Good morning,
When it comes to owning revenue property, things can get complicated. As a former teacher (physics) I firmly believe in simplifying things as much as possible. It was Einstein that said “make everything as simple as possible, but no simpler”.
Even pirates had a North star to guide them.
Here’s 3 guiding theories that will help you make decisions about your revenue property.
By Kris from The Landlord Training Institute
Protect the asset
By that I mean literally, the hard asset.
I’ll give an example: Ever walked through your property and seen something that you weren’t sure needed fixing right away or not?
Protect the asset.
If not fixing something will result in damage to the property, you should be fixing it.
Every time.
The asset is what brings you income. Without it, or with it in poor condition, your income suffers.
Protect the asset.
From that we get….
Protect the cashflow
There is a fixed number of properties you can own that are cashflow negative. It might be 1, it might be 100. But the number is fixed.
Every time you become cashflow negative on a property you get closer and closer to becoming the motivated seller that I look for.
Protect the cashflow.
Example: “I’ll charge less and get more applicants”.
Cool. Your phone blew up with people who want cheap. Those same people will leave at any time for even cheaper. You just started a negative feedback loop that gets you further from your end goal.
Protect the cashflow.
That brings us to…
Protect the end game
Everyone has a different end game.
For some it’s a million dollars. Those folks often haven’t put much thought in, they’re repeating what they’ve heard previous generations say.
For some it’s 100 doors. Often this is also an arbitrary or poorly thought out number.
For some it’s:
- generational wealth of $___ to pass along to their kids
- maintaining a work schedule of no more than 12 hours weekly
- no more than 4 days monthly away from the family
Whatever your end game, decisions get made with the intention that you travel towards it, not away from it.
Protect the end game.
“Does this get me closer to my end game?” is something you should get used to asking.
My exact application of this is “does this make my life easier?”. I’ve been using that for years to guide my decisions.
I’m not talking about a short term “easy but temporary” solution.
I’m talking about long term thinking where my life gets easier because future touch points are prevented.
Longevity in this business is directly correlated to the number of fires you put out.
Protect the end game.
More from Kris & Landlord Training Institute
My name is Kris from the Landlord Training Institute and if this helped you kick ass today you can go here for more tips.
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