“It’s not how much money you make, but how much you keep, how hard it works for you, and how many generations you keep it for.” —Robert Kiyosaki, author, Who Took My Money?
For most investors, profitability is the primary, and in some cases sole, factor used to decide whether or not to invest in something. They fly from deal to deal with no system in place.
Like an eager puppy that runs to whoever will pet it, they rush into any deal as long as they’re convinced that it will make them money. Unfortunately for them, their profits are as fleeting as their focus. They make good money on one deal, average money on another, and lose money on the next. They’re reduced to calculating returns based on averages over time, rather than the performance of each individual deal.
Also, investors who elevate profit above all other factors are those who tend to spend money as fast as they make it. They have to keep making it in order to support their extravagant lifestyle, which creates a self- reinforcing cycle. They become addicted to money and lose the ability to put it in its proper perspective as a tool and a byproduct, rather than an end in itself.
In Strait Path real estate, we’re not just looking to make money — we seek sustainable, consistent, and predictable profits. We don’t want the highest returns — we want the best returns when considered in light of every other investment factor.
Without a holistic approach, perspectives on profit become misguided. No amount of money is worth exposure to high risk and/or creating a win-lose transaction. The more time and effort you have to spend on a deal, the less it should be worth to you. The more you must depend on appreciation, the less appealing the opportunity becomes.
