Does your REI strategy mimic your Monopoly board game strategy?

Question

I was playing a version of Monopoly with my 7 year-old son and 5 year-old daughter last week. My daughter managed to put together the highly sought after Boardwalk - Park Place monopoly and ultimately rode it to a convincing victory. My son spent most of the game trying and failing to put together a monopoly on the lowly purple properties (Baltic and Mediterranean). He was nearly bankrupt by the end of the game.

It took me back to my childhood and my many games of Monopoly. My strategy would almost always be the cheap purple and light blue properties. I knew I could get them cheap and build houses and hotels quickly. Others pursued the high-end royal blues and greens, while the muddled masses clambered for the good "value" properties on the other two sides of the board.

Fast forward twenty years and I now by "cheap" properties, fix them up and rent them out. Perhaps that just reflects my age, financial picture and stage in my REI career. But perhaps it all goes back Monopoly and we start showing our true colors at a young age.

So does your real estate investing strategy mimic your Monopoly game strategy from your younger years?

Mike

J Scott · Answer

Luckily, my strategy has changed.  I used to insist on being the bank and would embezzle cash when nobody was looking...  :-)

Chris West · Answer

I laughed when I came across this topic, because I've recently been reminded of my Monopoly strategy and used it as an analogy to describe the latest deal I'm doing.  I played the game like Nathan, buy everything I could, and mortgage properties to keep buying.  I'm currently digging down deep to pull this deal off and it has me a little out of my comfort zone.  Just need to avoid landing on any hotels while I build my reserves back :)

Rob K. · Answer

In Monopoly, as in real life, I like all of my "hotels" next to each other, not separate properties all over the board.

So my investment properties are all pretty close to home. No out of state properties for me.

Elizabeth Colegrove · Answer

I totally agree, my monopoly strategy is what my burning strategy is today! I am a turn what I provided into a winning strategy! I buy high end homes but that is because what I wa given.

We use to play monopoly ALOT! What you find is as you do it over again, is that you no matter what you want  life gives you different options as monopoly introduced us to and life reemphasizex

Chris L. · Answer

Hey Mike,

Great question and sounds like you are helping your children learn some important lessons at a young age.

My monopoly game strategy was always based upon what was available.  Even if I wanted to own Boardwalk and Park Place, I was not always able to attain those properties during the game.  My goal was always to create a monopoly of any kind and progress from there. I still follow the strategy of pursuing whatever presents itself as the best opportunity.

One thing to borrow a quote from Rich Dad Poor Dad/ cash flow quadrant is that I have not found the bigger deals to be better.  I have just found a lot of small deals that have created financial independence for me.  I keep searching and evaluating but I have not found those "bigger deals" that exceed the returns that I can get on SFR's.

Keep up the great education for your children.

Chris

Dean Letfus · Answer

My strategy was always to win at any cost so that hasn't changed.  And thinking about it I always went for the highest priced and quality in Monopoly so that hasn't changed either :-)

Michael Wentzel · Answer

The best part was about two rounds into the game. My 5 year-old daughter was listening intently to the rules and trying to grasp the ideas. We all started with big piles of cash, but as she bought properties, she saw her piles going down. She didn't say much until she finally asked, "But how do we earn money?". She was thinking and asking the right questions.

I think my wife watches me buying properties today and is asking the same question.

Mike

Nathan Emmert · Answer

Mine is similar, maximize holdings... buy everything until you ran out of cash, than mortgage them for more cash to buy additional properties.  Control the properties and long term they will turn into cash flow and opportunity.

Chris Martin · Answer

HA! I haven't played the board game in 25+ years! You obviously aren't playing with the enhanced (*) rules. If you own BW or PP, then $200 as you pass GO! means $100 to you and $100 to the player not yet eliminated with the least cash... and if you own BW AND PP... then $200 goes to the player not yet eliminated with the least cash.  Socialism? Taxation reality? Those were the rules I had to deal with. We had some others... like players who dealt cards (player A bought a card from player B) had to pay the house the face value of the "rent".... You should have seen our Stratego enhancements (20x20 board, paratroopers, etc.)!

(*) developed 40 years ago by my brother and dad

Jon Klaus · Answer

As simply as I can state it, TRADE UP.

I want high quality assets in great locations for my retirement.

Does your REI strategy mimic your Monopoly board game strategy?

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