Think and Grow Rich
Think and Grow Rich
The Science of Getting Rich
The Science of Getting Rich

Matt Napier's Real Estate Warning to InvestorsSince the beginning of the Great Recession, there has been a debate on cash flow between real estate investors, many of whom learned some tough lessons when the Recession began (including myself). Specifically, the debate is: What kind of deals should you focus on and how is your money best used!? Should you focus on creating equity or focus on creating solid income and cash flow?

You may be saying that they don’t have to be mutually exclusive. While that is correct, many investors tend to focus on either building equity OR cash flow. To me, the decision of what kind of deals to focus on is made easy if you boil it down to one thing- how much money do you need right now to live the lifestyle that you are already living (provided it’s already a decent standard of living) and do you already have enough cash flow to live off of on a monthly basis? If you do not have enough to live off of, do NOT focus your efforts too heavily on equity build up. Instead, focus on cash flow (quick flips, wholesaling, and only rentals that will generate strong cash flow); investments that will put cash in your pockets within 1-9 months.

One of my mentors when I got into real estate investing nearly a decade ago, Del Hinds, who headed the SCREIA, made a point of continually telling me not to focus too much on gaining long-term equity, until I had enough to live on today. His famous words still haunt me- YOU CAN’T EAT EQUITY! I also had another mentor that swore to me, you better have a sure fire exit plan and back up strategy if it doesn’t work. I will explain that more in a minute, but for now, let’s talk about Del’s words. At the time, I thought that he just had a different approach to investing, but he was 100% correct. Although I’d built up a significant pile of equity in properties, that was slowly being squeezed out each month when the Recession hit and since I didn’t focus on strong cash flow from the beginning, the $100 to $150 I was making per property on gross rents (before expenses) barely covered basic maintenance and vacancies, meaning my true profit per month on rentals was close to zero.

This serves as a warning. If the economy goes into another recession (which is certainly possible given the lack of fundamental improvement in the economy and massive spending by our government) and you do not have more than enough cash flow to live on already and are focusing too heavily on equity, change your focus… FAST. Focus on wholesaling, rehabbing, and flipping properties, or if you do buy rental properties, ensure that you have at least 30 to 35% cash flow after PITI payments plus a 10% allowance for vacancies and a 10% allowance for repairs (I actually look for 50% net cash flow now). Just because there are enough properties with potential equity that we can buy all day long right now, don’t buy too many properties too quickly if the strong cash flow isn’t there, and if you’re choosing not to re-sell them right away. Your equity may get squeezed out and you may be stuck with a property that you can’t sell for what you thought, and then you’re holding onto properties that aren’t cash flowing well enough to make it worth your time. You’re one of the smart ones though; you know to focus on cash flow, and thus, you will be a successful investor.

Matt Napier

With nearly a decade of experience in specialized niches of real estate, Matt is considered a highly knowledgeable real estate investor in the Charleston, South Carolina area. Matt has dedicated himself to learning highly specialized skills which allow him to find high-return real estate investments for his clients and his investment company, The Napier Organization. His company offers high-return investment opportunities to select individuals and funds, secured by real estate. In his free time, he enjoys coaching new real estate investors on the technical details of real estate investing.


how-to-appreciate-the-present

There is a saying, “Stop and smell the roses.” It doesn’t mean to simply smell flowers, it means to live in the moment with a great appreciation for the present and the things around you.

So let me ask you…

Do you ever stop to smell the roses?

It’s very easy to get completely caught up in planning for the future, that we often forget to take the time to appreciate the wonderful things happening in our daily lives.

I’d like to offer 3 things you can do today to live in the present and start appreciating the moment.

1) Become Very Self-Aware

The first thing you can do to live in the present is to become very self-aware.

To perform your best, acknowledge the beauty of your life and be happy, you need to know who you are and why you think and feel the way you do. You are where you are and what you are because of yourself.

You have gotten yourself to where you are as the result of the choices and decisions that you have made in the past.  If you want to be somewhere else in the future, it is up to you to make new and better choices and decisions in the present.

2) Embrace Your Natural State of Being in Life

Next, start to embrace your natural state of being in life.

Your normal, natural, healthy state of being alive is a wonderful gift and should be treated that way.

Try to tune into the amount of joy you experience and the number of times you laugh on a daily basis, to demonstrate the fullness of your current life position. Acknowledge these moments and be grateful for them each time that they happen.

Eventually, reacting to these moments with gratitude will become a habit, and you will start to feel happier all the time.

3) Develop an Attitude of Gratitude

Lastly, if you want to be truly present and benefit from appreciating your daily life, you must develop an attitude of gratitude.

The habit of feeling grateful and expressing that gratitude to other people, by saying “thank you” to those in your life, and to yourself for all of the wonderful things in your life every day will have amazing effects on your personality, and your ability to live in the present.

An attitude of gratitude makes you a warmer, friendlier, and more genial. An attitude of gratitude makes you more sensitive and more aware of others around you and your environment.

The more gratitude you have, and the more gratitude you express, the happier and brighter your life will become.

When we are thankful to others and express a wonderful attitude to those around us on a regular basis, we can change the lives of others as well as our own.

Start each morning by saying, “I believe something wonderful is going to happen to me today.”

Repeat it over and over.

What are 2 things in your daily life that you are grateful for?

Leave a comment below, and I’ll be sure to follow up with you.

To learn more about appreciating the present and fulfilling your true purpose, click the button below to get my free guide: Living By Your Personal Code.

 

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How to Live in the Moment & Appreciate What You Have With These Tips is a post from: Brian Tracy's Blog

Why? Why? Why? Why? Why? Why? Why?

The subject of this Zignificance email is 7 X Why?

What is your Why?

Is your Why written down?

Are you working towards your Why every day?

My Why is Legacy.

My personal mission is to help you become significant by equipping you to help others become significant.

The post Why? Why? Why? Why? Why? Why? Why? appeared first on Ziglar Inc.

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