July 6th, 2022
Something I’m Reading
I finished The Changing World Order by Ray Dalio which I mentioned last week. I’ve been reading Beyond Order by Jordan B Peterson which is a follow up to 12 Rules of Life also by Peterson.
Something I Teach
I get asked a lot by people when they should invest in real estate passively through funds like Open Door Capital versus when they should just do it themselves. Here’s my thoughts:
There’s investing money and then there’s creating money/wealth. Investing money is deploying money into passive investments where your capital grows anywhere from 5-15% annually. Creating money is typically through a business. When you have less capital, its best to use your capital to create money before you invest it.
For example, if you invest $5k-10k in passively, you may average a 15% return over the next few years but this is a fairly small amount of money and would take a really long time to grow. However, if you take that $5k-10k and used it for direct mail marketing to land an off-market deal that you then flip and make $50k from - thats a much better use for that money but is also more active.
Once you’ve got several hundred thousand dollars to invest, you can continue to do it yourself if you like doing it yourself but most likely you can get a similar (if not better) return by investing with one or several companies that you like and trust and it’s way more passive.
If you enjoy the work of real estate, there’s nothing wrong with that. But if you have a career that has scalable income like being an entrepreneur or salesperson, you’re probably better off focusing on what you’re already good at doing and making more money there then dumping it passively into a real estate investment.
Something I Photographed
Happy Fourth :)
Something I’m Excited About
There’s a lot to be excited about this week! Open Door Capital will be launching one of our biggest deals to date tomorrow in one of the hottest markets in the US. You can expect a launch email tomorrow with more info. If you aren’t already on our email list, sign up at odcfund.com/email.
Secondly, I’m hiring for TWO positions that will work directly with me:
Executive Assistant - fully remote person to help me schedule and organize my life
House Assistant/“Mother’s Helper” - an in-person position here in Maui to help around the house, play with the kids when I’m not, help Heather with everything and even travel with us a bit
Learn more and apply at odcfund.com/jobs.
P.S. Applications are closing Friday (edited)
Something I Can Answer
Every week, I answer one question asked by a BTB subscriber. Have a question you want me to answer? Reply to this text with your question!
Question: “I work a W2, do real estate on the side, and have a family/personal commitments. In my spare time, my mind often feels too “tired” to think or learn so I have no motivation to read nonfiction books in my downtime. Any tips to overcome this?”
I’ve been there and in many ways, I’m there a lot. For me, I am able to best retain knowledge and info in the morning. So I am a big believer in reading a small amount (no more than 10-15 minutes) in the morning after my morning coffee. That has become part of my routine. Although it’s only a few minutes of reading, it’s at a time that is very effective AND its more important that I read for a few minutes everyday than reading for an hour once a week. Additionally, I also try to listen to an audio book once a week while going on a walk or jog.
Your Friend,
P.S. Comment below and let me know your thoughts on this week’s BTB! Please be friendly :)