You can either make excuses or make progress, but never both!
Every year I talk to countess “Investors” who:
* Have been thinking about investing * Have been reading about investing * Have a friend who failed at investing so that means you'll fail (The elusive friend) * Are saving for a down payment * Are Waiting for rates to go down * Are Waiting to finish their real estate course * Are Waiting for their mentor to tell them to buy * Are Waiting for summer (insert any season), to get started * Are Waiting for the market to straighten out * Waiting till they can afford it * Waiting till they get a promotion * Waiting till their friend or relative can partner with them * Trying to read just one more book, then they will get going * Waiting till they buy their own house * Waiting till they get a raise * Waiting to graduate from college * Waiting till their friend or family member becomes a realtor * Waiting to be married * Waiting till they contribute their maximum to a 401k * Waiting till they get done working on their own home
Then after giving me their excuse for waiting to start investing they ask:
* What happens if the toilet gets clogged? * What happens if the furnace gos bad? * What happens if tenant ruins the house? * What happens if the roof leaks? * What happens if the tenant doesn't pay? * What happens if someone breaks a window? * What happens if someone leaves a broken down car at the house?
If they don’t have the question, they usually tell me about a friend or relative who had one of the above happen.
The questions that they SHOULD be asking but NEVER do:
* What happens if I don't start investing now? * How many homes do I need to buy in order to retire comfortably? * If you could share with me your best idea, what would it be? * What kind of money am I leaving on the table by not investing? * How does the stock market compare to real estate? (that doesn't even deserve an answer) * How can I use real estate to make my dreams come true? * What would I do with an extra $500 or even $5,000 a month in cash flow? * How will my family react when I retire 10-20 years earlier? * What are my broke friends going to think when I show up in my Porsche?
99% of people share this problem: If a family member or friend needed $500, most people would need a ton of convincing to loan it to them, and if it wasn’t repaid it would surely be a BIG problem, some people would even lose friend over such a small amount of money. But that same person could care less about the $500-$10,000 a month that they will lose each and every month for the rest of their life by not investing in real estate.
Why doesn’t anybody pay attention to their opportunity cost?
I used to be a tight a##, then one day I got to thinking.
What if instead of worrying about ways to save money, I started just focusing on ways to make it?
That simple question changed my whole life.
Hopefully most of you are making progress and not excuses, but…