Seven reasons why you need a coach!Posted on June 6, 2012 by
- Overcoming Fear. When I first got started in the real estate business I had a tremendous amount of fear. There was the fear that prevented me from placing the ads, the fear that prevented me from making offers, and the fear that paralyzed me to the point that I was not able to move forward in a real estate investing career.
- Knowing The Numbers And Exit Strategies. After I made my first 50 offers I overcame that fear. After I got an agreement accepted I had the fear of not knowing what I was going to do with the property and whether or not it was going to be profitable. The exit strategy is the plan. The exit strategy defines what your profit is and how much profit there will be. Once I was able to get a handle on the exit strategies and refine the numbers my career started to take off.
- Running Your Business Rather Than Your Business Running You. I then noticed that I had no time to do the fun things in my life. I was so busy I didn’t have time to enjoy the money I was earning. The money that I was creating was going back into the business. I was not relaxing and enjoying some of the fruits of my labor. I began to realize that if I didn’t work, all the time, the business would stop. Cash flow would stop and long-term wealth would wobble. I needed help!
- Building a Team with a Single Vision. As the business grew I started to hire more employees. Each new employee brought the new challenges. It was tough enough managing me but I had to have new skills in order to manage others. If I did not grow my business with other people, my business would go flat. If my business was flat I couldn’t take a vacation. My business was running me.
- Focusing On What You’re Good At. I began to lose focus and the business hit a plateau. I achieved the goals that I had desired for my business but there was still something I wanted to do. I read a number of books on business. The reality was I was not working the business. I lost interest. I needed to be more accountable. By me being accountable to my business my focus became much clearer.
- Objectively Knowing The Market. In the 30 years that I have been doing real estate, the market has changed every year. If it wasn’t the interest rates that changed it was the rental market. If it wasn’t the mortgage industry it was government regulations. If it wasn’t the price of the property it was the return on investment. If the lending rules got too loose then all of the good renters were taken out of the market and evictions went up. The coach has the ability to look at your business objectively. The coach has the ability to see opportunities, niches, and profit centers.
- Raising Capital. My business started and stopped, started and stopped. I was using my own cash. I would save it up, then I would use it for a down payment and get conventional financing. The financing rules changed. After I hit a certain number of properties, I was no longer able to get conventional financing. I had to learn how to raise private capital. Now my business moves very smoothly because I have investors that are working with me supplying me the necessary cash, and I’m paying great returns.
Each one of us has talents and strengths. Having the right coach develops your strengths and allows you to work with people who will cover your weaknesses. A great coach is somebody who will work with you on your terms, but has the people skills to demonstrate your terms are not necessarily good for you and your dreams.
All great leaders and all great business people surround themselves with individuals who have been there, done that, and are willing to share. Your investment in a coach/mentor will be one of your best investments. I have had several in my career.