Recently someone asked me “What is the easiest way to make money in real estate?” I would like to share my answer to that question with you, because it shocked the person I was speaking to but in the end, they thanked me for the viewpoint.
I began my answer by explaining that we are very fortunate at Investors Direct to have worked with thousands of active property investors over the past few years. During this time we have seen nearly every property strategy you can imagine, executed in numerous different ways. From this we have been able to research and backtrack to discover the easiest path to follow. I can tell you that what came out of this research was not what any of us expected.
But first, a quick story to illustrate the point. Personally I have always been a pretty active sportsman. I have played footy, rugby, volleyball, athletics and basketball among many other sports. I was always really driven by my love of the game and my personal ability meant I got some pretty great results at times. But no matter what sport I was playing, I always found I would gravitate to a level that was comfortable for my abilities. Despite doing extra training on my own I always found I struggled to push to new heights.
Currently I am in training to run the Gold Coast Marathon on 7th of July. I started looking back at how I got into long distance running as this has been a new thing for me. It began when Investors Direct started a personal training group to help get everyone more active and healthy. As part of our initial focus for our training we were asked to set a goal. Someone in the group said they wanted to run a Fun Run or marathon. For some reason I put my hand up for that goal. It wasn’t something I was passionate about, as I was with my other sports but I thought it sounded like a goal that would always be something to strive for.
This was reinforced after our first session when after 500m of running, I almost collapsed and was totally out of breath. At that moment, the goal seemed impossible. But I thought I would just keep coming to the group training as it was a nice social group. I found that when I showed up feeling good then my coach would push me to run faster or longer depending on the session. When I showed up feeling a bit slack and flat then my coach would make sure I ran at least to my comfort level. She never let me slack off.
Before I knew it these little incremental improvements meant I was running a few kilometres at a time without dying ☺. Next thing I knew I had run an 8km Fun Run and again I’d somehow survived! A couple of months later I ran a half marathon and 4 months later competed in, and completed, my first marathon.
I had been able to take my ability consistently to a whole new level and had actually found it easy. This was something I hadn’t been able to achieve before with my other sports and it surprised me because I didn’t even really like running at the start.
So what was the difference?
Well it was just that I consistently went to training where I had another person pushing me out of my comfort zone when I was feeling good and the same person wouldn’t let me slack off when I didn’t feel up to it. I was doing the hard work of actually running but it was made easy by someone being able to point out when they could see spare capacity and getting me to use it.
Now you may be saying… who cares about marathons! What is the answer to the property question!!??
Well, not surprisingly, the answer to both questions is the same. The easiest way to make money in real estate is the same as the easiest way to run a marathon!
Our research has established that there is no one “magic” strategy that always outperforms the others. In fact we have found that most property actually grows at a similar rate over the medium to long term.
What we did find was that those investors who obtained the easiest and best results were the ones who kept showing up to the property gym. Those who stuck to a strategy and consistently took action had the easiest path. And those who made the biggest leaps in their financial position were they ones who worked consistently with someone to help them get out of their comfort zone and use the financial capacity they had to make forward progress. Just like a personal running coach or trainer does.
So the answer to the question “What’s the easiest way to make money in real estate?” is, not surprisingly… keep investing in real estate!
Like running, sport or any other personal goal, it is never about what you have that determines your success. It’s what you do with it that matters. Sometimes someone helping you to look at your situation from outside your comfort zone will be able to help you see how you can use what you have, even better than you could on your own.
Keep at it, happy investing.