With the highly acclaimed The Wolf of Wall Street hitting cinemas last week it’s made me think.
Is there something that us 20 to 30 year old property investors can pick up from a sex, drug and partying addict who made and lost $200 million before he was 35?
The interesting thing about white collar criminal Jordan Belfort is not just the fact that he pushed his private helicopter into the ocean or talked many of Americas top 1% out of their hard earn dollars, but the fact that he has turned his life around in a bid to repay the damage he’s made.
Having read The Wolf of Wall Street and watched the movie I have come to two simple conclusions:
1. We need to stop putting so much of our future in the hands of others.
So often as young investors we are told we don’t have enough experience, we don’t have the cash flow, we haven’t gone through the tough times and we should talk to people who have been there before us. In reality these are all excuses aimed to protect us and keep us small.
The property game is filled with experts and marketing companies who will be happy to make their future by shaping ours. But where does this really leave us?
Take the time to learn the legal, accounting, tax, sales, renovation and rental aspects of the property equation. Build the skills through your own experience, and build a team you can trust.
As Jordan Belfort would say, in todays world its up to us to take responsibility for our future, our goals and lifestyle we desire.
2. If its too good to be true it probably is.
In the Wolf of Wall Street Belfort’s “pump and dump” idea was simple – get his firm to accumulate shares of thinly traded companies, stash the shares into secret accounts, and “cold call” investors to convince them that these companies were potential gold mines. As his company made these calls the influx of buy orders would rapidly inflate the price, convincing investors that the stock was rallying.
In reality, the real money was made by Belfort, when his firm unloaded its shares at a huge profit.
Its no different in the property market.
If an agent, marketing firm, financial planner, or anybody else with an external interest in selling you a property is guaranteeing easy money, you’ve got to question their motives. You can make exceptional money through property investing, but you really need to understand the game.
From time to time, and with more knowledge and experience, there is the opportunity to make fast and easy money through property, but its rare to find a strategy that beats time in the market.
What are your thoughts? Do you believe in trusting the “experts” like Jordan Belfort more than trusting yourself? Let me know in the comments section below!