The Sky Is Falling! The Sky Is Falling?

[David Haynes]

While re-reading one of my favorite books Rich Dad Poor Dad, I came across a powerful quote that speaks directly to pessimists and those influenced by their inactivity.

"WARNING: Don't listen to poor or frightened people. I have such friends, and while I love them dearly, they are the Chicken Littles of life. To them, when it comes to money, especially investments, it's always, 'The sky is falling! The sky is falling!' They can always tell you why something won't work. The problem is that people listen to them. But people who blindly accept doom-and-gloom information are also Chicken Littles."  -Robert Kiyosaki

While working with real estate investors in Philadelphia, PA, I have come across many who are "waiting for COVID to stop" or "waiting for the election results." I too have found, like Robert Kiyosaki, that the inexperienced, uninformed, and "poor" investors are the ones who are always frightened, stalling, and fumbling for excuses to postpone. COVID is just their newest excuse. 

For the EXPERIENCED, SUCCESSFUL, and WEALTHY investors, I have seen the opposite. They have changed their strategies, but they have NOT become INACTIVE. Losing time is more costly to them than losing profit. After all, time is our most precious commodity. These investors get it, and will for sure be the ones who succeed in the end. 

So I have a question... no matter if you're in Philadelphia, New York, or California. No matter if you're a buy-and-holder or a flipper....

Are you bracing for the falling sky? Are you changing your strategy? How are you taking action during this time?

[Justin Thorpe]

@James Hamling

You sound like Kiyosaki. Are you him :). I personally don’t think he is a fraud but I think he is a genius who has minted and printed millions by telling people how the sky is often blue in color and sometimes grey! If you found what he wrote ground breaking or empowering, more power to you.

[Justin Thorpe]

@David Haynes

Those who accumulate wealth have financial intelligence, they go hand in hand. I don’t see it any other way! I wonder why one would need a book to tell you that.

My point is simple. People will invest or not invest in these times or any other based on their personal circumstance and comfort levels. Some may feel it’s the right time and others will want to wait.

Most people are hurting financially or emotionally these days. People have lost jobs and even loved ones. They may not be comfortable making big investments. To think they are the “naysayers” or the “buzz killers” is a selfish thing to say.

[Dave E.]

@David Haynes I just closed on a SFR buy and hold last week. It's in an area that I have done lots of research on and is usually pretty stable. Doesn't crash when the market tanks, but also doesn't appreciate a ton when everything else is climbing rapidly. Just a steady performer that cash flows constantly. My choice is to focus on cash flow right now.

If the market does happen to tank again like it did in 08 and 09, then I will likely shift and look to pick up some cheap homes in areas that will appreciate rapidly after things recover. Just my two cents.

[Philip Coiro]

@David Haynes

Just about to close on an out of state flip! Let’s gooo!!!

[Anna Buffkin]

I'm definitely changing my strategy.  I have owned rental property for 8 years.  Until this year, I have never sold a property.  I am firmly buy and hold.  I sold my duplex last week.  I am also listing one of my single family houses shortly.   

I also went under contract on a single family home yesterday.  This house will be my first flip.  This is also the first house I have purchased from a wholesaler.

[JD Martin]

My primary strategy is to think 30 years out. Real estate (in my opinion) is best played as a long-term investment. If you can hold for 30 years, there's not much to think about beyond that. Even if you "overpay" in today's market, what is the likelihood you'll regret that extra thousand or ten thousand 30 years from now? Hell, I regret not "overpaying" 5 years ago. 

[James Hamling]

Originally posted by @Justin Thorpe:

@James Hamling

You sound like Kiyosaki. Are you him :). I personally don’t think he is a fraud but I think he is a genius who has minted and printed millions by telling people how the sky is often blue in color and sometimes grey! If you found what he wrote ground breaking or empowering, more power to you.

Again you are making a passive aggressive assault and inference on Kiyosaki's information as being common sense knowledge "the sky is blue and sometimes grey", which I again call out as incorrect and not accurate as it is not common knowledge what so ever. Maybe review what common knowledge is vs sensical logical knowledge which it is. The education in US teaches consumerism if anything and does not support any form of financial education. So if it is just regurgitated common knowledge as your inferring, why is it so uncommonly known? 

Myself I did not find any of it as new information or ground breaking in content what so ever, ground breaking in delivery and distribution to the mass's, but I have the unique advantage of coming from entrepreneurial family, the vast majority of persons do not have such a vantage point. 

And again, your denigrating the net result and still inferring as a scam "guru". Exactly what has been your contribution to society in comparison? 

[Joe Scaparra]

@David Haynes You ask a good question, what are investors doing during this time?  

Well, I am a buy and hold investor.......so.........I am not changing a thing...........I am doing the same thing I was doing years ago..........looking for deals that work!!!!  

I began buying properties in 2003.  Once I got the bug that this could work, I got focused and began buying at a faster pace in 2005.  As I said, i am a buy and hold investor.  I have yet to sell any of my properties.   So, buy and hold, just keep on keeping on as the daily/monthly/yearly fluctuations of the market have absolutely NO AFFECT on my strategy.  Carry on!  Cheers!

[Dennis Cosgrave]

I have always said, plan for the worst, and hope for the worst. If you planned for the worst, you will be able to weather it. If the best happens, it is icing on the cake. 

[David Haynes]

Originally posted by @Joe Scaparra:

@David Haynes You ask a good question, what are investors doing during this time?  

Well, I am a buy and hold investor.......so.........I am not changing a thing...........I am doing the same thing I was doing years ago..........looking for deals that work!!!!  

I began buying properties in 2003.  Once I got the bug that this could work, I got focused and began buying at a faster pace in 2005.  As I said, i am a buy and hold investor.  I have yet to sell any of my properties.   So, buy and hold, just keep on keeping on as the daily/monthly/yearly fluctuations of the market have absolutely NO AFFECT on my strategy.  Carry on!  Cheers!

 Thanks for sharing! You've made it through the Great Recession, so why should this scare you, right? You obviously have a strategy that works. Keep it up!

[Justin Thorpe]

@James Hamling

As a former Wall Street banker turned tech executive turned tech investor, my contributions have been very significant by way of sponsoring talented people, helping fund companies and enable job creation and none have been undertaken trying to brainwash the vulnerable to line my pockets. So let’s get that out of a way.

I do agree that Kiyosaki’s books may not have any impact on people who are financially savvy. To them it’s exactly how I have put it as the “sky is often blue and sometimes grey”. Hence I personally saw no value in those.

But I did see a red flag in preachings that look down on college education, home ownership and pursuing a respectably albeit 9-5 job. In this case, the subliminal marketing trick of creating more “vulnerables” becomes apparent to the keen eyed. Now a marketing strategy does not equate to fraud.

[Brendan McAllister]

@Justin Thorpe

I do see what you're saying, and I agree that you should never take these "guru authors" words as gold. However, one think I think "Rich Dad Poor Dad" does well is it gives people a start. Personally, I think some of his points are a little excessive, but not everybody is naturally financially literate. Like you said, his books aren't for the people who are financially savvy. They are for people who think all debt is bad, and cash is king. A lot of people out there may have worked very hard to earn their money, and may have a good amount of it, but they don't know how to leverage that to build generational wealth. I think Kiyosaki does a better job than most other "gurus" to help them get a start at doing that.