Two home flippers make a similar deal, but one makes twice as much profit as the other.
Two wholesalers buy identical homes and one sells His Meanwhile, one company made $25,000 in profit in one day, while the second company struggled to make $5,000 over two months.
If you want to achieve something, there are plenty of people who can achieve it. But if you want to excel, the pool of qualified applicants narrows.
this It illustrates the key points: how something Done teeth Not so much important As Who Doing that.
Dan Sullivan and Dr. Benjamin Hardy have written books on this important topic. it is The Who and the How: A formula for accelerating teamwork to achieve bigger goalsAs we will see, the lessons in this book are extremely important for passive investors.
The premise is this: When entrepreneurs and managers plan a new project or try to grow their company, they usually Asking the wrong questions. Instead of asking, “How do I do this?” ask“Who is going to do this for us?”
The shift from thinking about how to thinking about who Passive Real Estate Investor.
Why we’re moving from “how” to “who” thinking
Unless you choose to be a solopreneur, you will need to assemble a team. Who you include in your team will determine your results. your The future. For evidence, just look at the great basketball teams in the NBA.
Apple pioneer Steve Jobs was a big believer in this approach. He believed that by hiring the most creative and inventive team members, Steve could produce 50 times more than the average employee. Jobs said: Ink Magazine:
“I’ve found that the dynamic range between what the average person can achieve and what the best person can achieve is 50 to 1 or 100 to 1. I gave good advice. Pursuing the Best…Small A-class player team They can overpower huge teams of B and C players.”
Those who practice this powerful principle will achieve higher levels of achievement, And they achieve This allows for much more freedom and is a huge benefit to all involved.
What are the tangible benefits of adopting this mindset?
- More time: Let others do what they do best and focus on the mission.
- Less stress: Working in your “zone” will give you more pleasure and fewer headaches.
- Further focus: People who entrust their weaknesses to others Freely Focus on your strengths.
- More money: Fewer distractions and greater focus translates into increased profits and wealth.
- Better Relationships: Through delegation, cooperation and partnership, Level The joy and harmony at work that a workaholic who doesn’t delegate tasks could never dream of.
- The larger purpose: The right hires won’t get bogged down in administrative minutiae. this It gives you the energy to pursue your dreams and passions.
This makes sense for entrepreneurs, but how does it apply to investors?
I’m glad you asked.
Many investors hear about the potential income, tax savings and growth benefits that real estate investing can bring. They try to acquire and manage real estate as a side hustle while also having a busy full-time job and life.
It usually doesn’t work. Most people end up disappointed with the return they get for the effort, hassle and risk they put in. (Not like those house flipping shows on HGTV!) Many quit and go back to the casinos of Wall Street.
I think there’s a better way. your Investors who have shifted from active to passive real estate investing seem to agree.
Passive investors understand the “how” of the equation, which is a good start. But to take it to the next level, we need to consider not just the “how” but the “who.”
Who?
Switching from active to passive or starting from there is a great decision. It frees up your schedule and Many While there are risks and hassles that come with active property ownership, this is only the first step.
Those who stop here often make a terrible mistake, actually It increases their financial risk and destroys their investment reserves. You need to be smart about who the right “who” is.
This is exactly where many passive real estate investors fail terribly: they experience an “aha moment” and decide to pursue a passive investing strategy, but then they go with the first provider they hear about. or The syndicator your friend just invested in, or the marketer with the slickest website or the most shining brochure.
this That is often a recipe for disaster. I should know that. When I sold my staffing agency in 1997I became a full-time investor.. I invested in a series of trades whose results were, at best, unsatisfactory, and in some cases, I lost my entire capital.
I wasn’t Really Investors Absolutely.. I Speculator.
I did very little due diligence, invested in assets I knew little about, trusted others who had done the same, and chose deals based on form over substance.
I want you to achieve better results, and maybe I can help.
Many passive investors have full-time jobs, families, and hobbies. The more you focus on your specialization, the more likely you are to succeed. time To research real estate and other investments. this This is where many people make big mistakes.
I’ve been investing in real estate for almost a quarter century, and the more I learn about due diligence, the more difficult it becomes.
Why does this happen?
Because the deeper we dig and the more time we spend, the more things we find that can go wrong (examples abound!).
I hate to disappoint you. If you are a new passive investor Due diligence is difficult. It requires focused effort (usually over a few months) and knowing what to look for and where to find it.
Not who or how
this Here the focus is on “who” rather than “how”. If you have already decided to invest passively, we recommend that you choose an operator first and then a deal.
A mediocre agent can ruin a great real estate deal, but a great agent can turn most mediocre deals into profitable investments. Choosing your agent first is almost guaranteed to make you a better investor.
It’s a wonderful“—but it is It’s not the only one.
Don’t just choose an operator before you trade. right operator.
And it’s never easy. in fact, Like I said, it’s hard.
So who will you partner with to get this done, and do it well?
Passive Investing with PassivePockets
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PassivePockets gives you access to education, private investor forums, sponsorship and deal directories so you can search, vet and invest in syndications with confidence.
Join our waitlist now and connect with a powerful community of investors who understand what you can build wonderful You can build wealth in real estate investing without having to look after tenants, turn off toilets, or “rough up” abandoned properties.
lastly
Best business I’ve ever been in Involved Long before this book was published, the principle of “not how, but who” was put into practice.
The same is true for all of my best investments: I’ve been a real estate investor for many years, and many of the deals I thought were “sure things” 20 years ago I would never even consider investing in.
Like I said, the more I know, the more cautious I am, and I hope you feel the same way.
We hope You are focused Focus on the “who” rather than the “how.” So It can help you in many areas of business, life and investing, so let us know if we can help you.
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BiggerPockets notes: These are opinions expressed by the author and do not necessarily represent the opinions of BiggerPockets.
