Recently, I returned from coaching at a preseason training camp for a University Basketball team in Lisbon, Portugal. Let me begin by saying that I have been coaching basketball for nearly 20 years at various levels, and I've been a professional business coach for over 9 years. The similarities between coaching sports and coaching businesses are striking.
Where Real Estate fits in. Over the past few years, I’ve worked with real estate clients as a Commercial Realtor who are buying and selling commercial properties or businesses. My goal is to help them make the most profitable decisions regarding their investments. This got me thinking about the commonalities between successful sports teams and successful investors. Here's how I believe you can make more money in real estate investing by adopting the principles that winning teams employ.
Have Clear Goals and Expectations
At the start of each season, winning teams establish a clear set of goals and expectations, not just for the team but for each individual player. As both a coach and a realtor, I want to know what you aim to achieve personally. Unfortunately, many players and investors only have a vague idea of their short-term or long-term goals. Having written goals not only clarifies the direction you want to go but also provides a benchmark for assessing your progress. Reach out to me if you would like a free goal-setting sheet and exercise to help you gain that clarity. It’s challenging to achieve success in sports or investing without a clear definition of what success looks like.
Play to Win
It’s easy to play, but developing a mindset focused on winning is something entirely different. Playing to win on the basketball court means fighting for every ball, whether you're down by 20 points or up by 10. This doesn’t mean winning at all costs; it means striving to succeed and doing everything ethically within your power to achieve your goals. In real estate investing, playing to win involves developing a strategy for success and executing your plans to reach your goals.
Base Your Success on Core Values
When coaching businesses, I always start by helping them define their core values, as these are the cornerstones of their success. Personally, my core values as a realtor are proactive, fun, creative, trustworthy, hardworking, and generous. I prefer to work with clients and players who share these values. Creating a team, partnership, or even investing in businesses or properties that don’t align with your core values leads to stress, dysfunction, and even illness. Understand your core values and base your real estate investments on them.
Defense is as Important as Offense
When I began investing in businesses, properties, and stocks, I thought being a player was all about offense—doing the deal and pushing forward. Over time, and through coaching, I realized that everything starts with defense. It’s great to score 80 points in a game, but if your opponent scores 81, you lose. The same applies to investing. While making deals and investments is exciting, how much you save at the end of the day determines the real outcome. Understanding financial statements and having clarity about your income and expenses positions you ahead of the game in the long run. Protect your investments and only commit your time, money, and energy to those that not only help you achieve your goals but also support your core values and are profitable in the long term.
Balance and Mental Health is Everything
When I was asked to be the assistant coach of the university basketball team, I initially didn’t think I was qualified (and I probably still feel that way most days). However, Sergey, the head coach, was persistent, and I agreed to coach on the condition that I could work with the players to reduce their stress and anxiety and support them in becoming the best players they could be. Over the years, I’ve seen players, business clients, and investors who struggle with sleep and are disturbed by their results. Entering my seventh decade, I can tell you that balance and mental health are more important to me than money. When we have balance in our lives, our families, and our investments, life becomes much easier. This is not to say there won’t be times when we need to work harder, play tougher, or fight for what we want to achieve, but balancing those times is crucial to enjoying our successes and the life we have.
It Takes a Team
Successful players understand they can’t win a game alone. Successful investors understand this principle as well. When I’m investing in stocks and bonds now, I rely heavily on my advisors. I have an accountant and a lawyer whose professional advice I trust. When considering a commercial investment, I bounce ideas off friends who are also commercial realtors. You need a team too. Surrounding yourself with trusted advisors, coaches, or other players, and having your partners and family members on board, makes life easier. You know the saying: "If you want to go fast, go alone; if you want to go far, go together." Personally, I find much more enjoyment in being part of a team, but even those who prefer to work solo need support.
In conclusion, I believe real estate investing shares many similarities with basketball coaching. By adopting principles such as setting clear goals, playing to win, basing your success on core values, emphasizing defense, maintaining balance and mental health, and recognizing the importance of teamwork, you can enhance your chances of success. These strategies not only help you achieve your financial goals but also ensure that your investments are aligned with your values and lead to long-term profitability. Have a question about commercial real estate? I am happy to answer.
Dave Fuller, MBA is a Commercial Realtor with Team Powerhouse Realty. The author of the book Profit Yourself Healthy for small business owners who want to earn more and work less, and a high level volunteer basketball coach. Email your questions to Dave@businessrealtor.ca.
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