Don't fall into the real estate investing trap that most investors fail to recognize. Working harder and longer hours doesn't buy you more units. In fact, it does the opposite. I will tell you how most Elite Investors build a sustainable real estate investing empire.
Real estate investing is an extremely demanding occupation. In the early stages, you are so hungry for information, for success, for your next deal, that you never notice the hours you’re putting in. You get your first deal done, and then your second, and then your fifth. Before you know it, you’re so busy you begin to feel like you could work 24/7 and never catch up. And the better you get at investing, the busier you become. It’s an exciting yet vicious cycle if you don’t control it. Whether you’re a smaller investor who does deals as a side hustle to build wealth for retirement, or a medium-size investor making a living doing this, or maybe you’ve built a large regional or national investment company, you must have the right work/life balance or you’re going to hit a wall.
John Pencavel, of Stanford University, studied productivity. He found that as you increase the number of hours, productivity increases, but only up to a point. After 50 hours a week, the growth in productivity slows down. Past 55 hours, productivity plummets. When you make family and friends a priority and you get your business back on a more reasonable time commitment, you will become a different person. You will attract higher quality staff to your company, and your existing staff will follow your lead in living a healthier lifestyle. More investors will want to invest with you. Who wants to invest with a stressed-out partner who may not live through the asset’s holding period? Best of all, you’ll have more time to simply think about your business, instead of constantly trying to keep up, and you’ll come up with even more ideas about how to accelerate your status as an Elite Investor.
In the end, nobody’s going to care about how many units you bought or sold in your career, or what your net worth was. The most elite investors in the world that I get to work with place enormous importance on time with their family, their friends, and personal hobbies. In my 20+ years of experience of brokering multifamily assets, I’ve met a lot of investors and have seen a lot of them hit the wall. The vast majority of them are men, aged 40-55, and they’re at the top of their game. In the video link below, I read a chapter of my book about a man named Joe. He’s a real person I know. He had been buying small multifamily properties since the 90s. At the age of 22, with no spouse, no kids, he would work his tail off. He yearned for the grind. He loved it. Hear how his story ends.