When you get to be pretty smart and rather accomplished, you find yourself in somewhat of a danger zone. The danger is represented by the fact that your prior successes tend to back you into a tunnel-vision perspective on life and business. Because you know what has worked for you in the past, you can fall into believing that the same will work in the future, that your way is the only way, etc.
Well, it doesn’t take a genius to note that everything in life changes over time, that life and everything in it is cyclical. And if so, your perspective and frame of mind necessarily and proactively must evolve.
One way to help facilitate this is by surrounding yourself with smart people of differing perspectives, and one vehicle to accomplish this can be a mastermind group. I am fortunate to have many, many smart people on speed dial, and a couple years ago, I had the pleasure of spending time with two of the smartest guys I know.
The setting was Hawaii, Honolua Bay on the island of Kawaii. Do you recognize these two gentlemen?
In case there is any confusion, the one with the out of control beard is Brandon Turner, and the other is our good friend Darren Sager.
What Did We Discuss?
We talked about lots of things. It was a very productive getaway, indeed. One topic, in particular, comes to mind, and it is this: Grant Cardone loves to offer advice that folks shouldn’t mess with houses and small multifamily and should go to the big stuff right away.
Brandon, Darren, and I talked about this in detail, and in my opinion, we have to accept that Grant’s advice is both very wrong and very right at once. In this article, we will explore both sides of the argument.
Why I Think I Can Help You
Brandon, Darren, and I talked a lot on the subject, but of the three of us I may be most equipped to speak to this. I started with single-family residences (SFR), and it only took four of them for me to figure out that structurally SFR as an asset class is a fool’s game. The numbers are not there, and the management infrastructure is a nightmare.
I switched over to small multifamily in 2006 and stayed there for about eight years, working with everything from a duplex to 10 units. I remember looking at some 24-40 units, but never pulled the trigger on those; something didn’t feel right. I wasn’t sure what felt wrong about these at the time. I know now.
And nowadays I syndicate apartment communities.
So, this conversation is right up my alley because I’ve stood on every step of this ladder and have internalized the benefits and drawbacks of each. I am hoping you find value in this.
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