RG 057 – Creating multiple income streams with Pat Hiban
About Pat Hiban
- Pat originally want to be a probation officer.
- In his first year as a realtor he sold 10 houses.
- Pat has written a book called “The 6 Steps to 7 Figures”
Nuts and Bolts
Pat Hiban graduated college without direction and thought he might like to become a probation offer, however when he saw the waiting list was 1.5years he trained as a realtor. There was no barrier to entry to get a real estate license at 21 years old and in his first year he sold 10 houses and made $13,000. From there he built his team, sold more houses and worked with 5 major brokerage firms to become one of the top agents to the brokerages. In 2010 he sold his company to his colleague Mike Sloane who still runs it today. Pat became a full time investor and started to invest in property and companies and built up 57 lines of passive income. He puts his success down to naivety because “I didn’t know what I didn’t know”.
Multiple income streams
Pat’s income streams are incredibly varied, for example he has 10 houses at the University of Maryland College Park for students, 7 apartment buildings, 16 companies, his book, a shopping centre and several notes. He keeps the majority of his investments in property because this is where his expertise lies. In 2008 when the banks weren’t giving loans to anyone a friend asked Pat to borrow some money to start a business, this opened up the world of company investment to him. Pat concedes that some of the small business’ he works with will fail but the majority will do well and that the reason he loses money is because he invests in things he doesn’t know very well. Pat has stopped investing in things he doesn’t understand but are exciting, for example the expanding legal marijuana market.
The online course
Pat has gathered the lessons he learned about real estate and has created an online course for potential real estate investors. He realized that there are two ways people learn about real estate; learning from an instructor on the job or getting a coach who keeps you accountable for a monthly fee. In this Pat saw a gap for people who wanted to take control of their time and where they wanted to learn. Pat’s course is split down into 5-10 minute segments and doesn’t have a monthly fee. This way people can learn at their own speed and are not beholden to monthly costs. Pat has created this for the investor who wants to learn in the spare 10 minutes you have during the day while you’re waiting for the kettle to boil or the car to de-ice.
6 steps to 7 figures
Over his career Pat has been asked by many people about his process so he decided to write it all down. Unfortunately this spanned 500 pages which was far too long for a book, but while he was cutting it down he realized the points fell easily into 6 categories, which became his 6 steps to 7 figures. The first step is creating goals and affirmations which Pat does each morning, the second step is tracking these goals which can be done through journaling, online or apps. The third step is finding the best practices of others to follow, for example by finding a mentor. The fourth step is to act; unfortunately just creating goals won’t bring success, you actually have to go out and sow the seeds and do some hard work. The fifth step is to build on any success you already have and the sixth step is to save and invest the money back into varied assets.
- Most successful habit – Find the one thing each day that’s the most important to complete.
- Most influential person – James Allen
- Tool – quick books – one sheet is like a small score card for horizontal income, personal expenses and whats left to invest – each person has a score card.
- Worst deal and lesson you learnt? – Apartment deal where he put in $430,000 and got back $110,000 – things went wrong after 2 murders on the property.