The Power of Mastermind Groups in Multifamily Real Estate Investment
Multifamily real estate investment is a dynamic and challenging business. We have to be quick on our feet if we’re going to keep up with the market, beat out the competition, and build a business that’ll provide us with a lifetime of reliable cash flow.
The question: how do we consistently get ourselves to perform at the highest level?
Napolean Hill was one of the greatest self-help authors of all time, and for decades he talked about the power of teaming up with others to push us beyond our limits.
The idea was simple: when two people get together, a third mind is created: a Master Mind.
The creativity and productivity unleashed by that Master Mind give us more than any of us could ever come up with on our own.
My Experience with Masterminding
When the market crashed in 2008, I lost $50 million in equity.
I was nearly knocked out. And as I struggled to figure out how to pick up the pieces and press forward, I noticed that most of my peers didn’t seem all that motivated to carry on. They were in the same boat I was. I wanted to put my business back together, but I couldn’t find much support.
It was about that time that I learned about Tony Robbins’ Platinum Partnership—a premium group dedicated to people who were truly serious about personal success.
By premium, I mean premium. The annual cost for membership ran well into six digits. For someone who’d just been creamed by the downturn, that price tag was intimidating. But the investment was more than worth it.
In Tony’s group, I met some of the heaviest hitters out there—names you’d surely recognize from the pages of Forbes and Business Insider. Those individuals brought me the wisdom and insight I needed to figure out my way forward.
More than that, they connected me with opportunities. Through one of my fellow Platinum Partners, I was invited to join the Digital Marketer’s War Room and mastermind with even more of the biggest names in business and marketing.
As a direct result of my involvement in both groups, I’ve made millions of dollars. Even better, I’ve gained friends for life. Sooner I became a multifamily mastermind.
The Specific Benefits of Masterminding
You don’t have to shell out big bucks to benefit from a mastermind group. The best groups are often those you piece together with a handful of colleagues.
When you do form or join a group, here’s what you can expect to happen:
As I mentioned above, Hill’s basic argument for masterminding was synergy. Two heads aren’t just better than one; they come together to form a third.
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That third mind will take you further than either of you could’ve gone on your own.
In his 1930 book, The Magic Ladder of Success, Hill likens it to connecting multiple batteries in a single circuit. With each additional power source, you step up the amount of energy overall. Mind chemistry, he said, works the same way.
How might that work in multifamily real estate investment?
To give one of many examples, imagine you’re investing in Pittsburgh, and a buddy is working in Grand Rapids. You’re both struggling to beef up your off-market deal flow.
So, you start getting together regularly to mastermind strategies. Not only do you bring together the stuff you’ve already been doing, but you begin pinging new ideas off one another. Before you know it, you’ve each got 5 new, killer ways to market directly to sellers and it’s all thanks to the “Master Mind” that emerged in your meeting.
This is the kind of synergy that happens all the time in my coaching and mastermind groups.
Motivation & Accountability
Charlie “Tremendous” Jones once said, “You will be the same person in five years as you are today except for the people you meet and the books you read.”
That’s absolutely right.
The quality of your life will always be directly proportionate to the quality of your peer group. Whether your peers expect a lot of you or a little, you will rise or fall to meet their expectations. That’s what I learned when I looked at the people around me in 2008.
Surround yourself with people who doubt their own ability to succeed, and you’ll live down to their expectations. But if you put together a mastermind of investors you admire, you’ll soon find yourself rising to the level of competence in the room.
More than that, masterminding comes with a commitment to one another.
If you’re looking for ways to build your multifamily business, your fellow masterminders won’t just help you come up with new ideas. They’ll hold your feet to the fire and make sure you actually implement them.
One of the most valuable lessons I learned in my experience with mastermind groups was that “proximity is power”.
I’ve sat around a conference table and been schooled by the best in the business. I’ve jumped on conference calls and received wisdom that literally brought millions in revenue. I’ve had some of the most successful people in the world hook me up with exactly who and what I needed to break through to the next level.
That’s what masterminding can do for you.
You may not be well-established. You may not be a millionaire. You may not have access to the heavy hitters who can make or break a large-scale investment operation.
But the degrees of separation between you and the people who can launch your business into the stratosphere are fewer than you think. As I learned, a well-placed connection or two in your mastermind group can change your life and business.
Can’t find a group? Then form one yourself. Connect with a few investors you admire, set up a monthly lunch, and get to work on improving one another’s businesses. As you start to see results, invite in a few more successful businesspeople you admire. Focus on adding value to others, and they’ll return it tenfold.