Real Estate Investing
This quote by Seneca, a Roman philosopher from the mid-1st century AD, has been one of my favorites for years. It’s a great saying because it reminds us that we create our own ‘luck’ based on the things we do, or do not do. But never did this phrase resonate so strongly with me than it did in my early days as a full-time real estate investor. That’s when I first seized the meaning of this saying and put it to quick and successful work. It happened in January 2004, when I was still a “rookie” investor.
It had been only 8 months since I had left the corporate world, after 18 years of “working for the man”. I had been fortunate to gain a wide variety of experience, with 5 years in public accounting for a huge CPA firm; 6 years as the Corporate Controller and Director/VP of Finance for a $100 million consumer products company; 3 years gaining Sales/Marketing/Operations experience with a Fortune 500 technology company; and then 4 years as COO/VP for an international software company. My jobs took me to many places, here in America as well as overseas, including Europe, Asia, and Africa. I made a good living, averaging 6-figures compensation plus expense accounts, medical benefits, 401k contributions, and the like.
But I was still “working for the man”. No matter how well I performed, the company would receive the vast majority of the dividends for years to come. I made a decent living, but didn’t have the luxury of significantly improving my lifestyle or controlling my own schedule. So when the opportunity presented itself, I began earnestly building my new future, and that started with a real estate shopping spree in mid-2003. At the time, I had been a full-time investor for less than a year, and a part-time investor since 1992, and while I had already done 25+ deals, they were all traditional buy-and-hold transactions.
I would buy the houses below market, get them into rent-able condition, and then find lease or lease-option clients to cover my mortgage (and provide some cash flow) while I built up equity. I had yet to step outside of that comfort zone, even though I had read about the many other ways one can make money in real estate. It’s one thing to read about it, but quite different to take the plunge and dive in. What if I missed something in my analysis? What if I don’t have the correct documents to protect me properly? What if….??? Maybe that was my collegiate and corporate brainwashing coming out– get education, then analyze. Make a list of all the downsides, and then analyze some more. Paralysis by analysis can be the result.|
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