Few are truly capable of understanding how valuable of an asset time is — or can be. To be clear, there is nothing I consider to be more precious than time, and I hope you can say the same.
It is the one thing we can never get back, and therefore, it’s the one asset we can never presume to waste. More so than any other asset in existence, money or property included, time is invaluable.
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Remember that the next time you are late or even unintentionally proceed to waste someone’s time. To that end, how can we better manage, organize, invest and allocate our time? Is it possible to use time as a tangible asset and improve the position of your current real estate business?
Let’s take a look at a few practical time applications that I have found to be incredibly helpful in growing my real estate business.
Motivation
Real estate investors are more than aware of the concept of time or at least as it relates to the most fundamental aspects of their business. There is perhaps no better motivation to complete a deal; the faster you can flip a home, the lower the costs you will incur, and the higher your profit is likely to be.
I know some investors who can’t even work without having some sort of time limitations applied to their respective projects. Some people just work better when they are under pressure.
Time, or lack thereof, will force you to work toward any goals you might have set for yourself in a more efficient manner.
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Of course, motivation, or at least as it relates to the concept of time, can take many forms. Some view time itself as the most desirable goal to strive toward. I personally got involved in real estate to give myself more time.
I am referring, of course, to more personal time for myself. It’s not necessarily in everyone’s best interest to have more time to dedicate to work. And the sooner you realize that, the closer you will be to realizing true wealth.
But can you really work less and make more money? With the right systems in place, it’s entirely possible. The key is passive income. I’ll explain below.
Income is the result of wealth, not work
Living within the parameters of a capitalist society has instilled a false sense of financial literacy in the public. If capitalism has taught us one thing, it’s that we must trade time for money — the harder we work, the more money we will get.
Unfortunately, as I am sure you are aware, that’s not always the case. It’s a sad truth but a reality nonetheless. Hard work doesn’t always result in the monetary gains one would come to expect.
In reality, there is only a small population of individuals who don’t trade their time for money. Truly affluent people, for the most part, have already found a way for their assets to work on their behalf.
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In other words, their money is passively working to increase returns while they proceed to remove themselves from the equation. It’s fair to say that the truly wealthy generate passive income from the wealth they have previously managed to accumulate, not from working harder. And there is no reason the general public couldn’t hope to do the same.
It just so happens that real estate is one of the primary vehicles entrepreneurs use to emulate the extremely wealthy. This profession is entirely capable of generating passive income, all the while void of limitations.
In short, real estate is one of the few occupations that award entrepreneurs the freedom to continually accumulate assets and produce wealth. Of particular importance, however, is the income that can result from said wealth.
Again, your income will grow exponentially with every wise investment you make. Before you know it, you will no longer fall victim to trading time for money. Your previous investments will have already done all the heavy lifting.
Strategy is key
Before I get ahead of myself, your main priority as an investor should be to create short-term income via whichever exit strategy you see fit. However, rehabbing and wholesaling are anything but passive.
The key is to take the money you earn from these deals and invest it in long-term, passive assets that produce regardless of how much sweat equity you intend to contribute. Passive income will continue to produce whether you are present or on vacation in Tahiti.
To that end, I implore you to think differently about money and time for that matter. Trading time for money has become an antiquated solution to a problem that, in my opinion, shouldn’t exist.
It is entirely possible to have your money work for you, freeing up your most valuable asset of all: time. Real estate is a powerful vehicle with limitless possibilities, and the solution for those looking to gain a new perspective on time.
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Than Merrill is the founder and CEO of FortuneBuilders and CT Homes. Connect with Than on LinkedIn or follow him on Twitter @ThanMerrill.