When to change lanes… If ever?

Question

So I have been investing in single-family houses for over 20 years now. In about a year I’ll be 50. Technically I don’t have to buy any more houses at least from where I’m standing I live modestly from my perspective, As with most things, a persons cost-of-living can go up, as well as the fact that inflation has been on the rise.

I have really been having some thoughts about am I still doing what I’m supposed to be? Am I supposed to change asset class or hang up the tools altogether? Do I need to be retiring from real estate in order to do more faith base work etc? I’ve heard about the shiny object syndrome for a long time and to the most part I’ve stayed in my lane for all these years and supported my wife, children as well bless our Church. My oldest son seems to think I’ll get bored If I don’t keep buying real estate.

I’m not sure how much input will come from this topic, whereas most people here are newbies, but I assume there are some people that have been in the real estate game for many years and have change lanes to some degree and have insight. Also, if changing lanes is simply tiredness on my part, or shiny object syndrome, then that might not be the right path either. curious to hear the thoughts of others.

Nathan Gesner · Answer

It's easy to be distracted by shiny objects when you aren't working towards anything specific. If you have a destination in mind, then it's easier to determine the route to get there.

I wanted financial freedom. Once I attained that, I still wanted to invest but needed a purpose. So I created a goal of $300,000 annual net income from rentals with at least $100,000 of that going to charitable contributions. That gives me $200,000 to live on without having to work, which frees me up for missions or volunteering locally. I'm not there yet, but having that goal in mind makes it easier for me to create a path and figure out how to get there.

So what do you want to be when you grow up, Joe? Tell us where you are and where you want to go. Maybe we can help you find the way.

Account Closed · Answer

The Apostle Paul made tents to pay for his mission work. There is no word in the Word called "retirement". I've looked. ;-) My wife (of 45 years) and I took a 6 week vacation traveling the USA and got charged up to do more houses. We changed lanes from Fix & Flips to STR. Listen to your son, he knows you best.

Chris Davidson · Answer

@Joe S. congrats on staying focused and reaching your original goals. It defiantly is shocking when you get there and now have a what now moment. If I was in your shoes  I would spend some time and really focus on what you want to do with your life. If you want to learn a new asset class go for it. If you want to spend more time with family do it. If you want to keep on your path but a little less intense do it.

Now your main goal should be don't blow up the portfolio, and do what you want. Finding your passion can be hard when you have been so focused and passionate about growing your investing. There is also nothing wrong with it still being your passion and you staying on track and just adjusting goals upward. Dive deep into what really gets you excited and you enjoy and go after that!

Keep crushing it!

Murad Clark · Answer

Switching lanes may be necessary depending on what easily comes to you. Initially, I  enjoyed purchasing tax liens but then I fell in love with property research and and repairing discounted properties. It's always best to go do what comes easy and brings excitement otherwise you become bored and repetitive.

Henry Clark · Answer

Second time in a month. Same question, different words. Looks like you hit Analysis Paralysis.

Will use my kaizen process training on you.

Before doing this use the lookup with my name and what happens if you die?  We went through those steps and I don’t look over my shoulder.  I could die today and know my family is taken care of.  The world could go into Depression and we would be great.  Now we are looking forward.

A.   Office Depot.  Buy couple pads of yellow sticky’s. 3 x3

B.  Gather your family around and or friends and give them a sticky pad and a black magic marker.

C.  Find a flat surface to put the stickies on.  D. Go around the table one at a time and have them put an idea down.  E.   Ask them to put all of the facets of your life down.   Keep going around until no one has any more ideas.  F.   Take a break.  Have two of them group the ideas into 5 general groups and an other group.

G.  Now have them rank them.  vote in each group 1, 5, 10.  Where should you invest your time.   They can vote 10 on each one if they want.  Talley up the points.  You can change the question.  H.  Starting with the top points.  Discuss and summarize to 3 points under each.  Thank them.  By yourself develop point A where you’re at and Z where you want to be.   Then put 1/3/5 time periods.

The areas you want to spend less time develop efficiency steps.  Someone said hire a PM as an example.

Areas you want to amplify match goals and resources. Then put your head done and go to it.   3 months later stop and see where you’re at and adjust as needed.  Direction, resources. goals, time frames.

It’s not all or nothing.  You can mix religion with REI.   And REI with religion.  Where are your kids and wife in life.  Keep them mixed in.  Success is only worth it, unless you can share the moment.

Good luck.

Got to sign off and call my guy in Belize.  Found a source for a lot of banana plants.  Apple, Red, Cuban and Praying Hand banana plants.  See if he got them.  Will be down there again next week.  Can’t wait to plant them.

Got to love hitting financial freedom, having our son join the Navy (big military family), and sharing experiences with my wife in retirement.

So what’s left to do?  What can make me fill challenged and more fulfilled?

A.  Ignorance.  Love not having the answer.   How do you plant a coco yam?  Guanaba who?  How do I catch one of my crocodiles for a barbecue?  Hope the same way as catching gators where I grew up.

B.  Second/Third world country.  My contractor and caretaker was worth about $2,000 before we met.  Teaching him how to grow wealth.  Targeting $2,000,000 USD in 15 years for him.  It’s a number he can’t comprehend.  40 years old living at his parents house.  Got $1mm covered for him already.  If we get a deal we are working on, he will hit $4mm in 15 years.  An average Belizean is probably worth about $500USD net.  He just smiles and hangs on while I teach him things.

Full of myself?  No.  Just showing you the path I took, when I hit your question.  As my wife asked back then, when is enough, enough.

Mike Dymski · Answer

You may have flexibility if you can turn your portfolio over to a PM if your soul searching suggests trying something new.

Jeff S. · Answer

@Joe S.the nice thing about RE is you can do what you want. Getting bored is not a bad thing sometimes. As far as changing lanes I would not view it as one or the other but more a combo unless of course you are tired of the whole thing. I have fewer places but very long-term and wondering the same things as you. Volunteering isn't always wonderful as I did that full-time for a while and actually burned out on it. If you are enjoying yourself then you are way ahead of most in life.

At this point you have assets to manage which even without buying or flipping is an endeavor.

Eliott Elias · Answer

Opportunities will present themselves to change lanes. You can't go from buying real estate full time to something else that does not require the same amount of hustle. This is the best career in the world.

Theresa Harris · Answer

If what you are doing is working and you are content, don't worry about what others are doing.  On the other hand if you want to try something different, then try it.  Worst case you lose a bit of money and you learn a few new things.

Joe S. · Answer

Have someone take your picture while you’re catching those crocodiles. :-)

When to change lanes… If ever?

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