Think Big and Plan Big
I came across an article written by Robert Kiyosaki "Thinking Big is the Best Plan" in Yahoo Finance. In the article, he shared his experience about missing an opportunity because he did not think big.
Thirty years ago, he inquired about a building for sale with 6 tenants in place. He found the $2 Million dollar asking price too expensive. He was planning to use the rent to pay off the building and keep the residual income. He figured that the total rent from 6 small tenants is not enough to pay off the $2 Million dollar building.
Later, he learned that someone who had a bigger plan bought it at full price. The buyer gave a $50,000 down payment with 180 days to come up with the balance. During those 180 days, he took action with his big plan by gathering investors, a builder, and a tenant; a major hotel chain. At the end of the 180-day period, his investors paid the $2 Million dollars in cash.
Now, there is a big hotel in the former site of the $2 Million dollar old building. Kiyosaki estimates the value to be around $150 Million dollars.
If you’re going to compare the $2 Million dollar price tag against the potential value of the building, it is not that expensive. Thus, the next time you see an investment opportunity, think and plan big. Don’t make a decision based only on the price. Look at its potential value, development in the area and think outside the box on how you can maximize the use of the property.
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POSTED IN: Insights and Commentaries, Road to Profits
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