Getting Started In Real Estate With The Other “A” Word, Accountability

How many times have you heard it on a pod cast? Or read it in a book, or had someone offer you it as advice? “The Key to success is taking action”, for me its countless, I would say it’s the number one piece of advice I have received, read or heard in one form or another, its everywhere.

“Disciplined, consistent, and persistent actions are more of a determining factor in the creation of success than any other combination of things.” – Grant Cardone

Can taking action be the key to the kingdom? If you search on the google machine for quotes on action, you will find the above and a litany of others all saying the same thing. Surely this must be sound advice, action must be the key, and it is. The key to success in any realm is taking action, whether its real estate, marriage, parenting, finances etc… action is the key. This however, is not breaking news we KNOW this, it is preached by everyone, it is shouted from the roof tops, it is information that is given away for free anywhere you turn. It’s a simple concept that most of us grasp, there is nothing earth shattering about the idea of “if you want something you have to do something”. We do it every day, if you want to watch TV you have to turn it on, action, if you’re hungry you have to eat, action, if you are still binge watching NETFLIX you have to click the yes I’m still watching button, again action. We take actions all day every day to achieve the things we want, so why is it that we struggle with taking actions in other realms? Why is it so easy to take small actions all day long in some arenas and yet so difficult in others. What is the barrier to action? What hurdles exist between us and the elusive action when it comes to Real Estate Investing, Stock Trading, Running or Starting a Business, Taking the leap into just about anything?

If you’re still with me great! Before we get to far down the rabbit hole, no this is not another post about action, that subject has been covered, I’m sure in your head you were already thinking “here we go again”. This is about another “A” word, one that doesn’t get nearly as much playtime. This is about ACCOUNTABILITY, a subject that comes up far less often, I believe because it’s uncomfortable, it doesn’t resonate the same way as action, everyone wants to be accountable but no one wants to be held accountable. Accountability is often associated with punishment, pain and suffering however these negative connotations only come into play when we lack accountability not because of it. As we will discuss however accountability is tied to action, they work hand in hand and seldom does one occur without the other.

“Accountability Separates the Wishers In Life From the Action-Takers That Care Enough About Their Future to Account for Their Daily Action!" - John Di Lemme.

Over a decade ago my wife Jennifer and I sat down and had a conversation, we had just bought our home and realized how easy the process was, flipping houses was just starting to become popular, and the real estate bug had hit us. We discussed how easy we thought it would be to get into the flipping business, we had the time, we knew a bit about rehabilitation and we were in an “ok” financial position, we ended the conversation with a plan to be into our first property within 12 months. Sadly that was the extent of our flipping story, 12 months came and went, we talked about it some more haphazardly but it just never really came to fruition, the plan died as soon as that first conversation was over. It would be several years later before anything started happening. There was no action, there was no accountability just a desire, a wish but nothing else. We never had enough time, or money, or knowledge, there was always something else in the whirlwind of life that got in the way.

I am a 22 year veteran of the United States Navy, I currently serve as a Senior Chief Firecontrolman, and I was eligible for retirement 2 years ago. As I was prepping to retire and trying to figure out what I wanted to do when I grew up, I started looking at my options, preparing resumes and networking. I was deployed on a ship to the Persian Gulf, I had a lot of time on my hands but very few resources available and frankly I was bored so I reached out to a friend and asked him if he had any books on PDF he could send. He obliged and over the next few days he had sent a handful of books, most of which were centered on real estate and investing. Of the many titles he had sent one in particular caught my eye, for obvious reasons at that particular point in my journey, Blue Ocean Opportunities in Commercial Real Estate by Cherif Medawar. Although the book is by no means profound, I’m not sure that I finished it to be honest, it did peak my interest, and is ultimately responsible for everything that came after, and the boredom that spurred the email exchange was the catalyst for my entry into real estate.

I decided I wanted to be in real estate, I had no idea what that meant but that’s what I wanted to do. I still however had no idea how I was going to make that happen, as I knew nothing about the subject aside from what I had learned in half of that book. So I tried to figure out how to learn more, I found a plethora of courses, gurus, seminars and online courses. Momma didn’t raise no fool and I was not going to fall for the get rich quick, or double your investment type sites, but again I knew very little. I figured I would start by taking a real estate licensing course, after all they are approved by the state so at the very least they have to be somewhat legitimate. Over the next few months I took my RE license course, I also found bigger pockets, and ordered a bunch of books I immersed myself into everything real estate and I learned a ton. Still however I had taken no action, I had invested in myself through books and courses but those are motions not actions, I hadn’t moved any closer to being “In Real Estate” then I was 10 years ago.

During my retirement preparations I had reached out to a veterans organization called American Corporate Partners (ACP) one of the services they provide (free of charge) is mentorship programs. Initially I had inquired about being paired with a mentor in the technical field as that was my current field and inevitably the field I would pursue upon retirement, thankfully they had a waiting list and by the time my turn came around I was all in for real estate. This posed an issue for ACP as they did not really have any partners in the field, then I got a phone call one day that they had found a match. The gentlemen they found was described as “High Profile” and a big donor, I had to promise essentially not to embarrass them and to stick with the 12 month program and all that would be asked, I somewhat reluctantly agreed. Donald was my mentor, he had a portfolio in the billions, worked out of Manhattan, and got his start in hotels (before you get to excited or infuriated, it is not that Donald), he now focused on residential real estate development. Donald and I spoke at least once a month for an hour or two on the phone, most of our conversations were light hearted, he would give me advice and tell me I was doing all the right things, and heading in the right direction and usually either send or recommend a book. About six months in however the conversation started to shift, he would ask “I’m not sure what I can do for you Doug” and “Doug you don’t need me, you got it”….

Donald sent me two books at the six month mark, Who Moved My Cheese by Spencer Johnson and Make Your Bed by ADM William H. McRaven (USN RET) with instructions to read them before our next conversation. The books were easy reads that seem almost too basic, almost children’s books and before I actually read them I was a bit annoyed by the request I could not see how a couple little self-help books could get me closer to being “In Real Estate”. These two books however teach more about taking action than anything else I had or have read, I recommend them to just about everyone getting started and they have become two of my most treasured possessions. During our next conversation Donald closed with this “Doug I need you to do something for me, before we speak again I need you to cold call 5 people, 5 owners, 5 sellers, 5 buyers it doesn’t matter but make 5 cold calls” and he ended with this “make sure you make those calls, don’t schedule our next call until you do!” to which I reluctantly agreed. Cold calling was, and still very much is, something I despise, its uncomfortable, it makes me anxious I just don’t like doing it and I have justified not doing it over and over, it would be roughly a month and a half before I made those calls.

My experience with ACP and Donald was fantastic, it made me take action. It wasn’t till much later that I realized that it accomplished this through accountability, I was accountable to ACP not to embarrass them or jeopardize their funding, and I was now accountable to Donald a complete stranger. Being accountable forced my hand, mainly because I did not want to be held accountable for failing to do what I said I would. In the service accountability is a big part of our life but until then it was just a big part of my life in the service, unfortunately after my run with ACP I would find myself in another rut of in activity. I would establish a plan, and then I would justify my way out of or around it and I got very little done. I was an active Real Estate Agent, and a REALTOR making a few sales here and there but not really “In Real Estate” yet. Things would remain dormant for several months, then I would form a partnership with two other individuals, one of which was the guy who sent me that first book. Much like before things would again start moving, we would communicate almost daily and we were off to the races. Our first deal took 13 months of researching, mailing, calling, driving and grinding to get done, there were lulls however mostly when we weren’t communicating often. We now find ourselves holding and partnering in more than 50 units.

The difference between that 13 month period and the years that had passed since that first conversation with my wife over a decade ago was accountability. I was accountable to my partners and them to me, we had open discussions about what we were going to do and when. When we didn’t meet the mark we talked about it and we got whatever the issue was fixed, we held each other accountable. In the beginning this was much more common than it is now but it still happens. In the 7 or so years that preceded I was accountable only to myself, when I failed to meet the mark I justified why, my justification to myself was always good enough. However once I owed something to someone else it was a different story, I had a shift in mindset, now whatever justification for inaction I came up with was never good enough I was able to see it for what it actually was an excuse.

In the Military I often ask my subordinates “are you giving me an excuse or a reason?” they are two very different things an excuse is why something didn’t get done, a reason is why it couldn’t get done. Although they are two different things the difference between them is justification, an excuse that you can justify becomes a reason, and a reason you can’t justify is simply an excuse. Justification is the enemy of accountability and usually where things begin to go wrong, accountability to ourselves is often the most difficult because of justification. We can easily as I did for years justify to ourselves why we didn’t get something done, done right or even started. We tell ourselves “there wasn’t enough time in the day”, “things popped up”, “I don’t feel well”, “I’m to tired”, “I haven’t had my coffee yet” etc… we then come up with a deal that we will get it done on a later date or it doesn’t NEED to get done at all. Its easy to justify these excuses to ourselves after all we want it to be ok, both the sender and the receiver want the same outcome, we are avoiding confrontation with ourselves. Imagine however giving those “reasons” to someone else, your boss, your spouse, your kids, or even your parents would that justification still hold weight? There is never enough time in the day, and your day has just as many hours in it as the next guy or gal and things always pop up. I found holding myself accountable to myself to be the most difficult and for years I could not even see that it was a problem, it is still very much a struggle and I am aware of it, I still catch myself justifying inaction with no consequence.

It took me finding someone to hold me accountable in order for me to understand and realize the importance of accountability as it relates to action. It took accountability for me to change my mindset from that of desiring to be “In Real Estate” to being “In real Estate” from wanting to be successful to actually taking action to ensure success. The difference between being an amateur and a professional is accountability, Professionals hold each other and more importantly themselves accountable for not only their actions but also their inactions to ensure success, amateurs hope that their actions will be successful.

“There will be 100 reasons to say no, I’m asking you to find one reason to say yes” – FCCM Rick Holland (USN RET)

What separates you and I from the Donald’s of the world is mindset, it’s not enough to want to take action and be successful or even to think you can take action and be successful you must believe that your actions will be successful and know if and when you fall short you will take actions that will ensure success. There is always 100 ways to justify why you didn’t or can’t do something, when we shift our mindset you find yourself wading through all those ways to find just one way to justify doing it. If you are finding yourself like I was, spinning your wheels and struggling with taking action find someone to be accountable to, who that is doesn’t matter very much it could be anyone, a business partner, spouse, child, friend, priest, rabbi any one that will listen and provide feedback the shift in mindset this provides is the target accountability will lead to action, action will compound and lead to substantial action, substantial action leads to and ensures success it really is that simple.

For those of you still with me thanks for reading, now go out and do something….. Step on the gas, move the needles and get after it! What can you get done today?