Tips, Advice, Rambles.
Tips, Advice, Rambles.
Do's & Don'ts - Wealth, Career, Life.
As 2020 came to a much-needed end, transitioning to 2021 has been rather “uneventful”. Though 2020 left us in horror, panic, distraught, and almost always confused, I’d like to share with you some tips, advice, and some rambles that have helped me get through this year.
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Changing the world without any money is a fool’s errand. Do you know who really influences the world we live in? The folks with money. Make money first, change the world later. Follow the path that allows you to grow.
If it’s easy it isn’t worth doing. Life begins at the end of your comfort zone. Show me a “successful” person and I’ll show you someone who embraces uncertainty and pushed back that self-doubt to take a chance.
Books are not overrated. Conversations are underrated. Experience is how you learn but it’s not necessarily how you get better.
College isn’t worthless for everyone. All of the successful folks who tell you college is worthless went to college. What does that tell you? It’s not about learning one subject, per se. It’s about growing and learning how to sell yourself and your ideas. For those tittering between finishing college or not attending at all- that’s totally up to you. Follow the path that allows you to grow.
Miami isn’t the next tech hub. Texas isn’t going to magically allow you to keep more money. Moving to LA won’t make you the next influencer. Construction costs, moving costs, re-transmitting your daily compass, expensive property insurance, extreme weather- is it worth moving to accomplish your goals? The simple answer is, “roll the dice”. Follow the path that allows you to grow.
Starting a business isn’t right for everyone. 95% of folks are better off getting a job. It’s hard. Decisions are critical and plentiful. Risk is for real. Stress is crippling. Delegation can be impossible for poor communicators. Most folks don’t have what it takes. Follow the path that allows you to grow.
Technology isn’t as far along as the media makes you think it is. We’re 5+ years away from truly autonomous vehicles. Alexa still can’t play the song I want 25% of the time let alone make decisions and “learn”. Robots fall on their faces when they aren’t on perfectly flat ground. Facebook knows your pinpoint location, while emergency services take 10+ to respond to a call. Taking civilians to Mars is 100 years away. Incorporate technology that allows you to grow.
Getting rich quick isn’t possible. The media tells you the stories of overnight successes. But that’s all bullsh*t. It gets clicks but it doesn’t work that way for 99.99% of successful folks. Follow the path that allows you to grow.
Money isn’t your most valuable asset. Time is much more important and unlike money, you can never get it back. Use it wisely. Follow the path that allows you to grow at your own pace.
Choosing your competition is much more important than you think. Who would you rather compete with? The group of folks with VC money and Stanford degrees or the guy down the street who used a fax machine? Follow the path that allows you to grow.
Working hard isn’t going to get you ahead. A lot of people work hard for 70 hours a week until they die. Why do we glorify that? Making good decisions and working SMART is much more likely to make you successful. Follow the path that allows you to make great decisions.
You can’t have it all right now. There is a difference between rich and wealthy. Rich people buy nice cars they bought with their first check. Wealthy people buy assets that send them money every month so they can work less. Follow the path that allows you to live on your own accord.
Building something that can add a little bit of value to millions of people isn’t the way to succeed. You’re way better off building something that can add a lot more value to a very small subset of the population. Riches are in the niches. Follow the path that makes your community excited.
The real opportunities aren’t online. Being a digital nomad severely limits you from taking advantage of the largest barrier to entry that exists: GEOGRAPHY Real estate, service businesses, etc. Wrap in technology sure, but compete locally. Follow the path that brings you home.
Software engineers aren’t going to be the leaders of the future. Folks who can look someone in the eye and build rapport and sell themselves and their ideas will. Learn to communicate if you want to set yourself apart. The next generation is severely lacking in this area. Follow the path that brings you home.
Going big is a terrible way to start. You’ll end up likely failing and going to get a job. Start small. Low risk. Learn and take opportunities as they come. Batting average > slugging percentage. Follow the path that allows you to grow.
Business isn’t about who you know. It’s about momentum. Impress someone in a small way and you’ll get a bigger opportunity later. What you’re doing right now will look nothing like what you’re doing 10 years from now if you’re doing it right. Follow the path that allows you to grow.
Too much weight is put on the tail events when you make decisions. Often times one or two main levers determine 90% of your likelihood of success. Focus on those. The rest is noise. Follow the path that allows you to grow.
Rambles on Real Estate: A Millenials Quarrell.
Our parent’s generation did not have it easy. They worked their entire lives from nothing, in order to secure the American Dream through, you guessed it! REAL ESTATE.
Should young people today put their nest egg in real estate as their first major investment?
HELL NO!
Real estate isn’t a good place to start. Young people do not have the luxury of time that our parent’s generation had. For young people, real estate is terrible at generating wealth compared to other forms of entrepreneurship. An inheritance or a bankroll of your own? Sure. Everyone else? Start a business or make money some other way. The odds are much better.
Early in your career, you need to double and triple or create cash from nothing. That’s hard to do in real estate. It’s good at growing your wealth over a lot of TIME. Early on you don’t have time. Do something else.
Don’t “just buy that first property”. I hear this so much but it makes me angry. Assets are overpriced right now and yield is tight. Even if you’re moving from LA to Nebraska, chances are, that asset is overpriced. Overlevering right now is very risky. Look for cash flow, not appreciation. Cashflow is TIGHT out there right now.
If you want exposure to Real Estate, want to have a feel for what it means to earn income from a rental property, take a look into investing in REITS, common stock’s with high dividend yield, or an ETF that’s investing in premier real estate firms around the world.
KEY TAKEAWAYS
REITs allow individual investors to make money on real estate without having to own or manage physical properties.
Many REITs are publicly traded on exchanges, so they're easier to buy and sell than traditional real estate.
Don’t have to deal with tenant issues, maintenance emergencies, and liability if there are any accidents on the property.
Being approved for a mortgage or some other type of financing to pay for real estate is not easy. If the market tanks or you have difficulty finding quality tenants, there's the chance you could default on the loan.