If You’re Not Playing Hands You’re Losing Money

Savvy Passive Investors,

Lennon here today, with a specific message about poker.

You may or may not know that I am very passionate about watching and playing poker. It has a lot of great lessons that apply to real estate investing.

We are not talking about risk, or thrill, or even gambling at all.

See, something I've learned at the poker table is that when you sit down, you have to play the game.

What does this have to do with investing?

Well, look, poker grinders (those who do this for a living to feed their families) can't play recklessly. They have to act logically, follow the odds, and so on. Yes, folding is a part of that.

But if they are not actively playing all the hands according to the fundamentals... they are getting left behind.

Each round certain players are required to post blind bets. If there were no blinds then all the players could just sit forever at the table without losing money. But since there are blinds, then players must actively defend their money, else it slowly gets eaten away.

Same thing right now with all the inflation and market uncertainty.

You cannot sit on the investing sidelines and just let inflation eat away at your savings and purchasing power. You have to keep playing -- but safely, prudently, and without emotion.

This is where the tax-friendly and historically market-beating (when risk adjusted) returns of commercial real estate investing come in.