Investors often say, “the deals are out there, you just have to go find them!” But is this really true? No, it’s not. In this episode, Jeff explains why entrepreneurs don’t FIND deals, they CREATE deals. This distinction is incredibly important, because it shifts your mentality and either sets you up for failure and excuses, or it empowers you and sets you on a course of developing your skills and talents.
Deals are out there; you just have to go find them. That’s what they say. Right? That’s the common wisdom. That’s the common thought. But is it really true? Are the deals just out there and you have to go find them? Or are the deals out there and you have to go create them. In today’s episode, we’re gonna dive into a very, very important distinction between the idea of finding a deal, and the idea of creating a deal. So let’s cue up the theme song. We’re gonna jump right into this important topic.
Welcome to Racking Up Rentals, a show about how regular people those of us without huge war chest of capital or insider connections, can build lasting wealth acquiring a portfolio of buy and hold real estate. But we don’t just go mainstream looking at what’s on the market and asking banks for loans nor are we posting We Buy Houses signs are just looking for quote “motivated sellers” to make lowball offers to. You see, we are people-oriented dealmakers, we sit down directly with sellers to work out win-win deals without agents or any other obstacles, and buy properties nobody else even knows are for sale. I’m Jeff from a Thoughtful Real Estate Entrepreneur. If you’re the kind of real estate investor who wants a long-term wealth, not get rich quick gimmicks or pictures of yourself holding fat checks on social media. This show is for you. Join me and quietly become the wealthiest person on your block. Now let’s go rack up a rental portfolio.
Hey, thank you for joining me for another episode of racking up rentals. Show notes for this episode can be found at www.thoughtfulre.com/e60. Please do us a big favor by hitting the subscribe button in your podcast app right now superfast. It really does help other fellow thoughtful real estate entrepreneurs to find us. And of course, we’ll make sure that you do not miss any future episodes. So onward with today’s episode.
Now in today’s episode, we’re going to talk about the difference between finding deals and creating deals. Now you might be thinking, wow, that seems like an arbitrary distinction, Jeff, what are you the grammar police or something? And no, I am not the grammar police. Well, maybe I am the grammar police in some other cases. But in this case, what we’re going to focus on is actually not the arbitrary technicality of choosing one verb versus the other. But instead, the important difference in the ideology and the thought process between the two words. So this what they say they say the deals are out there, you just have to go find them. And, you know, in their defense, they mean this in a very encouraging way. It’s meant to say you can do this, and I really appreciate that. But I really disagree with the statement that the deals are out there. You just have to find them. In fact, I’m going to argue for you today that not only do I disagree with that, that thinking that the deals just need to be found is indeed a dangerous thought, so we’re gonna get into that today as well. So why is that the case? I’ll tell you in a minute. But let’s first take a few minutes to unpack the difference between finding deals and creating deals. So when we talk about the word finding something, we’re talking about locating something that already exists, it’s like saying there isn’t the supply of this thing. And it has to be in existence, of course for us to be able to find it. And so our job is really just to locate it.
You know, I actually have got a friend who is a police officer, and he has a canine officer on his team. And this dog is trained, of course to do very specific and very unique things, not the least of which is to be able to sniff out certain things like drugs, for instance. So it’s kind of like saying that we are like a drug dog, like the drugs exist out there. And this dog just needs to find them. And in our case, the deals exist, but we just need to develop our sniffer so that we can locate this thing that already exists. And when you think about finding something, it really kind of implies that anybody could see it if they could just locate it that if any person looked right directly at this thing, they too would agree and go “Yeah, that’s a deal.” Absolutely. That’s what the emphasis of finding is finding is more of the mentality of an investor versus an entrepreneur. And if you have listened to this podcast for any length of time, you’ve actually heard me discuss probably at length, the difference between being an entrepreneur and being an investor and investor has resources, they assemble the resources then they place those resources into a vehicle so they have to find a vehicle into which they can place these resources while entrepreneurs on the other hand, don’t to find opportunities to go create opportunities. So finding is about the location of something that already exists. And anybody if they just could lay their eyes on it would see that it was indeed, a deal. So that’s what finding is about. But let’s tweak our statement. And let’s take a look at what creating means. So instead of saying, the deals are out there, you just need to find them. What if we created a better version of that statement where we said, the opportunities are out there, you just need to create them. So let’s take a second and dissect the idea of creating, creating acknowledges that not just anybody can create, right, creation takes skill, creation takes vision, in the case of real estate, for as thoughtful real estate entrepreneurs, we call this opportunity vision.
Creation takes the ability to see things that aren’t so obvious.
Creation is like finding the ingredients.
But seeing a different way that the ingredients could go together, creating is about is about the ingredients of possibility. And they indeed already exist. But not everybody can see the way that you might arrange those ingredients in a way that is going to create something new and something amazing so that the ingredients exists, but the deal doesn’t exist yet. And as I mentioned a second ago, this is really the mentality of entrepreneurs, entrepreneurs create opportunity, they don’t go find it, and place resources into it, they create opportunity. And then they assemble the resources needed to capture that entrepreneurial opportunity that they have indeed created. It’s about putting pieces of a puzzle together. And you have to know how to do that. And in the case of thoughtful real estate entrepreneurship, we call that deal architecture. And it’s about navigating the people side of being able to see that opportunity vision and put those pieces together. And we call navigating the people side seller relations. So you can see that there’s a really a big distinction between finding something and creating something. So if my friends, canine officer is a great metaphor and analogy for what it means to find something that already exists. I think the show the idea of the Iron Chef is really the best way for us to think about the idea of creating something because an Iron Chef has a variety of ingredients in front of them. And most people would look at those ingredients and say, these things don’t go together. How in the world could you make something interesting, something delicious, out of these ingredients, because you know, normally you don’t put you know, bananas with chili powder, and chicken, those things just don’t normally go together in the same thought. But an Iron Chef sees the ingredients of possibility develops a vision, maybe an opportunity vision, and starts arranging those pieces deal architecture in a different way than other people are able to because they bring their own unique vision to the table.
So I want to circle back to what I said at the beginning, which is that the idea of thinking that the deals are out there, and you just have to find them is an actually dangerous thought. Now, again, you might think, well, that’s kind of a dramatic word, Jeff, why would this be a dangerous thought. And this is really probably the most important point that I want to leave you with. If you feel that your job is to go find opportunity, that means you are not taking responsibility for your results. It’s really kind of an excuse. It’s like suddenly saying, in your own mind, if not outwardly to other people, but it’s saying at least to yourself, Hey, you know what, if I’m not successful, it’s not my fault. If I’m not successful, it’s because the deals, they just aren’t there or they can’t be found. There’s too much competition. And I just can’t find the deals, but it’s really not my fault. It’s not taking ownership or Extreme Ownership of your specific outcomes. It’s passing the buck and saying the deals can’t be found rather than saying, I am not yet capable of knowing how to create the deals. What you need to do is own the fact that you have to develop skills and competencies. In order to be good at creating opportunity. You have to be able to develop skills and competencies such as marketing and building rapport with sellers when those phone calls come back to you, negotiation, and everything that negotiation is from actually talking about the deal to simply getting on the same page with somebody and developing that rapport, you have to have skills in understanding zoning.
What’s possible with that property has a lot to do with this, what the zoning of that property is, you have to develop skills in analysis, and analyzing lots of different scenarios, lots of different ways that this potential deal might come together lots of different physical configurations of this property or different uses of this property that could bring different kinds of income scenarios. You have to develop skills and competency in construction, and the list goes on and on. So in order to be a brilliant Iron Chef, you need to understand the ways that different food, products and ingredients could come together. So that then you have the ability to have a vision for putting those things together in different ways than most people see. And if you are having this mentality that a deal is meant to be found, rather than created, you won’t be owning the fact that creation is a function of your own skill, your own competency, and your own talents. And you won’t focus on building those talents because you think it’s a matter of locating existing opportunities. So in summary, guys, I want you to please stop trying to find deals. You know, words matter. Words matter, because they send a message to our subconscious, our internal minds. And if we use the wrong words, we reinforce the wrong ideas to ourselves. So stop telling yourself that your goal is to find a deal, stop trying to find deals, and instead focus on creating deals and focus on developing the skills the underlying talents, competencies, both the left brain and the right brain that make you an amazing entrepreneur in real estate who creates opportunities because that’s what entrepreneurs do. And in short, don’t be the drug dog. Be the Iron Chef.
That is it for today’s episode of Racking Up Rentals. Again, Show Notes for this episode are at www.thoughtfulre.com/e60. Please do us a huge favor by hitting that subscribe button in your podcast app. And if you’d be so kind, take just a second to rate and review the show on Apple Podcasts. It is really truly helpful to us and we are super grateful for that. Did you know also that we have a Facebook group for thoughtful real estate entrepreneurs as well? Indeed, we do. It’s called Rental Portfolio Wealth Builders. And you could go to Facebook and search for that or just type in group.thoughtfulre.com and the magic of the internet will take you right to the page where you can hit the Join button. If you liked this episode, please take a screenshot of it from your phone post that screenshot to Instagram and just tag us. We are @thoughtfulrealestate. I’ll see you in the next episode.
Until then this is Jeff from the Thoughtful Real Estate Entrepreneur signing off. Thanks for listening to racking up rentals where we build long term wealth by being a win-win deal makers. Remember solve the person to unlock the deal and solve the financing to unlock the profits.
If we talk about Generic Cialis, it refers to drugs-inhibitors. At the same time, it is a medical product and has no relation to aphrodisiacs.