Had to snap myself out of a house craving. Really wanted to buy this house to live in. Its beautiful and the land is beautiful. But then I realized I needed to be patient. I can use cash and credit towards buying another apartment complex, increase my income, and add another asset to my assets listed on my balance sheet and so doing put money in my pocket. Or I can use cash and credit towards buying a house as a personal residence, increase my expenses, and add a liability to my balance sheet that takes money out of my pocket. There is no right or wrong answer. Its a personal choice. Emotionally I want that house and would forgo the return on money had I used money and credit for a rental apartment complex versus on a personal residence where the money never really is recovered unless sold. But I realized I need to exercise some more patience financially for at least a few more years. I must continue to build up the asset column of the balance sheet with more apartment complexes and allocate all cash and credit towards that aim. By doing so, acquiring a house for a personal residence will take care of itself in the long run and any liability appearing on the balance sheet from its purchase will pale in comparison to the assets in the asset column of the balance sheet. I must remind myself that the top 10% buy their assets first then their liabilities. The other 90% buy liabilities first and have no money left to buy assets. So instead of shopping for a house to own as a personal residence, Im shopping for another apartment complex to own and rent out. Started looking in Minnesota. There are deals in Wisconsin but wanted to expand my search radius to increase the number of deals and increase the number of deal properties that I can write offers on. Right now there are some incredible deals on apartment complexes in southeastern Minnesota. I was surprised at the extent of the deals there. In Wisconsin, Manitowoc and Two Rivers seem to be a hot place for deals on apartment complexes. Dont know if I have the stomach to drive that far to manage an apartment complex, but if I have to to grow the business, I will. One thing is for certain, when you write offers on multiple properties, youre bound to cut a good deal that is beneficial to both the buyer and the seller. Gotta love the rental business, but the deal making business in real estate is even more fun.
Posted on: Sun, 13 Jul 2014 06:45:55 +0000
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