Top 5 Takeaways From BEC2020 Part 2
BEC2021 is less than 24 hours away!
Yesterday, I wrote a blog post that highlighted the top takeaways from the first day of last year’s conference, giving you a behind-the-scenes look at what to expect Thursday, Friday, and Saturday.
In this post, we will focus on the top takeaways from day 2.
The Life of a Champion
Andre Reed, NFL Hall of Fame
Value your huddle: Everyone on your team needs to be on the same page. Everyone needs to know what the game plan is and everyone needs to execute the game plan. Everyone needs to respect each other and listen to each other’s input and feedback. Champions lead by influence, not authority.
Know your role: Champions know what they are the best at and what everyone on their team is the best at. Everyone focuses on their strengths for the betterment of the team.
You win some and you lose/learn some: Champions know that things will not always go according to the plan. They know how to handle things when everything goes wrong and make it out the other side stronger.
Champions aren’t randomly made: Being a champion is not based on luck. It is not a shake of the 8ball. It comes from hard work and following the three lessons above.
Multifamily is the Most Lucrative Real Estate Investing Strategy
Mark and Tamiel Kenney
Multifamily is the best asset class to invest in.
Multifamily has better economies of scale. You can secure nonrecourse debt on multifamily whereas you are personally liable for the recourse debt secured on single family.
You can hire a 3rdparty to manage multifamily whereas you’ll likely self-manage your SFRs.
The value of multifamily is based on performance whereas the value of single family is based on comps.
You can go bigger faster with multifamily.
Demand for multifamily isn’t going away. Traditionally, people transition from renting to buying when they get married and start a family. Currently, millennials are delaying marriage and starting a family, so they are renting longer.
As a syndicator, you can truly make money with $0 down through the acquisition fee, the ongoing asset management fee, and the profit splits. The limited partners must invest money to make money.
Three Secrets to Achieving a $100M+ Net Worth
Richard Wilson, Family Office Club
1. Play a unique game: Come up with a way to separate yourself from your competition. You need a hook. Are you offering a unique product? Or you marketing in a unique way? You need to figure out what you can do to differentiate yourself from the pack.
2. Create a barrel of fish: One of Richard’s competitors sold their family office for $500 million. The business revenue didn’t support the $500 million valuation. Rather it was the network that was being purchased. Revenue is great but having a barrel of fish – a strong network – is even more powerful and profitable.
3. Find a choke point: When you find a situation in business where you or someone else struggles and you have a way to relieve that, it can be very profitable. Find out what someone’s pinch point is and create a business that solves that problem.
How to always hire the right team member
Scott Lewis, Spartan Investment Group
Hire team members with experience, which is a combination of skill and luck. Focus on the skill sets your business needs and hire people with those skill sets. Team members must have good character so that they are ethical and responsible when a deal goes bad. Create a culture with a mission, a vision, and values to attract team members who align with that culture.
Three questions to ask potential team members are 1) what is your leadership philosophy, 2) tell me about a deal that went sideways and what you did, and 3) what is your due diligence process.
#1 Way to Quickly Create More Content
Neal Bawa, Grocapitus
You don’t scale by adding more content. You scale by repurposing content.
Neal’s objective is to repurpose every piece of content at least 10 times. If he records a 1-hour podcast, he will create 1-minute videos and post them to YouTube. The best YouTube videos are pushed to investors and put into an ebook. The podcast and 1-minute videos are also shared on Facebook and LinkedIn. Etc.
To hear more actionable advice from veteran commercial real estate investors, make sure you attend BEC2021 this week. Click here and use the code WINNERS30 to get 30% off your ticket.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.