I just picked up a great deal. I could sell it right now and make about $22,000 but I’m not going to do it.
I’m very tempted though. Obviously, $22,000 is a lot of money. So why am I not selling this property and taking the money and running?
Because it’s a perfect buy and hold property.
It’s a single family house, on a cul-de-sac and it’s in a place where there is a ton of military (my favorite type of tenants).
If I sold this property now I’d be a fool because when I own it free and clear in a few years it will give me around $2,000 a month in income for life.
You see, one of the reasons I’m writing about this today is because I just had a conversation with an investor in Florida who I haven’t talked to in awhile. When the market was hot this investor and his partner where flipping properties like crazy and making a ton of money.
But guess what? They didn’t keep a single property.
When I was on the phone with the investor he told me, “I always told my partner we should keep some of the properties, but he always talked me into selling so we could get $30,000 immediately and be able to buy a new car if we wanted to.”
Not surprisingly, that investor and his partner spent all of the money and have nothing to show for all of the deals they’ve done. They’re back at square one.
Listen. I know it’s not easy. If you’re struggling for money now you might have to flip a house to pay the bills. But I do mean struggling. Most people can afford to put a roof over their heads, clothes over their back and food on the table… but they think they’re struggling if they can’t get 4 cups of Starbucks coffee every day and a new car every year.
So if you’re truly not struggling I suggest you delay instant gratification.
From day one in this business I’ve been keeping a certain number of properties in my buy and hold portfolio and I’m very thankful I did, because I currently have several thousand dollars coming in every month in passive income.
And even though $22,000 would pay for one heck of a vacation today, I’d rather have the $2,000 in passive income coming in a few years from now. That last thing I want to do is have to work full time when I’m 60 or 70 years old flipping properties. And if you take my advice you won’t have to work either.