Let me say this right out of the gate, just to tick some people off:
If you can’t do this business part-time, you’re not gonna be able to do it full-time.
To me, this is right up there with these other paradoxical truths:
“The less I do, the more I make.” (Ron LeGrand)
“If you want to be rich, you need to be lazy. If you want to be REALLY rich, you need to be incompetent, too.” (Rich Dad)
If you have immediately rejected those ideas off-hand, you can skip the rest of this article.
But if you’re the kind of person who likes to stand on the edge of the coin and see both sides, then keep reading.
Let those ideas percolate in your brain for a minute.
Instead of saying, “that’s ridiculous,”ask yourself, “HOW could this be true?”
Your brain will then start coming up with ideas and ways these statements could be true.
Am I saying that when you start a business you shouldn’t be hustling and doing whatever you can to get the flywheel spinning? No. That’s important.
What I’m saying is that the more you remove yourself from the business, the more deals you’re going to do. Period.
Would you rather make $400k/yr working 80 hours a week, or $600k/yr working 5 hours a week?
Or try it the other way: would you rather make $600k/yr working 80 hours a week, or $400k/yr working 5 hours a week?
I began this article with a bold statement: if you can’t do the real estate investing business part-time, you’re not going to be able to do it full-time.
My mentor, Ron LeGrand, taught me that a long time ago.
What it means is that if you think you have to put in 40+ hours a week to do this business, you’re doing it wrong, and you’re simply not going to last. Either your competition or your own personal burnout is going to kill your business.
It also means your mindset is backwards. Instead of working harder, you need to be constantly looking for ways to work SMARTER.
This is the 80/20 principle in action.
This means that 80% of your success comes from only 20% of your activities.
Your job as an entrepreneur and owner of your real estate investing business is to constantly be shifting resources from the bottom 80% of activities to the top 20%.
This especially applies to your personal time. You want to only be doing the highest dollar-per-hour tasks in your business, and delegate everything else.
In my own real estate investing business, here’s what I spend my measly ~5 hours a week doing:
- Making Decisions.
Actually, I guess that’s it. I was going to make a list, but nope, it’s just that one thing.
What decisions do I make?
These days, I’ve got such a great team that the only thing left for me to do is to decide which houses we ultimately buy, and which buyers’ offers we’re going to accept.
Everything else is either automated or delegated.