The people you spend time with influence what you think … and where you’ll end up. Building your social network gives you power and safety in an unstable economic environment.
Real estate is a relationship business. The most successful real estate investors have built a network of quality connections so they can exchange value when the time is right.
In this episode of The Real Estate Guys™ show, we’ll hear from Chris Martenson, co-author of the book Prosper! He’ll explain the eight types of capital … and take a deep dive into how and why building social capital is important.
Listen in! You’ll hear from:
- Your socially adept host, Robert Helms
- His socially awkward co-host, Russell Gray
- Author and futurist Chris Martenson
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Chris Martenson’s eight forms of capital
If you listen to the show, you’ve heard us talk about the book Chris Martenson and Adam Taggart wrote. It’s called Prosper!, and we think it should be required reading for everyone … especially real estate investors.
Chris has a PhD in science, but today he works as an economic researcher and futurist. He says he is not a forecaster or a visionary, instead approaching his predictions through the lens of his scientific background.
Prosper! is a book about preparing for the future … but preparing doesn’t mean prepping a bunker. It means not taking for granted the energy and natural resources we rely on … and taking steps to make your life better today AND in the future.
“We can’t have a future based on the past,” Chris says. As technology, fuel sources, and the economy change, so will the way we prosper.
What can we do to prepare for the future? Build up capital, says Chris. He gave us a rundown of the eight essential types of capital important to a happy, healthy, and prosperous life.
- Financial capital. “Grow it and take care of it,” says Chris. (Don’t worry, the book goes into way more detail.)
- Living capital. Not only do we need to monitor the health of our bodies, but we should take stock of the health of the ecosystem around us, including soil, water, plants, and animals.
- Material capital. Don’t just own “stuff.” Think about whether your belongings are valuable and long-lasting. What properties do you own, and how are they fueled? How about your vehicles? Chris recommends buying high-durability basics that are simple to fix instead of cheap plastic tools that waste both money and resources over time.
- Knowledge capital. This is the sum or your book learning and actual experience.
- Social capital. Your social capital is built not just on how many people you know, but also on how well you know them and whether you can depend on them.
- Emotional capital. If you fall apart at the first sign of trouble, it doesn’t matter whether you’ve built up the other seven types of capital. Be able to rebound from insults and setbacks. Know yourself well enough that you can respond with a clear head when times are tight.
- Cultural capital. You either have this or you don’t, says Chris. The key is to take stock of where you’re at and where you want to be.
- Time capital. “Time is our most important asset,” says Chris. It’s important we be able to prioritize. In Chris’s words, “You get to waste one life … so don’t waste it!”
How and why to build your social capital
Rich social capital equals a happier, healthier person, says Chris, a person with a greater sense of reward and purpose. We derive meaning from the people we spend time with.
Chris measures his social capital by the number of people he could call to watch his kids if there were an emergency. (Take a second to take stock. How many people in your address book could you depend on to help with a last-minute crisis?)
Social capital is incredibly important … for both personal well-being and success as a businessperson. So how do we build it?
It’s simple, says Chris … spend time doing stuff with people.
For example, Chris hosts a monthly neighborhood potluck with anyone who’ll come. And he makes and effort to have real conversations with people … instead of just small talk.
The key to social capital? “You have to be the one to take the risk,” Chris says. Be real. Be vulnerable. And get down to the deep questions, instead of staying at surface level.
Build rapport and get to know people. It takes time, but results in a deep knowledge of others’ strengths and weaknesses.
As a real estate investor, your business is built on relationships. You don’t want those relationships to be simply transactional. By building rapport and depth, you’ll get better deals … and be more satisfied with your relationships.
Social capital is incredibly important. So sit down and make a strategic decision to make an effort to build on your current relationships … and make new ones.
Chris notes that most Americans are living in a state of anxiety and fear … but not taking any steps to make their situation better. In a happy and successful life, there’s no room for stress and strife, he says.
How can you step away from anxiety? “It’s all about the doing,” says Chris.
Chris’s business, Peak Prosperity, wants to give his community of readers knowledge about what’s happening now so they can take a big-picture view. But more importantly, he aims to help people take steps to change the way they live and prosper.
Envisioning the future
Interested in building your social capital? Come to our Create Your Future Goals Retreat in January! We aim to help you figure out your values, motivations, and goals … so you can find people who share similar values.
We enjoy talking to Chris and learning from him because he really pays attention to what the future might look like.
It’s a guarantee that the future will look different. Artificial intelligence, communication, and technology are all poised to shift radically in the next few decades. And big changes are coming to the economy, social stratosphere, and environment.
Yet despite not knowing what the future holds, we have to make major, long-term investment decisions every day.
That’s one reason social capital is so important. Having social capital means having a community of people you can trade ideas with. Social connections empower you to question yourself and learn new ideas … enabling you to prepare for the future with confidence.
Now go out and build some social capital! May we suggest a potluck?
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