Many real estate investors I speak with have hit the wall. They’ve achieved a level of success. For some it’s 10 single family rental homes, perhaps a few small apartment buildings. They’ve maximized their credit. They have no more hours left in the day. They are not generating enough cash flow to afford hiring. They want hundreds, or perhaps thousands of units in their portfolio, but frankly have no idea how to get there.
Is that you?
There are several factors that may be holding you prisoner to that situation. First, you’re bringing a self-employed mind-set to the business. A business owner, and an investor would never stay stuck in the trenches for very long. The biggest mistake that many new real estate investors make is to aim too small. You probably started with something you could afford with your own capital. You probably decided to start small so that if you made mistakes, the mistakes wouldn’t be too large. That made sense at the time.
The problem is, you have entered an orbit from which there is no escape. The chances of growing organically and getting a 10x multiple on your growth are very small.
When you are small, you can’t afford the skills needed to grow the business. It’s actually easier to go bigger. But you need to undertake larger projects. Only larger projects can afford the skills needed to scale as part of the overall budget.
What is the solution?
You probably need a mentor. Not just any mentor. You need someone who has a demonstrated track record and is actively developing the kind of projects that you want to own. They need skills in project management, raising capital, organizational design, negotiation, and they must be a good teacher.
That will shave a decade off your development progress.
