Real Estate Investing Basics

Hustle: The Single Most Important Factor to Finding Real Estate Deals

Expertise: Real Estate Investing Basics, Personal Development, Business Management, Personal Finance
46 Articles Written
hustle

“Slow feet don’t eat.” —Anonymous

“If you don’t want a 9-5, be prepared to hustle 24-7.” —Anonymous

The question or complaint I hear more than any other is this: how do I find and buy good deals? Especially for new investors, this problem seems insurmountable at times.

Without discounting all of the wonderful information, tactics, and strategies I read (and that I write) here on BiggerPockets, I have news for you.

Finding good deals is 10% tactic, 90% hustle.

In other words, what you know or learn from others is only a small part of the equation. How much you are willing to bust your tail, hustle, and apply what you learn makes the biggest difference.

When I first started investing, I had nothing but my dream and my hustle. I knew I had no capital or wisdom to contribute.

But I had a secret. I knew from experience playing football at Clemson University that nothing could compete with hustle. I started for 3 years as a middle linebacker, when many more talented players sat the bench. I had good physical talent, but I had an extraordinary ability to hustle. It made all the difference.

Think of hustling as hard work with intense passion and focus. Hustling often makes me think of an anonymous quote I learned as an athlete in college:

Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion, or it will be killed. Every morning, a lion wakes up. It knows it must outrun the slowest gazelle, or it will starve to death. It doesn’t matter whether you’re a lion or gazelle. When the sun comes up, you’d better be running.

For several years as a brand new, full-time real estate entrepreneur, I truly felt like the gazelle. If I didn’t hustle from the time I woke up until the time I fell asleep, the financial lions might catch me.

I don’t want to spend my whole life as a gazelle (see my plan for financial independence), but this gazelle-like hustle is a mindset and a skill that I lean on whenever times get tough. You can, too.

5 Tips to Step Up Your Hustle & Do More Real Estate Deals

The good news about hustle is that you can control how much you do it. It is all within your head. To help you hustle more, starting today, I am going to share 5 tips that have helped me.

1. Take care of the hustler.

One of my favorite entrepreneurs and philosophers is Brian Johnson over at Entheos. Brian says that his greatest asset as an entrepreneur is his own consciousness.

This relates to hustle because you are the CHO (Chief Hustling Officer) of your little business. You will certainly build a team (building a team for a fix-flip business), but the pace of your work and your progress will always start with your mindset and your example.

Related: Real Estate Investing Hustle: An Inspirational Story

Because hustling is grinding and emotionally taxing, you have to take care of yourself first and foremost. Your consciousness, or stated another way, your daily attitude and energy, will be the foundation that sustains you.

So, it helps to deliberately create habits that will provide a foundation for your attitude and your energy. Here are are the fundamentals I use to take care of the Chief Hustling Officer in my business:

  • Good Night of Sleep: I made it a goal this year to get 7 hours of sleep per night. This has been a weakness of mine in the past, so I decided to prioritize and track it.
  • Nutrition: Our nutrition gives us the energy we need to hustle. I like to focus on the fundamentals. Drink lots of water. Eat lots of fruits and vegetables. Eat few refined foods.
  • Exercise: Studies have shown that exercise actually helps beat depression (Harvard Medical School and WebMD). It also helps you to think better, and it boosts your energy. I try to do some sort of movement, small or large, for at least 15 minutes daily.
  • Meditation: My daily morning ritual includes doing a session of focused breathing for at least 7 minutes. This breathing meditation reduces stress, calms my mind, and puts me in an optimal mood to start hustling for the day. Harvard Medical School professor Dr. Herbert Benson shows that a “relaxation response” like that from meditation reduces stress and has many other positive health benefits.
  • Inspiration: I like to regularly read and study stories, blogs, and biographies about other people hustling, facing adversity, and moving forward. This inspiration gives me the “proof” that anything is possible and that my own struggles are normal.

You probably have your own routines to take care of yourself.  My point here is to prioritize and ritualize whatever your personal fundamentals are so that you can be at your best and hustle more.

financial-freedom-habits

2. Focus on your “why.”

A TED Talk by Simon Sinek brilliantly explains the power of starting with the question “Why.” Here is a quote from part of his talk:

Very few people or companies can clearly articulate WHY they do WHAT they do. By WHY, I mean your purpose, cause or belief. WHY does your company exist? WHY do you get out of bed every morning? And WHY should anyone care?

Your personal “Why” is the inner, emotional motivator that will keep you hustling day in and day out. Your business also has a “Why,” and it is the core service and benefits that your customers need from you.

When I choose to stay focused on my “Why,” the daily energy available for my own business hustle is astounding. My “Why” drives and motivates me, and it directly translates into many significant goals and projects.

So, take the time to think about your own “Why.” It is not something you create. It is a passion already inside of you that you uncover. When you rediscover it and tap its limitless energy reserves, no amount of hustle will be too much.

3. Face your fear.

I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.” —Nelson Mandela

We are all afraid, but fear becomes a monster when you lock it in a closet and never look at it. The way to conquer fear is to face it directly.

So, what fear keeps you from hustling and moving forward in real estate investing?

Whatever comes to mind, write it down.

Are you afraid of losing money? Are you afraid of what other people will think if you fail? Are you afraid that you’re not good enough or smart enough? Are you afraid that you don’t know enough?

Now that you’ve written down your fears, write down a plan of action to conquer that fear.

If you’re afraid of losing money, for example, write down 3 actions you will take to make sure you don’t lose money. Here are three that came to mind for me.

  1. I will always run my deals by my mentor and business partner before moving forward.
  2. I will memorize the good deal formula for buying flips or for buying rentals.
  3. I will spend 3 hours this week studying sold and rental comps so that I am more confident of the numbers in my market.

If you’re like me, when you translate that fear into written, specific actions, the fear doesn’t disappear, but it no longer controls you. Now that you are back in control, you can move forward and let your hustle take over.

4. Prioritize and focus.

An enemy of hustle is distraction and overcommitment; therefore, it pays to clearly set priorities so that you can focus your enthusiasm and energy.

As I elaborated on in my epic article, “How to Quit Your Job & Invest in Real Estate Full Time: The Final Steps,” I like to have a planning session each Sunday to prioritize my week before I start hustling.

I make a list of the 10 top results I hope to achieve that week (“The List of 10”). I have MANY more results that I could put on there, but this list forces me to narrow my focus by asking the question:

If I achieved only one result this entire week, which would I want it to be?

I answer that question 10 times, and the answers become my priority list for the week. Each morning and throughout each day, I use the “List of 10” as a reference point to keep me focused and on task.

I don’t always accomplish all 10 results, but if I truly hustle and give 100% effort, I’ll often check every result off the list by the end of the week. What a satisfying visual at the end of the week to see all of the items completed!

In the big picture, if I can combine prioritizing and hustle by stringing 2 weeks, then 2 months, and then 2 years of consistently hustling and checking items off my list, the results I want will take care of themselves. It is almost inevitable that I’ll do lots deals, make lots of profits, build lots of wealth, and eventually become financially free!

habits-hold-back-success

5. If all else fails, just do these everyday.

As Nike says, “Just Do It.” If you want to forget the rest and start taking action, here are some recommendations for actions you could take today (and everyday) to buy more deals:

  • Call 10 Craigslist ads in the “For Rent” and “For Sale” section and ask yes/no questions. These questions could include:
    • “Are you interested in selling instead of renting?”
    • “Would you be willing to sell for what you owe?” (after some discussion)
    • “If you could get cash and a quick closing, would you sell for less than your asking price? What’s your bottom line?”
  • Send 100 letters to a list of out-of-town owners.
  • Walk your target neighborhood, knock on doors, talk to neighbors, hand out cards, and ask people if they know of someone trying to sell a house.
  • Hand out 15 “We Buy Houses” business cards.
  • Make an offer on an MLS listing that is an REO or listed below full value.

The point here is to make a list, get specific, and then get busy! Hustle is all about focused, passionate action. These are all high priority actions that could lead to deals if you just do enough of them.

Related: Why You’re Building Wealth the SLOW Way (and 3 Ways to Fix That!)

Early in my career, I had very little skill or knowledge, but I would take lists like these and just fill my days with action. I would make a game to see how fast I could check everything off my list.

Can you make a game of your hustle? Can you challenge a friend or colleague and see who can get their list done first?

If it’s fun and if it taps into your “Why” (see tip #2), then you’re more likely to stick to it.

The Lost Art of Hustle

I often wonder why hustle is a lost art. Why don’t more people realize the missing link between hustle and success? Is it because the concept is too simple? Are we conditioned for quick results, like a cheeseburger in the drive-thru at McDonalds?

Maybe it is because hustle proves that success is painful and requires hard work. Mediocre life is too comfortable. It is much easier to surf the internet, complain, and make excuses.

But all of the great achievers, from Michael Jordan to Warren Buffett to Nelson Mandela, have followed the strenuous path of hustle.

If people knew how hard I had to work to gain my mastery, it would not seem so wonderful at all.” —Michelangelo

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In the end, if you are willing to grow, to face discomfort, and to hustle, you really won’t have a lot of competition. While everyone else is looking for shortcuts or quick fixes, you will be sprinting like a gazelle.

Maybe hustle will always be a lost art. Maybe that is the way it should be.

So, are you ready to start hustling? I will see you out there running from those lions.

[Editor’s Note: We are republishing this article to help out our newer readers.]

What do you think? Do you have any other tips for hustling? What top activities do you hustle on each week to ensure you do more deals?

Let’s help each other out with tricks and tips in the comments below!

Chad Carson is an entrepreneur, writer, and teacher who used real estate investing to reach financial independence before the age of 37. He wrote an Amazon bestselling book Retire Early With Real Estate, and his story has been a featured on Forbes, Yahoo Finance, Business Insider, GetRichSlowly.com, the BiggerPockets Podcast, How to Money, ChooseFI, and more. Chad and his business partner currently focus on long-term rental properties and private lending in and around the college town of Clemson, South Carolina. Their portfolio of 90+ units includes houses, small multi-unit apartments, and mobile homes. In 2003, Chad and his business partner began real estate investing from scratch. They started by wholesaling and fixing-and-flipping properties. They also learned to rely on non-conventional financing sources like private lending, seller financing, and lease options, which remains their expertise today. After surviving the 2007 to 2009 real estate downturn (with scars to prove it!), they transitioned to more of a focus on student rentals. You can find more of Chad's writing (as well as podcast episodes) at CoachCarson.com.

    John Thedford
    Replied over 6 years ago
    Thanks for a great article.
    Mark Ferguson
    Replied over 6 years ago
    Thanks for the comment John! I appreciate it.
    Tom Phelan
    Replied over 6 years ago
    I once entertained buying a property that had a 4% return, a trailer park where the police were frequent visitors to settle domestic disputes, and you had to collect the rent with a baseball bat. Although the Cash On Cash was mouth watering, I passed
    Dennis
    Replied over 6 years ago
    I have always entertained the idea of buying such a property installing cameras and cashing in on the reality television craze. The show would be a combination of COPS, World’s Worst Tenants, and MTV’s real world.
    Mark Ferguson
    Replied over 6 years ago
    Haha, now that is a good idea.
    Horizon
    Replied over 6 years ago
    Great article Mark!!
    Mark Ferguson
    Replied over 6 years ago
    Thank you, I’m glad you enjoyed it!
    Jan Whitney
    Replied over 6 years ago
    I like this perspective and explanation. The 2% rule is good as a very general guideline but there is a lot more that needs to be taken into consideration when evaluating a property. Thanks Mark.
    Katelynn
    Replied over 2 years ago
    LOL sounds great.
    Mark Ferguson
    Replied over 6 years ago
    Jan, thank you for the comment. I think the 2%, or any % rule is best used by seasoned investors who know their, market, costs and other factors already.
    Jason
    Replied over 6 years ago
    I tend to cringe when I hear rules of thumb. They leave a lot to be desired. I use my past trends to help determine my future costs. My maintenance runs at 12%, property management with lease up fees and maintenance costs is 12%. The only fudge factor I throw in is 8% in vacancy assuming the unit will be vacant 1 month per year. To be honest I need to adjust that number as well. The problem with even those numbers is it doesn’t hold the same for all the situations you described above. Using ROI can be very helpful. Mike Zuber had a great spreadsheet he uses. Its in the BP archives under last years BP event. Jason
    Mark Ferguson
    Replied over 6 years ago
    Thank you Jason, I’m going to look for that spreadsheet.
    Randy Smith
    Replied over 6 years ago
    For what it is worth, I have used a 1% rule, I’m that the home should rent for approximately 1% of the cost of the home our the appraised value, whichever is higher. I have found this to be in the “real” ball park. Then, I was $50.00 increments to either increase or decrease the monthly rent. Say a home is a well desired location, add 50, or not a great location deduct $50.00. Even this may not be the best method, but it had worked for me. The 2% rule is way off what a home will actually rent for in my area. Maybe the 1% rule will work for you, with minor adjustments based based on small plus or minus
    Mark Ferguson
    Replied over 6 years ago
    Thank you for the comment Randy, All my rentals are above 1%, right around 1.2%. There are so many factors to consider, it is hard for me to base a purchase on rent/value. I especially want to know what my cash on cash return is.
    Steve Johnson
    Replied over 6 years ago
    This is a very helpful article for us newer investors. I’ve read up enough now to have finally caught on to why rules of thumb aren’t the most precious thing out there. I was really stuck on Cap rate for awhile and the best way I’ve had it described was to use the rules as a quick snapshot of how the property may perform. Its not the most accurate thing so don’t rely on it only, but instead do a quick analysis with such a formula and if it looks good run your real numbers. And Jason, where can I find exactly that ROI spreasheet you mention Mike Zuber has?
    Mark Ferguson
    Replied over 6 years ago
    Steve, that sounds like a great strategy.
    stuart Stevens
    Replied over 6 years ago
    I think that when you use the 2% rule that the estimated initial repair cost is added to the purchase cost.
    Mark Ferguson
    Replied over 6 years ago
    I have heard this a couple times in the comments and I am probably mistaken on that part of the rule. It does make more sense that the repairs are added onto the purchase price. However, the rule still would not account for how much cash, some one would have into the home. My cash on cash return is very important to me. Not only does cash on cash return go down, the more money you put in for repairs, but it decreases your ability to buy more properties, because you use dup all your cash.
    john milliken
    Replied over 6 years ago
    the 2% rule is the lamest of all the “rules” floating around. the break down you just did mark is a perfect example of why this “rule” is far from being a standard determining rent. your 2 for 2 on articles Mark.thanks for a another great read, and can’t wait for the next article.
    Mark Ferguson
    Replied over 6 years ago
    Thank you John!
    Dawn A.
    Replied over 6 years ago
    “The 2% rule does not consider any initial repairs into the equation” I’ve always assumed that the 2% rule meant the monthly rent is 2% or more of the purchase+rehab (to get “rent ready”) cost. That’s what I’ve been achieving (sometimes over 3%). But I completely agree that this varies per market and not everyone can achieve this. It also helps to buy properties under $50,000 (and as cheap as possible).
    Mark Ferguson
    Replied over 6 years ago
    Hi Dawn, I think you are right. The only place I see the rule coming close in my market is in the lower end, but if I were to add repairs into the equation, those no longer meet the guidelines either.
    Pete Snow
    Replied over 6 years ago
    The 2% rule works as long as you include all your cost to purchase the house. In Deal 2 the rent would need to be 2% of $90,000.00 or $1,800.00 per month. If $1,200.00 is amount of rent you can collect I would not buy the property.
    Mark Ferguson
    Replied over 6 years ago
    Thanks Pete, Are you seeing deals that meet the 2% rule in your area? And if so, what price range are they in?
    Joe Locklear
    Replied over 6 years ago
    I agree with the author Mark. Any valuation formula that is based on only one variable is fatally flawed. Value is almost always subject to the needs of the prospective purchaser. I recently purchased a property in a “borderline” neighborhood for 22K that rents for 725 monthly. I also purchased 6.5 marsh front, high and dry acres overlooking a cove for 38K. There is no income on the acreage, but I would not trade it for 5 of the 22K/725mo houses. Why? Because of my situation and because the marsh front property is on the property tax roll at 215K. The rental property is assessed for around 30K. Value is always subjective. Forget quick formulas, thay are false crutches that prevent you from learning to truly analyze every opportunuity. If you are evaluating rental property, combine ALL variables to result in a spendable net annual income. Divided that by the cash investment and you will get a net return %. Even with the return rate, you need to consider the actual cash flow in monthly dollars, location of the property, developmment trends in the area, how you will ultimately dispose of the property (I.e 2 bedrooms may cash flow well, but will be more difficult to sell later). The are MANY variables, the most important being your goals. You need to establish a business plan then learn to determine if a prospective purchase fits within YOUR plan. If it does, buy it. If it does not, pass. There is no formula to do this for you.
    Mark Ferguson
    Replied over 6 years ago
    Great comment! I completely agree and I think many investors who are just beginning want the easy answer, they don’t want to go through all that hassle. Once you do in-depth analysis a few times it gets easier and easier and you start to see what works and what does not very quickly.
    ken lavoie
    Replied over 6 years ago
    Most of the posts I’ve seen re 2% rule do factor up front repairs in (i.e. ARC is used as the price). Most of the posts I’ve seen promote the 2% rule more as an “acid test” vs. a starting point. I have houses that are a little over 1% and a couple MF that are near 4% but I always, even from the beginning, used a spreadsheet (even as a complete newbie). I always used the 2% / 50% rules as “overlays” to quickly determine how my line by line analysis stacked up. My assumption was “if my numbers are correct, the bottom lines should land in the 2% neighborhood. If not, I need to double check to make sure I didn’t forget a zero or decimal point somewhere!
    Greg
    Replied over 6 years ago
    “In many cases renters of single family homes will pay all the utilities, while the landlord may pay most of the utilities on multi family properties.” Hence my preference to buy duplexes with separate meters on each side. I prefer tenants to manage their own utilities. I guess I just don’t get the 2% rule. I haven’t seen property in my local area that supports. My father-in-law who has owned rentals in the same area for 20 years says he has always felt good if he can make at least 1%/month, and he buys units that need maintenance relatively frequently. The units I bought in TX are much better quality with hardly any deferred maintenance, probably because they’re new. They have command top notch rent, probably in the 1% range. Hence my belief in something more like a “0%” rule, where the maintenance costs should be relatively close to nothing. The newer units aren’t going to break down and cost me thousands in new HVAC units, and probably be ideal for even my mother to live in. I fear that to find a property in the 2% rule range, I would have to find something heavily discounted and pour lots of capital into it to get out the rent I want to make it work. Stuff is heavily discounted for a reason, and I just don’t have time to manage that.
    Mark Ferguson
    Replied over 6 years ago
    I completely agree Greg
    Joe Locklear
    Replied over 6 years ago
    Excellent points Greg. You are a perfect example that value is very subjective and YOUR situation is the most important factor in evaluating rental property.
    lisa
    Replied over 6 years ago
    Thanks! I just read a BP article on why the 2% rule was so great for beginners, and saw that he is assuming 2k /month on a 100k home….uh. yeah right. if you are getting 2k in rent, you’re NOT paying 100k for that house! Crazy talk, and too simplistic….too simple…no thought.
    Mark Ferguson
    Replied over 6 years ago
    Lisa, I never see homes in my area with that percentage either.
    Chudi
    Replied over 6 years ago
    Hey mark great article? Do you happen to have a spread sheet on how you calculate 10 year cash flow projections? I would be very interested to see how you do that!
    Mark Ferguson
    Replied over 6 years ago
    I forgot to tell you how I calculated it. I wrote it all out by hand. Each year I wrote out how many I want to buy, how much cash flow I would have, how much of my mortgages would be paid off and my total income.
    Joe Locklear
    Replied over 6 years ago
    Chudi & Mark, I have written a very good 10 year projection excel spreadsheet, If you can shoot me a PM, I will email it to you. I am new to BP, but as soon as I have time I will upgrade to a Pro membership so I can post on the docs page. Joe Locklear, Pres ProREIA [email protected]
    Mark Ferguson
    Replied over 6 years ago
    Chudi, I wish I did! I use a snowball method on my rentals. I take all the cash flow from my rentals and pay off one mortgage at a time. I have yet to find a spreadsheet that can do that with multiple properties and I don’t know how to make one. I would love a spreadsheet that I could plug in my rental purchases each year, with cash flows and it would calculate mortgage pay offs and yearly income as well as equity.
    Greg
    Replied over 6 years ago
    Great minds think alike! That’s my approach to paying off rental mortgages. Essentially, you can pay each loan equally, or pour the extra into one loan. All things being equal, it has the same net effect dollar wise. What it does for you is moves one proper closer to being free and clear, which opens options. You can opt to sell that unit sooner and harvest more gains, instead of having all those gains spread across your properties.
    Frank
    Replied over 6 years ago
    I would suggest you using an amortization calculator: Amortization Schedule http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx or Amortization Calculator http://www.amortization-calc.com It won’t factor repairs or taxes and insurance needed into it though. Hope that helps
    Mark Ferguson
    Replied over 6 years ago
    I use Bank Rates mortgage calculator all the time, it is a great tool. What I would love if anyone ever see’s it, is a program that can calculate the snowball method of paying off one house at a time from cash flow derived from multiple houses.
    Greg
    Replied over 6 years ago
    I can see building such a spreadsheet, but it would be pretty complex. You need mortgage formulas applied in multiple cells in order to figure out net effect of pay offs. Imagine taking a balance, applying the interest, deducting the payoff, and then determining the left over cash and have it plugged into another worksheet. Then do the same math on that one. It could take days to build it, but if the net effect is to punch in monthly rents as they arrive and mortgage payments as they go out, and have all your totals automatically calculated, showing net worth growth with no effort or manual effort, it could be worth it! I admit I don’t have that, but settle for a spreadsheet where I add a row every month. Each column represent a different bank account, a different liability, a different mortgage, etc. Each month, after all rents are in and mortgage payments are out, I can see liabilities falling, personal cash rising, and real estimated values growing. Add it all up and I track my net worth growth on a monthly basis. To top it off, I compare current net worth against when I started, then derive annualized growth rate just to see how well my portfolio is growing in total value minus total debts.
    Frank
    Replied over 6 years ago
    In deal 1 and 2, where does the Vacancy rate derive from? Thanks
    Mark Ferguson
    Replied over 6 years ago
    Hi Frank, it comes from thin air. It is a number I made up to be constant between the two houses. The numbers in these deals are easy round numbers I made up to illustrate the basic idea.
    Michelle
    Replied over 6 years ago
    Another great article Mark! I can’t meet the 2% rule in my area either, closer to 1%, but I’m positive cash flow using the 50% rule so that makes me happy. Thanks for spelling it out in the two examples.
    Mark Turney
    Replied over 6 years ago
    Great article Mark – good info for a newbie – thank you!
    Michael
    Replied over 6 years ago
    Good article Mark- I agree new investors need learn all the numbers and calculations and research to be successful in this business. If anything the 2% rule is just a quick formula that should take you to the next level of the real research and digging in. The devil is in the details. NO SHORTCUTS !
    Chris Haas
    Replied over 6 years ago
    I really enjoyed all of your articles. I find myself in a similar position in that I make an above average salary, and am looking to buy and rent long term single family homes. That said I haven’t done my first deal yet. It seems to me depreciation could be a large factor in determining profit. Curious how much you take this into account given your other income could potentially be offset.
    Mark Ferguson
    Replied over 6 years ago
    Hi Chris, Tom, gave a lot of great info below on deprecitaion. I personally don’t factor depreciation into my returns, because it can get very complicated with varying tax rates how much it actually saves. I think of it as a bonus. I know how much I am making cash on cash with each property and then I consider appreciation, tax benefits and equity pay down a bonus. (a rather large bonus when they are all factored together)
    Tom Phelan
    Replied over 6 years ago
    Chris, Depreciation can be a hugh factor, 27.5 years for non commercial like SFR, Condos etc. and 39 years for commercial. Remember depreciation is only allowed of the structures etc. not the land. A huge factor is “Recapture of Depreciation” that even many Realtors® know little about. When you sell that “investment property” you must either pay taxes on the recapture of depreciation and at a 25% tax rate or do a 1031 Exchange. I have seen many Investors and Realtors® believe that if the property being sold had no profits then why do a 1031 Exchange? Well, how about deferring taxes on the recapture of Depreciation?
    Mark Ferguson
    Replied over 6 years ago
    Good info Tom, depreciation is a tax deferment tool, not tax avoidance.
    Chris Haas
    Replied over 6 years ago
    I genuinely appreciate the responses. Seems to me the depreciation has a direct impact on cash flow. I guess cash flow, and Cash on Cash returns are different but to me both seem important. I’ve read a few different articles but this is one of the huge benefits I see to investing. Wouldn’t it be possible in many situations to cash flow positive, but with depreciation actually show a loss? That’s attractive to someone my age (41) with two full time incomes if I’m actually building up equity while being cash flow positive. I’m a complete newbie, although I have spent a great deal of time reading on several sites / blogs etc. Again thanks for your time, I know how valuable someone’s times is.
    Mark Ferguson
    Replied over 6 years ago
    Chris, it is a huge advantage and does effect your bottom dollar. Like I said the biggest reason I don’t actually calculate it is because it is complicated. Depreciation is one of the reasons I think rental properties are a great investment.
    Greg
    Replied over 6 years ago
    “Wouldn’t it be possible in many situations to cash flow positive, but with depreciation actually show a loss?” That’s why rental income is called “tax sheltered”. Depreciation is one of those big benefits of real estate. I wouldn’t craft a spreadsheet where depreciation killed the view of profit. That would be wrong, because you aren’t actually losing anything.
    Greg
    Replied over 6 years ago
    Thankfully, in my situation, cost segregation studies benefit me. They may not benefit you, but they support me. I am saving up a big stock of unused depreciation that may offer me an alternative to either paying a fistful of depreciation recapture or having to undergo a 1031 exchange. Unused depreciation provides a third option.
    James Tobin
    Replied about 6 years ago
    Thanks for the article…I’ll be looking for more bc I really liked how you explained it all. I’m just starting out and reading as much as I can to learn. Your article was really concise and easy to follow except I’m hung up on one part. I can’t seem to figure out how deal 2 shows $10k more in equity. Sorry if I’m missing something obvious but can’t learn if I don’t ask! Thanks again.
    mark ferguson
    Replied about 6 years ago
    Hi James, the first deal costs 100k but needs no repairs, the second deal costs 60k , but needs 30k in repairs. So the 2nd deal leaves 10k in equity over the first.
    James Tobin
    Replied about 6 years ago
    Ahhhh…figured it was something simple. Thanks for the quick reply!
    James Tobin
    Replied about 6 years ago
    Ahhhh…figured it was something simple. Thanks for the quick reply! Reply Report comment
    Jerry W. investor from Thermopolis, Wyoming
    Replied almost 5 years ago
    Thanks for the article Mark. I just use the 2% rule as an over achievement idea. I have not come any closer than about 1.7 in my area. I have exceeded that on some experimental out of state properties but that is a different matter. So many factors really make the final decision for me such as value if I resale, cost of repairs, age, obsolesence, location, ability to increase value, and even insurance costs. There is also the unfortunate problem of opportunity knocking when the cookie jar is empty. When I actually have some $ it doesn’t take long for me to find another project.
    Mitch Coluzzi investor from Des Moines, Iowa
    Replied almost 5 years ago
    Well written article Chad! 100% agree with the advice. You’re spot on, so many people see the end result without understanding the time, passion, and sacrifice that goes into true hustle. “Live today like no one else will, so you can live tomorrow like no one else can.”
    Roderick Moorehead from Chicago, Illinois
    Replied almost 2 years ago
    I have to say ” Thank you, Chad.” I have been given inspiration from your words (hustle boost). Thanks again and keep writing.
    Chad Carson investor from Clemson, SC
    Replied almost 5 years ago
    Thanks Mitch! I love your quote about living like no one else. I’ve heard that achievers also spend a lot of time with a future orientation (versus complaining about the present or the past). So planting seeds of hustle and sacrifice today will bear fruit when you “live like no one else can” in the future. I appreciate you sharing.
    Gloria Dulan-Wilson from Philadelphia, Pennsylvania
    Replied almost 5 years ago
    WOW! Thanks Chad Carson! You’ve given me a new concept for hustle – but this time it has a plan – I’m making my top ten list today – not waiting foe Sunday.
    Chad Carson investor from Clemson, SC
    Replied almost 5 years ago
    Awesome, Gloria! What’s your top 10 list for this week? Here’s mine: 1. Write this blog post (done!) 2. Choose and order floors for a big rehab we’re doing 3. Prepare and email an agenda for a meeting I’m leading 4. Create a final punch list for a property we’re about to list for sale. 5. Meet seller and get a new deal under contract that I got a verbal “yes” on. 6. Send photos of a rehab project to a landscape architect friend for advice on landscaping 7. Order new business cards (I’m out!) 8. Begin my 2014 bookkeeping year-end checklist (on Bookkeeping Day – Thursday) 9. Order 2014 Christmas gifts for private lenders and other business relationships 10. Create rough draft of a new lease I’m behind on some of these, but I think I’ll at least get 7 out of 10. Maybe more:) Anyone else want to share their list?
    Alex T. investor from Newton, Massachusetts
    Replied almost 5 years ago
    Thanks, very inspiring article. I think part of what makes hustling hard is that fact that you don’t see the reward right away. We’ve been conditioned to expect immediate results, and when it comes to working for yourself, that’s often not the case. It’s the ambiguity that makes this hard, knowing that you could be doing all the right things, but see no apparent improvement, at least initially.
    Chad Carson investor from Clemson, SC
    Replied almost 5 years ago
    Great point. It takes a lot of trust in yourself and in the process because the tangible rewards are uncertain. I have tried to brainwash myself a bit so that the reward is the process itself. The hustle is the fun part, so then I do get an immediate award:) I know, sort of nuts.
    Bryan Loveless investor from Dallas, Texas
    Replied almost 5 years ago
    Great article. Thanks for posting
    Larry Russell
    Replied almost 5 years ago
    Another excellent blog post that’s very inspirational and packed with actionable steps for the newbie and the seasoned investor. I love the quote, “Finding good deals is 10% tactic, 90% hustle.” I consider Real Estate investing my primary “hustle” to enable me to position myself to quit my full-time job if and when I choose. I’m steady working to eliminate all distractions and put a system in place to grow my business at an accelerated pace. (1) I’m working to increase my on-line presence, (2) working to establish a solid process and procedure for analyzing deals, and (3) developing a system to submit multiple offers and close on those that fit my criteria.
    David Chwaszczewski from Tega Cay, South Carolina
    Replied almost 5 years ago
    Great Job Chad! Your top 10 list is PRICELESS advice. There are so many times in the beginning of the week I think i am hustling, then at the end of week I didn’t get much done because i didn’t have much of a plan or list. #1 on my new list this week is add a top 10 list to my weekly calendar so i can track my hustle! Thanks Coach Carson!
    Frankie Woods investor from Albuquerque, NM
    Replied almost 5 years ago
    Awesome article! What a great read! I need to start doing my 10 activities ASAP!
    James Syed real_estate_broker from Mount Olive, IL
    Replied almost 5 years ago
    Great article. Has pumped me. Thank you fro sharing.
    Mike C.
    Replied almost 5 years ago
    Thanks for the very inspiring article Chad. Motivation is so important and your hustle comes through in your writing. I especially like the part about taking care of the hustler. I sometimes let the excuse of making sure I get enough sleep or take the time to exercise get in the way of my part time work on real estate investing but it’s important to remember if I lay out my time and schedule properly it’s possible to get it all done. Checklists and blocking off time for specific tasks are valuable tools. Thanks for reminding me of that and getting me motivated to hustle!
    Pavel
    Replied almost 5 years ago
    I liked it a lot
    Spencer Shadrach from Memphis, Tennessee
    Replied almost 5 years ago
    This is great!!! Here is something I like to envision each week and remind myself to get a vision, write it down, take action each and every day! No vision = total failure limited action = little success a Vision – a plan – action = a dream a Vision + a plan – action = a haunted dream A Vision + a plan + action = Success Big vision + a strategic plan + persistent & consistent action = Massive Success
    Chad Carson investor from Clemson, SC
    Replied almost 5 years ago
    Love that, Spencer! Very cool. I’m going to borrow that. Thanks for sharing.
    Debbie Call
    Replied almost 5 years ago
    Hustle is the one determining factor above all. You rarely hear gurus talk about this, because they have a technique to sell. You nailed this one, Chad! Well written!
    Levon Williams from Las Vegas, Nevada
    Replied almost 5 years ago
    what great and true words, its what we believe and your right face your fears now, the words of advice given are always given at a time when i need them, and hopefully everyone else sees the need for your great words of wisdom. I THANK YOU
    Shaun Reilly from Newton, Massachusetts
    Replied almost 5 years ago
    Wow this is awesome! Love the list of things to do for yourself. I actually was very disciplined about doing a very similar list of daily habits about a year ago. Got off track with it and keep thinking I should get back to that. I think this will give me a little kick in the butt to do that again. Overall the idea of hustling (and doing it in a smart and focused way) is definitely a separating factor between those that do great and those that fall short of their dreams.
    Cerjio Cerna homeowner from garden city , ks
    Replied almost 5 years ago
    i am ready to sprint like a gazelle
    Chad Carson investor from Clemson, SC
    Replied over 4 years ago
    Go for it!!:)
    Sarah Rune from Ventura, California
    Replied almost 5 years ago
    Excellent article. Thank you for posting!
    Gary O
    Replied over 4 years ago
    Great article Mark, The number of responses and the quality of feedback is evidence that you have done a really good job on a subject that a lot of people needed input on. Evidence is the critical word here because the only homes for sale in my area that could do the desired #’s would still have the police ribbon up. Although I know that the more experienced investors have crews and can buy materials for repairs much cheaper and faster than I can. In that same vein they are generally doing multi-family and apartment complexes to pull better averages from. So for me I just want a decent neighborhood,value I can add, and a rent value that can make money within the same amounts as renters expect to pay.
    Crystal Thomas from Maumelle, Arkansas
    Replied over 4 years ago
    Hi Chad, I love your post, and I am a list writter too. I am just starting out and am educating myself everywhere I can and I will be looking for more of your insite and advice.
    RASHAAD LAWRENCE from Orlando, Florida
    Replied over 4 years ago
    I love this article. Lets get motivated!
    Travis H. investor from Social Circle, Georgia
    Replied over 4 years ago
    One teensy editing suggestion (since editing help is something I know I can contribute to the BP folks): The comment you saw piqued your interest, not peaked.
    Ken A. investor from Lake, Florida
    Replied over 4 years ago
    American Hustle. Gotta love it.
    Benjamin Cowles from Cape Coral, FL
    Replied about 4 years ago
    One of the absolute best articles on BP!
    Robbie Knecht investor from Oak Creek, Wisconsin
    Replied about 4 years ago
    Great post chad! I just got done listening to the podcast 141 that you were on and that you gave a plug to this article. I gotta say this was great! Im going to start making my top 10 list! One of them including knocking on doors until I hand out 15 business cards to people. Also, Leaving my business card everywhere I go. Great article Thank you!
    Valerie Fulford from Columbus, Ohio
    Replied almost 4 years ago
    Wow! FANTASTIC article. I started educating myself in RE one year ago and did my first campaign this past July (NO follow-up plan I might add) and now here I am in November and haven’t done my first deal yet. All along, I’ve been changing my mindset, listening to Grant Cardone (10X Rule), Anthony Robbins, reading Brendon Burchard (Motivation Manifesto), and it dawned on me just last month that I’m not used to hard work. Things have always just worked out for me to where I’m comfortable. Hustle has always had a negative (deals in the back alley) sound to me. But I’m learning, in order to be successful, every business owner has to hustle. We have to be willing to work hard, put ourselves out there, make sacrifices, stay focused and push through resistance, whether internal or external. And for a person whose always had enough to keep me comfortable, 99.9% of the resistance is internal. Time to pass out business cards, make some cold calls and knock on some doors. Thanks
    Lauren Powell investor from Mount Pleasant, South Carolina
    Replied over 2 years ago
    Fantastic, motivating article! I also graduated from Clemson — a BS in BioSci and a minor in Anthro — but I’m a newbie around here and just learning this kind of hustle. Finding happiness in the journey and day to day hustle as well as looking toward financial independence are part of my “why.” Looking forward to receiving your newsletter. GO TIGERS!
    John Murray from Portland, Oregon
    Replied almost 2 years ago
    I’m a multimillionaire entrepreneur. Most employees think that it is all about money. Entrepreneurs know it is all about time. Money is the result of time worked, not time not worked. Skill level is a direct result of perseverance and education. Education is valuable if you actually learned something valuable. Value and success is tangible and can be measured. Just look at your net worth, does it reflect your skill level and success? If it does not you are an employee and you have not followed the path of your full potential. For those of the employee category perhaps this is your place, and you are happy with your life. For those of us that are not employees, we are free and work harder than employees and love every second of our work. Happy New Year and success entrepreneurs!
    John Murray from Portland, Oregon
    Replied almost 2 years ago
    I’m a multimillionaire entrepreneur. Most employees think that it is all about money. Entrepreneurs know it is all about time. Money is the result of time worked, not time not worked. Skill level is a direct result of perseverance and education. Education is valuable if you actually learned something valuable. Value and success is tangible and can be measured. Just look at your net worth, does it reflect your skill level and success? If it does not you are an employee and you have not followed the path of your full potential. For those of the employee category perhaps this is your place, and you are happy with your life. For those of us that are not employees, we are free and work harder than employees and love every second of our work. Happy New Year and success entrepreneurs!
    Curt Smith rental_property_investor from Clarkston, GA
    Replied almost 2 years ago
    John, insightful. Youre comments are very similar to this great book for others to read: Millionaires and the Middle Class (search this on amazon). Great book, short to the point, good read.
    Chad Carson investor from Clemson, SC
    Replied almost 2 years ago
    Thanks for the comments, John. Very interesting perspective on the difference between employees and entrepreneurs and how are time translates to net worth. Happy New Year!
    Kimberly W. from Long Beach, CA
    Replied about 1 year ago
    Thank you John for an insightful view from the other side. I look forward to meeting you there… I love the hard work. It’s like going to the gym and focusing on what needs improving. It requires focus, discipline, consistency and conviction that the work will produce the desired results. It doesn’t happen the first time you lift the weight, it doesn’t happen the next week but by the 3rd week, you start seeing some results, by the end of the year you will be rewarded for your effort and consistency. Loving the process is crucial otherwise you give up and the result will never come.
    Millie H. specialist from Bozeman, MT
    Replied almost 2 years ago
    Nice article Chad! The Hustle really has everything to do with success. The universe likes to see action. Someone once told me, “this business is SIMPLE but don’t confuse that with EASY.” What he meant by that was, the single most important thing was to Do IT. Action accounts for the situations that create success.
    Cale Ferguson investor from Lexington, South Carolina
    Replied almost 2 years ago
    Awesome write up. I myself am also convinced of this idea. It is absolute garbage that anyone will achieve great success by doing very little. I believe though, the “difficulty” and “hard work” of achieving great things almost becomes automatic and becomes this “hustle” you are describing, once we are filled with enough inspiration. Good stuff.
    Isabella Jhonson
    Replied over 1 year ago
    Thanks for this great article Chad! Your articles always boost up my morale to do more. I strongly believe that “If you don’t sacrifice for what you want, what you want becomes the sacrifice”. Keep sharing such posts in future because your ideas have always helped me a lot in improving my business.
    Isabella Jhonson
    Replied over 1 year ago
    Thanks for this great article Chad! Your articles always boost up my morale to do more. I strongly believe that “If you don’t sacrifice for what you want, what you want becomes the sacrifice”. Keep sharing such posts in future because your ideas have always helped me a lot in improving my business.
    David Rohr from Miami, FL
    Replied over 1 year ago
    Thanks for sharing Chad! Hustle is the name of the game. Sometimes, we feel the need to be overtly prepared before GETTING STARTED and ACTUALLY putting time into action. It should not be that way. I’ve heard that 80 percent of success is achieved by showing up, so it’s important to TAKE ACTION. I’ll start my 10 weekly goals next week. Keep sharing this insightful posts!
    Juan Rubio from Lake Worth, FL
    Replied over 1 year ago
    Wow great article Chad! very inspiriting and motivational. I now understand the power of hustling and why I need to wake up tomorrow and hustle until I achieve great success. please don’t stop sharing insightful posts like this one!
    Alex Landaverde
    Replied 10 months ago
    great content Chad, really motivational, specially for somebody like me who is just starting out in the premature stages of real estate investing.
    Darius A Newman
    Replied 10 months ago
    DEFINITELY A GREAT READ. I FIND MYSELF NOT READING OR LISTENING TO INSPIRATIONAL STUFF ENOUGH