142. Investing in Triple Net (NNN) Leases and Current Trends in Commercial Real Estate with Joel Owens
March 16, 2021
REPS 01: The History of § 469 (Passive Activity Losses) & Why it Matters to Real Estate Investors
March 30, 2021

March 23, 2021

143. Are You Ready to Get Fired Up by the Psychology and Secret Mindset of Success with Rod Khleif

Rod Khleif is a serial entrepreneur and philanthropist who is passionate about real estate, business, and giving back. Rod has owned over 2,000 apartment homes and apartment buildings and has built over 22 businesses in his 40 year business career which have been worth tens of millions of dollars.

In today’s episode we put the numbers and analysis aside and Rod takes us through an exercise on the importance of mindset and psychology when it comes to success in real estate or really any endeavor in life. Be forewarned, you may be extremely motivated after listening to this episode!

The Importance of Mindset

Rod began as a real estate broker at 18. In his third year, he made over $100K. In 2006 his net worth grew by 17MM. In 2007 he lost 50MM. Rod shares why mindset is so important and the critical component to grow to that size, lose everything, and rebuild.

Clarity is power.

80-90% of your success in anything is just mindset and psychology.

Rod feels that the Why factor is extremely important, determining what you want and why you want it, and setting goals. Desire and goals must be written down. All options are on the table, such as desires, including possessions, cash flow goals, charitable goals/determining who you want to help. Brainstorming, planning, and writing down lofty goals can be a big motivating factor. These goals should also be measurable, such as 1, 3, 5, and 10-year goals.

After brainstorming, Rod advises to pick 1-4 main goals, including a couple of yearly goals. These goals are very important, but the Why factor is very important here too. Underneath each main goal, write a paragraph about the Why factor. Emotionally charged words are powerful.

Whatever is going to juice you, write it down. Take time with this, this is the fuel. Focus and grind for two or three years like most people won’t so you can live the rest of your life like most people can’t.

Additionally, a goal with negative enforcement, or goal that motivates to avoid feeling pain rather than achieving success, can be powerful too.

Recovering from 2008

Rod had 800 houses and multiple apartment complexes. He felt like he crashed and burned because of the geographic spread of his properties. He was only at 30% Loan-to-Value. His cash flow was heavily impacted due to maintenance on C class properties, high insurance costs, and high property taxes. Additionally, Rod had many tenants in the same demographic that all also lost employment in 2008.

Focus and Peer Groups

Rod feels like a good peer group is very important. Peers that are supportive and also have high aspirations will help greatly, and other peers can hold you back.

He reevaluated and recommitted to his Why factor.

You have to be very careful about what you’re bringing into your brain. The news is not there to inform us, it’s there to startle us and scare us. You’ve got to stand guard at your mind and be very careful what you allow in… Focus is power, and you can dilute your focus.

When presented with new information, you may need to pivot and reevaluate. Rod feels a correction may be coming in the future, and wants everyone to remain mentally nimble and ready to change strategy.

[A downturn], It’s not something to fear, it’s something to prepare for… Real estate goes through cycles and seasons just like life does, and I think we’ve been in summer for a long time. It’s nothing to fear, it’s something to be ready for.

Go to Rods website for tons of free podcasts and ebooks.

Rod’s Multifamily Boot Camp Training: Text ‘multifamily’ to 72345 and use the code ‘rodfriend’

Learn more about Rod and his work: https://rodkhleif.com/