Blogs

My sister gave me a pink Hyacinth plant for my birthday in March. It was extremely low maintenance – I just needed to keep the container 75% full of water. I added a glass globe to protect it from our cat’s nibbling and set it in a sunny spot.

After only one week, the plant had doubled in size and was already blooming! I was so excited! I added another globe to protect the graceful leaves and gorgeous blooms. I could not believe how quickly is was growing! Although I had absolutely nothing to do with the plant’s success (other than adding water), I admit I patted myself on the back for “growing” such a beautiful plant.

By the first week of April, the blooms had died and the leaves were starting to wilt.

Since I had patted myself on the back for the plant’s initial success, I had to ask myself what I had done to destroy the plant. The reality was that I didn’t have much to do with either. Other than adding water to the container, the plant did the rest on its own.

Which of course made me think of investing. ????

The early excitement and huge initial “returns” that the plant provided remind me of a day trader. Of course, a day trader has to do a lot more than add water, but the reality is that their only real tool is timing. If they are able to buy low in the morning and sell high in the afternoon, they can realize a quick economic windfall, along with all the thrill and excitement that provides. If they end up buying high and selling low, they suffer immediate negative financial consequences.

Talk about an emotional roller coaster! Day trading is not for me…I couldn’t deal with the constant stress and push to do more and more and more. After all, if you’re not trading, you aren’t making money. You get a report card at the end of each day, and it’s either a pass or fail. You either made money or lost money. If you simply maintained your position, then you’ve worked for free that day, so that’s a fail in my book.

Investing in real estate is more like planting a tree. It’s not quick, doesn’t have all the thrill and suspense, doesn’t give you daily feedback, and takes time to see the full results.

But boy, the shade that tree provides over its lifetime is a benefit that you can enjoy over and over again! Sure, you have to nurture the tree, give it the water and fertilizer it needs, protect its bark from woodpeckers and rabbits, remove branches that are damaged…in other words, it’s a mutually beneficial relationship – I’ll take care of you so you can take care of me.

That “shade” is cash flow and income tax savings. You get to enjoy those over and over again – without diminishing the underlying value of the asset! As long as you continue to take care of your asset, the asset will continue to take care of you.

And when it’s time to move on, you can cut that tree down and use the lumber to build a new asset or sell the lumber outright, just like a real estate investment!

Trees and real estate investing – who knew?!

If you’d like to start planting your own trees, we’d love to help! Trees take time to grow, so the earlier you start, the earlier you will see results.

Contact us for a no-obligation, no-commitment, no-pressure meeting to discuss how we can help you achieve your financial goals through real estate investing.