Dont Wait To Buy Real Estate, Buy Real Estate And Wait!

ready fire aimEver heard of the book Ready Fire, Aim?  It’s a motivational book for entrepreneures based on the premise that you need to take action, intelligent action that is.  Forget the business cards if they aren’t perfect, don’t worry about the website if it’s light on content, no need for that branding consultant, what you need is an action oriented approach to get business in the door, and then worry about improving the marketing.  This is great advice for anyone starting a business, in fact if you are planning on starting a business you may want to read this book first!  You cannot fear ‘failure’, notice how I put failure in quotes, because for most of us, failure is really a stepping stone, a means of learning from and bettering our situation.  We are so insulated from failure; society, parents, friends all provide motivation for us to, not fail.   We should look at ‘failure’ as a positive, motivating term.

How does this apply to real estate:

Reading this book made me remember my first investment property purchase and my co-workers husband Rick who was also very interested in buying a rental property, he just couldn’t pull the trigger.  He would call me up and ask questions about real estate investing, which at the time I knew very little about.  He was the analytical type who would spend his weekends touring rental properties, creating spreadsheets to analyze data (for when he would have data to analyze) and doing just about anything you would need to do to prepare to invest.  For some reason though, he couldn’t get past being overly analytic, he didn’t have the capacity to rely on his gut feelings.  Bless his heart, he was suck at ‘Aim’ in the book; Ready, Fire, Aim.

How I was different:

I am not trying to brag, or say I made the right decision, I was just different.  I was naive, trusting, and optimistic.  I’m sure I didn’t ask the right questions, and I’m sure I would do it differently now.  But you know what, I did it, and you know what, it has turned out to be a wise investment.  My property cash-flows upwards of $500 per month, I have paid off   my tenants have paid off nearly $40,000 in principal in 9 years, and on top of it all, I have saved thousands in taxes.  It hasn’t been all peaches and cream though, as I have had some bad tenants, been sued, had thousands in maintenance issues, and a few heart stopping agonizing phone calls!  But all in all, it has been a worthwhile investment, enough to make me want to buy my second investment property.

Rick has yet to buy his first investment property

Now, I am not busting on Rick, he is a great guy, I just know how passionate he was about investing when we talked back in 2005.  To my knowledge he hasn’t pulled the real estate investing trigger yet, something is holding him back.  He’s 55 years old, closing in on retirement and his job security is less than… well, secure.  Back in 2005 he had a considerable down payment available, so he really could have made some headway with paying down his principal these last 9 years.

Remember ‘Forced Savings Account’!

Let’s face it, Americans are terrible savers! Many of us lack the self-discipline to pay ourselves first by doing things like; making monthly deposits into a savings account, an IRA or a 401k.  If you have a month with above-average expenses, will you still contribute to your savings plan?  In most cases your knee jerk reaction would be to pay yourself less, if at all, for that particular month.  Human nature shows that when expenses go up, contributions go down.  Real estate is a long term, Forced Savings Account with tax benefits.  Wanna learn more about investing in real estate, read about it at  Don’t wake up ten years from now and regret, like Rick does, that you didn’t take advantage of when real estate was ‘affordable’.




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  1. Brent @ Vosa says:

    I like that you’re taking action. I lot of people get caught up in analysis paralysis mode and never buy anything! I see that you now that the 4-plex and the acreage in your rental portfolio. Are you planning to add more anytime soon? If so, what are you interested in buying?

    • Jim says:

      Thanks Brent!! I would like to add more, just gotta get my wife on board. I’m actually interested in a 48 unit storage complex, and on the property it has a single family dwelling which is on a 3 year lease. Price is $195,000, in rural Tennessee, I think its a good deal. Maybe I can convince my wife?

  2. Man, I am just like your friend. We have enough saved to buy a property outright, but keep procrastinating. My wife will be abroad until July, and I’ll be away as well for a couple months, until June. But maybe this is just the latest excuse to procrastinate: to use our time abroad as a crutch to put off taking action until the summer…which might turn into the fall, and next year…

    • Jim says:

      Well DB, real estate has been great, if I had my brothers, I’d be doing it full time! That said, its not for everyone and there are lots of other great investments which you, my friend, know very well!

  3. Thanks for this, Jim. Since we are strongly considering real estate investing at this point, this post has been a huge help for us. Great info here!

  4. Rezdent says:

    +1 for this – thank you.
    I know several folks in a similar situation to your friend. After initial analysis, they should pull the trigger. But they get caught in a loop of analysis paralysis. I used to get stuck there too. Now I do an initial analysis and then a 2-question “gut check”; what’s the worst that could happen? Can we handle it if it did happen? If so, DO IT. Correct course as needed.

    • Jim says:

      It’s hard to just do it, there are many things that can go wrong you just have to have that confidence that if something does go wrong you can overcome it. You also have to weigh the pro’s and potential cons, what is the worst that can happen?

  5. I’m glad to hear that you came out of your rental purchase lucky and financially ahead. For some of my projects, the getting going is difficult, as I usually have concepts ass-backward when they work in my mind. For example, I can know how to market something before I have the product in place, that’s just the part that lines up the most easily for me. 2014 is going to see a few projects come to fruition (they better!)… so hopefully I can get the Fire part under control.

    • Jim says:

      Anne, thank you for the kind words! Sounds like you have a gift for being able to recognize what people need or desire, guess that is why you are so good at finding what gifts will be a good fit for people. Look forward to seeing your growth in 2014!

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