Being a Buy-and-Hold real estate investor can be an incredible ride! If done right, wealth can be built, and transferred to children, and even grandchildren. In time, doors open up to recognize new deals. Acquiring them becomes easier. Getting resources to execute deals becomes more accessible, and the ability to grow, and scale, efficiently, over time, becomes second nature.
Developing the skill of being a successful Buy-and-Hold real estate investor, and passing this skill on to your future generations, can truly be of great value. This is why many Buy-and-Hold investors choose this form of investing - to provide protection, certainty, and security for you, and your family, when done right.
So, that being said - What are these “3 unpredictable pitfalls?” and how do you protect “yourself,” “your family,” and “your portfolio” from falling victim to them?
Pitfall 1: Short Term, or Long Term, injury, or Disability
Who can predict a serious car accident, a critical “slip and fall,” or broken ankle at the family picnic, playing volleyball right when you took the lead 7-6, after coming from behind (true story)?
Some things just can't be predicted, and happen at the most inconvenient time. When daily events like these things do happen, whether in some small way, or in a large way, these will affect your lives, and your business.
It has always been said to me, "what you can't predict, you plan for, and what you can't plan for, there's insurance."
Simple statement - but profound.
So let's take this home, shall we. Serious injuries happen. What if you're not available to run your operations 6 months, 8 months, a year, or longer? What kind of effect will that have on your business? Can it run as smoothly without you, as it does with you?
The answers to those questions above are revealing. If your answer to the above questions are anything but "yes, without a doubt," then, there are some serious pitfalls, and it will be addressed, and solved, by the end of this article.
Pitfall 2: Serious Life Altering Illness
I hate to bring the mood down, and I am only doing this because this information can protect your business. Throughout America today, there are many unpredictable illnesses. Illnesses that often don't give us any notice, and truly alter our lives.
If one of these serious illnesses hits us, current business plans often go “right out the window.” Life goals change. Once, we may have had the drive, and ability to focus with great hope. However, after the illness, the energy that we once had just may not be quite the same.
Unpredictable, yes. Unfortunate absolutely. So, what can be done to ensure that the “years,” “sweat,” “blood,” and “tears” don't go to waste? What can protect, and keep the wealth, you've worked so hard for intact, so it doesn't have to be broken up, or liquidated, to combat this new circumstance?
Serious illness, in its many forms, is the second pitfall.
Though it should be considered, it's not something to fear, or be anxious about. With a little bit of proactive planning, and the right tool, the damages of this obstacle can be completely removed from your path, and keep your well-being, and your assets, intact.
Pitfall 3: Unexpected Death
Have we ever gotten an unexpected phone call "so and so, just passed away?"
When this happens to us, sometimes we notice the situation, and can see it coming. Other times though, this news shocks us.
Unexpected death is exactly that - unexpected. This article is about unpredictable pitfalls that can happen, and how to protect yourself, your family, and your portfolio, against them.
A good, and disciplined, investor, both accounts for the "highs," and the "lows." They often have a plan to prevent “loss,” and if they are really skilled, they even have a plan to make a “profit” during the dips. These investors also take into consideration “life,” and “death.”
Since these principles apply to you too, as Buy-and-Hold real estate investors, are you prepared to “profit” during life, and “stabilize,” even in unexpected death?
I know that's a strange question, but the outcome of not being prepared for this, can have a deep impact on your family, and completely destroy the real estate investment portfolio that you've worked hard to build. If not properly, and proactively, accounted for, disaster can be sure to follow.
So, this article is titled “3 unpredictable pitfalls that can destroy a real estate Buy-and-Hold portfolio fast, and 1 simple solution.” I think it's time to talk about that solution.
Let's say for a moment, a serious injury happened to a man, and he needed surgery. He can't physically work for 9 months. But, instead of losing money, and not growing, a majority of his income is being supplemented on a monthly basis as he heals, and he is still able to run his business, as usual, without skipping a beat.
As a Buy-and-Hold real estate investor, would having an asset like this be beneficial, and have a positive impact on your business? Surely it would.
Now, for a moment, consider a man who is a real estate investor who is suddenly diagnosed with cancer that's not terminal. It will take him 3 years to fight this off, and recover. Because this man considered the possibility, he had a plan for something like this, and he received a tax-free lump sum of $500,000. This money helps him to recover, and run his operations while he is in a compromised state.
Would it relieve some pressure for you, if after receiving sudden news about a serious illness, you get a large lump sum of tax-free funds to ease your burden through the healing process? Of course, right!
Now for the last pitfall, unexpected death.
Now, we have heard it said "Tomorrow is not promised," and for many we come to know this phrase all too well.
I know it's also often said, "it's not going to happen to me."
Yet a common saying in America is "two things are certain in this life -” taxes,” and “death,” and there's no escaping them."
So, if there’s any truth in that quote above, as investors, wouldn't it be wise to prepare against these "certain" pitfalls?
With a proper assessment and valuation, you can be prepared for these pitfalls. Many have already benefited from putting together a plan that removes the effects of these pitfalls from their lives.
The One Solution to Prevent This
If you're unclear on what the solution is, it's life Insurance built for the needs of real estate investors.
Just like there's a big difference between Buy-and-Hold real estate investors who invest in residential properties, and those who invest in commercial properties; there's a huge difference between “life Insurance” that is built for consumers, and “life Insurance” that is designed for Buy-and-Hold real estate investors who have special needs. Income replacement, business operations, and tax, all have to be considered, and accounted, for when designing their policy.
To learn more about the right kind of life insurance policy designed for Buy-and-Hold real estate investors, watch a free webinar, and after you complete it, receive a free Property Life Insurance Valuation Assessment report (PLIVA Report - see sample here). This is designed to protect your business, and real estate portfolio, from these 3 unpredictable pitfalls.
Happy Investing!
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