Expert Advice: Buy Your First Rental Property Before Your Second Truck
For George Hedley, who has turned his years as a construction company owner into insight as a business coach, it is necessary to know your vision to be successful in business.
"What is your vision?" Hedley asked at the recent Bisnow Orange County Construction and Development event. "Why are you here?"
When Hedley first started out in his career, he realized he had to take risks as an entrepreneur. He now teaches that concept to others.
"What risks aren't you taking personally and professionally?" Hedley said. "If you don't take risks, you can't get ahead."
Hedley coaches 50 to 60 contractors and general contractors nationwide.
His first piece of advice: buy your first rental property before your second truck. He said it is the best idea he can offer.
He also spoke of how important it is to focus on your goals and how your life fits into your business.
"How much real estate do you own, so eventually you can enjoy the benefits of your hard work? That's really the key," Hedley said. "If you're just working for the man, and you get a check, what's the point?"
Between intermittent laughter and applause, Hedley talked about his own hard lessons learned in the business.
He recalled early on working on a project in Laguna Hills as a one-man company, charging $25K for a $750K job.
"That's how stupid I was," Hedley said. "I didn't have a clue."
Whatever your goal, he said money should not be the most important thing.
"Some of you are real estate developers, it's not to make the most money," he said. "It's to make the project the best it can be for the people who are going to inhabit your building."
It is about helping other people, he said.
Hedley, who stopped building in 2010, said helping other people achieve their goals was how he was able to grow Hedley Construction & Development from $0 to $50M and up to 150 employees in seven years.
CORRECTION, AUG. 1, 11:35 A.M. PT: A previous version of this story did not have the correct date for when Hedley sold his business. The story has been updated.
