“Passive income isn’t about complexity; it’s about consistency.”
— Bronson Hill
I’ve had over 2,500 interviews with millionaires.
There’s one thing that savvy ones do and other ones don’t.
Today, we’re going to talk about it!
We’ll also cover the biggest mistake that high-net-worth investor make.
Let’s jump into it!
1. They Don’t Take Action
The number one mistake high-net-worth people make is not taking action.
That might sound really simple on the surface.
Why would someone not take action?
Well, some people deal with analysis paralysis.
This can happen when we do something new.
We see all the risks and all the considerations and freeze up.
Acknowledging risks and certain considerations is important, don’t get me wrong.
You should always look at the merits of an investment.
You should also ask questions like: What group is doing this? What’s their history?
I have a deal flow funnel that addresses this process in my book, Fire Yourself.
You start with the market itself, then look at the operator, then research a specific deal.
There’s a reason to use that order.
It helps you evaluate the specific deal you’re looking at from all important angles.
The challenge for a lot of us is that we don’t actually go out and meet people who also invest.
There are investor groups all over the U.S.
I live in the Los Angeles area.
Out here, there’s at least a dozen different investor meetups that meet monthly.
They’re out there.
These meetings are full of people just like you and me doing deals and sharing knowledge.
I didn’t even know passive investing was a legitimate source of income until I met someone who did it themselves.
I thought: How could someone invest with people they have never met in person?
How could they achieve good returns?
Getting around other investors, like those who are in groups, can really help you grow.
It’s important to have a learning mindset for this exact reason.
Great investors will find a way to grow instead of letting analysis paralysis get to them.
They’ll go to groups, attend deal webinars, and read, among other things.
Successful investors don’t just decide to invest.
They’ll use strategies such as giving themselves deadlines to choose their next deal.
By copying their technique, you can also find great investment success!
2. Investing in a New Asset Can Feel Risky
Investing in a new asset can feel risky.
I totally get that.
We’ve done deals in oil and gas.
We’ve done multifamily.
We’ve done a development deal in the senior housing space.
There’s risk in everything.
But there could also be an opportunity in everything.
That’s why it’s important to push through and learn about the asset.
Ask questions like:
What’s the biggest risk of this deal?
How do I make money?
What are the ways things could go wrong?
If you wait until consensus is reached in the investing community, you miss the boat.
Once you see a great deal in Forbes, the moment has passed.
You want to get into something when it is out of favor.
Be a contrarian.
When everyone’s going one way, you’re going the opposite.
You’re looking for opportunities when everything is on fire.
That’s how fortunes are made.
In stocks specifically, contrarian investing can deliver up to 3.64x returns.1
As you do this, remember to find the risks.
Learn about what you’re getting into, almost like an academic would study in their specialty.
Some of the best investors approach deals intellectually.
They’re also practical.
They know what will and won’t make a profit.
After you learn all of that, you can take action and invest.
3. Make Your Decision and Take Action
When you make goals, you need to make sure they’re measurable.
So many goals fall through if you can’t track progress.
Be smart by creating specific, achievable, and realistic goals.
Creating incentives has also been proven to help, according to studies on the subject.2
Remember: The number one mistake most people make is not taking action.
The biggest way you can take action is by making smart goals around what you want.
What is it you want to create in your life?
How specific can you get on the timeline?
Can you measure your progress?
Create those goals so you can achieve them.
Take those actions so you can get the life of your dreams.
I’ll leave you with this:
Passive income isn’t about complexity.
It’s about consistency.
I know people who are in over 70 deals.
They are consistently learning, consistently investing, and consistently growing.
If you do the same, you can achieve your investing goals.
Now I want to hear from you!
What are your achievable goals?
Let us know in the comments.
Before you leave, make sure to check out our special report about inflation investing. It shares the best choices to invest during an inflationary environment.
If you are interested in investing with us, we are happy to answer any questions that you may have. Join our investment club today and we will be in touch.
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Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.
Works Cited
1. Rakesh Yadav, Ameya Patil, Krishna Sarda and Makarand Milind Bapat. “Does Contrarian Investing Beat the Conventional Strategies and the Index?.” SocioEconomic Challenges (2024). https://doi.org/10.61093/sec.8(2).31-43.2024.
2. J. Hoch and C. Dewa. “Walk Long and Prosper: What Is the Optimal Way to Help People Achieve Their Goals?.” Journal of General Internal Medicine, 31 (2016): 712-713. https://doi.org/10.1007/s11606-016-3709-z.
