Trusts are my favorite real estate investing tool, with many reasons to use them. Once you begin using Trusts in your real estate investing business, you’ll have ‘aha’ moments fairly often.
Like life before your spouse or children, once you ‘get’ the Trust concept, you can’t ever imagine your life without them. Even you kids will be glad you started using them!
For me, Trust is a simple idea: Do The Right Thing. Some people might find it tough to always do the right thing… especially when money is involved! For Real Estate Investors, the building and maintaining of Trust must be as consistent as the rising of the sun… Each and every day.
Do it right all the time and you’ve got people begging to do business with you. Screw up even a little, and you’ll spend more time and energy trying to rebuild Trust, or paying for it in other ways. This isn’t only about Real Estate Investing – this goes for every relationship you have.
Last weekend, I had a great conversation about investments with some friends. They finally realized that there is a big distinction between assets & investments. While they’d never thought about those differences before, it occurred to me that most people haven’t thought about them either. I’m always surprised when somebody justifies a purchase with the term, “It’s an investment”.
“Oh, I buy expensive watches. They’ll be worth more in 20 years” a new friend said to me. “Buy a classic car – it’ll hold it’s value” was something I’ve heard before. Or, “I’m buying and holding on to great musical equipment like microphones, because good gear is always going to be good gear” was another comment. These bright, clever, and driven people claimed that all were good investments. But they hadn’t thought about it from the correct vantage point. If they had, they’d see apples and oranges…
It’s been a goal of mine to help my fellow musicians learn more about how to invest. Whether it be fixing up and flipping or buying and holding houses, private lending, or something as confusing as ‘buying defaulted notes’ (What?!?!) or some other methods for making their money work.
While vacationing in Skaneateles, NY with my family last month, I was chatting with my cousin about the return his financial planner has been getting for him. When he said “5%-8%” I immediately thought, “Yup. That’s what EVERYONE says when I ask about their planner and the return they usually get for their clients.” He used the phrase, “It’s a conservative approach”. I’ve heard it before. It’s what most people think and do: Put your money with the planner, let it sit for 20 or 30 years, then retire, right?? Not so fast…
Self-Directed IRA Expert, Kaaren Hall
I’ve known Kaaren Hall for over four years, and have watched her grow www.uDirectIRA.com into a powerful resource for people wanting greater diversity in their retirement portfolios. Take time right now and read this! Then go to her site and learn how you can turn your IRA into a Self Directed IRA… You’ll be amazed at how many more investment choices you have.