COLUMN: Of risk and reward: You can't bunt a home run

Life is fuller and more rewarding for those who take risks to achieve their goals. Most all truly great achievements involve risk. This applies in the various fields of exploration, competitive sports, business, finance, even love and war. Real estate investing is no exception

In the course of my business, I meet a lot of people who are looking for more out of life. For many of them, it's a vacation rental home at the beach. The rewards are there to be had: pride of ownership, free personal use, rental income, tax advantages, and good potential for appreciation.

But there are risks, too. What if it doesn't rent well? What about storms? What about the unknown? Most bold, self-confident people go for it all — the risk and the reward. They buy. They timid talk themselves out of it. I feel sorry for them.

I am accustomed to taking risks, not only in real estate investing but in other facets of life. If I see something I want, I go for it. Sometimes I hit. Sometimes I miss. But at least I am in there swinging. I have learned to savor the success and to learn from the ones that don't work out. Along this line, I have some thoughts to share with you:

•Control the risk. You can exert control over certain activities such as selecting your own investments or managing your own business. But you have absolutely no control over the spin of a roulette wheel or the draw of the lottery. I take risks but I don't gamble. There's a big difference.

•Enjoy the risk. That's right — enjoy it. Risk is a challenge. It excites and sharpens the senses. Most people perform better under pressure. Some thrive on it. Who would play a golf course if it had no sand traps or water hazards? A world without challenge would be downright depressing.

•Go all out for your goal. Don't be distracted by obstacles and negative thoughts. Think about that golf course. You can't hit a hole-in-one if you think of nothing but staying out of the rough. You can't punt for a touchdown and you can't bunt a home run. Whether you expect to win or lose, you are probably right.

•Accept the setbacks. Not every venture will be successful, but that doesn't mean that it failed either. You fail only if you stop trying. Almost every success story is full of setbacks along the way. You learn from them. Setbacks build character and make you a stronger person.

•Consider the alternative. Trying to eliminate risks often creates other more subtle risks. If your money isn't working for you, it can be slowly lost to taxes, other incidentals and inflation. Ask yourself: “What's the worst that can happen?” To me, the worst thing is seeing your life slip by without risk and reward. That is sad.

We have all heard: “Nothing ventured, nothing gained”, “Better to have loved and lost ...” and those saddest of words, ”It might have been.” But I believe Kris Kristofferson put it best in the old country song, “I'd rather be sorry for something I've done, than for something that I didn't do.”

Jack Simpson is the broker/owner of Holiday Isle Properties, Inc.