Episode 010: "Chapter 10 - Mindset"

In addition to removing your ego, you are also going to need to be aware of your mindset. I want to talk about 2 main mindsets that you will likely have to possess in order to have continued success in this industry. There is a reason that so many don’t make it in this industry and I can make a case that those who don’t make it, share a certain mindset and those who do make it share another mindset.

Mindset #1: Short Game Vs Long Game

Unfortunately, the majority of real estate professionals are playing the short game. They are only interested in the NOW. They haven’t given much thought to anything other than what they have in escrow or where they are getting their next client. They seldom look at what their business will look like in 5, 10, even 20 years into the future. This, in my opinion, is why they have so much trouble with change. Things are working fine the way they are, why change it.

I am always intrigued by agents who tell me that they won’t give up a “split” because they already make 100%. The reality is… you’re not making 100%, but keep telling yourself that. (I actually spoke with an agent recently that was paying over $12,000/yr at  a “100%” broker)They look at me like I’m an idiot because I give up 20% per transaction. With a “short game” mentality, you are right, giving up 20% seems like a bad idea, but if you pan out for a moment and look at the “long game”, you will see that even though I gave up 20% of a certain number of transactions NOW, I collected well over 100% by the end of the year.

Most agents cannot grasp this concept because they are solely focused on, “what do I get now?”. So when they see that they have to give up 20% initially, their mind just shuts down.

Mindset #2: Employee Mindset Vs Business Owner Mindset

Again... unfortunately, most agents fall into the “employee mindset” category. This isn’t entirely their fault though. A large number of agents get into the industry were previously employees, not business owners. Just like myself, I was an employee when an agent came in, grabbed me from the workforce and put me in a position to fend for myself. I went from someone telling me what to do everyday, something I didn’t have to think about, to someone who had no real training on what to do as a business owner.

In my opinion, agents and brokers collectively have to assume some of the blame for agents not having an “owner mindset. It starts with managing expectations. When I got into real estate, this agent that approached me said, “you’ll make 6 figures effortlessly?”. After being in the industry for over a decade now, I would say that my expectations weren’t quite managed after that statement.

The difference between an “Employee Mindset” and “Business Owner Mindset” is as simply described as this. In a restaurant, in order for a server to make more money is to serve more tables. That is no different than a real estate agent selling more homes. It is more work for more money, single input/single output. A business owner looks at that same restaurant and adds more tables, and maybe more servers to leverage his existing business to increase revenue. That is single input/multiple output.

In order to leverage your existing business, you will want to have a business owner mentality. This will help you realize the true potential you have at your disposal.