By Richard Dolan
I have been in real estate since 2006 and have come to respect one fact above all of the many in life: We don’t know what we don’t know.
As a real estate investor, even if you feel that you have all the real estate you need to fulfil your life, you have to recognize that truism—and the fact that we all remain financially vulnerable, and perhaps more so than most, given our complex financial lives.
In a heartbeat your world can change: a sudden phone call, knock at the door or newsflash will move you from complacency to the realization that you are naked and vulnerable. Perhaps you just get that sinking feeling in your gut that something tragic has happened. You don’t know what to think. You’re not sure how to feel or react. You don’t even know where to start. All you do know is, come hell or high water, you will get through it.
That courage and fortitude is one of the many benefits of being an accomplished real estate investor, but nothing and no one is ever truly invincible in the face of adversity, upset, or distress.
You see, adversity is the dominant force that holds the power to reshape our view of things, and our financial and personal well-being. The path to financial preparedness is riddled with adversity, and has become more and more formidable. Fortunes are made but quickly lost.
Financial preparedness is not merely having a grounding in financial knowledge and wealth dynamics. It is the state and quality of your financial affairs: Business and real estate interests organized, whole and complete. Critical information gathered and placed in one location, known to your business partner, life partner, and others for when the moment calls for it. Everyone knows where to look first to preserve and protect your life, and your business and financial affairs.
In our efforts to gain some financial elevation, we are bombarded by a hailstorm of adversities, big and small, throughout each day. Yet, how you, your advisors, and those most affected by your financial decisions, commitments, and circumstances respond to these adversities determines whether your personal and financial aspirations quickly erode or if you can somehow become invincible.
The financially prepared have a plan, and a route suited to the times that allows them to rest easily along their journey in life, with complete conviction and confidence that they have defined and protected what really matters most. Unlike others, they do not waste precious time, energy, or sleep by worrying over or catastrophizing adverse events.
As a result, they and their loved ones will always be okay. In their financial and life planning, they strive upward through a hierarchy of money matters, beginning with assessing their financial preparedness, clarifying needs and protecting priorities, and securing dreams and aspirations—in addition to aligning resources and people that will help them ultimately fulfill their financial intentions. This means:
- Their plan has purpose;
- Their purpose produces possibilities; and
- Their possibilities power preparedness.
"Between stimulus and response, there is a space. In that space lies our freedom and power to choose our response. In those choices lie our growth and our happiness."
As a real estate investor, I take note of the things that shape our vulnerabilities and rob us of invincibility. Summarized, they represent the 12 Challenging Events, which can be divided into three categories:
- Ineffability: indescribable, inexpressible, beyond words, beyond description, begging description; indefinable, unutterable, untold, unimaginable, overwhelming, breathtaking.
- Adversity: ill luck, bad luck, trouble, difficulty, hardship, distress, disaster, suffering, affliction, sorrow, misery, tribulation, woe, pain, trauma; mishap, misadventure, accident, upset, reverse, setback, crisis, catastrophe, tragedy, calamity, trial, cross, burden, blow, hard times, trials and tribulations.
- Misfortune: problem, difficulty, setback, trouble, adversity, stroke of bad luck, reversal of fortune, misadventure, mishap, blow, failure, accident, disaster, catastrophe, sorrow, misery, woe, trial, tribulation, tragedy.
As I have commented from the REIN stage, 'The quality of an outcome is equal to the quality of our "response-ability".'
The 12 Challenging Events that may generate emotional and physical pains for you and your family are outlined below.
Level 1: Disaster
Disaster, when it strikes, brings reason to abandon your home, grabbing just the essentials and leaving the rest behind.
Level 2: Disabling
Disabling events bring hurt and pains when we lose a part of ourselves or of the people we love.
Level 3: Economic
Economic adversity may bring challenge, concern, and a state of crisis—the type that engulfs you and your family.
- Market crash or crisis
- Sudden loss of income
- Forced retirement
Level 4: Devastation
Devastating adversities may bring irreversible pain and suffering.
And should there be an Armageddon or a zombie apocalypse, we have bigger problems than financial preparedness.
The Real Estate Investor’s Next Step
If I were you—and I have been where you are—I would consider taking the REINVEST Challenge. Visit REINVEST online and take the short quiz that will bring you awareness about the state and quality of your financial preparedness as a real estate investor. Once you’ve received your score, you may want to consider purchasing the REINVEST package, which provides you with three things:
- An assessment that will define your financial preparedness, financial intentionality, and adversity response profile (ARP);
- Your personal REINVEST binder, which will organize all your affairs—financial, legal, and otherwise—and be a beacon for your loved ones to act on your wishes; and
- Access to a REINVEST professional, who will guide you through a 30-minute completion call within 30 days of purchase. During this call, the content of your binder will be reviewed and any gaps identified with respect to the ordering of your affairs, to ensure those affairs are aligned with your financial well-being and security.
For more information, please visit www.rein-vest.com.
Richard Dolan is the President of the Real Estate Investment Network Ltd. and is also a successful entrepreneur and author. Richard's clientele includes the 2012 and 2013 NBA World Champions, the Miami Heat; the world's largest bank, HSBC; National Bank of canada; Royal Bank of Canada; Sotheby's International Realty Canada; and the world's fastest and most exclusive supercar manufacturer, Pagani Automobili, to name a few.