In this episode of Grab The Map Podcast, Johnoson Crutchfield shares his insights on why real estate investing works and proven strategies on how to make it work.

Johnoson Crutchfield is an investor in rental real estate. He provides an online course on real estate success coaching and has a private Facebook Group called Mastermind Group with weekly success calls to discuss all topics real estate.

Show Notes:

[2:32-2:39]

More people have become wealthy and have grown their wealth from investing in real estate than any other investment tool. But is not something that just happened overnight.

[3:24-2:51]

Land is finite and it always has value. It is where we live in. It is where we build our houses, our businesses, different infrastructures etc. As long as we need it, and over the years, there's always something being built and developed on the land, it will continue to grow more and more in terms of value.

Here are some of the reasons on WHY INVESTING IN REAL ESTATE WORKS:

Land asset does not depreciate

[4:51-5:18]

- It is a proven strategy that you can buy assets and if you can hold on to them. The real estate that's being developed on the land might need some work, maintenance or improvement but the land value will continue to go up as long there are more people that are born and continue to have a useful need for the land.

No cap in the Income

[5:37-6:48]

- There is absolutely no limit on how much you can earn on real estate. It is not like a job that the money you earn is fixed. In real estate, if you're willing to build a business, willing to spend the time, and willing to network and grow a team, there is no cap on the income that can be created from real estate investing business. The potential is unlimited. It is all about the right mindset, work ethic, and sufficient education in the real estate business.

Real Estate Can Allow You to Borrow Money That is Paid Back by Someone Else

[7:14-9:14]

- There is no other business where you can borrow more money than with real estate. Banks love real estate. They call real estate as collateral to the bank. It is something that secures their loan. If you bring them a great piece of real estate, and you want to borrow some money, real estate is great collateral. You can borrow a huge amount of money from the banks, make the real estate your collateral, put tenants in them and have them pay your debt. The more tenants paying those debt payments, the more you borrow on good debt. And the more you have other people paying that good debt off, the faster, you will get wealthy.

If you are planning to invest on real estate and wants to get educated to be more prepared with a plan, visit http://grabthemapllc.com/coaching/. You can enroll in the online coaching to real estate success and you can also join their private Mastermind Group in Facebook for more discussions in the real estate business. Rates apply on the online course + Mastermind Group so make sure to check out their website! You can also email Johnoson at grabthe[email protected].

In every business, especially in real estate, you may heard of the phrases “Your net worth is your network” or It's not what you know, it's who you know. These phrases tells us that it's important to network. In this episode of Grab the Map Podcast, Johnoson shares some strategies on how to grow your network in real estate or any other businesses.

Real estate is a relationship business. You need relationships with contractors, bankers, insurance agents, investors, buyers and sellers, with all kinds of people. You only get those relationships from networking. Here are some strategies to help you grow your network in your business:

#1 Reach Out to Your Existing Contacts

[8:01-9:33]

First thing you do is look at your current network. Look in your contacts, email, and your social media. Start to say hello to the people that you already know. Start to remind the people that you already know what you do, and start to let them know that you care about them. You don't have to immediately tell these people that you're a real estate investor. You just want to create and build genuine relationships where these topics are naturally going to come up.

The goal in networking is to create win-win solutions. It's to create relationships where you can help them and they can help you in mutually beneficial ways.

#2 Common Interest/s of Real Estate Investors

[9:40-10:24]

There are places where real estate investors go. There are things real estate investors like to do in common. These are conferences and meet-up groups, local events, social media groups for real estate investors etc. Real estate investors in one way or another have common interact with other people that have that common interests.

#3 Introductions

[11:29-11:50]

In networking, you really want to create some great introductions and you want to support your introductions as well. So practice in your spare time. How do I introduce myself to people that I don't know? Right? Remember, if you prepare, you often will feel less anxiety and less fear.

#4 Branding

[15:08-15:14]

When you're networking, it's all about branding. Think about how you can attract people to you, and how you are attracted to other people, because that's part of networking.

#5 Join a Mastermind Group

[15:42-16:26]

Join a mastermind. Get around people that are already doing the business that you want to do. Mastermind groups have lots of different people with lots of different experiences in real estate. You can bounce off things with difference people that are at different levels. Yes, it will cost time and money but it is also an investment. Joining a mastermind is a great way to network and find link-minded individuals. It will also take you out of your comfort zone.

If you want to grow your business and network, check out their website at http://grabthemapllc.com/

And check their online course to help you narrow down the steps on how to grow your business and network. You can also email Johnoson at grabthemapllc.com to get in touch with him.

We've all been doing something that we're very familiar with and it becomes a routine and a pattern where we have experienced some success. But then you're presented with an alternative that you have to deal with and it changes your routine. And that change causes a lot of anxiety, fear and it is definitely scary! In this episode of Grab the Map Podcast, Johnoson shares his three step approach on how to solve fear when you are scared to make a deal.

If this your first time investing in real estate, or your first time investing in a multifamily large project, how do you handle fear when you are scared to make a deal?

Here's a three step approach on how to solve fear when you are scared to make a deal:

#1 Get Educated

[11:49-12:52]

When we get educated, it reduces fear. Get an education and get it from somebody you know, like, and trust. Educate yourself about the business. That should be your absolute first step and it should be a quality education. But it is rarely free. It might cost you money and time, but getting an education is fundamental.

Here are some ways you can get a quality education:

#2 Prepare

[13:25-15:05]

If you already got the education but you are still scared to do the deal, now it's time to prepare. Part of preparing is having a clear criteria for the things that you do. Opportunities are everywhere and people will try to convince you that what they're doing is an opportunity. So what you want to do is prepare so that when the deal comes across your desk that meets your criteria, you will have a plan to execute. If you have a plan, your fear is greatly reduced and you are most likely to do the deal.

#3 Execute the Plan

[16:00-17:04]

You've got the education, prepared a plan, now is the time to execute the plans. It might be scary and difficult but execution is the only thing that will help you get rid of the fear of doing deals. When you're scared to do deal, just do it. The worst things could happen. You may not be able to get the money you expected to make or you might end up not executive your plan 100% with proficiency. But you still gained confidence, education, a confirmation of your plan and the preparation you have made. It will help you be better on the next deal.

You can get educated, prepare, have a plan, and execute, even when you are scared to do deals.

If you want to see the kind of education Grab The Map can offer, check out their online course and Mastermind Group Page at http://grabthemapllc.com/. You can also reach out to Johnoson at [email protected].

How often are you taking the time to pause and reflect on what's happening in your business? How often do you think about what's next for it and ask yourself where I'm at? In this episode, Johnoson reflects about the first quarter of his 2020.

No one could have predicted this pandemic. This COVID 19 pandemic has literally shut all down. People are staying at home, some businesses are open but most businesses are greatly affected by the virus which led to permanent closure of some.

This is a best time to reflect and think how your business is going. What's happening in your business and then plan the next steps.

For Johnoson, here are some of his reflections on the first quarter of his 2020:

[2:45-3:18]

As of 1st of May, he has no properties under contract. That is never been the case as he has been growing his business in the past years. But with the current pandemic, it seems like the right time not to be out, putting things under contract and making commitments to come up with money because we don't know what's going to happen. We don't know how long this virus is going to impact the economy.

It's a great time to invest but it is also a great to slow down. And sometimes you need to slow down a little bit in order to speed up.

[5:14-5:29]

The slowing down of the acquisition allows his to do some research and figure out the best way to find a good property manager to take in charge of managing the rentals. Part of the real estate investing is the actual property management which is very important.

[6:50-7:03]

On the consulting side of things, he wants to have more clients but he also wants to keep the group small enough to where he can work with everybody on an individual basis.

[7:15-7:32]

He is managing over 100 rental units at this point and he is at crossroads. Johnoson is reflecting on where to go from here. He is thinking about how big he wants his business to be and the exact types of properties he wants to own.

This type of reflection is what allows him to decide the next steps he should be taking on for his business. YOU need this too!

And yes, he is reflecting this kind of stuff but he is still very active in the real estate space. So if you are interested to get in touch with him, email Johnoson at [email protected] and get to know more about him, his work, and services at http://grabthemapllc.com/.

Grab the Map Education

Johnson is launching Grab the Map Education. Real estate investing changed his life. In 2019, he started a podcast, then a meetup group, to assemble people who wanted to grow businesses. They can also email [email protected]. Some people in Grab the Map Education are teaching John to make his business better.

Today, it's just $1 for the first month. This will change the way people think about running real estate investing businesses. Find Grab the Map Education at GrabTheMapLLC.com, click Grab the Map Education, enter your email, and we'll get you started with login details.

Barrett Brady bought his first real estate deal in 2016. He's completed 25-30 land, home, and building real estate transactions. His grandfather bought and flipped beach condos. In 2015, he had a weekly one-way three hour drive (six hours) as a beer salesman. He discovered a podcast called Bigger Pockets and listened to 100+ episodes. After a year and a half, he bought his first deal. Tyler Tucker and Chris Winters provided helpful “deal buying” advice.

[06:00] Real estate enabled Barrett to make a career change at 35 years old, build extra income, build net worth, get more loans, and buy more real estate. He recently quit his job and got his real estate license. The company he worked for changed owners, and he was making a good salary.

However, he had the option to try something new. He already owned rental properties and was flipping land. Tyler Tucker and Wesley Webb were excited to bring on someone new.

[08:30] Barrett's real estate background and previous success were the deciding factor. He considers going “full time” the best decision he's ever made.

Barrett's and Johnson's wives have been 100% supportive.

[12:00] With coronavirus (COVID-19) school and business closures, Barrett thinks the commercial sectors (malls, hotels, retail) will be hit the hardest. Residential real estate will probably be good with low interest rates. Long term will be good but short term will have problems.

It may get worse before it gets better, and this is why Johnson prefers rental real estate! The government will help people pay their rent, which makes residential rentals a little safer.

“You can sell real estate, you can buy it, you can hold it, you can flip it, you can create value where there is no value, you can develop land. There are so many options.”

[15:15] One of Barrett's favorite deals that he bought a year and a half ago: a 3 bedroom 2 bath, 1700 square feet, in a good area, referred by a friend. A family member had passed away, they didn't want to deal with it. The house had a very big foundation crack. A homebuyer would be skeptical of purchasing.

Barrett bought with $40,000 cash and agreed to clean everything out. A week later he had a tenant for $1,000 per month. Today, the house is worth $90,000 in its current condition. It was a win-win for everybody.

[18:40] Barrett learned everything he needed to know about real estate for two years, but took no action. He had analysis paralysis, and finally decide to do something. After that first deal, every deal afterwards gets easier, especially when recognizing problems and making decisions. Sometimes, you need to “just” do a deal, so your success can then snowball!

Many family members and friends “talk” for years (not always about real estate) without taking any action. Once YOU take action, you will never look back.

[20:20] Being in a mastermind group has been very helpful, and most members have landed deals directly related from that networking. The group has contractors, investors, business owners, realtors, and lenders.

[23:45] Barrett likes the books “Rich Dad Poor Dad” and “Cashflow Quadrant” by Robert Kioysaki, especially the concept of having your money work for you.

Reach out by sending an email to [email protected].

Mentoring Others in Real Estate

After you have achieved some success (not necessarily millions) it is your responsibility to mentor others, so they see the possibilities. There is a tremendous need for help moving from space to space.

One of Johnson's early mentors didn't realize his impact. When trying to get to another level, seek out people who do what you have already achieved what you want, or are headed in that direction.

[3:10] Find a mentor who can: find money to buy property, finance real estate, find good deals, steer the ship. Johnson was paid the same paycheck, kept spending, and thought he could count on his retirement. After getting into rental real estate, he had opportunities to collect money (and build wealth) outside the 1st 15th day of the month. He could be an employer, not an employee.

[05:15] Johnson's life changed when he noticed larger checks and greater amounts of money coming in every month. Seeing that over a half million dollar checking account balance, changed his life. Some people are looking for someone else with a similar “why.” He wants to provide for his family and help people.

[06:45] Real estate does not limit one's reach and impact. Johnson can spend more time with his kids and wife. Real estate has changed his life. But, everything is not perfect! There were failures and missed chances. A house burned down. A contractor stole money. He lost relationships – mentioned in the book Grab the Map. There was strain on his family relationships.

[08:00] It's not easy, but it's worth it. Johnson tries to see what they're looking for, asks about their goals, and supports them in their goals. He shares what his hopes are. When mentoring, it's important to share successes and failures, but also share what YOUR hopes are for them.

[09:25] Mentors asked Johnson, why limit goals and dreams? “Why not have a building with your name on the side?” No matter what stage of your business, reach out and help others realize they can achieve more than they thought possible. Hold them accountable and check on their results.

Email us at [email protected] to inquire about Grab the Map Education and about real estate mentoring.

What's the Worst Thing That Could Happen

Look at your life. Why are you listening to this podcast, developing yourself, improve your mind, seeking information? What's been holding you back from risk and opportunity?

Forbes asked 21 self-made billionaires five things they wish they had done differently. Many wished they took more opportunities, took more deals and did more business. They wished they spent more time with family.

What's the worst thing that could happen if you invest in rental real estate or invest in flipping a house? The worst possibility is that you absorb the information and never take action. Even in the middle of the coronavirus crisis, the worst thing that “could” happen, has not happened. The worst decision is to leave things exactly as they are.

[5:30] Johnson recently spoke to an investor friend who, in the early days, had to give up many of his properties because he had not saved for taxes. That person now owns hundreds of rental units. If not for those early failures, he would not have scaled to where he is now. When we start something, we never lose.

[07:00] What's the worst that could happen if you lose money? Has there ever been a time where you were not able to find more money? The worst possibility is that you have to start over.

[10:15] One of Johnson's early investment properties was a house that had been burned up. After a contractor an inspector looked at it, it became clear the deal would lose money, even quickly dumping it. He lost $2,000 on the deal. He could have decided to quit real estate investing. He lost money but gained experience. Namely, just because something is cheap does not mean it's a good deal.

[13:30] Johnson has lost money, even in the last 60 days! We win some and lose some. The worst is to never win, due to not being in the game.

[14:30] Perhaps a contractor takes money and doesn't fulfill on his promises? That only means the process needs to change. What if the stock market drops 30%? Take the chance, start that restaurant, have that child, meet that girl/boy.

[16:10] “When we try something and we learn from it, then go out again and use that knowledge, it usually ends up benefiting us: financially and spiritually. Your business will benefit from education.” Look at what's been holding you back and what makes you hesitate. Johnson has been shy about growing beyond 200 rental units. What's the worst thing that can happen if you Grab the Map?

The Coronavirus and Real Estate

Discipline is required to do anything on a consistent basis. There will be a new podcast every week. If you do not see a new episode, email [email protected]. This year, we're continuing to buy real estate, add cashflow properties to our portfolio, helping other investors to get into real estate, and helping property owners in the Dallas and Mississippi markets who may need help with property management.

Right now, the world is suffering from the COVID-19 novel coronavirus pandemic. Hurricane Katrina devastated Louisiana years ago. The BP oil spill. September 11th. This crisis is different from all those because this is worldwide. Whole economies have completely shut down because people need to stay away from the virus.

[05:00] Wash your hands, use social distancing, avoid going out unless necessary. This event has no timeline and we are not even at the peak. There is panic and uncertainty. The United States only has 1 million hospital beds and only 300,000 hospital beds are available. At the height of this crisis, there may be millions of cases.

[08:00] Many businesses are changing their model, for example, drive-thru or telecommuting. Online instructions from teachers. Companies and businesses are seeing revenue increases because they have the infrastructure to handle their surge in “virtual” customers. Sunday observed the highest online church attendance in history. The internet is a utility.

[09:45] Right now, we don't exactly know how this will affect real estate sales or rentals. Real estate succeeds when there is money in the marketplace: saving, renting, moving.

[11:00] We should expect a recession. There will be less money in the marketplace and less demand. Many municipalities have halted evictions and utility cutoffs. GrabTheMap has eliminated late fees for tenants, and let them know to inform management if they miss a due date. There will be an increase in delinquency and non-pays, but we don't know how far this will go. There will be an effect on rentals and landlords.

[12:45] Some real estate investors are concerned about ruining bank relationships, rent not coming in, concerned about employees and contractors not being able to provide for their families. Some lenders are waiting to see what will happen. They are talking about how to extend payment deadlines, defer payments and issue forbearances.

[14:30] It will be more difficult to get financing. Lenders will have stricter guidelines. The credit market will tighten.

[15:30] We've witnessed the stock market lose 30% value in 4 weeks. Recessions happen! We should have been expecting this all along. Avoid the panic, worry, or regret mindset. Shift into expectation. “When I expect something to happen, I prepare. Have more cash on hand than normal. Have great relationships with our lending partners, municipalities, and residents.”

[18:00] We can still pay the bills because we have been preparing for a recession. We have been responsible. We are investors, on the lookout for opportunities: owners that want to get out, people that need quick cash, homeowners who can't afford their mortgages. We're still working our relationships and getting requests at [email protected].

[20:10] Look at what you're doing, your business, and the opportunities that will present themselves. Decide how you will Grab the Map when that happens.

Marathon Not a Sprint

Working a real estate business is like running a marathon. John likes buying rental real estate that needs fixing up, creating value in that property, refinancing with a bank loan, and renting that property out for the long-term. The tenant ends up paying down the money you borrowed AND you make cashflow on a monthly basis.

While John was the New York Marathon (26.2 mile race), he realized the similarities to running a marathon.

[02:00] At some point, there is a decision (commitment) to embark on the journey. The idea has to come from somewhere. When you see others doing it, but you don't have the interest level yet, you might think those people are crazy. Until you have become part of the group of implementers, it's hard to know exactly why you should do it.

[05:30] After you make the decision, it's time to make a plan and train. You choose a schedule and decide how much to ramp up over time. The key for marathon training is to prepare your body AND mind for your long distance. That training prepares you to overcome obstacles.

[09:00] “That feeling of excitement as you get started is very similar to how it is when you get started in your real estate investing business. You might buy the first property and have a home run. […] Or you may encounter some resistance, push through it, and get very excited. There is a very similar experience between the two.

[09:45] Resistance! There will be a point where your body starts to say, “this is a challenge” and your mind starts to doubt why you are out there, or whether or not you can complete the task. “The most important thing I needed to do was find a way to make it work. When you encounter a problem, you don't say that the problem is too big for me to solve. You think about all of the ways you can solve the problem.”

[11:45] During a marathon, you may need to find ways to surpass the challenges you are present with. There are solutions for these things.

[13:00] “If we are going to survive in these businesses, we've got to ENCOUNTER the challenges and push through. We may have contractors that don't do what they're supposed to. We may run out of money. We may feel like we don't have the time or energy. Our families [and friends] may not understand what it is we're trying to do. We have to find a way to push through these issues.

[14:00] There is a point you can look back at the challenges you overcame, and be proud of your success. You can see how much you have done, and are able to see how much your mind has changed and how your view of the world has changed. This is the law of the first win. When you win once, you want to win again. After you execute your plan, but you're not necessarily finished, there is a time to look back and say, “Look how far I've come.” You have surpassed your initial expectations.

[17:20] Become a sphere of influence in others' network. Others seeking what you have will see you as a resource to learn, grow, and develop their own plan. It is our responsibility as investors to network with all these individuals and to reach back and help others accomplish their goals. It's the cycle of marathoners who help other folks training for their marathon to reach back. Replicate the same thing in our real estate classes, or perhaps teach classes, or mentor other investors.