By Shmuel Shayowitz
One of the most powerful tools in both real estate and personal finance is also one of the most overlooked: “projections.” Whether forecasting rental income, estimating renovation costs, or simply mapping out a household budget, projections help us move forward with clarity and confidence.
I was recently introduced to a real estate investor by his attorney, who was in a big jam. He purchased a multifamily property mid-construction; He bought it for all cash. He planned to finance the renovations but wasn’t able to. He overextended himself and scrambled to get the renovations completed, hoping he could then secure financing, but every lender rejected him. The building wasn’t totally finished, tenants weren’t yet in place, and the current numbers didn’t support that much of a loan.
I suggested a new approach. We created a detailed projection of what the property would look like once fully renovated and fully occupied. We included conservative estimates as well as realistic market expectations, then packaged everything into a clear and compelling presentation. That changed everything. The client was approved for the financing they needed, and the project moved forward.
This isn’t a novel approved, but the same methodology applies to personal finance. A budget is essentially a projection of income and expenses. Most people do not have a budget, and even fewer have forward-thinking plans. But the difference between people who move forward financially and those who remain stuck often comes down to projections. I’ve seen people with five, ten, even twenty thousand dollars available for investing — but they never actually invest. That money isn’t working for them. It’s just sitting there doing nothing because they didn’t take the time to project or envision what this money could do for them.
In finance, idle money is a missed opportunity. The sooner you take action, the more time you give your money to grow. Asset appreciation and compound interest are powerful forces, but they only work when you take that first step.
And then there’s another kind of projection … emotional. We often project fear, doubt, insecurity, and worst-case scenarios. But studies show that about ninety-seven percent of what we worry about never actually happens. That means most of our fears are just mental roadblocks, not real ones.
Instead of projecting fear, we should project possibility. Imagine realistic, favorable outcomes rooted in effort, experience, and potential – not apprehension. Don’t let old beliefs or past failures dictate how you see the future. We need to learn to project a future that is not only possible – but positive.
The future has a way of unfolding in line with what we prepare for – and what we believe is possible. Better projections lead to better outcomes in personal finance, real estate, and life itself. Whether you’re managing your money, planning an investment, or working toward a personal goal – the power of a well-thought-out projection can be the difference between staying stuck and moving forward. The right numbers, strategy, and mindset can change everything.
Would you rather know the next market crash date or know the next bull run opportunity? I’d love to hear your answer! Please let me know if you have a good “Would you rather” question, and we will highlight your submission.
Shmuel Shayowitz (NMLS#19871) is a highly regarded Real Estate & Finance Executive, Writer, Speaker, Coach, and Advisor. He is President and Chief Lending Officer of Approved Funding, a privately held national mortgage banker and direct lender who has personally facilitated over $2 billion in mortgage funding. Shmuel has over twenty years of industry experience, holding numerous licenses and accreditations, including certified mortgage underwriter, licensed real estate agent, residential review appraiser, and accredited investor, to name a few. Shmuel has successfully navigated through many changing markets and business landscapes, making his market insights and experience well-coveted within the real estate industry. He can be reached via email at [email protected].
