Does a ‘Circle of Influence’ really matter for real estate investors? If so, what is it, and how can you take advantage of it?
The Circle of Influence is a concept familiar to most real estate investors. Similar to that of a mastermind group, a circle of influence can have a large impact on the way you do business, or at least perceive it. So who makes up your circle of influence? Is it time to upgrade a few of them? Where do you find better ones? What about family?
Just as “you are what you eat,” you really are representative of who you hang out with. This isn’t just about getting ahead and reaching the pinnacle of success in real estate investing, it is also about reaching your own full potential.
Much of it boils down to influence. If real estate investors spend the majority of their time with others that have no aspirations for improvement, are foolish with their money, and dismiss any goals of advancement, trying to invest for success can be like swimming with a large ball and chain. Those around you impact how you approach the business.
Now imagine your closest friends where Warren Buffett, Donald Trump, Elon Musk, Bill Clinton, and Mark Zuckerberg or Mark Cuban. Do you think that might make a difference in where you are at the end of the day? What about the potential for success and new business ideas? Do you think they would spend a lot of time with you if you were always negative, had no goals, had no interest in improving or doing big things, or were constantly complaining that ends don’t meet because you handled your finances poorly?
Whether you call it law of attraction, increased opportunity, creating your own luck, or passive coaching, it doesn’t matter; it works. Try it. Align yourself with those that are where you want to go.
Should You Ditch Your Friends Based On Their Finances?
The concept behind the Circle of Influence has many questioning whether they are supposed to ditch or separate their friends based upon their financial status. There may be some advantages of having friends with money, but this is far more about mentality, values and vision than wealth.
There may be people in your life that don’t have two cents in their pocket that can be priceless to have in your corner. At the other end of the scale, there may be those that appear to have all the toys that can be absolutely toxic to spend time with. Developing your Circle of Influence also doesn’t demand you completely run people out of your life, and turn your back on lifelong friends. However, you may want to adjust the amount of time you spend with certain people, and tweak what you talk about.
What about Family?
Ambitious investors may find that their immediate family members are not necessarily the best options for a circle of influence. This is a very delicate area. Often spouses and others won’t share the same financial management disciplines, or appreciate all of the changes an investor wants to make. Remember your real goals, and also the people that are most important. Money is a poor friend. If you do find this an issue, find ways to compromise, appreciate the ways these differences bring balance, and be select the topics you engage in, and their timing carefully.
Making the Transition
Start by identifying the types of people you could benefit from having in your circle of influence. Secondly, list out people you know of that you may want to interview for the new position. This may include:
- Real estate agents
- Coaches
- Business owners
- Real estate investors
- Speakers
- Consultants
- Financiers
Making a jump to ‘friends’ can take some work. In the beginning, many of these individuals may start off as mentors and loose personal contacts, and transition to be becoming friends over time. After all, being friends is a two way street. You can kick start this by being friendly, and bringing something of value to the table. Look for ways to build on the relationship with regular mastermind groups, dinners, lunches, boat trips or golf.
A circle of influence is constantly in flux. People can come into your life for a reason, season or lifetime. Put this into play and in a few years from now you’ll see how your sphere of influence has changed and expanded over time, especially in terms of who your social media contacts are. Try it out, and you’ll find it makes a difference at every step.
