Live From Tulum Mexico
Welcome to the Real Estate Espresso Podcast, your morning shot of what’s new in the world of real estate investing. I’m your host, Victor Menasce. I’m coming to you live from Tulum, Mexico, where we just wrapped up our Build to Scale Mastermind. This is our annual event held roughly the same time each year. We chose this time because it’s a chance to start planning for the next calendar year before the start of next year.
Unlike past years, this year focused on more than just goal setting. We did spend considerable time on goal setting, but we also ~~spend~~ πspent time on the topic of business scaling with an emphasis on mergers and acquisitions. The goal setting segment was much narrower than in past years.
Now, when people think about goal setting, the mind generally goes towards achievement, but there’s two types of goals. There’s achievement goals and habit goals. An achievement goal might be something like, I don’t know, winning the World Series in baseball. That would definitely be an achievement goal, but a habit goal might be in practicing and perfecting a particular skill. So this year, the theme was absolutely habit setting.
Our lived experience is not achieving specific milestones, because these are moments in time with long journeys to achieve those milestones. In the workshop, we shared a video interview from Clayton Young, who’s in fact been a past guest on the show. You might remember him as the marathon runner who represented the US in the Paris Olympics. He could have set a goal to achieve a certain result, like for example, ending up on the podium or maybe running a personal best time in the marathon.
Well, as it turns out, he went into the marathon ranked 64th in the world, and he finished the race in ninth place. That was a top 10 finish. Now, the Paris marathon is very different from most other marathon courses. There’s over 1,400 feet of vertical elevation gain through the middle 20 kilometers of the course. This makes Paris ~~that~~ πone of the most difficult marathon courses in the world.
The usual metric for most marathon runners is minutes per mile. But in hilly terrain, that measurement is going to be all over the place. It turns out that his running shoes are outfitted with all kinds of sensors and instrumentation that allow him to measure various aspects of his running. He’s able to measure power output in watts. His optimum power output to achieve his best result was in a fairly narrow range between 380 and 400 watts. He figured that out after 10 days of training on the marathon course prior to the Olympics, that if he maintained that power output of 380 to 400 watts, that would give him an optimum result.
What I love about that real-life story is that he’s measuring something that can be habitual, something that he can control, and that’s power output. Naturally, he’ll go slower on the uphills and faster on the downhills. But if he maintains that output power, his pace will be pretty much optimum.
But there’s many different types of habits. We talked about making space for the most important relationships in our lives. This too has a habit component. We talked about setting experiential goals for creating memorable events with family members. Maybe you could plan and include a memorable experience every week or every month, or whatever frequency makes sense for you and your family. It could be a daily practice to delight your spouse in some way.
Now, the event was also called and it was entitled the Build to Scale Mastermind. We talked extensively about mergers and acquisitions and the process behind conducting an acquisition. ~~It was kind of~~ πThat kind of inorganic growth can be an extremely powerful way to grow your business.
Now, we happened to be at a point in history where there’s hundreds of thousands of baby boomers where their businesses are in their sunset with no succession plan. About 75% of them have no succession plan, and one in 13 will actually sell. The rest are probably going to shut down. This is the opportunity of a lifetime if you’re looking to get into business, or if you’re looking to scale your business.
Now, some of these businesses are too small to transition. They fall into the category of business that has a handful of employees, but no leadership waiting in the wings to take over. There’s real estate investors. We often acquire properties that have active businesses associated with them, but acquiring a business is very different than acquiring real estate. When you acquire a business, conventional approaches to consider buying the company in its entirety. A safer option is to buy the assets of the business. So we went deep into the eight contracts that form the basis of a well-structured merger or acquisition.
Now, in past years, we’ve had a lot of classroom time and an extremely full agenda with planned dinners and planned group activities. This year, we reduced the amount of classroom time to create more space for networking. What sets events like this apart is not just the classroom time, and of course we received great feedback on the formal sessions. It’s the quality of people attending and spending time together, building relationships and learning from one another that makes for a growth experience for everyone involved.
Now, we put on these events for our guests, our partners and investors, but we also do it for our own internal team. These are small events. They’re not the huge 500, 1,000-person conferences that you might be used to attending. These are small, exclusive events specifically designed to build relationships, and you really can only do that with a small number of people.
If you want to consider joining us next year, keep an eye out for event announcements on the podcast. As you think about that, have an awesome rest of your day, go make some great things happen, and we’ll talk to you again tomorrow.
Stay connected and discover more about my work in real estate and by visiting and following me on various platforms:
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Y Street Capital:
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