Shop for Real Estate Assets, Not Liabilities
It’s time for me to come clean. I love to shop. Not for clothes or jewelry. That would mean immediate revocation of my man card. No, I like to browse for gizmos, gadgets and toys. High tech or low tech, it doesn’t matter.
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On Sundays I sit at my kitchen table flipping through the slick glossy newspaper ads. This week Best Buy has a sale on LED TVs. Target has the movie Tombstone on blu-ray for $10 off. And Dick’s Sporting Goods has that gas camping grill I’ve been wanting.
Then there’s Home Depot. I can find something I want on almost every aisle. Chase lounge chairs. A belt sander. And how can I live without this decorative metal ant sculpture for my backyard?
I need help. I’m weak – a victim of the consumer culture.
They say the first step towards solving a problem is admitting that you have one. Okay, now what?
The truth is I came to the realization that I’m a shopaholic about a year ago. It’s been a long winding road but I’m finally on the mend thanks to this 3-step recovery process:
- I stay out of any store selling merchandise that requires electrical or battery power.
- I leave my wallet at home.
- Before I buy anything I ask myself – will this cost me money or make me money?
Step 3 of the recovery process is the most important. I came up with it after reading the book Rich Kid, Poor Kid by Robert Kiyosaki. In it he explains how an asset is something that makes you money. A liability is something that costs you money. So simple a child could understand this concept right?
Well, I guess I’m still a kid at heart because it took me 39 years to figure out.
Now I shop for cash flow producing real estate – at the courthouse steps and on the multiple listing service. The fix and flip business I operate with my business partner is generating enough revenue for us to purchase 3-4 rental properties this year.
I’m proud to say that I’ve finally turned the corner with my liability addiction. Although I still have the occasional relapse. I recently bought a Motorola Xoom tablet. Sure it’s a toy. But I justified the expense because it will help me make money. Last week I used it on the 6th hole of the golf course to place a bid on a house going to auction.
I guess I forgot to mention that I’m also a golfaholic. Unfortunately, there’s no known cure for that.