The Most Overlooked Factor in Real Estate Investing
It’s not just the property
There’s one thing I wish more investors understood: real estate investing isn’t just about the asset—it’s about the operator.
When people evaluate passive deals, they zero in on the building itself. They analyze the location, the projected returns, the asset class. All of that is important—but it’s not what makes or breaks your investment.
Because at the end of the day, you're not just betting on a building. You're betting on the team behind it.
Why the Operator Matters More Than the Deal
A great operator can take a mediocre deal and make it thrive. They know how to manage risk, optimize operations, and adapt to changing conditions.
On the flip side? A bad operator can take a fantastic property—and run it straight into the ground. Even the best numbers won’t save an investment that’s poorly managed.
That’s why due diligence should go beyond spreadsheets. The returns you see on paper are only as real as the people responsible for achieving them.
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What You Should Be Asking
Before you write a check, ask yourself these questions:
Do they have a proven track record across different market cycles? Experience in a hot market is one thing—resilience during downturns is another.
Are they transparent in how they communicate and report? Consistent, honest updates build trust—especially when the market gets rocky.
Can they lead with clarity when things don’t go as planned? The best operators are cool-headed, decisive, and agile when it matters most.
If you don’t like the answers, trust your gut. The deal might look great on paper, but it’s the operator who delivers (or doesn’t).
Too many investors get dazzled by spreadsheets and overlook red flags. They chase returns without checking the reliability of the people running the show.
If you want long-term wealth, focus less on the property and more on the people. Because great operators drive great outcomes.
Before your next investment, take a step back and zoom out.
Look at the team, the track record, the temperament.
Until next time,
Jon
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