Old School Style Real Estate Strategies — All They Do Is Work

Let’s agree right up front, the best of Man’s plans are still subject to the unforeseen — the 100 year flood if you will. And no, contrary to the opinion of some, you can’t plan for anything and everything. Only the arrogance of Man leaves the table secure in the knowledge their plan has been rendered fail safe. Those who succeed as real estate investors understand the plan that cannot fail doesn’t exist. Even the concept of fail safe investing directly implies risk has been removed from the equation. Only children and fools would even entertain such a thought seriously.

Let us all turn to the book containing the investment facts of life. It’s found in the Book of Old School. The first line of the first chapter is a simple declarative sentence.

It’s called risk capital for a reason.

There’s no wiggle room in that statement. The chapter goes on to explain the relationship between risk and return. The lower the risk, the lower the return, and vice versa. There are no guarantees. Even when ‘guarantees’ are invoked, they shouldn’t be taken at face value — with a lone exception. I believe guarantees underwritten by sufficient cash in the bank to back them up. Otherwise?

Take it from a guy experienced in guarantees gone south. The first guarantee I ever trusted cost me a property. ‘Course the next thing I’ll hear is how the guarantee is as good as the character of the guarantor, right? I’ll assume Grandma told you ’bout good intentions, and move on.

The Book of Old School has principles it views much as science views the principles of physics. Here are just a few of ‘em.

No matter the strategy — it’s about acquiring wealth slowly.

Exceptions to gettin’ rich slowly are well received happy accidents. Be grateful.

Very little investment success comes without a Plan. This principle is nuclear.

The investor must be able to adapt to market changes — both welcome & otherwise.

Analysis by definition must be, without exception, brutally, nakedly objective.

Good intentions never obviate the penalty for not knowing the questions to ask.

BawldGuy Axiom: The principles taught in the Book of Old School will not be mocked.

Regardless of what you may read, see, or hear, Old School principles are as strong today, as they were 2,000 years ago, and will be 1,000 years from now. Does it mean investors can’t lose? Hardly. Not even Old School investors are infallible — even though the principles are. Using physics as an example — take the principle of gravity. One might pay close attention to gravity in careful preparation for a parachute jump from a plane 8,000 feet high. Yet all the prep in the world still results in the rare chute that doesn’t open.

Nonetheless the principle of gravity is still enforced without mercy. The principles of gravity never fail.

Oh, and for the record? There’s no chapter in the Book of Old School titled, How To Get Rich Quick.

It does have a paragraph somewhere saying how to make a small fortune ASAP. Seems the first ingredient is a large fortune.

One of the first principles of the Book of Old School says to make generous use of expert professional advice. How convenient is that for me? Always been my favorite. Take the first step and contact me. We’ll put together a Purposeful Plan (see podcasts) based upon your specific circumstances. Begin your own journey. Have a good one.

Related posts:

1. Real Estate Investment Strategies — Using All The Tools Available
2. Old School Real Estate Investing
3. Principles Of Flight & Real Estate Investment — Gettin’ Off The Ground
4. Why Do Real Estate Investors Fail? Investment Physics, Gravity, & Parachutes
5. The Old School — Learning From The Dinosaurs — Belated Thanks