A Few BawldGuy Axioms NOT Just For California Real Estate Investors
Posted @ 11:13 pm - Filed under Real Estate Investing, Purposeful Planning, Retirement Income, Investment Lessons, Investment Physics, BawldGuy Axiom, IRS, Real Estate Law
Lately some have asked how many of these axioms there are. I don’t know. There’s a bunch though, and many have been taken from Dad and other mentors, some of whom were literally industry giants. I can claim originality on none of them, as they’re time tested over literally centuries — at least most of them. Come to think of it, I’ve been told my paraphrasing on many of them is original.
Here are a few.
BawldGuy Axiom: About the time the farmer trained the ol’ mare to work without eating — she died.
We can fool ourselves all we want when it comes to where, when, how, what, and why we invest in real estate. We can even appear to defy gravity for periods of time. Sooner or later though, Investment Physics win out. The core, or maybe better said, foundational principles of real estate investment are defined as such for a reason. As has gravity. Being a contrarian as I am much of the time, is one thing. But you’ll notice you’ve never seen me jump off a roof expecting to fall sideways. So sure, we can get a starving horse to work for us — until she dies. Then where are we?
BawldGuy Axiom: The words ‘Free & Clear’ have no magical powers. In fact they’re often the central figures in Grandpa Economics’ unintended consequences: Not a retirement supporting the Golden Years, but rather a mind numbingly financial life sentence. (See Grandpa Economics podcast.)
Grandpa retired with a retirement income quadruple his salary when he was 35 and a free and clear home. If he retired in ‘95, how would you predict his $35,000 a year before taxes is workin’ for him now? I rest my case. He’s probably already sold his home and moved in with one of his kids, ‘cuz he had little choice. The only ‘magical power’ of a free and clear home was how quickly it reunited him with his kids. Very sad.
BawldGuy Axiom: Investment Physics, when applied in a Purposefully Planned and well disciplined manner will produce superior results over the long haul.
When multiple foundational principles are used in concert to create a positive symphony, resulting in the dulcet tones of significant capital gains or cash flow, we call that Purposeful Planning. It never fails to elicit the enviable long term results real estate investors intended. Investment physics combined with Purposeful Planning is not a magic bullet. It doesn’t ward of Murphy, or cyclical downturns. What it does is get you through thick and thin until it’s time to send our your Retirement Party Invites.
BawldGuy Axiom: More is better than less. Sooner is better than later. Best of all? More sooner is much mo betta.
And grass is green, the sky is blue, and Grandma made the best bran muffins w/raisons in the history of mankind. Duh
BawldGuy Axiom: Lenders lend.
If they don’t, they’re forced to rip the sticker on their foreheads which says L-E-N-D-E-R. More simply put, if they’re not lending or lending enough, they’re no longer in business. They view this in a decidedly negative light.
BawldGuy Axiom: Don’t play with the folks who make the rules.
As it relates to the real estate investor that almost always refers to the IRS. Messing with them is akin to showing up at the OK Corral. Unless your name is Earp or Holliday, you won’t like the ending. 
The Little Sisters of the Poor’s football team has a better chance of beating Ohio State than the investor has against the IRS. Strive to remain in the middle of the road. Seeing how close you can come to the cliff’s edge may be exciting, but you don’t wanna know the ending to that saga. There — three analogies — no extra charge.
BawldGuy Axiom: Nothing beats first hand research done at street level, in person — nothing. The gold standard for research is always first hand — their lips to your ears — in person. Hearsay just doesn’t cut it.
Solid first hand research is what anchors our approach. We know what the facts are ‘cuz we uncovered them ourselves. Sure, we ask the local pros in the area, but then we do our own version of the Columbo thing. There is no substitution for first hand boots on the ground research. You’ll understand that in an up close and personal way the first time you violate that rule. Either you or your pro better have adhered to this axiom. The consequences are often swift and brutal — and almost always predictable.
Doing things according to foundational principles — time tested over centuries — is what Purposeful Planning is all about. There are no ’sure things’ and most of the ‘can’t miss’ projects I’ve seen have missed by a country mile.
BawldGuy Axiom: Getting rich quick works — until it doesn’t.
No explanation necessary.
If you think we should be talking about your retirement goals, the way to start is by getting a hold of me. I’ve pretty much available most of the time, so just start the ball rollin’ by clicking here, and getting the conversation started.
This entry was posted on Thursday, May 8th, 2008 at 11:13 pm and is filed under Real Estate Investing, Purposeful Planning, Retirement Income, Investment Lessons, Investment Physics, BawldGuy Axiom, IRS, Real Estate Law. 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.