I thought I would share a true story with you that happened a few months ago. I thought the story was definitely worth repeating for an “all important real estate investing lesson” for www.reiclub.com members to remember for quite some time. If the following story was not true you would think I am making it up. I promise you that the story I am about to tell you is absolutely true!
You know the saying. Truth is stranger than fiction…
One of my investors and business partners’ friend was very, very concerned about keeping his money safe and secure. So, he bought a safe to keep at home and to keep his important belongings, including over $100,000+ in cash, in the safe.
There were not too many places this guy trusted, including banks. Plus the returns he would get on his money – especially in a CD or money market kind of investment – to him was not worth letting the bank use all of this money and pay him a paltry 1%.
So, he gets a safe and all is well – for a while…
Well one night he decides to help a friend of his with a cleaning type job his friend was working on. He left the house a little after dark and spent about 2 – 3 hours helping his buddy get an important cleaning job done for a restaurant.
Well, after the job is over his buddy drops him back at home and finds that during the three hours or so he was gone someone came in and stole his safe.
Now, this was no ordinary safe – it weighed around 200+ lbs – heavy safe. Nevertheless the trail was easy to spot from where the safe was, to where it was drag across the floor and drag outside to where it was loaded in some truck in the guys back yard to where the truck sped off.
The sad part is, even though there were clues and even a long list of suspects no one has been arrested, the trail has gone cold and this guy will more than likely never get his $100,000 back.
Worse, this guy thought he was being conservative and smart in preserving his capital and not too long before this happened he had an opportunity to get involved in the kind of investment property opportunities that you have been seeing in these emails.
Frankly, he would have been much better off if he did. I know, hindsight and all is 20/20 but let’s just think about this a second.
Even if he would have invested in say the perpetual 7%+ return on the typical real estate investment cash flow property that I that repeatedly mention to you often about he would have been able to:
- Have a conservative investment
- An investment producing 5X the return of a bank CD.
- A predictable and ongoing cash flow.
- The ability to take his money out of this investment when he wanted.
- Capital preservation.
- Even large amounts of income tax savings.
- No management either.
The nice thing about the real estate property investments is that they are really like a safe – BUT MUCH BETTER! Your investment dollars are ‘locked' in a very, very safe place producing higher returns and cash flows and lets just say that no one is going to come in while you are away and steal the property! Not going to happen!
Even if there is a fire, tornado, etc. there is INSURANCE that kicks in.
Its all covered! That is why people who invest in real estate sleep so well at night…
They are covered!
I hope this story not only entertains you but also gives you even more important things to think about.