A reminder, as we’re beginning another year. The pictures on most of my posts are there for my pleasure, and hopefully yours. They’re not there to make any kinda statement connected to the post’s content. Just so ya know.
BawldGuy Axiom: It’s rarely the answers to the questions you ask that hurt you. Instead, it’s the answers to the questions you didn’t know to ask that can derail the best of plans.
Grandpa sometimes used fishing to explain principles to me as I was growing up. He said anyone with some line and a hook could find a stream and say they were fishing. Now if the joy of being outdoors and gettin’ away from it all is where the real value of fishing is for you, cool. That’s true for thousands of people around the world. ‘Course, if actually catching fish for supper is your goal, returning home the way you came, that is, sans fish, ain’t cool.
Laboriously searchin’ your local market for ‘good deals’ while your capital is burnin’ a hole in your Levis ain’t what most people mean to convey when they call themselves investors. They mean they catch fish. Or, continuing with this metaphor stew, and moving back to real estate, they successfully either grow their capital or generate solid reliable cash flow. Heck, anyone with a pulse and enough dead presidents loitering at some bank account with their name attached can ‘invest’ in real estate.
Something to ponder: Anyone can head for a lake, throw a line in, pop open a beer, and say they’re fishing. If the goal is catching fish however, they ain’t fishing ’till fish have made the deadly transition from water to shore as a result of their efforts. The act of throwing a line into the water doesn’t mean you’ll be enjoyin’ freshly pan-broiled trout (in butter of course), that night.
Throwin’ your hard earned cash into real estate investment property just means you’ve impressed a lender, pleased a seller, and changed the address of your capital. You’ll know you’ve successfully become an investor when capital growth becomes apparent, or cash flow becomes a monthly habit.
One of the toughest lessons I learned early on was that buying property didn’t make anyone an investor. It was a long, sometimes mind-numbingly slow process to learn the numbers that make properties tick. To understand various financing options. To decipher tax laws and understand when — and more importantly when not to apply them. But most difficult of all was acquiring the skill to take all this knowledge as an entity unto itself, analyze it, and come out with a reasonable result.
Sometimes that result is a clear message to ‘pass’. Sometimes it ain’t bad, but nothin’ to write home about. We usually pass on those too, with some rare exceptions. There are those times though, when the numbers almost sing with the clarity of decision known only to those who’ve analyzed hundreds of properties — they understand, then often get a severe case of Happy Feet.
BawldTakeaway: So many end up frustrated as they continue to fish for the wrong investment in the wrong region, hoping for financing that doesn’t exist. Those who know where the cool fishin’ holes are, can often be found eatin’ pan-broiled trout for supper. When things change, they don’t continue to insist things are the same. They find the next spot on the lake where the fish love to hang out. That search can lead to many days of fishin’ but not much catchin’.
Go where the fish are.
It’s a brand new year, but one thing hasn’t changed — I need my daily fixes. Talkin’ with folks is what makes my day. So get in touch with me and let’s figure out what the next 10-20 years might have in store for ya. Like maybe the retirement you’ve always wanted, but weren’t sure how to pursue. Have a good one.
Related posts:
- San Diego Real Estate Investors — Pay Attention To Jon & Jill
- Real Estate Investors — The Difference Between Pessimism And Reality
- The Folly Of Missin’ The Same Bus Twice — Pay Attention Real Estate Investors
- Random Thoughts For Real Estate Investors — Attention San Diego
- Understanding The Difference Between Flipping And Being A Real Estate Investor
About BawldGuy
Recent Comments