Real estate investing takes a little bit of risk. But why do we take that risk? Because we are seeking security.
I thought of this last night at 2:54 am when my three year old came running down the hallway crying. She entered our room and jumped up on the bed and crawled in between her mom and I. Seems she had a bad dream that there were spiders in her room and they were “getting” her. (Hey, she’s three.)
So she risked getting out of the safety of her covers to run down the hall where she knew she would be secure. Secure between her mom and dad she knew nothing would dare touch her there. Every parent knows what I’m talking about.
Do we ever really grow up?
One of the most common situations I face as a real estate investment adviser is when a husband and wife come in to meet for the first time. One or the other will not be 100% on board. And usually the more willing of the participants is looking to me to help convince the spouse.
Sorry, I don’t do marriage counseling. 🙂
But I am more than willing to layout the risk versus reward factors. Is the risk and the additional work you are taking on worth the security you are seeking? Security for a Retirement Worth Having. Only the couple, together, can answer that.
There are ways, of course, to minimize the risks you take when buying your first income property. Find a real estate agent that understands residential real estate investing. Understand the numbers of a neighborhood. (Vacancy rates, rental rates, turn-around times, appreciation rates, etc.) Understand the numbers of the financing choices available. Understand entry and exit strategies. Have ready cash reserves.
Sooner or later everyone needs to decide what they are going to do about their financial future. I commend the the 20-33 year olds who are already moving on their future. But in fairness, that’s a group more ready to embrace risk. It’s the 35-50’s that have earned something, have assets in play and are deciding on whether to risk those assets or not that I’m talking to here.
Evaluate the risk. And decide it it’s worth the security you will have later down the road if all goes well.
I’m about 99% sure tonight is the episode that my friend Doug & I are extras on the set of Boston Legal. I’m told we’re the third scene from the end. It will be a dinner scene in which I’ll be sitting off the right shoulder of Denny Crane (William Shatner…Bill to his friends). 🙂
See diagram for what I remember the scene to look like. Keep in mind we are supposed to be in a restaurant so I’m eating the same salad for almost an hour. But such is the life of us Hollywood stars. 
Here is a photo of Doug Dickerson and I getting our photos taken on the famous balcony. This photo was taken immediately after the shoot so you can see the crew in the background breaking down while a set director hurriedly took our picture. 
“This is the most humiliating yet of my many public embarrassments.”
There is good debt. And bad. Most is bad. 
Here is a special shout-out to my friend down in Austin, Texas…Lani Anglin-Rosales. Because you are in football country and probably still basking in the glory of “Signing Day”, I thought I would send you a reminder.
BBQ Capital | Kansas City Real Estate Investing 