Are Your “Assets” Actually Draining You? 🚩
Let’s get real for a minute: You’ve probably got some assets you’re super proud of, right? Maybe it’s that rental property, that business you bought a few years back, or that stock you’ve been holding onto like a prized possession. But here’s the harsh truth—just because something was an asset doesn’t mean it still is. Sometimes, what starts off as a great investment turns into a cash-sucking liability if you’re not paying attention.
So today, I’m breaking down the hard truth about assets flipping into liabilities and how you can stop this from wrecking your wealth. Let’s dig in.
1. The Asset Trap: It Was Good... Until It Wasn’t
You know that feeling when you buy something, and at first, it’s great? The income’s rolling in, the value is going up, and you’re feeling like a boss. But over time, things start to shift. Suddenly, that rental property has unexpected repairs, or that “passive” business starts needing more of your time than you thought. What’s happening here?
This is what I call the Asset Trap. You get so emotionally attached to something that you stop seeing the signs that it’s turning on you. You’ve convinced yourself it’s still an asset because it used to be one. But if it’s costing you more time, money, or stress than it’s giving you, that’s a problem.
Pro Tip: Set a reminder on your calendar to review each investment quarterly. If something’s not performing as expected, don’t ignore it—dig in and figure out why.
2. Cash Flow: The Lifeblood of Any Asset
You’ve heard me say it before, and I’ll say it again—cash flow is king. If an asset isn’t putting money in your pocket every month, it’s not really an asset, is it?
Let’s take real estate, for example. You buy a property, and it’s cash-flowing nicely for a couple of years. But then, you hit a stretch where tenants stop paying, or you’ve got unexpected maintenance costs popping up. Now, instead of bringing in cash, it’s draining your bank account.
The Fix? Always look at the numbers. Review your cash flow statements like a hawk. If your “asset” is turning into a monthly drain, it’s time to rethink it. Can you sell it? Can you restructure the deal? Don’t be afraid to pivot.
3. Opportunity Cost: What’s This REALLY Costing You?
Every investment takes up space—not just in your portfolio, but in your mind and time. And here’s the kicker: Every minute you spend managing a poor-performing asset is time you’re not spending on something that could be making you a lot more money.
Ask yourself: Is this thing still worth it? If the answer is “I don’t know,” then it’s time to evaluate. Don’t fall into the sunk cost fallacy—just because you’ve already invested time and money into something doesn’t mean you should keep throwing more at it.
Pro Tip: Write down all your current investments and rate them on a scale of 1-10 based on how much they’re truly benefiting you. Be honest. If anything scores below a 7, it’s time to reassess.
4. The Skill Factor: Are You Equipped to Handle This?
Here’s a question I wish more people would ask themselves: Do I have the skills (or the right team) to make this investment thrive?
I see so many entrepreneurs who buy into businesses or projects just because they’re “hot” or because a buddy told them it’s a good idea. But when the initial excitement wears off, they realize they’re in way over their heads. If you don’t have the skills to manage it—or don’t want to learn—it’s better to cut your losses early.
Solution: Only invest in things where either you have the skill set to manage it, or you’ve got a solid team in place that can. If you’re constantly fighting fires and learning on the go, that asset isn’t really an asset—it’s a job.
5. Think About Your Exit Plan from Day One
This is a big one that most people ignore. When you buy an asset, you should already be thinking about how and when you’re going to exit. Is your goal to hold it for 5 years? 10 years? Or are you planning to flip it as soon as it hits a certain value?
Too often, people buy investments with no clear plan on how they’re going to get out. That’s how you end up stuck with a property that’s impossible to sell, or a business that’s taking more and more of your time with no end in sight.
Pro Tip: Every time you buy an asset, write down your exit strategy. Review it regularly and adjust if needed. That way, you’re not scrambling when things go south.
Final Thoughts: Don’t Be Lazy with Your Assets
Look, I get it. It’s easy to buy something, pat yourself on the back, and think, “Alright, job done.” But that’s not how you build real, lasting wealth. Great investments are nurtured, monitored, and adjusted over time.
Don’t let your “assets” turn into liabilities because you got lazy. Keep your eyes on the prize, review your portfolio regularly, and make adjustments before it’s too late.
If you’ve got an asset that’s bleeding you dry, don’t wait—take action now. It’s better to cut ties early than to let it sink you deeper. Remember: Smart investors don’t get emotionally attached. They’re always focused on what’s next and how to optimize their portfolio.
Make today count, Dealmaker. Don’t let your assets turn into anchors. 🏆
—Mark Evans DM