Rule #3 - If You Can't Cut A Check You Shouldn't Be Doing It

This rule is a bit confusing when said so I need to clarify it since it is one of the most important.

I do not use my own money to rehab homes. I do not use my own money to buy homes. My money stays in my pocket to buy things for me. Not houses.

Use other peoples resources. Banks, loan sharks, credit cards, home equity lines and private lenders are many ways to do this. In the end, whoever you pay the least amount of money to or fits your scenario best is who you should use.

Do NOT use your own money. I don't even recommend using your friend's or family's money. Unless they understand your business, and it is likely they don't, it is inevitable that they will always be wondering what you are doing with the cash.

The second part of the statement "...You Shouldn't Be Doing It" means if I catch you spending your time using a hammer, paint brush, drywall, tile... ANYTHING that can be done by a paid employee... is grounds for a stiff smack across the face.

Say this to yourself... you are NOT a drywaller. You are NOT a painter. You are NOT a carpenter. These are jobs that you pay people to do while you go find another job for them to work on.

"But I'll save money if I do it myself."

SMACK!

No... you spend your TIME saving hundreds when you should be out looking for deals to make you THOUSANDS. Spend the money and do it right the first time. YOU go out and look for another deal.

Those ridiculous shows on TV show people doing all sorts of work when they should be looking for another property. Working on the house will at the very least wear you out. At the worst, it will burn you out.

So really Rule 3 should be called "Contractors Work On Houses, I Do Not" or "Subs Make Hundreds, I Make Thousands"...

As you can see, I need a new way to state Rule #3. What are your thoughts? What should I call it? Leave your comments below!