Episode 3: What the Value Driven Investor Podcast Is Committed to Delivering For You‬

After episode #1 you know WHY the Value-Driven Investor believes in you. After episode #2 you know HOW the Value-Driven Investor is different. Today, in episode #3 we are going to discuss WHAT the Value-Driven Investor hopes to deliver for you.

Today you will hear about Tim and Bob's journey through the world of real estate investing. From the books, courses, and seminars, to the mentors and guides that finally launched them into their first investment.

If you have thrown thousands of dollars into courses and coaches, you aren't alone. In fact, Tim and Bob will tell you how much they spent and how much it helped (or in most cases, didn't help).

They both will share what ultimately helped them the most as they "jumped from the plane," a leap of faith that resulted in a $150,000 profit for Tim's first investment.

You are not alone. You are never alone. Join our journey and together we will live life on our terms: www.ValueDrivenInvestor.com

After this episode, you will know why the Value Driven Investor believes in you

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In This Episode….

• Why it has taken Tim 17 years to define what a Value Driven Investor is (1:45)

• The book that influenced Tim's future (2:00)

• Why words mean everything (2:30)

• The survival phase...what it means (2:45)

• 3 components of the survival phase (3:00)

• How much money Bob has spent on training (5:00)

• When Bob discovered coaching wasn't right for him (6:15)

• What Bob discovered that helped him the most (7:45)

• The difference between a coach and a mentor (8:14)

• The first "as seen on TV" course Tim purchased (9:00)

• Why seminars are a waste of time (10:30)

• Why we are so dang frightened in the survival phase (11:45)

• The person Tim met that finally pushed him into his first deal (18:00)

Takeaway Quote

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Full Episode Transcript

Welcome back to the value driven investor podcast, where we forge value driven investors on a mission to live life on their terms, no matter where you have come from or where you are going, becoming a value driven investor is in all our best interests because becoming financially free allows us to focus on what matters most fulfilling our purpose, our community, a value driven investors is committed to showing you the way with the support of this community. You are sure to reach your goals for all of us in the value of an investor community. There is no greater gift than the gift of giving because together anything is possible.

Tim Murphy (00:49):

[Inaudible] Welcome back to episode. Number three of them

Tim Murphy (00:51):

Driven investor podcast. Today, we are talking about what the value of an investor is committed to delivering for you if you remember.

Tim Murphy (00:58):

Well, so number two, we talked about how we at the value driven investor will deliver value to you. We also laid out some of the things you can expect, like getting stories about people, projects and strategies for investing the key to the value of an investor principles and how we hope to deliver you value in the future through a community of value driven investors who stand United to achieve one common mission life on our terms. So after episode one, you know why the value of an investor believes in you after episode two, you know how the value to an investor is different today. In episode three, we are going to discuss what the value driven investor hopes to deliver for you. I would like to start with a story about me, Tim Murphy, and my journey to become the value-driven investor I am today. First I started with not a clue in the world of what the value of an investor really is.

Tim Murphy (01:52):

It has taken me 17 years through trials and errors, successes, and defeats to finally define what a value driven investor really is. It all started with a book by Robert Kiyosaki called retire, young retire. Rich. I grabbed that book as I was sitting in my parents' basement, trying to figure out my life's path, wondering how I was going to achieve life on my terms. That book opened my mind to how I was going to do just that I needed to start by changing my words. The words you tell yourself are the magic that will allow you to change your mindset with a change mindset. I realized I could change my life's path. So that is what I set out to do. We all start our entrepreneurial journey in the survival phase. It's in this phase where you live, or you die as an entrepreneur, it's in this phase where you are tested and you must dig deep because everything you thought was hard, only gets harder.

Tim Murphy (02:52):

If it was easy, everyone would do it. The survival phase is about three things. Designing your life, following your passion and finding your way to make money. As I sat in my parents' basement, this is exactly what I started to do. After reading the book, retire, rich retire young. I did this by educating myself. I bought books, courses, attended seminars and watch videos. Anything I could get my hands on that would help me find the path this went on for years and years. I discovered during this time of struggle in the survival phase, that it took about two solid years of fighting grinding and never giving up before I actually felt like there was a glimmer of hope that I was going to make it as a real estate entrepreneur. Over the course of these two years, I spent money finding the right words, discovering my path and making lots and lots of mistakes.

Tim Murphy (03:44):

The number one thing I came to realize over these years, there is no seminar, no course, no information, product, and no book that will ever make me successful. The only way I was going to be successful is if I took action and jumped. So today Bob's on with me. So Bob, I want to talk a little bit about, you know, when I got started, it was like in that survival phase, I was just, you know, I was new. I was trying to discover my path just like you were probably trying to discover your path. And when you're in that phase, you're just all about inputs taking in as much information as you possibly can, going to high ticket seminars, buying information products, buying software that you think is going to tell you exactly what you need to know, reading books about everything that you want to learn. And then it comes down to even buying coaching programs, because you're not sure if you can do it yourself. Bob, tell us a story about, you know, information products or, or these different devices that you used in the survival phase. And how did they turn out for you? Did you think that those were the things that got you to jump out of the plane and be the real estate investor you are today?

Robert Grand (04:52):

Yeah, that's a, that's actually a, a really great one to talk about. The in my life span between real as being a real estate agent, shifting to an investor, I probably spent over $20,000 on different coaching education training might even be upwards of 30. I actually don't even want to know how much money I spent because it was like a right priggish ungodly amount between any information Infor, informational course I could get or anything that would help when ultimately at the end of the day, you know, it came back to realizing, you know, the basics, you know, and so my experience, you know, I spent, gosh, when I first started back in real estate, I paid $10,000 in one year just for a coaching program that I just didn't really connect with. You know? And, and, and that was kind of, one of the hard parts is, is that every week I had this phone call with this person, it was like this mythical person almost.

Robert Grand (05:48):

And they would just ask me about my numbers and not really want to get to know me, not really want to know anything about what's going on my life and backed like my mom was sick with cancer at the time. And I remember being really, you know, in a coaching program with the coach because they just called and want to have this conversation about my numbers, this and that and that, and then they want to get off the phone when really like that week. I didn't really want to talk about coaching where my numbers are at. I hadn't made a phone call. I hadn't done anything. I was dealing with a lot of other stuff. And that's, when was probably one of my first signs of maybe coaching isn't right for me. And I've always been taught my whole life, that when you want to do something, you know, right through sports as a kid, all the way through, you know, high school you got to find a coach, right.

Robert Grand (06:35):

And, and that's what I always thought, you know, so I stopped, well, whatever I want to do, I go find a coach and I get educated. So I paid for high price seminars and I pay for high price coach. And I think there are certain times in your life where you might need that where you can benefit from that if, if it's right for you. But for me it seemed to be just kind of a waste of money because I wasn't implementing what they were doing because we weren't on the same page. And for example, you know, like I always worked at the, or I still worked at the fire department. And so I have a weird schedule and, you know, a coach couldn't really fit that into their schedule. So my, my schedule was always moving and they would want the same coaching days and it just wouldn't work out.

Robert Grand (07:13):

And so, but ultimately what I figured out at the end of the, at the end of the day is, you know, there's just a lot of groups out there, right? There's groups that are helpful, where you can ask questions and where you can get involved and start trying to figure things out. Well, then, you know, there's higher level groups that you can get to, and maybe you pay a price for that group, but then you, you still have a collective of people that are really wanting to deep dive into stuff. But at the end of the day, Tim, the one thing that I figured out that was the most important has been the most beneficial to me is finding a mentor, you know, like a hundred percent. Yeah, I did like inside of you know, the, the program that we met each other, the PSS program back in the day, you know, I'm, you know, I saw you as a mentor. You know, I saw Ryan, slopers a mentor Shane as a mentor, and I've had other local mentors, you know, in my community that, that have given me so much information, Bob,

Tim Murphy (08:06):

What's the difference though, in your mind, a relationship coach and

Robert Grand (08:08):

A mentor, a mentor as a friend, a mentor, somebody that's in your corner, a mentor is somebody that wants to know what's going on in your life. They understand you've got stuff going on. They're not like it's not a contractual agreement. You know, that you're paying them for, it's not like, you know, your coach for the football game that you're trying to go to the NFL. And you're a million dollar player. He's a million dollar coach. That's a relationship based off of money, you know? And usually a mentor just wants you to be successful, you know, and they know you like you trust you and want to see you.

Tim Murphy (08:43):

Well, and at the end of the day, Bob, I mean, mentorship is, is part of legacy, right? Like a mentor in my mind, the mentors I've had in my life. They've never asked me for anything because for them, it's about giving back because they've so much probably from a mentor that they had down the road. And I think that is a big difference. And that, you know, talking about things that I've spent my money on, I mean, I've spent tons of money on information products, Carleton sheets, back in the day, right. When I graduated college, I paid for that too. Yeah. I mean, he was on every TV infomercial you could find. And I ended up buying his plan page and I went through all this stuff and I read about contract for deeds and all these fun, you know, which at the time I was blown away, like, God, this is complicated.

Tim Murphy (09:26):

And now I'm like, man, this stuff is pretty easy. But when I read through all his stuff in all his information products, it didn't get me to make a move. It didn't get me to go invest in a property. Didn't get me to do really anything other than to be overwhelmed at all the risk of actually doing real estate, investing in all the things you needed to know that were overwhelming. So that was one of the information products where I spent a bunch of money on that. And it was just like, eh, that didn't get me to do anything. Obviously I read that book by Robert Kiyosaki and I've read tons of books by Robert Kiyosaki. Because I think he's one of the innovators in education when it comes to real estate investing. But again, Robert Kiyosaki never helped me invest in, in real estate. And then, you know, so there's high ticket seminars. I've been to seminars that cost five, six, $7,000 you walk in and three days later you walk out, Bob, I know you've been to one of those and you walk out $5,000 poorer, but you still go, okay, well, how am I going to find that deal? How am I going to buy that deal? How am I going to get financing on that deal? How am I going to close on that deal? How am I going to rent out that house?

Robert Grand (10:35):

They give you all those steps and they get you excited, but they don't give you that final action, right? They don't give you that final walkthrough. They don't give you that final help to get you to the other side. And that, that's the thing that I see with all of them. And I thought the real estate industry was bad with coach, just from the agent, bad with coaches, from the agent perspective and the investor side of it. It's even bigger. There's even more people. Everybody is, is a real estate coach and the investment world, they all got a program. You know, there's, you could spend a thousand dollars for a wholesaling course on how wholesale properties and that's the easiest thing in the world, but do you need like two pieces of paper? And you've got to find a deal. I don't understand why you would pay a thousand dollars to have like a 16 week course on that. It blows my mind.

Tim Murphy (11:17):

Well, you know what, Bob, that leads me to my favorite analogy. And I just want to tell this analogy because you segwayed perfectly, why do I spend 5,000 at a, at a seminar? Why am I spending 10,000 a year for coaching? Why am I buying information products for $500 or $700 or a hundred dollars? And it all comes back to being scared. And the analogy comes down to jumping out of a plane for the first time. Imagine gearing up, getting instructions on what will happen. Being told what you need to stay alive. And worst of all, being told all the things that might go wrong. Even though the statistics show you a very low probability of dying, there is still a chance. It's that fear that holds you back and separates winners from losers. If you can get past this fear, next thing you know, you are up in the plane at 10,000 feet, strapped to your jumping partners back.

Tim Murphy (12:14):

Your jumping partner is like your guide. When it comes to skydiving, he has done it a million times and still lives to take you on this, your first jump. So, you know, you have a chance of making it, but why is your mind playing tricks on you? Why are you still doubting your choice to do it? Because your brain is hardwired to help you make a choice that will reduce your risk. When your brain feels like you are taking a chance, your brain keeps telling you don't do it. You'll die. Your jumping partner tells you don't sweat it. I've done this a million times. What do you do? It's in that exact moment when you're jumping partners strapped to your back and the green light goes on, he yells into your year. It's go time. Now is the defining moment. You can turn back or you can quit.

Tim Murphy (13:03):

What will you do, bro? I know what you're thinking. You're scared as hell and don't want to do it. That's natural. Trust me. I don't want to die either. I got your back. You're jumping partner whispers in your ear. Boom. Before you even know it, you're out of the plane. Wait as you're having the ride of your life, the first thing your brain tells you, Hey, this isn't so bad. We might actually make it. Then you land on the ground and realize you almost missed out on one of the best experiences you've ever had in your life. All because you were scared to venture out of your comfort zone, you were scared to do something different, to take a chance. The next thing that comes out of your mouth, when are we going to do this again? And Bob, right? Didn't you say that, that sums up exactly what you're talking about. Why do people pay all this money for all these different courses and all these things? When all they really want to do is just invest in real estate. Isn't it? Because they're scared.

Robert Grand (13:59):

Yeah. Yeah. It's, it's that fear, that fear of being able to take that first step and walk through that process and, and yeah, and fierce crippling, you know across the board, you know, coming from my fire department background, you know, the first time I went into a fire, it was like, the last thing I really wanted to do is exciting after I got through it afterwards, it was awesome right now. I want to do it again. And again, it's just taking that first step. And your brain is just hardwired for, from millions and millions of years, it's programming is, you know, fight or flight. And that fight could be taking the step in fighting forward, you know, moving in and then becoming that successful investor. But so many people are so paralyzed by it. It's I think it's probably one of the hardest things in the world to get over.

Robert Grand (14:42):

And it was actually brought me when you were talking about that, it brought me up to a very great quote that I don't know who wrote it or where it came from. Maybe I made it up, but probably not. But it might've been in a book, but it's, you know, it always, whenever somebody talks about fear, I always tell myself everything you want is on the other side of fear, you know? And that's, that's the truth. Yeah. It's a powerful quote. And so whenever I'm afraid about something, I try to analyze, you know, what, why am I afraid what's holding me back. And then I remind myself, everything I want is on the other side of where I'm feeling right now, which is fear.

Tim Murphy (15:15):

Well, and I, I would totally agree with that, Bob, because whenever I grow the most is when I feel like I'm failing the worst and I feel like everything's going wrong. And I feel like there's nothing I can do. Right. And then right on the end of that, as long as I never quit, boom, it's like, Oh my gosh, I look back and I realized, man, I just made it to another level. And it always seems like that next level, there's a lot of pain before you make it to that next level level. And so that's one of the reasons why I share that analogy about jumping out of the plane for your first time, because it's the only way I can really define that anxiety, that nervousness and that pit in your stomach, you get, before you do your first real estate investment deal, you just don't know what's going to happen.

Tim Murphy (15:56):

But if you're attached to someone, someone has your back, you know, we both have those stories, then you know what you know, and you realize that each time you jump, you're going to have a safe landing. And so I wanted to tell a little bit of a story that I had, and I Bob's got a story too, because I think this sums up a scenario, live scenario of how I felt exactly that when I went into a deal. So in the episode, number one, I told you a little bit about one of the biggest deals I ever did. And this was in the transition of the real estate market from the downturn of 2008. And then the market started to come back in 2014. One of the biggest risks that I ever took in my career as a real estate investor was when I invested in an infill development projects, which I do on a regular basis today.

Tim Murphy (16:40):

But back then it was going to be my first real estate infill development project. And that was back in about two 2013 when the banks quit giving properties away because the real estate market was starting to shift instead of losing money, real estate was starting to appreciate and demand was really starting to pick up Jason, who was my business partner. And I, and we had been doing a bunch of smaller flips. We CA we had to come up with a new plan. The margins for flipping these small houses were starting to dwindle what we were going to do. What were we going to do? I mean, that was the biggest question that we had to ask yourself, what are we going to do? Because we can't make enough money or margin on these small flips. Are we going to, how are we going to go into something that actually is more profitable and, and quite honestly, hopefully less risky.

Tim Murphy (17:22):

That's when Chris, one of our best general contractors, the guy who grew up in the construction industry and had over 20 years of construction spirit experience at the time said, fellas, we need to tear a house down and build new construction, go bigger, go home. And I'll never forget that when he said that, I was like, what are you talking about Tara house down? What, what is this going to, what is this going to entail? And Jason, my business partner was literally a riverboat. He loved to take chances and risks. So he would do anything. He went, he didn't even care jumping out of a plane on the first time. He wouldn't want to be attached to anybody. He would always tell me it wouldn't be as fun. And so that was the beauty of having Jason as your business partner is that he was always willing to take that chance and pull you out of your comfort zone.

Tim Murphy (18:08):

But Chris, he had experienced, he had built new construction for years. He had run construction teams for big builders a big local builder that built hundreds of houses a year. And he had also built homes on his own with his own company until 2008 hit. And he got wiped out. And that was why when the moment came and we needed to make a choice, I stood in the plane with both my jumping partners at 30,000 feet, Chris and Jason, each one of them were ready to jump out of the plane. Chris being the only one who truly understood the risk we were about to take. Chris was the only one who had done this a million times. The next thing you know, I was paying $250,000 to acquire the property, this first property. And then I spent another $12,000 to tear it down. And then after that I got financing for over $400,000 to build a new home.

Tim Murphy (19:05):

I was into a project for hundreds and hundreds of thousands of dollars. And I didn't even know what hit me. All I remember is trying to sleep at night. All I remember thinking to myself is what if this goes wrong? What if nobody buys the house? What if I go years or two years or three years? And what am I going to do? What am I going to move into this house? How am I going to handle this? And worlds really can't explain how nervous or anxious or worried I was. I, it was truly, it was, it was probably worse than almost jumping out of a plane for the first time. All I kept thinking was what if this doesn't work, I would lose everything needless to say, I jumped. And after six months of stress and anxiety, I landed safely with $150,000 in profit. And guess what? I said, when are we going to do this again? And Bob that that's, you know what I mean? That's, that's my story that relates to that analogy. And I'm guessing, I know you have an, a story around, you know, what, having somebody that you can lean on when you're about to make that big decision, that literally your hands are sweating, you're nervous. And you're probably staying up at night. I mean, Bob, tell me a story. I know you got it.

Robert Grand (20:16):

I've got a great story. So for us it was the most recent one is, you know, actually stepping back we've jumped leaps and bounds, right? Like in the last two years, since we fully dove into real estate investing my brother myself, my wife, Shelly, who now works with us, that that whole process, you know, has been because of having people that are there and able to help us jump out of that plane, so to speak and take that dive. But probably the biggest one for us, it was causing me like anxiety staying up at night to the point where I felt like I needed anxiety meds or in the middle of the night, I would wake up and want to go for a five mile run, you know, at 2:00 AM, because I'm just like walking around my house, cause my heart is racing.

Robert Grand (20:59):

But it was the apartment complex that we just bought. We, we just purchased 16 units and the 16 unit apartment complex was run down. It's a huge value add, you know, complex. We ended up picking it up for $600,000. So roughly I think $33,000 a unit and my brother and I w when we were going through the numbers, it just seemed like it was too good to be true. And there was that anxiety with potentially putting up everything that we had into this complex, you know to be able to make it happen and we're, and then, you know, it got to the point where it was kind of like we're asking ourselves why, you know, gosh, nobody's thinking, Oh, we can't do it. Okay. Let's just let it go. And then it would just kind of stick they're like, Oh, but how could we do it?

Robert Grand (21:47):

And really what I learned, you know, at the end of the day, it was, it was all because of the nerves of not of having done a project that big and working on something that big and we're still working on it right now. But you know, in the end, just talking to the right people, you know, talking to you, talking to Shane, talking to Ryan, Slover talking through it more with my brother my wife, Shelly, and going through that process of all really good and intelligent, smart people. It really came down to figuring out two small things that we had to do to get it, to make it happen. And then just taking that plunge and, and stepping over that, you know, that boundary of fear and, and jumping out of that plane. And now that we have it, you know, it's no big deal.

Robert Grand (22:29):

And I was like sitting there thinking, and it's challenging, right? Like there's a lot of stuff going on with this place. We're going to try to rehab 16 units over three years, we're held up with permitting. We've got all sorts of stuff, but it's all just like obstacle after obstacle, after obstacle. But, but just taking that chance in that risk, you know, there's $600,000 apartment complex. My brother has a valued out where it will be worth when it's done, you know, 1.8 million, you know, which is probably going to be the biggest win of our life, you know? And, and that's just me having, having people there. What I realized instead of a coach is just having people there you can count on, you know, that you can, that you can be involved with, that you can bounce those things off of is the most successful thing you can do because it's taken us from being real estate agents, just doing real estate sales, where we are super comfortable at saying, okay, we're going to be investors.

Robert Grand (23:20):

Okay, we're going to wholesale. Okay. We're going to build new construction. Okay. We're going to buy this 16 unit apartment complex. Oh Jesus, what am I thinking? You know, and having, having those people there to bank off of and help you, I think is the key. And, and it's, that's probably truly been the most successful thing. And our story just, you know, this whole apartment complex, like I, I kind of rated up there with being one of the most challenging projects I've ever done in my life. And I'm still working on daily, but it's also been one of the most gratifying things, because you can see where it's going now that we're kind of over that fear phase and we're just fully in it. And then once you're in it, you know, once you're in it, you're in it. You're like I'm getting through this thing to the end because I'm not losing anything here.

Tim Murphy (24:04):

Well, you don't have a choice. I mean, you're, you're pot committed, you know, and once you're pot committed, it's like quitting really isn't even an option. And I think that, that's the biggest thing that you know, we want people to understand that are gonna follow the value driven investor is that when you jump out of the plane, you can't climb yourself back into the plane. You're, you're out, you know, you're, you're either right, or you're going to be allied. The only thing that you can do is make sure that your shoot opens and you land safely as safe as you possibly can. And, and, you know, 99, I don't even know what the stats are on, on skydiving, but I know it's a high probability that you won't die and let's call it 99%. So 99% of the time, Bob knows, even though he jumped out of the plane and he's taking on this really big project, the biggest project, and potentially the biggest profit of his life, he knows there's a 99% chance he's gonna make it.

Tim Murphy (24:57):

He just fights his off and never quits until the bitter end. And I think, I think that's the whole point of this podcast. That's the whole point of the value-driven investor is that if there's anything that Bob and I have learned, ultimately, what we've discovered is that if you attach yourself to someone with experience and you become part of a community of like-minded people who want to share their experiences, share their knowledge, because they know that that's going to be the legacy they leave is helping someone else reach their full potential. Like, does it really get any better than that, Bob?

Robert Grand (25:35):

No, it doesn't. And that's what I love about the investing world is everybody's so, so helpful. Everybody wants everybody to win, you know, is what I always say. Other investors, you know, other mentors and things like that, they're all out there for you. You just have to find them and find the right group. You know, I've been part of other smaller investor groups, but I just didn't fit with. And so I moved on to a different one. But you know, with us and everything, it's always been there. It's always been a good connection. That's always been a good relationship and it's just having those right people to kind of be there and be in your corner, I think is the ticket. So, but yeah, it's, it's, it's a true, it's interesting how great it can be. You know, when you, when you have those people around Ray there to help you and, you know, be your partners, potentially partners on projects to down the road, you know,

Tim Murphy (26:19):

Well, yeah. Partners on all kinds of things. I mean, and that's the beauty of having people in a community that have one thing in mind and that's, and that's trying to reach their full potential and living a life on their terms, because once you've done it, once you've gotten to that point in your life, honestly, I can tell you that money becomes pretty relevant and your purpose and your ability to give back to others so that they can reach levels that you've reached. It becomes everything. And that's really why, you know, I've wanted to bring on the value driven investor. That's what I want to give you guys our audience through the value of an investor. And I know Bob's on the same page and it really comes down to once you've made the jump, you know, the next step is what's your plan? How are you going to find a community?

Tim Murphy (27:06):

Like, and if you haven't made that jump, how are you going to find a community of people that you can trust? And that is what Bob and I want to do for you at the value driven investor community, we are going to launch a Facebook page. You can find it and come to it and it's going to be free. And we're going to put a lot of great information because again, sure, there's going to be certain things that Bob and I and the other investors in the value driven investor community are going to have to charge for, because we can't run this podcast. We can't run this organization for free. It just doesn't work like that. But our ultimate goal is that we want to get you out of the plane. We want you to do your first deal. We want you to grow and truly we care.

Tim Murphy (27:47):

And we want to be mentors. We don't want to be coaches. We don't want to sell you information products. We just want to keep you moving forward so that you can live the life that you want to live. And you know what, at the end of the day, we want to be the ones who push you out of the plane, help you land safely on the ground. So you can believe that truly anything is possible. So if you're committed to building a life on your terms, if you're committed to putting in the work, if you're committed to never quitting, then the value-driven investor community is committed to you. So join us, visit us on our Facebook page and let's get going today.

Tim Murphy (28:27):

Thanks for listening to the value driven investor podcast, where we lead by giving for more information about our community and what's new visit value driven investor.com.

Speaker 5 (28:41):

The value-driven investor podcast was produced by digital legend media in Minneapolis. Build the or legend digital legend media.com.