preet

Investor and serial entrepreneur. Commercial Multifamily investor and developer. Trying to make a difference in the world. ✌🏼🕊

[Chris Lakin @chrislakin]

what your risk-aversion costs you

[tz (tiffany zhong) @tzhongg]

i think about this every time a founder tells me they are doubling their team

[Jay Alto @theJayAlto]

if you’re ambitious, please read this poem

[Alex Hormozi @AlexHormozi]

If you roll a die 1000x, you’re likely to get lucky

And when you get lucky, people will call you out

The difference is, you can force luck to happen by doing so much it would be unreasonable not to get lucky

And this is what normies don’t understand, and why you’ll beat them.

[Alex Hormozi @AlexHormozi]

The sooner you accept that it’s going to take longer than you want, the sooner it happens faster than you expect.

[Tai Lopez @tailopez]

Elon Musk was right when he said take your 10 year goals and try to do them in the next six months. Even if you fail, this is the correct mindset that wins.

[Rebel News @RebelNewsOnline]

Former PM Stephen Harper: "I am the only person who could say that both of the men running to be Prime Minister once worked for me. And in that regard, my choice without hesitation... is Pierre Poilievre."

[Nithya Shri @Nithya_Shrii]

Nobody is more stressed than a 25-32 yrs old thinking they are running out of time.

[Mindset Machine  @mindsetmachine]

Think about it

[Clint Fiore 🦬 DM for Biz Deals @ClintFiore]

Being at the top of your organization means nobody is telling you what to do or what you should be working on.

This leaves you vulnerable to working on the wrong things that aren't the best use of your time.

Questions to ask yourself as the leader to determine what you should be doing:

- What could I accomplish that would make everyone's lives easier?

- Where are we bottlenecked right now and how can I help free it up?

- Who probably really needs my help right now but won't ask for it because they assume I'm too busy to?

- What's a high leverage activity that moves the needle big-time for us?

- Is there an outside person or organization that if they became an ally of ours would be a game-changer? How can I build that relationship for us?

- Is my leadership team setup for success? Do they have clear objectives and everything they need to achieve them?

- Is there a hard conversation that needs to happen in our organization? Can I force that to happen now instead of letting it fester?

- What's the most wasteful thing we are doing? How can I eliminate it or put a system in to control it once and for all?

- What's the most important next hire we need to make? Can I accelerate it? Can I help find some ideal candidates from my network?

- Does everyone on our team remember our Values? Who can I praise publicly for exhibiting them this week as a way to remind everyone of them?

- What's a deal I could make that would put us 1-3 years ahead on our projections in the next 3-6 months?

- Who needs to go? Why are we delaying it?

- Who needs some encouragement right now?

This was just off the top of my head... what else would you add to this list?

[ₕₐₘₚₜₒₙ @hamptonism]

wake up.

[Naval @naval]

If you don’t lie awake at night thinking about it, you don’t want it badly enough.

[Alex Forbes @AlexForbesOps]

As somebody who is smack dab in the middle of $1-3M, this holds up.

It’s a grind to say the least.

Spread out to thin but not enough capital to rapidly expand.

Would anybody else be willing to speak on their experience while in this phase?

[John Seiffer @BetterCeo]

Reposting since it's been a while.

[Ben Little @TRUmav]

How we structure our Operating Partner model & common questions/answers around it:

Why this & not your traditional org chart of Director/VP, DM, GM, etc: The only way we have ever found to make people think & act like an owner is to make them one. We are both working towards the same long-term goal (balancing growth w/ maximizing NOI)

Something else that really matters: Someone getting to call themselves an owner is a really big deal to most people. It's not just Ben's store anymore. It's THEIR store. This alone changes behaviors. 'A soldier will fight long & hard for a bit of colored ribbon.'

Pay: They get a salary, full benefits, 401k w/ match, & 25% of the NOI (Net Ordinary Income)

How much do they earn: Could be just their salary, could be $1m+. We had/have the full spectrum

How we define NOI: It's the very bottom line. So after depreciation, amortization, taxes, & debt service

How we distribute: Once a month. We withhold 50% of the distributable cash for capex spend & projects. If no major spend is needed, we distribute the remaining funds twice a year.

Selection: For the last 15 years ours has been 100% internal. It gives high performers in your org a clear path to what is generally the ultimate goal in our industry (store ownership) & also keeps them from jumping ship for a lateral move w/ higher pay.

If you're starting out fresh on #1, that's the hard part. The best advice I can give here: if it's not working out, move on quickly.

Do they put up any cash? No, but I don't think it's a bad idea for them to put up something small like 5k-10k to reinforce the ownership piece.

Are they on the debt notes? No, this is largely an all-upside, zero-downside prop for them

What happens if you sell the biz? This is probably controversial but we would give them 25% of the sale. They built the business up to that point, they should get the same rewards.

What happens if someone wants to leave? We wish them good luck & there is no buyout or anything like that. The profit share stops when they leave.

Is there a legal document? There was in the beginning but there is not one now. Handshake deal. They have full access to the financial workbooks.

Mistakes we've made:
-Not communicating clearly enough that the cashflow likely won't be great the 1st 5 years, especially as you pay off the FF&E note
-Not doing credit checks. There is an almost perfect correlation between my operating partner's credit scores & how well they run the businesses (from a money-making standpoint)
-Gave the 1st couple OP's real stock instead of phantom stock. It's just a banking & legal doc nightmare + it starts a never-ending buyout cycle if they want to leave or retire
-Giving someone more than 2 stores. If someone has 3 stores & works 6 days a week, at MOST they are spending 2 days a week in each store. That is not worth 25%.
-Not forcing them to take an accounting 101 class on how the general ledger, balance sheet, trial balance, PnL all work together
-Not doing an expected capex review/spend planning session at the beginning of each year until recently
-Not explaining what income taxes are. For many, it's the very 1st time they will ever have to PAY income tax & not get a refund. Very easy to overlook.
-Pay them thru 'wages' & not distributions to help w/ the above
-Have a very clear protocol for if the worst case happens & you need to remove someone. We've been lucky & never had to cross that bridge. But have a plan.

At the end of the day, there is no right or wrong way to do this. There is no perfect system & every setup will have 'gaps in the program.' But even w/ all the mistakes we've made (& continue to make) it's been one of the best things we ever did, & is a huge reason for our company's success.

[videos that boost your mental health @cheerfulclips]

A mother's reaction after seeing her son has passed the bar exam

[DAN KOE @thedankoe]

People don’t understand when you’re in a season of intensity. A season where you are “busy” building out a meaningful future with maximum clarity.

They say, “Why don’t you take a break and have some fun?”

They can’t see that nothing else is more fun than what you are doing.

[Justin Ryder @jt_ryder]

Go beast mode on #cre for 100 days:

• Meet 100 people
• 25 cold calls per day
• Start a journaling habit
• Read three biographies
• Call everyone you’ve ever sold to
• Call everyone you’ve ever sold for
• Call every broker you’ve closed with
• Find/canvas 30 off-market properties
• Break down every on-market property
• Document your journey on social & source a client

Great time to dig in.

[Naval @naval]

Every great work of art is created because the creator is serving a higher power.

[Kyle Wade CRE @Kyle_Wade2]

For off Market Buildings..

Don’t Ask: “Would the Owner Consider Selling?”

Do Ask: “At what price is it worth submitting an offer?”