Start Where You’re At & Don’t Despise the Small Beginnings

This morning I sat down with a friend I hadn’t seen in almost 20 years. So, naturally, it was almost nostalgic when I first walked into Starbucks to see this friend, we’ll call him Jim, sitting at the table waiting for me to sit down and join him. We had one hour to catch up on 20 years. He told me about his two boys who are all grown up now, his wife and their fairly successful small business, and even his two-month old puppy that chewed the corner off of his brand new leather sofa last month. Better him than me. But as the conversation got a bit deeper, he proceeded to tell me about a few investment choices that ended up hurting him financially. I couldn’t help but think ‘I’ve heard this story before.’

The truth is, a lot of people who have lost money in their investments, whether it be real estate, stocks, etc, are reluctant to begin investing again. However, it’s important to remember that, like all lofty events or cycles, there is a recovery side to this. So if you say you’re done with investing, I ask: why? There has never been a better time to acquire hard assets (homes, investment properties, commercial income properties, etc). And, I’m sure this isn’t news to you. Now, there will be those who say that they aren’t in a cash flow position to do much about this. But, that doesn’t matter! Start where you’re at and don’t despise the small beginnings. Selling a boat, RV, and/or your golf membership may provide enough cash release to buy a Real Estate Owned Property. Some of these properties are going for as little as $20,000-$30,000 in parts of the country and can generate a rental income of $700-$800 per month if handled properly. And $10,000 yearly income for $25,000 invested is a 40% ROI! Compare that to your boat, whose fuel usage is measured using a stop-watch, not a gauge, and you might be on to something.

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