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To be the best, you must study the best
Your guide to the qualities of the .000001%
Over the past year or so, I have emphatically studied the best real estate investors
While there is no “magic formula” for success in real estate investing, I realized something:
the best real estate investors talk and exhibit many of the same qualities
By understanding these qualities and striving to cultivate them in ourselves, we can improve our chances of achieving long-term success
So, without further ado, let's dive into qualities the most successful real estate investors all talk about
Execution is Key
Execute, execute, execute. Find or become the best in class operator, or else…
If you know how to execute, only then can you succeed
It is clear, the better you can execute on direction, the farther you can go
Integrity > All Else
Never deviate from your sense of right and wrong. Your integrity must be unquestionable
Staying Power is THE Differentiator
The ability to maintain ownership through down periods chiefs amongst the most important things an operator can prepare for
Sufficient cash on hand, long term, conservatively leveraged debt are a few of the qualities the best investors look for
Hold on to Your Best Assets
The biggest mistake an investor can make is selling at the wrong time
The most money I have ever lost was selling too early. Let your winners run
Go Big
It’s as easy to do something big as it is to do something small
Reach for a fantasy worthy of your pursuit, with rewards commensurate to your effort
Stephen Ross built the Time Warner center with little experience of this scale beforehand
If its not uncomfortable, its not big enough
Great employees are key → Incentives attract and retain great employees
The best way to treat capital like your own money is to incentivize people based on the performance of the investment
Correctly devised incentives empower employees to think and act like an owner
Finding your true passion is pivotal
The only way to do great work is to love what you do
Seek meritocracy in your life
Your first job should have two characteristics:
1. A culture of meritocracy
2. A culture of teaching
When Gerry Hines arrived in Houston, TX, he recalled people asking him what he could do, not what his father did
The best players don’t play games that don’t allow the cream of the crop to rise to the top
Understand your strengths and weaknesses
Put your time and effort into what you are great at
Find other people to supplement your weaknesses
The best investors found their “zone of genius” and stayed there
They don’t wander off the reservation and start throwing capital at things they don’t understand
Embrace Failure → It’s the best teacher in an organization
Experiences are the foundation of your career
You learn more from failure than success
Openly talk about failure in your organization
Blackstone in notorious for openly speaking about failure, dissecting it, and making sure to not repeat it
By studying the best, only then can you become the best
I hope you have found these lessons as valuable as I do
Until next time,
Jake
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