It is that a single person can create a ripple effect of change in the world. To make the world around you better, you have to choose to personally be better.
If you’ve never heard of James Altucher, I would recommend reading this book for inspiration and self help before Googling his name plus real estate…
It is pretty clear I don’t entirely agree with the author’s view on real estate ownership (he has some great counter arguments against real estate ownership). I do align with the self improvement view points of this book.
You can learn from people even when you don’t agree with 100% of their points.
I still highly recommend his blog because it will inspire you and you’ll get a good laugh along the way. His writing style is enjoyable because it is so honest and self depreciating. A lot of people put up a front and pretend to be something else yet he has found a way to be brutally and authentically open. James has a great rags to riches to rags to riches to hopefully remaining rich story arch.
As mentioned above though, he doesn’t ascribe the same real estate as a vehicle for building wealth philosophy that you share (since you’re reading this). I encourage you to read his arguments and make up your own mind. Personally, I appreciate the arguments that he makes and actually agree that many are valid. Perhaps more on that at another time.
Real estate investing is almost entirely based on the future (inflation, wealth creation, cash flow projections, saving up for cap ex projects). The very definition of investment takes into consideration the sacrifice of access to money now so that we can grow it for the future.
Most investors I have met are forward looking, future dreaming, and goal oriented planners. We love thinking about the potential wealth that can be grown from a little seed money watered with rays of time and the rain of compound interest.
These are fantastic qualities because people with a plan are usually the ones who reach their goals.
The thing is, that mentality can take a toll on the body and mind. It can burn us out and make us lament at all the success yet to be had. This book is a reminder step back to see the big picture and live in the moment.
Lesson 1: Houses and people need a strong foundation
Everything built upon a weak foundation is, itself, weak.
What you need to do is build the house you will live in. You build that house by laying a solid foundation: by building physical, emotional, mental, and spiritual health – James Altucher
It doesn’t matter how well the house if framed or roof is tiled. If it is built upon an unstable foundation then the structure is more liability than asset.
The same goes for people. You need to take care of yourself: physically, mentally, emotionally, and spiritually. Sure you can work 15 hours days 7 days a week, eat terribly, and miss out on sleep while ignoring vital relationships.
There are times in our lives we need to hustle and make things happen. That is what real estate investors do, we hustle! But if that becomes the norm, it is truly a detriment to our health and a one way ticket to getting burned out.
Science has proven that we make better decisions and choices when we are healthy, well rested, and effectively managing stress.
There is what I would consider to be a pretty radical idea presented in the book that amounts to, only do the things you like doing.
Pretty tall order, but the more I thought about it the more I saw it as something to aim for. It is pretty rare that you want to do every single thing that is necessary for your REI business. Even if you enjoyed it, that is an inefficient use of your time.
Do want you like doing (strengths) and find a way to outsource/delegate/assign the rest to competent trustworthy people and supervise. Don’t forget to supervise!
Also see my article on “Extreme Ownership” by two Navy SEAL patriots
Many people mistake this for a lack of responsibility like “oh, I don’t like dealing with tenants so I’ll hire a property manager and forget about it”. That’s not true. It is still ultimately your responsibility to know what is going on.
You can delegate tasks and even authority, but you cannot delegate responsibility.
The word “No” is uncomfortable.
It’s powerful because it releases you from having to go places you don’t want to go and be around people you don’t want to see, but it can still be uncomfortable to say it to someone (especially if you like them). It is necessary.
Everything you say “Yes” to is essentially a “No” to something else. Yes, I will rent this unit to tenant A is also no I will not be renting this unit to tenant B.
Lesson 2: Be useful
One of my big goals (probably not alone here) with real estate investment is to transition to becoming a full time investor and not rely on a 9-5 job.
Baby steps are ok, neither this book nor I am saying quit your job right now. There are benefits to having a job, which is another article entirely, but the goal of becoming my own boss is not about freedom as much as it is about self determination.
I want to gradually transition myself from other people determining the course of my life. Who hasn’t dreamed of quitting their job right? We can choose to take the right steps to make all that happen.
What it takes is skill and confidence.
There are many skills involved in real estate investing:
- Negotiation
- Financial comprehension
- Leadership
- Time management
- Sales
- Persuasion
- Marketing
- Project management
You get the point.
Some of you looked at that list and felt pretty good. Some of you felt your stomach sink. Not to worry, I have good news. You can always improve in a skill set if you dedicate enough time and practice. With that you develop confidence.
Skills are what make you useful. They are what make deals happen.
We get paid to solve real estate problems whether that is an ugly house to flip or a pretty house to rent to someone who needs a place to live.
We are valuable specifically for the skills needed to make situations winnable.
Be a good person. Be the kind of person you want to deal with. Embody the values you want in your friends and business partners. Develop values and traits of the people you would want to deal with:
- Honesty
- Integrity
- Compassion
- Understanding
- Authenticity
Always continue learning and developing. Become an expert. Look for mentors and colleagues. Surround yourself with the best people. Speaking of people…
Lesson 3: It’s always about people
Pick the right circle.
Real estate is a people business is one of our battle cries here at REIMindset for good reason.
There are some people we choose to have in our lives
- Family
- Friends
- Business partners
- Employees
- Romantic partners
There are some people that are there by default like family. What we always have is choice over how much time to spend with them (this is the part where saying no is even more uncomfortable, but also essential).
Your REI business lives and grows on good customer service. Actually, GREAT customer service.
There are a lot of people that we weave into our REI business that need our attention and of course, it’s urgent. This is where prioritizing customer service is important.
Actually, while this book is about general in business, for real estate investors customer service is far more important. Why?
Because of tenant landlord laws. Not only is there a financial and moral obligation but also a legal obligation.
Where someone lives is far more important to them then some shirt they bought off Amazon that needs to be returned.
Real estate investing is the big leagues of customer service. The good news however, is that if you screen well you get to “choose” your customer (of course always complying with Fair Housing Laws).
The same philosophy of excellent customer service applies to all the other branches of real estate investing.
- If you are untrustworthy as a wholesaler selling to other investors, you lose your buyer’s list.
- If you craft an excellent property at the end of your flipping renovations, more real estate agents would be willing to show your property.
The word customer in the world of real estate investing applies to many people, so treat others well.
Finally, choose to be happy right now.
Who knows what tomorrow brings?
It could be the once in a life time cash cow of a deal or it could be a lawsuit. We cannot control all things despite the planning, contingencies, and systems.
What we can do is show up, do the work, create value in the world using our skills, and help people.
The goal is to be the ocean – the central force in our existence that moves mountains, creates all life, shakes continents, and is respected by everyone. – James Altucher
What you can do it choose yourself.
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