DO YOU KNOW YOUR PAPERWORK?
Everyone has herd the popular statement Cash is King, and it’s true for the most part…but I would like to expand that a little more. More and more these days you can say that Paper is now king. We see it everywhere; from contracts, permits, letters of intent, certifications…and the list goes on. The point here is that if you learn how to do your paperwork correctly it is pretty much as good as cash.
Most people I know start out in one of two ways, its either cash heavy and paperwork lite; or vice versa, cash lite paperwork heavy. Let’s dive a little deeper.
*Disclaimer – It is better to start period than to never start at all, I am making a suggestion as to a possible quicker less painful start. However it is far better to start and f*ck up, then to never take a shoot…
Cash Heavy – Paperwork Lite
This is how most people want to start out. A nice chunk of cash in the bank so that you can really make some moves. I mean you know the saying “it takes money to make money”, and a lot of times that may be true. The problem comes in when you don’t understand the value of money and or know your business enough to make these decisions, but that doesn’t stop people and it can end up being a disaster. It is easy to spend money, and that’s usually what happens. You put all your money into one deal and tie it up, then you spend all this time trying to make something of it. Seems a little backwards to me? Plus now all or most of your cash is on the street and you’re stuck. Even if you make it past the initial hurdles, you will still have to learn the paperwork side of your business…so learn it up front!
Cash Lite – Paperwork Heavy
This is how most people should start out. When I was first starting out on my journey to do my own “thing”, someone once told me; “In business you always have two assets, time and money. These usually work in a sliding scale mentality meaning you have more of one in proportion to the other, but they are both equally as strong if used correctly.”
Not only did I agree with that statement, it also made more sense to me, I almost felt that in my “gut”, it was the right way to proceed. That and the fact I had no money at the time! Some people like to call it due diligence, I like to call it knowing the paperwork… Use your time to learn everything you need to know, then leverage your money the best way possible! Some of the biggest deals by the biggest players have been done this way .
Example: Donald Trump sold the 33st rail yards in a deal where he didn’t even have the signed contract back to buy them yet. This is where the Jacob javits Center currently resides. Now that’s a sweet no money down deal!You can leave a response, or trackback from your own site.