Being Flexible to Reach Your Goals

Imagine that you take the same route to work everyday.  It takes 45 minutes door-to-door. But something happens.  Maybe a 6 month construction project. Now it takes 1 ½ hours door-to-door.  Without skipping a beat, your mind immediately starts thinking of new routes to get to work.

That’s what real estate investors should be doing, but it’s tough to let go of what’s worked in the past.  We resist change. For the past 8 years, everything you purchased has turned to gold. Your net worth has swelled.  You’re richer than your bosses boss. You’re a genius.

But now you’re noticing the deals are harder to find.  Nothing cash-flows the way it did before. There are more investors competing for fewer properties.  Should you change your acquisition strategy and trade in cash-flow for appreciation? Or sit and wait?

And we are horrible at sitting and waiting.

Forward progress sometimes requires a shift in strategy.  Envisioning the end goal is the only way to know if you are making good decisions.  

My goal is enough cash flow to retire from the cubicle.  Although there may not be as many great deals in my market, the opportunities are plentiful for increasing cash flow.  If you live in a big city, with sky-high valuations, your best use of capital may be to reinvest into your current properties.  Spend some money on improvements and push rents up. This will likely increase cash-flow and get you to your goals faster.