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Playing Business Versus Doing Business INVESTING IN REAL ESTATE IS A SERIOUS ENDEAVOR THAT CAN BRING SUBSTANTIAL REWARDS WHEN APPROACHED WITH DILIGENCE AND A STRATEGIC MINDSET.
By Jim Tannehill
n the world of real estate investment, there is a line between “playing business” and “doing business” that can often blur. As an investor operating in the dynamic realm of real estate, it is essential for you to distinguish between these two approaches and understand how each impacts your journey to success. I
Engage in real estate workshops, seminars, and networking events. Embrace the wisdom of experienced investors and learn from their successes and failures. The Empire Operating System equips you with a wealth of educational resources, including access to industry experts and research-backed insights. The importance of risk management. Playing business can expose you to avoidable risks, as it often involves speculative ventures without proper risk management strategies. On the other hand, doing business prioritizes risk assessment and mitigation. As a responsible investor utilizing an operating system, you understand that every investment carries a degree of risk, and your goal is to manage it effectively. Diversification is a cornerstone of risk management. Spreading your investments across various property types and geographic locations reduces exposure to local market fluctuations. Additionally, maintain sufficient liquidity to weather unforeseen challenges like economic downturns or unexpected expenses. Setting clear objectives. When you play business, goals may be loose or unclear. Doing business requires setting clear, measurable, and realistic objectives for your real estate ventures. These goals
UNDERSTANDING DOING BUSINESS
Doing business means approach- ing real estate investments with the mindset of a seasoned entrepreneur. It involves strategic planning, metic- ulous research, and an unwavering commitment to your business goals. When you do business, you focus on fundamental principles such as market analysis, property valuation, and risk management. You engage in comprehensive due diligence, evaluating the potential of each investment thoroughly. Additionally, you adopt a long-term perspective, considering not only immediate profits but also sustained growth over time. The Empire Operating System empowers you with the tools and knowledge needed to make informed decisions and build a robust real estate portfolio. It guides you in understand- ing the market, mitigating risks, and identifying emerging opportunities. The role of education. Transitioning from playing business to doing business requires a commitment to continuous education. The real estate industry is constantly evolving; staying informed is crucial to thriving as an investor. Empower yourself with knowledge about property trends, financing options, legalities, and taxation.
UNDERSTANDING PLAYING BUSINESS
Playing business can be likened to an enjoyable game of Monopoly. You may have dabbled in real estate ventures without fully committing or may have treated it as a hobby rather than a full-fledged enterprise. Although this approach can be entertaining, it carries risks. When you play business, your investment decisions might be based on emotions, trends, or quick wins. This could lead you to impulse buying or selling without conducting thor- ough due diligence. You might also overlook market analysis, financial projections, long-term sustainability, and other essential factors. Although playing business can be a fun introduction to real estate, you still need a strong foundation for your real estate investment strategy. To build a successful portfolio, it is crucial to transition from playing business to doing business.
62 | think realty magazine :: september – october 2023
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