principles for a successful life is the focus of this guide for passive real estate investors. First, it highlights the main idea behind the topic. It also outlines the risks and questions worth reviewing. As a result, you can approach the discussion with a clearer framework.
What to know about principles for a successful life
I’m writing this article on a Friday morning on our way to Portland, which is stop seven of eight of a whirlwind investor meal tour. Dan and I have been to Denver, Las Vegas, Phoenix, San Diego, Los Angeles, San Jose, and we’re wrapping up today in Portland—then on to Seattle.
These gatherings are a treat for me, as although I have had the opportunity to chat with many of you on the phone, having a conversation in person over a good meal is far preferable.
One of the things we ask at each of these gatherings is “Why did you choose to invest with us?” And for those who have invested multiple times, “Why did you choose to invest with us again and again?” Apart from the ego boost of hearing why you are happy with our service and how we do business, it’s truly informative for us. We want to know what we’re doing right, what resonates with you, and how we can build on that in the future.
The most consistent piece of positive feedback we receive from you is how much you value our communication. How consistently and comprehensively we’re communicating with each of you; about your investment, the performance of the asset, current investment opportunities, and where our group is headed. Then, inevitably (and unfortunately), we hear about a far less interactive experience with another operator or sponsor, where many of you have been left wondering how the investment has been performing, when you’ll receive your distribution, and if that K1 will come in on time or if you’ll have to file an extension.
What this means for investors
What strikes me about our conversations is that rarely do you lead with the returns that we generate for you. That is, of course, discussed, and we also hear positive feedback about the monthly distributions, strong internal rate of returns & equity multiples, and the strength of our underwriting and operations. But over and over again, communication is the first and most frequent thing mentioned. It always strikes me, because my first thought is, why would anyone else not communicate as we do. It’s so simple! That said, it’s understandable why they don’t because it’s not always easy.
As you might imagine, it takes a great deal of time and intention to provide the level and consistency of communication we do. There are many steps in the process, especially in sending out this newsletter you’re reading right now. It would be much easier not to do it. Monthly distributions take more time, quarterly distributions would be easier. The offering memorandums and webinars we host for each new acquisition take A LOT of time. It would be far easier to send a short e-mail and skip the webinar. A couple of quotes come to mind; you may recognize them:
Questions to ask before acting
“If you are willing to do only what’s easy, life will be hard. But if you’re willing to do what’s hard, life will be easy.” – Author and motivational speaker T. Harv Eker
“Do what is meaningful, not what is expedient.” – Clinical psychologist and author Jordan Peterson
That led me to think about principles, and what it takes to be successful, in business, personal finance, relationships, and life. Those principles are generally, very simple, but not always easy to practice…
If you want to build wealth: spend less than you earn and invest the difference.
If you want to have good relationships: treat others the way you would like to be treated. If you want to build a strong business or great career: work hard and be constantly learning and improving. If you want to develop a character trait: get around people who have that trait (you’re the average of the five people you surround yourself with).
None of these are principles and practices beyond the understanding of a ten-year-old. None of them are new concepts. They’ve been around for millennia. They don’t require an advanced degree or a genius-level IQ to implement. Yet, none of them are easy to put into practice consistently. If they were, then everyone would do them all the time.
Risks and tradeoffs to review
What we’re doing here at PassiveInvesting.com is building a legacy business, one that will endure for many decades, even generations. So, we’re committed to the simple, but challenging and timeless principles, to continue to build on the foundation we’ve established, and continue to build wealth alongside you for generations to come.
For those of you who we haven’t had the chance to meet in person, we value your feedback as well. So, the same questions to you: Why have you invested with us? If you’ve invested multiple times, why is that? What are we doing well? What could we be doing better?
Lastly, I hope this is a truly joyful season for each of you. Merry Christmas, and Happy New Year!
Key takeaways for principles for a successful life
- Start with the goal and timeline that fit your wider financial plan.
- Next, review the assumptions, risks, fees, and possible outcomes.
- Finally, compare the opportunity with other ways to use your capital.
Put principles for a successful life in context
Core ideas for principles for a successful life
Every investment decision depends on the investor, the deal, and the market. Therefore, use the ideas above as a starting point for deeper due diligence. Review source documents, ask direct questions, and seek qualified advice when needed. For more guidance, explore our passive real estate investing education.
A clear review of principles for a successful life
principles for a successful life deserves a clear and practical review. These short checks can support a more informed decision.
- Start with a clear goal.
- Next, define the time horizon.
- Review each key assumption.
- Compare the likely outcomes.
- Test a less favorable case.
- Ask who controls each decision.
- Confirm the fees and incentives.
- Study the market and the deal.
- Check the supporting documents.
- Look for clear communication.
- Compare other choices.
- Keep the full plan in view.
- Write down the main risks.
- Review the source of returns.
- Check the exit assumptions.
- Understand the tax questions.
- Consider the need for liquidity.
- Match the choice to your goals.
- Ask direct follow-up questions.
- Confirm the reporting process.
- Review the operating plan.
- Check the team’s experience.
- Compare the best and worst cases.
- Keep expectations realistic.
- Use qualified advice when needed.
- Document the final decision.
- Review the decision over time.
- Watch for changing conditions.
- Stay focused on the long term.
- Finally, act with a clear reason.
A practical review of Four Principles For A Successful Life
First, define the goal for this decision. Next, write down the result you expect. Then, identify the facts that support that result. Finally, note any facts that could change your view.
For example, compare the likely return with the main risks. In addition, check the timeline and the amount of control you will have. However, do not rely on one attractive number. Instead, review the assumptions behind every estimate.
Before you act, ask who will manage the work. Also, confirm how that team will report progress. If conditions change, decide how the plan can adapt. As a result, you can judge the opportunity with more confidence.
Moreover, compare this choice with realistic alternatives. For instance, consider liquidity, taxes, fees, and timing. Likewise, review the downside as closely as the upside. Therefore, your final decision can reflect both your goals and your limits.
In short, use a clear process. First, gather the facts. Next, test the plan. Then, ask direct questions. Finally, choose only when the answers support your strategy.