Two real estate developers buy the same deals—but one’s profit is twice as much as the other’s.
Two sellers buy identical houses—but one is foreclosed his with a profit of $25,000 a day, and the second is struggling for two months to earn $5,000.
If you want something done, more people can do it. But if you want to do well, the field of qualified applicants is narrowing.
This illustrates an important point: How something is done is something not nearly as it is important like WHO he did it.
Dan Sullivan and Dr. Benjamin Hardy wrote a book on this sensitive topic. It is called No How: A Formula for Accomplishing Greater Goals by Accelerating Teamwork. As we will explain, the lessons of this book are important for passive investors.
Here’s the premise: When entrepreneurs and managers plan a new project or try to grow their firm, they do it generally ask the wrong question. Instead of asking, “How do we do this?” it should ask“Who can do this for us?”
Shifting from how-to is mental to being human is a game changer passive real estate investors.
Why Shift to a “Who, Not How” Mindset?
Unless you’re going solo, you should get a group together. What you put in that group will make or break your results as well yours future. Look at any great NBA basketball team for proof.
Apple founder Steve Jobs was passionate about this practice. By hiring smart, creative team members, Steve believed he could produce more than 50 times the results produced by the average employee. Jobs said, as quoted in Inc. Magazine:
“I noticed that the dynamic range between what the average person could achieve and what the best person could achieve was 50 or 100 to one. you are well advised to follow the cream of the cream…A small one A team of players they can run around a big group of B and C players.”
Those who use this powerful system get two benefits: Their success rates increase, and they benefit more freedom—a bigger win for everyone involved.
What are some specific benefits of adopting this mindset?
- Overtime: Let someone else do what they’re good at so you can focus on the mission.
- Low pressure: Working in your “space” will lead to more happiness and fewer headaches.
- Additional focus: Those who trust their weaknesses they are free to focus on their strengths.
- Additional fee: Fewer distractions and more focus translate to more profit and wealth.
- Better relationships: Empowerment, collaboration, and cooperation will lead to this level happiness and harmony at work a never-ending workaholic cannot dream of.
- Main objective: Those who hire the right “who” are not tied to administrative details. This it provides the strength to pursue your dreams and passions.
This Is A No-Brainer For Entrepreneurs, But How Does It Work For Investors?
I’m glad you asked.
Many investors are hearing about the potential income-generating, tax-deductible, growth-promoting benefits of real estate investing. Despite having demanding full-time jobs and lives, they try to acquire and manage real estate on the side.
It usually doesn’t work. Many are disappointed with the return they receive for the effort, difficulty, and risk they expend. (Not like those house-flipping shows on HGTV!) Many quit and go back to Wall Street casinos.
We think there is a better way. Those yours who have moved from active real estate investments to passive ones seem to agree.
Passive investors have figured out the “how” of this equation. That’s a good start. But to get to the next level, think “who, not just how.”
WHO?
Moving from active to passive, or starting there, is a good decision. Although this may create time in your schedule and reduce time many the risks and concerns of active property ownership, is just the first step.
Those who stop here often make terrible mistakes actually increasing their financial risk and destroying their nest egg. You have to find out “who”.
Many real estate investors are attacking royalty at this time. They experience an “aha” moment and decide to pursue a no-nonsense investment strategy—but then choose the first operator they hear about, or the syndicator their friend just invested in, or the salesperson with the smartest website or glossy brochure.
This it is often a recipe for disaster. I have to know. When I sold my staffing company in 1997I became a full-time investor. I invested in a series of deals that produced, at best, unsatisfactory returns. In many cases, I lost all the principal.
I wasn’t there indeed the investor at all. I was a guesser.
I do a little due diligence, invest in things I don’t know much about and hope others do the same. And I chose deals based on form over substance.
I want to see you achieve a better result. And I might even be able to help.
Most passive investors have full-time jobs, families and hobbies. The more focused they are on their choices, the less time they have the time researching real estate and other investments. This this is where many make big mistakes.
I have been investing in real estate for almost a quarter of a century. The more diligently I learn, the more difficult it becomes.
How is this possible?
It’s because the deeper I dive and the more time goes by, the more things I find that can go wrong. (There are many examples!)
I hate to discourage you, but if you are a new passive investor, you should know that proper care hard. It takes concentrated effort (usually over months) and knowing what to look for and where to find it.
Who, not how
This that’s where the “who, not the how” comes into focus. If you have already decided to invest without doing anything, I recommend that you choose the operator first and the contract second.
The average operator can scoff at a great real estate deal. But a great operator can turn many mediocre deals into profitable investments. I can guarantee that you will be a better investor if you choose your partner first.
That’s a good “who“—but that he is not the only one.
You don’t just have to choose the operator before the deal. You need to select a file on the right the operator.
And that is not an easy thing. Actually, like I said, it can be difficult.
So, who are you going to work with to do this? And did you do well?
Unconventional Investments with PassivePockets
Whether you’re new to real estate or transitioning from active to luxury investing, PassivePockets is here to break down the basics and inspire you on your passive investing journey.
PassivePockets will allow you to access education, private investor forums, and sponsors and manage leads – so you can confidently find, evaluate, and invest in sales.
Join the waiting list today and connect with a powerful community of investors who realize you can build big wealth in real estate investments without tenant surveillance, leaky toilets, or “dumping” abandoned units.
Final thoughts
All the best businesses I have were involved he used the principle of “who, not how”—long before the book came out.
The same goes for all my best investments. I’ve been a real estate investor for a long time, and I wouldn’t have even considered investing in many of the deals I thought were “sure things” 20 years ago.
Like I said, the more I know, the more cautious I am. I hope you feel the same way.
We hope focus in “who” instead of “how.” It will pay dividends on so many areas of your business, life, and investment. Let us know if we can help you on your journey.
Invest Smarter with PassivePockets
Access education, private investor forums, and sponsoring and selling directories — so you can confidently find, evaluate, and invest in real estate.
A Note About BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BiggerPockets.
Source link
