I Have a Very High Opinion of My Opinion

Posted on July 9, 2013 by

To steal a quote from Pete Fortunato: I have a very high opinion of my opinion.  I think that 99% of the time, I’m 100% right.  Welcome to Willieland!  Just imagine what beautiful Kim has to put up with every single day.

Real estate investors regularly call seeking our opinion about potential deals.  Too often, after we explain that their deal is probably a stinker, the “discussion” turns into more of an argument about what a good deal is and what it is not.  Let’s look at an example.

Since 2008, Fred has called about properties he puts under contract.   As far as I know, he has never taken my advice.  It seems he does one money-sucking, high-drama deal after another.

Last week, Fred called about a triplex he just put under contract.  Because the investment property is in a VERY bad area of town where gunshots regularly ring out, I advised him to run from the deal – even if the property was FREE!  Fred far from agreed, so back and forth we went.

Finally, because I wanted to get back to my life, I said to Fred, “Look, I don’t know what I was thinking.  This is a wonderful deal.  You should immediately hop all over it.  You’ll probably make a million dollars.  Sign that bad boy up today!”

About three months from now, if Fred buys this rotten property, he’ll call again.  That call will begin with, “Bill, I recently bought a property I can’t rent.  Any advice?”  For reasons I can’t explain, some investors insist on continually trying to pound square pegs into round holes.

Folks, the rules for being a successful real estate investor are pretty straightforward.  You have to buy solid, single-family homes in nice neighborhoods that easily cash flow in good and bad times. 

In our case, Kim and I primarily invest within a five-mile circle around the Cartersville, Georgia Wal-Mart.  In this circle you’ll find good schools, nice churches, great neighborhoods, and safe streets.  The homes we buy are either ranches or split levels with three bedrooms and two baths.  These basic rental properties are our bread and butter.

It seems that every time Kim and I stray from this recipe, we get burned.  This is why I so strongly advised Fred to pass on his triplex.  It’s not that I’m a genius – far from it.  It’s because I’ve spent too much time pounding on that proverbial square peg.  Finally, at 53, I’ve learned the lesson.

If you are a real estate investor or thinking about buying some investment properties for retirement, please don’t follow Fred’s example.  Stick with what works.  You’ll be glad you did.

Bill & Kim CookBill & Kim Cook are a husband and wife real estate investing team. They live in Adairsville, Georgia and have been investing in real estate since 1995. They specialize in buying single-family homes, mobile homes and mobile home parks. They also run North Georgia REIA and teach folks how to successfully invest in real estate.

Contact Bill & Kim Cook

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