5 Habits of Elite Investors
As a coach for new investors, Mike Hambright’s seen some amazing real estate investors. He runs the Investor Fuel mastermind which takes investors to the next level by challenging them to work smarter. Mike says that elite investors share 5 habits that set them apart from intermediate investors. Are you ready to scale up your investing game?
Elite Investors Are Committed
For a lot of new investors, Mike spends a lot of time trying to convince them that real estate really does work. In contrast, an elite investor is all in from the beginning. They’re willing to bet on themselves. And when something doesn’t work, they’re ready to pivot instead of quitting.
It’s pretty normal to have doubts as an entrepreneur. For myself, there’s not one day that I’ve ever said that I wanted to do something else. And yet, there are times when I feel like Mike and I want to throw in the towel. Mike suggests taking a deep breath, going to get a margarita, and waiting for that feeling to pass.
Once you’ve got a taste of entrepreneurship, you become unemployable. You don’t ever want to cash in your chips and go off to run a medical supply company. Like me, you know that real estate is where it’s at, and can offer the kinds of return you can’t find in any other industry.
Elite Investors Use Systems and Processes
Would you rather be putting out fires all day, or meeting with investors? Newer investors will find themselves doing all of the grunt work. They’re the CEO, the acquisitions manager, the bookkeeper, and everything else. They may not realize that at the end of the day, lead generation should be their number one focus.
Elite investors recognize that we’re in the marketing and operations business, and real estate is just our widget. One of my favorite books is Work the System by Sam Carpenter. Sam talks about why leadership should focus on improving the process, not undoing the work. Real estate investors who focus on leadership are the ones who will advance from intermediate to advanced.
Mike points out that you can’t grow if you’re in the weeds all of the time. At that point, you’re really self-employed, and not a business owner. A business owner who is focused on systems and processes let’s the business run behind him while he stands out front getting eyeballs pointed at the business.
Elite Investors Don’t Hustle
Guys that say they’re hustling all the time, maybe they’re built for it and they love it. I built my business for freedom, and the whole idea of entrepreneurship is really the pursuit of personal freedom. It’s not the pursuit of more hustle.
Anyone out there on social media bragging about putting out bandit signs at 2 AM, Mike has a message for you: There’s no badge for hustling. Don’t get so focused on the idea of hustling that you miss the fact that you’re doing a $6 an hour job.
Working hard is going to be necessary for getting over certain humps in your business, but don’t celebrate the constant work that hustling represents. Elite investors are focused on the effort that lands them a $10 million dollar deal. When they celebrate their win, it’s a sweet victory because it brings them closer to their goal of personal freedom.
Elite Investors Have a Core Mission
Within his mastermind Investor Fuel, Mike’s really seen that elite investors are big on giving back. Once your business gets to a certain point and the cash flow is consistent, your entrepreneurial journey can feel a little stale if you don’t have a core mission for your company.
When asking a new investor about why they’re in the real estate business, they might talk about supporting their wife and children. While those are great reasons to get up and go to work every day, a core mission is a mantra or rallying call for your entire business. To figure out your core mission, you’ll need to dig deep to find something to inspire everyone in your company.
A lot of investors have worked really hard to get where they’re at, but they know they didn’t get there without help. A key idea from the Investor Fuel mastermind is that when they get together, anyone that gets up to speak has to have a “give” and an “ask”. If they need something from the group, like help with a business problem, then they need to be able to give something to the group, like a new software or tool that has worked well for them.
In addition to adding value to every event, having investors give and take advice in a single presentation creates a culture of giving in the mastermind. Sometimes it even gets a little competitive in a good way as elite investors realize that they need to give more generously.
Elite Investors Invest In Themselves
An elite investor will be focused on investing in education for themselves. Education though is not just limited to courses or seminars. Elite investors will see the value in investing in experiences that puts them into contact with other high level entrepreneurs in a variety of industries.
Mike and his wife put together a travel group they like to call the Bucket List Boardroom. It’s just a way of sharing their love of travel with other elite entrepreneurs, and it lets them get to know other couples. Having conversations with other executives sometimes drops little nuggets of wisdom in Mike’s head that he can go back and apply in his real estate business.
Being in the real estate business just for the money won’t be enough to sustain you through thehard parts of a bumpy recession. If you want to move from intermediate to the elite status, you’ll need to find your core mission, stay committed to personal improvement, and create systems that free up your time to give back to your community.