This week in Summary
Investing Tip of the week
Years ago my contractor (at that time) asked if I could help him with his business. He was working hard and making money, but struggling to pay his bills every month. He couldn’t understand why he wasn’t doing better.
After reviewing everything, I realized he was not taking into consideration the overhead costs of running his business. In reality, he was (for that current year) LOSING money each month. When I suggested he would be better off staying at home, sleeping in, and doing nothing, he didn’t get it. I explained, but quickly understood he was going down and would never fully understand what hit him.
I hope you got the point of that story, because I want you to get the point of this tip. It’s more of a business tip than an investing tip, but here it is:
Compare everything with everything.
If you work hard on a real estate deal and make a 5% return on your money, please rethink what you are doing. There are a number of passive investments that make a better return than that. Why do we suggest you seek an 8-9% return as a minimum on your buy and hold properties? Because you can make nearly that much passively. In fact you can often make more than that, but won’t enjoy some of the tax advantages.
Joke of the Week
Q: What do you call a cat in the desert?
A: Sandy Claws
Q: What do you call an elf that runs away from Santa’s workshop?
A: A rebel without a Claus.
Hey we never said they would be all that funny – but they ARE family friendly!
Blessing of the week
May you have:
A world of wishes at your command.
God and His angels close to hand.
Friends and family their love impart,
And Irish blessings in your heart.
Flipping America News
Remember that big opportunity we talked about last week? Well, it looks like it is sold. But it’s taking a lot of time and energy, so we were light on broadcast content this week.
The Flipping America REIA welcomes new groups this week in Oklahoma, St. Louis, Bangor, Maine, and Washington DC. This brings us to 39 groups nationwide with 19,787 members as of this writing.
Got a funny, clean joke? An interesting real estate story? Submit them to firstname.lastname@example.org.
Real Estate News
According to this article in US News, here are the 10 best places in the US to live next year. Number 3 makes me distrust the entire list…
Colorado Springs, CO
Green Bay, WI
San Jose, CA
Raleigh Durham, NC
San Francisco, CA
Coming Next Week
Benson Juarez from Privy Software practices what he preaches.
Chris Larsen from Next Level Income talks about a car wash syndication.
David Pritchard is a “Fractional CFO”, showing you how to apply “Profits First” principles to your real estate business.