Old school fundamentals simply work. Every time they’re tried. OPM — Other people’s money? A very sound principle . . . ’til it’s abused.
Transcript: Hi this is Jeff Brown the “BawldGuy”. Today I want to talk about how old school fundamentals still matter as much as they did 100 years ago. First of all, skin in the game matters. Those preaching otherwise say what their audience wants to hear. OPM, other people’s money, is a slippery slope, and usually the lessons are learned in bankruptcy court. Now look, buying based upon the expectation of increased value is foolish to say the least, and ruinous at worst. If you get appreciation, good for you. Please don’t plan on it. And if that’s what makes your investment a good investment, figure another thing to buy, because that’s not how you do it. Now the quality of location cannot be over stated. I think it’s been made kind of a cliche, though, with the whole “location, location, location” thing. Stop thinking in those terms. Location quality matters. It’s the number one factor that’s going to keep your retirement income reliable and safe. Think of it in those terms, and you’ll give location quality the value it deserves. Now clearly, those few factors are just touching the tip of the iceberg, but you get the point. What I want to get you to take away today is that old school fundamentals are like gravity, physics, if you will. They won’t be mocked. You can resist gravity all day long. Sooner or later, gravity wins the day. It’s the same thing with real estate investment fundamentals. You can violate them up to a certain point, and then they will smack you down at their convenience. You forget that, and just keep watching your back, because you will get smacked down. I hope this helped you. This is Jeff Brown, the BawldGuy. I’ll catch you next time.