INVESTING AT SCALE There are many benefits of investing at scale. Of course, getting to scale can be a lot of work too. It takes guts, discipline, and a lot of passion to do it yourself. One architect turned entrepreneur summed it up when he realized he was working very hard for a fraction of what he could be doing. He realized he didn’t want to build a million things, and sell each of them once, but instead to build it once, and sell it a million times. It is clearly a lot easier, more efficient and more profitable to do it once, than once for each time you will sell something. There are many applications and ways to apply this in real estate investing today too.
Make A Single Fund Investment Instead of going out and having to learn many investment strategies and evaluate all of the assets yourself, and manage them from beginning to end, you could just invest in a fund instead. In contrast to having to deal with hundreds or properties or mortgage notes to be well diversified and to get the results you want, you could just put your effort into choosing one great real estate related fund. Then let them do all the work, invest in many things for you, and keep on repeating that. You just collect the dividends.
For Fund Managers If you already have a fund of your own, you can apply this principle by choosing to focus on one facet of the business.