General Principle

Stack Micro-Wins to create large-scale victories.

The Micro-Wins Mindset

The Micro-Wins Mindset is about deriving joy and a sense of accomplishment from each small win on the journey to your end goal. It’s about allowing yourself to feel fulfilled throughout the process, not only upon arrival.

Why do we often wait for something to arrive, or some achievement to be tallied in our lives before we allow ourselves to feel successful? Especially when it comes to finances, society has trained us to delay satisfaction until the “right” set of circumstances or the “right” time arrives. But we challenge this notion.

What constitutes a Micro-Win, you ask? It’s any achievement, no matter how small, that you can build on to progress to the next one.

Reflect for a moment: have you ever savored the small victories en route to your broader objectives? Can you recall instances when celebrating a minor accomplishment fueled your drive to tackle the next task?

Kevin here. I’ve been playing the role of soccer coach to my son’s team for the past four or five years. If you’ve ever seen the Apple TV series “Ted Lasso,” you’d find striking similarities between the cheerfully inept Ted and me. I just have a far less impressive mustache, but my celebratory running man dance moves are spot-on. Also, just like him, I have relatively little understanding of what constitutes winning soccer. Still, I willingly put on my coaching hat each year, not for the love of the sport, but to spend quality time with my son.

Now, while I barely know a cross from a corner kick, I’ve got a strong handle on life’s valuable lessons: success, perseverance, and the all-important ability to motivate. Luckily for me, these have come in handy on the soccer field, or “the pitch,” as the soccer buffs call it.

There are two instances that stand out in my memory as shining examples of the Micro-Wins Mindset in action. The first happened after a lopsided losing outing by our little team. As I looked around, I saw more tears than faces. The boys felt crushed, as if they’d committed some monumental error. But this is where I saw an opportunity for a Micro-Win.

Gathering my dejected troops, I turned the tide of the conversation. I began to acknowledge each player individually, spotlighting what they had done well in the game and getting the rest of the team to nod along and confirm the individual successes. For each sullen face, I recounted a tale of a good pass, a brave stop, or some fantastic teamwork. The tears dried up, replaced by shy smiles as they started to see their efforts in a different light. That day, I reminded them that scores fade, but the taste of small victories should linger.

In the second instance, the Micro-Wins Mindset was beautifully demonstrated by the boys themselves. We were again in a rough match, and our poor goalie was having a hard day, with balls zipping past him like small, checkered comets. Some of the boys began to loudly voice their disappointment with him. However, in this moment of juvenile criticism, two players—one of them my son—rushed to the goalie’s defense. They reminded the team about his courage to stand in that position for the first time and praised his valiant efforts. They started pointing out our little goalie’s Micro-Wins right there in the middle of the game. Their words had a profound effect, instantly changing the team’s dynamics. The naysayers fell silent, and the positive energy bounced back. After that, put-downs were banned for the remainder of the season (unless it was a funny comment about my male pattern baldness.)

These examples might seem minor, but that’s the beauty of Micro-Wins—they’re small yet incredibly powerful. They may not make headlines, but in the grand scheme of things, especially in the community of the boys’ U10 soccer league, they can shift perspectives and shape futures. Through these experiences, my young players have not only become better at their game, but they’ve also become better human beings, embracing the transformational power of the Micro-Wins Mindset.

The Moneyball Approach: An Unorthodox Road to Success

Let’s throw a curveball here and talk about a concept that played a pivotal role in shaping the Micro-Wins Mindset. Its origins stem from the world of baseball, as chronicled in the movie Moneyball, an Academy Award-winning film inspired by Michael Lewis’s 2003 bestseller, Moneyball: The Art of Winning an Unfair Game. While we shamelessly admit that we watched the movie before we read the book, we soon sought out the written account (even dusted off our old library cards!). We can now enthusiastically recommend both the cinematic and literary versions of this compelling story.

Moneyball spins a captivating tale of the charismatic former pro player, Billy Beane, who, as the general manager of the Oakland Athletics (A’s), revolutionized the game with an ingenious recruiting strategy. In 2001, he stood up to the challenge of making the cash-strapped A’s compete against the big league’s giants, such as the New York Yankees. With a colossal budget of about $125 million, the Yankees were a Goliath to the A’s, who had a comparatively paltry $44 million to spare.

Beane, however, was not one to back down. He introduced a fresh, revolutionary approach to player recruitment. His strategy involved ditching the age-old, subjective judgments of traditional scouts for a more analytical, data-driven approach to team building. Faced with budget constraints, the A’s couldn’t afford the “rock stars” of the sport. Instead, they turned their attention toward statistically robust players who flew under the radar; those who didn’t necessarily hit the most home runs but had consistently high on-base percentages and batting efficiency numbers. These players were the unsung heroes, often overlooked, and thus, surprisingly affordable.

In adopting this against-the-grain, “get on base” mentality, the A’s crafted victory with fewer risks and a far smaller budget. It seemed like a game of David versus Goliath, but the A’s knew how to sling their stones. They ended the year triumphantly as divisional champions and set an unprecedented record for the longest consecutive win streak in Major League history.

While they fell short of their ultimate aspiration—winning the World Series—it’s safe to say their impact was far greater. The 2001 season became a landmark in baseball history because the A’s broke the mold and reshaped the entire strategy of building a baseball team and winning games. They took the sport by storm, leveraging what they had, rather than lamenting what they didn’t. They innovated and acted where they could rather than obsessing over what they couldn’t control.

The Moneyball approach is an embodiment of the Micro-Wins Mindset. It’s about amassing a series of small victories, building momentum, and slowly but surely inching toward more significant outcomes. It champions the power of focusing on existing achievements, leveraging them as a springboard to the next victory, propelling you toward your larger goals. It’s about “getting on base,” more than it is about “knocking it out of the park.”

Through this lens, progress isn’t just about moving forward; it’s about adding points to the scoreboard of success. Stay consistent, and soon enough, you’ll find that you’re not just participating; you’re dictating the game and, ultimately, basking in the joy of winning.

Stop Swinging for the Fences

Expanding on our Moneyball metaphor, let’s consider this: the Micro-Wins Mindset is about focusing on on-base percentages rather than only home runs. Rather than constantly swinging for the fences, hoping against hope to hit that elusive ball out of the park, what if the true key to success was consistently hitting singles? These are the achievable, realistic goals that you can accomplish right now.

After all, a home run is impressive, but if you’re not winning the game, what’s it worth in the grand scheme of things? Would you rather relish in numerous, perhaps less flashy, wins or hold on to that single spectacular highlight from a losing season?

Let’s be clear: we absolutely advocate for celebrating the small victories, regardless of the broader circumstances.

Let’s wind the clock back to my (Kevin’s) sophomore year in high school. Picture a lackluster JV basketball team, our Arroyo Dons, not exactly the Golden State Warriors. Our record that year was a series of blowout losses, each loss leaving an emotional mark on our collective spirit.

My personal history with basketball had been a steady journey of underachievement. My earliest triumph was back in fifth grade when I was awarded the Most Valuable Player award. Yes, that was the zenith, the peak of my basketball journey. The rest of the trek had been a slow and steady descent. But on one fateful evening in 1995, a little spark of magic danced back into my life.

Picture this: it was an away game at Hayward High School, and the Hayward Farmers had us on the ropes. The Farmers weren’t just good; they were like a basketball factory, churning out hoopers like it was their business. Among them was a future NBA champion with the Boston Celtics. Our ragtag team, in comparison, felt like a band of misfits.

There we were, down by over twenty points, with the game clock ticking down the final seconds of the fourth quarter. The Farmers scored another basket, punctuating our impending defeat. Yet, as the ball swished through the net, our center quickly retrieved the ball and tossed it my way.

Instantly, I was swarmed by two defenders.

I glanced at the game clock. Three … two … As the last few seconds were being mercilessly shaved off, I found myself near the free-throw line at the opposite end of the court. It was now or never. Pushing off my left foot, I launched into a leaping, baseball-style throw, hurling the ball toward our distant hoop.

Time seemed to elongate as the ball traced a high arc, cutting through the tense silence that had swallowed the gym. The buzzer blared, signifying the end of the game. But before the echoes of the buzzer had faded, a sweet, crisp “thunk, swoosh” reverberated throughout the gym.

My long-distance Hail Mary had found its mark and banked in.

The reaction was electric. Our team, the spectators, even a few bewildered Farmers, erupted into cheers as if we’d snatched a championship win from the jaws of defeat. But the cold reality was that we had still lost by more than twenty points.

Looking back, I cherish that memory, that tiny diamond of success amidst the rubble of a disastrous season. But as intoxicating as that moment was, as much as it temporarily ignited our spirit, I must confess—I would have given it all up for a winning season.

The thrill of my long-distance miracle shot pales in comparison to what a series of consistent, “boring” successful shots could have meant for our team. After all, it’s the steady rhythm of hitting the mark, game after game, that builds a winning team. An unexpected three-quarters court shot may get the crowd roaring, but it’s the steady grind of disciplined practice, effective teamwork, and reliable performance that wins the season.

In the grand scheme of things, no matter how much we romanticize those unexpected, spectacular moments, the truth remains—boring wins beat blaze-of-glory losses every time. Just as in basketball, so it is in life, and certainly, in real estate investing.

Given a choice, we’d pick a sequence of unspectacular Micro-Wins over a solitary buzzer beater every time. Yet, it seems like we stand alone in this belief. Most self-help gurus and real estate experts prefer catchy, inspirational phrases such as:

● “Swing for the fences.”

● “Ten X your results, ten X your life.”

● “Go big or go home.”

● “You miss 100% of the shots you don’t take.”

And the list goes on.

We won’t deny that such mantras can be motivational and have their place. But we also believe that these often-repeated themes have led many hardworking individuals astray, costing them significant sums in failed attempts at overnight success. Yes, there are a select few who have “swung for the fences,” connected, and done remarkably well. But are they the norm, or are they the exceptions that prove the rule? In our experience, they are decidedly the latter.

Something we heard recently from Alex Hormozi, a highly successful entrepreneur, author, and business consultant resonates. “An obsession with getting rich quick will likely ensure it never happens. People try shortcuts for a decade, until they realize they should have picked a strategy and stuck with it for a decade. If you do that, success is inevitable.”

Babe Ruth’s Legacy: A Misguided Metaphor?

This is Steve speaking. I once had a giant poster of Babe Ruth in my office, symbolic of my admiration for the “swing for the fences” philosophy. I’d always loved the idea of hitting a business grand slam. I remember reading the seminal business book by Jim Collins, Good To Great, and often visualizing the mega mansion that would be mine upon taking a company public. My grand ambitions distorted my approach to business—I was sinking more and more money into ventures, plunging deeper into a financial abyss, all under the misguided belief that an eventual home run would offset the losses.

Everything changed in 2017 when I came to appreciate the power of Micro-Wins. Recognizing the cumulative potential of small achievements, each leading to the next, revolutionized our business operations, from the services we offered to our marketing strategy. Kevin and I became ardent proponents—and beneficiaries—of the Micro-Wins Mindset.

In the realm of real estate investing, however, the lure of the home run is strong. Investors attempt to smash the ball out of the park, staking their all on high-risk real estate investments, hoping for a stroke of luck. It’s a game of no-money-down deals, rapid property flips using private capital, all aiming to make a hefty profit at once. But it’s a precarious game—if they can’t sell fast or for enough, they can’t repay the borrowed capital, let alone turn a profit.

Real estate gurus often draw on Babe Ruth’s story, urging you to swing for the fences and risk it all. They recount how Babe led the league in home runs, always swinging for the fences. They always seem to mention that he also led in strikeouts, a fact they leverage to claim that losses are inevitable, but an occasional home run is worth the risk.

There’s a significant missing piece in these narratives: what did Babe Ruth really risk when he swung for the fences each time? If he struck out, what were the repercussions? Virtually none—he’d get another chance in the next inning. His risk was marginal compared to the high stakes of real estate investing.

Many of our clients invest substantial portions of their career savings to get into real estate. They may only get one shot at financial transformation through investing, so they risk the capital they’ve worked hard to accumulate, and for them, striking out carries profound implications.

Kevin here. Let me share a personal story where I swung for the fences and struck out spectacularly. This blunder kept me financially benched for nearly a decade.

In the wake of the 2008 housing market crash, a friend enticed me with an opportunity to buy twenty free-and-clear properties for $150,000. I thought I’d hit the jackpot, imagining selling each one for $20,000. Alongside partners and family, we pooled resources to secure the deal.

It turned out to be a sham. Some properties were real but in such disrepair that selling them would mean a loss. One of the “properties” wasn’t even a legitimate address! Of the initial $150,000, we recouped a meager $20,000. The rest vanished, a casualty of the fraud prevalent in the real estate market at the time.

Consider this: how many people can bounce back after losing over $150,000 in a single investment? That’s a game over for most.

This cautionary tale extends beyond real estate. It’s a reality in various walks of life. Many individuals, with finite resources, get just one shot at their dream. A strikeout can knock them out of the game permanently. Should they really be encouraged to swing for the fences?

Yes, Babe Ruth held the record for home runs, but he also topped the charts in strikeouts. Can you afford to follow in his footsteps?

We certainly can’t, and we suspect you can’t either.

The Journey to Success is a Marathon, Not a Sprint

Don’t get us wrong here. We are not encouraging you to discard your ambitions and drift aimlessly through life without taking your shots. Far from it, in fact. The principle of focusing on singles doesn’t advocate for the pursuit of random tasks or lifestyles without goals or ambition. Singles build upon one another. Consider baseball; it takes four singles to reach home plate and score a run. Each small win, or Micro-Win, leads to a significant achievement.

The old adage, “Shoot for the moon. Even if you miss, you’ll land among the stars,” rings true here. No one can achieve success in every endeavor but leveraging short-term Micro-Wins to propel you toward a long-term goal (like retirement, for instance) will bring you much closer to that goal than if you hadn’t.

Steve here. Let me paint you a picture from my high school years in Canada. You know how in Canada we’re renowned for our love of hockey, right? Well, there I was, defying all Canadian norms. Instead of dreaming about slapshots, I was dreaming about slam dunks. At a whopping five feet tall, you’d have been forgiven for thinking I had better luck chasing a moose than trying to touch the rim of a basketball hoop. But basketball was my maple candy, and I was on a mission. Not just any mission, but a lofty one—touching that elusive rim.

Now, to improve my vertical leap, I had a secret weapon: ankle weights. I would wear them under my jeans as I wandered the halls and went about my daily tasks. That’s right; every day, I was secretly bulking up, turning every step on campus into a mini workout. After school and basketball practice, I’d throw in some vigorous jumping exercises, pushing my muscles to the limit. You could say each of these exercises was like a Micro-Win in my journey. And wouldn’t you know it, over time, those Micro-Wins stacked up! Not only did I touch the rim, but I went full Canadian underdog and dunked … a tennis ball. Hey, we’ve got to start somewhere, eh?

Part of embracing the Micro-Wins Mindset involves understanding the requirements of your journey to the ultimate goal. Obstacles will arise, but preparedness to overcome them is key.

The magnitude of life’s challenges correlates with the greatness of our ambitions. By dissecting our goals into manageable parts, even the most formidable challenges seem less intimidating. Concentrating on the immediate hurdles, instead of being overwhelmed by potential future obstacles, protects us from the false belief that anything less than perfection is failure. As we progress and accumulate Micro-Wins, our past triumphs shine brightly in hindsight.

This mindset can be applied to all aspects of life. Consider building a solid relationship. Challenges will arise, and each surmounted difficulty strengthens your bond. Celebrate these victories, express gratitude for the person in your life, and prepare for the next inevitable challenge. The process of celebrating Micro-Wins prepares you for future obstacles and strengthens your relationship.

The act of getting off the bench and into the game—whatever your game may be—is a victory in itself, and it should be celebrated. Further victories like making a hit and reaching base should also be celebrated.

No matter your ultimate goal—whether it’s income replacement, real estate investment, or overall life satisfaction—accumulating Micro-Wins keeps you motivated on your journey toward your goals, overcoming challenges as they arise.

As you embark or continue on your journey to mastering Micro-Wins, particularly in real estate investment, it’s crucial to self-reflect and understand your current standing. To effectively apply the strategies discussed in this book, you need to recognize your present situation and what could be preventing you from participating actively. It’s time to step off the bench and take charge of your financial success. This requires self-awareness, reflection, and an honest evaluation of your current habits, beliefs, and tendencies concerning wealth creation.

Next, we will transition to our first real estate-based discussion of the book and show you how to apply the Micro-Wins Mindset in a financial context. To start things off, we delve into five different investor types common in real estate and life. Identifying your investor type will help you understand what might be preventing you from taking action and tailor the remainder of this book to your needs. Remember, you might not currently align with the investor type that best allows you to achieve your goals with minimal stress and risk but worry not! The rest of the book will guide you toward evolving into that ideal investor type. So, let’s meet these investor types and help you discover the key to unlocking your full potential in real estate investing.

Real Estate Implementation

Moneyball Real Estate is the strategy whereby you invest in simple and conservative single-family investment properties, hitting real estate singles, instead of trying to financially swing for the fences.

Get Off The Financial Bench: Understand Your Investor Type

As we make our first transition of the book from general principle to the real estate and financial application of that principle, it’s important you can self-identify. Sometimes acknowledging your strengths and weaknesses and getting honest with yourself about who you are and how you view the world, can provide clues and keys to unlocking your future.

Let’s look at the characteristics and tendencies of five distinct investor types. By understanding these personas, you can identify your current approach to real estate investing and ascertain the adjustments required to optimize your success. Keep in mind that your goal is to embody the ideal investor type, one that enables you to achieve your objectives with minimal stress and risk.

A spoiler alert here … your aim is to become the 5th type!

Now, let’s introduce the first investor type—The Preparing to Prepare Investor.

The Preparing to Prepare Investor

Many people see themselves as “lifelong learners,” always eager to take new courses, attend workshops, and acquire as much knowledge as they can. While learning and preparation are essential, they can become counterproductive when they don’t lead to action.

Consider this analogy: suppose you aspire to play the guitar. You might watch every “how to play guitar” video on YouTube, buy instructional books, enroll in Udemy courses, and purchase guitar tab charts and songbooks. Yet, if you never actually pick up a guitar and put your knowledge into practice, you’re not truly playing the guitar; you’re just stuck in the cycle of learning about playing the guitar.

The same concept applies to real estate investing. If your goal is to earn passive income and enjoy the freedom and security that come with conservative, principled real estate investments, you must take action at some point. It’s not enough to perpetually learn how to take action. The most significant return on your investment comes from a balance of learning and doing! Resolve now to read this book, then act; not just to read this book, then think.

The Short Game Investor

Short game investors can certainly amass wealth, but often at the cost of missing out on the passive benefits that come with principled real estate investing. Drawn like moths to the flame of the latest trends, they chase after what’s currently hot in the market, be it home flipping or wholesaling.

This mindset mirrors the behavior of the eternal network marketer, perpetually attracted to the newest, most dazzling opportunity. Think of those acquaintances who hop from one multi-level marketing venture to the next, endlessly peddling an eclectic range of products, from rare superfruits found on the slopes of the Himalayas to the most recent innovations in beauty. Instead of committing to one brand or company, they flutter between opportunities, with their eyes on immediate profits rather than long-term potential.

Short game investors often fall victim to the same distractions. Today, they might be pouring all their capital into setting up an Airbnb after an inspiring podcast on vacation rentals. A few months down the line, a best-selling book on the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method might send them rushing back to the bank for another investment loan. Then, after a weekend binge on home makeover TV shows, they’re suddenly pooling money from friends and family to flip a house.

Imagine the exhausting process: diving into a rehab, deciding on finishes, being blindsided by plumbing issues, suffering an AC malfunction in the sweltering heat of summer, only to discover that the property’s wiring is a fire hazard flagged by an inspector. After pouring in an unplanned $40,000 to set things right, you then have to enter the competitive market to find a buyer. Once the dust settles and the ink dries, you’re left with a meager profit and the daunting realization that you have to begin this grueling process all over again.

This short game strategy, while occasionally lucrative, demands unrelenting hustle. It’s ridden with elevated risks and inevitable stress. It’s a far cry from the freedom and tranquility most associate with real estate investing.

At DFY (Done For You Real Estate), our philosophy is distinct. We champion the virtues of the long game through principled Moneyball Real Estate Investing. Our approach emphasizes passive income, profit, freedom, and a significantly reduced stress footprint.

The Emotional Investor

Investing time or money into something that sparks your dreams and desires isn’t inherently flawed. However, when you bypass sound principles and thorough research, emotional investing can become a risky venture.

Suppose you’re sitting at home, watching a woodworking show. As you marvel at the craftsmanship and the wonderful pieces the expert woodworkers are creating, you start dreaming about making rocking chairs, tables, benches, banisters, and sculptures of your own. You imagine your children, decades into the future, sitting on a chair that you crafted, cuddling their own grandchildren. Overwhelmed by the heartwarming image, you decide to take up woodworking. You invest thousands in equipment and remodel your garage into a studio. But the work is tougher than anticipated, and the time commitment to hone your skills is unfeasible. Before long, the emotions dissipate, and your expensive venture fails to materialize.

This analogy is applicable to real estate, as well. When you make an investment based on raw emotion, bypassing sound principles and thorough research, it can easily transform into a perilous endeavor. The heart often convinces the mind that the immediate appeal of an idea overshadows any potential pitfalls.

Imagine you’re out for a weekend drive, soaking in the sights and sounds of a neighborhood, when a real estate venture suddenly springs to mind. The first house you pass has a “For Sale By Owner” sign. The idea of becoming a real estate mogul flashes before your eyes. You recall those TV shows and investment courses that made it all seem so easy—just make an all-cash offer and you’re set, right? Without hesitation, you pull over, your excitement surging. You then remember a recent YouTube video you watched where the flashy, ripped, well-dressed “real estate expert” told you that “procrastination is the enemy of achievement.” Before you’ve even worked out any logistics or done any market research, you find yourself knocking on the door, ready to put in an offer. You’re fueled purely by the exhilaration of the moment.

But real estate is rarely as simple as it appears on TV. As the emotions wear off, you’re left with an investment that doesn’t bear fruit, and in a moment of panic, you might decide to sell. But instead of a strategic move, it’s a reaction to the immediate challenge. The essence of this scenario emphasizes the dangers of letting emotions guide substantial decisions without the backing of research and sound advice.

The Someday Investor

The “someday” sentiment is a common one. The Someday Investor is often characterized by their steadfast commitment to the future while neglecting the present. These are typically diligent souls, clocking in the required hours at well-paying jobs and stashing away funds for a hazy “someday.” They’re champions of stability, consistency, and security. While they have an acute understanding of saving for tomorrow, they often forget to relish today. Their vision is so fixed on the horizon that they overlook the milestones they pass.

Take, for instance, a client of ours, a shining example of a Someday Investor. He was a prosperous businessman, having worked relentlessly to save money and delve into real estate. He worked with our teams, acquiring numerous properties and, in the process, amassing a wealth surpassing a million dollars through his real estate ventures. However, what stood out was his reluctance to revel in his victories.

For years, he harbored a dream, fueled by his profound Christian faith, to embark on a dream trip to the Holy Land in Israel, to tread where Jesus once did. Despite his incredible achievements spanning almost a decade—of buying, selling, reinvesting, and gradually expanding his real estate portfolio—he kept postponing this “someday” vacation. It was only after persistent urging that he finally rewarded himself. Accompanied by his family, he embarked on that transformative journey to the Holy Land, and the experience proved to be nothing short of life altering.[KC8]

Rather than savoring their incremental achievements, these investors continue their forward gaze, driven by fear of the unforeseen. However, it’s pivotal to realize that principled real estate investing doesn’t necessitate choosing between securing the future and cherishing the present. It’s about harmonizing the two. After all, amidst life’s uncertainties, the present moment remains our most tangible asset.

The Principled Productive Investor

Enter the Principled Productive Investor. These investors don’t make decisions based on emotions; they always play the long game. They believe in enjoying the present while also preparing for the future. And they take action!

When building a real estate portfolio, the principled investor doesn’t base decisions on market conditions. Instead, they make strategic, conservative investments in properties that align with specific criteria for long-term success. In other words, they follow investing principles, a set of guidelines dictating when to buy, sell, refinance, or hold and wait.

By adhering to these principles every single time, principled investors enjoy the lowest possible levels of risk and the least amount of stress. Their approach minimizes the hustle associated with real estate investing. Short of a completely unpredictable event—like a meteor hitting the Earth—their investments tend to yield favorable returns over the long haul. They celebrate the small victories on their path to significant wealth, leveraging the benefits of years of principled investing. These are Moneyball Real Estate Investors who subscribe to the mentality that you shouldn’t consider a home for ten minutes that you wouldn’t be willing to own for ten years. These are true Micro-Winners on their way to millions.

Introducing Moneyball Real Estate

Embrace a unique investment approach that’s all about minimal risk, efficient use of time, and maximum returns. Welcome to Moneyball Real Estate, the strategic method to achieve economic independence by utilizing simple, conservative, single-family investment properties.

Moneyball Real Estate does not promote the elusive pursuit of hitting home runs in the realm of real estate. Instead, it advocates a more stable, methodical approach.

So, what is Moneyball Real Estate?

Moneyball Real Estate is a low-risk, time-efficient approach to achieving economic independence through conservative real estate investments. It targets profitable three-bed, two-bath properties at or below the national median in premier neighborhoods, to ensure a stream of reliable tenants that pay down the principal, pay off the interest, and fund the portfolio. These ”real estate singles” not only generate cash flow but also appreciate, offer tax advantages, and act as an inflation hedge. Central to this approach is a team of seasoned real estate professionals who find, finance, fix-up, and fill these properties on your behalf, letting you focus on your life’s pursuits without the need to immerse yourself in real estate intricacies. With Moneyball Real Estate, you gain all the financial rewards of lucrative property ownership, without the customary time commitment and risks. Anchored in simplicity and reliability, this method breaks age-old financial barriers, ensuring lasting happiness and affluence for its investors and their subsequent generations.

This strategy doesn’t just open up a wider spectrum of opportunities, but the real beauty of Moneyball Real Estate lies in the simplicity of the concept—it is all about harnessing the power of “Micro-Wins.” It’s the act of accumulating wealth and securing your economic independence in a risk-averse manner, as opposed to the frantic pursuit of quick gains.

A crucial element of the Moneyball Real Estate method is meticulous property selection. We’re talking about comfortable homes in appealing suburban neighborhoods, underpinned by good schools, low crime rates, and dynamic job markets. These parameters ensure a high demand for rentals, thereby fostering an environment of steady, predictable returns over time. And the best part? Professional property managers take care of the day-to-day duties, leaving you to focus on your job, your family, and your passions, all while growing your portfolio.

Mortgage leverage and long-term strategizing are key pillars of the Moneyball Real Estate philosophy. Typically, these properties are financed with a 25% down payment and maintained via a 30-year fixed mortgage. The objective is a medium-term hold on these homes, with options to refinance, allowing you to expand your property portfolio over time with a strategy we refer to as “refi and grow.” Also integral to the approach is the utilization of periodic, strategic sales of your properties in order to utilize 1031 Exchanges, which allow you to defer taxes and accelerate growth through a strategy we refer to as “sell and grow.” The idea is to organically grow your real estate portfolio, bit by bit, one property at a time, leveraging the advantages the market gives you during any economic cycle.

So, in a nutshell, Moneyball Real Estate is a strategic, low-risk, long-term investment approach that centers around acquiring stable, high-demand single-family rental properties in non-volatile markets across the country. By having these properties managed for you by in-market property management experts, you can remove the barriers of geography. This slow and steady approach is all about generating immediate cash flows and consistent returns on the road to economic independence. Moneyball Real Estate is the recipe that can create lasting happiness and financial freedom for you and your loved ones.

Moneyball Real Estate Solves the Retirement Quandary

The year was 2009, a time still shrouded by the effects of the Great Recession. Our phone line buzzed to life, connecting us to a voice laden with anxiety. It belonged to Ron, a man who had stumbled upon our real estate investment company’s advertisement while tuning into the radio.

Ron’s concerns cut deeper than the typical investor’s. A son burdened with a lifelong, financially draining medical condition cast a long shadow over Ron’s financial future and his ability to provide for his family through retirement and beyond.

On the day Ron heard our radio ad, Ron’s son, Michael, the one shouldering the weight of the medical condition, was nestled in the passenger seat. Perhaps it was the flicker of hope that danced in his father’s eyes, or the hint of excitement in his voice that resonated with Michael as Ron mulled over the prospect of dipping his toes into real estate investment. It was a dream Ron had harbored for as long as he could remember, but one he had continually dismissed, deterred by his limited financial resources and lack of expertise. Recognizing his father’s yearning, Michael spurred him into action, urging Ron to pull the car over, write down our phone number, and ultimately dial it.

From our first conversation with Ron, his optimism was palpable, brightening the prospect of real estate investing becoming a reality. As we revealed how he would benefit from a team of seasoned experts, dedicated to sourcing top-tier properties across the country’s most lucrative markets, and that he wouldn’t need to morph into a real estate guru or manage the properties himself, relief washed over him. Ron grasped that his journey to economic independence could begin right where he stood—financially, geographically— and that it could commence immediately. After we guided him through the mortgage lending pre-approval process, Ron stood on the precipice of his lifelong dream.

Ron took a leap of faith, purchasing a single property as a litmus test for our investment approach. He was far from a millionaire, just a retired high school teacher and basketball coach, scrimping and saving to make his first real estate investment amidst an era of bargain-basement market prices. Despite his modest start, Ron harnessed the power of the Micro-Wins to Millions Moneyball strategy to gradually build his real estate portfolio over more than a decade. One property turned into two, then those two multiplied to four, and so on until he had created a portfolio of ten properties—a number we’ve discovered to possess a touch of magic.

We served as Ron’s navigators in his Moneyball Real Estate journey, guiding him toward the best property types in prime markets. We arranged his financing, his insurance, and conducted meticulous rent-ready rehab on his properties. Our teams managed his properties, marketing and renting them out to tenants. Over the years, we kept Ron in the driver’s seat of his investment journey, providing him with strategic insights on when to refinance, grow, or sell his portfolio. Reflecting on his transformation, Ron shared, “When I used to think about retirement, it used to give me nightmares. Now it no longer does.”

Ron’s initial fears echo a common sentiment. Conventionally, individuals strive to accumulate a “nest egg” before considering retirement. They toil relentlessly, channel funds into a 401(k) or an IRA, aim to capitalize on stock market timings, and watch their nest egg steadily grow. The end goal is to ensure that this growth amasses sufficient wealth to sustain them post-retirement.

Simply put, people are ingrained with the idea of spending decades building a nest egg, only to watch it slowly dwindle away during their golden years.

Imagine this: you’ve always dreamed of constructing your dream house. You painstakingly plan out every minor detail and spend your adult life learning and implementing the know-how to build your dream home from scratch. After decades of hard work, your home finally stands completed. But instead of moving in and relishing your accomplishment, you immediately begin taking it apart, nail by nail, board by board, brick by brick.

Sounds ludicrous, doesn’t it? But isn’t this precisely what traditional retirement savings encourage us to do?

We spend a lifetime working and saving, building our nest egg on hopes and projections. We gamble on market growth and the guarantees of financial planners, yet with traditional finance methods, we start drawing down this growth or depleting our retirement nest egg merely to sustain ourselves into retirement. We might have a small pension or some Social Security, but the reality is that many Americans are solely reliant on their retirement nest egg to carry them through their golden years.

Here’s the catch: when you retire, your bills don’t. The traditional retirement model is flawed, as it fails to ensure a continuous income post-retirement. It’s based on depletion, not increase.

Moreover, the anticipated growth that you’re banking on to build your nest egg isn’t always reliable. We’ve encountered numerous individuals who’ve spent decades saving, only for unforeseen market fluctuations to diminish their savings, compelling them to postpone retirement, work longer, and continue to save and hope for the future. A circumstance that’s entirely out of their control and a stark reminder of the limitations of traditional retirement methods.

“Welcome to My January 2020 Retirement Party”

Imagine this scenario: it’s late January 2020, the culmination of years of relentless work, disciplined savings, and delayed dreams. You’re finally set to retire, with the soaring stock market bolstering your confidence that your investments will sustain your golden years.

But soon after retirement, you begin hearing whispers about a novel virus. Initially dismissed as insignificant, this virus gradually dominates the headlines. In no time, lockdowns, social distancing, mask mandates, and a toilet paper crisis become the norm. Simultaneously, the stock market plummets dramatically, erasing half of the wealth you painstakingly accumulated over thirty-five years. With your financial plans in ruins, you find yourself forced to come out of retirement and navigate an alien, pandemic-stricken landscape.

This was the harsh reality for countless individuals in 2020, illustrating the significant risk of entrusting your financial future solely to the stock market’s mercy.

There’s a better way: the consistency and dependability of quality real estate, which invariably appreciates over time.

We understand the fear that accompanies wondering if your savings will last. On a larger scale, we understand the fear of failure—failure to prepare, failure to execute, and failure to succeed—in all walks of life.

With our guidance, Ron harnessed the Micro-Wins Mindset and Moneyball Real Estate principles to preclude his financial fears. Unfortunately, Ron passed away in the Fall of 2022. His widow shared his obituary with us, where we were astounded to read, “Late in life, [Ron] enjoyed investing in real estate, a venture he shared with his son and best friend, Michael.”

The inclusion of real estate in his obituary was a poignant reminder of the impact of this work and this method. It signified more than just wealth; it represented the economic independence that we were blessed to help Ron and Michael achieve, an independence that now safeguards Ron’s family and his widow.

The Power of 10

But what is economic independence? It’s the ability to cease work today and rely on the income generated by your assets to maintain your current standard of living indefinitely. This is achievable through income replacement.

The number of properties required to replace your income solely with real estate depends on your desired lifestyle. There’s no universal figure or rule of thumb we can suggest. The number of properties required varies with each person and scenario. But if we were to provide a general guideline, for most Americans, targeting a portfolio of ten single-family investment properties can ensure a robust financial future. Regardless of your personal goals, everyone begins their journey similarly—with a single profitable property. Moneyball Real Estate isn’t a get-rich-quick scheme; it’s a strategy for achieving gradual wealth and attaining economic independence.

The power of economic independence is immeasurable. Ron’s modest portfolio of ten homes—ten real estate “singles”—amassed over time, now secures peace of mind for his widow and son. If you’re contemplating embarking on the Moneyball Real Estate journey, we hope for a similar outcome.

Imagine growing a ten-home portfolio of investment properties that you could pay off over time. Ten Properties, owned free and clear, may replace your employment income partially or entirely. Picture attaining a degree of economic independence for you and your family through simple, conservative real estate investments. How transformative could that be for you and your loved ones?

If even a single idea from this book can assuage your fears of an uncertain financial future, we’ve achieved our mission. Imagine the relief of knowing that financial nightmares need not be your reality.

All this becomes possible when you understand and apply the Principle of Stacking Micro-Wins.

Chapter 1 Ideas Summary

● True success stems from small, consistent victories.

● Micro-Wins make large goals more manageable and less overwhelming.

● Accumulating minor achievements can create a motivating pathway to major accomplishments.

●In the realm of real estate investment, every step counts.