Category Archives: Personal Real Estate Opinions

My son and I had a little situation the other day that I thought I would share with you.  He’s fifteen and working his first job a Chick-fil-A.  I think that’s great.  It show initiative and a desire to produce.  My only stipulations to him working, and I explained them up front, is that:

1. Grades/school come first.  If those slip, you’re done.
2. 10% of your earnings go into a savings account when you cash your check.

In my mind those two stipulations are unbend-able and not negotiable.  End of story.

Well, the first check he cashed he put in 10%, though he did grumble a bit.  We sat down that day and I penciled out for him the power of savings and letting your money work for you.  When we were done he looked up at me and said “Wow.  I’m going to be  millionaire someday.”

So I thought I had gotten through to him.  Then the other day he cashed his check, and since his savings account shows up on my electronic banking I noticed that he only deposited roughly 6% of his check.  Immediately, I confronted him and asked him “What’s up?” 

He stated that he had saved a little and that was good.  He just wanted to keep out more money so he could buy that such and such he wanted from Best Buy.  And besides, he had put aside a little bit.

Are you any different from that fifteen year old who is just beginning the earnings part of his life?  Are you tempted to save a little less than you know you should so you can get the cooler car?  Or the bigger house?  Or eat out more often? 

Wanting things is no sin.  Not saving money, or investing money, is no sin either.  It’s just not smart economics.  You’ve heard a million times “Pay yourself first.”  So why don’t we do this?

If you are in a situation where money is tight start where you can.  Can’t save 10% immediately?  Start with 1%.  Or 2%.  Something.  But start the habit.

I cannot control what my son will do his whole life.  But by goodness while he’s under my roof I’m going to do the best I can to build that savings & investing habit while educating him as to the benefits.  He needs to know that if he doesn’t discipline himself life will take care of it for him. 

What techniques have you used to educate your children on investing & saving?

2007 was a funny year for me and my real estate business.  Some of the good things that happened were;

• I expanded my social network with real estate agents and investors all over the country.  From Indiana to Florida to California and to Texas.  
• I elected Jeff Brown my official mentor.  (He didn’t run for office.  It was a write-in situation.)
• My sales, even in this melt-down year, were up 7.3% for the year.
• Despite decreased values all across the country, my portfolio grew (if ever so slightly) this year.

But alas, 2007 brought some major negative changes as well.  I’m looking around and beginning to miss some lenders I used to work with.  They are boarded up.  Real estate agents I know and like and respect are working “part-time” to make ends meet.  Investors I know and liked (but didn’t advise, mind you) are losing some of their properties because they bought more on speculation than fundamentals.

Pruning the tree is necessary to the health of our economy.  But it’s painful to watch and partake in.  I read today that unemployment is up everywhere.  Just more fuel to the fire.

But here’s the deal, are you going to partake?  Are you going to throw your hands up and scream “uncle” or are you going to dig down deep and do what it takes to succeed.  And I don’t care if you are a real estate investor, a telecommunications engineer or a street vendor.  Do your part to keep this economy going.  Work.  Produce.  You’ve got people counting on you. 

And don’t forget that if you haven’t been impacted then you can make a difference to someone who has.  Encourage.  Participate.  Give of yourself.

I’ve been asked to join a Kansas City real estate investing master mind for Kansas City area real estate agents.  The guy heading it all up is one of the few other people in this city that I know understands the ins and outs of residential real estate investment property.  So I’m excited to join on that basis.

It is my hope that I’ll be able to contribute as much as I learn.   It’s also my hope that those of us “in the know” will be able to help those on the beginning of the learning curve better understand what this particular facet of real estate is all about.

It would be so nice to see investment property in Kansas City priced appropriately, in good condition and with readily available data for buyers to see.  Maybe I’m hopeful. 

I firmly believe that the more people that understand the benefits of real estate investing and the proper acquisition of, or the liquidation of, income property the better off we would all be.   And that can start with real estate agents around town that can actually give good counsel. 

I just had the honor of meeting a couple who are thinking of making their first real estate investment.  And they are going about it in the right way, if you ask me.  They have met with at least one other real estate agent, I believe. And they’ve met with a property manager.  And they are asking me about attorneys and tax men and financial planners. 

That is all said to say that I’m proud of them.  Questions were pre-determined and on a sheet of paper.  Of course, both sides were also trying to decide whether they liked each other and would want to work with each other.

For my part I was impressed with their due diligence to this point.  Realistic and attainable goals were discussed and capacity to perform (on their part) seemed more than acceptable.  So they passed my test.  Did I pass theirs? 

Whether I did or not I enjoy those first meetings.  It’s a chance for me to measure the possible client’s interest and knowledge of real estate investing along with understanding their parameters for risk.  I like to lay out on the table how I work, how I’m paid, what I expect of them and in turn what they should expect from me.

Don’t skip this part of the process if you are thinking about real estate investing.  It’s more important than you might imagine. 

I am going to keep this post short and sweet.  What is your focus when it comes to real estate investing? 

Now don’t forget that. 

If someone comes to you with a property way out of your criteria, even if it’s me, just remember what you choose to focus on.  When the time is right, you can expand from there.  Make your money using your core criteria.  From there you can expand. 

But you need to get “there” first.