Category: Jewels of Wisdom Newsletter

My Greatest Loss

One of my first memories in life was my greatest loss. This happened somewhere around 2 or 3 years old. My favorite book at that age was The Little Engine that Could. I must have brought that book everywhere with me-so it came to pre-school on that fateful day.

Mom picked me up but placed the book on roof of the car-then drove off. The book disappeared and I was distraught. We looked around everywhere back then, but couldn’t find a replacement copy. I don’t remember the details of the event or the time period, but I still feel the sense of great loss. That feeling of loss exceeds any of the monetary losses I’ve experienced (some of which exceed 6 figures).

Alas! A Lifelong Win!

“I think I can-I think I can-I think I can-I think I can-I think I can-I think I can-I think I can-I think I can-I think I can.” This is all I remembered from The Little Engine that Could. What a fantastically strong belief system to install in the mind of a 3 year old! Most of my life, this mantra has applied: “I think I can!”

Faced with any challenge, “I think I can!” Considering executing that first fix & flip, “I think I can!” Build a $15M development, “I think I can!” Hoping to win that next deal, “I think I can!” Once any challenge has been met, this becomes, “I know I can, because I’ve done it before.”

(Aside, as I researched an wrote this, I am now realizing my mom might has simply gotten rid of the book to avoid my likely endless requests for her to read it to me… As an adult, I’d completely understand this now if that was the case. You can see why if you read it yourself.)

I Think I Can – MAKE A DEAL!!

Here’s an example of how this created the life I live now. I am a Deal Maker. Any deal begins with: “I think I can win this deal,” and therefore I make an offer. If you don’t believe you have a shot at winning the deal, you’ll never make the offer.

Further down the track on Deal Making is your follow up. Again, “I think I can win this deal,” and therefore, I follow up. If you don’t believe you have a shot at winning the deal, you’ll never follow up. In Diamond Equity’s experience, about 45% of deals occur 30 – 1,819 days after the offer is made. That is a long, strategic follow up cycle requiring a strong belief system to stay the course.

Next time you consider a deal, remember, “I think I CAN win this deal” and MAKE THE OFFER! And when the offer isn’t immediately accepted (which is 99% of the deals that get done..), remember to follow up diligently and earn that deal!

How to Retire with $1 Million & NEVER Spend the Principle

A few months back I wrote an article on retiring with $3.2 Million. That article made some assumptions on high risk, high reward investments. There is a place for that all-in strategy mapped out in that article for some investors-probably earlier in their investing career. If you’re on the other side of your investing career, perhaps within 5 years of retiring, or already retired, the types of deals mentioned in that article (distributions don’t begin for 2-3 years) may not provide for your goals.

How I Envision a Perfect Retirement – from a Financial Perspective

The goal in a perfect retirement is a steady income which covers all expenses and NEVER touching the principle. For me, there seems some security in reaching retirement under these minimum assumptions:

1. Paid Off Housing
2. $80,000 income generated from $1 Million invested at 8% per annum receiving monthly or quarterly distributions at exactly that amount, or more.

I’ve chosen $1 million as the example here, but depending on earning power, current financial position and lifestyle, this number can be cut in half, doubled, etc and the plan still works. $80,000 per year plus social security should cover the property taxes on that Paid Off Housing and allow for all living expenses plus some travel, leisure, birthday gifts to grandkids, etc

How do You Receive 8% Returns without Losing Principle

Many reading this article know how to obtain 10% returns & even a few points by making short term Private Mortgage Investments to fund Diamond Equity’s real estate deals. Maybe you even have a few more fix & flip investors to whom you loan money. If you’ve made loans like this you know the challenge is keeping that money working for 12 months straight.

For example, you loan $200K on a deal this month, it pays off a few months later at $210K. However, the next available deal is only $140K. So $70K sits around waiting for a $70K deal which comes 18 months later.  Right now, many investors I talk with have a certain amount available at any given time and they’d love to be able to place that money and simply keep receiving returns. Perhaps an even 8% return is earned when you do the final calculations over the course of a year.

The Reason I’m Writing this Article

I have two friends who run debt funds which pay 8% preferred interest monthly. Both of their debt funds exceed $35 million in size. They borrow at 8% and then reinvest in large hard money loans that pay 10-15% depending on the risk. They shoulder the burden of losses and also the burden of paying the 8% even when the money is idle. Their investors love it because of the regular distributions and the lack of “down time” while their money sits idle. They live on that 8% return.

Finding an 8% even paying, passive return anywhere else in the market is very rare.

I am considering creating a fund of this nature myself to streamline the returns for our investors. I’ve written this article as a public method of thinking through the idea. Perhaps you have some feedback on whether something like this would be attractive?

No promises on whether an “8% Diamond Equity Debt Fund” will be launched, but in the interim, I am willing to pay 10% & 2 points on our short term loans. You can get detailed info on how those loans work and receiving the next Private Mortgage Investment Opportunity at www.FundRehabDeals.com

What’s the Purpose of Real Estate Investing?

The obvious answer, and the purpose most people begin Real Estate Investing is to make money. A better place to begin is asking, “What is money?” I believe money is the lifeblood of the human super-organism. Money is the channel of reward, like Dopamine, which propels humanity forward. An incentive program for continuing human evolution. Without money, humankind would not have the ability to cooperate at a global level, or even a local level.

When I got into real estate investing it took me 6 months to close my first deal. I was pretty much broke at the time, 26 years old, and living with my mom. My 5 year old daughter was in town, and with no one to babysit,  I had to bring her along to the appointment to meet the seller. It was a high crime area, but I didn’t really know that at the time. I signed a contract for $5,500 & found a buyer willing to pay $11,500. That $6,000 profit changed my life. It was about the money back then, until I realized the wide ranging impact of investing with purpose.

Our Purpose is Evolution

Back then, the sole purpose of the business was to make money. Now, with a few thousand deals under my belt, the purpose of Real Estate Investing-actually all of my investing activity, has become Evolution. I’m looking to further impact human evolution with every deal I work on. Even if that means simply improving one house on one street in one neighborhood. I’m sure the neighbors on either side are happy once we are done flipping a house.

I know that many business owners & their customers are happy at our Desert Oaks Plaza shopping center, now that the vacancy is cured and the improvements have been made. The center has been transformed by our investment in both time & money. That deal is available for sale, if you’re interested in a well located, stabilized Las Vegas shopping center with rapidly rising rental rates.

Our Purpose is Making Dreams Come True

When you flip a house, you are evolving that property into an even better state than you found it. The buyer likely has a dream of homeownership-buying a newly renovated house. They lose sleep during the contract period-maybe like you, the flipper-hoping & praying that the deal closes. Once it closes, you have fulfilled that buyers dream of homeownership & made that neighborhood even better. Oh, and you’ve made a few bucks doing so.

Transform Communities One Property at a Time

This is Diamond Equity’s #1 Operating Principle: “Transform Communities One Property at a Time”. Every deal you successfully complete serves to continue the ongoing transformation of our existence. While an investor could, in theory, just buy a property and sit on it-in decrepit condition, this is NOT how we choose to invest. We believe in the impact our efforts & money can create. This is good.

The Real Estate Super Organism’s Purpose

Every person who applies effort in our field of real estate contributes to the evolution. Without the Broker, the deal may never begin. Without the lender, there is no money to buy, and certainly much lower prices across the board if they didn’t exist. Without the contractor-even the laborer-the building never goes vertical. And of course without the Principle-those of us who spot the deal, make the offer, & take the risk, none of this would happen.

Plus, God said So…

Genesis 1:28, “And God blessed them, and God said unto them, Be fruitful, and multiply, and replenish the earth, and subdue it..”  Our purpose as real estate investors is to be fruitful, and multiply, and replenish the earth.

Have You Ever Door Knocked for Deals?

My first job in life was delivering the Town Talk newspaper. It was a free newspaper you’d deliver to every house and then go door to door to collect the fee monthly. I’d get half of that collection, plus $6 per week as my total compensation.

My first business was mowing lawns. My best friend & business partner, Paul Haggarty, usually preferred that I was the one who’d go knock on doors to ask for business. He probably remembers it exactly the opposite, if I had to bet! We made good money that summer which covered the cost of the equipment, our lifestyle, & even a few BMX bikes. We were all about that in 1992.

Notice how both of those early successes included knocking on doors for business? Many of my mentors have had experience door knocking in their early careers. Chris, a friend of mine, recently bought Easter wreaths from an online wholesaler, developed a script, and then took both of his young daughters door to door to sell them at $10 each. His goal is to develop sales skills early in life. They made enough money to buy an above ground pool-which they love & cherish as fruits of their own labor.

Do You Have Door Knocking Experience?

I’m hoping someone reading this has experience as either a successful door to door salesperson OR a leader who has developed a door knocking team. I’m talking a lot more professional than the experience I mentioned above.

I’m hoping to form a partnership with someone who can build a team of door knock reps to knock on the doors of the owners of properties which we are specifically interested in buying & set appointments for our Acquisition Manager to close the deal. If this is you, please reply back and let’s talk soon.

If you happen to live in the Atlanta, Chicago, or Philadelphia region and would like to be a door to door sales rep to book appointments for us, please reply back with a resume and a cover letter explaining the area you’d be willing to work. We pay per qualified appointment, commission only.

Private Lending -vs- Equity Investments

I’ll define Equity Investments here as investing in a partnership. This might include going 50/50 on a fix & flip or investing passively in my Self Storage Development in Lawrenceville, GA. Private lending is when you lend money in the form of fixed debt-usually using a Note & Mortgage. I personally allocate about 70% to Equity Investments and 30% into Debt Investments as a Private Lender.

These two investments come with very different Risks, Rewards, & Tax Implications. I’m not giving tax or investment advice here-just sharing from my own experience. Please note-the structure of Debt & Equity investments can be very nuanced and anyone considering any investments should seek proper legal council before doing so.

Private Lending / Debt Risk:

• Secured by the Property: If the Borrower cannot complete the project and pay you back, you could become the owner of the property you’re lending on. If the loan is well below the actual value of the property, this might be a good thing.
• Borrower Risk: Does the operator with whom you’re investing have more cash available to cover your interest & guarantee your principal-even if they lose money on the deal you’re lending on?
• Construction Risk: The more construction being completed on a project, the greater the risk of cost overruns & delays. Back to the Borrower risk-do they have enough cash reserves to cover unforeseen issues like this? I personally never go back to my lender for cost overruns. It is always paid out of pocket.
• Market Risk: If the market for the property you’re lending on declines, will the Borrower have enough cash to return your principal?  And Interest?

Private Lending / Debt Reward:

• Defined Reward: I pay my lenders 2 points & 10% interest, no matter what. We lost $150,000 on a single deal and our lender made about $80,000. His reward was defined & his selection of Borrower (Diamond Equity) was ideal because we had plenty of cash to cover that shortfall.
• Principle Protection: When I borrow money from my Private Lenders, I am agreeing to pay their entire principle & interest back, no matter what. I’m contractually obligated to do so-which is the defined principle protection, in writing, which are expected on Debt Investments

Private Lending / Debt Tax Structure:

• Short Term Capital Gains: Debt is normally taxed as short term capital gains, or ordinary income

Equity Investment Risk:

• Principle Risk: In Equity Investments, or Limited Partnerships, your principle is NOT guaranteed to be returned. No matter how much cash the operator may have outside of the deal you’re investing in, they are not agreeing, or obligated to pay back the full amount you invest. If the deal fails, you may lose some, or all of your investment.

Equity Investment Reward:

• Contingent Upon the Outcome of the Deal: If the deal succeeds, Equity Investors participate in that upside. If the deal breaks even, Equity Investors receive their money back, with no interest. If the deal fails, Equity Investors lose some, or all of their money. That last outcome isn’t really an Equity Investment Reward, I guess…

Equity Investment Tax Structure:

• Long Term Capital Gains: Right now, the US Tax rate for Long Term Capital Gains is 20% for those in the highest tax bracket. Short Term Capital gains are 37%.
• Depreciation: Many Equity Investments come with tax losses, such as depreciation, which help minimize tax bills. You can listen to this podcast for more detail on this tax benefit.

The Right Time & Place for Each type

Equity Investments that I currently own were made for these reasons: first, the tax efficiency of the gain. I’m making good money now and have heavy taxes to pay. Making Equity Investments that will distribute profits later as Long Term Capital Gains help me maximize the money I’m left with after taxes. Second-the expected greater return. I’m aiming for 20%+ returns in all of my partnerships.

As mentioned, I’m about 70% in Equity Investments right now. This is a lot of risk. Since I’m not yet near retirement age, this risk is acceptable to me right now in search of greater reward-and a more efficient tax structure.

As time goes on, I’m intentionally moving more toward Debt Investments. Defined risk & defined reward are more desirable long term-as you are better insulated from market swings. Of course this assumes you’re lending to a well capitalized, high quality Deal Maker. If you’d like to view my projects which are available to lend, please sign up at www.FundRehabDeals.com

How to Make $500,000 by Thanksgiving

It’s much easier to “Make” money than it is to earn it. In our business we make money by making deals. Earning money to me is more like being employed and paid by the hour. Very limiting because you only have 168 hours in a week, maybe half of those would be available for work. I always preferred sales & negotiation with commission & profit available with no cap – Like real estate brokerage or house flipping – You can “make” money quickly instead of earning it by the hour.

I chose Thanksgiving to highlight the current 6 month window of opportunity in which we now live- The Spring Market!!. Now through mid October is when 80% of 2025’s deal flow will be made. By Thanksgiving, most of that will have gone to closing. Hence, setting a goal now to make $500,000 by Thanksgiving. Here is my framework for creating this result:

1. Belief System – If you don’t believe you can make $500,000 by Thanksgiving, I can assure you: “You’re right”.  If you DO believe you can make $500,000, I can tell you it’s possible. When I first set my sights on goals of this size, I had to believe in them first-for quite a few years actually-before making it happen in real life. Some reading say to themselves, “I’ve done this & more. Thanksgiving-no problem, maybe even 4th of July.”

My mentor, Dan Kennedy, is known as a Marketing Guru. However, much of his work is centered on belief systems. Like Tony Robbins teaches. He taught me how to change my beliefs about what’s possible by reading biographies of successful entrepreneurs. The Founders Podcast is a shortcut to this-giving you a summary of many, many, more biographies than any of us could possibly read.

2. Knowledge – Knowledge about HOW to actually make $500K is necessary. If you’re aligned with business partners who know how to do this, you found a shortcut. If you have never done this before, or come close, you might have a longer road than 2025 to make this happen. Hitting the $500K mark in a single year took my just under 10 years of trial & error to figure out-not including my career in car sales which certainly helped me learn how to close deals.
3. Communication Skills – Income in our business is directly tied to your communication skills. How you conduct appointments & present offers. The wording in your emails, text, and advertisements. The description in your listing. How you talk on the phone – the questions you ask – your ability to LISTEN. All these and more are intentionally developed as you increase your ability to make deals.
4. DO THE WORK – Extraordinary Results ($500K this year is not ordinary) require extraordinary effort. In our business, that means working the phones and negotiating deals. These are the money producing activities. Now, since it’s the Spring Market, I’m asking my team weekly to level up more now than ever. I’m asking myself the same thing.

The 2025 Spring & Summer real estate market is still a once in a lifetime opportunity, and the market is not guaranteed to be as favorable as it is right now.

 

How to Build a Pipeline of Off Market Deals with $0 Marketing Expenses

I had lunch with a long time friend & business partner this week. We discussed his strategy for doing 40-50 fix & flips per year without losing a ton of money on marketing. This 3 step strategy assumes you have strength in funding deals & renovation resources. First, find & build relationships with wholesalers & agents who find deals. Then, methodically strengthen those relationships-sometimes this is hard, because it can cost more money. Finally maintain contact as time goes on.

I shared this strategy with my buddy Evan, from the Milwaukee, WI area. He more than doubled the number of projects he was finding & flipping without a penny in marketing. This works:

1. Build Relationships – New or low experience wholesalers are the best place to start. Many don’t have much money or experience when they join the real estate industry, so they get ignored-until they start finding deals. Invite them for lunch, ask them to call you with deals, and offer to provide them pricing guidance (what you’d offer) if they have a deal where they’re not sure the value. Keep any information they provide in strict confidence-or you’ll ruin the relationship forever.

As time goes on, you’ll notice 9/10 of these folks either quit the business OR grow from wholesaler to landlord & flipper themselves. It only takes 3-4 of the remaining 1/10 to feed your real estate business more off market deals than you can handle. Here’s how to keep them happy:

2. Strengthen Relationships – Below are 5 tips to keeping a wholesaler loyal. When you do these things below, you’ll get favorable treatment. That might mean steering a deal to you even when you’re NOT the highest offer OR perhaps being the only person in the world to know about the deal-and buying with ZERO competition.
   • Decide Quickly – If the deal is not for you, pass quickly. Nothing is worse than being strung along by a buyer who knew they had no interest, but instead said, “I’ll look into this later when I’m at the office” or something similar. On the other hand, if you say you’re interested, view it as quickly as they can provide access and present your offer immediately-at the showing if possible, but same day every time. It shows confidence in your ability to ACTUALLY CLOSE the deal, if awarded. I still judge buyers on their speed to offer.
   • Pay More if Possible – When you have a reputation for paying the highest price, you will absolutely get favorable treatment. Be careful, if you’re always negotiating hard, your agents/wholesalers will find someone more generous as their #1 buyer.
   • ALWAYS Close as Agreed – Going under contract, even with Due Diligence, and then NOT closing at the original price you offer earns you a black mark in the eyes of your deal source. The best method is to make the offer at the price you KNOW you’ll close-and follow through on that. If you earn a place on the blacklist of an agent/wholesaler, it will be very difficult to regain favor.
   • Never Renegotiate – In most real estate negotiations, the inspection period comes with a renegotiation. In the wholesaler & investor agent world, this behavior will deteriorate your reputation as a go-to buyer. Even if it’s something big-roof, HVAC, electrical-if you can still profit and eat the expense, you will gain future deals with that deal source.

Maintain Relationships – Many agents/wholesalers only come across a few deals per year. They aren’t super professional-yet this is to your advantage. Their lack of professional business skills, while irritating to you, actually creates the opportunity for YOU to be their go-to buyer. These are the type you’ll have to call every month or so to check in-otherwise they’ll simply forget you exist. Perhaps a lunch meeting a few times per year. Make them feel special. Not “buy them roses” special, but some time & attention. Maybe ask them their goals in the business, make a book recommendation, etc. And of course, ALWAYS ask if they are working on any deals where you might be able to add value.

Flipping Houses IS the Best Business Model in 2025

Existing-home sales have decreased by 4.9% in January, marking a notable shift in the market. Current mortgage rates still remain above 7%. On top of that, inventory levels have risen by 16.8% to approximately 829,376 active listings. Sounds bad, but it is not even close to what has been normal for my entire career spanning more than 18 years. See the Fed Chart below for historical inventory levels.

Flipping Houses has NEVER been Better 

Flipping houses from 2006-March 2020 was a real challenge. I remember wondering if anyone would buy each renovated house I was building. It felt like a miracle when we got the offer-and yet another if it appraised & closed. Since 2020, even the past 12 months, the majority of houses we’ve renovated have sold for higher prices than we thought when we bought the deal. And the sales have mostly been in 14 days or less. What a great time to be alive & flipping houses!

1. Houses are Liquid. They sell or rent extremely fast-usually 60 days or less for a sale, 30 days or less to rent. Assuming you’re priced appropriately. Contrast this with my commercial properties. Shopping center units & industrial buildings often take 12-24 months or more to rent. My recent apartment building sales took 12-14 months from the For Sale sign to the closing. I love 1-4 unit residential properties for their lightning fast sale cycle.
2. Renovated Houses are a Premium Product. A well designed & tightly executed renovated house is a special product to the home buyer seeking their dream home. Whether a starter home or their forever home, when it’s renovated, it commands the highest value. They aren’t comparison shopping-their fulfilling their dream. It’s like a Lexus buyer-they buy for the experience of ownership, NOT necessarily to get a good/great deal.
3. Inventory is Extremely Low. The wind is still at our back-there are still VERY LIMITED options for home buyers.  Even less so the buyer seeking a Renovated Home.
4. Now is the Time to “Time” the Market. Home prices will peak between March 15-June 15, 2025. In many markets, these numbers will be the absolute highest prices ever paid for Renovated Homes sold in their respective markets. That said, there are a small number of micro-markets which peaked in 2022 and have cooled since then.

How to Play the Market

If you don’t already have fix & flip deals in process, right now is the time to find one, or several, assuming you have capital and contractor resources to execute quickly. Your goal is to hit the market by June 1 to hit the peak selling/peak pricing season.

Submit quick closing offers with large earnest money deposits. Most “standard” transactions close in 30-45 days. When I want to win a deal and I have contractors ready to go, I’ll close my deals in 7-14 days. Why wait??

My earnest money deposits are almost always 10% on deals under $250K. Once I make an offer, I’m planning to close no matter what, so the large EMD is not a risk to me. The certainty of closing & my quick timeline is the reason my offers win so often.

Of course if a seller needed more time for some reason, I might wait around. Better to book the deal into my schedule and find another for the near term More deals=more opportunity to get lucky in the Spring Market. Although it doesn’t happen as often as 2022, we experience the “multiple offer situation” most often every year between March 1-June 30. It’s been that way since 2006.

What’s it Feel Like to Win?

Two weeks ago I had the idea for this week’s newsletter: Winning. It struck me right as the Philadelphia Eagles won the NFC Championship. Lest I jinx our team (I grew up right outside of Philly), I held off on writing this until now-a week after the win. This year’s Philadelphia Eagles know what it feels like to Win. In a blowout, I might add.

For me, winning feels like I’m living life now in a bonus season. I struggled with addiction through my early adulthood-only quitting at age 32, on Jan 21, 2012. I recently crossed 13 years sober. That’s a WIN!!

“Pop Champagne” Could be Deadly.

There is danger in winning. You go one of two directions after a win. You pop champagne and celebrate-which is often what we do the first time we experience a big win. OR, you humbly get right back to the grind. You engage in those same habits you formed which created the win. In sports, that looks like 5:00 am gym sessions followed immediately by practice. Think Kobe Bryant. Doing the latter-getting back to the grind- is how you set yourself up for that next win. Mamba Mentality

In 2007 I was just under 3 years sober and had been in real estate 2 years. Late that year I had 4 large closings (they were large closings to me at the time-a ton of inflation has occurred since then) and saw 6 figures in my bank account for the first time in my life. I mentally popped champagne, that money went to my head, and a short while later I relapsed into addition. It was 5 full years of misery before I found God and regained my sobriety, sanity, & sustained success in the real estate industry. Grateful to be alive. Bonus Season!!

Within the last few years, our company closed our single largest deal, in terms of profit. I’ve intentionally worked to keep an even keel now-whether a win or a loss-handle either smooth and calmly. When we closed that deal I was glad & grateful, but that excitement of the big win I felt back in 2007-that “pop champagne” feeling was non-existent. That’s a healthy place to be. Neither myself or my partners skipped a beat after that closing. We immediately maintained the habits that created the opportunity. Mamba Mentality.

What is the Most Valuable Habit that Creates the WIN in Real Estate Investing?
Simple. Make offers. That habit-making offers-took me YEARS to develop at a sustainable level. It is very simple, but very easy to get stuck procrastinating and analyzing and checking the comps again and talking to contractors and interviewing tenants and on and on and on.

Get to MAKING YOUR OFFER as quickly and often as you can!! Closing Many Deals requires making at least 10 times as many offers. I mean, we want to close GOOD DEALS, right?? Making offers is how you win those good deals.

When you consistently make offers you experience that rewarding feeling of WINNING-first when your offer gets accepted and then once again later when you exit or refinance that deal and collect that check! Ah, but beware of “Pop Champagne” mentality and get right back to making more offers to setup that next WIN!! Mamba Mentality

3 Lessons Learned at the Commercial Academy Mastermind

1. Go Class A – So Henry, Aaron, Dakota, (partners of mine) & I went out to lunch with a few of my friends. One guy has $180M in retail, another has $1.2B in multi family & another earned $37M in income last year. There were about 18 of us in total. Henry quietly paid the entire check. Class A act here. The lesson here is that it was a strategic move. Once everyone realized what happened, they thanked Henry and had a short conversation. Great investment into building a relationship & Great first impression
2. Bigger is NOT Always Better – One of my friends has a very large, highly vacant property that is taking a TON of work to stabilize. This is a heavy lift-and he does expect heavy profit. But there is a personal cost in energy, time, & sleepless nights that come along with a lift like this. May or may not be worth it-but I learned to include this in my analysis on bigger, heavy lift deals.
3. Choose Wisely-Time & Money are Limited. Along the line of the heavy lift, I further realize that time & money are limited. More so time. There are only so many deals you can do-so choose wisely. Not all deals deserve to get done. The profit must align (meaning there needs to be ENOUGH profit) with the risk involved. I now include the risk of the time wasted on a project in addition to the money risk involved. Can always make more money, but cannot make time.