Achieving success in our experience, often means that a lot of people had to do their part so that your overall plan is realized. A breakdown anywhere along the path to completion can be frustrating and undesirable. In the past, when we have been hastily speeding toward a goal, ignoring prudent evaluation of steps along the way, and it has sometimes prevented us from reaching our desired outcome. What do we mean?
When we were anxious to acquire as many rental properties as possible (early in our careers), we leveraged every resource to acquire a multitude of properties, expecting the revenues would sustain the debt, there may have been oversights for considering an adequate set-aside for vacancies and repairs. Such blurred vision resulted in the loss or liquidation of some of those properties before it was planned. The goal was so clear but the execution could have been better. Lesson learned. In the pursuit of greater cash flow positions, we have learned it is imperative to shore up every step of the process so we can buy and keep (continually show cash flow positive results) a property. Quality and quantity but worst case quality over quantity. Residual profit only happens when you keep the property.
We have found the same potential issues in conversations. Recently, someone was badgering a partner over an extremely small detail worth about $99 when if said party would have been less quick to turn negative and investigate more first, would have discovered there really was no problem in the first place. However, this party was so quick to assume the worst and respond, the first party ignored the fact that they were risking a $600,000 plus profit potential with the second party. When the dust settled, the first party felt better in the moment but ultimately regreted even that small victory…and lost a much more lucrative opportunity. The point, is that whether you are acquiring properties or engaging in conversations, it may be beneficial to know the facts before taking action based on assumptions. Dollars are worth more than dimes. We hope this helps.
We can not and do NOT provide any accounting ,tax. legal, investment, nor financial advice.