Episode 13: How Running a Real Estate Business is Like Running a Marathon


Episode 13: How Running a Real Estate Business is Like Running a Marathon


Marathon Not a Sprint

Working a real estate business is like running a marathon. John likes buying rental real estate that needs fixing up, creating value in that property, refinancing with a bank loan, and renting that property out for the long-term. The tenant ends up paying down the money you borrowed AND you make cashflow on a monthly basis.

While John was the New York Marathon (26.2 mile race), he realized the similarities to running a marathon.

[02:00] At some point, there is a decision (commitment) to embark on the journey. The idea has to come from somewhere. When you see others doing it, but you don't have the interest level yet, you might think those people are crazy. Until you have become part of the group of implementers, it's hard to know exactly why you should do it.

[05:30] After you make the decision, it's time to make a plan and train. You choose a schedule and decide how much to ramp up over time. The key for marathon training is to prepare your body AND mind for your long distance. That training prepares you to overcome obstacles.

[09:00] “That feeling of excitement as you get started is very similar to how it is when you get started in your real estate investing business. You might buy the first property and have a home run. […] Or you may encounter some resistance, push through it, and get very excited. There is a very similar experience between the two.

[09:45] Resistance! There will be a point where your body starts to say, “this is a challenge” and your mind starts to doubt why you are out there, or whether or not you can complete the task. “The most important thing I needed to do was find a way to make it work. When you encounter a problem, you don't say that the problem is too big for me to solve. You think about all of the ways you can solve the problem.”

[11:45] During a marathon, you may need to find ways to surpass the challenges you are present with. There are solutions for these things.

[13:00] “If we are going to survive in these businesses, we've got to ENCOUNTER the challenges and push through. We may have contractors that don't do what they're supposed to. We may run out of money. We may feel like we don't have the time or energy. Our families [and friends] may not understand what it is we're trying to do. We have to find a way to push through these issues.

[14:00] There is a point you can look back at the challenges you overcame, and be proud of your success. You can see how much you have done, and are able to see how much your mind has changed and how your view of the world has changed. This is the law of the first win. When you win once, you want to win again. After you execute your plan, but you're not necessarily finished, there is a time to look back and say, “Look how far I've come.” You have surpassed your initial expectations.

[17:20] Become a sphere of influence in others' network. Others seeking what you have will see you as a resource to learn, grow, and develop their own plan. It is our responsibility as investors to network with all these individuals and to reach back and help others accomplish their goals. It's the cycle of marathoners who help other folks training for their marathon to reach back. Replicate the same thing in our real estate classes, or perhaps teach classes, or mentor other investors.

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