Keeping Focus is Key

When I began my investing venture a little over 5 years ago, it was with a Rich Dad Poor Dad seminar at the Radisson Hotel at The University of Toledo. My brother and I split the cost of attending the 3 day seminar. It was a lot of information presented over the three days, although the second half of the last day was centered around selling their other services and courses, which unfortunately were out of my price range and ability. I settled instead to purchase a few more books on investing in general, and investments in Real Estate. I still pick up new books as I am able in order to learn more about the business.

The Start

I read Rich Dad Poor Dad prior to attending the seminar. It was one of only a few books which I have read in a single day without interruption. I was amazed at the concepts presented. I understood the basics pretty well, which allowed me opportunity to go into the seminar ready to note only take notes, but seek ways to start off investing as quickly as possible.

Shortly after, I began looking for opportunities to invest. I was looking to build a team I could trust to make things happen. I took my notes and started to plot out my web of needed professionals to be on my side. I started assembling legal requirements to form an LLC to be ready for my investments and to protect myself. And then an investment opportunity was found. A foreclosure, discounted by about 70% of market value, with very little in need of work. Little visibility of the home, and the fact that the home was on the market right at the beginning of the eventual bottom of the market, allowed it to still be available. Credit conditions were still tight at that time in the Great Financial Crisis (as my friend Engelo Rumora calls it, the GFC). My attempts to get a loan as an investor with limited savings (not enough for banks 20% down payment) fell short.

Getting Off Track

Wanting to move out of my apartment at the time, and possibly use the home as not only a residence but an eventual equity position as I paid down the home took over my emotions. I wanted the home not now for an investment, but rather for a residence. Though the residence didn’t meet my personal desire for a home, and even though a small bidding war came about with a multiple offer situation, I still went forward (realizing now that the immediate equity would be thin with the increase in price). Now I have lived here for the last five years. And since then I have done one investment deal. A buy and hold multi-use building in a small community to the south of my town.

When I reflect, I find that the main issue that came about was a lack of focus in my investing. I ran out to find deals which made sense, but I lost focus on the important items, and sacrificed my position, and compromised my goals. I bought debt, not an asset (key item from Rich Dad Poor Dad which specifies if you want to get rich, don’t buy things which create debt, buy assets that create wealth).

Regaining Focus

So, now five years removed from my failed start, I have a renewed faith in my investment future. I have sense 2009 gained my Realtor’s license. I am trying to get my required transaction amount up to the required state level to earn my Brokers license, with the intent of being a broker for a new firm. I have my goals written down for what I want to achieve in the next 12 months, 24 months, and 5 years. All items also have specific tasks required for me to achieve them and to keep myself accountable. I am partnering with an experienced young investor who has formed his own investment company, so that I can grow with someone of good knowledge base and be a part of a growing business.

In short, I have regained my focus. In investing, as in with any business venture or even personal goals, focus is key. Without focus on your goals, where you want to go, what you want to achieve, nothing is possible. With focus on your goals, anything is possible.

This blog will be about my daily investment activities, the pitfalls, the successes, and tips I learn along the way. As well, I will discuss my local markets and the markets in which I invest, to give others a picture of what the current environment is so that they can make decisions based on their focus.

I look forward to publishing this blog on Bigger Pockets, and will share it in other forums as well to bring more people into Bigger Pockets.

Thank you for the read! Happy investing everyone!