Believe in the Law of Averages
I read this in a book called Congratulations! You're A Millionaire! by Brian Gotta... and I just wanted to share a bit of this chapter on the Law of Averages with my fellow investors. Happy Readings!
"Keep going until you win. After that, you'll want to go even more and win bigger than before." - John Fuhrman
What's the secret to purchasing real estate success? If you study the top producers in any real estate business, you'll notice they all have one thing in common. Each of them speaks to huge volumes of sellers and make many more offers than those who don't succeed. They understand this is a numbers game, and the more people they talk to about their property, the more yeses they get, plain and simple. They realize that instead of talking to a very few people who they feel are definite yeses, if they instead get in front of a lot of people, regardless of any expressed interest, the law of averages works in their favor.
You may know or currently be associated with someone who is a tremendous real estate investor. He or she may make it look easy, and seem to have been born with the knack. But how do you think "natural" rei got that way? Do you think that in their 1st ever offer they were as good as they are now? No way! They got that way simply through steady practice, trial and error and talking with so many people that they honed their skills as quickly as they possibly could.
In every real estate or sales business there is a quotient or ratio of offers/presentation to sales that rei veteran achieve. For "x" number of presentations done, you can realistically expect "y" number of yeses. When you're new and inexperienced, your ratio may not be quite as high as the ratio of someone who has been around a while, and that's understandable. A better average comes with practice, time and experience just like it does for a baseball player. Whatever the ratio might be in your industry, learn to concentrate your focus on the higher number, the one corresponding to the number of offers you need to do to be successful.
Even though you get paid on the acceptance volume you bring in, your income is still going to be directly proportional to the number of offers/presentations you make. As soon as you understand and work the numbers, much of the anxiety that often comes along with a new rei career decreases. As a result, the level of control you have in your ability to earn increases. As long as you make the offers or do the presentations, and fine-tune your skills along the way, the yeses will follow.
There are several reasons why looking for offers to make instead of looking for yeses is to your advantage. But the first is that doing so makes your business so much easier.
"All things are difficult before they are easy." - Italian Proverb
I am a true believer in evrything that you wrote. I know if I learn one new thing by every transaction my average will go up. I know that if I continuously do the same thing every day my average will go up. I have learned so many little things in the last 15 or so years that looking back they made more of a difference than the big ones.
Here's a question
When do you know that your ambitions far exceeds your talents? And when, or do, you tell someone if this is the case?
At some point in in getting my education, I remember a Professor telling me sometimes firing a person is actually better than making them suffer.
I was also told by another teacher I would not be a good CPA, this was not because of my ability but because of my handwriting. I had to agree and went into Financing. I just couldn't write the numbers that small.