REI – Acquisition of Rental #3

This post is just a short update on REI. We had a deal drop in our lap.

122.Sagewood.FrontElev

The Deal

We were not specifically looking to buy another property immediately. As detailed in a previous post, we were working on a deal earlier in the year, but it did not work out.

 

A member of the local REIA, who is also a realtor, has been looking out for properties I might be interested in. I had given her the specifics: three-bedroom, two-bath home on a slab foundation, preferably brick façade, in Thibodaux, in a decent neighborhood.

She had showed a couple of homes that were close, but not quite right for us, in addition to a mobile home park that was just too much for us to take on. (This was just prior to my surgery)

She contacted us with a property that fit our description exactly and told us the listing price, $144,500, and to make an offer. She indicated that the sellers were motivated. I looked it over and saw that we would be looking at a similar ROI to the property we bought last year with an offer of approximately $111,300. I did not think that the owners would accept that and they didn’t. They countered with $125,000 and we countered back with $112,451 cash sale with an end of month closing as a best offer. This would give us a ROI of just under 7%, based on a conservative analysis.

We fully expected things to end there. The sellers asked for the weekend to think about the offer, so we agreed.

On Monday, they accepted the offer (to our surprise) and we began the inspection period.

We set the closing date for the first Friday in December, as this was the soonest that the real estate attorney could complete the paperwork.

 

During the due diligence period, we determined that the only things needed were to change the locks, change an over-sized circuit breaker, and some minor cosmetic work.

 

Updated: We now have it listed for rent and are taking applications. The property was rented for January.

122.Sagewood.RentalFlyer2

And, as always, let me know what you think in the comments. Ask questions, tell your story.

 

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Personal Improvement – Gratitude: I am Thankful

For those of you in the USA, I would like to wish you a belated Happy Thanksgiving. We celebrated it last week with a quiet day at home, spending time with family and adding final touches to the Christmas display so we could turn it on Thanksgiving Night.

Gratitude-is-peaceIN

Gratitude

I am going to assume that a combination of it being Thanksgiving in the US and some smart marketing by  @ajjacobs for his new book “Thanks a Thousand – A Gratitude Journey” that made the topic of  gratitude continue to appear in my media consumption. From a podcast of Jacobs talking about his inspiration to write his latest book to memes on Facebook, both expressing gratitude and admonishing for expressing gratitude one day, then scrambling for doodads on Black Friday the next.

 

It got me thinking about how if you truly embrace the idea of gratitude, it helps to relieve stress and anxiety. Where @ajjacobs takes it to the extreme to thank everyone involved in his getting a single cup of coffee in the morning, you don’t have to be that exhaustive.

Be thankful for what you have. Or don’t have. But also remember to not use that as an excuse to stop pursuing your goals.

 

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What am I grateful for?

  • My Family. Without my family, I would not be who I am or where I am today. Specifically, my wife. She inspired me to strive to be greater. She inspired me.
  • My career. I have learned many things that have allowed me to grow outside of my job.
  • My health. Yes, I have medical issues, but I am luckier than a lot of people. As a benchmark, as morbid as it is, I have lived longer than my father and plan to live longer than my mother and grandparents did.
  • My friends. They make me laugh and encourage me.

 

What are you grateful for?

 

Please comment here on the blog about what you are grateful for. I would  like to know.

 

And, as always, let me know what you think in the comments. Ask questions, tell your story.

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REI – Rehabbing A Property: Flipping VS. Renting

Welcome back to me! I was out for the last few weeks due to a combination of work and getting post-surgery treatment for my thyroid.

Today, I am going to go over some differences and similarities between rehabbing a property to flip it and rehabbing a property to retain as a rental.

 

home-exterior-renovation

 

Compare & Contrast

 

What is your “Plan A” for a property in a given situation? That is probably an easy question to answer if you only flip properties or if you only buy and hold them as rentals. Some investors do both.

Ultimately, you should already know what you want to do with your property. Then work on a “Plan B” and “Plan C”, just in case your Plan A doesn’t work out.

 

Compare

 

Whether rehabbing a property as a flip or as a rental, there are a lot of things that you would do the same in either case. Getting the main home systems in working order, such as plumbing, electrical, roof, HVAC, etc. You need these systems in working order and, with the exception of fixtures, don’t need a lot of variation between the two.

Structures should be stable, rooms may need to be added, and/or rearranged.

 

Contrast

 

Rentals

When rehabbing rentals, you want to keep things functional and not too expensive. Depending on the comparable quality of the neighborhood, you may go utilize a higher-end product in a higher-end neighborhood than you would in a lower-end neighborhood.

Especially if you have multiple rentals, you want to go for consistency to normalize your costs. Have a paint scheme, flooring style/type, appliance set, and plumbing & lighting fixtures as a standard so that time will not have to be wasted on trying to decide on colors & styles during rehab and turnovers. Your contractors or turnover specialists should already know what to use.

 

Flips

When flipping, you are attempting to renovate the property to a standard that will make someone want to buy the home to live in. With that in mind, you want to add finishing touches to a flip that you would not consider for a rental. This could include things like upgraded appliances, fancier light fixtures, premium paint schemes, and so on.

All of this assumes that you have the budget to achieve this and still make money on it.

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Plans B and C

I mentioned “Plan B” and “Plan C” above, so I just wanted to touch on that before wrapping things up. You should always have an exit plan. Or two. If you are planning to flip, be ready to rent or owner-finance. If you and planning to rent, be prepared to sell.

This is kind of second nature to me coming from the oil and gas industry. It has a direct physical basis, but can be applied metaphorically to pretty much anything.

Having an exit plan means not being stuck in harm’s way. When working on a drilling rig, this has life or death implications. Never put yourself in a corner where you cannot get out of the way of something.

I learned this the hard way when loading eleven and three-quarter-inch casing onto a boat when I first started out in the industry working as a roustabout.

For those of you who don’t know what casing is, it is the large-diameter pipe used to keep the wellbore pressure in and the formation pressures out when drilling and producing a well. Each forty-foot joint weighs approximately two thousand four hundred pounds.

The crane was set up to pick up four joints of casing at a time. Additionally, we were short-handed, so I would hook up the casing on the dock, then jump to the boat to help position it on the deck of the boat so it would stack properly for the ride out to the rig.

On one of the lifts, by the time I got onto the deck of the boat, the pipe was coming towards me and I did not want to be under ten thousand pounds of steel. I attempted to get outside the range of the swing of the crane, but realized that I had no more deck because we were loading onto the stern now.

I dropped down onto the deck, sitting, so that at least if the load dropped, the railing would help stop it from crushing me. I believe that maneuver startled the crane operator and he stopped the crane rotation, thus setting the load swinging like a pendulum. He immediately noticed this and started to drop the load as it got over the deck, but the casing had started to swing back towards the stern, where I was sitting.

The casing made contact with my left shoulder and chest. Luckily, it was only enough to bring out purple, yellow, and green bruises on me the next day, but no permanent damage.

 

The moral of the story? Have an exit plan that you can execute on.

 

And, as always, let me know what you think in the comments. Ask questions, tell your story.

 

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Business – Revisiting the E-Myth Revisited

Welcome back! I was talking with Kevin@DeliberateConsulting.com about things we should do differently in our business (disclaimer: Kevin & I are partners/investors, along with others, in a high-end door manufacturing business). One of the things he brought up was that all of the partners should have read Michael Gerber’s “The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It” [http://a.co/d/5JhEnwk] before we decided to invest in a business. Kevin also suggested I write a blog post about it and how it can help you in business.

 

The E-Myth Revisited

 

emyth

 

The E-Myth Revisited is a wonderful book that provides guidance for individuals having an “Entrepreneurial Seizure” as the book’s author, Michael Gerber, puts it. It provides a mix of case history, told as an on-going narrative of a client, and guidelines for successfully organizing an entrepreneurial idea into a business operation manual. It tells how you should work ON your business before you work IN your business. AND, your goal should NOT be an employee of your business, doing things yourself.

 

I’ve mentioned the E-Myth before:

BUSINESS – WE DON’T NEED NO STINKING PROCESSES!…OR DO WE?

MY RESPONSES TO TIM FERRISS’ “TRIBE OF MENTORS” QUESTIONS

 

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Business Buying, Two Years Post-E. Seizure

 

I did not read the E-Myth until after we had already purchased the business and were off to the races. I shared it with the other investors, indicating how important it was that we follow its recommendations. Kevin read it and as indicated by the prompt for this post, he feels the same.

 

Looking back, I have to agree with Kevin. We should all have read the book before deciding to buy a business together. We did not understand how to operate the business. What little “processes” we received from the previous owner were a jumbled bag WTF? and Huh? And, on top of that, the partner directly involved in the business adopted everything wholesale, becoming too mired in the day-to-day to view anything strategically.

 

This is exactly what the book is designed to avoid. If we had spent more time understanding how the business operated and put in systems & processes to optimize its operation prior to purchase, we would be a lot further ahead.

 

We are slowly getting things on track and working to bring efficiency to the operation. Only time will tell if we will be successful.

 

Lessons Learned

 

Kevin and I are starting to collect lessons learned so we can apply that to future business endeavors, investment advice, and consulting efforts.

 

Below are some, in no particular order:

  • Read the E-Myth Revisited
  • Put together your operating manual
  • Understand you costs
  • Create an operating agreement defining who will do what
  • Stick to your operating agreement
  • Understand Cash Flow

 

Please email me, comment below, contact me on LinkedIn, Twitter, or my Facebook page to share your Lessons Learned in operating a business.

 

And, as always, let me know what you think in the comments. Ask questions, tell your story.

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Personal Improvement-Why a “Why Me?” Attitude Doesn’t Help

Apologies for the sporadic posting. I kind of have a little more than usual to deal with. A few weeks ago I was diagnosed with thyroid cancer. And I go under the knife tomorrow morning to have it removed. It was caught very early and the outlook is very good. I busied myself getting work, home, and other segments of my life prepared to weather my hopefully short recovery.

Because I have this going on in my life, I decided to take the opportunity to go over handling bad news or adverse situations.

StillLifeWithASkull

“Still Life With A Skull” By Philippe de Champaigne – Web Gallery of Art:   Image  Info about artwork, Public Domain, https://commons.wikimedia.org/w/index.php?curid=369918

Why ME?

What is the first thought that comes to mind when something bad happens to you?

Do you immediately think “Why ME?” Do you look for reasons, actions, or people external to yourself to place the blame for the bad news?

 

I used to. My first thought would be “Why do I have such bad luck?” or “What did I do to deserve this?”

I eventually realized that no matter how much I worried or wondered or looked for blame, it did not better the situation.

 

Why “Why ME?” Doesn’t Work

The only thing to come out of it was that I added anxiety and stress on myself. This is not good for a  person mentally or physically.

I think part of my realization of this was when I was about eleven or twelve years old. My parents were divorced and my father would arrange to take us for the weekend. Then he would not show up. After many times of packing a bag for the weekend, waiting all weekend for my dad to show up, then, on Sunday night, unpacking the bag because Dad never showed up or called, I finally realized that there was nothing I could do about it, so there was no point in making myself sick worrying about it.

 

I was a much happier person once I gave up worrying if he was going to show up or not. I reasoned, to myself, “He is still my dad. I will still love him. But I won’t trust or rely on him to make me happy.”

This approach of not allowing worry or anxiety to add stress to your life is very similar to the Serenity Prayer.

My take on the Serenity Prayer is:

Change the things you can

Don’t worry about the things you can’t

 

MementoMori

Memento Mori

Another way to approach this is as Stoics do…remind yourself daily of your mortality. There are variations on how to do it, but most involve asking yourself if any of what is bothering you will matter when you are dead.

It also helps to keep ego out of any decisions.

 

Tying back into what I currently have going on, I can’t influence the outcome of this surgery. The “after” will be only slightly different from my current lifestyle. A few more pills added to my daily regimen, the same doctor overseeing my diabetic care will also oversee my thyroid care (he is a top endocrinologist).

I am lucky because I only have thyroid cancer. It is slow-growing, does not spread like other cancers, and we found it very early, by accident.  I currently have at least 5 friends that I can recall off of the top of my head who are dealing with various types of more serious cancers that could be/are life-threatening, in the near-term.

 

In summary, if you take anything away from this post, follow these rules for life:

Change the things you can

Don’t worry about the things you can’t

 

And, as always, let me know what you think in the comments. Ask questions, tell your story.

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Personal Finance – What Can I invest In?

This week we are talking about different types of investments that you can utilize to better your personal finances. I’ll briefly touch on traditional investments (stocks, bonds, etc.), investing directly into a business, and various forms of real estate investing.

Additionally, I would like to give a shout-out to @DeliberateKevin for the guest post last week. Go check out Deliberate Consulting.

FinChart1

“Traditional” Investments

Traditional investments are what most people usually think of when they think of “Investing”. This can be stocks, bonds, Exchange Traded Funds (ETF), etc.

There are three main approaches you can use:

  • Investment Advisor
  • Robo Advisor
  • DIY

TraditionalInvestingRiskChart

Investment advisors usually handle clients’ money for a fee. In most cases, that fee is a percentage of the total portfolio balance. Additionally, unless the advisor has a fiduciary duty to you, the investor, they may push you towards investments where they get better or additional commissions, as opposed to investments with less fees and/or commissions involved. Also, you need a sizable balance to start your account, say, in excess of $500,000.

 

Robo Advisors are basically algorithms that select the best investments based for you based on many criteria. They usually invest in ETFs and can automatically do things like rebalance portfolios, automate tax loss harvesting, etc.  They tend to operate on a fractional percentage commission, meaning that they are usually cheaper than a full-blown human investment advisor. Robo Advisors will also allow you to start an account with a much lower balance than a traditional financial advisor, with some allowing you to open an account with no money, though you will need to put money in to invest.

 

DIY or Do It Yourself is another approach you can take. It costs you no fees other than trade fees and you don’t need a large balance to start. But, you will have to spend a lot of time researching your investments and deciding where to put your money. You can start with as little as the price of a single share of stock and the trade fee.

 

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Direct Business Investment

 

You can invest into a business outside of stock. This can be in the form of buying a franchise, buying a share of an existing business, or even taking your non-retirement account money and opening a business. A word of caution: Be sure to perform thorough due diligence into any business you invest in like this and if investing with partner(s), ensure you have a sound operating agreement in place and that everyone abides by it.

See more on starting a business with partners: BUSINESS STARTUP: 9 TIPS FOR STARTING A SMALL BUSINESS WITH PARTNERS

 

If you only have retirement account funds available, either from a 401k from an previous job or an IRA (Individual Retirement Account), you have the option to buy or start a business using those funds through a Rollover Business Startup (ROBS) transaction, also known as Business Owner Retirement Savings Account (BORSA). This allows you to utilize the money you have saved to start a business without incurring taxes or penalty. There are specific restrictions that go along with it and it has to be administered by a qualified group. Companies like DRDA and MySolo401k can help you deal with this type of thing.

FinChart2

 

Real Estate

 

The last type of investing option I am going to talk about is real estate. As I have talked about before, I like investing in real estate, in addition to other types of investing. Real Estate has options that range from very hands-on and intensive involvement to very passive hands-off approaches.

 

Direct Investment – Real Estate

If you have money sitting around, or you decide you want to follow the Tim Ferriss approach and dreamline a muse to support real estate investing, you have lots of options.

You can wholesale, which is finding people with a need or desire to sell a property that doesn’t qualify for traditional financing or need the funds in a short time period (need a quick closing).

You can Fix and Flip. This involves buying a distressed property at 30% or more below market value (where market value is considered the after-repair value or ARV) and rehabilitating the property, then selling it at or near market value.

You can also buy and hold, the term for investors that buy property with the intention of renting it out over the long term. Generally, these investors like to acquire their properties in a similar state to the Fix and Flip investors, but do not sell the properties.

A less well-known approach is to invest in Notes. These are mortgages that the banks sell off at a discount to get their capital back & re-deploy it in another loan. There are note funds in addition to you being able to buy notes directly.

Most note funds require that you be a sophisticated investor. No, that does not mean that you have to drink your tea with your pinky out and wear a three-piece suit every day. It is a category defined by the government as having an income of $200,000/year if single, $300,000 if married, OR $1,000,000 in net worth, not including your primary residence.

 

Self-Directed IRA – Real Estate

Like the ROBS/BORSA methodologies mentioned above for direct business investments, there is a self-directed IRA (SDIRA) that can be used to invest in real estate. They can be used to buy investment properties or, in some cases, to actually BE a “bank” of sorts.

Some caveats with using an SDIRA to buy investment property: You cannot take advantage of depreciation on the property, so you lose out on some tax benefits; You cannot receive any immediate benefit from the investment. All returns from the investment belong to the SDIRA.

 

Another option is to become a private lender. Basically, you are becoming the bank, lending money on a short-term basis, to a real estate investor. They benefit from quicker and usually cheaper closings and you as the lender benefit from the interest earned by lending the money, which usually is more than you will make in the bank or other investments.

 

Hopefully giving you this overview of different types of investing will help further your knowledge and be a starting point for your own investigation into how best to invest your money.

 

 

And, as always, let me know what you think in the comments. Ask questions, tell your story.

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Personal Improvement -Inigo’s Guide to Networking Success (A Guest Post by kevin@deliberateconsulting.com)

 

This week I am bringing you a guest post from Kevin Paylow (kevin@deliberateconsulting.com), Consultant & Corporate Storyteller, Certified Corporate Storytelling Instructor, Innovation Consultant, Message Consultant, Strategy Consultant. 

https://www.deliberateconsulting.com/

 

I saw this meme on Facebook and thought it was too good not to pass along.

IGTNS

 

Plus what kind of maniac doesn’t enjoy a good Inigo Montoya cultural reference?

But the advice here is great… though points 3 and 4 need to be fleshed out a bit.

Your personal link probably isn’t “You killed my Father”. Instead consider sharing WHY you’re at this particular networking event.

Except for some extreme situations, “Prepare to die” isn’t the best way to manage expectations. Instead tell them how you hope you can both benefit from meeting.

“Hello. My name is Kevin Paylow. I came to meet and hear the latest thinking from other innovators. I’d like to learn about you and your business and see if there’s a way for us to work together.”

Of course, this is just your introduction. I recommend planning ahead for extending the conversation – read this blog post I wrote a few months ago for some ideas.

Good luck!

Kev

 

REI – An Unstructured List of Why Real Estate Investors Attend REIA Meetings:

 

This week, I am covering REIAs. I will go over what a REIA is, how REIAs can benefit you if you are interested in investing in real estate, and how to find a REIA in your area. I will also provide details on how to find out about the REIA for the Houma/Thibodaux/Morgan City area.

 

REIA stands for Real Estate Investor Association. This is a group of like-minded individuals who get together to learn about, discuss, and network over Real Estate Investing.

 

What is a REIA?

 

REIA stands for Real Estate Investor Association. This is a group of like-minded individuals who get together to learn about, discuss, and network over Real Estate Investing. From my experience, REIAs are for anyone with an interest in Real Estate Investing (REI), from rank “noobs” to experienced real estate investors.

Meetings usually cover a topic for education on some aspect of Real Estate Investing, such as Tax implications (by an accountant), things to include in your lease (by a real estate attorney), and ensuring a property has a clear title (by a title expert).

Real estate investors also get the opportunity to network with one another. This provides opportunity to learn from each other and can also facilitate deal making. Investors have the opportunity to buy, sell, or trade deals with each other.

Some REIAs do charge a meeting attendance fee to cover a room rental and/or snacks and refreshments while others are in freely available spaces. Some are also held in meeting rooms at restaurants where in exchange for bringing in the group to eat, the room is available for use.

 

 

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What can a REIA do for ME?

 

REIAs are a place to learn. They provide education on many different real estate topics. As stated above, many REIAs bring in subject matter experts to present to the group. These experts are also available for Q & A.

Some REIAs have sponsors who provide REI-specific services, so that allows members to save time in finding said services. These range from title companies to construction contractors & beyond.

There are also likely to be wholesalers at meetings with properties that are for sale at a discount, in addition to investors shuffling their properties.

 

How can I find a REIA?

 

A lot of REIAs use Meetup.com to list and promote REIA meetings. Go there and search for REIA and your town name. You can set a radius distance from your target location so it will show meetups within that range, in the event there is a meeting in the next town over. When you find one you want to join, join the group and RSVP for the next meeting. It’s as easy as that.

 

Are you in the Houma/Thibodaux/Morgan City area?

 

If you are in the Houma/Thibodaux/Morgan City area, you are cordially invited to join the Bayou Real Estate Investor Networking group. Meetings are usually held on the first Wednesday of the month. Go to the BREIN Meetup page for more information.

 

And, as always, let me know what you think in the comments. Ask questions, tell your story.

 

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Personal Finance – How NOT To Spend Your Money

Welcome back!

This week I am going to go over how NOT to spend your money. There are lots of good things to spend money on, but I continually observe people spending money so they can feel like they are keeping up with the Joneses or because they “deserve” it. And avoid misunderstanding, I am not advocating frugality, just better decision-making when spending money.

 

Everyday Observations

 

Bad spending habits observed recently:

Withdraw money from an old 401k account to go on vacation

Spending money to set up a business, but with no initial business activity

 

Early 401k Withdrawal

If you have money in an old 401k, use it for the intended purpose: Savings for retirement! It is understandable if you have a hardship and need the money to help deal with that, but just pulling the money out to go on vacation is a bit ridiculous. In addition to diminishing the amount of money to be available at retirement, you also have to pay a penalty on the money you withdraw, in addition to taxes at your current rate.

 

401kEarlyWithdrawal

Amount needed to withdraw from old 401k to get $8000 for a vacation.

 

As an example, assuming a 24% tax bracket, if you want to use $8000 to go on vacation, you will need to pull out almost $13,000 to cover the $1,290 penalty and approximately $3,097 of taxes to end up with $8000 to go on vacation.

Not only do you lose 34% off of the top of your money, you also loose any additional earnings by not having that total amount of money still invested.

 

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Setting Up a Business Entity with no Business Activity

I understand the desire to get out of the rat race, to start your own business, and not have to work for someone else. I am right there with you! But take a practical approach. Take a practical approach. I see people starting up LLC entities, putting up websites, and paying for business infrastructure before they have any business activity. That is definitely putting the cart before the horse. If you spend that money, but do nothing in the way of generating business, then that is a wasted expense.

You would do better spending money on actual business-generating activities than paying for infrastructure before you need it.

 

Suggestions

 

Vacations

Plan your vacation as inexpensively as possible. Don’t skimp, just don’t pay $1200 a night for a room when you can rent a whole condominium or home for $110 per night in the same area.

Carry snacks and drinks with you so you don’t have to pay $4-$5 a person for snacks and $3-$4 per person for drinks. No need to carry enough for the whole day, but if you can save $28-$36 for one round of snacks & drinks a day, that cuts your total expense.

Save money until you have enough to go on vacation.

 

Businesses

Start your business on minimal infrastructure. Start conducting business now, then add infrastructure as you really need it.

Have a detailed realistic business plan. Plan out costs, expenses, margin, target audience, etc. Know these things before starting your business, much less spending money on infrastructure.

Hopefully these suggestions helped you out. Please comment here with any questions or suggestions regarding tips, tricks, and ideas for judicious spending.

 

And, as always, let me know what you think in the comments. Ask questions, tell your story.

 

 

 

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Personal Improvement – Books That Have Influenced Me Recently

BookList

Books That Influenced Me

 

I would like to know more about my readers. If you could spare about 2 minutes of your time,  please take a survey to tell me what you like about the blog. Just click here to take the survey.

 

Welcome back to another installment of Things I Think About! This week I am going to go over a few books that I have read recently that have had an impact. While some of them cover a mix of topics, to me, they mostly fall into one topic. Because of this, I will break them out by topic and detail the crossover topics, and why I feel that way, for each book I also have them listed separately on my Recommended Books page, HERE.

 

Business

The E Myth Revisited by Michael Gerber

This book speaks to my soul! I “read” the Audible version, (as I do most books due to my 3-hour plus daily commute), recorded by Michael Gerber himself. This book details why a lot of “Entrepreneurs” find themselves overworked, underpaid, and without the ability to grow. It is an interleaved mix of example stories with lessons explaining about each story. The main focus of the book is to explain why developing processes and systems for operating your business will allow you to employ other people to work IN the business so you can work ON the business.

 

The 4-Hour Workweek by Tim Ferriss

A young Tim Ferriss relates how he figured out how to not be locked into common misconception of the American Dream…go to school, get a good job, work like a slave for 20-30-40 years, then retire at an age where there is a good chance that you will have trouble enjoying life. In the 4-Hour Workweek, he details the concepts of mini-retirements, becoming effective and efficient in whatever you do for work, and ideas for small businesses that require little to no maintenance to support you on an ongoing basis.

Granted, as even pointed out in the book, the goal is not to be able to lay on the beach drinking mai tais, it is to free you up to do the things you want to do, including world travel, learning languages, and/or working with non-profit organizations.

This book also qualifies as a personal Improvement book, because a lot of the recommendations for efficiency and effectiveness while working have helped me to reduce a lot of stress at my main job.

 

Rich Dad’s Cash Flow Quadrant by Robert Kyosaki

This book breaks out the different classifications of people earning money. ESBI stands for Employees, someone who works for someone else to make money, Self-Employed, a person working for themselves to make money, Business Owners, owning a business & employing other people, and Investors, those who employ their capital to buy assets. It promotes the idea to be either a business owner or, ultimately, an investor, as this usually provides the best returns on time & money.

 

Personal Improvement

The Obstacle is the Way by Ryan Holiday

Ryan Holiday is a devoted Stoic. He has multiple books and a website dedicated to Stoicism. This book is kind of a manual for achievement. I really enjoy it because it basically lays out my philosophy on life. The short version is “Do what you can to change the things you don’t like in your life…Ignore the things you can’t change.” The Obstacle is the Way takes it a step further in that it guides you to figure out how to change either the situation or your thinking about the “things you can’t change”.

 

Rich Dad, Poor Dad by Robert Kyosaki

Robert Kyosaki tells the story of how he grew up a poor kid, but due to the tutelage of a friend’s father, learned to become a businessman. The book is a simple read but puts forth important concepts…assets are only assets if they will make you money, don’t spend foolishly, and educate yourself to grow. There is also a good bit of advice on real estate investment as a vehicle to become wealthy.

 

Principles by Ray Dalio

Ray Dalio is one of the richest men in the world and got that way by building one of the top hedge fund management companies, Bridgewater Associates. In Principles, he relates his lis life and how he got to where he is, developing his principles for business and personal life as an operating system along the way. This is another Audible entry where the author reads the book to you. It works.

 

Real Estate Investing

Long Distance Real Estate Investing by David Greene

While I don’t invest in real estate outside of my back yard, (for now), this book is incredibly useful as a guide of how to do things. The methodologies and techniques laid out here will work even in a local market. It’s a mix of strategies, tools, and tips to be successful.

 

The Book on Rental Property Investing by Brandon Turner

This book is a thorough primer for anyone wanting to get into rental properties as an investment. It covers everything from finding properties to rehab tips and beyond.

 

The Book on Managing Rental Properties by Brandon Turner and Heather Turner

Hmmm…the title sounds a bit familiar…YES! This is the follow-up book to The Book on Rental Property Investing. It picks up where the previous book left off and takes a deeper dive into what you need to do to manage properties successfully.

 

Loopholes of Real Estate Investing by Garrett Sutton, Rich Dad Advisor

Another Audible author read, Loopholes covers the benefits of and hazards to watch out for when investing in real estate. I have probably listened to this book at least 6 times…right up there with the 4-Hour Workweek and The E Myth revisited. Lots of great advice.

 

And, as always, let me know what you think in the comments. Ask questions, tell your story.

 

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