Today’s REI Classroom Lesson
Today, Steve Rozenberg goes over how you need to be an expert in leveraging both time and people so that you and your business can reach your highest potential.
REI Classroom Summary
You only have so much time in the day, so dividing out the tasks and utilizing other team members can help your business grow and be more efficient.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike:Welcome back to the flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Steve:Hey, everyone, this is Steve Rozenberg with Empire Industries Property Management, and I’d like to welcome everyone to the FlipNerd REI Classroom. Today, what we’re going to talk about is leverage.
Mike:This show was sponsored by passiverental.com.
Steve:A lot of people, I think, have a misunderstanding of the value of leverage, and they do not understand it. A lot of people think that when they get involved in real estate that they have to do everything themselves, and that is just not the case. Real estate, just like anything else, it makes you successful the more you can understand and utilize leverage.
So, using people to do things like, for example, when you use a real estate agent, that is a form of leverage. When you use a computer, that is leverage. When you use the Multiple Listing Service to find properties as opposed to you driving around, that is leverage. I mean, getting on an airplane and going from A to B is leverage, as opposed to walking there. So, there’s a lot of different forms of leverage that people don’t really think about and they don’t utilize.
Now, you, like everyone else, only have 24 hours a day, and we only have 168 hours a week of usable time, no more, no less. The reason most people fail being investors and in business is they don’t understand it’s not a matter of them working harder, it’s a matter of them not understanding the true power of leverage and utilizing other people.
So, as an example, my property management company manages well over 700 properties in Houston, Texas, and soon to be Dallas. That doesn’t mean that I’m the one doing all those things. People say, “How do you have time to manage 700 properties?” I don’t manage 700 properties. I have five property managers, I have an accountant, I have marketing people, I have sales people. I have teams. I have a team in Mexico, I have a team in India, I have a team in the Philippines. That is all called leverage. It allows me to do more with team.
Now, the truth is, in my opinion is, no one can do it as good as me. Well, I don’t really need them to do it as good as me. Even if they do it 80% as good as me, I’m learning the value of how to divide to multiply. I’m getting a lot more use, a lot more usable hours out of my company than me putting in 24 hours a day.
So, one thing that I would like to impart on you is, there’s a number. That number is $8.27. $8.27 is the number that you should know by heart, in your mind. It should be ingrained in your brain. $8.27 is, if you want to be a millionaire, you want to make a million dollars a year, and you work five days a week, eight hours a day, 40 hours a week, you need to make $8.27 per second. If you’re not making $8.27 per second, you will not make a million dollars.
So, you have to understand that you need non-negotiable minutes. You have to have, basically, protectors of your time, and you have to think about, who do you hang around with because, on average, the people you hang around with, you make $2,000 to $3,000 of those people, and how are you utilizing your time. And the one thing you want to ask yourself is, what things are you saying no to so that you can see the opportunities to say yes to? The people that say yes to everything really miss the opportunities because they’re bogged down in minutiae. They do all these small tasks. They don’t understand leverage.
So, to be a true real estate investor, they have leverage. They want to look at a property. So, for example, we have people that want to look at a property, they give us a call, we go, we look at it. My team runs the numbers, my team gets the inspections, my team gets all that done. They never leave their living room. All they have to do is sign the document and have a team go out and do it. That is leverage. You coming out to Houston and looking at four walls and a roof is not leverage. You are wasting your time, and that is not a good use of your time.
So, if you learn anything about business and real estate, you have to remember, it is a team sport. You have to get people on your team, and you have to understand that the only way you’re going to be successful is through the power of leverage.
So, this is Steve Rozenberg with the FlipNerd REI Classroom. Hopefully, this was helpful, and I will see you again.
Mike:passiverental.com is your source for turnkey, done-for-you rental properties. If you’d like to be an investor and not a landlord, please visit passiverental.com to learn how to purchase cash-flowing, professionally managed rental properties in the hottest rental markets across the country. We can also help connect you with financing for your next property. Invest the easy way today, and get started by visiting passiverental.com.
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of flipnerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
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