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Forum Stats. Users Online. Really good to have you. Brandon: All right good good. As soon as I read this book. Actually true story, how I found this book. I got the book from the library. I read the entire thing in like a day and then I turn around I got to the end and started it over and read the whole thing again. I have now read it five or six times now. I fell in love with a problem. Chris: This has been like Ritalin for me.
Chris: Ship tends to run pretty strong in the entrepreneurial world. We are idea people. Brandon: Figure out the solution to things and being able to work through it. He has this quote that I use all the time. It says, if more information was the answer then we would all be billionaires with sixpack abs. Right and I love that quote because like it just shows that information alone is not what we need. Why should I listen to this? Because all the people just want the information.
Like I told you earlier before we started recording all I did in the beginning was read real estate investing books. I wish I would have started reading books like this earlier on. Can you talk about why like why is information not enough? Why is just knowing how to do something not enough?
Okay so small business. Chris: All over. Like just get them out to everybody. I said you have teenagers. Put it in memo form and then just give it to the kids. Brandon: Yes. It is. Yes and I struggle a lot with like this idea where I know I should do things and I know that like. I think everybody and maybe there are some exceptions out there, but to my knowledge everybody has a generic universal human flaw.
I want you to think about that some people have a hard time with that distinction. Chris: Urgency is anything that requires immediate attention. Importance is just the relative impact and we know that this exists. I got to have three hours of concentrated time. Why did I just open that email? What is wrong? Right oh how did it get to be four.
Those activities will never feel as urgent as the day job. What we call the whirlwind. They say the beginning of wisdom is the definition of terms. Like the whole conversation starts by sort of delineating in your mind, in every entrepreneur, every person can do this. Everything I have to do to maintain the operation.
That has an inherent advantage that it always feels urgent. The problem is I have an internal built in default that takes me the urgency. I knew I should have done this research three weeks ago. Now I got to make a decision. How did I get myself in this mess? Like the one thing. Chris: I got to get the kids.
Chris: And you know the computer just broke and da da da da. It will fill the available time allotted. Chris: You can be congratulations. Chris: You got to break. Some of the best books out there are the ones that have put words to like the feelings that I had that I knew existed.
Like this a reality right? Brandon: Right because it like put words to what we all felt. Like there was something there and it was like oh now I get it. Cash flow or you know wealth, financial freedom, and like this book what it did for me is that with that term the whirlwind like I identified because like I was like well how do I get this stuff done?
Those are books that I love or any book on like you need to focus. You need to focus. Like I know that. Chris: You said it just right. Chris: Those two things. All right, I have to respect the day job. If I ignore the whirlwind I die today. Chris: Right I was a groupie of his in the early 90s right. They literally, I got called into HR. Like Kramer got fired right, but. Chris: I was so taken with him and it was this one idea. Covey believed that the real magic was in principles. Best practices were kind of a dime a dozen, but if you could find a principle.
It was like a law of nature and would have universal application and it would always be relevant. We took a Stephen Covey approach to say okay where is the principle? What are the principles for overcoming that?
They are universal and apply to everyone so that was kind of the. Brandon: Okay. Again because you can go through weeks or months of your life and not have had made any impact on like the important thing. Like the actual goals you have and so. Brandon: No one is going to define the problem.
This is what and I think we all know it exists. Like you said. I mean like. Brandon: Go one by one through them and I got a ton of questions for each of them. How do we pull that point in this? Chris: All right, the first one is focus on the wildly important. Chris: What this is about is really the delineation in my mind.
This is about delineating between the day job and the plus one. When Marriott rolled this out one of their leaders said you know to a group that was piloting it. You know hey in Marriott if you want to keep your job manage the whirlwind. You want to get promoted give me one more. Give me a plus one and you think about it for a small business owner.
Hey if you want to stay employed, if you want to survive, you want to pay your mortgage manage your day job. Chris: You want to grow. You want to hit your goals. The four disciplines are treatment. You apply to a target. Now I say that and you cut me off whenever you want to jump in, Brandon. You cut me off.
Chris: Let me just put one quick caveat that I wish we would have emphasized more in the book. Chris: You just gave it a label. You cheated. If I could get every new associate to pay for themselves the the first year I am unstoppable. Right I want to make sure that every deal I turn has a net return within a certain amount of time. Then finally, last piece of this one one is it cannot stay a concept. Chris: Lead the world in space exploration was a concept.
Chris: Right put a man on the moon by the end of the decade and return him safely home is a target. Targets have three components. They have a starting line. They have a finish line and they have a deadline and they have to be stated in a numeric. Very difficult to execute on a concept. Because once we had that, we crushed them. Right right it is a metric on its own.
It is a measure and that we call the lag measure of execution. Like if you were to say from you know pounds to pounds by February 3rd. Chris: Now right. Lose weight is a concept. Perfect Brandon. I want to have more money coming in from my business or my investments than what I spend every month.
A ton of people that listen to the show have that concept. When are you going to get there? And so, but I want to take that. Is it okay just to have a wildly important goal like your wig. As you kind of called it in the book, a wig. Is it okay to have a wig of okay good. Like is it okay to have a wig that big and far away or should people focus setting smaller. You can have other goals, other objectives, other things that you want to go after. Like I can have a purpose statement. I can have a future objective.
Call it what you want out there. Chris: To think small is superhard for some reason they always want to go up top. I was can I give a little example? Chris: Yes. Again a bunch of different groups of people to do different stuff and one was a small accounting firm and they had as their wig like everybody does revenue this year. They said okay, you can do that, but all your activities lead up to that.
Like to your audience I would say is there a type of investment that really rings. Or is it the Bachman Turner overdrive concept that any love is good love. Chris: Or is it then he said no no no advisory revenue. Chris: And wow, when we get one of those it really rings the bell. I do it at BiggerPockets every like three or four months. We even wrote a journal around it called The 90 days of Intention Journal. Anyway so like. Chris: No, not. I tell you what I like about what you said is that it feels like a sprint and not a marathon.
Chris: If I can see the finish line like we somehow default into these annual goals and sometimes I like 90 days. As a matter fact we got a team in Australia. They started running 90 day wigs with their clients. Chris: To see if they can get more energy out of sprints and now the bad, the challenge is you got to reinvent it a little more quickly.
How human beings respond to this gaming notion. Chris: Building a game for myself all of the sudden I have all this energy. Brandon: If you got a year to buy a rental property, you got a year to flip a house. Guess what? On like December 21st. I added them up and I had I was like well shoot so I mean I did it. I went and I had nine days or whatever to buy another property.
I bought one, but like I could have done it in 90 days probably. Chris: Yes, go back to the initial problem. The initial problem was the urgency fixation. Chris: Well we in four disciplines. We trick the brain. Brandon: Yes, I love that. That is an analogy you use in the book about battles, winning the war. Brandon: Right you mentioned a second ago about like the goal should support the macro.
Chris: Yes, yes. Well we had to create some language to work with this. By spreading it, by multiplying targets so for instance, with the NASA and this is where we got the construct from. In NASA, put a man on the moon and return him safely home by the end of the decade. If that was the war, there was a NASA engineer who asked the question what are the fewest battles necessary to win the war? We think this goes back to West Point.
We think this is rooted in sort of military psychology. NASA came up with three battles. This just opened my whole brain. They said navigation, propulsion, and life support. Navigation right. Chris: If we could do those three things, we could do the impossible, but then all the functions within NASA were able to line up against those three objectives. Everybody had their day job plus one. What are the fewest battles necessary to win the war? Sometimes they call them turn around.
They like do the four disciplines without the language. Like what you were talking about Brandon. Brandon: Perfect. All right so a couple quick examples of real estate related. Brandon: In my own personal life so I have a kind of a vision or a goal you know long-term.
I want to have thousand units in the next three to four years. Brandon: A thousand years right. I mean like people will be like well yes, but you could buy a bunch of bad units. Well I know that. Chris: Yes, yes you can have an asterisk. You can have a contingent. Brandon: Yes, yes. Between January 1st and the end of March I was going to double my cash flow and I was going to do so by so as again from like from X amount to cash flow to Y amount and that sounds ridiculous, but I had a lot of holes in my bucket basically.
I had a lot of cash flow leaking out all over because. Brandon: We know why I just lost a lot so anyway so the older one. Go ahead. Chris: You have to bring that down. Yes and a lot of times a wig is a project. Lives out here in Hawaii near me and Ryan, I basically put him in charge of vacancy. In other words, so his battle to fight the war was hey. Brandon: I knew that if we could just fix that problem and so I gave that to Ryan.
He nailed it. Last week actually we just ended our first 90 days. Chris: When you started the podcast with Brandon when you said if it was just information. Chris: Because people always look at this and go I already knew that. Chris: Yes, we know you knew it. Chris: Because everything you said sounds right now pitch perfect to me. Chris: Like for the first year this kid was so frustrated with the language and the minute the language started to come on man he—they love him down there.
When you got it down to that focus and you got it down to that target, yes now now all the sudden for whatever reason things start to happen. It starts to move. Brandon: That makes sense. That was—I mean it was like because I have a hundred units. We talked about that. Brandon: Yes, it is. You know of more income coming in. Like that was a huge chunk of my goal to double to fix the holes in my bucket and double my.
It really is—will power has got about a three week half-life on it. Chris: It just disappears. Chris: Right, but if you can initiate a process that applies deliberate focus and they can come out of very specific targets. If we really could do that one thing.
Chris: I like tight. I like specific and I like ripple effects. You gave me both. Brandon: Okay good. My wig for the next 90 day my kind of sprint is to go from basically right now I have zero mobile home parks. Chris: These goals and by the way this is the part of the book everybody likes to skip. Everybody likes to say oh well I know what my goal is. Jim Stewart, he was a Conico oil operator. He was a student of Deming and Durand like the total quality, the Japanese stuff. This is where he came out of.
Jim would stay on the goal part so much longer than I wanted to. Sometimes the wigs take a couple different flavors. Chris: Perform and transform. Chris: Portfolio and this is going to change our business. Like I got to go somewhere new. We have got to pivot right now. Like they had to go transformational. You got a lot of flexibility for your operation of where you want to put the muscle.
Marketing, sweat equity, planning. The money you saved up for down payment right. You put in your blood, sweat, and tears into the thing right so you really need to protect your investment, which is why we recommend Simpli Safe Home Security. I mean you could get a great deal on a property and have it ruined by a major copper theft or vandalism right. That kind of thing can cost thousands of dollars.
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Okay, lead measures are the thing we can measure that we can do. I got to be able to act on a lead measure. The easiest way to get this is to actually use a weight loss analogy. I can. Here it is. You gave me the lag Brandon a minute ago. I got a target.
Right, but they have to be in measurement form. It has to be a measurable thing. Those are the leads, the lag is the output. Lead measures have two characteristics. Lock your brain on this one idea. This seems to be the golden rule of execution. Let me just break this down. Improving calorie burn and reducing calorie input are both predictive metrics right.
If calorie burn goes up and calorie input goes down, weight goes down. Chris: The influencable part and David this gets back to your question, this is what separates a lead from a lag. A lead measure, I can act directly on. Something I can do. Think about the way a lever. If you rock, if a wildly important goal was a rock, that was too heavy to move right.
We knew engagement, when knew— a bunch. This has a gigantic psychological impact on whether you stay in the game or not. Having something that is both predictive and influencable, the brain interprets as a winnable game. Human beings cannot stand futility. We can talk about those things. These are the, Brandon these are sort of the mental tools you use for breaking this stuff down. Sorry that was too long of an explanation. Brandon: No, it was good.
Looks up David. Yes, I want to actually throw this at you David. This is something that you actually taught me years ago based on what I think you learned from like Gary Keller. Right so David here is a real estate agent and a really good one. Like what are you like how do lead measures or this concept apply to being like a real estate agent or an investor. What it comes down to is if you want to sell a lot of the houses or if you want to get a lot of off market deals, you do the same thing.
You talk about what you want to as many people as you can. They hear about someone who said they want to buy a house. What matters is that I say I need to talk to at least X amount of people every day about real estate and in my talks with them my leverage that makes that talk productive as how well they like me when they walk away.
Do they walk away like man that guy was cool. I want to help him out. I care about his goals as much as he cares about his goals. Then we the tool that we used to use that is just a database and a CRM so I add people to my database and I talk to people in my database. You add people, you talk to people. As you continue to do that your phone just starts to ring, like those are I guess your lag measures right like you start.
I have people come to me all the time and say what are you doing to sell so many houses? You have to have something helpful. You have to add value. Let me just camp here for a second because and by the way I love the term subconscious competency. He had a qualitative component to it. Right there. Chris: He knows if he talks to them and they leave thinking I like that guy. David: If you could work that into your lever.
Then work in there right. Chris: Got cool factor right. They got to like you and they got to add value. This is what makes right. In football a first down is not somewhere between eight and 12 yards. Right and people that are good at this, they know when they got a first down. It would become futile very quickly. Now that was his one lead. His other lead was database. You just like diet and exercised. Am I talking out of turn or is that? You have to be vulnerable.
You have to have a heart that cares. My pitch is getting stale man. I hear that all the time. The first thing I always ask them how many offers did you make this week? The answer is always the same, none. Hey I sat down and analyzed X amount of deals, five deals.
How many meet ups did you go to this week? How many people did you take out to lunch this week? Those are all lead measures that if we do them they should get us the results down the road. Diet and exercise to lose weight? Like why the heck am I listening to this show? You guys are freaking genius. Chris: A little crazy, but what you got to do is you got to understand the psychology behind Brandon, what you just talked about. You know there was this famous cartoon in World War II. Oh Pogo, I think it was.
We have seen the enemy and it is us. Chris: And to recognize that there are these inherent things that make this harder than it is. There was bluebirds. Those felt good and they closed them. I have to work this hard to get my next deal and the brain. It means I have to stop doing. I got three things that want my attention right now and the minute I pull away from those I start to itch.
Chris: The most strategic work you do in the moment, your brain. This is why I say you to initiate tendency override. Like he sees through the Matrix. Chris: Double down on one rabbit right—one target. You stop me. Chris: I want the business. I want the money. I want the weightloss. Second thing, lag data is easy to track. Like all you have to do is stand on a scale. Chris: I get lag data. Chris: Those two things and then I got the, this is the coup de grace.
Come on. Confirmation bias. Chris: Yes, it is. Everything I see confirms that the liberals are crazy. Everything the liberal sees confirms that the conservatives right. Well we all just see this. Well watch how confirmation bias shows up. Chris: I stand on the scale.
Looking at the lag. We call lag measures oh crap measures by the way. Chris: Either oh cool or oh crap right. I think maybe this needs a new battery. Because why? Confirmation bias is kicking in because look. I have a different metabolism than everybody else.
Brandon: Yes, I actually know you want to hear as true story? I just lost—I have lost 40 pounds in the last eight months now. Brandon: I track every single meal that I eat. I track every single workout that I do. Chris: Yes and you might right—you might know a ton about weight loss and exercise. Everyday I record my food, what I ate. What I worked out and I track that stuff then I have basically a scorecard. Chris: That where you got the whole package. You got the whole 4 D Ex in an app.
I had friends here. I was eating out. I look at my weight. I was up like five pounds in like oh in like a week right and I was like. You know what I said to myself? That exact bias. It was water. It was. Chris: Putting energy against the lead measure in the moment will not feel good. Brandon: I got a true story on this. Actually this is perfect example so my lead measure right now to go to lead measure. Brandon: Right so my leads on that is going to be analyzing deals.
I said I want to analyze in-depth two mobile home parks every single week because I know that if I analyze two a week like really into something. Last week, I set this goal. Okay so if your Saturday comes up, Saturday morning comes up.
I did not analyze my second deal this week. Brandon: I went outside and I analyzed. I spent an hour—about an hour digging into this deal that was sent to me, running the numbers, really going. I was like I know, but I have to do this. I should just go out and go do the fun that I wanted to. The point was to be true to what I committed to.
Listen what you just articulated we may do like a video vignette. Chris: Unless we forget or right. Go do it, but seriously what you just described was the dilemma of discipline too. Chris: You know let me go back to my mentor Stephen Covey. He was a big deal to us. He was on Oprah once. We were like Oprah. Chris: So excited.
He said, just this one thing. It was basically forget everything else I said dude. Just do one thing. Make and keep a promise to yourself. This little 11 year old kid like I like I want to know where that kid is right now. Like I want to find that kid because I just like that went right through me. Like a person who can, what did they say?
Like a person who can lead himself is greater than a person that can lead a city. Chris: These are good. We used to freak out about this. Like scientific method is just a fancy name for guessing. Focusing on one or the other it unravels for some reason. You know it creates attention. Where do you go? What should you do? What should you buy? Look if you have fewer than five properties do not miss this. Some of the common mistakes that investors make, some of the best and worse strategies for new investors and a whole lot more.
Again if you have less than five properties you better be there, BiggerPockets. Again, BiggerPockets. One more thing before we move on to number three. His name is Kevin. Many of you have heard Kevin before on the podcast. I mean we brought him on once before. Hey Kevin, are you there? I mean you can. What are our lead measures for this podcast growing? Kevin: Yes, our lead measures are producing a certain amount of social media clips to put them out there and raise awareness about the show.
They are how many titles we brainstorm. Kevin: We come up with so we can come up with language that people will click on. On big podcasts so maybe their audience discovers us. This is probably three off top measures. Like that we do this in almost I mean I do this in every area of my life, but specifically and Kevin like has been doing an awesome job and our podcast is growing.
Like you know significantly because again like all these lead measures are I mean hopefully producing the results. I actually wanted to lead into the next little question here before we go. Kevin: Yes, yes, it really is right. Getting these lead these measures so what if—how do you know that the lead is working?
Brandon: Yes, thank you Kevin. How do you know and what do you do if you get a title, I mean a lead measure is not working. Chris: Right. Maybe you got lazy on the definitions. Chris: Just had the hardest 45 minutes of your life and you burned off. Chris: Like David with the people and the like if we knew how many people. People say that I would do anything to have your success. You got to move that lever so a second one sorry tangent. Second one is lethal dosage. We calibrated it wrong.
Chris: Third one is time and space. Right you got to give those people enough of an opportunity before they know someone that needs to sell or they need to sell. These sacred cows. Kill the sacred cow. Move on. Those four things. It has nothing to do with the real estate.
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