Change Your Thinking—and Change Your World
“People are looking for a place for their cash, and the security of holding something physical is appealing,” said Anthony Maxwell, director of Livex, the London–based wine exchange. “They are looking outside security, and gold is not what it used to be. This is why hedge funds and private investors have acquired single-family houses for cash flow and upside potential.”
2018 started with higher home prices, historically low mortgage rates and, basically, a seller’s
market. In recent months, home price growth has faltered, interest rates have risen to their highest level in more than seven years and favor has shifted from seller to buyer.
You’re Not What You Read
Yes, a buyer’s market is coming again.
Think about that. Do you believe it?
If you’re anything like me, you’ve probably read all kinds of economic, housing and global predictions for 2019. Let me just get this out there right now: Everything I read is someone’s opinion that is supported by the used toilet paper it’s written on.
Sure, some of the opinions and predictions are backed by usable data, but most of what I read will have zero impact on me and what I do in the future. The same goes for you. Do you want to know why? Because others’ opinions have no reflection or bearing on your life or mine. Only our opinions count, because our actions come out of our view of what we think about our specific real estate markets. Don’t get me wrong—others’ opinions can help shape our thoughts and views but, ultimately, all action is driven from what we believe.
Look at some of the recent contradictory predictions for 2019:
“Less Growth and More Uncertainty”
“Experts Expect Steady Growth”
“Prepare for Heightened Volatility in the Coming Year”
“A Great Economy Til 2020”
What Do You Want?
Forget about everything you’ve read and take a deep look inside. Challenge yourself to write out your criteria for investment. If you don’t have written goals, you don’t have a plan for your life, and you will end up being a “walking generality” instead of a “meaningful specific person.”
Start by following these four steps:
1) Identify your financial goals.
2) Determine whether you want to invest in single-family houses or other real estate.
3) Establish how to buy it.
4) Decide where to buy it.
These four steps require you to think about how you want your future to look. You must approach the real estate business with specific intentions and purpose.
I still have my day planners from the 1980s with my goals for the next year, five years, 10 years and 30 years. It was interesting to look in the rearview mirror of my life and realize I have gone off course quite a bit with my financial goals.
I’ve tracked myself every year since 1985, and I’ve had a few life-correcting experiences along the way that shaped me into the person I am today. Â
And guess what? Two years ago I reached all my financial goals. It was very unsettling for several months because those goals were a large part of my purpose in business. Now that I’d reached them, what would I do?
In my self-discovery,I realized that when you reach your goals, then that becomes your new starting point to create new goals. I decided to reinvent myself and set up an entirely new set of goals to give new purpose to my life. One of the things that occurred to me in this period of self-reflection was that none of us are self-made.
Oh, I’m sure some of you probably think you made it on your own because you came from a working-class family like I did. But let me tell you, there was and is a boatload of people I relied on to help me get where I am today. Whatever I have accomplished would not have been possible without a supporting cast. I bet the same is true for you.
Financial Freedom
In that time of renewal, I realized that some of the greatest joy in my life came from helping others. To that end, I wrote a book. The best part? It’s yours for free. (See how to obtain a copy on the back cover of this magazine).
I wrote the book for those who want to be successful in the single-family housing business and become financially free. When you become financially free, it’s a lot easier to live life on your own terms. That’s why I do what I do. And you can do it too—it’s all in the book. Â
At some point, I thought I would use the book to create a teaching platform to coach and mentor others, but I’m rethinking that as my life is ticking down. At the end of every year, I reset my goals for the following year and the years ahead. I use the wisdom I’ve gained so I can continue to evolve in business and as a person.
That’s why all these predictions about the future of the housing market, interest rates and Trump—yes, Donald Trump—do not impact your business decisions and U.S. real estate, except to the extent of taxation. What should impact your business decisions going forward are your:
- Goals
- Age
- Working capital
- Access to credit
- Knowledge
- Skill set
- Ability to take action
Time and Money
When we’re young, we usually have more time than money. Thus, we have more time to invest in a skill set that allows us to be financially rewarded. So, if the goal is to make money, then study how to make money. When I was growing up, I wanted to do what I wanted, when I wanted and for how long I wanted to do it. For me to do that, I got involved in real estate.
What about you? What about your children? What are they learning, and how will they create their value in the world? If we invested the monies we earn over the years, then as we get older, hopefully we have more money than time. At this point, you get to plan out your legacy and what you want to be known for.
So, What Are You Going to Do?
Can you see that relying on headlines and what the pundits say has no bearing on your future? We’re all in different seasons of life. When you’re young, you can afford to take risks; as we grow older, we become more risk averse.
Remember, the only views that count toward your future are the views you hold for the future. Folks, it really all starts with a mindset for positive outcomes. I firmly believe that business is good or bad in between your ears. You can have all the information in the world, but if you don’t take action, what good is it? Business is about acting and getting things done.
Investing for 2019 and Onward
Tune the naysayers out of your life and take a breather. Take stock of where you are right now financially, physically and mentally. Determine what it is you want out of what’s left of your life. Lest we forget, tomorrow is promised to no one, but often we think we are invincible. We become prisoners of our habits. For many of us, our primary fulfillment in life comes from work.
Wake up! How old are you and how much time do you have left? What is it you really want to do with the limited time you have left?
Is it all about work and sacrifice?
I had a terrific friend who died in December. He worked and sacrificed and lived well below his means. Anthony took pride in the fact that he never squandered money—he told me those exact words five days before he passed away. His net worth was several million, but you know what?
He was a prisoner of his success, and he thought money was only for investing. He ate every day at McDonald’s, Taco Bell or KFC because it was cheap. He died of complications from diabetes. The doctors chopped half his foot off, but he died a week later.
I’ve learned a lot from my friend over the years, as he taught real estate to anyone who would listen. He knew the ins and outs of hard money lending. At the time of his death, he had more than 100 hard money loans out. But you know what I’ve noticed at funerals?
There is no luggage rack on the hearse to take your money with you! Enjoy the fruits of your labor and understand why you do what you do. If your only goal is to amass money, ask yourself why and what you will do with it. What good is the money if you have no one to share it with or help others with it?
It’s lonely at the top, folks. Go through life with a thought-out plan of how you want your life to be, and then go and do it. We all have a number—a net worth number and/or an income number that provides the lifestyle we want to attain. What’s yours?
My gift to you is a digital and audio copy of my book. The book is about what I do in business and some challenges I went through. Send me an email and let me know what you think or need to know more about.
Robert “RJ” Palano
Robert “RJ” Palano has acquired and sold properties in 12 states and over 50 cities throughout the United States. He purchased his first property in 1977 and started acquiring foreclosures in 1979 in Western New York. By the late 1980’s, he managed and owned over 300 properties. He is considered an expert in single-family home investing and strategically using self-directed retirement accounts for investments. RJ has been involved in the creative acquisition and disposition of real estate for nearly 40 years. RJ Palano has written three books, with the intent of passing on wisdom accrued through his long career for people with less experience. His most recent book is “Confessions of a $200 Million Real Estate Dealmaker.” RJ is currently the CEO and acquisitions director of Buy Cash Flow Properties, a Tampa-based real estate investing company that primarily provides turn-key single-family homes for real estate investors in Florida and Georgia. Since 2012, Buy Cash Flow Properties has acquired and sold over 1,000 homes in the Atlanta area to international investors, hedge funds and U.S. buyers. Turnkey sales to investors exceeded $100 Million over the last few years in the Atlanta area. RJP@ BuyCashFlowProperties.com
