Real Estate Investing – How I Process Investing Advice Or Any Advice for That Matter

Well….I am finally back home and trying to catch up from vacation….my email box is loaded and my voice mail is hungover…..both begging for attention…..I will get to it later.

There is so much media and talk about our economy….that it is difficult not to doubt one’s investing strategy…especially as a real estate investor. There are so many opinions out there (….from parents, friends, media, and the party “loud mouth” not to mention the party “know-it-all” (usually one in the same)…) that it is difficult to see straight. BUT, I have to remember one thing….opinions are free. I also have to question where these opinions are coming from. So….I thought I would share with you my strategy in processing advice and or opinions from others.

The process goes like this. When I am talking to someone on the phone or in person who is giving me advice or telling me why things are the way they are (or reading someone’s article), I ask myself (in my mind of course), “What type of person is this? A non-thinker? A blamer? A doer? or a mentor? The I ask myself, “How much experience does this person have?” The last question I ask myself, “Is this person of integrity?

I know this process seems pretty simple but there is a lot of meat in each of the questions.

I will explain below the three questions I ask myself (in my mind) while I am listening or reading someone’s advice/opinion regarding real estate investing (or anything for that matter):

1) What type of person am I listening to?

I categorize people into four types. Yes…..if you and I have had a conversation on the phone or in person, I categorized you (Don’t give me that….you do the same thing….but maybe not as methodical). Now….as a disclaimer, people can change types….so, the label is a current “state of being.” I got the premise of “people types” from Dan Sullivan. Dan calls these types A, B, C and D. I label them a little different:

i) The Non-thinkers: Non-thinkers are people that will choose to not think for themselves. Usually out of fear, most non-thinkers do not have any experience and usually use other people’s experience to form an opinion. We all start out here as kids (adults know more than we do as kids so we rely on our parents for how we think)…but we usually grow out of it (cognitive cycle). Some never do. So, the result of a non-thinker is usually a person full of fear and lives vicariously through others. A good example of this; I recently had a conversation with a relative of mine who told me that he does not invest in real estate because of his father’s experience with real estate. Obviously, he saw his father have bad experiences with real estate. So….when I am listening to a non-thinker, I know I am listening to someone who’s thoughts are the thoughts or experiences of someone else.

ii) The Blamers: Blamers are people that think for themselves but blame everyone they can for the way the world is. Imagine a fifteen year old who thinks they know more than their parents? What happens when the fifteen year old does not grow up? Well….they blame society, parents, and everyone else. You also hear a lot of excuses. As a real estate investment coach, I talk to a lot of blamers. When I hear a person or a student blame another coach, guru, their boss, their spouse, etc…..I know I am talking to a “blamer.” Usually, they are angry and hate their situation. So…when I am talking to someone who does not take responsibility for where they are at and are making excuses and or blaming….I know that the advice or opinion that I am listening to is the advice/opinion of someone with a victim mentality.

iii) The Doer: It is not a coincidence that most entrepreneurs fall into the “Doer Type.” This is not to say that only entrepreneurs can be “Doers.” I know many corporate people that are Doers. Now, Doers are people that take responsibility and do not blame others for their circumstances. More importantly, Doers think differently, develop products, make money within the system. The Blamers criticize and blame others for why they cannot get ahead….while Doers create and maximize their abilities within the confines of what is available to them. Doers are great at workarounds. On my coaching calls, especially with The Ultimate Challenge, I know when I am talking to a doer. There is something special about them because you never hear an excuse and they never blame. They take on full responsibility, they think differently, and they use failure and fear to move forward.

iiii) The Mentor: The mentor is not only a doer….but a teacher. They take their life experiences and help others to move from “the non-thinker” and “the blamer” to the doer. They teach others how to get from point A to point B and they make financial gain from it.

Now, like I said, the “types” are based on “state of being.” For instance, I know a very successful business man who is a “doer” and he sometimes creeps up into the category of being a “mentor” but then also falls into the “blamer” type too.

So….whenever I am listening to someone or even reading an article by a particular person, I try to figure out what “type” of person that they are so I can process their advice/opinion accordingly.

2) How much experience does this person have?

When reading someone’s article or listening to advice, I am always looking for clues on their experience on the topic they are speaking about. I remember listening to a so-called real estate guru on stage talk about how stock investing was as stupid as gambling. So, I was able to talk to the stock hating guru later that evening. I asked him what had happened to him with regards to investing in stocks that drove him to tell the audience that stock investing was almost as stupid as gambling? He said he had a lot of friends lose their life savings in stocks. Is that experience talking? NO! Now…. I do not invest in stocks but I know a lot of people who do well investing in stocks. So, I immediately knew not to take his advice on stock investing. But that happens a lot….and I am guilty of it. I used to say that investing in residential real estate via short-sales was a waste of time and energy based on a few short-sales I had done. Then my friend Phil took the real estate investing arena by storm with his short-sale process and his web-enabled software. I realized how much I did not know.

3) Is the person I am listening to a person of integrity

You may be asking yourself “why would it matter if I am listening to a person of integrity or not when it come to reading or listening to advice or an opinion?” That is a good question! Let me put it another way. If you know a person’s value system, you will have a good perspective of where this person is coming from when he or she is giving out advice. For instance, when I speak at real estate investment events, I like to listen to other speakers to see what other investor mentors are doing. There is always one speaker at these events that will give advice that is down right unethical. So….when I hear someone speak of unethical practices and try to teach others how to do the same, I tend to discredit any advice he or she may give.

Well….I hope this was helpful….until next time….rob

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