Surprises are funny things. You think a friend is visiting family in another state. Then, you’re surprised to see him in the grocery store. That kind of surprise changes you in a little way. Now you know your friend is here, not there. Other surprises produce more dramatic changes.
Last year, someone I know well was in an accident that could have been fatal. It was a matter of inches and angles. No one planned for the accident or its aftermath. It was one surprise after another.
It’s not a surprise that he has been seriously considering his life path. He’s slashed some prime business/career activities. Other activities that used to be mundane have become important. Now, he pays more attention to his health, fitness, and social interaction.
What is enough contingency planning?
I’ve blogged often about living life intentionally and not drifting. I think it’s important to know what kind of life you want and then take action to move in that direction. Planning makes it more likely you will wind up where you desire.
You can account for some things that might happen. But you can’t imagine everything that could happen, let alone plan to deal with them. That’s where those surprises come in. Contingency planning is good, but it stops at the limit of our imagination and planning capacity.
Investing in Income Property
For over a generation, I have served sophisticated millionaires who want to expand their success by purchasing operating income property. Many are surprised and excited to learn why San Diego apartments are a low-risk escalator to greater wealth.
Surprise exposes an opportunity but is worthless if you don’t act on it. Less than 10% of those who contact me to buy apartments write even one offer. Why is that? There are several reasons.
Some conclude that San Diego apartments are a wonderful option, but they need or want more cash to buy, operate, or upgrade property. I suspect many are uncomfortable when they realize they must compete to purchase an apartment property. Many people are comfortable being the judge at a beauty contest but can’t imagine being a contestant.
Learning how to value used apartment buildings takes longer and is more emotional trouble than most anticipate. Many people lack confidence in their ability to learn a new field at all. They abandon the process when they realize they must commit $250,000 or more based on their judgment.
The Hidden Value in Surprises
Surprises cause us to change our thinking. Small surprises update our knowledge. More significant surprises can change our lives, but only if we act on our new understanding.
My friend is working out significant life changes. Many investors are climbing aboard the low-risk escalator to wealth and investing in San Diego apartments. Others have squandered the value of their surprise.
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What was your biggest surprise in the last month?
What have you done with it?
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Terry Moore, CCIM, is the author of Building Legacy Wealth: How to Build Wealth and Live a Life Worth Imitating. Read his “Welcome to My Blog.”