Every year I’m blessed to have dozens and dozens of conversations (I call most of ‘em fixes.) with folks either wanting to get started on a real estate investment plan, or current investors who’d like to get back on track from a minor derailment. Both share a keen desire to achieve a magnificently abundant retirement. Sometimes I can help, sometimes not. I do my best to at least show them the direction in which to go.
Here are some things to ponder — food for thought if you will.
• Know where you are now. Rudimentary? You bet. But try gettin’ to any ‘Point B’ without knowin’ your ‘Point A’ and see how it works out.
• Understand how crucial it is to comprehend the difference between capital growth and cash flow — when to use one or the other — and when to shift gears from one to the other.
• Yeah, we realize you’d like to retire around 4:30 yesterday afternoon, but given your current reality, how long till you might reasonably retire, given your end game financial goals?
• What capital is available to you today? What equities could/can/would you tap to increase your initial investable capital?
• What’s your range of comfort — your comfort zone? This will come up often, believe me. It’s important to stay within that self-defined zone. It will dictate how well you retire, and often how quickly. Whenever there’s a conflict, comfort zone should always be the trump card.
• Cash Reserves — this is not an option. A real estate investor without reserves — generous reserves — is a fool. Period. Harsh? You bet — but ask those who’ve been visited by Senior Murphy and didn’t have generous reserves, how it worked out for ‘em. How important do I deem reserves? If you don’t have any or even what I consider adequate? I simply will simply refuse work with you. Yeah, it’s that important.
• Flexibility — Having a Purposeful Plan is one thing. Expecting the execution to be unaffected by Murphy and his minions is fantasy. It’s not only negative events that require a flexible attitude. It can be an incredibly positive opportunity that comes your way. But in my experience, those windows are often narrow.
There’s more to gettin’ from Point A to Point B, but you get the drift, right? Almost everything you’ll find yourself doing will adhere, more or less, to the ongoing paradox that is real estate investing. What you’ll be executing will be simple in nature — but commonly not so simple when it’s you gettin’ things done. What most clients learn pretty quickly, is the difference between watchin’ those in the arena, and being in the arena themselves.
BawldNotes: Next week I’m back in Texas with a twofold agenda. First and foremost will be to have my own boots on the ground, vetting management firms in a couple new areas. Very few factors affecting real estate investors are more important than professional management.
Also, I’ll be attending a professional to-do in San Antonio. It’s called a ‘barcamp’ — pros teachin’ pros. I was at the seminal barcamp many years ago in San Francisco, and a bunch since then. The best part? Rubbin’ shoulders with those in the industry. Nothin’ better than swappin’ war stories at Happy Hour with fellow professionals who’ve also been in the arena a long time.
I’ll also be paying off a bet I lost to Chad Emerson of Prime Lending in San Antonio. Those who are regular readers know Chad’s the guy I rely upon for my clients’ income property loans.
If pondering these concepts has driven you to action, please, gimme a call. 619 889-7100 will find me every time it’s tried. Or, simply click on the Contact BawldGuy button up top and send me a note — brief or epic. Have a good one.