The Four Word Business Plan to Build Your Real Estate Empire

Can we all agree investing is in ways conflict versus your competitors and yourself?

Feb 16, 2014 at 10:30AM


Photo Credit: Paul Bica

"Empires won by conquest have always fallen either by revolt within or by defeat by a rival."
Colonel John Boyd

General Colin Powell and Norman Schwarzkopf exemplified world-class leadership during the first gulf war. However, as I later discovered the brilliant plan executed by those tremendous leaders was, in fact, crafted by a little known retired Air Force Colonel John Boyd.

Col. Boyd was in fact also responsible for the Top Gun schools operated by the Navy and Air force. He was in fact a true maverick.

What does that have to do with real estate? As much as you want it too.

The core tenet of this brilliant maverick is that to win any conflict you must collapse the opponent on themselves. The four steps to Col. Boyd's dynamic strategy system are 1) Observe 2) Orient 3) Decide 4) Act. (OODA). This process contemplates continuously cycling through the steps based on changing information.

Can we all agree investing is in ways conflict versus your competitors and yourself?

Therefore, consider the OODA loop in your business. To give a great example lets assume you are a fix and flip investor.

Step 1: Observe
Over the last few months, you have been noticing great deals starting to decline. The margin has to be sufficient to justify all the effort. If not, perhaps sipping a Mai-Thai on a sandy beach is a better use of time yes?

Step 2: Orient
You also can see because your margins are thinner that by definition your housing market will support spec build single family homes.

Step 3: Decide
This step just requires us to pull the trigger. Do we take advantage of the changed conditions? Keep seeing margins dwindle or head to Cancun?

Step 4: Act
This is the key ingredient of all success. We have to put aside doubt and any resistance and be willing to make errors. That is the only way to truly advance in life. Col. Boyd would surely agree with me that a decision even if a bad one is infinitely better than no decision at all.

"Tiger, one day you will come to a fork in the road and you're going to have to make a decision about which direction you want to go. If you go that way you can be somebody. You will have to make compromises and you will have to turn your back on your friends. But you will be a member of the club and you will get promoted and you will get good assignments. Or you can go that way and you can do something — something for your country and for your Air Force and for yourself. If you decide you want to do something, you may not get promoted and you may not get the good assignments and you certainly will not be a favorite of your superiors. But you won't have to compromise yourself. You will be true to your friends and to yourself. And your work might make a difference. To be somebody or to do something. In life there is often a roll call. That's when you will have to make a decision. To be or to do? Which way will you go?"
– Col. John Boyd

Apply these principals to one top stock
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This article is Copyright 2014 BiggerPockets, Inc

Douglas Dowell J.D. is a commercial and multifamily investor. His blog will focus on legally raising private money, risk mitigation with due diligence and management science. He is also an avid student of success principles with a focus on modeling success factors.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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