Entrepreneur of the Week, Post # 5 Entrepreneur of the Week The Lone Ranger - On Gold, Real Estate and the Wild West James…

Entrepreneur this week, post number 5
# Initiated week

The lone rider - on gold, real estate and the Wild West

James W. Marshall, was sitting for a moment resting from the construction of the sawmill on the banks of the River Mills in Coloma California when he suddenly noticed glittering golden stones from the depths of the creek. The year 1848 had just begun and Marshall, a New York carpenter who came to the Sierra Nevada mountains to seek a better future in California was just one of 6,500 new settlers who dared to cross the not-so-easy road through the Rocky Mountains to the Pacific coast.

Mr. Marshall had too big a mouth and he straight ran to tell the guys about the gold he found, from there it was already leaked to the press and the rumor about the gold in the California mountains spread like wildfire and that was even before there was a watchup. By 1849 California was flooded with hundreds of thousands of adventurers or anyone who had a torii at home. They left their families and jobs in pursuit of the golden dream and turned everything on earth to find more of that glitter. Soon large companies came into the picture and about 4000 mines were built to reach and extract the gold layer in the ground. In order to house the mining workers, entire towns were built, roads, railways, pubs, brothels, banks, clothing and footwear stores were paved. By the end of 1849 the area was bustling with 700,000 new settlers who all had a common dream, to get rich and fast. California has grown rapidly and has become a full-fledged state in the United States.

But the truth is that only a few really found gold and got rich. After a few years, the large mining companies exhausted the rich layer of minerals and thousands of mines and some of the towns were abandoned within a few years.
Those who did get rich were usually the owners of the banks, the manufacturers of the digging equipment, the owners of the taverns and the brothels. So did the infrastructure and transportation companies that established and survived the chaos days of the end of the gold rush period with long-term strategy and vision.

I dig for you because the hysteria always comes back and probably the hysteria too, it just changes its face and today in my opinion we are in the midst of a real estate panic in the United States. It seems to me that anyone who has a few dollars or an HDTV channel on TV, Israelis, Chinese, Indians, or institutional, comes into the game or knows someone who invests or has an investment company or leverages or leverages or does flips or the demon knows what, anyone who has a hammer At home we become a contractor. . My colleagues will probably also testify, our challenge in 2019 is not to attract investors, the big challenge today is to find a worthy inventory.

Now ask yourself a somewhat disturbing question, why does anyone who really knows where the pure gold lies tell you where it lies? It is unlikely that they will actually bury the pure gold in their pocket and sell you instead of darker gold at an inflated price? Maybe they do not really know or really care if you discover pure gold, as long as they've already made the rounds.
Now is your time to raise an eyebrow and ask, Isn't Drorat's exactly what you do when you lend to investors? So the answer is yes but not exactly. I will explain.

When I entered the game in 2010 there were gold, gems and diamonds on the streets of the USA. Not always polished but with a long term entry it was hard to make too many wrong moves. Today, some claim that we are at the end of this period, so it is worth entering and investing in the game only if you are interested in a long-term strategy. Today is no longer the time to "make the move". In such a market it is not worthwhile to bet on future market values ​​but to be based mainly on solid moves. Your leverage factor should be sane. I really like the BRR Buy Rent Rehab model - and one for several properties also peppers the investments with bank leverage because at such low interest rates you don't say yuck about food, but be careful of flip investments and enter them only if the margins are really good.

But my main message for today is that the investor is also the entrepreneur and it is desirable that he has an entrepreneurial mentality in order to be successful. Therefore, the investor must be in the know, and rely mainly on himself and his tolerance on the risk-chance scale. I believe that if you are not a big kid who can own the house and take responsibility for your investments, someone in the form of a turnkey company or some fund, you will be fined too much, just like the banks and brothels did during the gold rush. How will you know if you are built to own a home? Ask yourself the following question, how will you feel if at the end of the first year of the investment you find that your return was only 4% and not the 10% you built on it? Some investors even know that in the long run the numbers are balancing, it is difficult for them to accept the rules of the game and there are those who are committed to entrepreneurship in the long run and they are the ones who usually succeed.

If you do not understand the risks that exist in this world, you should consider whether this business is for you. There are quite a few failures in this business. Like in the Wild West there are gangs of bandits, railroad robbers, corrupt marshals and Indians firing poisoned arrows. Later on, I will elaborate on some of the magnificent failures that I have had alongside the successes. The journey is not suitable for the faint of heart. Also forget about the cliche of passive income. There is quite a bit of preoccupation and headaches here. But the opportunities are also amazing. Wise investments will yield excellent returns over the years, holdings and in many cases an increase in value as a bonus.

Decades after the gold rush when the dust of the carriages settled, California became the sixth largest economy in the world, those who invested there and survived the days of the gold rush became rich in many days. If you are financially and mentally prepared for the game, it may be that entering the world of American real estate is the beginning of the wonderful and profitable adventure of your life that is worth more than money.

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