Back in 1998 when I took my first step into real estate investing, I was strongly influenced by people who believed you had to be a dominant force in your market to make real money. Many people stressed doing as many deals as possible and beating out the competition. “More deals meant more profits.”
This mentality is still prevalent in the real estate investing world today. And the effects of it have not changed.
As a newbie, I took their teaching to heart….
I did over 100 deals in my first two years.
I was proud of my accomplishments and knew many around me were impressed with my successes.
However, when I slowed down—which was hard—to look at the big picture, I saw something interesting. I was doing lots of deals and making more money than ever, but I had little control elsewhere in my life.
My time was slipping away from me, and the good life seemed to be elusive. I felt more like my business controlled me than me controlling my business. Worst of all, I wasn’t living a life that felt fulfilling.
I’ve talked with many investors across the country and always ask what draws them to real estate investing. The answers vary, but typically can be summed up in one sentence:
“I want a better quality of life.”
Over my years of investing, I have come to realize that QUANTITY does not lead to QUALITY.
If you want real estate investing, or any business for that matter, to provide you with a good quality of life, you need to pursue good quality transactions, not necessarily a good quantity of transactions.
What are quality transactions?
They’re deals that contribute to the advancement of your goals or life vision. Your business should serve the life you want to live, and each step you take should get you moving in the direction that you want to go.
Many real estate investors start buying homes with no idea of what they really want to accomplish with investing. As a result, they buy anything that looks like a deal and. All too often, get pulled in directions they never intended to go. Before long, they feel like they are in bondage to their business.
Your goals should drive your decision making. For example:
- A person who needs money today and buys a property to keep it as a rental is contradicting or not fulfilling the original goal. Rental properties will not reap quick, fast cash today. Is this a quality deal? No.
- Or let’s say your goal is to free up your time so that you can do other things that are important to you. If you only want to work 20 hours a week and are taking on deals that require 40 hours a week, you’re not doing quality deals. You’re focused on quantity.
We need to make sacrifices to achieve the success that we desire, but need to be careful not to sacrifice the important things in life.
If you’re pursuing investing to achieve a better quality of life, ask yourself with each deal: does this move me closer to my life vision? Is this a quantity deal, or a quality deal?
- Working Hard vs. Working Smart – how working more is not inherently the road to success
- Just Because You Could Doesn’t Mean You Should – how to avoid chasing too many business ideas
PS: If you’re looking for resources to start or improve your Vision, you should check out our Lifeonaire Fast Start kit found in the Training folder on the FREE Lifeonaire App! Plus if you join the app, you’ll get to browse conversations about topics like discussed in this blog post. You can even talk to Steve (he’s on the app A LOT!) about this very post! Check it out in your app store (look up “Lifeonaire”), or learn more here.
Copyright © 2020 by Steve Cook