159 Fooled By Randomness – Passive Accredited Investor Show | Hard Money Lenders

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159 Fooled By Randomness – Passive Accredited Investor Show | Hard Money Lenders

Today on Passive Accredited Investor Show, Carolina Capital Management shares the knowledge that they experienced and gained every time Bill, Wendy & Jonathan attend masterminds like Collective Genius.

There is no shortage of learning if you have an open mind. If you are ready to listen, you will learn something.


0:01 – Introduction – “How often have you felt like the dumbest person in the room?”

1:16 – https://www.CarolinaHardMoney.com

1:51 – Wednesday with Wendy: https://calendly.com/wendysweet/wednesdays-with-wendy

2:22 – Carolina Capital Management, a member of Collective Genius since 2011.

6:46 – Collective Genius gives back by helping others.

8:03 – Jonathan shares the happenings in Collective Genius.

14:45 – Jonathan talks about a book titled “Fooled By Randomness” and how it relates to entrepreneurs.

19:58 – Wendy’s food for thoughts on her birthday.

Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the “Small Builder” borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and “Ground-up Construction Loans” for investors only in NC, SC, GA, VA, and TN (some areas of FL, as well).

As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.

Listen to our Podcast: https://thealternativeinvestor.libsyn.com/

Visit our website: https://carolinahardmoney.com

YouTube Channel: https://www.youtube.com/channel/UCYzCFOvEt2n9TchgECLwpww/

Facebook: https://www.facebook.com/CarolinaHardMoney/

Wendy Sweet


Hi! How often have you felt like the dumbest person in the room? We get that opportunity every time we go to these masterminds that we attend. And we want to tell you all about the latest one right after this. 

Wendy Sweet


We’ve been a member of Collective Genius since 2011. 10 years. Wow! Been going down there for 10 years and I can tell you that that place is very responsible for a good portion of our growth and what we’re doing today.

Jonathan Davis


You get to learn all these little nuggets and tidbits that people are doing because you have a mastermind of people around the nation, whether they’re wholesalers, fix-flippers, and lenders, just data providers and they’re giving you a peek under the hood of what they’ve been doing in their business of what worked, what didn’t work. Likewise, you get to share the successes, the failures, and then we can analyze what you can implement to hopefully help you create more successes and not prevent, but minimize failures.

Wendy Sweet


I’ll tell you back in 2011, when I first joined, I was doing some work with Larry Goins, as well. So he’s the one that I joined with and we were sitting there, listening. We thought we had it going on because our real estate business was kicking. We were doing great, had a big sales floor information, marketing sales, all off the charts. We were buying and selling all kinds of stuff off of HUD. We were rocking and rolling making 3000 offers a day. We had an automated system set up for that. We thought we were hot and we walked in there and sat down. And within 20 minutes, Larry leaned over to me, he said, “Ugh, I feel like the stupidest guy in the room. How about you?” I’m like, “Yep.” Because the quality of knowledge is just unbelievable there. And you know, there’s people that are old like me, and there are lots of people that are way younger, like in their twenties that are just knocking it out of the park. It’s just mind-blowing, right?

Jonathan Davis


Yeah, it is.

Jonathan Davis


But, yeah, that’s the way of the world. I mean, we all have to make way for the next generation, but it’s amazing. The young guys and gals that are here and the caliber and quality that they are, and the ideas they bring to the table, it’s amazing.

Wendy Sweet


And how willing they are to share what they know. That’s what really just blows my mind, is how giving everybody is. And not only is this group willing to share with each other, but they’re all heavily invested. They’re all heavily invested in helping the world, helping the community. They’re giving back, they’re going to the Philippines, they’re putting wheelchairs together for people. They’re working with orphanages. They’re feeding the homeless. They raise money for a disease. And I’m ashamed to say, I don’t remember what it is, but that the kids get and the money that they’re raising and the events that they put on. It’s just amazing how they’re just pouring out. They’re just pouring out. That’s the best way to describe it.

Jonathan Davis


Yeah, I mean success is so unfulfilling without the giving back feature. We all can experience success, a lot of us do, but it’s definitely unfulfilling unless you have a way to get back and help others. One of my favorite quotes says it all the time, “We rise by lifting others,” and that’s exactly what Collective Genius is. It’s how do we help you rise? And by helping you rise, we’ll rise with you. I mean, a rising tide raises all ships.

Wendy Sweet


You’re exactly right. Some of the best friends that I have in the business that aren’t local, are in that group, people that I’ve met in that group and people in that group have gotten us involved in other groups. And it just expands out. It’s just amazing how it just continues to produce more and more success with our work life, with our home life, with our spiritual life. It’s pretty, pretty awesome. So, share with us some of the stuff you’re picking up while you’re down there today.

Jonathan Davis


Yeah, I wanted to share two things. The first was a presentation a gentleman here gave, and basically it was about taking care of yourself and how that translates ultimately to taking care of your business.  He was talking about how there’s a group here. I think they’re called something like “Seal Team Six.” But anyway, they do coaching and mental health therapy and stuff like that. And we all forget how draining and stressful it can be to run a business or to be an entrepreneur, and the things that we’ve all experienced. And we all need somewhere to check in and unload and discuss and unpack, unwrap these things because it affects not only us. It affects our family. It affects our business, affects our employees. You know, it just ripples out from that. So that to me, you know, my wife is a mental health therapist.

Jonathan Davis


So I listened to that. I was, like, “Yes, exactly.” We translate into the health of our family and the health of our business. And you get stuff like that here because it’s not just about what your ROI is. It’s also about how you are doing because you create the ROI for your company or for your business, or what have you. So just having that level of vulnerability is, in my opinion, fantastic. I love it. Most of the guys here check their egos at the doors. I did have one guy telling me about his helicopter and his second Lamborghini. But, no, you don’t have that. You’ll have that everywhere, but I do have to mention that that guy was, he went through his whole presentation, how he lives in Puerto Rico, lives on the beach, has a couple of Lamborghinis, does 200+ flips in Atlanta and has his helicopter. And then at the end of it, it’s like, “Okay, so what can we help you with?” And he’s like, “Well, I really like to pick your own brain of how I can maximize profit.” And I’m like, “I’m sorry, you just told us you had two Lamborghinis, you live in Puerto Rico and you have a helicopter. You should be telling us how to maximize the price.”

Wendy Sweet


Yeah. There’s a clue. That’s amazing.

Jonathan Davis


But that’s one in a hundred, but, typically, it’s the guys who are like, “Hey, how are you doing? How can we help you?” And that’s what I love about this. The second piece was, you know, I’m a data guy. I love data. So Chris Richter who runs Audantic, which is a company, if you’re a fix-and-flip, or you’re looking for inventory, if you’re a wholesaler, if you’re buy-to-rent, whatever it is, you’re trying to create a book of portfolio, a portfolio of properties. This is a great data company to use. It’s called Audantic. And he was just going through, and just saying, “You know, how we analyze our success is how many leads do we get?”

Jonathan Davis


Which leads are people reaching out to us? Or communicating back to us? And then how many do we convert into contracts, then how many do the close? And then it’s like, “Oh, man. Yeah. You know, I closed 10, 15% of my leads,” like thumping, thumping your chest. And it’s, like, “Damn, I’m awesome.” And then in comes Chris Richter, he’s, like, “Okay, that’s great. Those are just house numbers.” He’s like you got a hundred leads, but how many possible leads were available in your market? Oh, there was a thousand. So of the thousand people that you could have been in front of, you only got in front of 10% of them.

Jonathan Davis


So then it converts that 10 or 15% conversion rate when you actually run it on the availability in the market, you’re less than 1%. So it’s a different way. And the whole point of that was not to kick you between the legs or anything. But it was to say, even if you improved half a percent or 1% on the overall market, that’s a huge number that translates into your house numbers. And how he described it as doing it is they scrape past data, analyze it against your CRM data. And then they find where your holes are.

Wendy Sweet


So what I think is really kind of interesting is the Chris Richter that he’s talking about. I remember when Larry Goins and I first joined this group, Chris Richter was in there, too. And he was a wholesaler at the time.

Jonathan Davis


But to get back on track, it’s just somebody who can walk you through something like that and help you realize, “Oh my God, it is actually bigger than just my business.” And I can make something better by looking at the bigger picture. So we always need those reminders.

Wendy Sweet


And as I was saying, Chris Richter, when he first started in CG, he was a wholesaler. And then he was doing some fix-and-flip stuff. And he was always a data guy in his head. He was always into data. And it was because of being in Collective Genius that he decided to get rid of the investor, the real estate investor side, and got into the data side and was able to really immerse because he looked at the bigger picture. He saw that that was a much bigger world than where he was playing.

Jonathan Davis


Yeah, absolutely.

Jonathan Davis


I do want to mention because we mentioned in the earlier one about the book “Fooled By Randomness,” and I’m going to preface this with – I haven’t finished it. I intend to finish it on my flight back, but so far it’s a fantastic read. And what I’m hearing here at the CG mastermind just echoes exactly what this book talks about. The book talks about, basically, how things are more like chance, luck, all these things are more random than we think. In fact, it is all completely random and how mild success is like, you can explain that by skill and hard work, but wild success is almost completely explained by just very instant chance. So, the scenario would be like for instance, you take a dentist and no matter where that dentist lives, you know that he has decent insurance.

Jonathan Davis


You take his life a thousand times in a thousand different possible variances. It’s not going to vary too much. He’s still going to be a dentist. He’s still going to be above-average wealth. His life is going to be fairly stable across a thousand occurrences. You take an entrepreneur and do that same logic experiment, the variance is way bigger. And that variance is way bigger because there’s more randomness associated with an entrepreneur’s lifestyle because you can make a good, sound choice because you’re making it with back-facing data. You can make a good second choice, but it’s not the right choice for that timeframe. And there’s nothing you can do about it. Or you can make a seemingly poor choice, but the timing is just perfect

Jonathan Davis


I was overhearing some guys talk about it, they’re like, “Man, yeah, I did this flip on a quad and I sold it.” I don’t know, two years back or whatever it was. It’s like, “I made like a 60K profit on it. If I would’ve held it, I would’ve made $130,000 profit today.” So in hindsight, they made the best choice at that moment with the data that they had. It wasn’t the best choice, but you can’t know that. So, I think we all need that reminder that there is far more chance and luck involved. They say luck favors the prepared. Yeah. But being prepared doesn’t dictate the amount of luck that you get.

Wendy Sweet


That’s true.

Jonathan Davis


So yeah, you can be prepared and be a complete failure. It happens. So, it’s a really interesting read when you start going through all of this. I’m gonna read you a quote from it that I wanted to pull up.

Jonathan Davis 


So one of the things that a logical brain like mine wants to do, I’m not going to be fooled by randomness. I’m going to use logic and deduction for everything, and that’s completely wrong and false. Like one of the things that he says is like, “Emotions are lubricants of reason.” We actually need to feel things to make decisions. So emotions give us energy and they are actually critical to life in the day-to-day world. In other words, the goal here is not to become a robot who can analyze everything with perfect logic because you can’t.  It touches on all these different pieces. Like we want to minimize the amount of randomness occurrences in our business, being an entrepreneur, you can do things to minimize that. Coming to Collective Genius or masterminds like that is one of them. That’s how Wendy, Bill, and I try to reduce the amount of random actions in our business by coming to places that are sounding boards. And we can utilize people’s failures and people’s successes to help us create ours.

Wendy Sweet


Yeah, and make better decisions, for sure. That’s awesome. I’m looking forward to reading that. I’m going to do that.

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