July 26, 2023 • 33 mins
Massively Increase Your Net Operating Income™ with The TCO Method™
Andy digs into the importance of having a coach or mentor to help you develop and improve your performance for the benefit of both your life and business, but also discusses vetting those people properly. Social media is a powerful tool, but the risk of it being smoke & mirrors is real.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
[Music]
(00:24):
Welcome to the TCO Method, the only show focused on helping you massively increase your
net operating income. I am Andy McQuade and thank you so much for tuning in to this episode of the
program. Today I want to talk about consultants and coaches and mentors. Oh my. In case you haven't noticed,
(00:47):
there's a lot of them in real estate. In case you also haven't noticed,
there's a lot of them out there who aren't qualified to do what they're doing. I have to apologize.
This episode, I'm going to try to keep it to 30 minutes and it's near and dear to my heart just
(01:09):
because I am a consultant for real estate and for other things, but I'm a consultant mostly for real
estate for the last four plus years. I also have to apologize, changed some software settings in my
recording software so this episode might sound a little different trying to fix some issues that I
(01:30):
hear in the audio that maybe you guys don't you can let me know. But the Tuesday episodes, now the
Wednesday episode just for this week, it is what it is. All right, so consultants and coaches and mentors
are my. It's a tough one because not a lot of people know what the differences are, not a lot of people
(01:55):
have experience with all three as separate things. And quite frankly, there's a lot of smoking mirrors
out there on especially on Instagram, some on Twitter, but mostly like Instagram, Facebook,
any place they can flash pretty pictures of their cars, their beach houses in Florida,
(02:17):
like all the stuff that real estate got them. I question the motives and the ability of anybody who
leads with, look at all this great stuff I've got from my XYZ. Like that's cool, but is it really from
(02:37):
this or is it not? Fire beware when working with Instagram and Twitter coaches and mentors that are
out there pushing their product, leading with either, here's all the cool stuff I've got or
leading with Jesus is great and he saved me. I have no problem with religion. I'm Roman Catholic,
(02:59):
Irish Roman Catholic, okay, but if you have to sell your product by leading with, hey, look at me,
Jesus is awesome, God is great. I don't think your products that good. Whatever it is, you're selling
should be able to stand on its own without needing people to buy it from you as you thump your
(03:21):
Bible and flex and say, look at me, I'm an awesome person. Pretty sure that there's something in the
Bible about humility and I don't know, knocking over some merchants tables in a temple where it doesn't
belong, just throwing it out there. Anyway, so the other thing with the flashing glitz and glamour
(03:44):
again is if you're selling the final product, you're appealing to people's most base instinct,
which is greed and maybe envy, maybe keeping up with the Joneses, you're literally having people
compare themselves to you. Again, probably not the ideal type of person to seek out for coaching,
(04:12):
mentoring, whatever. And then there's the third type, which is the super pushy,
eye pressure used car salesman approach, which is a complete turnoff for me. I don't know if it's
a complete turnoff for everybody else out there. There's a lot of people, right? PT Barnum, there's
(04:33):
a sucker born every day, the super pushy clothes now do this now generally speaking, they're super
pushy because if people have time to do research and really dig into what it is they're talking about,
(04:55):
their product sucks or they're a shady scammer. And they're trying to get you to commit to something
because they know if you do any type of due diligence, they won't be getting your money later.
And why am I talking about this on the TCO method? Well, for one, in case you haven't noticed
and I may have mentioned this already, there's a lot of real estate,
(05:21):
coaches and mentors out there selling masterminds and masterclasses and
coaching and mentoring and seminars and webinars and not just not even getting into the like
6,000 different capital, razor, syndicate or GP LP conversations that are happening in social
(05:48):
media. Invest passively do no work, earn, get all these cool deductions on your taxes. Yeah, no.
Conversation for another day, but again, like anything else, there's ethical syndicators and there's
unethical syndicators. There are strong operators and there are really shitty operators who have
no idea what they're doing due diligence matters, not just in your real estate before I get into
(06:16):
consultants and coaches and mentors, oh my, let's define the difference between
a mastermind, a masterclass, a seminar and whatever because there's a ton of those going around.
So there's a lot of these quote unquote masterminds out there, a mastermind, a mastermind
(06:39):
to be the most effective and useful and to stick true to the actual definition of what a mastermind
was when it was published in Think and Grow Rich by Napoleon Hill was like four to six people,
all peers, meaning all managers, all CEOs, all directors, all whatever,
(07:03):
who are seeking to grow and improve beyond whatever place they are in their business.
And I've seen two different mindsets, one is you can't have any two people in that group in competition
(07:25):
with each other and the other side is it doesn't matter who's there as long as they're all on the same
journey and doing the same thing. So I'm good with either way, like that's a mastermind.
Now you can have a facilitator for a mastermind who's doing the organizing and providing the software
and support and maybe materials and taking the time to book the place where you're going to go and
(07:49):
ordering the food and doing all that kind of stuff, right? That's okay. As long as they're in the hot seat too.
And if you don't know what the mastermind hot seat is, Google it, I'm not getting into it. This is not
a thing about masterminds. If it's all six people who are involved, including the facilitator,
all have the same amount of skin in the game, they're all doing the same thing, they're all
(08:12):
getting in the hot seat, they're all trying to improve and get better. I don't see an issue with it.
The whole thing about being in competition, it makes sense in certain cases because of trade secrets
and whatever. In real estate, I really don't think that it matters for two reasons. One is there's
basically unlimited opportunity in real estate. It's a blue ocean thing. There's no scarcity in real estate.
(08:32):
It's hard to close deals right now. Yes, I get it because people are sitting on stuff and whatever.
They're scarcity in competition there, but there's enough to go around. That's a mastermind.
A mastermind is not 50 to 300 people in a room listening to a speaker talk about how his mastermind is
awesome and then selling a $30,000 course. That's not a mastermind. That's either a seminar or a masterclass.
(09:00):
If it's just a dude talking and it's just him, there's not a lot of things going on. It's probably a seminar
or a really bad sales pitch. That's the two places I would put that. If it's a masterclass,
usually there's multiple different presenters, multiple different speakers. They break up into
smaller groups throughout the day. It could be like a one day thing or a morning thing or an afternoon,
(09:25):
but there's usually smaller, more functional groups and they work on specific topics and tasks to
bring things to light and make people think about things in a different way.
Probably again, so they can sell their course. Anyway, I have nothing against selling courses. I'm
working on my own. However, I'm not trying to teach people how to become millionaires in real estate.
(09:47):
I'm just taking people who want to make more money in real estate who are already in real estate,
help them set things up correctly so they can make more money that way. Just remember,
93% of people who go through real estate, coaching and mentoring, high ticket,
stuff like we're talking 10 to 30 grand, never actually achieve anything from those courses.
(10:15):
I'm going to say also that 90% of the time, it's because they think they're going to spend
this money and whoever they're spending the money with is going to drag them across the finish line.
Not the case. Okay? All right. Enough about that. So, mastermind, four to six people,
(10:36):
everybody doing the same thing, even the facilitator. Masterclass, a real masterclass is probably
10 to 25 people with a facilitator speaker who's actually teaching and educating. That's a masterclass.
(10:57):
A seminar is several hundred people in a room listening to a dude talk. Even if there's multiple
speakers, maybe if there's multiple speakers and there's several hundred people in a room learning,
maybe that's a conference. Consultants and coaches and mentors, oh my, real estate is littered with them.
Less so on the consulting side. I've noticed a lot fewer people out there advertising
(11:19):
themselves as consultants than as coaches or mentors. And so we're going to define what those three
things are. A consultant in or out of real estate is someone who has a certain set of knowledge and
skills that they bring to the table to fill in gaps or help an organization or an individual
(11:47):
achieve a goal or fix a problem or gain insight into their operation or whatever it may be.
There's a bunch of things consultants do, but there's some very clear cut roles that they take.
They're 1099s, so they're externals, they're not internal employees. They have to be or should be
(12:10):
objective. They should not be selling products or secondary services because they're not
consultants then. They're salespeople. They may be using consultative sales, but they're salespeople.
They have a financial agenda beyond just getting paid their consulting fee. They usually have a time
(12:33):
limited set of tasks that they execute for the customer or with the customer with the client
to achieve certain milestones or goals or objectives or to uncover certain information. Now this
goes into is this like research, strategy, operational management. There's a bunch of different
(12:56):
consulting buckets. And you can really break them down into multiple different verticals, but it's
not important. Consultants are externals that come in to help with a task and they finish that task
and they disengage and they leave. That's what a consultant is. A coach is similar to a consultant,
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but they're a little bit more, I'll call it interactive probably, and it tends to be small groups
or individuals that are looking to improve on certain aspects of their performance,
whether it's personal developmental performance for work, so professional, or something else.
(13:43):
But they come in to work with people, right, to coach people, to help them achieve a goal,
help them correct a problem, help them develop professionally and overcome. There's a bunch of
different coaching strategies out there for different roles and different functions. In real estate,
(14:07):
coaches are out there pushing their services. I mean, it's usually to bring people in who are
new to real estate and educate them and give them information and knowledge so they can do whatever
it is they want to do first. So there's coaches out there teaching, whole sailing, there's coaches
(14:29):
out there teaching, house flipping, there's coaches out there teaching, syndication, there's coaches
out there teaching, property management, there's coaches out there teaching, whatever.
If you know you have a desire to do something in real estate, finding a coach can be really,
(14:50):
really good for you. You need to vet them. Again, be aware of the people who are advertising
their coaching services and leading with Jesus or leading with all the cool stuff that they've purchased,
the bling, the keeping up with the Joneses, the Instagram pictures on the beach.
(15:11):
The people who lead with that are the people you need to dig into the most,
to verify their reputation and that they actually know what they're doing, that they actually have a
track record. The other side of that for coaches is now suddenly there's all these coaching networks
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and coaching certifications out there. I'm seeing 25-year-old people, nothing against 25-year-olds
and can be very accomplished at 25. I had already run a store and was running a $8 million sales team
at 25, but coaches out there who've never actually worked a job outside of Starbucks who are
(16:01):
creating these businesses online, creating their own coaching and mentoring certification programs,
certifying themselves in it and then telling it. Yeah, no, that's not actually a certification.
That's what we call a scam, okay people. You're taking somebody who's never worked a real job
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and never actually delivered results for anybody and you're letting them teach you how to coach when
they've never coached anything. You're literally taking a red shirt freshman
and you're putting them in as an NFL offensive line coach.
They've never played the game where it really counts. They know the rules,
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they know some of the information and the knowledge and the tactics and maybe a little bit of strategy,
but are they really qualified to coach for the NFL? I don't think so.
Hopefully you don't either and yet these people are somehow selling these certifications and coaches.
(17:08):
Look at me, I'm a certified coach. It's freaking meaningless. No one cares that you're a certified
coach because the certification was made up by some MBA college grad who's never had a real job.
Never let a team, never done anything important, never driven success for people.
Like, raw, raw, great. You can talk a good game, but can you actually deliver?
(17:34):
Like, hopefully your coach that you hire actually knows what they're doing because they've done it
or they're currently doing it. Don't hire a coach who doesn't do it full time.
If you're going to find a coach or a mentor,
find a coach or mentor whose full-time job is whatever they're trying to teach you.
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Okay, that's when you'll get your money's worth. If they have to live on the proceeds and
support themselves and their families on the proceeds of their ability to deliver results
in that job and that job is what they're coaching you in, go for it. All the certifications on
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coaching in the world mean jack squat compared to real world experience bringing it to the table
and educating people so they don't have to go through the school of hard knocks that the other
guys did. Everybody has a horror story about their first investment.
Hire the right coach. And why am I talking about coaching and mentoring on the TCO method?
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Number one, because there's a billion really crappy real estate ex operators or current operators
who decided real estate is hard and they can probably have a better time with it and do more
and make more money by bringing in suckers to coach, mentor, master class, mastermind, whatever.
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They decided that that's the way they're going to make their money because the other stuff is too
hard. But that also means that they're probably not the best at what they do. So is that really the
person you want to spend money with to enhance your performance or worse yet, they're working
(19:31):
at W2 as a IT consultant or a help center associate or target Walmart. They have like two rental properties
and they're selling coaching and mentoring services to supplement their income while they still work at W2.
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I'm sorry if your real estate investing cannot pay for your lifestyle, you are not qualified to be a coach.
The end, that's it. I don't care about what the excuses are about all I want my benefits, all I
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want my 401k, all I want my retirement, blah, blah, blah, blah, blah, blah, blah. It is what it is.
You need to be able to pay the bills and have a track record of success full time
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before you start coaching and mentoring and training people on how they can run a business full time to
create freedom and make money for themselves and their families. If you've never done it, you are not
qualified to teach it. The end, Wow, I'm getting rough today. Sorry, everybody.
(21:03):
Okay, so pick your coaches wisely. Coaches are super important. Everybody should have a coach or a mentor
at whatever part they are in in their careers and no, books, podcasts, they're not mentors or coaches.
Okay, their books and podcasts, they're meant to motivate you, inform you, inspire you, add some value,
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but they're not holding you accountable. So they're not coaches. Be very clear that coaches are
supposed to be holding you accountable for stuff. But again, if these coaches can't keep people on
their teams, can't keep people employed, constantly making posts about all these people they're hiring
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into their organization and those people ask for three weeks and leave, there's probably a reason for
it. There's also a reason why they do the high pressure, I touch, oh my god, the world is on fire,
you must do this now or you're going to be a failure for the rest of your life. High pressure
sales means there's something about what they're doing that should raise questions in your mind.
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So you need a coach to move on and develop and overcome wherever you're at, whether it's accountability
related, whether it's skills related, whether it's professional development, whether it's personal
whatever, get a coach. Therapy is not a coach. If you're in therapy for whatever, I don't care what it is,
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what kind of therapy, none of my business therapy is not a coach, get a coach, vet them. Well, how do I vet
them? There's a lot of ways. I've already talked about them. Are they W2 employees still?
Or are they doing what you want to do and have a proven track record of overcoming what you want to
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overcome? Check their reputation, check their social media. See if they're pushy.
If you're getting hit with a used car salesman pitch, you should walk away from the table.
If there's a sudden, we got to start this today, $2500, you're going to suck if you don't do this. Yeah,
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now that's not actually how that works. Sorry, pal. I'm good. If they're bringing value to the table,
they will wait for you to come to them. Good coaches should have a list of people that they've coached
and it shouldn't just be fanboys that they're paying referral fees or something too. They should be
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legitimate people that they've coached in the past who've been able to achieve stuff.
And it shouldn't be people they've just signed on with. It should be people who've been able to
apply whatever they were being coached on to become more successful in whatever it is they were working on.
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And finally, coaches have a job you're paying them. Consultants have a job you're paying them.
They're team members. Mentors may not want to be paid. Maybe you just buy them lunch. Maybe you buy
them breakfast. Some mentors want to be paid, but then it's more like coaching in my opinion.
Like a mentor is someone more experienced than you who is verifiably where you want to be.
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In the future. Hopefully your values and your ways of doing business in your ethics align.
Because you want to be able to trust your mentors. You want to be able to trust your coaches and
your consultants too, but a mentor, there's probably no contract. There's probably no
no money changing hands if there is it's favors and barter and buying breakfast or lunch or dinner
(25:08):
for them when they're spending time with you. But your mentor should be where you want to be.
And the whole point of bringing a mentor into your business is that they've already experienced
the stuff that you're going to go through and they can help you to avoid plan around and mitigate
(25:32):
all the pitfalls and BS that go into it. How does this tie into the TCO method? Well, it's partially
who's on your team. It's partially your performance will influence the performance of your business.
And it's also real estate's freaking full of it, man. And I just I hate seeing these scumbags
(25:58):
who just lie through their teeth and smoke and mirrors their way to coaching and masterclassing
and all this other stuff with zero track record of success. People who made their money through
crypto and then like flipped a couple houses and did a couple things and then immediately started
(26:19):
selling coaching. Like I have an ethical problem with that because you're showing all this cool stuff
on Instagram and you're you're showing all this neat all these neat toys and all this other blingy
stuff and look at this house that we did look at this house that we did. Yeah, but all the money that
(26:39):
you show that you were making quote unquote if you're not on YouTube air quotes right now. You made
the money through $67,000 Bitcoin that you just happened to sell at the right time like you didn't
actually do real estate to earn your fortune. You just got lucky and made a bunch of money.
(27:05):
Okay, it's not luck opportunity and and preparation me. It's not really luck. If you're a crypto bro,
I apologize. I'm not trying to hurt your feelings. But there is legitimately somebody right now.
Who I know just got national attention on a bigger pocket's podcast that made all their money
through crypto tried to show that it was through real estate and it's not like it is now because guess
(27:35):
what? Like crypto is not worth $67,000 or Bitcoin is not worth $67,000 each anymore but it's a high
pressure used car salesman push for their coaching and mentoring program. That says all I need to know.
I'm sorry. It just is good. Anya, whatever takes all kinds in this business.
(27:58):
So your mentor probably doesn't want money. Probably doesn't want
really much of anything other than somebody to talk to and help mentors are a weird a weird breed
because they want to come in and help you do better. Maybe they want to do some deals with you. Maybe
(28:20):
they want to invest in some of the things that you're working on and helping you make money with.
But hopefully they got where they are and you're looking to
do the same thing so you can end up in the same place. But maybe with less bumps in the road.
(28:43):
That's the reason you bring in a mentor. They've already lived it. Like some coaches and stuff can
do that, right? You hire a flipping coach. They flipped 50 or 60 houses. They can probably tell you
what the pitfalls are, how to plan for stuff, how to budget for this, how to manage your crews,
how to schedule, how to run your operations. They're probably really good at it. If they've done by
(29:08):
their 50th or 60th flip, if they're actually involved in it, they probably know what they're talking
about. Same thing with property managers, same thing with whatever, whatever you're looking to get
better at. But you're like a consultant, you're hiring them for a finite period of time to teach you
a certain thing. And the money you put in will be what you get out as long as you pre-veth them
(29:32):
and they're qualified to do the work. Everything else is subject to some creative smoking mirrors that
people throw out there. Like there's people out there selling coaching saying that they're going to be
a mentor. Your mentor is going to call you, ask you how you're doing, help you hold your
(29:54):
self accountable, hold you accountable, discuss how it's impacting your family life, ask asking more
questions than providing answers is probably the hallmark of a good mentor. Because they're going
to be in it with you, not because there's a financial, fiduciary relationship set up where they're
(30:21):
responsible for your success. You need to be responsible for your success.
Them holding you accountable will help you get there. But typically they're there
in communicating with you regularly and mentoring you so that you don't have to go through the same
crap they went through to get where they are. You should have a mentor, not everybody does.
(30:46):
Everybody should have a coach or a mentor or both. It never hurts to get better at something.
But again, back to how much is your time worth? Focus on your strengths. Use those strengths to
scale, build a team around your weaknesses so that you don't have to know and do everything yourself.
(31:08):
That's how you're going to become successful in real estate.
Doesn't matter whether you're doing commercial multi-family as a director, as a vice president,
EVP, sea level, your team needs to cover the gaps in your skill set so that you can do business
(31:31):
successfully. If you're an owner, operator, good-on-ya, but look in the mirror, how are you going to scale
doing everything yourself? Because you're not going to do it all right and you're definitely not
going to be the most skilled at everything you need to do. Figure it out. Your mentor, your coach,
(31:52):
a consultant, and help you get to the next level, help you prepare to scale, help you do all this
stuff. But only if they're actually qualified to do that. They need to know what they're doing
and be vetted and have a reputation. Real estate is a very small world. If you're a shyster,
you're going to burn bridges really fast, even if you get on bigger pockets, just say it.
(32:18):
Anyway, that's all I got time for today. Thank you so much for listening. I apologize for this being
late. I want you to have a great rest of the week. Go do real estate. One networking event a week is
the rule. Make it happen. Please, you're on YouTube, hit that bell, subscribe, you're on Apple podcasts,
(32:40):
Spotify, iHeartRadio, Google podcasts, whatever, subscribe, leave me a review, leave a comment,
leave around Spotify, you can leave a comment on the episode. That'd be cool. I want you all
to have a great rest of your day. Thank you for listening.
(33:14):
(upbeat music)
[Music]
(00:24):
Welcome to the TCO Method, the only show focused on helping you massively increase your
net operating income. I am Andy McQuade and thank you so much for tuning in to this episode of the
program. Today I want to talk about consultants and coaches and mentors. Oh my. In case you haven't noticed,
(00:47):
there's a lot of them in real estate. In case you also haven't noticed,
there's a lot of them out there who aren't qualified to do what they're doing. I have to apologize.
This episode, I'm going to try to keep it to 30 minutes and it's near and dear to my heart just
(01:09):
because I am a consultant for real estate and for other things, but I'm a consultant mostly for real
estate for the last four plus years. I also have to apologize, changed some software settings in my
recording software so this episode might sound a little different trying to fix some issues that I
(01:30):
hear in the audio that maybe you guys don't you can let me know. But the Tuesday episodes, now the
Wednesday episode just for this week, it is what it is. All right, so consultants and coaches and mentors
are my. It's a tough one because not a lot of people know what the differences are, not a lot of people
(01:55):
have experience with all three as separate things. And quite frankly, there's a lot of smoking mirrors
out there on especially on Instagram, some on Twitter, but mostly like Instagram, Facebook,
any place they can flash pretty pictures of their cars, their beach houses in Florida,
(02:17):
like all the stuff that real estate got them. I question the motives and the ability of anybody who
leads with, look at all this great stuff I've got from my XYZ. Like that's cool, but is it really from
(02:37):
this or is it not? Fire beware when working with Instagram and Twitter coaches and mentors that are
out there pushing their product, leading with either, here's all the cool stuff I've got or
leading with Jesus is great and he saved me. I have no problem with religion. I'm Roman Catholic,
(02:59):
Irish Roman Catholic, okay, but if you have to sell your product by leading with, hey, look at me,
Jesus is awesome, God is great. I don't think your products that good. Whatever it is, you're selling
should be able to stand on its own without needing people to buy it from you as you thump your
(03:21):
Bible and flex and say, look at me, I'm an awesome person. Pretty sure that there's something in the
Bible about humility and I don't know, knocking over some merchants tables in a temple where it doesn't
belong, just throwing it out there. Anyway, so the other thing with the flashing glitz and glamour
(03:44):
again is if you're selling the final product, you're appealing to people's most base instinct,
which is greed and maybe envy, maybe keeping up with the Joneses, you're literally having people
compare themselves to you. Again, probably not the ideal type of person to seek out for coaching,
(04:12):
mentoring, whatever. And then there's the third type, which is the super pushy,
eye pressure used car salesman approach, which is a complete turnoff for me. I don't know if it's
a complete turnoff for everybody else out there. There's a lot of people, right? PT Barnum, there's
(04:33):
a sucker born every day, the super pushy clothes now do this now generally speaking, they're super
pushy because if people have time to do research and really dig into what it is they're talking about,
(04:55):
their product sucks or they're a shady scammer. And they're trying to get you to commit to something
because they know if you do any type of due diligence, they won't be getting your money later.
And why am I talking about this on the TCO method? Well, for one, in case you haven't noticed
and I may have mentioned this already, there's a lot of real estate,
(05:21):
coaches and mentors out there selling masterminds and masterclasses and
coaching and mentoring and seminars and webinars and not just not even getting into the like
6,000 different capital, razor, syndicate or GP LP conversations that are happening in social
(05:48):
media. Invest passively do no work, earn, get all these cool deductions on your taxes. Yeah, no.
Conversation for another day, but again, like anything else, there's ethical syndicators and there's
unethical syndicators. There are strong operators and there are really shitty operators who have
no idea what they're doing due diligence matters, not just in your real estate before I get into
(06:16):
consultants and coaches and mentors, oh my, let's define the difference between
a mastermind, a masterclass, a seminar and whatever because there's a ton of those going around.
So there's a lot of these quote unquote masterminds out there, a mastermind, a mastermind
(06:39):
to be the most effective and useful and to stick true to the actual definition of what a mastermind
was when it was published in Think and Grow Rich by Napoleon Hill was like four to six people,
all peers, meaning all managers, all CEOs, all directors, all whatever,
(07:03):
who are seeking to grow and improve beyond whatever place they are in their business.
And I've seen two different mindsets, one is you can't have any two people in that group in competition
(07:25):
with each other and the other side is it doesn't matter who's there as long as they're all on the same
journey and doing the same thing. So I'm good with either way, like that's a mastermind.
Now you can have a facilitator for a mastermind who's doing the organizing and providing the software
and support and maybe materials and taking the time to book the place where you're going to go and
(07:49):
ordering the food and doing all that kind of stuff, right? That's okay. As long as they're in the hot seat too.
And if you don't know what the mastermind hot seat is, Google it, I'm not getting into it. This is not
a thing about masterminds. If it's all six people who are involved, including the facilitator,
all have the same amount of skin in the game, they're all doing the same thing, they're all
(08:12):
getting in the hot seat, they're all trying to improve and get better. I don't see an issue with it.
The whole thing about being in competition, it makes sense in certain cases because of trade secrets
and whatever. In real estate, I really don't think that it matters for two reasons. One is there's
basically unlimited opportunity in real estate. It's a blue ocean thing. There's no scarcity in real estate.
(08:32):
It's hard to close deals right now. Yes, I get it because people are sitting on stuff and whatever.
They're scarcity in competition there, but there's enough to go around. That's a mastermind.
A mastermind is not 50 to 300 people in a room listening to a speaker talk about how his mastermind is
awesome and then selling a $30,000 course. That's not a mastermind. That's either a seminar or a masterclass.
(09:00):
If it's just a dude talking and it's just him, there's not a lot of things going on. It's probably a seminar
or a really bad sales pitch. That's the two places I would put that. If it's a masterclass,
usually there's multiple different presenters, multiple different speakers. They break up into
smaller groups throughout the day. It could be like a one day thing or a morning thing or an afternoon,
(09:25):
but there's usually smaller, more functional groups and they work on specific topics and tasks to
bring things to light and make people think about things in a different way.
Probably again, so they can sell their course. Anyway, I have nothing against selling courses. I'm
working on my own. However, I'm not trying to teach people how to become millionaires in real estate.
(09:47):
I'm just taking people who want to make more money in real estate who are already in real estate,
help them set things up correctly so they can make more money that way. Just remember,
93% of people who go through real estate, coaching and mentoring, high ticket,
stuff like we're talking 10 to 30 grand, never actually achieve anything from those courses.
(10:15):
I'm going to say also that 90% of the time, it's because they think they're going to spend
this money and whoever they're spending the money with is going to drag them across the finish line.
Not the case. Okay? All right. Enough about that. So, mastermind, four to six people,
(10:36):
everybody doing the same thing, even the facilitator. Masterclass, a real masterclass is probably
10 to 25 people with a facilitator speaker who's actually teaching and educating. That's a masterclass.
(10:57):
A seminar is several hundred people in a room listening to a dude talk. Even if there's multiple
speakers, maybe if there's multiple speakers and there's several hundred people in a room learning,
maybe that's a conference. Consultants and coaches and mentors, oh my, real estate is littered with them.
Less so on the consulting side. I've noticed a lot fewer people out there advertising
(11:19):
themselves as consultants than as coaches or mentors. And so we're going to define what those three
things are. A consultant in or out of real estate is someone who has a certain set of knowledge and
skills that they bring to the table to fill in gaps or help an organization or an individual
(11:47):
achieve a goal or fix a problem or gain insight into their operation or whatever it may be.
There's a bunch of things consultants do, but there's some very clear cut roles that they take.
They're 1099s, so they're externals, they're not internal employees. They have to be or should be
(12:10):
objective. They should not be selling products or secondary services because they're not
consultants then. They're salespeople. They may be using consultative sales, but they're salespeople.
They have a financial agenda beyond just getting paid their consulting fee. They usually have a time
(12:33):
limited set of tasks that they execute for the customer or with the customer with the client
to achieve certain milestones or goals or objectives or to uncover certain information. Now this
goes into is this like research, strategy, operational management. There's a bunch of different
(12:56):
consulting buckets. And you can really break them down into multiple different verticals, but it's
not important. Consultants are externals that come in to help with a task and they finish that task
and they disengage and they leave. That's what a consultant is. A coach is similar to a consultant,
(13:18):
but they're a little bit more, I'll call it interactive probably, and it tends to be small groups
or individuals that are looking to improve on certain aspects of their performance,
whether it's personal developmental performance for work, so professional, or something else.
(13:43):
But they come in to work with people, right, to coach people, to help them achieve a goal,
help them correct a problem, help them develop professionally and overcome. There's a bunch of
different coaching strategies out there for different roles and different functions. In real estate,
(14:07):
coaches are out there pushing their services. I mean, it's usually to bring people in who are
new to real estate and educate them and give them information and knowledge so they can do whatever
it is they want to do first. So there's coaches out there teaching, whole sailing, there's coaches
(14:29):
out there teaching, house flipping, there's coaches out there teaching, syndication, there's coaches
out there teaching, property management, there's coaches out there teaching, whatever.
If you know you have a desire to do something in real estate, finding a coach can be really,
(14:50):
really good for you. You need to vet them. Again, be aware of the people who are advertising
their coaching services and leading with Jesus or leading with all the cool stuff that they've purchased,
the bling, the keeping up with the Joneses, the Instagram pictures on the beach.
(15:11):
The people who lead with that are the people you need to dig into the most,
to verify their reputation and that they actually know what they're doing, that they actually have a
track record. The other side of that for coaches is now suddenly there's all these coaching networks
(15:35):
and coaching certifications out there. I'm seeing 25-year-old people, nothing against 25-year-olds
and can be very accomplished at 25. I had already run a store and was running a $8 million sales team
at 25, but coaches out there who've never actually worked a job outside of Starbucks who are
(16:01):
creating these businesses online, creating their own coaching and mentoring certification programs,
certifying themselves in it and then telling it. Yeah, no, that's not actually a certification.
That's what we call a scam, okay people. You're taking somebody who's never worked a real job
(16:22):
and never actually delivered results for anybody and you're letting them teach you how to coach when
they've never coached anything. You're literally taking a red shirt freshman
and you're putting them in as an NFL offensive line coach.
They've never played the game where it really counts. They know the rules,
(16:47):
they know some of the information and the knowledge and the tactics and maybe a little bit of strategy,
but are they really qualified to coach for the NFL? I don't think so.
Hopefully you don't either and yet these people are somehow selling these certifications and coaches.
(17:08):
Look at me, I'm a certified coach. It's freaking meaningless. No one cares that you're a certified
coach because the certification was made up by some MBA college grad who's never had a real job.
Never let a team, never done anything important, never driven success for people.
Like, raw, raw, great. You can talk a good game, but can you actually deliver?
(17:34):
Like, hopefully your coach that you hire actually knows what they're doing because they've done it
or they're currently doing it. Don't hire a coach who doesn't do it full time.
If you're going to find a coach or a mentor,
find a coach or mentor whose full-time job is whatever they're trying to teach you.
(17:55):
Okay, that's when you'll get your money's worth. If they have to live on the proceeds and
support themselves and their families on the proceeds of their ability to deliver results
in that job and that job is what they're coaching you in, go for it. All the certifications on
(18:17):
coaching in the world mean jack squat compared to real world experience bringing it to the table
and educating people so they don't have to go through the school of hard knocks that the other
guys did. Everybody has a horror story about their first investment.
Hire the right coach. And why am I talking about coaching and mentoring on the TCO method?
(18:43):
Number one, because there's a billion really crappy real estate ex operators or current operators
who decided real estate is hard and they can probably have a better time with it and do more
and make more money by bringing in suckers to coach, mentor, master class, mastermind, whatever.
(19:09):
They decided that that's the way they're going to make their money because the other stuff is too
hard. But that also means that they're probably not the best at what they do. So is that really the
person you want to spend money with to enhance your performance or worse yet, they're working
(19:31):
at W2 as a IT consultant or a help center associate or target Walmart. They have like two rental properties
and they're selling coaching and mentoring services to supplement their income while they still work at W2.
(19:52):
I'm sorry if your real estate investing cannot pay for your lifestyle, you are not qualified to be a coach.
The end, that's it. I don't care about what the excuses are about all I want my benefits, all I
(20:15):
want my 401k, all I want my retirement, blah, blah, blah, blah, blah, blah, blah. It is what it is.
You need to be able to pay the bills and have a track record of success full time
(20:35):
before you start coaching and mentoring and training people on how they can run a business full time to
create freedom and make money for themselves and their families. If you've never done it, you are not
qualified to teach it. The end, Wow, I'm getting rough today. Sorry, everybody.
(21:03):
Okay, so pick your coaches wisely. Coaches are super important. Everybody should have a coach or a mentor
at whatever part they are in in their careers and no, books, podcasts, they're not mentors or coaches.
Okay, their books and podcasts, they're meant to motivate you, inform you, inspire you, add some value,
(21:32):
but they're not holding you accountable. So they're not coaches. Be very clear that coaches are
supposed to be holding you accountable for stuff. But again, if these coaches can't keep people on
their teams, can't keep people employed, constantly making posts about all these people they're hiring
(21:52):
into their organization and those people ask for three weeks and leave, there's probably a reason for
it. There's also a reason why they do the high pressure, I touch, oh my god, the world is on fire,
you must do this now or you're going to be a failure for the rest of your life. High pressure
sales means there's something about what they're doing that should raise questions in your mind.
(22:20):
So you need a coach to move on and develop and overcome wherever you're at, whether it's accountability
related, whether it's skills related, whether it's professional development, whether it's personal
whatever, get a coach. Therapy is not a coach. If you're in therapy for whatever, I don't care what it is,
(22:45):
what kind of therapy, none of my business therapy is not a coach, get a coach, vet them. Well, how do I vet
them? There's a lot of ways. I've already talked about them. Are they W2 employees still?
Or are they doing what you want to do and have a proven track record of overcoming what you want to
(23:07):
overcome? Check their reputation, check their social media. See if they're pushy.
If you're getting hit with a used car salesman pitch, you should walk away from the table.
If there's a sudden, we got to start this today, $2500, you're going to suck if you don't do this. Yeah,
(23:27):
now that's not actually how that works. Sorry, pal. I'm good. If they're bringing value to the table,
they will wait for you to come to them. Good coaches should have a list of people that they've coached
and it shouldn't just be fanboys that they're paying referral fees or something too. They should be
(23:50):
legitimate people that they've coached in the past who've been able to achieve stuff.
And it shouldn't be people they've just signed on with. It should be people who've been able to
apply whatever they were being coached on to become more successful in whatever it is they were working on.
(24:11):
And finally, coaches have a job you're paying them. Consultants have a job you're paying them.
They're team members. Mentors may not want to be paid. Maybe you just buy them lunch. Maybe you buy
them breakfast. Some mentors want to be paid, but then it's more like coaching in my opinion.
Like a mentor is someone more experienced than you who is verifiably where you want to be.
(24:41):
In the future. Hopefully your values and your ways of doing business in your ethics align.
Because you want to be able to trust your mentors. You want to be able to trust your coaches and
your consultants too, but a mentor, there's probably no contract. There's probably no
no money changing hands if there is it's favors and barter and buying breakfast or lunch or dinner
(25:08):
for them when they're spending time with you. But your mentor should be where you want to be.
And the whole point of bringing a mentor into your business is that they've already experienced
the stuff that you're going to go through and they can help you to avoid plan around and mitigate
(25:32):
all the pitfalls and BS that go into it. How does this tie into the TCO method? Well, it's partially
who's on your team. It's partially your performance will influence the performance of your business.
And it's also real estate's freaking full of it, man. And I just I hate seeing these scumbags
(25:58):
who just lie through their teeth and smoke and mirrors their way to coaching and masterclassing
and all this other stuff with zero track record of success. People who made their money through
crypto and then like flipped a couple houses and did a couple things and then immediately started
(26:19):
selling coaching. Like I have an ethical problem with that because you're showing all this cool stuff
on Instagram and you're you're showing all this neat all these neat toys and all this other blingy
stuff and look at this house that we did look at this house that we did. Yeah, but all the money that
(26:39):
you show that you were making quote unquote if you're not on YouTube air quotes right now. You made
the money through $67,000 Bitcoin that you just happened to sell at the right time like you didn't
actually do real estate to earn your fortune. You just got lucky and made a bunch of money.
(27:05):
Okay, it's not luck opportunity and and preparation me. It's not really luck. If you're a crypto bro,
I apologize. I'm not trying to hurt your feelings. But there is legitimately somebody right now.
Who I know just got national attention on a bigger pocket's podcast that made all their money
through crypto tried to show that it was through real estate and it's not like it is now because guess
(27:35):
what? Like crypto is not worth $67,000 or Bitcoin is not worth $67,000 each anymore but it's a high
pressure used car salesman push for their coaching and mentoring program. That says all I need to know.
I'm sorry. It just is good. Anya, whatever takes all kinds in this business.
(27:58):
So your mentor probably doesn't want money. Probably doesn't want
really much of anything other than somebody to talk to and help mentors are a weird a weird breed
because they want to come in and help you do better. Maybe they want to do some deals with you. Maybe
(28:20):
they want to invest in some of the things that you're working on and helping you make money with.
But hopefully they got where they are and you're looking to
do the same thing so you can end up in the same place. But maybe with less bumps in the road.
(28:43):
That's the reason you bring in a mentor. They've already lived it. Like some coaches and stuff can
do that, right? You hire a flipping coach. They flipped 50 or 60 houses. They can probably tell you
what the pitfalls are, how to plan for stuff, how to budget for this, how to manage your crews,
how to schedule, how to run your operations. They're probably really good at it. If they've done by
(29:08):
their 50th or 60th flip, if they're actually involved in it, they probably know what they're talking
about. Same thing with property managers, same thing with whatever, whatever you're looking to get
better at. But you're like a consultant, you're hiring them for a finite period of time to teach you
a certain thing. And the money you put in will be what you get out as long as you pre-veth them
(29:32):
and they're qualified to do the work. Everything else is subject to some creative smoking mirrors that
people throw out there. Like there's people out there selling coaching saying that they're going to be
a mentor. Your mentor is going to call you, ask you how you're doing, help you hold your
(29:54):
self accountable, hold you accountable, discuss how it's impacting your family life, ask asking more
questions than providing answers is probably the hallmark of a good mentor. Because they're going
to be in it with you, not because there's a financial, fiduciary relationship set up where they're
(30:21):
responsible for your success. You need to be responsible for your success.
Them holding you accountable will help you get there. But typically they're there
in communicating with you regularly and mentoring you so that you don't have to go through the same
crap they went through to get where they are. You should have a mentor, not everybody does.
(30:46):
Everybody should have a coach or a mentor or both. It never hurts to get better at something.
But again, back to how much is your time worth? Focus on your strengths. Use those strengths to
scale, build a team around your weaknesses so that you don't have to know and do everything yourself.
(31:08):
That's how you're going to become successful in real estate.
Doesn't matter whether you're doing commercial multi-family as a director, as a vice president,
EVP, sea level, your team needs to cover the gaps in your skill set so that you can do business
(31:31):
successfully. If you're an owner, operator, good-on-ya, but look in the mirror, how are you going to scale
doing everything yourself? Because you're not going to do it all right and you're definitely not
going to be the most skilled at everything you need to do. Figure it out. Your mentor, your coach,
(31:52):
a consultant, and help you get to the next level, help you prepare to scale, help you do all this
stuff. But only if they're actually qualified to do that. They need to know what they're doing
and be vetted and have a reputation. Real estate is a very small world. If you're a shyster,
you're going to burn bridges really fast, even if you get on bigger pockets, just say it.
(32:18):
Anyway, that's all I got time for today. Thank you so much for listening. I apologize for this being
late. I want you to have a great rest of the week. Go do real estate. One networking event a week is
the rule. Make it happen. Please, you're on YouTube, hit that bell, subscribe, you're on Apple podcasts,
(32:40):
Spotify, iHeartRadio, Google podcasts, whatever, subscribe, leave me a review, leave a comment,
leave around Spotify, you can leave a comment on the episode. That'd be cool. I want you all
to have a great rest of your day. Thank you for listening.
(33:14):
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