WORD OF THE MONTH: ITERATION
First things first: I take no credit for this fabulous word. I had the privilege of listening to an inspirational presentation by Michelle Romanow. AND I’m not saying this to name-drop; simply to give credit where credit is due.
Simply put, an “iteration” is a new version or a new solution. Tech geeks will be very familiar with the concept for hardware/software changes and improvements over time. But entrepreneurs and real estate investors will be familiar with the concept, regardless of what word they use to describe it.
A trending example (this week) of a brand iteration is Beyonce. She is a well-known singer and performer in the R&B and Hip-Hop genre. But this week she hit the top of the Country Music chart. Same incredible work ethic, voice and performance quality –but completely different style/genre. You go girl!
With Covid, entrepreneurs of all shapes and sizes learned to adapt. Their businesses today may be completely different “iterations” of what they were in 2019. Another example is in the digital business space, where each iteration brings a company or its software (hopefully) to a better version = faster, better graphics, fewer glitches, ….
In the world of real estate investing, each transformation is intended to adapt to market fluctuations, economic trends, and even social/political changes. The key for real estate investors is to stay focused on their ultimate financial freedom goals.
For example, maybe 10 years ago an investor bought suited houses. Perhaps the reason was that they had a simple and repeatable business model with good cashflow. In 2024 the tenant profile and expectations have changed, financing is completely different, and even government and energy/utilites are in constant flux.
A new iteration of our business in real estate investments is now a necessity, not a luxurious improvement. Maybe the way to get good cashflow today (for our sample investor) is to buy townhouses, with or without a suite. Or possibly that investor might add garage suites onto his/her suited house properties. They already know the neighbourhood and the property, but can force some appreciation and invest in a new home, literally in their own backyard.
Lately we’ve chatted with some people who are reluctant to change their real estate investing business model. At the same time, they are noticing that their strategy no longer works the way it used to. But Michelle Romanow’s talk created a paradigm shift for many of us in that room. Take what was working, and make it better! Adapt and grow.
Whether we are improving energy efficiency, or building to the new codes, or increasing density on an existing/new property, the potential to provide new living spaces for Gen Z and new people to our country is astonishing right now. We’re not saying it’s going to be easy. But our financial freedom is worth it!
Cheers to your next iteration, personally or professionally!
