The money value of time

In financial circles, you’re always taught about the “time value of money.”  However, in our instant gratification, microwave world packed with deadlines, tweets, and rush, rush, rush, rarely do we slow down to examine the money value of time. 

Time is something we’ll never get back. Is it more important to work on one more deal, or be in the stands at the kids’ ball game when he looks up?  Will you have regrets as an elderly parent fades because you were working too much – or two jobs?  What is a free afternoon for fishing, shopping, or golf really worth to you?

When I was in the mortgage business, I had a number of clients who were attorneys.  One was a high ticket contract attorney whose billing rate was $450 an hour.  Because she was a partner in the firm, I’m confident, she got a large portion of that.  I did several mortgages for her over a couple year period but, instead of having her bundle up her taxes, etc and come to my office (like I did with most clients), I went to her office.  We even did closings in the conference room at her office so she could minimize her interruptions and bill more hours.

When you’re thinking about real estate investing, do you really want a second job that takes you away from the things you should be doing?  That’s why we suggest you evaluate your goals and your time.  Many prefer to hire a professional team, pay them a modest fee, and let them send you profits from your endeavors together.  After all, living a life with no regrets is the truly important thing.  Indeed, that’s something difficult to calculate at any price.