Scaling with 2nd home loans, questions to ask yourself, and using negative thinking

Happy Saturday!

Today is going to be a mishmash of topics.

I couldn’t decide which of the 3 to focus on, so you’re getting all of them!

Of course, we’ll cover mindset and scaling (my favorites).

Let’s dive in:

Using 2nd home loans:

Recently, we had Kimberly Leclercq from Supreme Lending on the FI Investors Mastermind.

One thing she talked about was using 2nd home loans to scale. 2nd homes are a great way to build a portfolio, especially if you’re married.

If you are married, you and your spouse can each have up to 10 homes (20 homes total), as long as they are at least 50 miles away. And you can use the rental income to help your debt-to-income ratio.

(Fannie and Freddie have a limit of 10 financial properties per person.)

Of course, you’ll have to figure out if this strategy works for you, but it’s a great option if you are scaling in your personal name.

The power of questions we ask ourselves:

What do you ask yourself when you hit a certain obstacle?

It’s usually one of these 2 questions:

• Why is this happening to me?

• Why is this happening for me?

The question you ask yourself will dictate how you act in these situations.

Asking why something is happening to you is taking a victim's mentality. It leads to blaming others for your current situation.

Asking why something is happening for you gives you power. You can’t control what happens to you, but you can control how you respond.

It’s obvious when you are reading this without any obstacles in your way. But it’s a lot harder to remember to ask yourself why something is happening for you, in the heat of the moment.

Use this as a reminder for when stuff goes wrong in your real estate business or your personal life.

Using negative thinking to add value:

We often talk about partnerships as a way to scale your real estate portfolio.

Knowing what you’re good at brings value to a partnership. You always hear people say “bring value”, but it’s hard to know what “value” is.

A way to think about this is asking, what are you good at that other people struggle with?

Everyone is good at something. You are better at some stuff than others.

But some people will still say “I don’t know what I’m good at.”

A great way to figure out what you are good at is to figure out what you are bad at. It’s using all of your failures and inadequacies as a frame of reference.

You may have failed at a sales career, never got above a C in math class, or just suck at PowerPoint.

All these things you fail, or aren’t good, at are data points. From there, you can work backward to figure out what you are good at.

Using the example above, you may suck at putting together PowerPoint decks. But when you use Excel, you compare it to how bad you are at PowerPoint and can realize “Oh, I’m way better at Excel than PowerPoint.”

Bang!

Now you can add value to someone else by helping them with Excel.

You can be part of a partnership running the numbers because you understand Excel. The other partner(s) finding deals or raising money may need someone else who is better at Excel.

That’s how you add value.

Whenever you are ready, here are 3 ways we can help you:

• Get your 1st rental property with our Rookie Mastermind

• If you have multiple properties and want to scale, join hundreds of other FI Investors in our Elite Mastermind

• 6 Keys to reaching financial independence free ebook