4 Things You Need To LEVERAGE For MASSIVE Growth

multifamily tips real estate investing small business tips for success Feb 21, 2022

If you want more in your life (whether that's time or money) you need to learn the rules of leverage and how to create it in your life.

Leverage comes in many forms. My favorite place to bring all the rules of leverage together is through investing in multifamily real estate where the end result can create tremendous results for my investors, my team and myself. There are very few business models that reward you in nearly the same way.

Literally for every $1 I add in profit adds $20 (or more) in overall value. When you start to think about adding $10s or $100s of thousands of dollars in profit; you're now talking millions of dollars in value.

 

Leverage Law #1 - TEAM

Show me the people someone surrounds themselves with and I'll have a pretty good idea where they'll eventually end up... in business and in life.

I've met my fair share of brilliant, dedicated and hardworking people that never scaled their real estate businesses... some by choice, most not for a lack of trying. The common flaw? None of them knew how to build a culture to attract the right people on their team to take the business to that next level.

The best deals are created and monetized by the strongest teams. Period.

In my opinion the development of great leadership skills is one of the most underrated skills out there and if you truly want to leverage the power of TEAM you will need to invest heavily here.

 

Leverage Law #2 - NETWORKS

Building a strong network is a lifelong commitment. With everything we know about the business it blows me away how many people still "burn and turn" to get that immediate gratification.

Network building is not about "getting", it's about "giving" and when you give you get. I've never had to go looking for people to introduce me or meet with me, they come to me.

When someone in my network has a need they want fulfilled I sit down with them and work on the best way I can solve that problem. The easiest way to build a strong network is to help others market themselves, their business or their products... even if they don't know you.

 

Leverage Law #3 - MONEY

"When I have money I get leverage. When I have leverage, I get more money." ~ Ray Dalio

Commercial real estate; multifamily real estate is really the perfect place to apply leverage.

The banks will fund up to 80% of the purchase price and in many cases 100% of the improvements. My tenants pay my mortgage and through prudent management, we increase the value of the property.

It's not uncommon for us to identify a building for $15MM to $20MM that with the right upgrades and proper management can be worth upwards of $20MM to 30MM in a few short years. That's real money that you can bank on... or borrow against again later (topic for another blog).

 

Leverage Law #4 - SYSTEMS

There is no way to create sustainable results without systems.

I love technology because it makes my life easier and for someone like me, who's always on the go, that's a beautiful thing. With one click of your mouse you can have an investor vetted, you can make offers on multiple properties and check in on how your existing portfolio is performing. Operating at scale requires operating at speed. Operating at speed requires intuitive systems and training. Leveraging systems is typically the most overlooked "factor" that creates a lot of confusion and needless "back and forth dialogue" in a company. Not knowing how to leverage systems keeps a lot of businesses small and difficult to scale.

 

Scaling a business requires momentum and it's much, much easier to create it when you use the 4 laws of leverage.

 

Marcin Drozdz


The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax, or similar matters and should not be relied upon for such purposes. www.marcindrozdz.com is not a financial or tax adviser. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. www.marcindrozdz.com, its subsidiaries, and affiliates are not responsible in any manner for direct, indirect, special, or consequential damages however caused arising from your use of the information contained herein.

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