You’re not a loser, are you?
After all, you’re here on BiggerPockets, so I’m confident you’re not. Seriously.
But I’m writing to help steer some of you clear of a pitfall that has caused many losses and much pain in the real estate investing world. And I hope you’ll give me some leeway as I construct a crazy analogy to help make my point.
Charlie Munger, Warren Buffett’s legendary partner, reportedly said something like this:
“If you’re 5’ 3” tall, you should probably not play in the NBA. The odds are stacked against you. You should choose a game where you can win.”
Have you counted the cost?
Most real estate investors can make money investing while enjoying a full-time career or retirement. It can be stressful for sure. Dealing with toilets, tenants, and trash is never fun—but thousands in the BiggerPockets community pull it off every year. And I applaud each of you who do.
But many who start in single-family residential set their sights on commercial real estate at some point. Our own Brandon Turner took this path. And so did BiggerPockets author Brian Burke. I traveled the same path myself.
It makes sense, after all. Most of the Forbes 400—America’s wealthiest—invest in commercial real estate to protect and grow their wealth. So, it’s tempting to follow this path.
Most of us played sports at some point in our youth as well. We dreamed of playing in the big leagues and fantasized about the fun and fortune it would bring.
But a closer look at what it really takes to be Michael Jordan or Michael Phelps shows us a life of rigid discipline. A life that skipped most of the world’s pleasures from a young age. A life fanatically dedicated to their craft. A life of much pain and loneliness that led to fame and fortune a very long time later.
There’s nothing wrong with being short. I have two beloved family members who grew up to about the 5-foot level and stopped. But it’s important to know where you fit…