Building Stamina in Real Estate Through Mentorship | Nick Perry

Summary

Episode Summary: Building Stamina in Real Estate Through Mentorship with Nick Perry

Podcast: The Entrepreneur DNA
Host: Justin Colby, Bleav
Guest: Nick Perry
Release Date: January 17, 2025

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1. Introduction to the Episode

In this compelling episode of The Entrepreneur DNA, host Justin Colby invites real estate mogul Nick Perry to discuss the critical role of stamina and mentorship in achieving success within the real estate industry. The conversation delves deep into the perseverance required to thrive, the high failure rates newcomers face, and the strategies to overcome these challenges through effective marketing and community support.

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2. Building Stamina in Real Estate

Nick Perry opens the discussion by emphasizing the relentless determination needed to succeed in real estate. He states:

"Bottom line is you'll do whatever it takes. Most people, they will start and then they'll be like, yeah, I ran out of funds or I can't figure this out and they just give up."
[02:13]

Nick highlights the daunting failure rate in the industry, noting that approximately 98% of entrepreneurs do not make it. This statistic underscores the necessity of being part of the resilient 2% who are resourceful, persistent, and willing to put in the long hours required to make their vision a reality.

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3. The Role of Mentorship

Justin Colby reflects on his decade-long relationship with Nick, highlighting the transformative impact of mentorship:

"You took the, the whatever wisdom and knowledge and little nuggets I was able to give you eight plus years ago and built a damn empire."
[03:37]

Nick reciprocates by acknowledging the invaluable guidance he received:

"A wise man will learn from his mistakes, but a brilliant man will learn from another man."
[04:28]

This exchange underlines the pivotal role that mentorship plays in navigating the complexities of the real estate market, allowing mentees to avoid costly mistakes and accelerate their path to success.

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4. Overcoming Challenges and Failure Rates

The conversation delves into the inherent challenges of the real estate business. Justin points out that success is not linear and is often accompanied by significant setbacks:

"No one walks around gold and every real estate transaction doesn't just print money. There's mistakes to be made."
[04:46]

Nick concurs, explaining that problems persist regardless of one's financial status, but with experience, one becomes better equipped to handle them:

"If you're poor right now, you're scraping by, you got money problems or you're super rich, you still have problems, and the problems don't go away. You just. You just get better."
[05:10]

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5. Understanding PPC in Real Estate Marketing

A substantial portion of the discussion centers around Pay-Per-Click (PPC) marketing, a critical tool for generating high-quality leads in real estate. Justin praises Nick's expertise in PPC:

"You're teaching them how to find the lead. And the lead is absolutely everything in the business."
[05:25]

Nick elaborates on why marketing is the foremost challenge:

"Marketing is the first one. Learning how to do acquisitions and contract properties and then dispositions. Those are the three mountains."
[06:01]

He underscores the importance of a substantial marketing budget, advising aspiring entrepreneurs to allocate $3,000 to $5,000 monthly for PPC to see meaningful results.

"Have a job or some way that can generate income. That can be your safety net while you're getting started."
[12:24]

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6. Advice for Aspiring Entrepreneurs

Nick shares pragmatic advice for those entering the real estate business, emphasizing the need for financial stability and consistent effort:

"If you want this dream bad enough, you will work for it. The first three years of starting any business, there's not going to be many vacations, days off. You're going to work your ass off."
[12:24]

Justin adds that leveraging opportunities like Uber can provide the necessary income while building a real estate empire:

"The best thing an entrepreneur has that America's giving them right now is Uber."
[12:43]

This strategy allows entrepreneurs to maintain financial stability while dedicating significant time and resources to their real estate ventures.

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7. Community and Coaching Programs

Both Justin and Nick highlight the value of being part of a supportive community and engaging in coaching programs to accelerate growth. Nick introduces his coaching group, The Cartel:

"I call The Cartel is like getting your PhD in wholesaling. So go and, you know, learn."
[14:55]

Justin promotes his own group, REI Live Co., designed for newer investors struggling to secure their first deal:

"We're like, this last week, we contracted eight properties. This last week, we've done 12 over the last 10 days."
[15:10]

They emphasize that mentorship and community support are essential for navigating the initial hurdles and scaling a real estate business effectively.

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8. Conclusion

The episode wraps up with both Justin and Nick expressing mutual respect and anticipation for continued collaboration:

"I look forward to another three or four decades with you, my friend."
[16:23]

Justin encourages listeners to seek out Nick’s expertise if they're serious about scaling their real estate businesses, highlighting the synergistic relationship between mentorship, community support, and strategic marketing as the cornerstone of enduring success.

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Key Takeaways:

• Perseverance is Crucial: The real estate industry has a high failure rate; only the most determined and resourceful succeed.

• Mentorship Matters: Learning from experienced mentors can accelerate success and help avoid common pitfalls.

• Effective Marketing: PPC is essential but requires a significant and sustained financial commitment to yield results.

• Community Support: Being part of a coaching group or community provides necessary support and knowledge sharing.

• Financial Stability: Maintaining a side income, such as through driving for Uber, can provide the financial runway needed to invest in real estate ventures confidently.

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This episode serves as an invaluable resource for both budding and established real estate entrepreneurs, offering actionable insights and emphasizing the importance of resilience, strategic marketing, and mentorship in building a successful real estate empire.

Transcript

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[Nick Perry]

Bottom line is you'll do whatever it takes. Most people, they will start and then they'll be like, yeah, I ran out of funds or I can't figure this out and they just give up. You know, not what is the failure rate in this business?

[Justin Colby]

Because you've probably, oh, 98.

[Nick Perry]

So you got to be that 2% that is resourceful, doesn't quit and is willing to do whatever it takes. Work long hours in the beginning and you know, make it happen. You've got nobody's going to do this work for you what up, science flipping family?

[Justin Colby]

We are coming live outdoors. Very unique here in Scottsdale, Arizona with my boy, Nick Perry. We are back with another episode.

[Nick Perry]

Bro, dude, it's been a decade. This is where we started. Scottsdale, Arizona. So to think that now you're in my house.

[Justin Colby]

That's right.

[Nick Perry]

Scottsdale, Arizona. You know, full circle moment, dude. Awesome. Have it.

[Justin Colby]

Yeah, dude. In literally your house. So as we're sitting here right now, he just moved in this beautiful house. We're on his tennis court, basketball court. He's got the pool, he's got the bars, he's got the wine, liquor. He's got everything. I'm excited for you. I couldn't be prouder of you, bro. It's been an incredible 10 years.

[Nick Perry]

Yeah, man.

[Justin Colby]

Yeah.

[Nick Perry]

We started a decade ago and it wasn't an easy start. It wasn't an overnight success. You see the finished product now, sure. But the decade, a lot can happen. I'm just getting warmed up. I'm just getting warmed up. So I'm grateful, I'm proud, but never satisfied.

[Justin Colby]

You know, it's been a decade and I think I worked with you, I coached you eight years ago, give or take. And I take such a little amount of credit for what you've been able to do, man. You took the, the whatever wisdom and knowledge and little nuggets I was able to give you eight plus years ago and built a damn empire. And now, not only that, you're taking a leadership role in the industry of real estate investing. You are now mentoring and coaching other high level performers, people who are looking to actively do deals, whether it's wholesale, fix or flip or buy and hold. But you're really taking a leadership role in the community, dude, and I couldn't be prouder for you.

[Nick Perry]

Well, you know, mentorship is the secret hack to getting from point A to point B. There's not a lot of hacks in business. There's not a lot of shortcuts because I've tried. There's not shortcuts. There's no secret pill. There's no secret software. But I'll tell you one thing. A wise man will learn from his mistakes, but a brilliant man will learn from another man.

[Justin Colby]

That's right.

[Nick Perry]

So, you know, I'm just a byproduct of having great people in my life such as you and other great mentors. Sean, Terry, guys like that who come in, put their arm around me and you'll help me to avoid costly mistakes. And, you know, here we are now. Great.

[Justin Colby]

So I had to go make those mistakes. Right.

[Nick Perry]

You made it first, so yeah, I appreciate it.

[Justin Colby]

And trust me, I made plenty. 18 years in this game, I made plenty of mistakes. And. And you know, that's part of the game, though. I think people need to realize, like Justin Colby or Nick Perry doesn't just walk around gold and every real estate transaction doesn't just print money. There's mistakes to be made. And that's something that people need to be aware of, is maybe there's a level that you can get to, but those getting to that level goes through the peaks and the valleys to be able to get to that level.

[Nick Perry]

Absolutely. And the problems never stop, no matter where you're at. You know, if you're poor right now, you're scraping by, you got money problems or you're super rich, you still have problems, and the problems don't go away. You just. You just get better.

[Justin Colby]

Yeah.

[Nick Perry]

Yeah.

[Justin Colby]

So let's talk about your kind of community because I think it's really impactful. And frankly, when I started getting into PPC four years ago, I came to you and joined your group. And the reason being is you actually teach people how to do their own Google in being ppc. Correct.

[Nick Perry]

Correct.

[Justin Colby]

And that's really different because not only just showing them how to go find a deal and negotiate a deal and comp properties, but you're teaching them how to find the lead. And the lead is absolutely everything in the business. You have no leads, you have no deals. Right. And you're showing them how to do it so they don't have to go pay an agency 10 grand a month to run the ads for them. They can actually just do it themselves.

[Nick Perry]

That's the place where 80% of investors fail is on marketing. There's three mountains that you're going to climb in this business, and marketing is the first one. Learning how to do acquisitions and contract properties and then dispositions. Those are the three mountains. And marketing is the largest mountain that you're going to climb. And most people can never generate consistent, reliable, high quality lead flow.

[Justin Colby]

Yeah.

[Nick Perry]

For a sustained period of time. They just struggle with it. And so that was one thing that I was able to do early in my career. And that is why I've been able to, you know, do very well, is I just really dialed in and focused on that aspect of becoming the best at it.

[Justin Colby]

The thing that I want to make clear to this audience, right, because you're going to hear it on Apple, you're going to watch on YouTube, it's going to be all over our instagram pages. Google, PPC is not for everyone. If you have financial restraints, would you suggest for someone to, to go into like you really can't get very far if you have a thousand dollar marketing budget.

[Nick Perry]

No. If you don't have three to $5,000 a month to put towards marketing, I would not advise you go into ppc.

[Justin Colby]

Yeah, that's about right. And then, even then, what kind of Runway do you need to see? Right? So I just, for me, I took a market that I did really well in this year. Birmingham, Alabama. I had the opportunity to do TV ads there. So I took a. And so now I'm on TV everywhere. Justin buys Bama, right? But even the guy who runs that says you gotta give this, you cannot give this less than six months. So there's ten grand a month, every single month churning whether I do a deal or not. What would you say in terms of Google or at least ppc? If you're running your own marketing, what kind of real Runway do you want to be able to give yourself? So let's just say the audience is all right, I got three or five grand a month. Nick.

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[Justin Colby]

But how long do I have to go to give myself some Runway?

[Nick Perry]

Well, the great thing about Google pay per click is there's no higher quality lead than somebody searching you out on Google and going to your website and asking for you to reach out to them. So your conversion rate is really good. As opposed to cold calling direct mail TV. One out of every 20 leads on average is going to be a contract. If you're really good at sales, maybe one out of 10. Yeah. So it doesn't take you a lot of leads to get a contract. Here's where there's people mess up in this business. Just because you have a contract doesn't mean you have money in the bank. The sales cycle for our industry is about 60 to 75 days.

[Justin Colby]

Yep.

[Nick Perry]

So from the time you put a dollar in your business to the time you've got a deposit in your bank account could be 60 to 90 days. So you have to think about that and be able to financially forecast out, you know, at least three months of advertising budget to see a return on your ad spend.

[Justin Colby]

And that's where I think there's a break in education. That's why I love what you're doing and taking a leadership role in this, because specifically in ppc, it's a very popular subject. You know, you were one of the leaders, along with Sean Terry to kind of do this national wholesaling thing. But people, I think, underestimate really the not cost, but the, the length of investment you have to be able to endure and have to actually reap the reward. Right. So I've been around 18 years. I've literally done every single marketing strategy I think there is out there. Everyone that is paid. No one talks enough about this, you know, stamina through the winter. Meaning you're paying, you're cutting checks, you're running your credit card every month. The money's not coming back in yet. And you still got to at least pay those monthly minimums. But that's the reality. But if you can do that and you have a good coach like you that can say, hey, listen, if you do this the right way. And you use these credit cards and you do this thing and you pay the monthly minimum, day 90, day 120. As long as you're good at negotiating and selling and you can convert, it's going to start coming back to you. Because no one talks about the longevity or not the longevity, but the Runway that you're going to need to be able to, you know, have.

[Nick Perry]

You want to know what I did when I first started? Because it took me 11 months to get my first deal. So what I'm going to tell you is going to be very unpopular. I got a job, so. Right. So everybody's like, yo, how can I do this with no money, no credit? Like, can you go out and bootstrap this? Yes. But you want to know the easier and faster way to do it. Have a job or some way that can generate income. That can be your safety net while you're getting started. So while I was, you know, working every night and on the weekends, I was also doing real estate.

[Justin Colby]

Yeah.

[Nick Perry]

So if you want this dream bad enough, you will work for it. The first three years of starting any business, there's not going to be many vacations, days off. You're going to work your ass off. And that's what I did for the first three years. I worked my 40 hour week job and then I come home and I work until midnight every night, and then Saturday and Sunday, all day every day.

[Justin Colby]

I tell people all the time, if you're aspiring entrepreneur, the best thing America has given you is Uber.

[Nick Perry]

That's right. Go be an Uber driver.

[Justin Colby]

Go be an Uber driver. Go make your 100 to 200 a day in the time frame. Like, listen, I. You and I travel a lot. We speak on stages, whatever. I talk to my Uber's guys all the time. I only take black SUVs. Yes, I'm Bougie and it's expensive. But dude, these guys are making a quarter. The good ones are making like a quarter million dollars a year. They time it where they're running the airport runs in the morning. For people like you and me, they time it at night so they have the whole night scene. Like they just know how to move their. And then they have the whole middle of the day and I ask them what. I'm like, what do you do all day? They're like, whatever I want. Go to the gym, I take a nap. Me and my wife go and play, you know, whatever. I'm like, this is brilliant. You're making a quarter million dollars a year on your own schedule. The best thing an entrepreneur has that America's giving them right now is Uber. For that reason, you can. And then you could do what we do all day, every day. Literally stop driving Uber at 10am you have 10am to 6pm that's eight hours.

[Nick Perry]

Bottom line is you'll do whatever it takes. Most people, they will start and then they'll be like, yeah, I ran out of funds, or I can't figure this out, and they just give up. You know, not what is the failure rate in this business?

[Justin Colby]

Because you've probably, oh, 98%.

[Nick Perry]

So you got to be that 2% that is resourceful, doesn't quit, and is willing to do whatever it takes. Work long hours in the beginning and, you know, make it happen. You've got. Nobody's going to do this work for you now.

[Justin Colby]

Specifically, if they want to know more about Google, pay per click. You run Cartel, right, Which is your coaching group, Mastermind. Where can they go find that, research that, and kind of get to know what you're actually providing a little bit better?

[Nick Perry]

Just follow me on Instagram, reach out if you got questions. I'll put you in contact with my team so you can talk shop with them. But super easy. You can find me. I'm on all the social platforms, just Google, like Nick Perry, rei, and you'll find me on the Internet. Yeah.

[Justin Colby]

Make sure you go see that if you're an aspiring investor, if you're actively doing deals, and especially if you're acting actively doing deals, if you've never done a deal, wouldn't you say probably not the right fit? Right. You need to have some people doing some level of deal, some marketing, budget, something.

[Nick Perry]

So I call the Cartel is like getting your PhD in wholesaling. So go and, you know, learn. There's a lot of free education and good education online that you can take advantage of. Right now, there's a lot of entry level groups that you can go become a part of, Start getting your first couple of deals and then when you're ready to jump up and really start scaling your business, reach out to me and we'll take you to where you want to go.

[Justin Colby]

So I run a group called REI Live Co, REI Live Co. It is for newer people who are struggling to get their first deal. They're trying to do the work. They don't know how to comp. They don't. So we're like, this last week, we contracted eight properties. This last week, we've done 12 over the last 10 days. And it's because me and my team are helping them get the deal across the finish line. Those aren't the right people yet.

[Nick Perry]

No, but. Shameless plug. So when I first started my career, I was broke, busted, disgusted, didn't know what I was doing, had never run a business before in my life. And Justin was my first mentor. Justin was the guy that ended up sitting down with me, helping me learn all the fundamentals of real estate. Not only just real estate, but how to build a business, how to turn this in from, you know, just being a hustler to being an actual business owner. And that beginning was what catapulted me and set the foundation for the rest of my career. So, yeah, if you guys are looking for a good quality coach who practice what he preaches, then you guys just do what I did is my. My recommendation.

[Justin Colby]

Well, I appreciate that, brother. Is REI live co. But in reverse, if you're actively in doing deals and spending money, I'm gonna push you next way. You go find Nick. You understand ppc? You do it yourself. You run those ads, you. You get your PhD, and Nick Perry look them up all over social media is going to be the guy in his cartel group. And so, brother, I'm happy we can run this decade run together. I look forward to another three or four decades with you, my friend.

[Nick Perry]

Absolutely.

[Justin Colby]

But let's every year or so at least get one of these out on the PO Cast stream, and let's run it up.

[Nick Perry]

Yeah, let's run it up. Appreciate it, man.

[Justin Colby]

Let's go.