Investing is more about learning than earning.
One of my favorite clients let me in on a secret the other day.
Ray is a joy to work with. He is as rich in spirit as he is in material wealth. And he earned his wealth honestly -- raising a family on a firefighter’s salary, saving and investing carefully for many years before branching out into bigger and bigger real estate deals.
We were putting the finishing touches on his latest deal when he looked me in the eye and told me, “You know, I never sold a piece of real estate I didn’t wish I couldn’t sell again.”
He had been very lucky, living and investing in a desirable coastal city that had seen good economic growth and population growth for decades, where rising real estate prices were almost as reliable as the tides.
One building he sold a few years ago for $5 million had just been re-listed, this time for $10 million.
So I had to ask him: why not just buy and hold one property, if it’s always going to go up in value anyway?
He smiled at me. “Because practice makes perfect.”
You’ve heard it all before, he explained.
It’s like exercise. To get stronger, you train.
Or like playing a musical instrument. Talent isn’t enough. You have to put in the time and the practice.
In real estate, there are plenty of good financial reasons to move on to the next deal and keep your capital in motion. You have to repay lenders and partners. And there are always taxes to pay.
It’s what economists call the “velocity of money.” And it works the same way for national economies as it does for a business. Faster money means a healthier economy and a healthier balance sheet.
A $5 million deal takes just as much work as a $50 million deal. You have to do the same due diligence, and you have to fill out the same paperwork. The only thing that’s really different is the number of zeroes on the check.
But all of the financial stuff is secondary to the real reason you do it.
You live and learn. In fact, life is all about learning. Only through repetition are you going to be able to develop the systems and processes that lead you to success with bigger and bigger deals. You find the right agent, the right insurance broker, the right attorney. Through trial and error, you put together the right team. You keep them loyal by giving them work consistently, and they reward your loyalty with good work that you can learn from.
Ultimately, it’s not about growing your business.
It’s about growing yourself. Becoming stronger and smarter each day.
Your business is just a vehicle for doing that.
Are you looking for opportunity in the right place?
Book a consultation with us at info@varamark.com to make sure you’re making the most of your market opportunities.