Your First Real Estate “Reality Check” In 5 Weeks…
Picture this: five weeks from now you open your mailbox. What’s inside? A check-and it’s a big one. It’s at least five figures and it’s made out to YOU.
You didn’t win the lottery.
You didn’t inherit money from a rich uncle you never knew you had.
It’s not a scam.
It’s not a pyramid scheme.
And, no, you’re not dreaming. So no need to pinch yourself.
So what did you do? You made a decision five weeks earlier-in other words, right now – to take charge of YOUR life and to flip your income. Your payday? This five-figure check.
And that’s just the beginning.
Before going any further, though, let’s talk about the rules of engagement-everything has at least a few rules, right?
- Let yourself seize this opportunity.
- Let yourself dive in and discover what a life of true financial freedom really feels like.
- Let yourself do it all, see it all and experience it all on your terms.
Sound like rules you can live by?
That five-figure check-your Reality Check, as I like to call it-is just the tip of the iceberg.
That’s a signal to yourself and to the world that you can do this. And if you can rise and fall with these simple rules, behind that Reality Check will be even bigger, better and more lucrative opportunities to grow your wealth and your business. All you have to do is say YES to flipping your income and YES to making the most out of these next few weeks.
Are YOU in? Let’s do this.
So the big question-the million dollar question, really: what am I talking about?
In short, I’m talking about real estate investing.
It’s the quickest, easiest and least time consuming way to earn a serious income. You can work full-time, raise your family or, even, be retired and still make money from real estate investments. And, as you’ll discover down the road, you can be sitting on a tropical beach-or in a cabin in the woods or in your penthouse apartment or on a snowy mountain somewhere-and still be generating five, six and even seven figures from your investments.
And you don’t need special training.
You don’t need a degree from an expensive college or university.
You don’t even need cash to invest. Some of the most successful real estate investors I know have never plunked down a penny of their hard earned savings.
So what do you need? Just seven simple steps that, from start to finish, will get you to that first Reality Check. And once you’ve crossed that finish line, just rinse and repeat-these same seven steps will keep evolving and keep driving your real estate investment business forward to six and even seven figure operation.
Memorize them. Print them out and hang them on your refrigerator, your wall and next to your bed. Say them over and over to yourself, while you brush your teeth, while you drive to work, while you pick up the kids at school. This is all that separates you from wealth and, more importantly, from the life you want to live.
Seven steps. That’s it. You can tackle seven steps, can’t you?
I thought so. So that’s where we’ll start. With the “7 Steps”-these seven steps that separate the “what I’ve always known” from the “what I’ve always wanted.” Bridge that gap and you’re there. And, together, I know we can. Together, we can transform you from a “just do it” to a “just dream it” mentality. I taught myself and, since then, I’ve helped countless new real estate investors get there.
And now it’s YOUR turn.
The next question you no doubt have: who are you, anyway?
Well, for starters, my name is Lee Kearney.
I got started in real estate investing back in 2003. To be totally honest, I fell into this industry. My first flip was almost accidental-seriously.
Three years later I decided to give it all up and invest in real estate full time. A decade later, I’m flipping 30-40 deals each month, and generating millions of dollars in the process. But even though I’m one of the country’s leading real estate investors, I don’t consider myself a “guru” or anything like that. I invest in real estate because I love it. And I share my methods with my students and mentees because I love that, too-I love showing people the ropes and helping them reach their goals, just like I did.
Here, there’s no smoke and mirrors and no BS-which are, in my opinion, the hallmark of the “gurus.” Really, who has time for that? I know I don’t. And if you’re going to get that first Reality Check in five weeks, you don’t either.
Another thing the gurus don’t do: they don’t put it all out on the table. So let’s just get that out of the way. Here’s a screenshot of a recent monthly income report. In this month I bought and flipped 70 houses and made almost $500,000 in the process. And that wasn’t a crazy month or anything like that. Ten years in, six figures per month is a “normal” month.
Want the rest of the income statement? Good news—I share my income statements every month with you. This includes the exact properties I purchased and flipped, right down to the street addresses, how much I made from each deal and more. If you want to double check things in public record, you’re more than welcome to.
My point? I did this and now it’s your turn. I wasn’t a real estate insider when I started and I didn’t have tons of cash sitting idly by. I was, like you, a normal person who knew I needed a change. Along the way I hit lots of speed bumps and, to be totally transparent, fell off the track a few times. But I also had tons of ah ha moments that helped me get up, dust off and start back, even better than before. And once I hit my goal—back then, to make $1 million on my real estate investments—I decided it was time to organize it all and share it, so others could cut through the clutter that comes with launching a real estate investing business and, instead, get to the good stuff.
The Reality Check.
Ultimately, the process is three-fold.
- Learn how to generate five figures in five weeks and get to your first Reality Check .
- Learn to flip your income and turn real estate investing into a living, breathing
six-figure business .
- Learn how to take that six-figure business and scale it to million dollar proportions, (seriously) and achieve lifelong financial freedom .
But let’s not get ahead of ourselves. Let’s walk before we run. Let’s start with the “7 Steps” I promised you and, from there, move into my 5 Figures in 5 Weeks Guide.
Consider this your foundation—the 5 Figures in 5 Weeks Guide is an actual map of everything you’ll do in the next five weeks to get that five-figure Reality Check. I’ve included every single thing you could possibly need, from a day-by-day overview—literally, what you should be doing every day for the next five weeks to get your first paycheck—to the contracts, marketing messages and, even, the words to say to sellers and buyers to close the most lucrative deals you can. It’s like having me in your back pocket 24/7, helping guide you from this moment, all the way to financial freedom.
So that’s my story. Now onto the big reveal—onto the “7 Steps”.
Drum Roll, Please: The 7 Steps of Real Estate Investing
Ready for step one? Well here goes. The 7 Steps of Real Estate Investing are the seven steps you’ll follow every time you work a real estate deal. I’ve been doing this for more than a decade and, still, this is my exact process. In 50 years this will be my exact process. It’s that simple, that streamlined and that effective.
Step one is exactly what it sounds like. Just like a house needs a solid foundation, every real estate investor needs to have a firm basis to start from. A big piece of Foundation is getting your head on straight—in other words, adopting what I like to call a Real Estate Investor Mindset.
In my experience, having the right mindset is everything. From the moment they settle into the starting blocks, that Olympic gold medalist really needs to believe they’re going to cross the finish line first. Otherwise, the doubt and second-guessing will weigh them down for the entire race.
That’s the approach you need to excel at real estate investing. You need to believe that you can achieve something great. You need to believe that this is your path. And you need to believe that, no matter what tries to drag you down, you’ll always keep pushing forward. That’s a Real Estate Investor Mindset.
Think you already have it? Ask yourself—do these statements describe ME?
- You can close your eyes and see your goal—financial freedom—sitting out of reach. But, still, you’re confident you have the know-how to put one foot in front of the other and, ultimately, reach your goal.
- You’re inventive and you’re action-driven.
- You construct solid plans to get where you want to be, but can think outside the box when the need arises.
- You can navigate any twist, turn or bump in the road, even the ones you hadn’t seen coming.
- You’re a little right brain, a little left brain, but always, have a total focus on the task at hand—the task of becoming a successful real estate investor.
If you can, great. If you can’t, don’t worry. We’re just getting started. And, in 5 Figures in 5 Weeks we’ll help lay the groundwork to ensure you master the Real Estate Investor Mindset. But, for now, kick these statements around in your head a bit and start focusing on the barriers holding you back from saying YES to each of them. This is just the beginning.
Part two of Foundation is a bit more literal—it’s actually starting your real estate investing business. It’s very tactical, it’s very hands-on and it’s very important. Even if you aren’t planning to be a full-time investor, creating an LLC surrounding your investments and organizing some sharp, high momentum systems and processes will help you get ahead and, more importantly, get to that Reality Check even faster. But, for now, focus on mindset. In part two—6-Figure Blueprint—we’ll dive deeper into the business-formation piece of it all. And, believe me, it’s easier than you may think.
With a solid foundation—both mental and tactical—we move into the second step: Find It. Like Foundation, this one is fairly indicative: this is the step where you literally find the deals.
No training wheels. No wait-and-see. No “tomorrow I’ll…” Step two is putting the pedal to the metal and actually getting started.
This, in many ways, is the most important piece of your real estate investing business. Without finding the deals, you aren’t really an investor, are you? You’re just a regular old buyer. And that’s not what we’re interested in, is it?
A Buyer Buys, But An Investor Profits,
Because Profit Comes From Deals
No deals, no profit. Lots of deals, lots of profit. Simple as that.
The first step, though, is determining your exit strategy—in other words, how you’ll flip the next property to make that big payout? Will you:
- Rehab & Flip?
- Buy & Hold?
This will dictate how, exactly, you find your deals. But, no matter the exit strategy you choose, you will always have to find deals. So this is a very important piece of the puzzle.
So important, in fact, that we’ll unpack it a bit here then, in much more detail, in 5 Figures in 5 Weeks Guide. Then we’ll keep unpacking it in the 6-Figure Blueprint and, even, in 7 Figure Real Estate Business.
A little taste? The most successful real estate investors I know find deals through a host of sources, including:
- Investor-Friendly Real Estate Agents (MLS)
- Direct Mail (and other proactive outreach)
- Bandit Signs
- Real Estate Auctions
- Real Estate Investors Association (REIA) Meetings
- Networking Events
- Driving For Dollars
The list goes on and on—and that’s not meant to overwhelm you. Instead, it’s meant to paint a picture that, like no two houses are the same, no two real estate investors follow the exact same path to success. You’ll follow the methods outlined in 5 Figures in 5 Weeks and you’ll, over time, create your own path to PROFITS.
This is also the stage that you start your research. It’s important to understand the market you’re investing in and what makes sense. To do that, I rely on three local market reports:
Market Analysis Report which details
property sales by zip code and where homes
are selling the most
Price Analysis Report which includes
active price ranges
Days On Market Report which shows how long
properties have been on the market, by zip code
Digging into these reports will help give you have an understanding of what’s happening in the market and where to focus your attention and marketing efforts. This knowledge is essential to making the most of every investment. This will also be the foundation for making your pre-valuations for every property you’re considering.
You’ve found The Property and have begun teeing up the seller. The third step is to use the information you’ve culled in the Find It phase to help you analyze the numbers and ensure they make sense for you and your business right now.
This step involves:
- Pulling “comp,” competitive assessments of similar properties that have closed in your area recently
- Estimating repairs so you can determine budgets and a property’s true value
- My foolproof InstaQuote “IQ” System for estimating repairs, even if you’ve never picked up a hammer…
- Tapping agents, contractors and inspectors to help with some of the heavy lifting—so if you’re panicking, don’t!
Figure It also includes a hefty due diligence process, to ensure you’re getting the best possible deal. You’ll want to both ask a pro to assess the property so you can be positive all is what it seems and, beyond that, double check that the property can be sold—in other words, that the title is free and clear and that there are no liens.
The final piece of Figure It? You’ll actually make the offer, negotiate with the seller and lock it down. In this step you’ll put pen to paper and get yourself on the path to close on the deal, no matter your investing approach.
Where 5 Figures in 5 Weeks ends, the 6-Figure Blueprint picks up—and, in this case, it’s the fourth step: Fund It. If you’re rehabbing or buying and holding a property, you’re going to have to fund your deal. But, again, you don’t necessary need to Fund It with YOUR money. There are plenty of opportunities for real estate investors to tap alternative sources to get their deals funded, including:
- Private money
- Hard money
- Seller financing
- Lease options
- Subject-to financing
- Retirement funds/Self-directed 401Ks
- Home equity line of credit (HELOC)
Another perk to this system? In 5 Figures in 5 Weeks you’ll generate your first Reality Check without having to fund anything. And many investors choose to take that money (their profit) and funnel it right into their next deal, giving them some added flexibility. If you can swing it, it’s a great way to go.
There are many ways to invest in real estate, including wholesaling, rehabbing and flipping properties and rehabbing and holding properties. If you’re opting for the latter two, you’ll likely need to spend some serious time and resources in the Fix It stage.
There’s a good chance many of the properties you acquire will be in some state of disarray. That’s not always the case but, often, the owner can’t afford their monthly home payments—and that means, in many instances, they haven’t been able to keep up with renovations and other necessary maintenance work.
That’s where you come in.
Whether you’re planning to sell the property or keep it for cash flow, your goal is the same: to get the most value out of it, through a higher sale price or market rent. And to do that, you’ve got to put some serious effort and investment into getting this property rehabbed.
That rehabbing—the Fix It phase—will help you maximize your investment property’s value and, in turn, your overarching portfolio. Here you’ll tap a quality contractor and other essential team members to help you update, upgrade and enhance your investment property so it’s ready to hit the market and, more importantly, turn the biggest profit possible.
Buying and holding to create a meaningful passive income stream? Then this is your key step: Fill It. You’ve got the property, you’ve fixed up the property and now you’ve got to Fill It with a tenant or two (or three…or more…). Once you’ve filled your property, you’re on your way to long term wealth. Why? Because month after month you’re going to get rent checks deposited in your bank account or in the mail. Whether you’re working hard to flip new properties or, like I said earlier, lying on a beach sipping a tropical drink, you’ll still get paid. Those rent checks keep coming, month after month, year after year. All you have to do is cash them.
See why Fill It is so important?
For wholesalers and rehabbers, this is the money step—this is the step that generates each and every one of your paydays. Once you’ve found, funded and fixed up your investment property, all that’s left is to find a buyer and get it sold.
Keep in mind, though, flipping it doesn’t have to follow the traditional home sale process—yours might, but they also might not. Because in real estate investing, there are many ways to flip a property, including:
• Wholesaling—flipping/assigning a contract to a real estate investor without doing any work; that real estate investor will then rehab the property and either flip to a retail buyer it or rent it out
• Wholetailing—doing a little work and some cosmetic upgrades, then flipping the property to another real estate investor; that investor will do the full rehab and either flip the property to a retail buyer or keep it as a rental property
• Retail Flipping—you’re the rehabber who will tackle the work (with the help of your trusty team) and flip the property to a retail buyer for maximum profit
Your investment strategy will dictate how you market your property—in other words, how you find the right buyer fast. This could involve any number of tactics, from traditional methods—enlisting a real estate agent and posting signs around the property—to more investor-focused methods, like bandit signs, online ads, Craigslist, email marketing, direct mail, networking and outdoor advertising.
Got it? Now commit them to memory. Like I said earlier, print them out and hang them on your wall—every wall if you need to. Put them on your phone. Make them your screen saver. Make flashcards. Whatever will help you really dig in and understand each of these seven steps.
In the 5 Figures in 5 Weeks Guide, we’ll dig in even more and, specifically, focus on the first four steps. This process is so good that you don’t even need all seven steps to get to your Reality Check. You only need the first four to deliver your five-figure payday. More on that in the 5 Figures in 5 Weeks Guide.
Putting It Together: What Comes NEXT?
Like I said at the beginning, the first step is laying the Foundation—and the first step to laying the Foundation is adopting a Real Estate Investor Mindset. So, from where I sit, that really needs to be your first step. Get the pieces in place and you’ll be poised for success starting now.
If that’s already tripping you up? The easiest way I’ve found to get in the groove is to understand my motivation—specifically, why am I doing what I’m doing? Why did I want to create a million-dollar passive income source? Why did I take this path instead of something more conventional?
And, before you ask, “because I want to” isn’t good enough. So get that out of your head.
“Just because” won’t keep you motivated in the long term. What will? Your “WHY.” That one shining light in the distance that keeps you moving forward with power and persistence even when things get tough. Entire books have been written on determining your why, but for our purposes, here’s the “CliffsNotes” version:
1. Establish what you want—usually this is CASH
2. Ask yourself why—then ask again and again
3. Once you’ve reached a final answer, ask yourself one more question: how will this make me feel?
Your why process should look something like this:
1. I want cash
2. Because I want to be financially free
a) Because I want to spend more time with my family
b) Because my family makes me happy
c) Because happiness is most important to me
3. Spending the bulk of my time with my family will make me feel HAPPY, RECHARGED, FULFILLED and RELAXED.
See? It’s not cash you want and it’s not even the financial freedom—it’s the feelings that come with being financially free. That’s your motivation. That’s your why. And that’s enough to help you navigate the ups and downs that come with being a real estate investor and entrepreneur. This is the fuel that will power you from today all the way to tomorrow—a tomorrow where you finally achieve your why.
Week 1: Welcome to The First Week of The Rest of Your Life
If you’re like me, you always want to know what next? What comes after this step or stage or lesson-am I right? So here’s a sneak peek—here’s week one, AKA your first week as a real estate investor…
Most newcomers are shocked to see how simple and straightforward week one really is. And guess what? The four weeks that follow—the five weeks to YOUR five figures—are just as easy to navigate. And once you’ve hit day 35, you’ll get YOUR Reality Check and, from there, be ready to flip your income.
I did it. And that means you can, too.
And after that? From five to six to seven figures we’ll go.
Step 1: 5 Figures in 5 Weeks
Step 2: 6 Figure Blueprint
Step 3: 7 Figure Real Estate Business
Ready to go? If you are, I am, too. Over the last decade-plus, I’ve seen countless people leverage this method to make money in real estate. And it’s possible—easy, even.
One final word, though: you’re going to have to work. Just because it’s all laid out for you and just because, at the end of the day, it’s not hard to excel in this industry, that doesn’t mean you can just kick back, relax and wait for your mailbox to fill up with checks. If that’s what you’re hoping for, this isn’t your path—get off now.
But if you’re ready to take a leap, welcome.
If you believe anything worth having is worth working for, welcome.
If you believe your why is worthy of consistent and persistent effort, welcome.
If you’re ready to make five figures—then six, then seven—welcome.
I’m so glad you’re here. And I’m so glad we’re going to kick off this incredible journey together.