🚨 The 80/20 Rule & Why You Must Know It · Real Estate Learning Community

🚨 The 80/20 Rule & Why You Must Know It

The 80/20 Rule, also known as the Pareto Principle, states that roughly 80% of your results come from 20% of your efforts. In the context of real estate investing or any business really, this means that a SMALL percentage of your tasks or activities will generate the MAJORITY of your success, while the rest of your tasks contribute minimally to your outcomes.

Here are some examples as it applies to prioritizing important tasks versus low-value ones in real estate:

1. Focus on High-Impact Activities: Identify the 20% of tasks that directly drive results, such as:

• Sourcing and evaluating highly motivated sellers.

• Building relationships with motivated sellers or cash buyers.

• Engaging in regular direct conversation with motivated sellers through phone calls, text messages or other forms of marketing.

• Marketing properties to attract quality tenants or buyers.

2. Minimize Low-Value Tasks: The remaining 80% of your time may be spent on tasks that have little to no impact on your bottom line, such as:

• Spending excessive time on administrative tasks.

• Getting bogged down by emails or trivial communications.

• Focusing on website building, brand design, business cards, tinkering with software, etc.

3. Delegate or Automate: For low-value tasks, find ways to delegate, outsource, or automate to free up time for high-priority activities that will bring in the bulk of your results. For example, use property management software, hire virtual assistants, streamline your processes and even partnering to stop wasting your time on tasks you are not the most effective at.

4. Continuous Assessment: Regularly assess your tasks to ensure you’re focusing on the areas that will bring the most value, adjusting as your business grows and priorities shift.

By applying the 80/20 Rule, you maximize your effectiveness and ensure you’re dedicating your time and resources to what truly drives success.

Remember, you cannot manage time. Time management is a fallacy. You can only manage your activity.

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