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WARNING DON’T GO BUST: Real Estate Investors & Entrepreneurs The Market was Easy the Last 2 Years

Video Closed Captioning:

good morning good afternoon good evening

folks Michael Zuber with run retail at a

time back with the one and only Mr Greg

Dickerson how you doing sir doing great

Michael how are you today I’m doing

wonderful man I love getting to talk to

you bright and early Monday mornings my

time get to ask you very unique

questions I’m lucky enough to talk to

now 10 millionaires every week but you

you have a unique skill set both video

number one you were a builder of luxury

and first-time homebuyers video number

two you are an entrepreneur your story

of a truck in a toolbox made it in my

second book 15 conversations with

millionaires so I’m going to ask you to

put on your entrepreneur hat not that

you ever take it off but let’s put that

one on specifically and I want to talk

to you as an entrepreneur an experienced

entrepreneur somebody who coaches and

helps other entrepreneurs get started I

want to ask you what do a lot of people

kind of

almost have over confidence on when they

get started and equally maybe some

things that they are too concerned about

when they get started because I think a

lot of folks when they enter

entrepreneurships they probably are

overconfident here and they’re too

scared over here and it’s there’s a

mishmash of things going on what do you

think yeah it’s it depends on the

individual it’s all over the map but you

know with a lot of people they think

more about the problems and the hurdles

than they do the gold that they’re

trying to achieve so the best thing to

do is you know think about the problem

you’re trying to solve get after it and

then the other things will take care of

themselves but a lot of people just

think about all the little different

things that are the little roadblocks

that might be in their way or things

that they have to do or hurdles or

whatever and then like you said on the

other other side of the coin a lot of

times people will underestimate what

they’re actually capable of and you know

you’ve heard the saying where you know

most people under overestimate what they

can do in a year or underestimate what

they can do in five years or something I

can’t remember what the saying is but

overestimated air underestimating five

yeah yeah yeah at the end of the day a

lot of people underestimate what they’re

actually capable of in the long term

because most people can’t think you know

long term in that way and then you have

the other side of the coin where people

are just overly optimistic and way

overestimate their capabilities don’t

understand their limitations therefore

they don’t know how to fill in the gaps

with their weaknesses and their

limitations

um but I’d say you know the biggest

thing is people focusing on uh what can

stop them which is limiting belief

versus focusing on the problem you’re

solving and just getting after and

providing Solutions yeah one thing

that’s similar about our background in

this respect only is is

um for the last 10 years of my career I

managed first or second line sales teams

and I always looked at a sales leader as

an entrepreneur right you own these 10

accounts you own this patch of dirt you

own this whatever and it’s your job to

extract a certain amount of Revenue it’s

called a quota from that area and the

entire organization right everyone

around you from product engineering to

marketing to customer service to all of

them they’re here to use to help you but

they also can be a distraction let me

explain

right when you when you’re a salesperson

there’s there’s no lack of people trying

to help

and what I’ve always told sales teams

right because again I got on stage and I

spoke to teams is I want everybody in

the room who’s not that doesn’t have a

quota to think about this

every sales rep in this room has a

backpack

and in that backpack the first thing

that goes is my quota

they have to deliver two million bucks

in 12 months for example

now I know all of you want to help and

you want references and you want to get

customer support tickets and you want to

get maintenance renewals and you want to

do all these things I want to I want to

ask everyone else around this are you

adding rocks to their backpack making it

harder or are you actually making it

easier right and the reason I bring this

up is because what I see a lot of sales

people do and I must have worked with

over a thousand of them

is and I and I want to ask you this as

an entrepreneur to see if it’s the same

some sales people get focused on being

busy

and don’t focus on what actually drives

Revenue so they come to all the meetings

and they got all these other people

doing all these amazing things but

they’re behind on their quota because

they’re not doing Revenue generating

activities and I think there’s a lot of

entrepreneurs who get distracted in

being an entrepreneur and system and

processes and they forget where the hell

is the revenue coming from so is there

that kind of distraction or not really

yeah absolutely I mean what you’re

talking about is just people don’t want

to pick up the phone and call you know

so it’s just they’re afraid of rejection

you know they have that resistance a lot

of it too is your your network people

that are around you and other people

that don’t think what you’re doing is

possible because they haven’t done it

and they’ll try to stop you so you know

listening to other bad influences uh

that can stop people but for an

entrepreneur specifically

um not focusing on the right things when

you’re starting a business which again

the right thing is uh you know focusing

on the problem you’re solving and as

soon as you can filling in the Gap so

that you can give away all the little

things as an entrepreneur you’re a

creative Visionary somebody who has to

like you know get after and think you

know you’re not necessarily the guy that

needs to be filling out spreadsheets

right so you can you can get distracted

you know doing order fulfillment

customer service all these different

things when when an entrepreneur is is a

leader a Visionary you’re supposed to be

building the team that can solve the

problems that you lead down the field so

you know the analogy I always use is the

head coach of a sports team right the

head coach’s job is not to play every

position the players are doing and all

of that you know the head coach is to

lead the organization they’ve got

assistant coaches and then you’ve got

the players and you’ve got all the

support around it so for a lot of

entrepreneurs they get so bogged down

the details because they can’t let go

they don’t know how to let go and they

don’t know what systems put in place so

you need people need systems and you

need uh you know the ability to execute

and focus on the right kpis as you get

going along so that’s getting a little

deeper than what you’re asking but at

the end of the day for depending on what

people are doing a lot of people just

don’t want to do the work you know they

just get distracted by other things they

just don’t want to do what they need to

do which for sales it’s picking up the

phone you know for an entrepreneur you

know it’s finding the right people and

letting go of that control and

delegating and uh you know filling in

your weaknesses instead of you know

trying to build on your weaknesses

delegate that out focus on your strength

and then get after it yeah I think

there’s a lot of things when I look at

entrepreneurs and I bring up

entrepreneurs because I think there’s a

lot of of Real Estate Investors whether

it’s wholesalers flippers you know of

that Oak that have had it really easy

the last two years

and I’m already hearing from many of

them that are pretty stressed out right

they’ve already burned through their

savings they maybe have too many

projects going on they’re going to lose

some money on and and when I kind of

talk to them one-on-one

it

they got high on their own Supply they

didn’t realize the market made them uh

and two they seem to have put layers

between them and revenue right they

they’re playing they’re playing like

Master operator but they’re not actually

in control of the revenue anymore and

they wonder what’s what’s going on uh

maybe I you know it just seems Seems

like there’s a lot of pain coming to

some investors who uh don’t realize that

the market made them well it’s investors

and businesses because you know the cost

of capital so anybody who has to

refinance anything whether it’s you know

corporate debt whether it’s real estate

debt whatever uh that’s number one

that’s you know there’s going to be

companies going out of business because

they can’t refinance their debt uh

there’s going to be Real Estate

Investors that have properties that they

have to refinance that’s not working or

they have adjustable rate you know

mortgages that are going up uh and then

you have the ability to adjust and adapt

to a changing Market it’s like I said

when it’s going up you lead the market

up whatever you sold yesterday you sell

for 20 more today you sell for 20 more

tomorrow when the market is declining

whatever you bought yesterday you buy

for 20 less today you buy for 20 less

tomorrow as the market is declining it

takes a while for that to go through the

seller’s heads and a lot of people are

fooled by you know little market

movements and things like that and uh

you know but we’re in it we’re in a

declining market right now real estate

values are adjusting so you have to kind

of hold firm and hold your guns and you

can’t expect values to go back where

they were in anytime soon unless rates

drop all of a sudden back down to two

and a half three percent yeah when you

look at entrepreneurs uh and you’re

coaching someone I’m sure you’re

coaching lots of people so right when

you’re coaching a new entrepreneur who’s

gonna about to launch an initiative into

a changing cycle right I I think you and

I always talk about Good Times Never

Last bad times Never Last I think it’s

very clear that the good times are over

for a little bit now what are you kind

of telling them to get right are you are

are you saying go hard and fast are you

saying hey watch your Burn Right In the

Beginning uh have extra reserves how are

you coaching them as they get ready to

launch into what you know clearly could

be a recession and some are calling for

a you know either a long or a deep

recession yeah so it depends on the

market you’re in obviously you want to

make sure that there is opportunity you

know in the market that you’re getting

after but yeah you want to be a little

more lean than you were we’re in

uncertain times in a lot of different

ways from an economic standpoint you

need to understand who your who your

client is who your target is what your

Market is who your competitors are I

mean there’s a lot of things you have to

be be a lot more sensitive to now

because the economy is Contracting you

know people are pulling back on their

spending in all levels you know but at

the same token There’s real

opportunities out there a great time to

start a business in defense right you

know defense spending is going to go up

and through the roof all around the

world so I mean in every environment

there’s always opportunities you know uh

there’s opportunities in debt

restructuring there’s opportunities and

you know I mean again where are the

biggest problems that you can solve and

you’re going to have problems in every

environment and then you have to go

where uh you know where the

opportunities are where the capital is

flowing into but you know in these times

you have to you know well I’ll tell you

what’s over are the the valuations that

we’ve seen in the past like people that

want to start something think they’re

going to get 20 30 40x and I’m and I’m

coaching people that are looking for

exits I’ve had to rein in their

expectations on multiples because that

has changed because cost of capital has

changed so you know the deals that were

done over the last two years you know

aren’t being being done right now but

they’re still being done you just gotta

you know bring rain in that level or you

wait so you know if it’s an existing

concern they’re looking for an exit

you’ve got to tighten the range you got

to focus more on uh Top Line Sales and

earnings and produce overhead you know

reduce that that spending uh that was so

easily prevalent in the last couple of

years and in those you know exit

expectations so yeah that’s that’s kind

of where it’s at now but there’ll be

opportunities but you know it’s just

these there’s very uncertain times right

now nobody knows what the outcome is

going to be but we’re going to talk

about that in video number three kind of

asked you to put your uh you know Back

to the Future head-on and talk about

2023 I’m looking forward to that but

when I you know if I were to summarize

Greg Dickerson if I were to introduce

you on stage is I would say something

like he’s he’s generally the most

optimistic you’ll see opportunity

everywhere that’s that’s kind of how I

feel when I speak with you like

opportunities out there you just have to

look for it maybe you have to look a

little bit harder now but it is out

there kind of wrap this up for us and

tell us where uh people can find you

yeah Greg dickerson.com that’s where

you’ll find the Eternal optimism in all

situations but also very calculating of

the risk as well that’s something I

learned because it was yeah only for me

before 2008 I went through 2008 and I

learned it’s not always up only it’s not

always up that’s right I like that

calculator risk but again I do think the

uh the the the slant toward optimisms

helps you be more creative and that’s

what I think wins in When the tide goes

out is being creative because in the

market we just saw cash one cash was

cheap risk was zero in the market that’s

coming up whether it’s restructuring or

this or that being optimistic allows you

to see creative ways and I think that’s

why you and your students are going to

crush it so Greg thank you so much

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