Why Some Real Estate Investors Need To Change The Way They Think
By JD Esajian on May 22, 2015
There are a lot of real estate investors that have been experiencing success for a long time now. They’ve been out there hustling for the last couple of years – maybe even since as far back as 2008. They’ve been out there on the field making things happen. They’ve been raising backers, hitting home runs, out maneuvering the competition, and they are having a ball dancing in the end zone as the new money flows in. These are great things to celebrate, and it’s important to enjoy every moment of the journey. However, is there a point where it can go to your head?
When it comes to real estate investing, you could be the greatest negotiator, deal finder, marketer, or fundraiser, but there is a lot to the industry. There is always something else. Even the greatest NFL players know their time is very limited. Their next game could always be their last, and they are only ever as good as their last game, or maybe season at best. Even with endorsements players are always trading time and for money. They always have to be playing, and if not playing, they are training. As good as the pay is, it is always limited.
Isn’t it Better to be the Coach?
Wouldn’t it be better to have a whole team of all-star players making plays for you? Having a whole team doing all the running, heavy lifting, and taking the blows? A coach is much more valuable. Consider how many head coaches there are compared to players.
A coach calls the shots, makes the plays, coordinates the entire game, and brings out the best in each player. A coach has a lot longer career than a player too. They can even go on to coaching teams in new states, or countries. The coach benefits from each team member’s performance.
In real estate ,that is like having an expert sourcing properties for you, a veteran negotiator closing the leads, a pro analyst measuring the competition and completing due diligence, and a team of PR and marketing pros to make the most of it all.
You train the team. The team hustles on the field. You see the results.
Maybe you can do even better than that?
Why Not Own the Team?
What about being the team’s owner? The owner of a sports team can have multiple coaches or generals. Maybe they can even own multiple teams at once.
That alone can dramatically and exponentially upgrade the paydays and scale. However, owners don’t just get wins when each of the team members do. They have more revenues streams and assets too. Their business is bigger than a game, a season, or sports career. This is where real estate investors begin winning a lifetime or multigenerational wealth.
Most have heard of Mark Cuban. He’s the owner of the NBA’s Dallas Mavericks, and a very notable investor. He gets as much attention as the best players. But he’s also worth $3 billion or more. He could let the Mavericks go, and still never be hurting for money.
Cuban did his fair share of sales work on the front lines when he was young too. But when you step into the owner’s shoes you get to focus on the big time. Of course there are other perks to holding this position besides the money too. There is the freedom. You can actually take a vacation in your jet whenever you like, and you probably won’t be worried about making your light bill or car lease payment every month.
How do you get from Player to Owner?
How to you get from here to there? Do you need to be an MVP first? How many owners ever played? Or coached? Starting in the trenches can be a great way to really understand the game. Others argue that it is better to start right. Start as you mean to finish. If you can, start in the owner position and keep growing. You can always hire coaches to manage your team of real estate pros and maximize their game. You can always put yourself on the field later if you really want to.
What will you do?