075: Flipping Real Estate and Investing in Masterminds with Bob McIntosh

On this episode of Build Your Network, Host Travis Chappell interviews Bob McIntosh, a national speaker and entrepreneur, number one Amazon best-seller.

Here’s what Travis and Bob discuss in this episode:

  • About Bob McIntosh:
    • One of the founding members of the Forbes Real Estate Council.
    • Published on ABC, CBS, FOX, NBC, Yahoo! News, Small Business, Trendsetters, The Money Show and more.
    • First business venture was into real estate and it’s still one of his core businesses.
      • Flipping houses in Buffalo, New York.
    • Just got lucky in terms of getting on stage and finding his calling.
    • He started to realize that a lot of entrepreneurs were struggling with things that should not be holding them back.
  • Key takeaways from his book “Get Out of Your Own Way.”
    • Helps you realize that you are your #1 worst enemy as an entrepreneur.
    • The thing that pushes you to become an entrepreneur can sometimes hold you back.
    • Sometimes we tell ourselves things that hold us back from reaching our full potential.
  • Have you found confirmation bias in terms of seeing people get out of their own way?
    • In an average crowd, at least 65% are getting in their own way.
    • He sees this all the time, on every stage.
  • When you first started, did you have loads of cash to start flipping with or did you have to get creative?
    • He was broke, the first real-estate deal he did was with his parents.
      • They bombed miserably.
      • Lost $40,000+ of his parent’s money.
      • The key to recovering from that is to realize that he doesn’t have all the answers and he needs coaching and mentoring.
    • In his first deal, he found a local hard-money lender.
      • They paid 15% and five points.
      • They borrowed around $150,000.
        • This means he’s paying around $2,000 a month for the right to use this guy’s money.
      • Once the first deal was done, now he has a track-record of success.
      • The next time the lender dropped to 12% and 3 points, much more standard.
      • Now they have 6 houses actively flipping and the financing is significantly better.
      • Once you prove yourself, money will start coming at you.
    • Ask to borrow money – start with friends and people you know.
      • When he stopped asking for money and started allowing people the opportunity to let him borrow, money started flowing.
    • What was the mindset that allowed him to do another deal after losing $40k of his parents’ money?
      • He knew that the resources on real estate wouldn’t be around if flipping didn’t work.
      • Had to figure out what he was doing wrong and find education.
      • He bought some CD’s and discovered that he needed mentors.
    • Made a promise to himself that he’d pay his parents back every cent that he lost.
    • How can someone overcome not being a risk-taker?
      • If you have zero risk tolerance, don’t be an entrepreneur. Being an entrepreneur is a risk.
      • If there’s a point in time where you’re not taking a risk, you’re probably not growing a business.
      • If you want to feel like you’re a part of something entrepreneurial, go work for a startup.
      • The bigger risk to him was to not have control of his financial future.
      • Any decision you make has risk to it.
      • People with a higher risk-tolerance have a higher belief in themselves.
    • Do you believe that what you know or who you know is more important, and why?
      • Who you know is more important.
      • There was a big factory in his hometown, it employed a good portion of the town.
        • In high school, the factory had a work program that selected exceptional students to spent two days a week on the job with management.
        • The idea was that this would help students stand out after college.
        • He did not get selected for the program.
        • When he found out which six people got selected, every one of them had a parent who worked at the factory.
        • 4-5 of the six were not as qualified as Bob.
        • At that moment it became clear that it’s all about who you know.
      • What you know still matters, but who you know gets you in the door.
      • Forming relationships with the right people will always pay off in the long-run.
      • What you know grows when you’re around the right people.
    • Throughout your career, how crucial have mentorships and masterminds been for you?
      • They are everything.
      • The only reason he’s on this podcast is that he joined a mastermind with Nicholas Bayerle.
        • Nicholas Bayerle connected him with Travis.
      • When it comes to masterminds and mentorships, you need to have three things:
        • Be a part of a mastermind: This is how you meet people who push you and help you get better.
          • When he needs help, that group will be for him.
        • Have a mentor: You’re not paying this person, they just want to see you do better.
          • They provide direction, help and support.
        • Have a coach: This is a person you pay to help you with a specific problem.
          • Nicholas Bayerle is his health coach.
        • Why do you think that a lot of people don’t do masterminds, mentorships, and coaching?
          • A lot of new entrepreneurs don’t know what masterminds are.
          • Definition of a mastermind:
            • A group of people get together with the purpose of helping one another.
              • They provide each other with knowledge, advice, and connections.
            • People have a scarcity mindset,
              • Don’t think, “I can’t afford that.”, think “how am I going to pay for it?”
                • You might not get dollars back out of the mastermind, it might be relationship capital.
              • What kind of car do you drive?
                • A 210 Ford Edge, no frills, base model.
                • He spent $25,000 on a mastermind, more than his car.
              • Too many people view masterminds as an expense instead of an investment.
              • In 2017, Bob spent around $75,000 on masterminds and groups.
                • You also don’t need to go crazy spending money on masterminds.
                • The first mastermind he joined was $2,000-$3,000, and that was a stretch at the time.

The Random Round:

  • What profession other than your own do you think it would be fun to attempt?
    • Teaching
  • If you could sit on a park bench for an hour with anyone past or present, who would it be?
    • Winston Churchill, wants to know what his mindset was to be a leader in the worst possible time and place, and still come out as a hero.
  • How do you like to learn best, books, blogs, podcasts or video?
    • Video and audiobooks.
  • One of your favorite books?
    • Mindset: The New Psychology of Success by Carol Dweck
  • Give us a glimpse of your morning routine:
    • Wake up whenever he wakes up
    • Checks his phone
    • Gets up, gets ready, makes tea
    • Starts work
    • Sometimes gratitude journals.
  • What is your go-to pump up song:
    • Anything by Ke$ha
  • What are you not very good at?
    • Saying no
  • Find him online on his book site: outofyourwaybook.com

Tweetable Quotes:

  • “If you have zero risk tolerance, don’t be an entrepreneur.”
  • “Forming relationships with the right people will always pay off in the long-run.”

Resources Mentioned:

Buildyournetwork.com – Podcast website

BYN.media/fb – Facebook Group

Castbox

outofyourwaybook.com – Bob’s book site

4 Hour Work Week – Book by Tim Ferriss

Mindset: The New Psychology of Success – Book by Carol Dweck

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