May 20, 2009
Backup or no Backup, That is the question.
Well, in this blog I would like to talk about the importance of having a backup plan to your real estate investments. At this point in my life, I have a great backup due to the sporadic nature of this business. Whether or not you make any money in a month, you still need to pay your bills. Credit is also a huge factor in growth in real estate. The ability to leverage, enables you to multiply your returns almost effortlessly, ha!
Personally, I am in the Air Force Reserves. In fact, when I started I was still active duty working full time. I wouldnt recommend anyone getting into the business, to throw away their current job to chase this career. Unless you have a great amount of backup funds , great enough to flip a couple houses and sit on the mortgages for a while, I wouldnt give up my day job just yet. It was a very tough decision for me when I decided to give up my full time job, in fact I was making two thirds of my income in real estate and investments and I still had a difficult time just saying goodbye to the sure paycheck. Well, in today’s economy you may not have that same reservation about a secure paycheck with businesses closing constantly and a nationwide 10% unemployment rate. Do you have 10 friends? Do you know 10 families? Somebody is unemployed and can no longer provide for their family. Sad, isnt it? Im sorry if that is you, really I am.
Well, to avoid being in that position, or to get out of the unemployment position, start planning. What if, should always be on your mind. Off the tangent now and back onto what is going on with the backup or no backup. I have often found myself not pushing as hard as I am able to push because I had enough money for the time being. I was content, as much as I hate that word. Being content is the worst feeling in the world. Why on earth would you want to be content with your life? Being content is not being happy, it is just not being miserable.
Without a backup plan you put yourself in a dangerous position, but with a backup plan you sometimes fall into the “I am fine” mindset which takes away from your ability to succeed. What do you think, am I off? Do you feel like this?
So the question that I can come up with is,”Do you sink or swim, or do you wade into the water?” They say that if you pay your bills now, you will pay your bills always, how do you feel about that? I believe it, I know I always figure a way to pay the bills. Should I give up the backup plan? Let me know your thoughts and tell me how you feel.
Survive Unemployment said,
May 20, 2009 at 11:31 am
Of course it’s always good to have a backup plan. I would say you should plan for several contingencies.
When you’re unemployed for a long period of time, though, your backup plans might include:
1) Become a hobo
2) Move back in with Mom
Joey P said,
May 20, 2009 at 2:08 pm
Chuck,
Thanks for the comment. I agree with you on the backup plan but do you find yourself not taking the risks that you would be forced to take without a backup plan? I am tempted some days to throw it all to the wind for a “all or nothing” mentality. Thanks again for the comment and I will check out your site.