How the Law of 33% Can Help Real Estate Investors Scale Higher and Faster

Successful people know about the Law of 33%. 

Whether it’s referred to as the Law of 33% or the 33% Rule, the concept is still the same. In order to be successful at whatever you do, you should surround yourself with people who help you build and maintain that success. And since there are three different groups of people who can help you along this journey, you should intentionally spend 33% of your time with each group. Hence, the Law of 33%. 

This rule can be applied across multiple facets of your life, but for this article I’ll be specifically talking about how the Law of 33% can apply to real estate entrepreneurs. But first, let’s look at why you need to invest in people, and if you need to change the way you think before you can even start implementing the Law of 33%.

People are the lifeblood of all real estate businesses.

As a real estate investor, you can’t get around the fact that you need people. You need sellers, you need buyers, and you need everyone in between in order to make deals happen. People are the lifeblood of every good business. People can make or break your success, and investing your time in the right people can mean everything. Especially if you dream of building a real estate empire! 

“It’s not what you know, it’s who you know.”

Before you roll your eyes, think about it. While this isn’t an absolute statement—since it does require knowledge and action to be successful—it’s still a true statement. This is why you see pictures of crazy rich people partying together on each other’s yachts plastered all over social media.

Do they all happen to love the ocean that much?

Nope! In fact, I’d venture to guess that 33% of them had to take a ton of Dramamine in order to simply attend an event at sea. But it’s worth it because they understand the law of 33%. And they know the importance of surrounding themselves with people smarter and more successful than them.

I don’t know anybody with a yacht. Does that mean that I won’t find success?

It’s not about the yacht. I used that as a figurative example to describe successful people who have built great wealth. Or more simply put, America’s 1%.

According to Economic Policy Institute data, only 1% of families in the United States make a combined annual income over $421,926. That means if you’re in a dual income household, each person would need to make just shy of $211,000 per year to step from away from the 99% and into the 1%. While that level of income’s quite nice, it’s actually not as unreachable as some of us thought it would be. Especially not when you’re in real estate…

So, what keeps 99% of our population from closing this gap?

Is it bad luck or circumstance?

Nope.

The gap is wide, because changing the way we think is harder than making excuses.

The way we think is what keeps that gap wide open. Many of us think in “impossibles.” After all, how many of us thought that the 1% made millions or billions of dollars? If you had to make millions or billions of dollars, that would seem a whole lot more impossible than taking a $100,000 bite out of that gap each year for five years to exceed $421,926. Right?

When the 99% hear the phrase, “It’s not what you know, it’s who you know,” they think differently than the 1%. They think about how they’re not fortunate enough to be connected with “the right people.” They might blame it on their upbringing, where they live, their financial status, or a million other factors that keep most of the population stuck in the 99%.

The truth is that every single person has control over what they do with their time. And spending time investing in forging relationships that are positive, that lift you up, and that push you outside your comfort zone is always possible.

No matter who you know today, or who your family knows, forging new relationships is always possible. You just need to tear down that wall in your mind that says it’s not. And then utilize the Law of 33% to make the most out of who you’re spending time with.

The Law of 33% Simplified for Real Estate Investors.

Smart and successful real estate entrepreneurs grow and scale their empires through connecting with people and investing in the right groups of people. Let’s look at how the Law of 33% applies to our industry below. 

  • Spend 33% of your time with real estate entrepreneurs who are smarter than you. Invest in mentors and coaches with proven track records. Surround yourself with people who are 10-times further ahead than you are. Join Masterminds and networking groups. This will push you outside of your comfort zone, and encourage you to grow and push your boundaries further. This can also provide you with the resources and connections that can assist you along your climb to the top. And perhaps you’ll even befriend a yacht owner if you look hard enough.
  • Spend 33% of your time with your peers and friends who are on or near your same level. Helping each other through the journey and watching each other find success in real estate is incredibly motivating and rewarding. This will keep you pumped up and encouraged.
  • Spend 33% of your time helping others who are not as far along as you are. Giving back is rewarding and it’s what keeps the cycle of learning going. Just as others invested in helping you grow your real estate career, you should return the favor by investing in others as well.

Not sure where to start? Join our RealEstateInvestor.com community. 

Our community at RealEstateInvestor.com is filled with real estate investors at all stages in their careers. Our members get exclusive access to high-list Mastermind groups, and training events where they can network with other members and learn from the industry’s best and brightest. In fact, we’re even hosting a mega event called REIgnyte 2020 that starts Saturday, May 2nd in Tampa, Florida. That’s a great place to meet other real estate professionals!

We believe in investing in our community. And we love providing our community with the tools, systems, and services that real estate entrepreneurs need in order to grow a truly successful business.

Want to hear from our community?

Check out Hannah and Dustin’s story about how they went from 2 deals a year to 23 deals in 7 months! Below is a snippet from their interview with us. It sounds like they learned the Law of 33% early and are well on their way towards becoming a part of the 1%!

We asked: If you could go back to the beginning of your real estate career, what’s one thing you would do differently?

They answered: We would have joined a Mastermind sooner because being around the people who do what you want to do successfully is an amazing thing. It just pushes you.

—Hannah Ritch and Dustin Hoffman from D.L. Hoffman Homes
Successful real estate investors and REIgnyte Managed Members

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