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PODCAST EDUCATION

Discovering the Value of Your Time

Episode 057

John Larson and the Real Estate Cowboys talk passive income real estate investing.

Hear new episodes every Sunday morning at 8 a.m. The Cowboys talk about discovering the value of your time and how to increase it.

Keep the #CowboyCoffee hot while listening to John, and the Cowboys talk about how to #BeACowboy and earn passive income in real estate.

Episode Transcript

Keith Weinhold: Hey, this is Keith Weinhold from the Get Rich Education podcast. You are listening to my friend John Larson and the Real Estate Cowboys. Don’t quit your daydream. 

Robert Helms: Hey everybody, it’s Robert Helms, host of the Real Estate Guys radio show, and you are listening to the Real Estate Cowboys. 

Announcer: Have you thought about becoming financially free through real estate investing, but don’t have the time or knowledge to get started? Welcome to the Real Estate Cowboys podcast. Each week we discuss passive income investment opportunities in the red hot Texas market. John Larson and the Real Estate Cowboys will show you how to leverage their team to build wealth in real estate through passive investment opportunities. And now here’s John. 

John Larson: Hello and welcome to another edition of the Real Estate Cowboys podcast. This is your host John Larson. This week I want to talk about our time and what our time is worth. I think that’s a very, very important thing for anyone who is successful in business or anyone who’s wealthy. At some point, they had to determine what their time was worth and they had to start cutting out some things that weren’t worth their time, right? So if you read any articles or any information on kind of calculating what your time is worth, you’ll see that in most cases people will have you value your time based on how much you make and how much time you spend working. But for an investor, if your money’s working for you, you’re working 24 hours a day, seven days a week, 365 days a year, okay. And that’s where you want to start calculating what your time is worth, right? 

It’s not just about the time, in my opinion, that you actually spend working. It’s also about the time that you spend not working. It’s also about the time that you spend doing things that don’t generate income. That’s where you start to get a true value on what your time is worth. So the way I simply calculate it as if you make $70,000 a year and you divide that by 365 days a year, and then 24 hours a day, your time at that point is really only worth $8 an hour because you’re only generating $70,000 a year. Now, if you’re an investor and you’re making $50,000 a year passively, right, on top of that $70,000 then I believe that that time that you’re worth goes up. Okay. So I don’t, I don’t think it’s accurate to just base how much you’re worth based on or how much your time is worth based on how much time you spend working. 

I think the goal for all of us is to get, obviously we’re working, right? We’re, I’m a type of person that even when I retire, I’m always going to be working. But I think we need to get to a point where it’s like, how can I work for a certain amount of time, let’s call it 40 hours a week, but then the remaining hours in that week, how is my money working for me? Or what am I doing in those remaining hours to generate more income? For example, I was talking to a gentleman who syndicates money as well, and he said he syndicated $8 million last year that he put into real estate deals. If he went on a job interview, I would say, and not saying that on this job interview he would get paid this, but he should go in with the mindset that his, his time is worth $900 an hour. Why? Because he raised $8 million last year that he put into projects that are potentially going to either pay down the road on maybe an equity syndication or are going to pay right now on a debt syndication. Right. Someone who has a capability of raising $8 million, well, he could go and raise $8 million for someone else. Well at that point, if you divide that 8 million over 365 days a year in 24 hours a day, that puts his value at $900. And that doesn’t mean that someone’s going to pay you $900 an hour. But when you start understanding that training your mentality to believe you’re worth $900 an hour, then you’ll see yourself start making more money, start generating more income because there is a lot of value in someone being able to raise $8 million for someone’s business, someone’s investment business, someone’s investments, whatever it may be. 

So for many people, you have to hit almost, I guess a wall to where you just say, stop. I know I’m worth more than this, right? Or I know my time is worth more than this. And when you start setting your mindset to believe and understand that, that’s when I think that a lot of doors and opportunities open for you because you start thinking in a different manner. If you truly believe you’re only worth $70,000 a year, then that’s how you’re going to act. So I think even for me, I had to get to that point to really truly understand what my value is. And it’s not about being cocky, so to say, or anything like that. But the confidence that you gain from starting to understand what your value is and what’s your time’s worth. It just really, it goes a long way. You know, I used to do a lot of investor tours and things like that where potential buyers would come into our market, see our operation, I would train them, teach them, fill them in on a lot of our processes, our procedures. 

And we wouldn’t charge very much for these tours. I think we would only charge about $500 per person. They would come on the tour and many wouldn’t end up buying and many I wouldn’t see ever again. And I started to realize these tours aren’t really worth my time, my time away from my family, my time away from my daughter. You know? That’s where I stopped doing the tours. Right. So it’s either one, I charge more for the tour for my time, or I just stop doing completely. And you know, I always welcome investors to come into town. If you’re in Dallas, stop by and see us. Stop by and see me meet the team. One of my team members will take you out, show you some properties, show you the projects that we’re currently raising money for or have raised money for that are, you know, kind of going through our renovation process or whatever it may be. 

But to just put on a tour and to do that stuff and commit my whole entire weekend to that, it’s just, I believe I’ve reached a point where my time is more valuable than that. Right. And I want, the reason I’m having this show is because I want my listeners to have the same sort of mindset and I think you can get to that point through investing. I’m not saying a $70,000 a year job is bad. Many people I know make $70,000 a year, $80,000 a year. But what are you doing to generate more income? What are you doing to add more value to your time? Right? That’s why I think investing and investing in real estate specifically is such a powerful tool. Because it gives you the opportunity to increase your wealth, which also, I believe in turn, increases the value of your time. Spending time with people, educating them on how you make more money through real estate and through investing is worth something and you should understand that, right? 

Giving away free knowledge, giving away free insight, Info, insider info on what you’re doing to generate more income is worth money. That’s why consultants make money, right? People that are educated in something that you’re not, we hire them to come in and teach you how to do it. Or we hire consultants to come in and look at our business and identify what’s going wrong or what we could do better. And that’s why consultants charge so much money for their time, right? And all they’re delivering really is just intellect and education. You know, my podcast is free. You don’t have to pay to listen to my podcast, but I believe that I give a lot of valuable information through the podcast and that’s fine because I believe what that does, in turn, is gets my investors, my potential investors to trust and believe in me more, which then, in turn, helps me raise money, which then, in turn, helps me sell investments, um, single family homes, whatever it may be, buy books, so on and so forth. 

So this, in my opinion, this hour that I put into each week to do my podcast is very valuable. It’s very, very much worth my time. Even though I give the podcast for free and information for free, our website is filled with information, blogs, um, market reports, things of that nature. We are willing to give that stuff for free because, in turn, can make an investor or potential investor an investor, a listener into an investor, a book reader, into an investor or a researcher into an investor. Someone who’s shopping just wants to learn, eager to learn. It turns them into an investor. So that’s why I thought it was important that I have this show today because I really want to empower my audience to start sitting down and calculating what their time’s worth and start training your mind into understanding how much you’re worth, right? 

For those of my investors who are out there collecting 10 and a half percent of their money per se on a private lending deal, right? You add that into your net worth, or your other investments that you have that are generating income, right? And that’s why we’ve talked about residual income opportunities on the show as well because I’m trying to empower my listeners to understand all the options that are out there. Passive income, residual income, your day to day work. In your free time, what can you do to go generate more income? And I’m not saying take time away from your family or anything like that because I believe that spending time with your family is one of the most valuable things you can do with your time as well, right? Spending time with your children, coaching your children, basketball, football teams, doing things with your daughter that she loves to do. Those are precious moments that you can’t replace and obviously spending time with your family. You can’t put a value on that. That’s just one of the most important things in all of our lives. I would say, you know, there is, I think we all can all admit that many of us have some downtime where we could then focus on doing some residual income options or researching about more ways to get your money working for you, right? Or carving out some time on the weekend to go look at investment properties that you can in turn purchase, that can then in turn pay you in six ways, right? Not just the cash flow. The six ways that we talk about real estate pays you; tax benefits, hedging against inflation, placing tenants in your property, getting a loan on the property and having the tenants pay your principal and interest payment, calculate all those things when you‘re crunching your numbers on what your time is worth and you’ll see that number continue to go higher and higher and higher; but also going to seminars, listening to people that are smarter than than you or I, talk about what has made them successful. That’s worth your time in my opinion. 

So I was just, I guess what I’m trying to get at is I think we all need to kind of take a look in the mirror and take a step back and think about some of the things that we do that maybe are not worth our time. Some of the people that we associate with or hang out with are they really worth our time, right? I’ve had to remove some people from my life that I feel like weren’t worth my time and I felt like were kind of holding me back or distracting me from staying on the path of generating more passive income, looking for good opportunities for my investors to invest in. That takes a lot of time and that takes a lot of due diligence. Like right now I’m in the process of analyzing about three different deals that we can do for our private lending opportunities. Looking at another land development in Houston, which we just finished up one, it’s under contract to sell right now we are about halfway through that development. It was a 500-lot development in northern Houston. Houston’s experiencing the same type of thing as Dallas from a growth standpoint. Everything seems to be going north, so if you hear about Dallas, I’m sure you’ve heard about Plano and Frisco. Those are all northern cities or cities in the north of Dallas that are just booming. It’s the same thing that’s going on in Houston. The migration is going more north. When you get further south, property tax, things like that go up or insurance goes up because we have hurricanes, we have things like that, right? So same thing is going on in Houston where people aren’t really migrating to the south, they’re migrating into the north. And so that’s where we’re targeting all of our single family land development opportunities. 

And there’s a lot of large national builders there that want to build homes in those areas because they’re middle class neighborhoods, right, where you’re not building super high-end homes, you’re buying the everyday middle class, you know, are building the everyday middle class home, which sells very quickly in these markets like Dallas, San Antonio, Houston. So we already finished a development where I think we finished the first three phases and then the last two phases would still need to be developed. But we had another developer come in and just buy the entire project, the remaining part of the project from us. And so that was a huge success, which makes me feel like I want to go do another one just five miles up the road. There’s other opportunities that I’ve been looking at here in the Dallas area as well. So I spend a lot of time doing that, but that’s worth my time, right? 

That generates income for our business. It generates income for our investors. And so it’s very, very important to me to locate the best deal for myself, for my team and for my investors. And I believe I, I think I found one and we’re working towards locking that down, hopefully here within the next week. We’ll have a new PPM put together. And you know, as I’ve said, these are for accredited investors only because I publicly solicit these opportunities obviously here on the podcast, but we’ll have more details on that coming soon. But back to what I’m saying about time, that is a very important thing for me and that is a very big use of my time. Uh, I’ve worked coming out of college jobs where I made $50,000 a year or whatever, whatever it was. And I always felt like my time was worth more than that. I believe, believe in myself and you need to believe in yourself, too. Right? The number one thing is to start believing that you are worth this, but you’re going to have to make moves that increase your time, your value, the value of your time. Right? 

I mean, think about a guy like Grant Cardone. If he was to just do a one on one with you and train you for the day, I wonder what he would charge for that. I would imagine a lot of money because that time he’s spending with you, he could be doing so many other things. Robert Kiyosaki, you know, I wonder what he charges for one hour of his time to come speak at a seminar. I’m sure it’s a pretty hefty amount because in that one hour he could be doing something else that’s making him money anyway. Right, and that’s the mentality that you need to have and that will help start weeding out people in your life that don’t add value to your life. I guess I would say they don’t motivate you to be better. They don’t, they don’t root for you. They’re not in your corner. 

If there’s those people are in your life, remove them, because they’re always going to hold you back. Starting with belief in yourself and then doing things, putting things in place to start generating more income for you will in turn increase your value, increase the value on your time. So let’s say you’re stepping in for an interview or looking to partner with someone, um, on a project and you know this, this person that you’re looking to partner with is trying to low ball you in terms of what your percentage share would be on the project when it sells off or whatever it may be. When you step into a meeting and have the intent, or you have in your mind what your value is, and then getting into the conversation and negotiation, someone that believes that their time is worth more than the other person sitting across the table is probably going to be the person that’s going to win in this negotiation. Who’s going to win in this kind of game of leverage, right? 

So, essentially if you’re the guy that raised $8 million last year and you’re coming in, sitting at a table with other individuals who have not raised that sort of money in the past year, your mindset should be, well, I’m the strongest person in this, this group. Now there’s other people that are project managers, developers, things like that that might know more about developing. But at the end of the day, the money in most cases is the most important thing because that developer can’t do what he does without the money. So when you sit at the table, you already know, your chest is a little puffed out. You already know that you’re bringing value to the situation and in your mind you believe you’re worth $900 an hour. So that’s the way that you need to handle your negotiations. And you’ll find if you have that mindset that you will end up probably walking out of there with the best deal. 

So, yeah, I just, I was thinking about this last night and I was actually talking to this as an individual, which is why I decided to have this show and talk about this on the show because I really believe that for you to start to be successful and really get on the path towards building wealth, you first and foremost have to identify what your time is worth. All right, so we’re going to take a quick commercial break. When we come back, we’re just gonna wrap this show up, but start thinking about that in your mind. What is my time worth? And then start going home and start writing this stuff out. How much money am I generating from my job? How much money am I generating from my investments? How much, you know, start thinking about some of the people in your life that maybe slow you down or hold you back, and start thinking about maybe distancing yourself from them a little bit more so you can focus more on you and your family and surrounding yourself with other people who believe that their time is worth more. Because when you hang around with other people that believe that the value of their time is high and they’re accepting you into their circle, imagine the type of opportunities that will present themselves by hanging out with others, hanging around others, hanging in that circle that believe that their time is valuable. If they’re spending time with you, then they must believe that your time is worth quite a bit as well, right, to be spending time with you. And you must be an important person in their circle to be giving up their time to spend their time, right. So start thinking about that. But yeah, let’s take a quick commercial break. When we get back, we’ll wrap up this week’s episode of Real Estate Cowboys. Well be right back. 

And welcome back from the commercial break. Hopefully you are sitting there wondering, you know, starting to think, what is my time worth? I need to get out a pen and paper and I need to start kind of analyzing this and I need to increase the value of my time. So the last part we were talking about was just hanging around with different circles of people who also put a high value on their time and the potential opportunities that could arise from hanging out with people like that as opposed to people who don’t have a very high value on their time, who are going to the bars or whatever it may be, and not focusing on how can I generate more income? How can I take myself from here up here? Right? Those are the people that you want to surround yourself with, because I will tell you what, when you hang around with other successful people, it kind of breeds success among the others in the group. When wealthy people and successful people start to trust you and you earn their trust. They can present you with opportunities that you might not have received or had the chance to even look at without hanging in this, this circle. All right? 

And so that’s, that’s pretty much the premise of the show today. I just want to get my listeners kind of thinking about that and thinking about ways that they can increase the value of their time. If you’re interested in any listening to any past episodes, visit RealEstateCowboysDFW.com like I say, I give a lot of good information away for free on our podcast. We have a ton of episodes, we’re in, I think, month 14 of the Real Estate Cowboys, podcast. Gaining more and more popularity. And like I said, I really am excited to do the podcast each week. I really do believe it’s worth the hour that I put into the podcast each week because it really just breeds other investors out there, other people that want to take action, and that’s what I love. 

And so if you’re interested in learning about more passive income opportunities, ways to increase your wealth, ways to increase, you know, your return on time invested, ways to increase, you know, your value of your time. Uh, visit AREIUSA.com visit the RealEstateCowboysDFW.com put your information in, download some of the free reports. Check out the Passive Income Guide. Quick, easy read that, uh, it’s a book that I wrote that just gives you kind of a basic overview of ways to earn passive income in real estate. You know, do your research. Take advantage of all the free education that we, that we give out. If you’re interested in taking action and moving forward on any of our opportunities, becoming a private lender, looking at a single family rental, whatever it may be, maybe a vacation rental, visit those websites, AREIUSA.com and RealEstateCowboysDFW.com. Put your information in. A member of our team will reach out and provide you with more info and more education. And you at that point can decide if you’d like to move forward with anything. But, uh, that’s all the time we have this week. This is your host, John Larson signing off. Always remember, what is your return on life. See you next week. 

Announcer: All opinions expressed by the host of the show are the opinions of American Real Estate Investments LLC and do not reflect the opinions of guests or sponsors. No personal or professional advice on this program should be considered an endorsement to follow a real estate financing or investment strategy. Before acting on any information, seek advice from your financial tax, mortgage or real estate advisor, as the information is not guaranteed and investment strategies have the potential for profit or loss.