I started off investing in property, became financially free and then really got into business so when people come to me and say they want to become financially free, I understand that it’s hard to decide – invest in property or start a business? Ultimately, I think it boils down to your personality and what you are looking for from your next venture.
Why I love property
Property is stable, it’s easy, it’s a very fixed market. With property you can find people to do the work for you, such as managing agents and maintenance people. It’s a known entity and you can go out there and you can make money from day one. I can teach people how to make 100% a year return on investment (ROI) from a standing start even when they’ve had no experience in business or real estate. 100% a year, that’s great.
Why I love business
In business you could make 10000% a year ROI. The kind of scalability you get from a business is not there in real estate. When you buy a piece of property you know it’s worth $100,000 it’s not going to be worth $10,000,000 overnight but in business you can have that kind of transformation. You can take a business from nothing and make it into a multi-million-dollar business, that never happens in property. If you’re thinking like, ‘I want to go and create this thing and build this amazing company, and I’ve got this vision.’ Great, follow your instincts, go and start that business.
Can I do both?
Of course! You can start from either path real estate or business and then end up crossing over afterwards. You can be a businessperson, make tons of money in business and invest it in real estate or you could do the other way around. You can start in property make lots of money and then once you’re financially free get into business.
“There is no right and wrong way.”
In my experience it boils down to what kind of person you are and how well do you know yourself because the real estate stuff, I can tell you, I’m an outgoing, driven, aggressive kind of guy, I got bored with real estate after my eighth deal. I didn’t stop investing in property, but it stopped being a challenge.
Business or Property?
Business however can be consistently a challenge. There are competitors, there’s all kinds of markets changing, you’re expanding, someone tries to sue you, your employee leaves, someone steals something. It’s crazy amount of stuff that happens in a business that will rarely happen in real estate.
Real estate is very defined and proper and it’s very stable. So, if you’re the kind of person who wants that stability, if you cherish that more, then go for real estate and later, if you feel like it, get into business. But if you’re the kind of person who wants to have a little bit of chaos, a little bit of a challenge and wants to make things happen then go for business.
One thing at a time
That said, I would not recommend trying to do both at the same time. People tell me, ‘Oh I’m going to do this part-time and do that part-time and do this part-time and I’ve got a job.’ Honestly, that’s a nightmare. If you have a job, do one more thing instead of lots of things. One more thing – that’s it, don’t do anything else. If you don’t have a job, the advice is the same – do one thing because one of the important factors for success is focus, that’s true for business and real estate.
I remember in one of my businesses, I had 11 product lines. I got a mentor on board and he chopped my product lines down to three and then eventually we chopped it down to one product and we were super successful with that one product whereas when I was trying to manage 11, it was a mess. So, focus is critical to success.
Whatever it is you want to do first, whether it’s real estate or property, do that. I’m not saying you can’t be aggressive and creative in real estate, you can, but there’s a different kind of creativity to the kind that you use when you’re working on a business idea.
So, what about business? Oh boy, you got to be in the trenches, you got to be fighting 24/7 and what about real estate? It’s a little bit more relaxed.
When you’re thinking about your next venture, think about whether you want some time in the slow lane or whether you want to go full throttle, and that will give you your answer as to whether real estate investing and starting a business is the right path for you.