Archives For real estate

Balance Sheet…

August 5, 2011 — Leave a comment

Did you check your 401 (k), IRA, or other market account this week?  Are you nervous about how low it will go?  Merrill over at Longhorn put a post on Facebook today that got me thinking…

Here is his post:

“Someone in Texas, please show me where your investment or your private lending position on Texas real estate dropped 4% today or 12% in the last 10 days. I didn't think so.”

I thought, dang, he is right!  

  • The market was horrible this week, yet, I still got my rent checks!
  • The market did horrible this week, yet I still wholesaled an investment property!
  • I don't have to look up my value, because my rent houses and owner financed notes haven't changed this week!
If you aren't moving and shaking in real estate, ESPECIALLY DFW real estate, come one, get in the game!
See you online;

Law of averages…

July 31, 2011 — Leave a comment

So, have you ever quit?  Come on, be honest!  You know you have!  We all have at least once.  In these types of markets, and financial times, it is important NOT TO QUIT!

When things aren’t working, we get creative, make changes, and try to improve.  Many times, these changes are GREAT IDEAS, but due to desperation, we don’t give them time to work.  It reminds me of when I was in the Marine Corps, learning about water survival.  A drowning man is one of the most dangerous things in the water.  You can swim out to him, say, “I am here to help”, and he will try to pull you under to stay afloat!

Don’t thrash about.  Be calm and still the waters.  Remember these phrases when faced with adversity:

“Slow and steady wins the race”

“Consistency breeds success”

“Consistency will make you wealthy in this business”

“Base hits win championships” 

 

See you online!

 

I must give credit to John Maxwell for the subject line.  His book, Talent is Never Enough, came to my mind last night as I watched a “talented”, “athletic”, “superstar” Dallas Cowboys team deflate, and fall flat on their faces.  The talent on the Cowboys roster produces hope.  With every fumble, every interception, and every spectacular touchdown, Cowboys fans world wide clung to the hope that “America's Team” would find a way to pull through.

Inevitably, the talent, couldn't produce a win.  You see, football is a team sport in which 11 players must all hold up their end of the deal for the greater good.  It takes discipline and selflessness to make the talent achieve the goal.  You can liken it to the New York Yankees.  Their payroll (and history) is 400% greater than the Texas Rangers, yet, the Rangers beat them convincingly in a six game series.  The Rangers are a team with talent, but more importantly, a sense of team.

Real Estate investing is a lot like baseball.  If you have ever listened to me teach my Baseball for Real Estate concept, then you know why.  If not, allow me to explain.

I have never met a successful real estate investor that didn't have a team.  Not necessarily a full time staff, but more a collection of advisers and providers that were available to the investor when needed.  As with the Texas Rangers, the supporting team doesn't have to be the highest paid “players” available.  What you are looking for is a supporting cast that has the same goal as you, success.

Step one to this, is knowing your position, and accepting your limits.  In life, and business, you should not stretch to do more than you can.  What happens as a result of stretching too far is you find yourself out of position.  To use baseball terms, if you are the center fielder, stay in center field.  Sure, you can go to right center, or left center (just make sure you communicate) but you cant leave center field.  If you try to play right field, because you don't have a teammate to help with that position, you leave a large hole in the middle of your defense.  Some examples:

1.  If you are great at accounting, don't try to be in charge of lead generation.  You should outsource it to a “team member”.  This team member could be a host of different providers.

2.  If your are a great “buyer”, don't try to be the sales manager too.  You'll find that you end up not doing either of them well!

That's it for today!

Have a great day investing!

 

Tim

Tim Herriage
DFWInvestors.com
tim@dfwinvestors.com
214.607.1227