Personal Development

5 Simple Keys to Success I’ve Learned from 10,000 Hours of Investing

Expertise: Personal Finance, Personal Development
32 Articles Written
investing-lessons

I was told the other day that after doing something for 10,000 hours, you are an expert in that field. That had me doing the math. How many hours have I put into my real estate investing career? If a normal person works 40 hours a week for 50 weeks out the year, that’s 2,000 hours. Multiply that by 5 years, and you have 10,000 hours.

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I started investing in early 2012, but the catch is that for the past 4 years, I have put in 70-80 hour weeks, so I’m not certain on where I land in total hours. I am certain that I am at least over the 10,000-hour mark.

Reflecting back on the last 10,000 hours of work, I thought to myself, what did I really learn? What actions caused the success I have accomplished over those 10,000 hours? What have those 10,000 hours shown me that I didn’t know prior?

The more I thought about it, the more I realized how simple the answer was. It’s so simple, I thought, there is no need to spend 10,000 hours to realize these things. I realized I should share it with newer investors who may be wondering how to make REI work. For that objective, there is no better site than BiggerPockets. So I decided to write a post on the 5 simple things 10,000 hours of investing have taught me.

5 Simple Keys to Success I’ve Learned from 10,000 Hours of Investing

Be responsive.

This may be the simplest and easiest action on my list, but it’s a big one. I have found all those in my network who answer their phone promptly, return emails quickly, and respond to messages reasonably always seem to have people raving about them. This can be from handymen, to attorneys, to investors — if people are never waiting on you for communication, then you are bound to stand out from the rest. If you are so busy you can’t respond to most items within 12 hours, it’s time to hire someone who can take that task off your plate.

Example: I have built many of my business relationships around this characteristic. I choose lenders who are small because when I call, I get to talk to the person who makes the decision on my loans. I have won deals by being the person who picks up the phone over the people who send it to voicemail. Our vacancies on rentals are always very low because we answer the phone or email. We don’t wait around to respond.

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Related: 10 Invaluable Lessons I Learned From My Very First Tenant Eviction

Ask for what you want/need.

Unfortunately, it took me a while to realize the power that this action carries. We are taught in school that we have to learn how to solve the problem, and asking someone else to do it for you or even just seeking out advice is considered bad or cheating. In the real world, asking can do amazing things. If you don’t know something, ask. If you don’t know something, ask for someone who does know. If you want something but don’t know how to get it, ask. If you want something but you don’t think it’s possible, ask anyway. Simply asking whatever was on my mind without fear of looking stupid has opened so many doors and informed me more than I could have been on my own.

Example: I once went to buy a $50 dryer off Craigslist. When I arrived to pick the dryer up, I asked the seller of the dryer if he knew anyone looking to sell property in the area. He said, "Yeah, me." He said he had a duplex he had renovated and was ready to retire from the day to day managing of it. We drove to look at the property, and it was a really nice duplex. I went home, ran numbers on the property, and called the owner back — and again asked what he was going to do with the sales proceeds. He mentioned things like CDs and banks. I asked if I could send him some numbers on his returns to see if he would be interested in seller financing the property. Eventually, the seller agreed to a 5% interest, 30-year amortization loan for 90% of the purchase price. My point is, I went to buy a $50 dryer from someone, and a week later they loaned me close to $100k to buy their property. All of this happened because I asked.

Example 2: Recently, I was negotiating the loan terms on a 42-unit apartment building we are purchasing. The lender, with whom I have a long-relationship, only does 75% LTV loans on commercial loans. I asked for a 80% LTV, and they said, "No, we never, ever go to 80% LTV." This purchase was for just over $2 million, so the difference in 75% to 80% LTV was just over $100k. I then asked, "If I put $100k into a 6-month CD at your bank, will you go to a 80% LTV on the loan?" This would allow the bank to increase their lending limits and make more money by lending out my $100k. In 6 months, I get my $100k back, and I'm left with the loan I wanted. The bank agreed to my structure with a 12-month CD. Until this loan, this bank had never done a 80% LTV. That changed because I was willing to ask.

When you feel friction, you’re on the brink of growth.

Over the years I have noticed this intangible friction in the business from time to time. The feeling that things just are not clicking. The wheel of your business just isn’t greased right, and you feel it through that friction. I have found this friction is change. Although it is uncomfortable to go through, it is the best indicator that if you stay focused, problem solve, and push through, that is when progress and growth happen. As humans, we don’t like change, but being aware of why you feel this friction and knowing something good is coming from it helps you persevere.

Example: When we were at roughly 10 units, we could feel the intangible friction of inefficiency and a need to change in our business. This is when we implemented property management software into our company, and for the first year, it was a learning process. The whole time learning how to implement this new software into our business felt like friction. Once we had it down, it allowed us the ability to scale and push to the next level. There are countless examples in our business of this feeling of friction being the first indicator to growth — if you can focus and persevere.

Show gratitude and appreciation.

We have all heard you should find your “why.” It is the reason why you push forward. Why you work so hard to achieve your goals. I agree that is important, but something that doesn’t get talked about enough that I think is equally if not more important than your “why” is your “who.” The “why” is looking forward where the “who” looks back. “Who” asks, who has helped you achieve your successes in business and in life?

Related: Steph Curry Shoots ‘Til He Makes 500 3-Pointers Every Day: Here’s the Crucial Lesson That Teaches Us

If someone successful tells you they did it on their own, they either are lying about doing it on their own or lying about being successful — because it cant be done alone.

Reflecting back over your life to find those who have helped you grow along the way has two important purposes. First, it motivates you personally to do even better — for yourself and for those who have helped. This thought process breeds inner drive to make those people proud. The second reason is to show gratitude and appreciation. Take the time to tell people thank you and that the fact that they did XYZ for you helped so much, and you now realize it and will forever be grateful. These thanks need to be sincere. By giving them, great things continue to come from those relationships.

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Understand the responsibility of money and wealth.

Money is a powerful thing and should be respected. In the business of real estate investing, the dollar amounts you’re working with can be very large even as a beginner. It is vital to understand the responsibilities you take on when entering this industry.

I added this point because over the years, I have heard a lot of beginners ask me about no money down and how to raise money from other people. I did most of my deals with my own money. I did this because I realized what it meant to borrow someone else’s money. When I borrow money from an individual, I know they are giving me dollars, but at some point in that person’s life, those dollars were traded for time. What I mean is if someone lends you $100k and back when they earned that $100k it took them 3 years to do so, it means you’re not borrowing $100k from this person; you’re borrowing 3 years of their life. When you hold money to this level of importance, you understand the responsibility it carries.

In 10,000 hours of business, these 5 simple lessons surface over and over. I see so many people far smarter than me sitting on the sidelines running numbers, setting up entities, building a website, creating spreadsheets, and the list goes on and on. There is a time and place for all of those things, but in the beginning, so may smart people overwhelm themselves into stagnation. If you simply follow these 5 points, success will find you.

Investors: How many hours are you into your investing journey? What are the most important lessons you’ve learned so far?

Leave a comment — and let’s talk!

Jered Sturm is the co-founder of SNS Capital Group LLC. Starting in the industry 15 years ago as a maintenance technician for residential rental properties, Jered built on that experience to start a construction company that over a decade ago led him to begin purchasing investment property. Since his humble beginnings in the industry, Jered has quickly scaled his investments and now focuses on purchasing large apartment communities in the Cincinnati, Ohio market. While Jered's company has grown to own and manage over $30M in assets, they still focus on the core competency of buying, renovating, and maintaining investment rental property. Jered has been a featured guest on the BiggerPockets Podcast twice and has been contributing to the BiggerPockets blog since 2015. He looks forward to continuing to help others gain financial independence by sharing his experiences.

    Brian Gibbons Investor from Sherman Oaks, California
    Replied over 3 years ago
    Jared I really enjoyed this particular article from you, it was very inspiring and it really does talk about critical skill sets. I really think that you can hire out marketing, but you can not hire out talking to Sellers. Your skill sets regarding negotiating with Sellers and asking questions, you can’t delegate that or hire it out. YOU must be the negotiating professional. Be very aware about your backyard about who the players are, who the contractors are, who the private lenders are, who the cash buyers are, etc. Say what you mean and mean what you say. Under promise and over deliver. Be proud of solving problems for people. Know your market. Know what properties are selling for today. When you know values, you have great power and influence. But you must know values. Learn creative financing which includes private lending, private IRA lending, joint ventures, syndications, pooling funds, subject to, lease options, Notes, subordination of notes, etc. Learn how to give a speech. If you’re shy learn how to give a speech anyway. Go to Toastmasters. They will train you up better than anybody. Know every business owner in your town. Be a member of the Chamber of Commerce in your town. Cross refer leads with members of the chamber of commerce. Go to Real Estate Investors Association groups as much as possible. If you do this, make sure you pass out your business card to every person, even if some people that don’t look or act that successful. Be positive. Get their name and email. Send them a Real Estate Investing newsletter. And if your family does not support you in your dream, put up with it. Prove them wrong. Hang out with the top five real estate people in your town. Network and brainstorm and mastermind. Your success is directly linked to who you hang out with, if you hang out with non-successful people you will not be successful. Nice article!
    Thao Kieu Real Estate Professional from Totowa, NJ
    Replied over 3 years ago
    Hi Brian, thank you for sharing your knowledge, it was very helpful for me and all others who are new to the game. Take care and waiting for more post from you.
    Katrina M. Architect from Sydney, NSW
    Replied over 3 years ago
    Thank you for great additions Brian. It makes me glad to see an investor recommend Toastmasters among other skills vital for investing. Are you a Toastmaster?
    Katrina M. Architect from Sydney, NSW
    Replied over 3 years ago
    Thank you for great additions Brian. It makes me glad to see an investor recommend Toastmasters among other skills vital for investing. Are you a Toastmaster?
    Sandeep S. Investor from Cupertino, California
    Replied over 3 years ago
    What a beautiful article! I could relate too all of these key points and they are absolute gems. I even calculated how many hours I may have put in my REI career during the last 7+ years. I think I am somewhere in the ~8000 hour mark.
    Kevin Fox
    Replied over 3 years ago
    Hey Jered. Fantastic article. I couldn’t agree more with every one of the tips you gave. Looking forward to your next blog!
    Kevin Fox
    Replied over 3 years ago
    Also, what do you mean by “normal” people work 40 hours a week. aare you saying I’m weird for working 70-80/week?! ?
    Martin G. Rental Property Investor from Cincinnati, OH
    Replied over 3 years ago
    Fantastic article, Jered. Thanks for sharing your insights. Your generosity of spirit is inspiring and appreciated!
    Katie
    Replied over 3 years ago
    That gratitude also includes those great tenants whose money we are using to reach our financial goals.
    Jeff Hubert Realtor from Fort Lauderdale, FL
    Replied over 3 years ago
    A great read… Thanks Jered!
    Jad C. Investor from San Francisco, CA
    Replied over 3 years ago
    Very informative article. Really liked the examples too.
    Sid Yanamala Real Estate Agent from Charlotte, NC
    Replied over 3 years ago
    Jered Thanks for sharing these. The second one – Ask for what you want/need.- is my favorite. I just do not understand why people scared of asking for something. I do hesitate to ask sometimes but not always.
    Ken Martin Rental Property Investor from Elmira, Ontario
    Replied over 3 years ago
    Great artical. Thanks Jered.
    Jered Sturm Investor/Syndicator from Cincinnati, Ohio
    Replied over 3 years ago
    Thanks everyone! I appreciate your kind words. I hope you all and many other find this article helpful.
    Bryan Blankenship Investor from Cincinnati, Ohio
    Replied over 3 years ago
    Excellent article, as always! I love reading them and am thankful to know you as a friend. Even after many hundreds of deals, I still learn something every time I read your posts.
    Nate Denning Manufacturing from Sheboygan, Wisconsin
    Replied over 3 years ago
    Eye opening article! It’s obvious you are aware of your surroundings and articulate your thoughts well!!
    Michael Sadler from Edmonton, AB
    Replied over 3 years ago
    I like the idea of answering the phone because it helps get deals done!
    Katrina M. Architect from Sydney, NSW
    Replied over 3 years ago
    Thank you for a great article Jered. I particularly love your points 3, 4 and 5. Above all, your final paragraph resonates with me strongest as I am not even a beginner but have been one of those on the sidelines.
    Jennie Ortiz from Greer, South Carolina
    Replied over 3 years ago
    Great tips. Thank you for the articles. . I am a newbie, with no money and poor credit, which I am working on reestablish. However, I am starting by scouting properties for an investor and learning as I go. Hopefully he will make a purchace from some of the listings and I could start increasing my income. He is teaching me how to look up the ARV and provides the tools. I have a full time job so I am not getting much sleep these days. However its a great start for me
    john
    Replied over 3 years ago
    Good stuff brother, thanks!
    Amber Webb from Wade, North Carolina
    Replied over 3 years ago
    I really liked what you said about other people’s money and also about reflecting on the past for learning purposes. Life is about so much more than chasing dollars! Thanks for the read!
    Casey Murray Real Estate Agent from San Diego, CA
    Replied over 3 years ago
    Completely agreed on growing when feeling friction. We have to persevere through this friction, fear, whatever you want to call it. You either learn (i.e. fail) or succeed; it’s a win/win situation. I second Brian Gibbon’s take on knowing your marking. You won’t know a deal if you don’t know your market.
    Joe Fairless Investor from Cincinnati, Ohio
    Replied over 3 years ago
    Man, you nailed it and I can personally attest that you encompass all those key traits. Great share.
    Alex Saleeby Specialist from Beaumont, TX
    Replied over 3 years ago
    Thanks for the great article Jered. I agree with your points wholeheartedly. The perspective you shared about how to value private money in terms of time is powerful. Opened my mind to look at it in a new way.
    Teddi Henry Specialist from Southfield, MI
    Replied over 3 years ago
    Great article Jared, So insightful and motivating. Thanks for sharing.
    Teddi Henry Specialist from Southfield, MI
    Replied over 3 years ago
    Great article Jared, So insightful and motivating. Thanks for sharing.
    Teddi Henry Specialist from Southfield, MI
    Replied over 3 years ago
    Great article Jered, So insightful and motivating. Thanks for sharing.
    Mayo Higuera from halmstad, Sweden
    Replied about 3 years ago
    Hi Jered thank you so much for all the amazing information that you give in your blogs ?
    Mayo Higuera from halmstad, Sweden
    Replied about 3 years ago
    The interrogation at the end was I tiping mistake
    Mike Tetzel from Nashville, Tennessee
    Replied almost 3 years ago
    Great article!
    Jason Barnett Flipper/Rehabber from Memphis TN
    Replied about 2 years ago
    Great over-all advice Jered. Thank you for pointing out the who. I don’t think that it is brought up nearly as much as it should be. We all admire the “self made” person yet there really is no such thing. Thank you for pointing that out. Have a fantastic rest of the week, Jason
    John Cox Real Estate Agent from Fort Worth, Texas
    Replied about 2 years ago
    Thank you for that helpful information.
    Hondo Davis from Midland, Texas
    Replied about 2 years ago
    Although I’ve not had 10,000 hours in REI, I’ve had about 5 to 7k hours in oil and gas investing, after about 10 years of being a landman to learn the business. All your points are spot on, and for me, I would add- Honing in on a specific area or strategy in order to close deals. Being too scattered will significantly slow your success.