You need to invest in the right team but how do you bring these great people, the accountants, the lawyers, the syndicators, operators, and sponsors, into your world, having them work on behalf of your investment dollars? Steven dives into putting together the right team, getting what you pay for, and ensuring your team is all in alignment.
You need to invest in the right team but how do you bring these great people, the accountants, the lawyers, the syndicators, operators, and sponsors, into your world, having them work on behalf of your investment dollars? Steven dives into putting together the right team, getting what you pay for, and ensuring your team is all in alignment.
Key Takeaways:
Steven Pesavento 00:05
This is the Investor Mindset podcasts and I'm Steven Pesavento. For as long as I can remember, I've been obsessed with understanding how we can think better, how we can be better, and how we can do better. And each episode we explore lessons on motivation and mindset for the most successful real estate investors and entrepreneurs in the nation.
Steven Pesavento 00:32
Welcome back to another episode of the investor mindset podcast. I'm your host, Steven Pesavento. And each week, we share mindset tips and real estate investing strategies to help you take your business and your investment portfolio to the next level. Today, I'm going to talk about one of the most important things when it comes to building your business, as well as your investment portfolio. And it's investing in the right people, there's no more important thing than making an investment in the right people. And at the end of the day, when you're investing your capital, or you're looking to grow your business, it's going to come down to who you're surrounding yourself with.
Steven Pesavento 01:07
One of the biggest mistakes new business owners make is that they go real budget. And the old saying is you get what you pay for. And that doesn't mean you can't find great people, and who are in alignment with the budget that you're able to are looking to spend. But as you continue to scale your company, what you're going to notice is that in order to be able to go to the next level, in order to operate in the highest tiers, with the most successful people, what you need to do is you need to have a really strong team, that means you're gonna have to have very talented people, and you have to pay them well. And what happens when you bring those two pieces together? Well, then you're able to grow and thrive in scale, like you've never imagined you could before. Because when you've got a great person on your team, the difference is 10x. The difference in pay might be 20 30%. That might be 20,000. That might be 100,000. It depends on what level or scale you're playing at. But at the end of the day, what it ends up coming down to is that you've got the best people all rowing in the right direction.
Steven Pesavento 02:15
And so what does that mean for you if you're investing? Well, the same sentiment is true is that when you invest, and you're willing to pay, when you're willing to align yourself with great people when you're not focused so much on what the operators making, but you're focused on? Well, how are they incentivize? Where's the alignment? How do I make sure that they are going to win? If I win? How do I make sure that the people that I bring into my world and onto my quote, my team, if you're building your own internal family office, then what you need to do is you need to attract the best unit invest with the best unit invest in the best. And so there's no more important skill. And so how do you go about doing that? Well, first and foremost, you start where you're at, if you're a business owner, and you're on a budget, you're gonna have to work with what you've got, you've either got to incentivize people with cash, with salaries, with benefits with exciting bonuses that are going to come, or you're going to want to incentivize them with stock options with equity with potential upside, and you're gonna be able to find great people who are looking for all of those things. But you're also going to want to align that personality profile how those individuals think, with what kind of compensation is most likely going to appeal to them. If you're going out and finding a phenomenal salesperson, those people are born and bred to go out and hunt, they are born and bred to eat what they kill. Now, if you're paying a great salary, along with a great compensation, you're gonna attract an even better salesperson, when you've got that right compensation plan in place, you're going to really incentivize them.
Steven Pesavento 03:55
Now on the flip side, if you're looking to bring on a phenomenal operations person, potentially a COO level person, or somebody who prefers a little bit more stability and patience, and works a little bit slower has a different way of thinking. Oftentimes, those people may not be as entrepreneurial. Now, that doesn't mean that that's true all the time. But from a general perspective, the desire for security and the desire for having a sure thing is going to align more with that kind of personality profile. So when you're building your business, you want to understand what do the other people need and want and how do I go and attract them into my world? Now, when you go and you bring in the best, and you can get everybody aligned under common interests, common vision, common goal, you can have massive growth. We've seen it right here at VonFinch, VonFinch capital, we've done tons of deals and one of the big reasons we've been able to accomplish so much expecially in a year, full of lots of money. competition like we have experienced this year, because we had phenomenal people all rowing in the same direction. Now, from an investor perspective, you gotta be thinking about it from the same way. Hey, how can I go bring these great people, the accountants, the lawyers, the syndicators, operators and sponsors, how can I bring them into my world, having them work on behalf of my investment dollars, and being able to really see that scale and grow? While you're not going to go to the lowest priced option in the market, otherwise, you're probably going to take a little bit more risk going with somebody who is maybe willing to accept a much, much lower piece of the pie. Now I see some sponsors out there who don't have any experience, who might offer something like a 9010 split, where they might receive 10%, they're not, there's no, they're not charging any fees, because they don't have any overhead because it's just them. Now, when you start building a team, you've got to start paying those people. And so when you're thinking from the perspective of building your team, as a passive investor, you want to think like a billionaire thinks and what does a billionaire do? Well, they build a family office, and we're gonna have to do a whole episode on family offices, but from a high level perspective of family offices, essentially hiring full time employees paid salaries, in each of the different areas that are related to the investments that you have. They have attorneys on staff, they have CPAs on staff, they have operators on staff, they have underwriters, analysts, all these people are all working internally on your behalf, and they're all communicating with one another, to make sure that they are working to grow your investment. Well, essentially, that's what we have here at Vaughn Finch capital. Of course, we have our attorneys, we have our CPAs, we have our underwriters, we have our director of investments, we've got people who are going out and finding great phenomenal opportunities, and we're all bringing that in house. And then we bring that to you as an investor. So you want to go build your own team, or you want to work with people who have built that team who you know, like and trust. At the end of the day, what's the underlying premise of what I'm talking about today, it's the reminder, if not the realization for the first time that bringing on the best people in your world, finding ways to higher partner and scale together is going to directly lead to massive amounts of success. So let's bring that methodology. Let's bring that energy into what you're going to be doing not only to close out this year, but into next year so that you can start experiencing the kind of growth that we've been experiencing and the kind of growth that we all deserve to be able to experience in our life in our investment portfolios in our business. So thank you so much for listening. And we will see you on the next episode.
Steven Pesavento 07:46
Thank you for listening to the Investor Mindset podcast. If you liked what you heard, make sure to rate review, subscribe and share with a friend. Head over to investormindset.com to join the insider Club, where we share tools and strategies from the top investors and entrepreneurs and how to take it to the next level.