Taking the Long View – Facts About the Advice I Share

I often mentor agents around the country wishing to speed up their learning curve on what many call ‘the dark side’ — investment real estate. Almost always, they ask what one thing would I tell them they may not have already suspected about what we do. The answer surprises most, but I’ve found it to be true wherever I’ve done business.

I’ve learned that more often than not, my job is to dissuade folks from either doing what they’ve set out to do, or in doing anything at all.

Professional advice should be just that — professional. The majority of the time either the facts aren’t what the investor seeking advice perceives, or they are, but their conclusion is erroneous. Over half the time it either makes more sense to stand pat or to do something different than planned — sometimes very different.

My policy, as taught to me by several of my mentors, is simple as pie. The decision to either make a change, or add/subtract from a portfolio must be a no-brainer call. It can’t be marginal, as in most cases it clearly won’t make sense once the analysis is objectively viewed. Many times I’ve had to talk folks outa selling/exchanging a particular property cuz my multi-scenario analysis combined with the long view makes it a marginal move at best.

So many times I’ve resorted to my favorite remark in order to finally convince a client or referral that what they want to do isn’t in their best long term interest. My go-to is: “Look, I’ll be happy to do what you want (if it’s not injurious) but seriously, the only guy who’s gonna make money on it is me. Why would ya do that on purpose?”

Whoa! They usually tell me at that point no broker’s ever said anything like that. You can usually see them calculating how much they’d be paying me, knowing I’ve just advised them not to pay me to do what they wish. Very rarely does that not convince them — they realize I’m deadly serious.

The big picture, long view, whatever ya wanna call it, must be the foundation upon which pivotal real estate investment decisions are made. Even short term consequences, good, bad, or ugly, normally shouldn’t take precedence over the long view. The long view in most scenarios is the answer to the question — how will this ultimately affect the investor’s retirement itself, and/or retirement income?

I very often give advice which ends up with my client being referred to a specialist outside my expertise. EIULs are an excellent example of this. I make no commission, fee, even referral from sending my clients to the proper insurance pro — never. Well, they buy dinner and drinks. Then why do I do it? Again, the answer is transparently elementary — it’s the right thing to do, so I do it. Not only do I not make anything, I’m giving up income by not advising them to do something for which I’d be paid.

It’s what being professional is all about. You sift through the facts knowing the ultimate goal, and make your call. You do this knowing that Job #1 isn’t return on the capital, but preservation of the capital — a principle with which many are becoming newly acquainted these days. The concept of getting rich slowly has suddenly become very appealing.

Understand, if you wanna know what to do, my answer may not be what you expected, or wanted to hear. To contact me, call 619 889-7100. Have a good one.

Related posts:

1. Purposeful Planning Part III — Managing Your Loans — The Long View
2. Facts About Buying Real Estate Through IRA’s and 401(k) Qualified Plans
3. 3 Important Facts So Many Seem To Ignore
4. Everything’s Free & Clear — Rentals Included — Yet Still Taking Home 25-35% of What’s Easily Attainable
5. Taking The Steps Toward The Creation Of A Purposeful Plan