Different strokes 4 different folks

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Property is a small industry when you get to freaks like myself who buy a lot of properties habitually. I often feel we need an anonymous group where we can stand up and say “Hello my name is Dean and I haven’t signed a sale and purchase agreement for 3 days 4 hours and 25 minutes”. The room cheers and claps except for the half the room who were making offers on their way to the meeting.

Anyway I digress. My point about the industry being small was that I had a meeting with a man yesterday who had been told to contact me by 2 different property people in 3 days in addition to my pastor also recommending me.

One of the people who recommended me is a mentor and also a friend of mine.
It was interesting to hear some of the things this guy had learned from my friend because whilst we are both very good at what we do, we have quite different “philosophies” in terms of our investing.

My idea of investing is to accumulate property until you have enough so that you can sell some down and freehold the rest. And if you get enough cashflow so that you don’t have to sell the n keep everything. Trading is simply a means of getting more deposits to buy more property.

My friend however said in his mentoring group that he is a trader because he considers buying and holding to be “accumulating” and NOT investing.

Now neither of us is right or wrong even though we are doing the opposite almost.

So on the same day as I was hearing this the very same mentor rung me with a deal he wanted to trade. To him trading this deal is investing. To me keeping the deal is investing.

What would you do:
Option 1: Trade the deal and make somewhere between 50 and 200K or
Option 2: Keep the property. Discount is 47%,, yield is around 14%.

It took me about .0001 seconds to decide what I’d do, how about you??

Stay safe ~ Dean Letfus @ www.massiveaction.co.nz