As you may know, I put my daughter into college last week. Exciting and anxious times.
Anxious because of her belief that college was her only entry to success in today’s world. An ingrained belief system (from high school) that her choice of college would dictate the rest of her life.
Total nonsense and way too much pressure to place on a 17 year old. Here’s what I’m teaching her…
I attended 3 universities and received advanced degrees. Six years of hard work.
Twenty five years later, let me tell you what I’ve learned.
Financial freedom has little to do with college. Very little.
Don’t believe me? Ask Bill Gates of Microsoft. Ask Michael Dell of Dell Computer. They both dropped out of college to start their own businesses. And they are now worth a zillion dollars or so…
Yes, college teaches students how to think and live independently. Very important skills. But college’s main mission is to create good employees. E-M-P-L-O-Y-E-E-S.
I sat at the university last week with my daughter listening to them brag about their Career Services Center and I cringed. Literally. That is not the type of belief system that I want my daughter to fall vicitm to.
Don’t get me wrong. I obviously don’t fault the university. It’s the same path I went thru 25 years ago. They are following the charter of every other university in the nation.
BUT… I am continuously reminding my daughter that she is not limited to the traditional employee career tracks that the college will promote. She can do anything she wants with her life. And I am nudging her to the entrepreneurial path.
I guess my teaching is starting to pay off because she is considering majoring in business and minoring in entrepreneurship. Atta girl!
As we approach this Labor Day Weekend, the excitement builds over the fact that employers give their employees permission to take an extra day off.
Wouldn’t it be better to not have to be given permission?
Why couldn’t you choose your own 3 day weekends? How about every weekend?
In my opinion, that’s one of the joys of being an entrepreneur. More responsibility and more freedom. Now there’s an interesting combination.
And if you are considering entrepreneurship, consider big ticket apartment deals that you can do on a part-time basis.
Here’s my challenge to you. Make this your last Labor Day Weekend – the last Labor Day weekend where you need someone else’s permission to take Monday off.
Challenge yourself to show up and create your own financial freedom. Create a lifestyle where you choose your own Labor Day weekends.
It’s time that you showed up. For you and your family.
Be safe this weekend.
Lance
As you begin investigating the ins and outs of multifamily properties, you’ll hear terms such as “Class C Property.” Don’t let the terms make you nervous. Once you understand these terms, they will help you to understand a property’s assets and make quick decisions. Below you’ll find a guide to property classes and what they mean for you as an investor.
Class A: Class A properties are new, upscale apartment buildings. Average rents are high, and they are generally located in desirable areas. Class A properties have the highest valuations per door and the lowest market cap rates. Their main attraction is their area appreciation.
Class B: Class B properties are usually around 10-15 years old. They’re well-kept and have middle class tenants. They will have cap rates higher than Class A but lower than Class C properties. However, they are primarily appreciation, rather than cash flow, vehicles.
Class C: Class C properties generally have blue-collar and low to moderate income tenants. The buildings are 30-40 years old, and the rents are low. Class C buildings are very attractive to cash flow investors because they offer the best cash flow – compared to Class A and Class B. And they can be the first to appreciate in a rising market.
Class D: Class D properties are in shady parts of town. The neighborhoods feel like war zones and are plagued with violence. Class D properties can be cash flow machines, but they don’t appreciate because of their condition and where they are located. Owners of Class D properties have to spend more money on management and security.
These class distinctions are part of the vernacular; they’re not set rules used by appraisers or banks. Investors use them as a way to immediately understand the state of properties.
Class C properties are the bread and butter of the apartment industry for the cash flow investor. The best deals occur when an investor finds a Class C property in a Class B area and makes improvements to it. Likewise, finding a Class D property in a Class C area and repositioning it to generate more income through higher occupancy or increased rents can reap great rewards in equity.
SECURE AND CONFIDENTIAL