Season 1,

47: How to Lose Money by Choosing the Wrong Location with Pat Hiban

May 09, 2017

For the last 30 years Pat Hiban has been heavily involved in the Real Estate industry as a top agent, broker and investor in residential and commercial properties. Throughout his career he has sold over $1 billion in real estate including over 500 homes in a single year and 14 homes in a single day.

In 2010 he sold his team business to his long time partner, Mike Sloan, and went on a book tour to promote his book “6 Steps to 7 Figures: A Real Estate Professional’s Guide to Building Wealth and Creating Your Destiny”. With the help of an introduction written personally by Gary Keller the book went on to sell over 20,000 copies and hit #6 on the New York Times Best Seller List. He is also an active investor in several small companies including GoBundance (a mastermind for high achieving men) and Infiniti HR (a payroll, HR and PEO firm). In 2014, Pat launched his podcast “Pat Hiban Interviews Real Estate Rockstars” which has had over 1 million unique downloads. He currently owns and operates Rebus University, an online training platform for Real Estate salespeople. He has 2 college-aged daughters and travels back and forth between 2 homes in Maryland and South Carolina with his wife of 24 years and black lab Piper.

Time Stamped Show Notes:

[5:00] In 2008, Pat got a proposal from a friend to invest $200,000 in his business, for which he will receive a 20%. He considers this investment beginner’s luck.

[7:00] He shares how he sold 14 houses in a day around the year 2004, telling us about publishing the houses on sale, receiving offers and sorting through them for the best one. And tells us about how the value of the houses are in some areas in the country.

[11:00] With several partners, Pat started investing in apartment buildings, with their own money. They invested in Forth Worth, Texas in a low income property. With a different set of people concentrated there that would bring them trouble.

[17:00] The first murder in their apartment was the first sign of trouble of that investment. He took it as business and proceeded as usual.

[19:30] Pat tells us about the second murder and instead of spending money on fencing and security and to prevent a huge fine and loss of rental license, they sold the building after owning it for only two years.

[24:00] “You have to put everything in perspective”, that is Pat’s way of thinking, so the loss he had, in percentage to his net worth, wasn’t a big loss.

[25:00] Paul explains a little about the real estate grading, describing that A is the grade for a new building and going down to the D, like Pat’s building, which is a property in a really bad area.

[28:25] Failing Forward Segment

  • What is the bottom line reason of this failure? “We probably didn’t ask enough people for their opinions”
  • Was is the single most important lesson you learned from this? “I’d like to say ABC – Always Be in Control. Go at night and ask the right people”
  • What are the major ways you protect yourself from future failures? “I don’t put as much, right now I have 42 investments that are paying me sideways. I don’t do half a million investments anymore”
  • Who do you turn to when you need help? “Two guys, Tim Rode and David Osborne, we get together, go over our goals, where we’re at. And when I need advice, I go to them”
  • What advice would you give to someone in a similar position? “Do your homework, if it sounds too good to be true it probably is. Ask as many people as you can, eat feedback for breakfast”

[34:44] You can listen to Pat on his podcast Real Estate Rockstars, where he interviews top real estate agents and real estate investors.

[37:09] Pat’s final thought: “You can find me at http://pathiban.com/ and also http://www.rebusuniversity.com/ a site for real estate agents who want to be top at their game”

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