control - Posted by Matt B
Posted by Matt B on December 19, 2000 at 07:53:01:
I was reading an article on the internet about how people who are in control of their lives, or at least feel that way, tend to live longer, healthier lives. I started to think about that as I talked to a co-worker yesterday about the lease option deal that I just did. This guy is a highly paid expert in his field working for the state government.
After I finished excitedly talking about the deal and the great terms that I worked out, he told me that it just sounded too risky. Well, I thought about it and then wondered which of us was better off. He makes a very high salary, has plenty of cash, is buying a new Mercedes, and goes on lots of trips abroad. The guy’s got a great life, right?
A few weeks ago I was working with him on the weekend on a problem that we were having with our computer network. Since it was just us, he confided in me that he hated his job. He told me about the constant stress that he is under, dealing with his boss and other “higher-ups”. He complained that they just didn’t understand a lot of stuff about what he did. This was easy for me to understand since I know what he does, and see him struggle and fight every day with these people making decisions that affect him, going against his advice.
After we talked about my real estate deal yesterday and he told me how it sounded too risky, I thought about the article that I had read. Is he in control? He certainly doesn’t seem to think so. I actually felt a little sorry for him as he complained to me about the stress, and what it was doing to his health!
Then I thought about what happened to me a couple of years ago. I had quit my job and started a business to do real estate deals full time. I was so excited that I told my family about it, along with anyone else who would listen. I remember my mom telling me, “Matt, I hate to tell you this, but you’re foolish.” She went on to explain that it was ridiculous to quit a good paying job to do these “risky” real estate deals and expect to be able to live off of them!
Now, I love my parents, but last year they lost their home of 25 years to foreclosure, after having made 6 figure income for years. When I got my house, I invited my family over. My mom, after seeing the large 5 bedroom house asked, “How does someone without a job buy a house like this?” I told her that I had already explained to her what I was going to do months ago, back when she called me “foolish”.
I learned something very important about “control”. I realized that every time I put a tenant/buyer into a house, or every time I did an owner financing deal on a subject to deal, I was hiring an employee! That’s right, that buyer would get themselves out of bed every morning, take themselves to work, just so they could pay me that monthly payment! They were producing money for me! Who was in control then?
When my parents lost their home to foreclosure, who was in control then? They had been working hard for the past 25 years to provide a bank with an income stream! They were “bank employees”!!!
My point is simple. Using creative real estate techniques showed me how to get control, and stay in control. I was much happier with my life in general when I was doing that. When I tell people about my job, they are impressed that I work for the state making a high salary. However, I’m not in control. Is anyone working a job in control? Is anyone working a job safe from their employer one day realizing that they need to cut back on staff, and because your salary is one of the highest, you get cut first?
I also let my perception of a situation regarding my divorce make me lose control. I simply handed over control to someone else, got rid of my business and properties, and complained about how bad the situation was. Who was in control then? Sure as heck wasn’t me! I gave that control to someone else!
I had a tenant/buyer who was in a property of mine for a year and a half. She worked for the state also and made a very high salary. She worked hard at making improvements to the property and rebuilding her credit, since she had been through a rough divorce and had to declare bankruptcy. She had always made her payment on time, and had just qualified for a mortgage when her employer told her she was being transferred! She had been a good “employee” for me, giving me a $200 a month cash flow as well as $3,000 up front. I actually felt pretty bad that she couldn’t buy the place. She had put a lot of money into it. But again, who was in control? Within a month, I had another tenant/buyer in the house who had given me $4,000 as an option deposit, plus I had a slightly larger purchase price for them now due to appreciation that my “employee” had given the property!!
Now that I am starting to do deals again, I am beginning to feel “in control” again. It looks like I’m going to have a long life ahead of me!!!
Debt up to our eyeballs and no income except for a couple rentals.