Two house flippers purchase nearly identical properties, but one earns twice the profit of the other. Similarly, two wholesalers acquire comparable homes; one sells for a $25,000 profit in a day, while the other struggles for months to make $5,000.
This illustrates an essential concept: while many people can get a job done, excellence narrows the field significantly. It’s not just about how a task is completed; who completes it makes all the difference.
In their book Who Not How: The Formula to Achieve Bigger Goals Through Accelerating Teamwork, Dan Sullivan and Dr. Benjamin Hardy explore this important idea. The key takeaway is simple: instead of focusing on how to do something, entrepreneurs and managers should be asking, “Who can do this for us?”
This mindset shift is transformative, especially for passive investors in real estate.
Why Switch to a "Who, Not How" Mindset?
If you're not choosing to run everything solo, the team you build is vital. The individuals you bring on board will ultimately determine the success or failure of your venture. Just look at top NBA teams or consider how Steve Jobs approached talent acquisition at Apple. Jobs famously believed that a small team of exceptional employees could far outperform a larger group of average ones, creating exponentially greater results.
Applying this principle gives you a dual advantage: you’ll achieve more and gain greater freedom—a win for all involved.
Some specific benefits of adopting this approach include:
More time: By allowing others to handle tasks they excel at, you free yourself to focus on the bigger picture.
Less stress: Working within your strengths leads to more satisfaction and fewer frustrations.
More focus: Delegating tasks outside your expertise gives you the space to focus on what you do best.
Increased profitability: With fewer distractions and enhanced focus, you can grow your wealth.
Better relationships: Teamwork and collaboration improve work harmony.
Greater purpose: With the right people handling the details, you can pursue your passions and long-term goals.
How Does This Apply to Investors?
Many investors hear about the potential rewards of real estate—income generation, tax benefits, and long-term growth—and decide to take on property management alongside their full-time jobs. Unfortunately, this often leads to disappointment, as the challenges and risks outweigh the returns. Real estate isn't as simple as it appears on TV. Many end up abandoning the effort, returning to traditional investments.
However, a better path exists—passive real estate investing. While this shift allows investors to reclaim time and avoid many risks, it’s only the first step. To truly succeed, investors need to apply the "Who, Not How" principle.
The Importance of Choosing the Right “Who”
Making the shift to passive investing is a great start, but the key is selecting the right operator for your investments. A mediocre operator can ruin even the best real estate deal, while a skilled one can turn an average investment into a success.
Unfortunately, many investors stop at the first promising opportunity they come across, investing with operators based on surface-level impressions. This is a dangerous approach. I speak from experience—after selling my staffing business in 1997, I became a full-time investor. I made several poor investment choices, and in many cases, I lost everything.
It wasn’t until I understood the critical importance of thorough due diligence and selecting the right partners that my investments improved. Choosing the right "who" is crucial, and it’s often more challenging than it seems.
Most passive investors are busy with careers, families, and personal interests, leaving little time to properly research their investments. But due diligence is essential—it requires focus, time, and knowledge of what to look for.
"Who, Not How" in Passive Real Estate Investing
The "Who, Not How" principle is particularly relevant for passive real estate investors. Rather than focusing on how to manage a property or find the perfect deal, it’s far more effective to focus on finding the right operator who can handle these details. A top-tier operator can make all the difference between success and failure.
Final Thoughts
Throughout my career, the “Who, Not How” principle has been central to my success, long before I read the book. The same concept has applied to my best investments. With time and experience, I’ve become much more cautious, and I hope you do too.
Focus on "who" rather than "how" in your investments and business. It will reward you in countless ways, both financially and personally. Let us know how we can support you on your investment journey.
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