I’m going to talk with you about real numbers. I just left the bank with a $12,500 cashier’s check. I couldn’t deposit it in another bank today because it had closed.
Doesn’t $12,500 sound great? Yes, it does. But it’s a meaningless number to me and my family as far as this particular land deal goes.
My net on this deal, which I did in partnership with others, was $5,400. There were expenses and operating overhead involved. And I will pay taxes on the $5,400 I earned, making the net even lower.
So when you see people flashing checks on Facebook and Instagram, take it with a big grain of salt. They’re showing checks for the sale of a property… maybe. But the amount they take home is much less.
People who share this type of information are hurting the real estate investment business. The numbers they’re talking about are lies, and they’re misrepresenting the possibilities for people just starting out.
If they’re showing a photo of a fancy car, the car is probably leased. Some people show fancy homes they’ve rented for a day on Airbnb. Really… it’s not where they live. It’s a crazy ego stroke.
Be an adult; be skeptical of others and honest with and about yourself. A closing check is just that. You use it to pay staff, lenders, taxes and other expenses like marketing.
Don’t fall for the shiny objects that some people feel compelled to brag about. Stick to the basics and you’ll make a good living. You’ll work for yourself and feel good about yourself.
Listen and learn:
- Profit is not the net take on deals… don’t pay attention to the braggarts.
- Keep up with your real numbers and share only your real/net numbers… data, not drama.
- Be skeptical of people who brag about money, homes, boats and cars.
- Stick with the basics, keep learning, and keep it real.
Mentioned in this episode:
- Joe’s podcasts: Real Estate Investing Mastery Podcast
- Joe’s new lease option webinar: SLOClass.com
- CRM and more: REI Simple
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