Stop Investing With A Broke Mindset

Speaker 1: [0:02] Welcome to the Collecting Keys Friday Focus.

Dan Austin: [0:05] Hey there. Welcome back to another episode of the Collecting Keys Friday Focus. If you're new here, these are the episodes where Mike or I spend a few minutes taking a deep dive on a specific topic that's relevant or something that's just top of mind for us in our business throughout the week. Today, I will be your host, investor man Dan. And for this episode, I wanna talk about mindset. And I don't mean the soft fluffy, go get them tiger motivational mindset stuff. Instead, I wanna share three tactical approaches to your decision making, minor mindset shifts you can make to help scale your business, to help scale your real estate investing career. And the reason why I wanna talk about this, is because I've been hearing a lot of rumblings lately, talked to a lot of people, as I do, and it seems to me that there's a lot of folks that are struggling when it when it comes to growing their business or or making their next investment, and it's not because they don't have the tools, it's because mindset roadblocks that are keeping them from doing that. And I mean that by like, people are approaching their decision making with a broke mindset, or they always look at things through the lens of loss. Like they have this like this fear of loss or just like this gap in in their decision making where they there there just is no sense of abundance.

Dan Austin: [1:22] They think that the good old days are behind us, and there's nothing else to go forward, or that one deal they got lucky on, and nothing else will ever size up to that, and that's just not true. None of that's true, those are just small roadblocks that we have built to protect ourselves in this space, because you know, it is risky to be a real estate investor, but it's far less risky than a lot of things, okay? So let's take a quick Let's jump into this, and I'll start with that first topic, the first small shift, the first challenge I see people making, and that is having a broke mindset when they are approaching their business or their investments, as opposed to a mindset of abundance. Lot of people, they say stuff like, oh, I just need to cover my marketing expenses, or oh, that's I just I can't afford 200 more dollars, and it's like, no no no, that you're taking you got the whole mindset wrong. You know, you can't afford $200, or you don't wanna spend $200, and why is it that you're not spending that money? And I'll give you an example, know, you have like, this is particularly with high income earners for some reasons. You know, a guy makes a $150,000 a year with a very secure w two, and they're complaining about, you know, hiring a lead manager for $5 an hour, or adding a system that will help them scale their business, that costs them like $200 a month. It's like, dude, you make a $150 a year, and you can't spend 200 more dollars, like, you doing something wrong here? Is that what you you do you give your spouse a budget when you go to dinner, because Dave Ramsey said that, you know, eating out's bad? Like, we're real estate investors, we use leverage, we do all the things opposite of Dave Ramsey, to really help grow and escalate and scale our business.

Dan Austin: [3:00] And so what you need to really actually think about is, think of it as an investment in you, an investment in your business, and recognize that by investing time, by investing money into your business, there is going to be more opportunity for you. There's an abundance of opportunity, in fact, for you, waiting for you to go and grab, as opposed to, well, I'm just spending $200, because you're not. It's not like you're going and buying a pair of Air Jordans for $200. I mean, that's arguably an investment, I guess, but you know, it's a pair of shoes that are gonna wear out, you're talking about investing in your business, which is an asset. And you know that, because you invest in real estate, and you recognize the value of an asset. Start approaching your business as an asset, and recognize that by spending money, not all of it's going to be fruitful, but you have to continue to invest and spend money in your business to capture all that abundance of opportunity that's waiting for you to go grab. Okay. Speaking of spending money and investing in your business, the second mindset shift, the second mistake I see people making is quitting or pivoting too soon when things get challenging, when things get hard. You have to instead be consistent and don't stop doing good things, even though it's challenging, even though it's not being fruitful. And what I mean by that is, not that you should just keep doing things just because, like, hey, if I do this every day, if I show up and do these five things every day, I'm gonna be a millionaire.

Dan Austin: [4:24] That's not always the case. Sometimes, one of those things you're doing is a waste, and you need to know when to pivot and adapt. But what I see from investors, is they're doing it too soon. They they do one batch of mail, cost them $1,500, and they didn't get a deal right away off in the first month, they're like, oh, I'm done, I'm gonna pivot to I'm just only gonna do texting, because I can text so many more leads, and for half the cost, and it's like, yes, but what quality of leads are you getting? I'm not saying you shouldn't text, we text. What I'm saying is that you shouldn't pivot away from that lead gen source so quickly, it does take time. Real estate isn't a get rich quick thing, it's it's, you know, get rich after being consistent over a long period of time. You know, Mike and I, we're an edge case, and I like to share the story, because we invested, we spent $20,000 on marketing, and I said invested $20,000 in marketing before we even got any income, and our first little wholesale pop was $7,500. It certainly did not cover our marketing cost, and we could have just said, we have this sunk cost bias, or this fear of loss, or whatever you wanna throw in there. Hey, at least we recovered $7,500 of 20,000, it's less of a it's less of a loss now, let's just let's just call it quits before we spend more money and make our losses bigger.

Dan Austin: [5:32] That's just like the wrong, absolutely wrong mindset, that is anti abundance mindset. Instead, we were consistent all the way up to that point, and we knew we were investing in our business, and we did that, and then that was like five or six months later, and we were making minor adaptations to our business, and finally at that point, we also recognized we needed to adapt our sales process, our sales systems, and we did that. And now that we had proven we can make money, and we we had proven a way to do that, it was just off to the races for us, and we were ecstatic off of $7,500. Now we look at that, we're like, oh man, we better make at least that. But you have to be consistent, show up every day and do the right things over and over again, and don't pivot, don't quit so soon. Just because you spent $200 a month on that system in month one and it didn't help you, doesn't mean that it won't help you in month two or three. You know, show up every day and and give it to the old college try without quitting or pivoting too soon. The third thing before I stop talking here, is you have to have a long term approach. And this goes hand in hand with not pivoting and and being consistent. But you really do have to have a long term approach.

Dan Austin: [6:38] As I said earlier, real estate is not a get rich quick scheme, it is a get rich eventually scheme, which means that if you show up every day, and you look at real estate, and you look at your business in a long term approach, you're going to gain wealth over a period of time. All too often, I see people think they're they think deal to deal, or they think wholesale to wholesale, and they think, oh man, I just got I just gotta get another wholesale, then I can pay for more marketing. It's like, no. You need to pay for more marketing before that next wholesale deal, because that next wholesale deal is going to happen. Right? It's that abundance mindset. It is going to happen, and I'm going to do 50 wholesale deals this year, or I'm going to acquire 12 flips this year, I want 10 doors this year. We always look at things through the lens of long term vision, when we're we're buying assets, right, like, oh, I'm gonna buy this duplex, and I'm gonna hold it for seven or ten years, or thirty years, whatever your strategy is, right? We It's easy for us to understand that, but when it comes to our business, we tend to not do that as much. Think of your business as an asset, invest in it as such, and have a three year vision for your for your business.

Dan Austin: [7:47] How many of you out there, who are throwing mailers out there, maybe without a system yet, have a three year vision, or are you just doing a deal to deal, and you say, well, if I get one deal, then I'll pay for this batch of marketing, and then the next deal, maybe I'll or the next batch, maybe I'll get two, like, that's just not how it works. Right? If you don't have that abundance mindset and that long term mindset, you're gonna miss out on a lot of opportunity, and so I really would implore you as you're starting your marketing business, as you're being an entrepreneur, as you're making wholesale deals and flips and all that, think of it, Give yourself twelve months, give yourself thirty six months, take that long term approach, and I guarantee you, you will have so much more opportunity on the back end of it, as opposed to just thirty days, one batch of mail, one one one marketing run to the next marketing run. Anyhow, I will finish it up with that, that last point there, you know, as a as a quick recap. You really need to start having that abundance mindset, and stop having a broke mindset. Don't quit, and don't pivot too soon. And then lastly, have a long term mindset with your real estate business, just like you would when you buy a rental property. And I can assure you, doing those three small minor adjustments to your mindset, quit acting like you're broke, you're not, get out there, kick some ass, and I can assure you, you're gonna do okay over the long term. Alright. If you guys wanna hear more about this, and what Mike and I do in our business, go to collectingkeyspodcast.com.

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Speaker 1: [9:57] Thanks for listening to this collecting keys Friday focus. Be sure to subscribe wherever you listen to your podcasts.