There’s a TON of information out there about how to make yourself more successful in real estate. I’m a real estate guy… and even I can’t follow it all. But the stuff I do see?
Well, it’s a mix. Some of it’s really good. There’s a lot of “OK, I guess” in there. And way too much “just plain wrong”. And the advice is all over the place:
You should absolutely handle property management yourself… except for everyone who says you shouldn’t…You should avoid flipping at all costs… except for all the experts telling you how great house flipping is…The best way to get funding is to go through hard money lenders… which is great, except for the folks (like me) who point out the pitfalls with this approach…
And on and on. No wonder folks get confused.
Enough! I don’t have time to go through every single piece of advice that’s out there and give it my personal thumbs up or down. (But I have tackled a lot of this stuff here on my blog ‒ see here and here and here, for example.) What I will do, however, is give you three strategic tips that WILL absolutely contribute to your long-term success in real estate investment. So here we go…
Focus on ONE Approach
That’s right ‒ one approach. Do your homework, run the numbers, check out the different trainings available. Then make your choice…
And stick with it!
Get as good with that approach as you possibly can. Run with it until you either have real and lasting success ‒ or you just have to accept that it isn’t for you, knowing you’ve played that particular game as hard as you could. Even if that means falling flat on your face.
You’re much better off harnessing the power of focus than letting yourself get scattered over 3 or 4 or 5 different ways of “making money in real estate.” Sure, as your portfolio grows, you can add some new tricks and approaches to your game. But start with one approach, and get really good at it.
Of course, I strongly recommend “buy and hold” with SFRs that you rent out. But if you decide to go a different route for now ‒ whether it’s wholesaling, rehabbing and flipping, or whatever ‒ then at least follow my advice here: set your site 100% on the approach you’ve chosen, and see it through. Don’t let yourself get distracted by all the other options out there.
Again, even if you fail, you will developed new skills, built up your business muscles in new ways, and learned deeply from real-life experience. Versus sitting on the sidelines dreaming about playing in the big leagues.
Respect “The Curve”
This one is closely related to the “focus on one approach” strategy above. And it’s easy to see why: whenever you learn a new skill or start a new kind of business, there’s a learning curve. And you have to respect that curve.
Let’s say you’re a successful professional now. You’ve been in your field for 10-20 years, and you’re at the top of your game…
Make a list of 5-10 of the most important tasks that you perform on a regular basis. Maybe it’s analyzing a certain kind of spreadsheet presentation… or reading a potential client’s likelihood to buy your product or service… or estimating the time and cost of taking on a new project. Then ask yourself, “How much better and more efficient am I at doing this now… versus when I started out?”
You know what I mean. You have skills now that allow you to do so many things practically in your sleep, more or less by instinct, and in seconds or minutes ‒ that took days or weeks when you first learned them. They took way more effort ‒ and your results probably weren’t as good as they are now.
So, again, whatever approach you take to real estate investing, respect the learning curve. Don’t kid yourself into thinking you’re going to master in 2 weeks what will probably require 2 or 3 years to really get under your belt. It doesn’t have to take an especially long time to become pretty darned good at this game… but it does take some time. And effort. And trial and error.
Leverage… Is Everything
Here’s a definition of a lever: “a machine which amplifies an input force to provide a greater output force.” When you use a lever to magnify your force, it’s called using leverage.
I’ve written about this before. So I’ll keep this simple: leverage… is everything.
To succeed in real estate, it’s best to leverage your capital… your time… and other people’s needs (provide a service to someone). In other words, don’t just use your time wisely ‒ leverage it. Don’t just keep your money “safe” ‒ leverage it.
Always find ways to get way more back from an investment in any of these categories than you put into it. It’s so simple – and so powerful. It’s a way of thinking that goes way beyond your investment activities.
And while we’re at it… make sure to leverage your own business strengths, andthose of your team members and partners. And always leverage whatever training you invest in by finding at least one thing to implement from it, as quickly as possible.
Conclusion: True Success Requires Different Thinking
Most people are fine folks, I guess. And I’m sure they enjoy some real successes in their lives. But not that many people achieve the kind of financial and work-life balance success that we’re all about here at RP Capital. Not by a long shot.
If you want that kind of success, you need a different mindset from all the generic “advice” that’s out there. So take these three strategies ‒ and start putting them to work for yourself TODAY.
Then, if you’re ready to apply these strategies to real estate investing the RP Capital way ‒ the RIGHT way ‒ give us a call at (801) 990-5109 or schedule your free appointment here to build your own personalized Wealth Plan. We’ll help you master the art of leveraging your capital, time, and ability to serve the needs of others… through investing in real estate.