Investing, a look ahead

Yesterday, I spent the evening with a friend discussing real estate. His main question was how borrowing and the leverage it produces within real estate investment is the right way to go. We talked about owning and mortgaging as the two primary options for investing and the pros and cons involved with each strategy. I have used both and have not operated at a large enough volume in rental properties to know for certain which is the better strategy in the long run. I do know that if an investor is heavily mortgaged (borrowing money from the bank and making mortgage payments on the rental property) the time the property sits vacant is a hardship on the investor since he is still responsible to make the mortgage payments even though no rent is coming it.

But the investor that owns his properties outright has tied up a lot of money in the property. Money which will not be available for future investing. If you have plenty of cash on hand and a good supply of cash coming in, owning properties outright is a pretty sure thing. If you have just enough cash to get by, borrowing on the equity of the property is a prudent option. He is not a fan of owing anyone anything, but he wanted to know at least what I could tell him from my point of view. We ended up talking for several hours. Mama, who did not go with me, ended up texting his wife to ask if I was being held hostage. It really helped me to talk it through.

This weekend we have a lot to do but nothing that is a huge task. Just the farm chores that come up on a recurring basis. I will be on my own for most of those chores since Mama is still feeling poorly. For the most part, I am on my own for anything that falls outside of the house and the yards at the house. I do not mind. It gives me time to work, to think and to pray. I am working on clearing the fence lines along the road and will move to the back of the property when I get those done. Clearing the fences will help me make the repairs needed to the fences. Right now, I am hard-pressed to see where the breaches are that allowed our calf onto the neighbor’s property. Once identified, I can make the upgrades and repairs needed, but it is a lot of work.

I cut fifteen little trees out of a portion of fence at the far end of our property in just a small space. Once the heavy stuff is cut and pulled from the fence, I can go back and trim the weeds and thorns from the fence area where the big stuff was removed. It is a several step process to get the fence exposed. Largely, the fence is a barbed wire fence with some woven wore fencing attached to the lower portion of the fence. I assume that helped keep the hogs off the property I the beginning, but the wiring of both types is in less than fair condition. Much will need to be replaced. As I clear it for inspection, I will be able to see just how much new will be required. If I stay with the project, I might finish by the end of summer. That is a lofty goal. I can only work on the fence for a couple hours at a time before the heat wears me down.

We have a group of twenty leaving for Nazlini, AZ to help with a Vacation Bible School at the Navajo reservation there. Our church does this every year. I have thought about going several times but have not been able to follow through. One day I will. Our church members will put on the VBS Sunday through Thursday evening while having games and activities, crafts and Bible lessons through the day at the church on the reservation. They always have a great time. They always come home worn out but excited about what the Lord did during the week. Some of the young people going have made the trip for several years running and have developed friendships with the children on the reservation. For them, it is like a family reunion. Two of the return volunteers are children of the man I was visiting with yesterday evening.

I hope to take my little craft onto the lake this evening to tomorrow evening to check out the changes I made. That will determine if I keep the craft or sell it and outfit the Jon boat I have with some sort of wheeled transport system. Hopefully, the winds will die down to the point that I can make the test run. Mama and I are enjoying the fish I am able to catch from the lakes. We ate some last night.

Fish, is seems is the only beneficial “meat” for my blood type. That works for me.