August 21, 2024
Something I’m Reading
I just started "Antifragile” by Nassim Nicholas Taleb. After picking up this book several years ago and trying to get through it once before, I’m attempting to read it again. It feels like this is way above my mental pay grade. But my friends Jorden House-Hay and Alex Felice have been pushing me to give it another try but I don’t know if I’m smart enough to comprehend what it’s trying to say…
Something I Photographed
Rosie is learning how to text, so I texted her a selfie of us on the plane 🤣
Something I’m Excited About
Hitting the Minnesota State Fair this weekend! Gonna get myself a bucket of warm cookies (yes, you read that right… a bucket of cookies. #StateFairFood!). Now, for all of you wondering how a bucket of cookies fits into my diet and goals for fitness… it actually does. As my friend Adam, with MyBodyTutor talks about, “indulgences” like this should be planned for… and then enjoyed guilt-free. If you want to know more about Adam’s philosophy (that helped me lose 40lbs and changed my view on food in big ways) check out the interview I did with him on The BetterLife Podcast, episode 53.
Something I Recommend
I learned the hard way that managing tenants can be a nightmare without the right tools. That’s why I now use TurboTenant. It simplifies everything from background checks to credit reports, so I can avoid problem tenants from the start. Plus, it helps with marketing, custom leases, and automatic rent payments, making my life as a landlord so much easier. Don’t make the same mistakes I did. Use code Brandon10 for 10% off at TurboTenant.com/betterlife."
One of the most powerful tools in real estate is something surprisingly simple: a handwritten note. In a world full of emails and text messages, a personal touch stands out and gets results. Whether you're looking to buy your next investment property or reach more potential sellers, Ballpoint Marketing handles it all—from building targeted lists to crafting and sending personalized notes. Their 'done for you' service has been a game-changer for my business. For up to 15% off, visit BallpointMarketing.com/BetterLife. I don’t earn anything if you buy—I just believe in the power of their work.
Some Thoughts to (Hopefully) Make Your Life Better
I often find myself advising entrepreneurs against starting a real estate investing business. Why? Because for most entrepreneurs—whether they run a car wash, dog wash, or any other type of business—the best way to achieve great income is by scaling the business they already understand and have years of experience in.
Here's a common scenario: An entrepreneur spends a decade building their business, moving from barely scraping by to suddenly having more income and free time than they know what to do with. Boredom sets in, and they decide to shift focus—often buying low-quality rental properties in rough areas because they think that's how real estate works.
The same entrepreneur who was earning $250,000 a year from their dog washing business now finds themselves fixing toilets at 11 PM because of #LandlordLife.
Let me give you an analogy: When a rocket leaves Earth, most of its energy is used to escape gravity. Once in orbit, moving around requires much less effort. The same is true for building a business—the early years are the hardest. But if you push through, eventually small efforts can yield big results. However, once you're "in orbit," boredom can lead you to admire the hustle of real estate investors.
In my opinion, it's often easier to scale your business from $1M to $10M than to build a new business from scratch. That said, I'm not against entrepreneurs having real estate in their investment portfolios. Real estate is a secure investment with steady cash flow, appreciation, and tax benefits. Unlike most businesses, it’s unlikely to go to zero.
So, how can entrepreneurs invest in real estate without getting involved in the day-to-day grind? Here are three options:
Lend to active real estate investors: You can fund house flippers or landlords, secure a lien on the property, and earn a fixed return while they do all the work.
Partner with an operator: You can be the funding arm in a real estate investment. For example, at Open Door Capital, we pool investors' money to buy and manage large commercial properties, and our investors receive a significant portion of the profits and tax benefits.
Invest in turnkey rental properties: These properties come with property management in place, allowing you to grow your rental portfolio without the hassle of dealing with tenants and repairs.
Starting a real estate investing business is challenging and requires years of hard work and learning. While I'm glad I did it, if you're an entrepreneur with scalable income potential in your current business, it might be wiser to stick with what you know, fight the boredom, and scale that instead. But, of course, it’s your life—these are just my thoughts!
Have a great week,
Disclosure: “Some of the links in this post are affiliate links, which means I may earn a commission if you click on the link and make a purchase. However, please note that all opinions expressed here are my own and I only recommend products or services that I have personally used and found valuable."