Expected Air Date: 07/21/18
On our last show Tony Lukashevich touched on a very important topic. If you’ve watched the video you will notice that when he talks about just making the call and if you don’t do very well, don’t worry. Just keep calling and you’ll get better. At that point I was taking notes. And here’s what I wrote down: “The More you do it, the better you get.”
I’ve spent some time reflecting on that in my quiet time over the past couple of days and I have an essay on that topic coming up. Or should that be a monologue? Or blog post? Let’s call it all of the above. I’m going to talk to you about how to acquire any skill and develop it to near perfection. And we are going to complete the sentence, “Practice Makes….”
But I’m not completing it now, except to tell you that it’s not going to be “Practice Makes Perfect.” Because I don’t believe it. I know it’s a pithy saying with a good moral, but if I were to get more precise about the impact of Practice, I would not say it is perfection. It’s something else, and I’ll break it down for you later.
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Topic: Practice Makes…
Perfect? No. I’m not sure we are ever perfect. In our lives and all of our strivings, whether it be our career, our hobby, our relationships, we have certain moments when we believe we have achieved perfection. We hit a perfect golf shot, make a flawless presentation at work, give a perfect kiss to our spouse, and so on.
But those moments of perfection are fleeting at best, lost in a life-mix of efforts ranging from failure to acceptable to pretty good to great – but perfect? Rarely. I’ve heard it said that “Practice doesn’t make perfect. Perfect practice makes perfect.” I understand the sentiment behind that statement, but doubt whether it ever really works out that way. Whether you are practicing your piano or rehearsing the speech you are about to make, you make a mistake, fix it, go back over it until you’re not making that mistake, and repeat the process.
It’s not well known that I once was a pianist. In fact for a time while in high school I had set my sights on being a concert pianist, performing with symphony orchestras. When learning to perform an intricate and difficult piece there were usually a few sections that were exceedingly tricky. I would learn them by just focusing on that one piece, perhaps a measure or two. I would play it slowly — as slowly as I had to to get it right.
Then I would repeat it, over and over, gradually increasing the speed until I could play it in tempo. Then I would go back a few measures and come into it until I could do that cleanly. It was far from perfect or even good at the beginning. But after MUCH practice (and driving anyone within hearing range NUTS), I would have that section down. Then onto the next portion.
What I didn’t realize is I was establishing a routine that has allowed me to engage in a lifetime of skill appropriation. Here are the basic steps in acquiring a new skill:
- Approximation (try it – see how close you can get)
- Portional perfection
- Sectional combination
- Reaction Speed Memory (performance faster than you can think about it)
This is not just true for piano practice. It’s a process you will use to acquire any skill. And repetition is the key. You will never achieve and maintain mastery without repetition, regardless of the skill.
So I don’t say “Practice Makes Perfect.” Nor do I say “Perfect Practice Makes You Perfect.” Because you can’t start out perfect. In fact being a Pastor or a Little League Umpire are the only two jobs where you are expected to be perfect on day one and show continual improvement throughout your career. All the rest of us are free to experience life normally by gradually shaping our skillset to what is required.
We begin — we learn — we improve — we practice — we get feedback — we get better — we occasionally execute perfectly — but mostly we just get better. Skip the instruction and skip the feedback and you may find that you are just becoming more consistently mediocre. While consistency may be a virtue, consistent mediocrity is not. You must have some sort of feedback informing how you are doing in terms of reaching the ideal state.
So Practice doesn’t make Perfect. Perfect Practice isn’t possible. So what’s the point? The point is to live in the real world, doing real business, making real money and making a real difference. Therefore you have a duty, an obligation to yourself and your family to create success. How will you do this? Practice. Not just any practice – the right kind of practice.
I call it Constructive Practice. You hone your skills by working on them and from time to time have a trusted friend with known skills tell you how you are doing. You may not feel that your backswing is too quick, you may not notice that your property valuations are too optimistic, you may not sense that your presentations have lost their edge, but the constructive feedback of a trusted and skillful friend can get you back on track. No one is perfect, but in our striving for perfection we may achieve greatness.
I wish I could come up with a more pithy or memorable way of saying it, but rather than “Practice Makes Perfect” I would say “Constructive Practice Makes You Better.”
Comment Line calls and Questions
Call 404-369-1018, press 1 and leave your message!
Emails: Questions@flippingamericaradio.com Tell us where you’re from!
- Megan, Long Beach, CA, “I’m looking into investing in mini-storage. I’m wondering what you would consider a good return?”
- Alex, Jacksonville, FL “Is it possible to flip multi-family?”
- Will, Lancaster, PA “My question is this: what are the questions I should be answering for myself as I consider whether or not to invest in real estate?”
- Why am I doing this?
- What do I want / need in the way of returns?
- What are my options / investment types?
- What is my risk tolerance?
- What are my time horizons –
- How long do I want to hold properties?
- How long do I want to be actively involved in this?
- What’s my exit?
Motivational Thoughts for the day
- Most opportunities come disguised as hard work. That’s why most people don’t recognize them. -Ann Landers
[0:28] Time for flipping America the show that teaches you how to make money in real estate or wherever you are whatever your situation there is an opportunity for you.
Flipping America is brought to you today by Braswell Capital Solutions commercial lending made easy on the web at Braswell Capital solutions.com.
And now here’s that flipping America guy Rodger Blankenship how’s it going everyone.
On our last show Tony lukashevich touched on a very important topic if you were watching the video you’ll notice it when he talks about
I’m just make the call and if you don’t do very well don’t worry just keep calling you’ll get better at that point I was looking down and I was taking some notes and here’s what I wrote down.
The more you do it the better you get.
[1:19] I’ll spend some time reflecting on that in my quiet time over the past few days and I have an essay on that topic coming up or should I call that a monologue or a blog post and let’s call it all of the above but I’m going to talk about.
[1:34] How you are going to acquire any skill how any of us acquire any skill and develop it to near Perfection and we’re going to complete this sentence practice makes.
[1:47] But I’m not completing it now except to tell you that it’s not going to be practice makes perfect because I don’t believe it.
I know it’s a Pity saying and it has a good moral and if I were to get more precise about the impact of,
this I would say it is not Perfection but it is something that we want it’s something else,
and I’m going to break it down for you a little bit later and my talk that I titled practice makes.
[2:16] Okay that’s coming up we’re going to deal with some questions today because we’ve had several questions that have been waiting for a few days and I apologize about,
because if we answer your question directly will get it right back to you but if you don’t get it
a quick answer to your questions because we’ve slotted it for time on the show and then you have to kind of just wait for me to squeeze it in there or shut up and get to the questions so we’re going to do that in just a few minutes
but I want to tell you how you can reach just look for us on the web at flipping America network.com a page full of resources find us all over social media.
At flipping America we’re on Twitter and Instagram at flipping America we’re on Facebook you have to
put in flipping America media + YouTube + LinkedIn we’re on we have Pages there Google Plus house Pinterest just look for flipping America everywhere you go and it’s it’s it was kind of fun for me the other day I’m doing some study course on
search engine optimization that’s right we’re always trying to learn stuff here and you know I want to learn it up so I can hire somebody else to do it but.
As I was going to the course I decided to Google flipping America why don’t you do that that’s fun because I flipping America our Network and our content is
the first page of the entire first page of the search results if you were to look up flipping America that’s kind of cool.
[3:42] That I guess not that many people are searching for flipping America I don’t really care we’re just here to help and to serve and we’re glad to play a part in the conversation about real estate
if you don’t want to do the social-media thing but you do have a question and you don’t mind emailing us send it to questions at flipping America network.com
questions of living America network.com or if you don’t want to email us you can call 404-369-1018.
Andres extension one and leave your message we answer a hundred percent of the questions that come into the show and we will get back to you with an answer to your question or if you have a comment that’s fine.
We don’t play the comments on the show here but we really appreciate the things that you were saying to us because we’re trying hard to give you great value and it’s difficult to give great value when you don’t pay anything for it.
We’re trying to give you what you’re investing your time okay so in exchange for your time we want to give you something worth your time.
And that’s why we put so much into the show with the research and knee at and the analysis that we do here.
[4:54] If you are ever in the Atlanta area I’d like you to come have lunch with us on Wednesday we had last week about 30
235 people out when your lie filled up the room it was great to see everyone we had some new people we have a few new people every week but here’s the deal if you come into the lunch meeting and tell me you’re from out of town you heard about it on the show
your lunch is on me so if you’re ever visiting Atlanta and you’re here on a Wednesday come have lunch with us and.
You get a free lunch right now we’re
doing the lunch meetings at Huey luey’s Mexican restaurant in Sandy Springs on Roswell Road is right down the street from our office and studio so it’s convenient for us and it’s a fairly convenient for anyone at least on the northern part of the city of Atlanta and that’s every Wednesday from 11:30 to 1 you can get more information about it
my going to meet up.com flipping Atlanta should we have that information on our own web page yeah we should but you know
we have a fairly well developed me that page so sorry just go to that all right.
[5:59] If you are looking to listen to this show at your own convenience and you want to listen to it as a podcast and we know that many thousands of,
our listeners don’t live in the areas where we’re being broadcast on AM FM stations that’s great.
You can listen to a course on iHeartRadio and we thank the iHeartRadio people for turning our show into a podcast and giving us the idea to do it ourselves.
And we have and so now the show is available through the flipping America app.
When you download the app it’s free to download free to listen there are no up cells there are no in-app purchases you can also access all of the show notes including links to every story that we do on the show
stories that we don’t have time to cover on the show and by the way I meant to tell you this when I was talking about social media
we have an engine going now that is posting,
probably 15 to 20 times a day stories about real estate and we don’t have time to get to all of these stories on the show we just don’t because we have interesting guest and gray top,
and would but we’re throwing those stories out there for you to stay on top of what’s going on in the world of real estate including you know sometimes,
things just for fun like celebrity listings in that sort of thing while you’re in the app store download the property great at B answer 10 simple questions about the property and tells you.
You’re going to make and gives the property letter grade all that’s free but we’re I can just.
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[9:42] Alright I’m going to lead off this segment with some questions because you folks have been waiting for a while and.
I think we’re going to take at least three questions between this segment in the next Megan from Long Beach California says I’m looking into investing in Mini Storage I’m wondering what you would consider a good return okay.
A good return of course is relative compared to the entire world of things that you can get a return on
and I’m always going to say that if you’re hitting after all your expenses if you’re hitting around 7 or 8% I know that doesn’t sound like a big sexy number but if you’re getting that
you’re doing okay.
Is it possible to do better yes it’s possible and there are things that do better if you were in the in Index Fund in the stock market in 20in all of 2017 you did better
but you don’t do better consistently in the stock market in the thing about stocks is you know they don’t have an absolute value in other words
they don’t have intrinsic value.
Darrell you could decide that you could go to zero if the company bottoms out completely these thing I really like about real estate is
the value of it never goes to zero yes it it has seen in our lifetime it has seen a real challenge but that’s 10 years in the rearview mirror now and we’re in an upmarket and things are good now back to your question Megan.
[11:06] What is a good return well a good return as as I said is anything around 7 or 8% net to you on your money if you’re doing that then you’re fine and you may not want to consider something else I’ve done some research on Mini Storage in fact,
your question is prompted me to reach out to some people who are in this business too
bring them in and let’s talk and get a little bit more credibility about the subject
and so we’re going to be doing that and so making we thank you for the question on that but I’m seeing people say well I’m just a bunch of money in this and you know made 3% and I considered a disaster,
at 3% return would be a disaster because there are so many other things that you can do with your money to do better than 3% remember
if anything that I say sounds like investment advice it is not investment advice we don’t give it best friend advice here we just give information and education based on our research in our experience I get the disclaimer in there alright,
so 3% not good
I saw another story that said that the average return on Mini warehouses 14% while when I see that it makes me want to look further into it and find out for myself but I’m going to be talking to some people about Mini Storage in the coming weeks and we’re going to come back and maybe do a whole show on it so make it thanks for that question
Alex from Jacksonville Florida asks is it possible to flip multifamily.
[12:31] The answer is yes and I ever done it no I have owned some multi-family and Evelyn pieces of other multifamily but I’ve never flip,
but I’ve sold out my interest a few times and I’ve sold properties eventually but
I didn’t sell them because I had bought them to flip I sold them because the weather was strategic or tactical reasons for it in the scope of what we’re doing with our own life but
yes it is possible to flip a multi-family and I have heard of people that are doing this.
[13:04] I would think that flipping multi-family is not going to be in and out in 6 months it’s going to be a more long-term process so.
It’s just what you’re thinking about Alex what I would encourage you to think about is what is going to be your annualized return on investment if you think it’s going to take 2 years that’s fine,
but if it’s going to take 2 years.
You should be expecting to gain at least 50 to 60% on your money over 2 years why because you should be expecting to make at least 30% if you flip single family homes.
Why because you can now I’m I talk to someone not too long ago.
Who lives in an area where the market is tied inventory is low and it’s difficult to find deals and he said that he’s just had to content himself with a 15% margin on his properties
and I’m thinking old man that is that is a thin margin because you have almost no margin for error listen my friends
please do not set up your investing.
[14:08] Where Perfection is required if it has to be perfection in order for you to make any money then you’re going to be disappointed more times than not you can’t base your.
Your Investments on everything going perfectly right you can’t,
makes your Investments on wishful thinking you can’t base your Investments on what you hope for and I say you shouldn’t even base you Investments on what you think is about to happen in the market.
[14:37] Now there can be some exceptions to that because you know the speculators by ahead of the path of progress that’s one of the most historic ways of investing in real estate I understand that but it’s not what we do.
We invest based on the known quantity so I’m getting kind of far off your question Alex but the answer is yes it is possible to flip multifamily the question I would come back to you is,
why would you want to do this if you’re going to own multifamily
why not keep it in cash flow it and let it be you know continue blessing to you and to your family I’ll realize that you could possibly slip it in and it in some cases you can make some pretty big money I understand that.
But then what are you going to do.
[15:25] Those are some more questions that you need to think about Will from Lancaster Pennsylvania says my question is this.
What are the questions I should be answering for myself as I consider whether or not to invest in real estate well that’s a good question it’s a question about questions what question should you be asking.
Tim self about whether or not he should invest in real estate this is very good and it’s it’s worth some some real thought and so I don’t want to give you a partial answer because we’re just about a minute or so we can break so we’re going to go to the break early and when we come back,
I’ll deal with this question from will will be right back.
[16:23] Do you want to learn how to flip houses I want to show you how to flip houses and there’s probably no one in the country better qualified than me to show you I’ve looked hundreds and hundreds of them,
and I also have some training and degree and experience and education so I could show you how to do exactly what I’ve done hundreds of times don’t believe me.
Head on over to put starter event.com but in the meantime Give a listen to Pat caywood my name is Pat caywood.
Cleveland Tennessee and I’ve been.
Doing some flipping since about March of this year and had started with a Nationals program that was very expensive I spent today with Roger Blankenship.
Learning about his program and boy do I wish I’d met Rodger.
[17:12] He has a clear concise program and many tools that are going to be very hot.
And starting and managing the program and the mentorship and Leadership and coaching that he’s offering are in value.
Thank you so much.
[18:22] We’re back I’m Rodger I teach people how to make money in real estate.
When we went to break I was about to tackle the question from will in Lancaster Pennsylvania who’s question is this.
What are the questions I should be answering for myself as I consider whether or not to invest in real estate all right.
Here you go first question you need to ask yourself if this goes for everyone this is a great this was a great question lot of people are out there thinking about this first question you should answer is why am I doing this.
[18:53] Why do you want to get into it.
[18:56] And if your answer has something to do with while they’re doing it on TV and it looks so cool and it looks fun that’s not a good enough answer.
[19:05] Only you can decide what a good answer is you don’t have to submit your answers to me for approval okay but I want you to think about why you’re getting into it because it’s not a bed of roses the other work is not that difficult.
And it’s it’s not that complicated but it is work and there is repetition there’s TDM and and there’s some things that you just have to do over and over and over again to turn this into a business.
All right that’s true of any business but especially this one okay so you need to answer the question why am I doing this the next question.
You want to ask is what do I want or need in the way of returns.
[19:47] What kind of money would you like to make what are the returns that you expect on your Investments.
These are important questions because let’s say for example that you got in but you know money tied up in somehow in the stock market or in bonds or in currencies are currency exchanges or God forbid
cryptocurrency let’s say that you got some money out there and you’re looking for a particular return.
[20:14] What kind of returns are you used to getting on your Investments if you got some of your money in really conservative sayings.
Then it could be that 6 or 8% sounds really good.
And a lot of people I talk to you if they know that they can make 6 or 8% and there.
Money is a backed by real estate they feel great about that and you should also and of course when you’re flipping houses.
You’re not really I’m going to.
Kind of clarify this I’ve said this before many times but I’m going to say it again will for your benefit in for anyone else who hasn’t heard me say it when you’re flipping houses you’re not really
investing in real estate what you’re really doing is your investing yourself in a little bit of your money into a business opportunity
I’m flipping houses is not a passive activity it is something that requires you to be engaged and involved and active so therefore it’s not it doesn’t really fit the,
definition of investing it’s a business opportunity and so if you want a business opportunity that can give you terrific income and.
In terms of Returns on the cash that you put into it outstanding unbelievable then yeah okay.
[21:40] Go for it.
[21:42] But ask yourself what is it you really want now then the next question is related to it what are my options and investment types.
I encourage you to go back and listen to show number 108 I think it was 108 where I talked about 85 ways to make money in real estate and within those ways there are so many options.
You know just say for example you wanted to buy tax liens there are 20 different ways to buy tax liens and the laws are different in each of the states and so there’s so many variations on a theme.
[22:16] Another question you should ask his what is your risk tolerance this going to be a function of your personality and your age,
the older you get the less risk you want to take because they hard it would be for you to replace any lost Capital but.
That some people are just more conservative by nature and that’s understandable as well so what is your risk tolerance if your risk tolerance is high you may want to jump into flipping houses if your risk tolerance is high and.
[22:44] You don’t want to be actively involved you can invest invest your money in people who are flipping houses now how high does your risk tolerance have to be.
In my view and remember this is my humble opinion the risks involved in flipping a house that is bought correctly
are far less than the risks of putting your money into the stock market that’s just my view I know I’m biased because I’m in the real estate business and have been since 2002 I get it
I understand and I know that your risk is moderated someone in an index fund and you’re investing into the the best and brightest minds of some of America’s,
the world’s best companies the best run companies I get all of that I understand it and you know you’re you’re not really a
a significant risk of losing all of your money but if you’re going to dabble around in the stock market make your own buying decisions your risk is going to go up in measurably because now you’re putting yourself in it
Inefficient Market where information is available to everyone your pitting yourself against seasoned professionals who do this for a living and spend 70 or 80 hours a week reading the charge and knowing what they’re doing
so if you’re going to play that game you’re going to be up against some real pros.
[24:01] If you’re going to get into the real estate business it’s a different thing first of all it is not an efficient market and that’s a good thing
it’s not efficient in the sense that there are properties that come available that other people don’t know about you have an opportunity to buy things that no one else knows even for sale you can negotiate with sellers four properties that aren’t even on the market
you can do all kinds of things to give yourself an edge and even though you may be in the same Marketplace as a seasoned professional like me or like others in your community.
You’re not necessarily competing with them because there are so many opportunities all right so ask yourself.
About your risk tolerance and then ask yourself about your time Horizons I’m free sample how long do you want to hold properties.
[24:51] If you read Warren Buffett he says by rental house with the den of never selling it.
Or rental property just hold it forever the tax advantages are significant talk to your Tax Advisor about the specifics.
If you’re going to hold onto the properties for a while good how long do you want to hold them another time Horizon question you need to answer is how long.
Do you want to be actively involved in this this business this activity this investing you didn’t say anything about your age,
so will I I’ll just you know if you’re going to be in it for 30 minutes or 30 years or 30 minutes 30 minutes is little bit of short time sorry.
But do you want to do this for 5 years 10 years 30 years on those are questions you need to ask what are you looking at and I think you need to ask some some questions also I kind of just taking personal inventory.
[25:52] If you were thinking about your life in terms of task orientation versus people orientation what would it be.
[26:03] You can be either there’s no right or wrong
and both are somewhat required in this business but if you just really hate people in the hate talking to people and don’t want to talk to Pete,
did I’m going to encourage you to consider only getting involved in real estate in a passive way
because if you’re actively involved in real estate you’re going to have to talk to a lot of people you’ve got a network.
You got to be meeting and greeting and shaking hands and and.
You know sometimes after you shake and you want to get out your bottle of hand sanitizer but you have to do that you have to talk to a lot of people too.
Make Headway in this business if you’re going to be actively investing then think about the amount of time that you had to give this is this something you want to do part-time or just something you want to do full time.
That’s going to inform you know if you have a great career and a great job and great income in your happy with that then,
you know I’m I would probably suggest that you consider getting involved in real estate passively,
and I’m not even saying bye rental properties because landlord isn’t for everyone but
we can connect you hear through flipping America with people who are doing Turn-Key rentals you can invest in rental properties in in different places around the country west coast Central East Coast wherever
I’m in and we can help you do that.
[27:31] So that’s a real possibility for you if you have a great career but now if you’re looking to change careers that’s a different thing you need to answer that question for yourself.
And then think about how do you want out of this another word what’s your exit strategy.
I don’t want to get too morbid here but you know the odds of dying have never changed its 100% for all of us.
None of us are going to live forever and I joke around sometimes you say I plan to live forever and so far so good but there’s going to come a day when we’re not going to be here on this Earth and what are we going to leave behind.
[28:10] Is your exit strategy for this business to sell everything or to leave a legacy for your children,
of course if we were talkin personally well I would I would ask you this and if you want to leave a legacy for your children and we would talk about
the trust’s and and those different types of structures that you would want to consult a professional in your home state of Pennsylvania to make sure that you get everything set up right so these are some of the questions and I really appreciate your asking.
For these questions because there are a lot of you that are listening to the show that are wondering what you should do with real estate.
I want to be clear and I don’t think I could be more clear because I say this all the time.
We don’t encourage anyone to drop what you’re doing and start flipping houses like you see on TV.
But we do in Courage everyone to consider real estate as a part of a balanced Investment Portfolio.
[29:07] Find a way to get involved in real estate somehow balance out your Investments balance out your life.
You don’t have to take on the burden of being a landlord you don’t have to take on The Business of Being a flipper but there are opportunities for you to be involved in real estate
and you can go to flipping America network.com click on these strategy call and we can help you figure it out on that call that’s all you got to do just click the blue button on every page on the website will be back in just a minute
are you one of the 70% of Americans living paycheck to paycheck and tired of the stress if so I understand that I used to be in that 70.
I start investing 2003 when my network was negative eighty.
Since then I’ve built a business that generates over $500,000 a month in income and allows me the freedom to do what I want I’m Brad Chandler and I teach people just like.
How to find Freedom through real estate investing using a tactic that doesn’t require credit or tons of cash for a free training on how you too can do this please visit Brad Chandler. Com.
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Contractor in your pocket today at ultimate rehab.
[31:54] I’m Rodger Blankenship your host and I teach people how to make money in real estate the topic for today show is this practice makes.
[32:06] Did you say perfect I’m going to say no.
Now I’m done I’m just picking on the phrase here and I don’t care if somebody says practice makes perfect that’s fine and I’m not ever going to stand up and correct anybody that says that but if we want to thank with the level of precision here practice doesn’t make perfect.
No I’m not sure we are ever perfect in our lives and all of our strivings whether it be our career our hobby our relationships we have certain moments when we believe we have achieved perfection.
We had a perfect golf shot.
We make a Flawless presentation at work give a perfect kiss to our spouse and so on but those moments of perfection or fleeting at best.
Lost in a life mix of efforts ranging from failure to acceptable to a pretty good to great but perfect.
Rarely I’ve heard it said that practice doesn’t make perfect perfect practice makes perfect.
[33:07] So I’ve given some thought to that on the 1st I wanted to like that statement,
after I thought about it never really works out that way because I don’t think that you can start something perfect,
whenever you’re practicing your piano or rehearsing the rehearsing this feature about to make you make a mistake you fix it you go back over it until you’re not making that mistake and then you repeat the process.
[33:31] Speaking of piano it’s not particularly well known that I was once a Pianist.
[33:38] And it’s it’s true it when we get to parties and networking things and you supposed to tell one thing about you that no one knows that’s the thing that I break out and everybody goes oh really.
You look like too much of a big dumb over to have ever played the piano and that’s true also but yes I was once a Pianist and in fact for a time in high school I had one a few contest and had set my sights on being
concert pianist performing with Symphony Orchestra.
[34:10] So I have a little bit of experience with this idea about practice when learning to perform an intricate and difficult piece.
There are usually a few sections that are just exceedingly tricky.
[34:25] The way I would have purchased I would learn them by focusing just on that one little section maybe it’s just a measure or two I would play it slowly.
As slowly as I had to get it right then I would repeat it over and over and over driving anyone within earshot.
Now when I was a kid learning to play the piano the piano was in the living room and if anybody else was in that into the house they could hear me practicing and I had to practice for 2 hours a day and it was monotonous playing the same thing
over and over and gradually increasing the speed until I can play it in Tempo but this is how you do it.
Then I would go back a few measures and and I would play the little bit before that and come into it until I could do that cleanly.
It was far from perfect or even far from good at the beginning.
But after much practice and driving my family crazy I would have that section down.
Then I would move on to the next Ricky section and do it all over again that’s the way it works but what I didn’t realize was I was establishing a routine that allowed me to engage in a lifetime
of skill appropriation.
[35:42] Skil appropriation is what we’re talking about here whether you’re analyzing a stock or a real estate property or
whatever Skillet is and those are kind of appropriate for the for the show but whatever skill you’re about to acquire you’re going to engage in the process of skill appropriation and so here are the seven steps in.
Acquiring a new skill number one is instruction somebody tells you how to do it number to approximation.
You try it and see how close you can get I’m guessing you’re not going to be real close on your first try.
Even if your result is good your execution is probably not going to be perfect or Flawless that’s okay.
[36:30] You’re never going to get any better if you don’t try the first time,
and this is why so many people are sitting out there with the analysis of paralysis they they won’t try it the first time because they want to get it perfect the first time they won’t buy their first real estate deal because they are looking for that just right just perfect think there’s no such thing as a completely perfect
well every once in awhile you find one that goes really smooth that that no one does that right out of the gate the first one is never completely perfect you just need someone who’s been down the road a little further than you telling is good enough,
okay and that’s really the third step and skill appropriation and that is feedback.
So you get instruction then you try it that’s proximation and then you get feedback.
And then you do what I call portional Perfection let’s take a golf swing for example there are several complicated parts to a golf swing there’s your
there’s your stance there’s your take away there’s your backswing there’s your downswing there’s your follow-through and all those things you could do the same thing with a free throw it it’s a.
[37:36] It’s a a set of things that you do with your muscles in your mind they’re working together and.
You got to work on each portion just like I broke down a measure or two with the piano you work on that portion and you work on it and work on it and work on it till you have that then the next phase Phase 5 is sectional combination that’s where you
put together this portion with another portion that you worked on you work on the portions individually but then you put them together
and then you’re getting closer to the whole thing and then once you put all your sections together then it’s repetition repetition repetition repetition to your drive the people around you crazy unless you’re doing something that’s quite you can do over and over again just like on your keyboard clickety clack
but you’re going to repeat this and you’re going to,
this until you no longer have to really think about it when you watch professional athletes perform or will you when you go to the symphony and watch The Pianist or violence or any of those who are playing,
a complex piece of music very fast they are not thinking about every note that they are playing even though they appear to play it flawlessly they’re not thinking about it they have,
[38:50] That their fingers and and their arms and their hands in their feet and their head everything moves without them having to think,
this is what I call reaction speed memory some people call it muscle memory but it’s not always muscle sometimes it’s to know your brain that it’s reaction speed,
that is you are performing faster than you can think about it while you’re still in the repetition and you’re still in the skill acquiring phase you’re thinking about it and if you think about it you can get it right but you’re going to be slow.
[39:22] You’re not going to be as fast as someone who has reaction speed memory
reaction speed memory is where you watch a basketball player who spins and executes a perfect pass to someone underneath the basket that they didn’t even really know,
for sure was there but they the person was supposed to be there because it wouldn’t even the way the play was drawn up it is the way the play was breaking down
that that’s where the person was supposed to go so they just turned in at the at in a split second I saw the person they made the pass and executed to Perfection that is reaction speed.
Memory now when we come back to this break I’m going to talked about how this works for us and business alright we’ll be right back.
[40:16] Not too long ago we did a one-day flip starter in Chattanooga Tennessee and low and behold one of my old College friends came out to the event his name is Peter Faulkner and here’s what he had to say about the event.
[40:29] Peter Falkner here I tended a one-day flip starter training session led by Rodger black.
And I was amazed to see what has happened in Rogers Live from the last.
Plus years flipping over 800 houses and then this one day training he told how he did it and what.
Falls the blessings the benefits and how to do it and I was so impressed with how well organized and how smooth the training winners today.
You’re tempted or in courage to go go at was not a bad price and if you get a chance to do it even just to consider investing.
But I just want to thank Rodger for a great day today and preach.
[41:29] Now we’re talkin about practice makes and what does practice make.
And I haven’t given you my answer that yet but I’ve told you that I don’t think the practice makes perfect practice makes something else and.
And the last thing I gave you the 7 steps in acquiring a new skill they are instruction approximation feedback.
Portional perfect Perfection sectional combination repetition and reaction speed memory.
Where did I get these seven steps a folks.
I made them up there based on my learning I didn’t get them out of a book anywhere it’s based on my experience and I’ve used this experience to learn programming languages to learn how to use graphic design
to learn how to make my own website to analyze real estate deals to get better at public speaking whatever it is that I have to do I know that the first time I do it I’m not going to be that good,
but I also know now after you know.
Pretty good long life behind me I know that the thing I need to do is jump out there and do it when I jump out there and do,
I will get better the next time.
[42:43] Because I’m thinking about what I’m doing and I’m following this process okay so this is not just true for piano practice it’s a process used to acquire any skill and repetition is the key
you will never achieve or maintain Mastery without repetition regardless of the skill.
So I don’t say the practice makes perfect nor do I say perfect practice makes perfect because you can’t start out perfect in fact.
Only being a pastor or a Little League umpire,
are the are the only two jobs where you are expected to be perfect on day one and show continual Improvement throughout your career all of the rest of us are free to experience life normally by gradually shaping our skill set.
To what is required We Begin we learn we improve we practice.
We get feedback we get better we occasionally execute perfectly but mostly we just get better.
If you skip the instruction or skip the feedback you may find that you are just becoming more consistently mediocre.
Wild consistency may be a virtue consistent mediocrity is not.
[44:02] You must have some sort of feedback informing you how you were doing in terms of reaching the ideal state so practice doesn’t make perfect.
Perfect practice isn’t possible so what’s the point the point of this is to live in the real world doing real business,
making real money and making a real difference.
Therefore you have a duty and obligation to yourself and your family to create success and how are you going to create this success for yourself.
Practice but not just any kind of practice the right kind of practice I call it,
constructive practice you hone your skills by working on them and from time to time you have a trusted friend with known skills tell you how you’re doing.
You may not feel that your backswing is too quick you may not notice that your property valuations are too optimistic you may not sense that your presentations have lost their Edge.
But the constructive feedback of a trusted and skillful friend can get you back on track.
Remember I said trusted and skillful it’s not going to do you any good to get feedback from someone who’s not as good at this as you are whatever this is.
No one is perfect.
But in our striving for perfection in any skill it is possible to achieve greatness in fact it’s possible to achieve consistent greatness.
[45:32] Now I wish I could come up with the more pithy or memorable way of saying it rather than.
Practice makes perfect I don’t have a nice alliteration and night I don’t have any into something that’s easily memorable but here’s what I’m going to say,
constructive practice makes you better.
[45:57] I didn’t sound great but it’s the truth.
Practice makes you better constructive practice makes you better and what is it that you want from your life whatever it is.
It is to be better.
[46:12] You know you’ve heard it said that it’s not so much the destination but the journey the journey is for me a journey of improvement a journey of learning a journey of gaining.
Time to make the trip memorable we want to get better at things as we go along which things well for me it’s all things I’ve always wanted to be a renaissance man I’ve always wanted to be a pretty good at.
Everything and the only way to do everything a try anyway the only way to get pretty good things is to try them and just understand that you’re not going to be very good at the beginning
be humble except that accept instruction correction and then go about making yourself better whatever it is.
When someone writes in and says you know I think your show could be better if blah blah blah blah blah I listen.
I consider it and sometimes I adjust things a little bit.
[47:05] Sometimes I consider the source as well and that’s why you know I trusted and skillful friend.
Is what you’re looking for I like to have other people who are in the business listen to the show from time to time and tell me what I can do better and their opinion carries a lot of weight with me.
[47:22] So what should you take from this what you should take from this is get out there and get the practicing I’ve always thought it was kind of amusing that
doctors and lawyers call what they do I practice come on guys you should be pretty good at it but I think what they recognize is it,
their skills are ever evolving and getting better and so maybe what we should call our business is a practice,
because we’re evolving and getting better
we’re getting better at how we buy property we’re getting better at how we’ve put together the deals I’m way better at it and then I was when we started and we’re getting better at the way we execute the properties once we have them we.
Always try to get better at the end of every project will have a debriefing session where we sit down and say what went wrong I mean I’m sorry what went right what can we celebrate how can we improve
and that’s a nice way of saying what went wrong and what can we do about it but that what are we going to do to make this process better the next time around and we learn those lessons just about every time we’re out there I’m buying a property weed we learn something on every deal almost
and so this is how we get better and better at what we do because we’re practicing it for those of you who have not begun.
[48:42] The word for the day is begin.
This is a beautiful thing about them internship that we have just unveiled and I’m going to put in a little Shameless plug for it here
I would like to say that the internship
a rose out of our understanding and wisdom but it was what it really a rose from is our accident
accidental discovery that by bringing people in to help us with the tremendous load of properties that we have to review
those people got really good at reviewing properties really quickly and now have a sense of what a deal is and
So based on that idea of repetition and it’s called to my mind the idea of you know the things that I remember from playing the piano so many years ago we are revamping the way we teach people how to make money in real estate by focusing on repetition
repetition in this case with
live data it means something and their opportunities to make money based on this practice and as we practice we get better.
And as you practice whatever it is you do you’re going to get better.
So I want to encourage you start practicing looking at deals if you think you want to do this start practicing now jump out there.
Stop sitting on the sidelines let’s make it happen.
[50:05] Switching gears just a little bit let’s wrap up the show today with the little bit of news we’ve been paying attention to some developments with some new regulations coming down from the federal government it’s designed
to unmask or to reveal the true identities of the shell
corporations that are buying up condos and they targeted Miami and Manhattan and so I’ve got a story that we’re going to link you to from.
The Miami Herald that just came out
talking about the results of this now what they’re doing is they’re requiring a disclosure for cash purchases in the name of an LLC the requiring that the.
Owners of the loc disclose who they are the purpose of this is to stop money laundering okay I haven’t.
[50:57] I still haven’t decided exactly how I feel about this because
and it seems like we as Americans are entitled to some anonymity and we
create these llc’s too and it’s not just a shell company these are llc’s that are basically designed for asset management and
I don’t like them being called shell companies in.
In every case because that implies that there is a something the fairy is going on it’s not necessarily true
any real estate investor worth their salt is going to have a number and end who owns a number of rental properties is going to have a number of LLCs you do this for risk,
eye protection you you have to know the idea of being required to reveal your identity.
[51:48] It is possible to go to the Secretary of State’s website in your state and,
find out who may be the registered agent for the LLC but the Savvy investors out there are usually using someone else’s a registered agent and so it’s a more difficult and challenging process to find out who actually owns these companies.
You know I’m all for stamping out the illegal drug trade and.
One way to do that is to stop their ability to use this money that they have
and I was interested to see this evening I’m thinking philosophically right now but let’s let’s just set aside from the philosophical point because I’m,
I’m in favor of stopping the drug trade I’m not in favor of limiting the freedoms of law-abiding citizens and it’s difficult to know where to stop there because you know not all citizens are law-abiding and not all non-citizens are law-abiding either
so rather than weigh in on.
[52:44] The right or wrong of that let’s just talk about the effect of it because this is the really well we’ve been watching the story because once these regulations were handed down we were interested to know whether it would significantly affect
the real estate markets involved and the end result at least in Miami is the secret home deals have dried up
because the feds are now paying attention to this.
But it hasn’t really had much of an impact at all on the Miami real estate and one agent says if anything cash sales have gone up.
And I think that’s not necessarily related,
caused by this but just is an effect of the market the way it is right now so the market is still strong and then the markets haven’t been hurt
buy this increased regulation and on the oversight by the federal government
but I want you to know if you’re going to buy a property in the name of a company in either of these areas Miami or Manhattan you’re going to be asked to disclose who the true owners of the company is sand for most of us that shouldn’t be too much of an issue.
[53:51] So let’s cover a couple of stories about tarascio again seems to be a popular Topic in the news if you’re,
involved in renovation or building you’ve noticed no doubt that the cost of lumber has gone through the roof it’s amazing what Lumber cost now it is it’s up by a lot I mean a lot
and I’ve got a couple of stories were going to link you to the source of this is kind of a perfect storm there’s been a pine beetle infestation across Canada and there’s been a shortage of a real car transportation for softwood but probably the biggest impact is
a set of tariffs
on Canadian softwood Imports and so this means that the supply is coming in a lot less and the impact has been to make things more difficult for American Home Builders and remodelers in people who buy lumber and that
increase cost of course is passed on to the consumer to the home builder so we’re feeling it there’s no denying it so what’s happening in response.
[54:55] I’ve got another story
the first story I’ve got a tariff article from the heritage.org and then I’ve got it an article from CNBC talking about American lumber companies are ramping up their production to meet the demand
so it looks to me like yeah we’ve got a problem right now and that is higher costs of our lumber but it looks like American lumber companies are,
to step in,
and fill the void and perhaps prices will come back down it’s going to take a little bit longer for them to come down then it did for them to go up
because they’re going to continue to collect that higher price as long as I can it’s human nature and human nature translate into business practices a lot of times.
[55:39] Leslie we’ve done a little bit of talk on the show here and we’re probably going to do some more talk about the Airbnb strategy this is where you buy a home in an area that the people want to travel to either for vacation or for business and you rent it out on Airbnb now
a lot of the high-rises and condos and so forth in the cities
do not like the idea of homeowners renting their house out temporarily to others is specially if this is kind of a investment strategy and people on the property never live in it and rent it out.
Two people and so what they’re accusing these homeowners of and that there’s a group of Hotel Executives in Manhattan in New York City that are using these Airbnb owners of,
basically owning illegal hotels.
Okay and so they have convinced the city council in New York City that just probably going to pass they’re going to pass a
law requiring Airbnb to disclose the names of all of their operators in New York City whole boy,
that’s going to be interesting.
I think it’s going to wind up in court and it’s going to be in court for a while because whoever loses is almost certain to challenge this to the next level.
[57:00] You have your share of ridiculous statements and end.
Overworked drama here’s one from speaker Corey New York City Council speaker Corey Johnson
he says I’ve seen firsthand the risks illegal Hotel supposed to Public Safety and how they reduce the supply of desperately needed affordable housing all of this is basically just rooting out our freedoms.
If you own a piece of property I believe you should be free to do with it as you wish here’s the thing that happens with Airbnb.
If you suck as a Airbnb owner if you don’t provide a quality product people write reviews and guess what when I’m going to rent an air B&B.
If it had if I have a choice between something that has.
A hundred percent positive reviews and something has one- I’m going to take the positive one negative review can really hurt you.
[57:54] As a general principle I’m in favor of allowing the marketplace to sort these things out and the marketplace does a pretty good job with Airbnb.
And the people that don’t do a good job don’t they they put out a substandard product or have some other problem or issue those people get weeded out of this Market
and soap competition and consumer satisfaction rule the day that’s not necessarily the case in the big hotels.
And if Government municipalities are allowed to effectively rule out this free exchange of it in the marketplace all they’re doing is ensuring that.
The big and personal corporations will be allowed to dwell in their media.
[58:48] And of course mediocrity is not where we’re going for excellence is what we want.
AR code for the week is most opportunities come disguised as hard work that’s why most people don’t recognize them it’s for man Landers and.
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