I talk about Personal Growth, Management, Infrastructure and More | 👇JOIN +2k readers 👇
Is this a good investment?
|
A few days ago, I talked to someone about profitability of assets. What should be the minimum return that you get out of… let’s say… a good real estate investment? ​ Our best ones… around 8-10%. ​ “Not much” – he said… the stock market is giving you more… ​ Logically, Trump had not shown up in the white house garden yet to do a performance with his hair perfectly glued to his head. ​ But let’s reflect… ​ Is that a good number? Around 8-10% ​ In my humble and brutally honest opinion: it’s f*cking insane. It’s la leche! ​ I’m tired of reading every self-proclaimed genius online saying they can do better. Much better than this… ​ OK, let’s focus. ​ I pay a company to clean my house. It’s expensive — but I’m happy to pay for it. Then, I have a robot that do the day to day. ​ ​ But… That would be time taken away from what we’re actually good at. ​ Focusing on what you’re really good at — I think that’s what separates successful people from the wannabes. ​ When you go out looking for an investment property, there are thousands of variables. ​ ​ ​ Now here’s where your mind might blow: Do you think I spend my own time searching for properties for myself? Then a broker that finds me the best financing. A manager that gets the best interior design and furniture. An operator that extracts maximum value of the property. ​ If I did it myself, maybe I’d squeeze out a little bit more… maybe 10-11%. ​ There are people who live and breathe this daily, and they’ll get me results very close to mine for a very reasonable fee. ​ Could you squeeze out 1% more by doing it yourself? ​ Anyway… next time that you want to do it all, think twice of what you are good at…. Although maybe, you should start here. ​Is this piece of real estate a good investment?​ ​ PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. ​ ​ |
Vicente Valencia
I talk about Personal Growth, Management, Infrastructure and More | 👇JOIN +2k readers 👇
Arguments, unfortunately, don’t work. It’s proven. People don’t change their beliefs. At least, not with arguments. The reason arguments do not work is that most people hold their ideas and values without thinking about them. Think of politics. Think of clauses that you’ve seen in contracts. Think of people supporting their favourite teams. There is a strong emotional content in their beliefs. They really do not want to have to rework their habits of thinking, and when you challenge them,...
Impossible. Nobody can be that stupid. Well… welcome to another day. A contractor (let’s call him Mr. Optimism) decided to “save time” on a warehouse project. How? By installing the roof before securing the steel structure with the final bolts. “Don’t worry, jefe, it holds by itself.” Famous last words of every construction project ever. The weather app showed light breeze. New Zealand showed: “Hold my beer.” A 45-km/h gust arrived, grabbed the entire roof like a giant frisbee, and sent it...
In a meeting with an agency not long time ago, I was asked for advice with regards to the team they’ll need to set up for managing a PPP project. Obviously, our conversation started by a “are you kidding me”? Managing multibillion dollar projects required people able to handle multibillion dollar projects. That’s the basics. If you bring to your team people used to manage projects in the range of 10 millions… the focus is not going to be on the right things. The nickelling and diamonding...