the pleasure of giving a talk to a group of 50 local real estate investors in Winnipeg. The subject of the talk was "how to raise capital and take the limits off of your real estate investing career."
In business, raising capital is the #1 skill any real estate investor or entrepreneur needs to be in business. So many entrepreneurs fail because they can’t get funding for their businesses initially or they can’t expand to a profitable level.
While I was giving the talk to the 50 investors in the room, I was shocked by the following:
- 0 people claimed that “Sales and Marketing” was their #1 skill
- 0 people had raised capital for a “no money down” joint venture (1 person may have raised his/her hand, but wasn’t confident so I wasn’t sure)
- 0 people had a “Capital Raising” binder/presentation ready to show to investors
Many of the investors in the room have purchased at least one or more investment properties in the past few years, but were still using their own cash and credit.
Statistically, most seminars have a 2% success rate. In any given room of 100 people , 2 people will apply the knowledge they are learning and 98 will fail to apply anything.
Statistically speaking, out of the 50 people I was speaking to, 1 will apply the knowledge shared, 49 will not.
Yesterday, there were many real estate investors in the room who wanted to take their businesses to the next level. I think most of the audience in the room saw value in learning how to raise capital. Most investors want to use“other people’s money” to purchase investment properties, but many do not know how to do it.
Although, what I was teaching was the "missing piece of the puzzle" for many of the people in the audience:
- 0 people approached me after the event for any for of help or advice.
Perhaps I gave a bad talk.
I did receive numerous compliments on the content and delivery of the speech and I think the audience enjoyed the presentation for both entertainment and content.
More often then not, when I attend a seminar, talk or presentation, I approach the speaker after the event to
- Thank them for speaking and
- inquire about how I can learn what they had to offer (whether I can afford it or not)
My primary objective with attending a seminar, talk or presentation is to learn something and find a way to bring change into my life.
Why don’t we change?
Why don’t we take action?
Why don’t we pursue freedom at all costs?
The answer is simple.
A wise man once said “everything we want is on the other side of fear.”
Some call this invisible wall of fear the “terror-barrier”.
The Terror-Barrier is the only thing that keeps us from having what we want in life.
In my life, the terror barrier has held me back many times, and the only way I could break through it was by getting myself in a “no options” situation.
For change to occur, the pain of staying the same has to be greater than the pain of making a change.
People are mysterious creatures and I find that we are all motivated more by pain than by pleasure.
The average person will go to great lengths to avoid pain but will do very little to achieve joy or pleasure.
There are two decision making centers in the body:
1) The head (The brain)
2) The body (made up of the gut and the heart)
All thoughts pass through the head, but all actions are made through the body.
There are 4 phases of change and only in phase 4 do we achieve freedom.
In phase 1, we have an “old idea” in our head, and our body (who controls the actions) performs the “old actions”.
An example of this would be a person who says: “I’m a smoker” and as a result; he or she smokes regularly.
In phase 2, we get a “new idea” in our head, but our “old idea” co-exists with the "new idea". The body, who controls our actions, still acts on the “old idea”.
An example of this would be a person who says “I’m a smoker, but I’d like to quit” and as a result; they smoke regularly and show no actions that indicate quitting.
We get a “new idea” in our head, and our “old idea” co-exist. The body who controls the actions acts on both the “new idea and the “old idea”.
An example of this person who says “I’m a smoker, I’d like to quit” and as a result; this person will smoke sometimes and quit sometimes.
Phase 4 is where freedom and change happen. However, few people achieve phase 4 of change because they are held back by the Terror-barrier.
The terror-barrier is a fancy way of saying “irrational fear” and the cure for fear is a disciplined, rational approach or "the luxury of no options".
However, I know first hand how hard it is to break through the barrier and in my own life, I have most often penetrated the Terror-barrier against my will.
The Terror-barrier is so strong for most people that they will never change unless they experience a divorce, job loss, large financial loss, bankruptcy, cancer, death or deadly illness.
These catastrophic life experiences push you through the terror barrier because most often “the worst” has already happened.
Once we have experienced "the worst", we become free of fear. We suddenly play the game with nothing to lose.
Usually people in these very uncomfortable situations have “the luxury of no options” and become very successful after failing.
In Phase 4, we achieve freedom. We have a “New idea” in our head and the body, who controls our actions, acts on the “new idea” only.
An example of this would be a person who says “I’m quitting smoking” and as a result, they quit.
Change is never easy, but it’s a necessary process in life.
Einstein used to say “change is the only constant in the universe”.
Learning how to adapt and change ourselves according to the fluctuating conditions of life is the new primary skill set in this modern world.
This skill set is especially valuable in the new economy that we live in today.
In the past, a man or woman could count on having a career from college to retirement. Today, young people change career paths every 4 years or less.
The future does not belong to the fastest, strongest, best looking or smartest. It belongs to those who can change the fastest and re-adapt to surroundings as external change occurs.
In the information age, we experience accelerated change at an unprecedented rate and learning to change will be #1 skill set in the very near future.
Thanks for reading,
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