Epic Real Estate Investing - How to Get Off the Emotional Roller Coaster of Real Estate Investing | 518

Episode Date: November 9, 2018

How to keep your emotions in check in real estate investing? Learn how to get over the biggest emotional crisis, where you are now on the Roller Coaster of Real Estate Investing, and how to keep your eyes on the next level, because as Tony Robbins said, "I owe all my success to my ability to control my emotions.” Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey there, welcome to another episode of Financial Freedom Friday. Today we're going to talk about how to get off the emotional rollercoaster of real estate investing. All right, so how do we get off this emotional roller coaster that real estate investing can thrust this in? Because it can be emotional, right? I mean, you can experience all the highs and the winds and the exhilaration up here and then the low, depressing, worry at this moment's down here. all happen in one real estate transaction, let alone your whole business. So we've got to get these emotions under control. And I remember one time I saw Tony Robbins giving a speech and he'd given

credit to all of his success. He'd given it to one factor. And he said, I owe all of my success to my ability to control my emotions. And, you know, he, then he went to explain how he actually does it because he had cited some scientific experiments and some studies. that had said that if your emotions create your motion, why not reverse engineer that and just focus on your emotions and then your emotions will follow and they'll take care of themselves. So if you act all excited, you're going to be excited. So that's why he's on stage and he's doing all this and he's leading the crowd and he's jumping up and down and doing all these crazy things. And he does all of that so he can control his emotions and perform at his peak. So that's not what I'm going to talk about

today. But that's for you. Try it. It works. But I want to get a little bit more grounded and talk about three specific things that you can do to get off this emotional roller coaster. All right? So I think the first thing to do is remember why you got started in real estate investing in the first place. Okay. A lot of times on the on the podcast, at least more than more than once, several times over the last eight, nine years that we've had the podcast. I have said this is not really a real estate show. It's not a real estate investing show. It's a, it's a, a money show disguised as a real estate investing show because I really think real estate is just the best vehicle for investing. And I'll show you why. We call it an ideal investment, okay? An ideal investment.

Okay? So the I, stands for income. Okay? There's two types of income we can create from real estate, active income and passive income. So income is awesome. D stands for deductions. I mean, the whole tax code is built around real estate. It's really the last tax shelter that the average person has access to and can work rather easily without any extraordinary effort. So deductions. It's your biggest expense in life taxes are.

And real estate takes care of a bunch of them just like that, right? The E stands for equity. Equity. And we get equity in a few different ways. If you don't know what equity is, it's the difference between what a property is worth and what you owe on it if there's any debt on it. Okay?

So equity, we can add to equity by building onto a property or increasing its improvements or adding improvements or changing its use. That can all affect equity. Or we can just get really good at negotiating and buy low and buy the equity. The other way we can get equity, is through the A. Appreciation.

Right? Appreciation happens. And just based off the simple law of supply and demand, which we've discussed here many times, appreciation is pretty much guaranteed. Certainly it's going to do this along the way, but it's going to end up 20 years from now. It'll be higher than it is right now.

Because it's higher than it was 20 years before then and 20 years before then, 20 years before then. Just the concept of supply and demand, that's pretty much as close to a crystal ball as you can get with an investment, okay? So appreciation. Then the L stands for leverage. This is where the real wealth-creating power of real estate comes in

because the ability to leverage other people's money inside of your investment with no real extraordinary risk. The way that leverage is available here like it is, and not in any other investment that's available to the average person, huge, big deal right here. So real estate, it's an ideal investment. This is why I got started. I also got started because it has multiple profit centers,

in real estate, right? You've got the, you've got the appreciation, you've got the depreciation, and then you've got amortization, and you've got the cash flow. And all four of those profit centers, they work independently of each other. And when markets are good, all four of them are firing away and you're crushing it. When markets go down or they settle or they adjust, then some might take a hit, but the other two will keep working for you, and they work as a hedge. They work as a hedge against each other. The other hedge that is available through real estate is it hedges inflation, right? Your property, it's never going to be worth zero.

And then the other part I like about real estate is you've got control. You can control this asset like you can't in any other investment opportunity out there. This is the nail in the coffin right here. If this represented 1% of the wealthy, okay, this is 1% of the wealthiest people. people. All right. If you took this pie chart right about to there, this would be 74% of the wealthiest 1%, right? 74% either made their money or preserved their money in real estate. That's what you call a clue. That's what you call statistics. That's what you call facts. That's what you call evidence. real estate. It's the final frontier where the average person has a legitimate shot at creating

real wealth. It's the final frontier where the average person has a legitimate shot at joining the 1%. All righty? So, remember why you got started in the first place. I just shared with you a bunch of different reasons why I got started. Second thing is to keep your emotions in their proper perspective. All right. So we'll call this, let me draw a picture of the actual emotional roller coaster. Okay? Because it's a real thing. This isn't in some thing, some figment of your imagination. This isn't some theory. There's a real emotional roller coaster going on. Okay. And it looks kind of like this. All right. So there's our roller coaster. And on this roller coaster, you're going to hit four pivotal points, four pivotal moments of decision. Another Tony Robbins.

And your moments of decision is where your destiny is shaped, right? You're going to have four of these moments where your destiny is going to be shaped. So this first point is starting right up here, okay? Right up there. And we call this uninformed optimism. I'm going to abbreviate that, okay? Uninformed optimism. It's when you're just getting started.

You're really excited, but there's still a lot of stuff that you don't know that you don't know, and you're super optimistic about this process. And you go ahead and you start moving your way in and, you know, you're getting educated and you're training and you're going out and you're getting in the trenches, you're getting dirty. And then you kind of hit this little point right about, let's say it's right about here. And we call this informed pessimism. Informed pessimism. So now you've got a little information behind you, right?

You've got a little information, you've got a little bit of knowledge, a little bit of experience. You're like, wow, this is a little bit tougher than I thought it was going to be. You're not too sure about the future, right? But you remember why you start in the first place, and so you're going to keep on going because you're not a quitter, right? And then you hit this moment right down here. Let's say it's right about there. And we call this the moment of crisis. Moment of crisis.

And this is the point where, like, most people are like, I had enough. I can't do this. I don't want to take this on. And it's this moment where most people will just continue down the roller coaster and they crash and burn. And they quit. And they go on to the next opportunity. Whether it's the Amazon store or the Shopify store, they're going to go out and, I don't know, whatever it is. They're just going to start their own little lemonade stand, unknowingly, knowing that the emotional roller coaster,

it's over there waiting for them too. All right? So most will crash and burn at this moment. That's what happens. But the few that decide to persevere, they come up here and they keep pushing through and they'll hit this moment over here and we call this informed optimism.

Informed optimism. Where you've got information, you've got some success, you've got lots of results, You can see a light at the end of the tunnel. You're feeling good about things. And now there's nothing that can stop you. You're just going ahead because you get it and you believe it. And it's moving on.

All right? So look at this. This is all in your head. It's not real. Right? We just made this up. But this is the emotions that most real estate investors, everybody that's learning something new, and particularly we're talking about real estate investing,

is going to go through this emotional role. It's going to go through these four pivotal points. This uninformed optimism, this informed pessimism, they hit this moment of crisis, this big moment of decision, and then they go through the informed optimism. That's all in your head. It's all in your imagination. Let's focus on what's really happening though, okay? Let's focus on what's real.

If you go in and you take this right here, this moment where you're, had this uninformed optimist, right here, let's say this green line, this represents. skill okay so your skill if when you're the most optimistic your skill is the lowest and as you press on what's happening is your skill is actually rising that's what's real all right and we hit this moment of crisis when you want to quit this is when at that moment is when your skill is the strongest and if you just keep pushing through through those repetitions they eventually meet up.

So the emotions, that's just what's going on in your head. This is reality. This is what's happening. So keep this in mind. Point out where you are, just identify where you are on this emotional roller coaster. And understand this is where your corresponding skill is. And you just need to keep on pushing through those repetitions. Keep answering the phone.

Keep setting those appointments. Keep presenting those offers. Those are just repetitions. And every time you do that, you move a little bit further on this. roller coaster, the skills, the emotions might get a little bit frustrating, but the skill is rising and increasing and increasing. If you push through, you're going to hit this informed optimism. You see, most people right here, I mean, anyone can do this.

Anyone can do this, right? It seems pretty simple. Anyone can do this. But most people won't. Most people won't. They'll crash and burn right here. And because you know that, there lies your opportunity. There is no competition.

You've got to push through this. dip right here. And if you push through this dip, knowing that most people are going to give up, that's your opportunity. That's where you can really score. All right? So that's step two. One, we got to remember why we started in the first place. Step two, keep our emotions in check in their proper perspective. The third thing, it's time for action, right? It's time for action. So we've got this big picture. We've got that all the big picture all in focus. We're keeping our eye on the prize, but we're going to focus on what's the next step.

And I want you to just focus on what's the next level for you. I want to focus on just getting to that next level, right? So, and it doesn't matter what level you're on in this roller coaster. There's a next level for you. And if you'd like some help with that, just keep your actions really focused and tight. and tight on the next level, okay? And if you'd like some help with that, I set up some questions online that you can go answer and it'll help you identify what level you are. Like, this isn't a cliche, get to your next level. No, this is a real thing. There are six levels of real estate

investing. And if you go and you answer those questions, it's going to tell you which level you're on. And then you're going to push the little submit button. And then right on the other side, you're going to get a prescription of exactly what there is for you to do, these small, focused little actions, what there is for you to focus on, what there is for you to take action on, to get you to your next level, and then once you're the next level, then you can focus on the next prescription and the next prescription and the next prescription. So we want to take that on, be my guest. It's totally free, by the way, and it's what's my next level, guess what a?

com, right? What's my next level. com. Go to what's my next level.com, answer a few questions, and then you'll get your prescription on exactly what there is for you to do to get to your next level. And if you keep this in proper perspective, you'll never have to deal with this emotional roller coaster again, because you know it's all fake. This green line, that's what's real. And that's what's real for you. I'll see you next week on another episode of Financial Freedom Friday. Take care. This podcast is a part of the C-suite radio network. For more top business podcasts, visit

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