Why 99% of New Investors Fail (And How You Can Beat Them)

SPEAKER_1 (0:01)

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Michael Zuber (0:27)

All righty, folks, Alex Hormozzi continues to drop gems. He recently dropped a quick short about how to beat 99 percent of people. And what I want to do with Cody Davis here is twist it ever so slightly, and talk about how we can take Alex Hormozzi's words and relate it to real estate investing because I think it is really easy to do. And again, if you can beat 99 percent of new real estate investors, you are going to get filthy, stinking rich. How are you doing, Cody? What's going on?

Cody Davis (0:58)

Doing good. Closing a refinance this week, 5.8 percent interest, no buydowns.

Michael Zuber (1:04)

Nice.

Cody Davis (1:05)

Yeah, I'm paying off an 8.625 DSCR loan, so.

Michael Zuber (1:10)

Man, you and your lovely wife, Ashley, just keep winning. I couldn't imagine better things for a greater couple. It's going to be so much fun to be part of your two's journey the next decade. So thank you for coming back each and every Monday, and thank you for leading our teenager section. We're less than 100 days away.

That's coming fast and furious.

Cody Davis (1:29)

Very excited. It's going to be fun to be there, and I have a feeling that will be the best session. Not to knock on any other speakers, but I have a feeling that will be the best session.

Michael Zuber (1:38)

I would tell you this, to me, it's the most important session, right? Because I've had a goal since video number one of creating a legacy that outlives me by 50 years. And while I certainly am changing generations and parents and helping with that, it's truly that next generation which makes my vision even possible. So no pressure. You and Ashley have the most important session. There we go. There you go. Well, I want to get into it. Again, I love Alex Hormozi. He has just some of these little short gems. He puts them out on Instagram and on X. I follow him in both places.

But this is how Alex says how you beat 99% of people.

He gives us three things. We're going to go through each one individually and let you and I riff on them. So number one, you have to master the shame of rejection is the first thing. So when you think of that, you hear that. How do you relate this to new investors in real estate?

Cody Davis (2:34)

Well, you got to be able to make mistakes. And I don't mean, like, oh, everybody can make mistakes. You have to be willing to make mistakes.

I continue to push forward with the full knowledge that I can mess stuff up, but I'm going to do the best that I can along the way. And what that allows me to do is allows me to put myself in positions I haven't been before, get out of the comfort zone. If you're unwilling to make mistakes, you're not going to grow, at least not very quickly. And this already takes a decade. I don't want it to be two.

Michael Zuber (3:07)

Yeah, one decade is long enough. We don't need it to take two. When I hear about the shame of rejection and new real estate investors, I actually go earlier in the journey. I go back to that first spark that we've all had. Yours occurred when you were a senior in high school. Mine occurred when I read Rich Dad Poor Dad the first time. And I see this in so many people. They get that initial spark. Maybe they read my book, they watch your YouTube channel, whatever it is.

And then they talk to their friends. And their friends want nothing to do about it. They're not into real estate investing. They're not into living below their means. They think landlords are evil.

They don't think anybody can do it. Their best friend's next door neighbor's dog walker lost a house in the GFC. And there's just, there's so many people around you when you get that first spark, if you're not careful, they're going to cause that spark to go away. Because it's a fragile spark, and it's easy to kind of dent. Nobody could, you know, you have a raging forest fire. Nobody's going to be able to put out your forest fire or even mine. But in those first early days, if you're around the wrong people, that spark is distinguished or extinguished and it's over. That's what I think about.