WEALTH PLAN REQUIRES THE RIGHT VEHICLE
When you understand goals are the objective and not the vehicle, it helps you “zero-in” on an investment plan that makes the best use of your time and resources (money). For example, in my case I needed to quickly develop monthly cash flow without paying a ton of cash for my properties (which I didn’t have). Only certain types of properties will provide cash flow, so that’s where I directed my energies. Also, another one of my goals was to quit my regular W-2 salary job. That set up tight restrictions on my time limits because I had to have money to live on within a couple of years from the time I started buying properties.
One major failing on the part of many start-out investors is they develop tunnel vision! They unknowingly create blinders for themselves. They are concerned about the vehicles more than the benefits. If you do that, it’s very difficult to achieve your goals in a predictable time frame. That’s the main reason investors can go alone for many years buying properties – but never have any cash flow. They can only brag about their imagined equities.
It’s my feeling that all investment portfolios should be DIVERSIFIED! You need some properties that provide good cash flow and some that just occupy the lot waiting for appreciation or higher and better usage. By setting goals, schedules, time limits and minimum cash return requirements, you’ll quickly determine which kind of properties you need—and how many of them it will take to get you where you’re going.
ALWAYS STAY IN CONTROL OF YOUR INVESTMENTS
If you study my investment strategy, you’ll learn rather quickly that I insist on having TOTAL CONTROL over my investments. This particularly applies to the financing when I purchase properties. Most older rundown fixer type houses should not require new bank financing. Always try to get sellers to finance the sale or most of it! Seller financing is flexible and cheaper. If you buy affordably priced properties (medium to medium low range), most people can afford to rent or buy from you. Conversely, if you buy high-ticket properties, you will limit the number of people who can do business with you.
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