Real Estate and All That Jazz

My dad wasn't a wealthy man, nor did he have more than a high school education but he was one of the smartest people I knew. His advice has gotten me further than much of the knowledge I have accrued from college degrees and industry courses. Being raised during the Depression, he had to assist supporting his mother and 4 siblings when he was 12 years old (his father had died very young) by being a golf caddy. There was no welfare or public assistance at the time. Fortunately, the Stone brothers had inherited high intelligence and a strong work ethic. His brother, my Uncle Harold, had nothing more than an 8th grade education, but made millions of dollars in the stock market in the 60's and 70's. My dad worked at GE for 35 years as a "tool and dye maker" for jet engines. He also ran his own part-time business creating wrought iron fixtures for industry. He was always resourceful and optimistic. He was a man of short stature, reserved in nature but one of the most honest and diligent I knew. 

Here are the basics of his business plan:

If you can't take the heat, get out of the kitchen. This was advice he gave to me when I was complaining about rents and tenant issues. In other words, shut up and keep on working hard, or get out of the business. You will always have battles to fight, no matter what business you are in.

If you invest in several pieces of Real Estate, you will never be homeless Perhaps not 100% true, but more than once did I have to move into a rental unit I owned to compensate for a slow R.E. market and less income than I expected that year.

There is no such thing as being a "little" honest. Either you are or you are NOT. Hmmm. We all don't like to hear this, but it's the truth. Integrity goes a long way in this industry.

Buy "bread and butter" property. In a market downturn, the demand will be much higher than high end property.Wow, have I learned this. Not only the past few years in San Diego CA Real Estate but also in Boston in the early 90's. The luxury condos were sitting empty and my phone was ringing off the hook for the "less fancy" affordable units.

Invest in what you KNOW, ie. the stock market or real estate or stamp collecting. Not that you should not try to learn about other investments, but if you have a track record of success with Real Estate in San Diego CA, stick to it. Perhaps dabble in the unknown with limited funds, but save the big bucks for what you do well with.

Well there you have it. If anyone has anything else they may have learned about business from wise parents, please feel free to contribute.

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