Is it hard to do both??

Over the years I have seen successful property investors/developers etc move on to operating property related businesses, ie BA, mentoring etc etc.

I expect it would be very difficult to manage both efficiently?

Personally I would rather focus on investing/developing to generate further income as I do not want the responsibility. or be accountable to anyone ....... less stress.

I have met a number of successful investors/business operators who do both very well and on the flip side I have also seen some who fail miserably because they can not manage the stress or do not have the people skills because they have never had to be accountable to anyone other than themselves.

What do you think?

MTR

 

Businesses take years to get established most fail in first 5 years.
Yes it is difficult to do both if both are just starting.

 

I think if it's a passion you have to become a BA or do mentoring etc, then I would say go for it. Having the property investor background (have to be successful though imo) will obviously be a massive help and complement your business endeavor. But if its not something your passionate about and not able to add value to the client then I wouldn't bother.

 

I suspect most of the investors/developer also in property related businesses go into them because they can generate significantly better short term cash flow than most investments. A property development project might make 6 or 7 figures by the time it's wrapped up, but it doesn't make much before then. Running some seminars can make a big difference for day to day cash flow.

 

I use my property investing skills in other non related investments. And it really helps. After all everything you invest in is 50/50, it either goes your way or it doesn't.
Mentoring is great if you have the time, but it always should be free. Than nobody can say that you have started mentoring because you cannot make money investing.

 

I guess a lot of people need an income to support their portfolio, particularly to keep blue chip homes.

I see it in the same way as I do writing. Authors' main game may be writing a novel, but in the meantime they might work as a copyeditor full time/start a writing company - the passion for words goes both ways.

Downfall is probably where investing in a personal portfolio is a set of entirely different skills to managing others' money, expectations etc and providing a service. I believe some genuinely want to give back. And some people just have excellent negotiating/auction bidding skills - it's more lucrative to put them to use for a lot of people regularly than to only benefit from them when they are ready to buy another investment...

 

My understanding that writing on a topic where you've got good domain related knowledge (ie non-fiction) is generally more an exercise for marketing and exposure, rather than for it to become a full time source of income. Certainly it's something that requires commitment and passion, but from a business perspective the true value is one of generating awareness of the authors business.

BTW, great article today @Jennifer Duke
Why you didn't get that rental

 

@Jennifer Duke I agree with Peter, Great article you wrote. Very informative and really on the money. Great stuff.

 

Isn't the saying, those who can't teach???

In all seriousness I always wonder the same thing, if someone is actually a successful developer/investor and assume that its either for walking the street money or genuine enjoyment/altruism.

 

If we are talking about teaching/mentoring, then I know from talking to a few mentors that they do it for a few reasons. (at least the ones I know)

1. They genuinely enjoy teaching others and watching them succeed.
2. Many successful investors and developers are really passionate about their craft and feel they have some great skills and knowledge to pass on to the newbie and sometimes not so newbie, which can save them a lot of time and further motivate them to take action as they feel more supported.
3. Its another great business avenue for investors/entrepreneurs/developers to establish this venture. Helping others doing what you love and getting paid for it.

I have paid mentors in the past and also mentor. Personally, I feel the value a successful and experienced mentor can add to some people is tremendous. This forum is really one big informal mentor.

 

Have you ever watched Shark Tank? They won't tske on someone who has another business as well as the one they are presenting to them.

 

+1
Friend in real estate asked if I could take over his property management role a while ago as I self manage and he thinks I have some good organisation skills....
Decided to give it a miss because I cannot handle fools for a prolonged period and be nice about it.....my wife says I can be direct at times - I prefer "decisive".......

Happy to stick to the main game and look after my business of generating passive income.
Work steady most times, take the good with the bad, but I enjoy it.......

There are some "Type A" stress junkies who can do both....always busy and time poor....chained to the phone!
I wonder how effective they really are......

 

Thank you!

 

Hey MTR -

Good post - many 'mentors' mentor and also push their own agenda. There are a heap of examples that come to mind, you gather a following and bang sell them your product.....you know like a cult

Cheers Ivan

 

I'm the reverse here, I've dropped to part time work for a while as I'm making enough from rent to do so. Can't keep it up longterm though.

I was actually thinking of reskilling as a financial counsellor. Not entirely related though, the main employers are charities, getting people on low incomes out of a financial hole. Although am also investigating a business venture with a friend, he's easily distracted though and he's sales so I actually do need him.

 

Cash flow Capital comes to mind, massively successful. Marketing, marketing, marketing.... the usual hold seminars all around the country and people flock. They buying properties everywhere in Australia and US.

MTR

 

I think it depends on the level that you want to take it to.
I limit the number of people I take on as clients because I don't want to do it as a job. It's not a career but it is emotionally and financially rewarding. It does help with income but not as much as a development. I might make $50k this FY from it.

For me, I get most of the enjoyment out of it by helping people. We all give a lot of free advice here on the forum but when people want to have a more indepth help and learning, you can't do it all for free.

I agree that helping people and being 'responsible' for their outcomes is hard.
I have to be very upfront with clients about the risks involved. Even then I won't take on projects which are high risk for them. I don't want to be fighting a Council for 12mths on their behalf and they end up hating me for a project that can't get off the ground. I can/will only do projects which are solidly feasible with low risk.

WAAAAAAY above me are the people that do seminars and have cults of worshippers and make $$$ from it. I always question why they need to do these seminars if they are that good as property.

 

I think because most of these gurus are actually making massive amounts of money from their business ie seminars/workshops, mentoring program, project management, feasibilities. They also have the opportunity to take on development stock and just flip it over to clients with little work other than marketing.

I really think some of these larger business' have lost their way, and seems people are very easily sucked in.

MTR

 

MTR - you know re pushing your product, the timing of my last post coincided with the other thread - all these gurus including him, use their 'expertise' to mentor and then push a fund or development at the end. At the end of the day, naive investors fall for the the trap of "FREE" seminars to learn how to save tax and invest with $20 a week, thats crap, they get you there project a story that your property will grow by 10% a year which is BS and then show you a property.....do their disclose their commission? s%^t no, no one works for free.

You can go on naming them - I see them all and try to clean up the mess, most investors don't do a google search on the property / area they are buying in....just sign a contract.

Its disgusting. A true mentor should be fee for service, if he/she is having a FREE seminar, ask them how they put food on the table...."Commissions" and they are big - I am upfront with everyone I deal with. I tell them what my cost is and how my firm makes money. I share my experience cause i'm passionate, and upfront. ITs amazing even in the mortgage broking world how many do not disclose their commissions....

Mentors become pushers....


Cheers Ivan

 

I agree they are raking it in this way and gone past helping people and just $$$$. At the mature ages of many of them either they are spending faster than they earn it or the lure of the money is too great. I wonder what happened to their original goals to most likely reach financial independance and enjoy life.