Podcast Summary
Impact of Habits on Our Lives: Analyzing deals is a crucial habit for successful real estate investing, leading to better investment decisions
The direction of our lives is influenced by our habits. While there are external factors that can impact outcomes, focusing on habits and choices is the only rational approach to life. In this episode of the Bigger Pockets Podcast, Brandon Turner interviews James Clear, the author of the best-selling book "Atomic Habits." They discuss the importance of habit creation and destruction, the difference between good and bad habits, and how habits impact various areas of life. Brandon also shares his personal experience using habits to build a successful real estate business. A key takeaway from the episode is the importance of building the habit of analyzing deals in real estate investing. By mastering this skill, investors can be more confident in their offers and ultimately make better investment decisions. Tune in to the full episode for more insights on habit formation and their impact on your life and business.
Investing in Real Estate with No Money Down and Using Fintech for Convenience: Discover unexpected talents, invest in real estate with no money down through programs like Rent to Retirement, use fintech companies like Relay for convenient business banking, and streamline processes to focus on what matters.
It's possible to invest in real estate with no money down through programs like Rent to Retirement, which offers discounted new construction properties and low-interest investor loans. Another key takeaway is the convenience of using financial technology companies like Relay for opening business bank accounts for your properties online, eliminating the need for lengthy in-person or phone processes. James Clear's story demonstrates the power of discovering unexpected talents and turning them into successful businesses, as he stumbled upon a passion for writing and building email lists while trying to make it as an entrepreneur. Overall, these tools and insights can help investors and entrepreneurs streamline their processes, save money, and focus on what truly matters in their businesses.
Understanding the Power of Habits: Habits shape up to 50% of our daily actions and influence our identity and outcomes in various areas of life. By focusing on building good habits, we can reshape our sense of self and create positive change.
Habits play a significant role in shaping our lives, and understanding how they work can help us become the architects of our own behaviors rather than their victims. Our brains naturally build habits, and up to 50% of our daily actions are habitual. These habits not only influence small, automatic behaviors like brushing our teeth, but also set the context for our conscious decisions. The true impact of habits may be even larger than 50%, as they shape our day in numerous ways. By focusing on building good habits, we can influence our outcomes in various areas of life, including health, wealth, and personal growth. The more we repeat a behavior, the more it reinforces the identity associated with that behavior. Habits can help us reshape our sense of self and give us a new story about who we are. Therefore, it's essential to understand the power of habits and learn how to harness their potential to create positive change in our lives.
Identity-based habits: Becoming the person you want to be: Focusing on the identity you wish to embody and the habits that come with it can make habit formation less daunting and more exciting.
True behavior change is about identity change. It's not just about doing a certain action, but rather embodying a particular identity through consistent habits. Every action you take is a vote for the type of person you wish to become. For example, running a marathon is not the goal, but becoming a runner is. The more you perform the habits associated with that identity, the more you believe in that story about yourself. This approach is different from "fake it till you make it" because it encourages behavior to lead the way, rather than encouraging a belief without evidence. Habits can be thought of as the code that our lives run on, and they can either make our goals easier or harder to achieve. The craving part of a habit is the programming part, and it's largely about the meaning we assign to things. By focusing on the identity we want to embody and the habits that come with it, we can build a solid belief in that story about ourselves. This perspective on habits can make the idea of building new habits less daunting and more exciting.
Understanding the Power of Habits: To make good habits stick and break bad ones, bring the consequences of bad habits into the immediate moment and the rewards of good habits as well.
Our brains are constantly predicting and shaping our actions based on the associations and programming we've learned throughout our lives. These predictions determine our habits and behaviors, which can have both immediate and ultimate outcomes. While bad habits often have favorable immediate outcomes, good habits may not. To make good habits stick and break bad ones, it's essential to find ways to bring the consequences of bad habits into the immediate moment and the rewards of good habits as well. This helps reinforce the desired identity and makes the habit more enjoyable and sustainable in the long run.
Optimizing for Long-Term Goals vs. Short-Term Dopamine Hits: Consistent practice and persistence are key to developing habits, but delaying gratification and focusing on long-term goals often lead to better outcomes.
Understanding what you're optimizing for in business is crucial for making choices that align with your long-term goals, rather than just chasing immediate dopamine hits. The speaker shares an analogy of listing agreements in real estate, where getting a dopamine hit from securing a listing can make it hard to delegate tasks and build a team, even if it's better for business growth. The conversation then shifts to the importance of knowing what you're optimizing for in a broader sense. There's no definitive number of days it takes to develop a habit, but consistent practice and persistence are key. The speaker emphasizes that delaying gratification and focusing on long-term goals are usually the better choices, but the specifics depend on individual priorities.
Myth of quick habit formation: Building habits takes consistent practice and a shift in identity, not just 21 or 30 days.
Building a habit is a lifelong process, not a finish line to be crossed. The length of time it takes to build a habit can vary greatly depending on the difficulty of the habit and the social context in which it is being formed. The idea that it takes only 21 or 30 days to build a habit is a myth. Habits require consistent practice and a shift in identity to truly stick. The speaker's experience with the 75 hard program illustrates this point. Even after completing the program, he found that he couldn't sustain the habit without making it part of his identity. Challenges and frameworks can be helpful in initiating new habits, but it's essential to have a willingness to experiment and adapt them to fit your unique situation. Ultimately, the key to building a habit is to view it as a lifestyle change, not a short-term goal.
Taking Action is Crucial for Learning and Achieving Success: Learning comes from doing, experimenting, and practicing. Overcome self-doubt by finding inspiration in others' success stories.
While having knowledge is important, taking action is crucial for learning and achieving success. Combining a willingness to experiment with the application of that knowledge leads to the best outcomes. Challenges can be helpful in getting started, but the real learning comes from doing the work. The fastest way to learn is by taking action and building skills through practice. Success stories often come from individuals who just jumped in and figured things out along the way. To overcome self-doubt, find inspiration in the success of others who may not appear to have it all together. Remember, people are often their own biggest obstacle, and planning and preparation should enhance, not substitute for, taking action.
Investing in Real Estate Passively: Explore passive investment opportunities like Pine Financial Group's mortgage fund for a targeted 8% return, consider 10/31 exchanges for tax deferral, and use PropStream for off-market deals
There are various ways to invest in real estate without handling the day-to-day responsibilities. Pine Financial Group offers a passive investment opportunity through their mortgage fund, providing a targeted 8% preferred return and contributing to community revitalization. For those looking to grow their real estate portfolio while deferring capital gains taxes, 10/31 exchanges with First American Exchange Company can be a smart move. Lastly, to find off-market deals as inventory levels decrease, consider using PropStream, the leading real estate data provider. To eliminate bad habits, make the cues less obvious or the actions more difficult, such as unsubscribing from emails or hiding tempting items out of sight.
Designing our environment to add friction to unwanted habits: Creating an environment with barriers to unwanted habits can help reduce their occurrence. This can be achieved by removing temptations or increasing effort required to engage in the behavior.
Designing our environment to add friction to unwanted habits or behaviors can be an effective way to reduce their occurrence. This can be achieved by removing the temptation entirely, such as not keeping junk food in the house, or by increasing the effort required to engage in the behavior, like turning off social media notifications or deleting apps from your phone. Small changes, like making your phone black and white or using a kitchen safe to lock away unhealthy snacks, can make a big difference in helping us curb unwanted habits. These solutions may not be long-term, but they can be helpful steps towards achieving our desired outcomes. Another example given was the speaker's personal experience of breaking a daily habit of drinking peppermint hot chocolate from Starbucks by becoming aware of the high sugar content. This realization led to an immediate change in behavior, demonstrating the power of environmental design in shaping our habits.
Media shapes our mindset and meanings: Be mindful of the information we consume as it can influence our thoughts, emotions, and future actions. We have the power to choose the information that enters our minds.
The media and information we consume have a significant impact on our mindset and the meanings we assign to things. This can be seen in simple examples like changing our perspective on food, or more complex ones like adopting new habits or beliefs. The books we read, the documentaries we watch, and even the people we follow on social media shape our thoughts, emotions, and future actions. It's crucial to be mindful of the information flows we create for ourselves, as they can influence us in ways we might not realize. The ability to change the cue, or the information we expose ourselves to, can help us build desirable habits or break unwanted ones. This idea of media shaping our mindset is a powerful one, and it's important to remember that we have the power to choose the information that enters our minds.
Environment shapes self-control: Designing our environment to remove temptations and make good choices convenient can improve self-control and discipline.
Our environment significantly influences our ability to exercise self-control. The choices we make become easier when they're the most convenient or accessible options. Over time, our environment can even overpower our willpower, making it difficult to resist temptations. This concept can be applied to various aspects of life, including diet and exercise. By designing our environment to remove temptations and make better choices more convenient, we can improve our self-control and discipline. For instance, committing to a fitness routine can make it easier to maintain a healthy diet and avoid unhealthy snacks. Similarly, removing junk food from the house can help prevent unhealthy eating habits. The idea is that if we don't face the temptation, we don't have to worry about resisting it. Additionally, having a clear goal or commitment can make it easier to make better choices, as we have "skin in the game" and are more motivated to stick to our plans.
Daily habits and systems matter for achieving goals: Focusing on daily habits and systems can help align actions with goals, reducing challenges and simplifying decision making.
While having clear goals is important, it's not the only factor in achieving success. The systems and habits we follow each day play a significant role in determining our outcomes. By focusing on shaping our environment to support our goals and developing consistent habits, we can make decisions that align with our priorities and reduce the challenges we face. Olympic athletes, for instance, have the same goal of winning, but only one achieves it. The difference lies in their daily habits and systems. Similarly, for those struggling with saving, having a clear goal can make it easier to resist immediate pleasures and focus on long-term gratification. Ultimately, the more we prioritize and optimize our daily habits, the more our actions naturally align with our goals, making the choices we need to make simpler and more straightforward.
Breaking down big goals into manageable steps: To achieve success, envision your ideal outcome, break it down into smaller steps, and consistently work towards them using effective habits and systems. Don't get too fixated on one specific goal or approach, and focus on making progress rather than dwelling on setbacks.
While having clear goals is important for direction and focus, the real key to success lies in consistently working towards them through effective habits and systems. The speaker emphasizes the importance of envisioning the ideal outcome (Z) and then breaking it down into manageable steps (B), while being honest about the current situation (A). The focus should be on making progress from A to B, rather than getting bogged down in why things aren't happening as planned. The speaker also emphasizes the importance of having multiple pathways to success and not becoming too fixated on one specific goal or approach. The use of habits and systems can help ensure consistent progress towards goals, and the speaker's real estate investment example illustrates how this approach can lead to unexpected success. Overall, the message is to maintain a balance between action and thoughtfulness, and to focus on the process of making progress towards goals rather than getting stuck in the past or future.
Clarifying goals and aligning habits: Optimize for clear goals, ensure habits align, position ideas effectively, and tap into consumer desires for success.
Key takeaway from the interview is the importance of clarifying what you're optimizing for in life and ensuring your habits align with your goals. The guest emphasized this concept and encouraged listeners to consider it when making decisions. Additionally, the guest discussed the significance of positioning and packaging ideas or products effectively to tap into existing desires and make them appealing to consumers. The interview also touched on the guest's personal habits, hobbies, and recommendations for food in Columbus, Ohio. Overall, the conversation highlighted valuable insights into personal development, business strategy, and the importance of positioning for success.
Choosing an activity that brings joy leads to long-term commitment and success: Finding enjoyment in an activity is crucial for long-term commitment and success in entrepreneurship. Self-awareness and trusting oneself to navigate challenges are also important.
Finding enjoyment and fun in an activity is crucial for long-term commitment and success. The speaker shares her personal experiences with jiu-jitsu and weightlifting, highlighting how her love for jiu-jitsu keeps her engaged, while her dislike for weightlifting causes her to stop after a month. She emphasizes that everyone should choose a habit or activity that brings them joy, as it often leads to better skills, improved performance, and a positive feedback loop. Additionally, she stresses the importance of self-awareness and trusting oneself to figure things out as one embarks on the entrepreneurial journey. Entrepreneurship is a personal growth engine, forcing individuals to confront their flaws and fears, and trusting oneself to navigate the unknown is key to overcoming challenges and achieving success.
Adopting a problem-solving mindset: Focus on positive aspects, tackle issues as they arise, and trust yourself to figure things out for increased chances of success.
Our mindset plays a crucial role in our ability to overcome challenges and achieve success. Problem solvers focus on the positive aspects of a situation and tackle issues as they arise, while problem adders anticipate potential problems and create unnecessary complications. To increase your chances of success, it's essential to adopt a problem-solving mindset and trust yourself to figure things out along the way. For more insights on habits and productivity, check out James Clear's book "Atomic Habits" and sign up for his weekly newsletter, 321. Remember, it's not about timing the market perfectly, but rather focusing on time in the market and taking consistent action towards your financial goals.
