When do I decide I have enough

Question

When do I decide I have enough Real Estate. I having been buying apartments and storage facilities with money I make from flipping homes. It has snowballed into a very nice size reoccurring check each month, more than most make in a year. I know I could keep getting bigger, but I’m well past my goals and growing more would make me less efficient.  No I don’t own a jet yet, that would probably be my first question if someone asked me if they had enough!

Michael Ealy · Answer

Congrats man. I am in the same position as you. Although, I fix n flip apartments and hold some of them for cashflow - that's how I end up with about 1,000 apartment units. And no - I don't have a private jet yet and probably will not buy one even when I can.

To me, cashflow not the focus anymore. It's about leaving a LEGACY.

My goal is accumulate $1 BILLION worth of A/A+ assets like hotels that I can pass on to my children, and in the process of doing that, give away 50 college scholarships to help orphaned children.

Account Closed · Answer

@Justin Thiesse that's a pretty personal question my friend. I want 1M a year passive. I don't know if i'd ever spend it... i'm cheap as ____. You choose the word. It's all just a big game to me, and I want to have a high score. It's not materially driven, which makes it a bit confusing sometimes in a fashion similar to your question here.

What was your goal? Now that you've reached it, is there something about pressing forward with a bigger goal that appeals to you? Why does it seem inefficient to continue to push for a bigger goal? Is there a way you can adjust your model a bit so that it self perpetuates in a manner more sustainable considering changes in your work/lifestyle preferences?

Since I'm still in growth mode, I still want to work HARD to maximize returns and throw rocket fuel on the fire... but when I've got 10M net worth to throw around a lower yield for something more passive would be far more acceptable & it would probably coincide with a time in my life where I value comfort and time for others more than "the grind".

How's your brain working here?

Dennis M. · Answer

You are not really successful until you can walk across the street and several folks say “ there goes that son of a $&tch”

Cody L. · Answer

When you don't want to do it any more.  I've set up "I'm going to stop at..." figures, only to hit them, and decide "Why not keep going?".   At first I was like "100 units and I'm done".  Then it was $100k rent roll.  Later it was 500 units, then 1000, then $1m rent roll, then 1500 units.

Bottom line as long as I like it, I'm going to keep going (though new goal is $250m in property.  I told my wife I'd stop there.  But had my fingers crossed ;)

Christopher B. · Answer

Sounds like you got it figured out to me. Trade up to higher quality, less effort assests. Stabilize and protect your position. Continue to do this as desired. Then use the excess to invest in "fun" projects. A successful investor I know told me once he'd never retire because now it's all fun for him. He only invests in projects or businesses that meet his lifestyle, which is no involvement from him day to day and that excite him one way or another.

Pretty good gig. Congrats on your success

Mike Dymski · Answer

Write down your values and make these types of decisions in alignment with them.

Theresa Harris · Answer

@Justin Thiesse  There is nothing wrong with meeting your goals and creating new ones.  If you are doing well and enjoy doing it, keep going.

Justin Thiesse · Answer

@Theresa Harris

The one thing that changes as you start reaching your goals is the deals that once made sense, now look like a headache. You’re right about changing my goals. That includes only buying A class. properties. Less returns but less headaches. I am also selling off my smaller apartments and buying bigger ones.

Theresa Harris · Answer

@Justin Thiesse  It is also important to look at the properties and see if they still make financial sense.  Would selling them free up money that can be put to better use elsewhere?  Properties appreciate and mortgages get paid down and it is easy to 'forget' about that equity.

Cody L. · Answer

"Someone that would stop once they hit an arbitrary goal, is not likely one to reach that goal"

When do I decide I have enough

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