By W. Casey McDonald
In the past two months, I have purchased 7 houses with no money down. All seven are now occupied. I have increased my positive cash flow by about $500 per month plus I have pocketed another $4000 cash into HIP National Trust, also known as my wallet.
Do you want to do what I do? Before you answer, let me tell you about my four teachers that visit me anytime they feel like it. They don’t call to make an appointment. They just appear at all hours of the day or night ready to tirelessly pound away on my happiness.
Please meet anger, frustration, fear and insomnia. What I have learned in my two years of fulltime investing experience is to greet these teachers with the phrase, “Oh Boy!” instead of shouting “Oh Shiitake Mushrooms!!”
If I can learn from my teachers, they won’t eat me up for lunch. If I choose not to learn from my four friends, they will become my four fickle fiends.
Most times these teachers show up one at a time. Like Anger dropping in when I checked the mail today and saw that 25% of my portfolio still has not paid rent. Anger showed up to remind me that I have a company policy to send out three day notices on the sixth of each month.
With the July 4th Holiday and the weekend, I opted to extend that deadline to July 9th. That decision set me up for Anger’s arrival. Next month, and every month thereafter, 3 days will go out on the sixth. That way I won’t have to calculate or adjust my company policy.
Thank you Anger for teaching me that valuable lesson!
But what happens when all four teachers arrive at the same time? Can I still shout, “Oh Boy”? If I don’t look for the lesson, I will be consumed with the horror. Therefore, I choose to learn rather than squirm.
See if this makes you squirm…
Three weeks ago, I began the eviction process on a tenant who, with the help of a public assistance attorney, decided to hold $200 of my rent in escrow. The demand for repairs was generic and rather than let a month or two of confusion devour my profits, I calmly decided to act, via serving a 3 day notice.
Three days later, I get a certified letter from another attorney representing this same tenant who is now suing me for falling down the stairs back in February.
Enter the four teachers.
It took me awhile to learn the lesson from the four teachers while they all were shouting at me at the same time, “You’re ruined!!” “There goes your portfolio!!” “Welcome to hell!” They each took turns whispering and shouting exactly what would get the biggest reaction from me. It was not fun.
This torment lasted well into the night. Then, the lessons became clear. If I was willing to be fair and teachable, and the fact that I was insured, there may be an excellent outcome to this perceived crisis. What if my tenant gets a cash settlement from my insurance company that allows her to buy my house? I may see a windfall as a result of a slip and fall!
In short, I should worry about the stuff I have control over and don’t worry about the things I can do nothing about. If I can make friends with my four teachers and apply their lessons to my business routine, I will increase my ability to see opportunity in the midst of apparent crisis.
Copyright 2008. Contact Casey McDonald – Casey is President of REICNY
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