Flip Tip Summary
Are you properly measuring your progress in terms of building wealth? Investors often conveniently share their successes, but skip over their failures…but the bottom line knows the truth. Patrick Donohoe shares more in this FlipNerd.com Flip Tip…check it out!
Flip Tip Transcript:
Mike: Hey, it’s Mike Hambright from flipnerd.com. We have a quick VIP tip to share with you from Patrick Donohoe, who’s going to share a tip on measurement and score keeping as related to building wealth.
Patrick: Thanks, Mike. So yes, I grew up playing sports and the winners and the losers were all determined by a logical, non-emotional measurement which was, this team had one score, this team had another score, and the one that had more points essentially won.
I think when it comes to wealth building, I think individuals if they don’t keep score, they’re making guesses. And if they’re making guesses they’re typically more optimistic about how well they’re doing financially than what reality or what metrics or a measurement would show.
So my tip would be figure out a way to measure your financial success from an objective standpoint, and I think a good bookkeeper or accountant is worth their weight in gold because every month you can receive statements on the cash flow of your properties, your financial position and whether it’s net worth or cash flow positive or cash flow negative, you made more than you spend. Those measurements right are there are an objective way to tell whether you’re successful or not instead of you guessing.
Mike: Thank you for joining us for another FlipNerd Flip Tip. We’d also like to thank our featured sponsors: Home Depot, B2R Finance, and uglyopportunities.com. To listen to more flipnerd.com Flip Tips, or full interviews with the most successful real estate professionals in America, please check out flipnerd.com or the FlipNerd podcast in the iTunes store.