Why In the World would you invest in Real-estate?

Question

What is your WHY??? What wakes you up in the morning and makes you want to do a deal? When I started 5 years ago, I used to think it was for financial freedom or more time with my future kids, but now I think I just enjoy watching things grow! Its not about the numbers or even that it takes up more of my time. I just enjoy it. Is this Bad???

Why do you invest? What is your fundamental motivation?

Patsy Waldron · Answer

I find real estate investing fulfilling because it engages the whole person. There's the intellectual aspect (learning about different investment strategies, niches, areas; figuring out legal and tax strategies and implications; analyzing deals), the physical aspect (to the extent that I choose to do some labor) and the social aspect (networking with other investors; negotiating with sellers, lenders, contractors and potential partners). I like that much of it is in my hands- I can analyze a deal and decide whether it makes sense, how to make it work, and when to walk away. I like that the roadmap for preparing for the future is clearer than through other avenues. I respect and appreciate the power of leverage- an enormous advantage not available in other financial ventures. And I love walking up to a physical object that I just bought to make me money (compared to other investments that are just numbers on a screen or sheet of paper)! And finally- I, like the OP, do enjoy the entrepreneuship aspect of it- building something, scaling up, finding and creating systems to streamline operations and make them more profitable, etc. What a fun ride (even with the occasional bumps in the road)!

Justin Fox · Answer

I get to spend lots and lots of money.  Instead of it being a simple Vanguard electronic transaction, I get to build something and be a part of the investment.  Not only is my capital growing but I'm getting great dividends as well.  Lastly, there's a vast amount of knowledge to be had in real estate investment, building, rehabbing and etc.  I love it.

Adam Christopher Zaleski · Answer

As a tenant during my college years, I was burned more than once by shitty landlords. I am driven to make it a positive experience. My tenants get super excited when they get a great rental at a great price. It also makes me money and everyone is happy.

I also love the game. I like buying houses that are not in great condition and many others have passed on it. I like betting on myself and going against the grain. I try to find value that no one else can see.

Dan D. · Answer

I like to take something that is broken, buy it, fix it, make it nice, and let others enjoy it for a modest price.

Satisfaction in providing nice homes to people who need one because they incurred unusual life circumstances, but still want to be proud of the place they live in.

Steve Vaughan · Answer

Yep - control and fulfillment.

I used to be a paper equities trader, broker and private placement underwriter.  It was all about the sale and I couldn't control any of it.  The markets rise and fall. The CEOs and directors of my stocks and funds never once asked for my input about business strategy for the coming year.

You also can't touch equities.  Can't build a deck on them or paint them (love that), can't feel your customers happiness when you place them into your 'investment' like you can a good rental and you can't borrow 10:1 with great long-term financing to buy them.

Buying a security and improving a neighborhood are completely different.  One matters.  Thanks for the discussion @Joshua D.!

Jeff Wallace · Answer

@Joshua D.

Because I love it!! I can't paint my stock portfolio- or build a deck on an investment acct- I enjoy finding a deal, I enjoy making the property attractive to a tenant- I love seeing rent checks deposited - and I really love that an investment that I can physically put my hands on actually helped me quit my job in my early 40's

- I think my love of real estate investing began as a little kid playing Monopoly

Aylen Montenegro · Answer

I love it because it offers me the freedom to create something. Designing a plan, visiting stores and selecting materials, and planning a remodel gets me in a zone where time does not exist and my days blur together. I've work for several companies within the industry, both independent and corporate, and I am yet to find a down to earth approach and work that matters or fullfills you as an individual.

Real estate investing, specially buy and hold, or flips, I love to add value and create something new out of what most people would consider a tear down. I always get the : "you made this, out of that" kind of reaction to before and after pics.

Real Estate is the only business that allows me to monetize my passion for architecture, design and my crazy diy skills, while filling a need in the marketplace. Most end buyers just want a finished product, at a good price ( at least in my market). I've tried stocks, bonds, arbritrage and real estate is by far, the best value/risk I've encountered so far.

Looking forward to a 50 unit luxury rental building and the casual flip here and there.

Martin Carstens · Answer

Patsy nailed it!  I did what all financial advisers recommended in the eighties. Buy & hold blue chip stocks for twenty years. The only thing I can say, I did not loose it all! It did nothing. I enjoy life long learning, and something I am in charge of. From a humble start, I have been able to build a small portfolio of eight single family homes. I sure enjoy that a heck of a lot more then one statement in mail every month, and having no control over it. It is not a sheet of paper. Every day eight tenants are going to work for me, and they get a quality product in return.  I find it much more rewarding then collecting a pay check, and it give me hope of a better day to come!

Account Closed · Answer

My main goal is financial freedom and all the the good stuff that comes with it.

As an investment I think real estate is probably the one where you have more to say about what's going to happen to your money while at the same time having as good or better returns; I think control is really important.

Also I enjoy knowing that we are improving the quality of life of those around us while making money.

David Stone · Answer

I buy and hold so my goal is to bring in enough passive income to support my lifestyle... without needing a JOB.  Fortunately, my wife and I have built our business enough to bring me home to manage our properties and take care of our kids without the need for daycare.  I am a former Paramedic.  My wife works 3 days a week as a nurse and as soon as we reach our magic number, we will be bringing her home too.  My WHY is to spend more meaningful time with my family, travel the world, and give back to my community.  I couldn't think of a better way to do so

Why In the World would you invest in Real-estate?

Most Popular Reply