Welcome to Chez Cliff!

During my trek down Investor Lane, I’ve been working to understand why people think the way they do.  People project their belief systems onto the world around them, thus forming the paradigm through which they view the world.

"Wow Cliff, that’s deep."

Yep.  And I’m not even drunk.

I bring this up because of the importance in understand that not everyone thinks the same way.  One must accept people for being different.  But that’s where the trail ends.  Accepting why and how they think versus accepting what they think.  I’m very leery of anyone who says "You must face reality."  My first question is always "Your reality or mine?"

Here’s the mini-story associated with this thought. 

This last weekend, I met with a woman who is interested in renting out the second house for her daughter.  The daughter works two jobs plus goes to college.  The mother plays landlord with four rental properties, completely paid off.  She has long term tenants in each unit and wants to keep them all.  In addition, she works full-time and loves it.  Excellent credit with hardly any debt. 

To me, this is a good deal.  Even if it is only for 6 months.

This last weekend, I was explaining the situation to a friend at the coffee shop.

Clifford:  Plus the mother has rental properties.  I doubt highly she would stiff me on rent.  She understands what it’s like to get screwed.
Friend:  On the other hand she knows all the ways to screw you.
Clifford:  . . .

I’m so glad I don’t think that way.

"Dude, I’m in.  I want 50% of the profits and 50% of the decision making authority.  Your idea for this new website is going to be big!"

That was my good friend, let’s call him NewYork, on the phone the other night.

I am surrounded by people who love to start businesses.  Conversations revolve around what the next great "big thing" will be.  We also discuss how many millions we’ll make.

This should sound familiar to anyone who has dabbled in web-design or programming.

A few weeks back, NewYork and I were chatting.  One of the topics I had was an idea for a new money-making, sure fire website.  If those clowns from google.com, myspace.com, digg.com or even youtube.com could do it, why couldn’t I?  After all I am better looking.

Some guy at the coffee shop found my video.
Immediately he asked me to produce this television pilot he’s putting
together.  Of course this pilot is going to be the next big hit.  I
declined his offer.

Here is the situation:  I don’t have time for boondoggles.  If I were to start a project then I would have to throw my heart and soul into it.  So the choice was simple:  keep on real-estating or build the next million dollar website.

The decision was made.  Keep on real-estating.

I’ve learned that focus is key if you want something bad enough.  Real Estate is working very well for me.  That’s where I’m focusing my time.  When starting out, it behooves you to protect your time.  Time is your most valuable asset.  It’s not to be wasted.

With that being said, I’m depriving the world of the next big thing.

One aspect I do enjoy of investing is sleep-loss.

For most people, that sounds like a nightmare.  "What?  Losing sleep over investing?"

Yes, it happens.

Sleeping has never really appealed to me anyway.  Since I saw "You can sleep when you’re dead" written on a mug at Harbucks, I figured it must be true. 

"Another double espresso please!"

This last week, I didn’t get much sleep.  Especially last Friday night.  My brain would not shut off.  It was actually thrilling being able to use my grey matter for something practical; something immediate; something worthy of my full, undivided attention.  Of course by Sunday, my head felt like it went three rounds with a boxing kangaroo.

I loved it anyway.

This wasn’t a quest to try and save my company $100,000 per year.  Nor was it about creating some ground-breaking new product for the company to sell.  This was directly related to my life and, most importantly, I can see the results of it.

That’s why this was all worthwhile.

Something tells me I’m going to enjoy this whole "In charge of my own destiny" concept.

"Single family homes are what is selling.  It’s where you need to stay."

My Real Estate Agent may be wise but he is definitely not on the same page as I am.

After reading this article by Ken, I’m absolutely convinced that moving into commercial real estate is a must.  Not only for the large amount of monthly cash-flow that can be gained but leveraging the rents.

It occurred to me that there are two ways to increase the value of commercial real estate.  There is normal appreciation of the land that is purchased.  In addition, there’s the increase in cash flow of a property that adds to the value of the property.  I’m speaking here of raising the rents.  This, above all else, is what can generate serious money for investors.

A definite plus in dealing with commercial real estate is only investors operate in this realm.  Residential customers seem to make decisions based on how good the salsa is at the local McDonalds. 

Investors don’t turn down an good investment because they don’t like the color on the walls.  This was the case with Strange Man’s client from last Sunday.

"I don’t like this blue.  Can you show me something different?"

The race is on!

Both houses are now on the rental market.  If I can rent both houses before they’re sold, I’ll keep them.

I already have a lead on the second house. 

I feel really dumb.  The perfect tenant is leaving because I didn’t ask enough questions from the start.

The Real Estate Agent reaffirmed that he’s alright with this.  He said he never has any problem with clients who want to hold long-term.  Of course, he makes more money.

It’s nice to know we can sometimes see the bigger picture.