Real Estate Ray's Blog: So, Do You Think You Want to be an Investor?

So, Do You Think You Want to be an Investor?

     So, do you think you want to be an investor?  It is a question I asked myself many times when I was younger and yesterday it was fresh in my mind again.  I dodged a real investment bullet!  I had been contemplating buying a few shares of Luckin Coffee.  It fell almost 70% before I could pull the trigger.  I was really Luckin, I mean, Lucky! It reminded me of all the bullets I was not successful dodging, including:

 *Evicting tenants

 *Loan modifications and foreclosures

 *Fielding a surprise phone call from a neighbor of a tenant.  Her cat was killed by three little dogs owned by my tenant.  My client was not supposed to even have one dog.  

 *Investing in the stock market just before the crash of 1987 and every single crash since then, including the most recent crash.

*Investing into an oil well that struck oil!  The oil was quickly replaced with salt water.  Ha! People buy oil.  You have to pay people to take salt water. I did not even know that could happen.  

Oil Drilling Book

 *Investing in a guaranteed ATM business that went to zero.  A tax loss!  It also caused me to pass on a recent ATM investment.  My friend invested and gets a check from every, single month.  A big opportunity loss for me.  

 *Investing in a new drug stock.  Held it for years.  Their drug was approved and....I LOST MONEY!

 *Investing in a private restaurant chain called Papashon.  The District Attorney told me the ring leader had run off to the Philippines.  Another tax loss and nice dinner.  If I ever get to the Philippines, I may have to look that guy up. 

   Papashon     Papashon Express

* Investing in a new real estate brokerage.  The stock went to zero.  The broker made the stock holders whole again.  It is nice to know there are still good people in the world.

 

     There have been other hard lessons along the way.  Lots more!  Has it been worth it?  Yes!  Do I wish I was smart enough not to not lose?  Of Course, but that is just not realistic.  If you invest, there will be good days and bad days.  Notice, I only mentioned my bad days.  The good days have definitely outnumbered the bad days.  I wish I had started younger, but fear paralyzed me. It turns out the imagined fear was worse than reality. The real risk is doing nothing at all.  

 

Luckin coffee fell even more today.  Maybe it is time for a very small portion.  What could go wrong?  ;o) 

 

So, Do you think you want to be an investor? 

 

 

 

             eXp Realty of California, Inc

Raymond Henson, SRES, GRI, e-Pro

Past Client Testimonials   

3412 Babson Drive

Elk Grove, CA 95758

RayRHenson@gmail.com

916-698-8415

 

 

Comment balloon 8 commentsRaymond Henson, SRES, GRI • April 01 2020 03:36PM

Comments

Hi Raymond,  Thanks for sharing your insights into investing.  Yes, we really need to consider those "too good to be true" investments and do our research before investing.

Posted by Bob Crane, Forestland Experts! 715-204-9671 (Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities) 4 months ago

It takes foresight, risk, and intestinal fortitude, just like being an independent contractor not knowing when the next commission check comes... never the less it beat being on a weekly paycheck:)) Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 4 months ago

Hi Raymond Henson, SRES, GRI - we all live with risk.  I starting investing after I got my tax refund in 1987 and then October 19th.  Yes, but that passed and I was fine.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 4 months ago

Good morning, Raymond Henson, SRES, GRI investing is not for everyone....however, if one invests in real estate and buys at the right time, that's a score!!!  the time is coming soon.... people make money at the expense of others, unfortunately.... and one person's empty pockets becomes anothers overflowing.... sounds horrible unless you're an investor.... that'show it goes....

investors will wait and then jump in at the right time... 

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) 4 months ago

This was an interesting read. I purchased a few stocks in the past and did not do well with them. Oh well! 

Posted by Kat Palmiotti, The House Kat (406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty) 4 months ago

Surely it will go back up after this virus stuff passes, so you should buy it now that it is on sale, right?

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 4 months ago

Bob Crane, the one that probably was the most frustrating was the oil well.  It produced well for at least a month, then water.  I found more traditional oil investments after that.

Endre Barath, Jr., It has been a lifetime, it seems, since I had a weekly paycheck.  It is another reason I invest, to smooth out the income and retire one day.  At least have the option to retire.  I like what I do, though.

Grant Schneider 87 was a pivitol year for us.  My wife had owned some Walmart stock for a few years.  The 87 crash sent the stock down and we considered our options and purchased a bit more.  It worked out fine.    

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 4 months ago

Barbara Todaro, the beauty of investing is that it is available to everyone.  Even today, I will buy as little as one share and add to the position over time.  Real estate is more risky, but if we purchase went rents cover costs, plus a little extra, time can fix a lot of mistakes.  My dad tried to teach me that when I was young.  It took me a long time to do it.  It has made all the difference.

Kat Palmiotti,  One of my closest friends will not buy individual stocks.  He buys index funds.  He does well and probably sleeps much better than me at night.

Brian England , If the market does not go back up, I think we are all in trouble.  I think I will stay optimistic and invest.  I do not time the market, but I do tend to invest more when markets fall.  So far, so good.

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 4 months ago

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