Investing Outside of Wall Street – On being coached, an update

Do you know of any professional athletes who do not have a coach?  When you are serious about making money AND building wealth (by knowing how to KEEP what you make) as an entrepreneur – as I have chosen to be in order to sustain my freedom and independence in the United States – it may behoove you to be coached on the how. Saving money by not hiring one may prove to be penny-wise and pound-foolish. Depending upon which training company you choose to work with, the cost could vary between $4,000 and up – way up. Interestingly enough, however, the higher cost does not seem to necessarily equal better results.

It has been exactly a year since I wrote about being coached. This first six-month coaching program ended in June 2013 without a closed deal to show for it. We came very close to closing on some EXCEPT, as it turned out, we were focusing on deal structures which made us very uncomfortable – as we just became aware of some of the changes in the federal regulations that were scheduled to go into effect on January 10, 2014. At the time, however, no one – not even experienced real-estate attorneys – knew exactly what we could or could not do. Subsequently, in order to stay safely within the boundaries of the law, as owners of our company, we chose to kill that business model.

Since August 2013, David and I have been on a second six-month coaching program, offered by another company. Having spent most of 2013 being coached by two different companies – which offer very similar programs – here is an update to my original post on being coached. (Caveat: The list, below, assumes that you already have a good grasp of various methods of investing in real estate, and that you are at a point where you are ready to hire a coach – in order to accelerate your ability to start making money with all the knowledge that you have gained so far.)

Lessons learned on hiring and working with a coach

  1. BEFORE retaining a coach:
    1. Identify exactly which real-estate-investment technique you want to implement.
    2. Write down one S.M.A.R.T goal – exactly what you want to accomplish with the help of the coach.
      • Specific
      • Measurable
      • Achievable
      • Relevant
      • Time-bound
    3. Do your own homework to see if there are any federal regulations (existing and in the horizon) that may render the investment technique – that you are about to learn to implement – outdated and useless.
    4. Clear your calendar for the duration of the coaching program.
  2. Interviewing potential coaches:
    1. Discuss your S.M.A.R.T goal, prepared above, with your potential coaches to determine which one is most likely to help you get there BEFORE the coaching program comes to an end.
    2. Pose a question to see if they know of any federal regulations that may render the investment technique you have chosen to pursue outdated and useless.
      • Well-informed coaches should be able to answer your question honestly and satisfactorily.
      • If you determine that you know more than they do, or that they are not being truthful in their answers, then walk away. Not doing so will result in wasting your time, energy, and money.
  3. Retaining a coach.
    1. Share with your coach your investment history and explain WHY successfully implementing the technique (on which you are about to be coached) is important to you.
    2. Come to an agreement with your coach exactly which technique he/she will help you implement.
      • Include in the agreement the language about federal regulations, if any, impacting the technique.
      • Both you and your coach should sign the WRITTEN agreement.
  4. Being laser-sharp focused while being coached.
    1. Expect your coach to keep you focused on getting you to your first closed deal using that ONE technique on which your coach and you had agreed.
      • Do NOT get distracted with any other investment techniques until you will have mastered that ONE technique PROFITABLY.
  5. Expecting to reach your S.M.A.R.T. goal by no later than the end of the coaching program.
    1. Investing in yourself by retaining a coach should result in a positive return on investment by the end of the coaching program.
    2. Ultimately, if you do not reach your goal, be prepared to blame no one else – least of whom, the coach – but yourself. This will help eliminate any potential excuses from justifying your lack of success.

Happy investing!

 

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