Real Estate Investments: Think Bigger, Earn More

When it comes to investing in real estate, most business owners think too small. If your small-scale investing company can theoretically generate a positive cash flow of hundreds of thousands of dollars from just one property bought from a single owner, imagine how much you could earn if you improved your lead-generation system? 

When your company thinks bigger, much bigger, then the number of people, properties, and proposals it receives will multiply. 

Since thinking bigger is not an intuitive process, here are some suggestions on how to think big. 

 

Define “Big” 

How large can a real estate development and investment company grow? And how quickly can a small-to-medium sized company become a large company?  

Ask Ziel Feldman, who started one of the most successful real estate businesses in New York City.  Today, his company, HFZ Capital Group, manages billions. In 2019, they managed more than $10 billion worth of investment property.  

While that’s impressive enough, it didn’t take a quarter of a century of relentless effort to grow that big. In fact, Ziel Feldman only launched HFZ in 2005.  

As you can imagine, this firm has a large portfolio:

Most HFZ properties are in Manhattan, such as The XI, The Bryant, Halcyon, 29th & 5th, The Belnord, The Chatsworth, The Astor, 11 Beach Street, 88 & 90 Lex, and 53rd & 8th, Marquand, 505 West 19th Street, and One Madison. 

However, the company also owns the Shore Club in Miami Beach; Waldwick Sports Park in Waldwick, New Jersey; Fisher Building and Albert Kahn Building in Detroit; and North Station District in Philadelphia. 

 

How to Think Big 

The size of your company reflects the scale of your thinking.  

So, if you’re a real estate agency, you’re thinking about listing property; if you’re a builder, you’re thinking about building; if you’re a wholesaler, you’re thinking about wholesale; and if you’re a flipper, you’re thinking about flipping. 

While there is nothing wrong, per se, with your niche, it might be too narrow. Where will your company be in the next 5, 10, 15, or 20 years if you limit your options? 

Stop thinking about how many doors you need to knock on each month. Stop thinking about how much money you should bring in every quarter. And stop viewing 6 months or a year as a long time. Instead, think in terms of years. Also, think beyond passive income, wholesaling, flipping, or whatever your niche. 

Expand your horizons. Think of how to get better deals and better margins on your deals. 

And look at your deals differently. 

If you only focus on one kind of deal, you’re missing out on opportunities just ripe for the picking, and if you’re only thinking about your niche, you’re not noticing much in the wide world of real estate. What would happen if you expanded your vision? What would happen if you began looking at every possible option available to you right now? 

 

Meet the Leaders in Your Field 

If your company is the average size and income of the other businesses you work with regularly, what would happen if you worked with the business leaders in your city—business owners who were happier and more successful than the people you know now? 

The secret to networking more effectively is hiding in plain sight: join the most important business and industry associations in your neck of the woods. Your chances of meeting the right people at the right time and stumbling upon the right deals will increase exponentially when you develop relationships with more successful associate members.  

In conclusion, imagine what would happen if you understood what “big” means in real estate investments, expanded your own perspective to see opportunities beyond your niche, and connected with other people doing even better in business. Everything in your business would change for the better!

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.