I remember when the light bulb when off over my head after reading Kiyosaki's Retire Young, Retire Rich. It's like a whole new world opened up for me and I felt both exhiliration for the new opportunities and disappointment that I wasted a good part of my life living within my comfort zone. I guess it's one of those things that some people "get" and others just don't (or won't).
I had lunch yesterday with the co-worker I spoke about recently, who was told he is getting laid off. I decided beforehand that I wouldn't mention any REI or related stuff unless he brought the subject up. I had done so on previous meetings with him, and the whole concept appeared to go through one ear and out the other.
So, I basically spent the first part of our lunch listening to his current life story and what transpired to get him laid off. Basically, he said that he was set up (and knew it) from the beginning by his management. They put him on a project that was destined to fail, and he knew it from the beginning. However, his management chain assured him he had nothing to worry about and they would support him. Well, 6 months later, the project came crashing down, and he was left holding the bag. Now, he says, management is treating the failure as HIS failure, and are - as he put it - lying through their teeth now about all those upfront promises (I guess it's one of those times where promises should be put in writing to CYA). And on and on he went.
The conversation then migrated to his divorce last year and how he just paid his ex-wife the last of the money he owed her for half the house, etc. Doing so left him with -$0- in liquid assets with only his home being anything of worth. I struggled to keep my mouth shut, believe me.
Then after talking almost non-stop for 30-40 minutes, he asked how I was doing, how my family was doing, and if I was still doing this real estate "thing". I couldn't restrain myself any longer, and out blurted a 15-20 minute presentation on REI once again, only this time I included some other points like expanding your comfort zone, taking risks, and basically telling him this may be a blessing in disguise for him. I told him that his $250,000 house was completely paid off, and he was sitting on a gold mine. But he'd have to act quickly while he still has a job in order to tap into the equity and do something with it. I also mentioned how he could sell the house and buy 2-4 more with it and get MORE cash each month by doing so. I aso told him he could sell his house with owner financing and get an almost guaranteed $2000-$3000 month from it. And on and on.
At first, he seemed interested, but I could see as I was talking that the invisible force of staying in his comfort zone was slowly muffling his ears. Undoubtedly, most of what I said must have sounded like a late-night infomercial to him, and within an hour after our conversation, disgarded. I also sent him some links to a few of my favorite REI web sites, but I'm thinking that email will sit or get deleted as if it were spam.
I guess some people fail to realize the opportunities that exist for them, but it takes THEM to capitalize on them. I figure I'll get an email in a year or two from him, saying he got a job as a manager at a Home Depot or something. :-(
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3 comments:
Steve,
Cut your buddy some slack, not everyone is cut out for real estate as witnessed by the rise in forclosures caused by "Investers"/speculators... Ask yourself where they went wrong? They read the millionaire mind, Rich Dad, No money down etc & the gurus made it out like investing is as easy as pie. They fudge the numbers to come up with cashflow based on PITI instead of true numbers..
Who knows, he might turn out to be one of the burned out("I didnt know it was this hard") landlords that i buy property from.
He might do better with forming a regular business that he could do part-time.. where his entry point costs & risks are lower....
Starsky - Actually, the bulk of my speech was about mindset more than the specifics (although, I did use REI and business building in general as examples). We've talked extensively in the past (before the light bulb went off in my head) about building our own business(es), so I thought it would jump-start his mind. Again, some people are willing to expand their comfort zone, and others are just comfortable where they are at. While he dreams big, his reality is (and appears will always be) the same. Cut me some slack! ;-P
Aw, that sucks! Poor guy! I wish he had listened to you. He was probably just wondering how he would pay the new mortgage on his house without a job. OR, he was maybe thinking about slacking off for six months while taking unemployment and enjoying his nicely paid-for house. I think his problem was the lack of security. His house is his security blanket.
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