Wider Motivations for Investing?

Question

I have been tumbling this question over in my head for a while... what drives people to begin property investing? Obviously there is the obvious "increased wealth" ... but what does that mean for people? And does anything else come into the equation? Why property? Why now? Do you have any altruistic motives? If you own rental properties, why did you choose this type of investment vehicle? What do you hope to achieve through your property investment?

I am interested to hear your thoughts...

Cate

I am interested to hear your thoughts...

Cate

Account Closed · Answer

for me it was about freedom..i have worked some crappy jobs...about this time last year, i interviewed for, and was offered a 6 figure job in pharmaceutical sales...i was selling advertising at the time and hated it...i deciced at that point to try real estate full time and be free....there will always be a crappy job you can go back to and make plenty of money, but only a few opportunities like what we have right now...

Mariah Jeffery · Answer

A lot of people invest in RE because they hate their jobs and want to be their own boss, but I love my job. I just hate the taxes I pay, which end up taking over 1/3 of my paycheck between federal, state, and FICA taxes. Being W2 slaves, my husband and I don't have many opportunities for tax deductions outside of RE. On the other hand, too many so called investors shoot themselves in the foot by buying something that actually loses money so they can save on taxes. The key is to buy something with positive cash flow that you can show to be a loss on your taxes due to depreciation and phantom losses.

Bryan Hancock · Answer

I think a lot of people get started after reading guru books.  Real estate is something within the grasp of Average Joe because you can use leverage to purchase a great deal of the price of expensive assets.

Unfortunately, most people have no idea what they are doing when they first get started and they end up buying poor investments with severely negative cash flow that masquerades as positive cash flow using the "anti rule."

Real estate is also somewhat a forced savings play that is fairly easy to start when you compare it with other businesses that demand large capital outlays to get them running.

Jimmy H. · Answer

I think it is different for each individual.

Consistently I think you will find "wealth" at the top of most people's lists.

For me it is also the challenge. It is engaging, risky, and challenges you on a variety of levels and think that purpose and drive and sense of accomplishment is an addicting feeling.

Why property and not another venture, well, small business owners will give you a different answer than day traders, who will likely give you a different reasnoning than those on BP who have chosen to pursue RE.

Maybe we all just grew up playing Monopoly.

Account Closed · Answer

For me RE investing has many aspects that make enticing.

Freedom that is given as cash flow is built.

Better control of my investments.

Something that I can see and touch.

I also enjoy taking a property that looks disgusting and turning it into something that is much more appealing.

But, mostly I like RE because it has built a nice nest egg that I plan to grow.

Monica Blair · Answer

Funny you should mention depreciation Mariah. I am a new investor myself. I have wanted to learn investment strategies that were solid and made since. I know many people that call themselves investors but only know a little and cant tell you what they are doing. 
i have been spending most of 2010 learning the strategies to investing and in that realized that depreciation is something that I am seeking in the long term. 
I have realized just how much I luv this stuff now that Im in the game. It is a challenge. But calculated. This world of real estate is another world. 
I am also pursuing my freedom. I really dont like the dictatorship of working for someone. I dont mind putting in the hours and have learned that I am a demanding boss myself. However, I will be working for me for a short time and soon will have my systems in place to hire employees to do most of the work for me. I also would like to have more of a secure future for myself financially. I dont see that working for someone else that holds my destiny in their hands.
To sum it up:
Freeedom....physically, spiritually, and emotionally are my primary objective in investing. Wealth Creastion is a close second. And the legecy of showing those around me that it can be done. Most learn by example not through reading. So I'll show you! lol...

Jeffrey K. · Answer

I invest because I feel like I have more control.  I dont like stock prices going up and down for no apparent reason.  Only 10% of the market is private individuals.  In real estate, it is probably 90% individuals or small business.  I feel safer because I know my market and stay local.

Could I make as much money in the stock market?  I am not sure.

James Vermillion · Answer

For me it is fairly simple:
1)  To set my family up financially
2)  It is fun and challenging

Those two things make it very worthwhile for me.

Greg B. · Answer

I initially got into it for more income.  Then I learned more about the tax advantages.  This all led to more freedom and control.  Now it is leading to more flexibility and choices in life.  I can choose whether to work for/with someone or not.

DAVID GAGE · Answer

I could not have wrote it any better. AGREED 100%

Wider Motivations for Investing?

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