3 Important Facts So Many Seem To Ignore
Posted @ 7:57 pm - Filed under BawldGuy Axiom, Capital Growth, Cash Flow, Market Correction
Sometimes the simplest principles are the ones leading to the most success. My dad, for his first several years in school, literally attended class in a red, one room schoolhouse. He said he learned more in that atmosphere, the basics backwards and forwards, than he ever did in the more ‘modern’ schools he later attended. His first years of school were in the 1930’s.
Aside from the myriad things we need to know and understand, plus the technical and analytical skills required to make real estate investment decisions, there are, in reality, all things being equal, only two things you need to know. Once you know these two things, and understand the conclusion to which they inevitably lead, you will have infinitely increased your chances for long term investment success.
First — And don’t smirk — More is better than less.
More after tax profits. More after tax cash flow. If it has to do with return, maximize it one way or another. There are more ways to get to that end than most ever imagine.
Second — Sooner is better than later. Hey! I said no smirking.
It’s surprising how many folks don’t understand time’s place in real estate investmenting. Calling time a crucial factor is like saying Grandma’s raisin bran muffins were the best in the known universe — Duh. Neglecting time’s effect on your Plan, and it’s execution is almost always injurious if not outright fatal. Whenever possible, ya wannna make time your friend.
Conclusion — The synergy between the two factors produce yet another Captain Obvious epiphany.
More — sooner — is much mo’ betta.
In other words, if someone ever tells you that $100,000 today is a better choice than twice that much 7 years from now — Don’t call him on it — That statement is right, not always, but the vast majority of the time — at least in real estate. Throw out boom/bust times — 2% a year appreciation on 20% down is a 10% capital growth rate — BEFORE tax benefits, principal pay down, and cash flow are factored in.
BawldGuy Axiom: Time doesn’t care about us. It just is. Our decisions are what make it our friend or our foe. Ya wanna court time.
Do your own numbers. Turn in your papers when you finish, and please show your work. Don’t get caught up in whether your particular area is currently experiencing falling or rising values. We’re talkin’ principle here, OK? Besides, if you’re geographically bound, that’s your choice — a statement most couldn’t plausibly make 10 years ago.
Understanding the value of time is sometimes akin to having the key to the vault — or avoiding losses.
Call me and let’s see what we can do in the time left for you. 619 889-7100 will find me most of the time. Have a good one.
This entry was posted on Thursday, September 10th, 2009 at 7:57 pm and is filed under BawldGuy Axiom, Capital Growth, Cash Flow, Market Correction. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
