Why It’s Important to Become Successful Slowly in Real Estate

Feeling like breaking some rules?

Jul 20, 2014 at 2:04PM

This is going to be funny!

Well – that's a hell of a way to start out.  I remember my 7th grade Language Arts teacher telling me –don't tell them what you are going to say; just say it...

Haha – I'm feeling feisty; feeling like breaking some rules.  Besides, my 7th grade teacher had no way of knowing that I'd be writing on a real estate blog, of all things, and that my audience will be comprised entirely of real estate investors – not the sharpest knives in the drawer, if you know what I mean, and that's putting it mildly...(if you were, you'd be buying mutual funds and forget all about RE!)

So, just to make sure that you catch on, I'm telling you – this thing is funny J

Our House
Patrisha and I built our home about 8 years ago.  Her recollection of the events is a little "different", but I think mine is funnier, and since I am the one writing...

When building our house, I remember going to Sherwin Williams with my wife to pick out colors (like 100 times).  We finally picked out a color for our bedroom walls which had a very slight tint of beige/pink in it.  Patrisha liked it and I just wanted to be done – you know what I'm sayin'?

Why Its Important To Became Successful Slowly In Real Estate

The construction was completed – we moved in. It was a hectic day, as you can imagine.  But, eventually we made our way into the bedroom, and to tell you the truth, the color on the walls looked just fine; not that I focused too much of my attention on the walls...first night in the new home...happy wife...no kids!

Yes – I indeed had fun moving into a freshly minted house with a happy wife.  But, then we went to sleep, and then, in the morning, we were fortunate enough to wake up.  But, that's when it hit the fan – I looked around and had a near aneurism cause there was freaking pink EVERYWHERE...!

We installed gorgeous six-panel poplar doors stained rich, dark-cherry brown throughout the house, and baseboard trim to match.  We thought it'd be gorgeous and would help the walls "pop".  And it certainly did; but, it made our bedroom look even more freaking pink. I mean, I opened my eyes and the whole room was pink as pink can be...

Interestingly, though (and this is where the perspective piece begins), things got better by noon-time, and by 6 PM I liked the color on the walls again...

This is when I realized for the first time that color on the walls changes drastically based on the lighting, which is a function of time of day.  I mean, I had always known this, but I had no idea!!!

It's one thing to know something, but it is something entirely different to have PERSPECTIVE!

Let's talk Real Estate...

Thread That Started It
I came across a very compelling and important post like week.  In fact, it was so important that I couldn't restrain myself – I commented, and in doing so I presented myself as argumentative...

Now- those who know me best know that there's not an argumentative bone in my body.  I mean, the only person I ever argue with is my dear friend Brandon Turner, and that's only because he has the uncanny ability to always be wrong – it's truly amazing, really.  But, that's it; I never argue with anyone else!

Indeed, I couldn't believe it, but I actually found it appropriate to come down on a guy for being – successful!  It was for his own good, and many of the more seasoned folks in the thread seemingly agreed.  In fact, this subject matter is so important that I asked Philip Williams and received permission to link to his thread in this post, and here it is.

If you read his thread, you'll realize that this is a very positive post from Phil in which he announces that he was able to acquire 20 units in 7 buildings within 18 months, and credits BP with facilitating his tremendous growth.  He tells us that it was indeed the knowledge and the support that he gained from this community that made it possible for him to get these deals done.

I congratulated Phil in the thread, and I do so again here – congratulations Phil!  However, I also advised him to stop there for a while, and I stand by my advice!

I think I might have hurt his feelings a bit – he'll be OK!  Phil needs to learn that he is living in the early morning hours of his intellectual worth as it relates to his career in real estate investing, and that just like the paint on my bedroom walls, stuff that he thinks he knows will look very different at noon-time; let along in the evening hours.  Phil's current perspective is limited by his ability to anticipate shades...

Now – Phil is talented, which is my bet is that he will figure this out.  But, in order to figure it out he needs to slow down for long enough to allow reality to settle in.

Reality of Real Estate Investing
In Real Estate, there is a very large difference between successfully getting into the game, and successfully remaining in the game long enough to win.  One out of 1,000 manage to get – one out of 10,000 manage to win!

Just like you did, other folks come to BiggerPockets to learn how to get into the game, and we deliver the appropriate hoop-la and hurray – we are good at that.  Unfortunately, we, the elders, could and should do much more to help folks realize that getting in is the easiest thing they'll ever do in this sport.  Staying in this is much more difficult indeed...

The Key
Phil – they key to this puzzle is the front door.  You can not win if what you've bought is the wrong thing – period.  If you buy the wrong thing, or you buy it the wrong way, there is nothing that'll save you...no amount of management, financing, or anything!

And – pay attention now – IT IS NOT ABOUT CASH FLOW!

All cash flow is not created equal, and knowing what to buy and how is a function of PERSPECTIVE – seeing that which can not be seen easily or at all; feeling innately that which few people do.

Seasoning is the driver of perspective.  Perspective is the facilitator of success.

Slow down Philip and you'll grow!  If not, you'll end up like my friend Brandon Turner, who calls every so often to cry on my very large shoulder...

This article Why It's Important to Become Successful Slowly In Real Estate originally appeared on The Bigger Pockets and is Copyright 2014 BiggerPockets, Inc.

Take advantage of this little-known tax "loophole"
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information