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. ​ ​ |
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In New Zealand there is a survey about the infrastructure world going on. They ask you two questions: One: how important you think that it is to have a pipeline for decision makers? Answer: critical. Two: how good is the actual pipeline. Answer: useless. The reason is simple. The actual pipeline is a wish list. A list of projects that want to be built. That’s great. But where is the tracking about what is in the pipeline and what is actually being delivered? If that’s not there, there is no...
Today I had some conversations about one of the biggest sources of delay, frustration, and conflict in PPPs:The Review Procedures. Agencies still treat them like they’re signing a traditional construction contract. They micromanage the design. They dive into details they don’t own. And worst of all — they brief their consultants poorly (if at all) on what the review is supposed to achieve. The result? Endless comments that add no value. Delays that push the schedule back months. An...
A few birthdays this week. And you know what. People get older. Time passes by… but they do not necessarily grow up. As Robert Kiyosaki once said “Many people run from mom and dad’s shelter to the shelter of a company or the government”. Take government and you can exchange it by “a company”, “a secure job”, “a long term project”… Too many people spend their lives looking for guarantees and spend all their lives avoiding risk, avoiding growing up, and always looking for a surrogate “parent”...