In a recent blog post I suggested that the fastest path to success in business and real estate investing is to find a problem and solve it.
This struck a chord with people because I heard back from people who said, “Kent, you made it SO simple,” and “You really clarified the underlying way to succeed!” I appreciated those comments, especially since I think that too many people make investing WAY too complicated. As Zig Ziglar said, “You can have everything you want in life if you would just help enough people get what they want.”
So in this blog post I’m going to expand in the “helping others” idea further and give you a step-by-step strategy that you can use to help people as you build your real estate investing business. This will work regardless of whether you’re working with a motivated seller or cash buyer.
Step 1. Find Out What Their Problem Is
Everyone has a problem – that’s why sellers sell and buyers buy! Your seller is maybe selling because they need the money; your buyer is probably buying because they want the property or the cash flow. Find out what their problem is.
Step 2. Find Out What The Underlying Motivation Is
People face problems but they often have deeper motivations. Maybe your seller needs the money because they have a sick parent who needs to be taken care of; that’s a deeper motivation than just needing the money. Or maybe your buyer wants cash flow because they’re worried that they don’t have enough money for their retirement; that’s a deeper motivation than just cash flow. All sellers and buyers have a deeper motivation – find out what it is.
Step 3. Determine How You Can Help Them Fulfill Their Underlying Motivation
Work with the seller to help them sell; work with the buyer to help them buy. No matter what, keep revisiting with them the simple idea that they you are helping them to fulfill that underlying motivation. If you make their important thing important to you too then they’ll see you as a helpful ally. That’s a huge win in any business deal!
Step 4. Figure Out How You Can Benefit
There’s nothing wrong with benefiting by helping others. In business, this is called “profit”. In investing, this is called a “return”. It goes by other names too. You are putting a lot of work into helping them and you deserve to benefit from the effort as well.
Step 5. Set Up A Step By Step Plan
You’ve found the problem, understood the deeper motivation, worked at solving it, figuring out how you can benefit… now it’s time to set up a step by step plan. Lay it out in a nice and easy-to-follow numbered plan. This plan might be the sequence that you’ll go through with your seller or with your buyer. This plan becomes an action plan you can use with your seller or your buyer, plus it becomes a tool for you to make sure that you complete all the steps (and as you grow, it’s a way for you to identify outsourcing opportunities).
Help others and you will help yourself. It’s a profound reality of business and real estate. Follow these 5 simple steps to make sure you help your sellers and buyers at a higher level.