This weekend I started my SCUBA training and as an investor couldn’t help but draw a few parallels between the principles of SCUBA and those of real estate investing. Believe it or not, diving and real estate have plenty in common. In fact, the most important rule in scuba diving is very similar to what I feel is the most important rule in real estate.
The Most Important Rule in Scuba Diving
In scuba diving, the most important rule is to breathe continuously and never hold your breath. There are several reasons for this. As a diver it is important to equalize your body air spaces as you descend and ascend (change depths) because the pressure in the water changes, and the pressure in your body must match. Continuous breathing helps with this. More importantly, holding your breath as you ascend can lead to lung over-expansion injuries as the air trapped in your lungs expands as you get closer to the surface which has less pressure.
Cash Flow is the Air an Investor Needs
One of the most important principles in real estate is to invest for cash flow. In real estate, cash flow allows us to continue, it is like oxygen. To continue our parallel with diving, holding your breath in real estate would be like investing without cashflow, or trying to make it a few months without any income. This type of strategy may be dangerous to your financial health, and may cause bank account underexpansion issues.
We should never hold our breath or invest without cash flow unless we have deep pockets that allow us to do so. Equally important, we should breathe continuously. Cash flow should be regular and consistent for optimal financial health as a real estate investor.
There are additional links between other diving principles and real estate investment, but those are for my next post. Until then, keep breathing and focus on keeping your cash flow strong.
Don’t Miss Part II of this series:
Scuba Diving Principles for Real Estate Investors: The Plan
photo credit: Serge Melki