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Updated over 7 years ago, 07/09/2017
What is your WHY ?!?!?
I have a question for all of you BPers
I am an active buy and hold investor and some months I ask myself why am I doing this again?
I believe I do this because I do not have a clearly defined WHY to look to during those not so smooth times. That being said I am working to create a perfect WHY for me. I figured while I work on it I could hear from you all on your WHY.
WHY do you or do you want to invest in real estate?
Im doing it so i can choose what I want to do with my time. I want to be at all of my sons most critical events in their life and not sitting at a desk tied to a 9-5.
Linda D. I feel the same way . I love redesigning the units and I love the feeling of growing my passive income every time I close a new building or fix an old unit and rent for more cash ! I just love real estate lol !
To be able to retire comfortably. To try to fill the hole that the austerity measures with pension cuts have left.
I want to homeschool my daughter. I have a pretty good job, but every day I'm painfully aware of the the pace we have to operate at with our daily schedule. Memorial day weekend we went to my grandparents lake house and spent about 5 hours just the two of us on their little beach playing with a couple toys and exploring the water. She is without a doubt my WHY
@Account Closed
Okay so the banking person here has to say it:
1. Leverage - What asset class has more leverage than 20:1? Uh.. none. Good luck getting a loan for your business with 20:1 or 10:1 leverage.
2. Buying Power - What asset class can you lever against 10:1? Uh.. Very few if you have little cash or don't own a company.
REI is a means of acquiring other asset classes as you can lever against it. Whether those other asset classes are stocks, fast food chains, apartments, dry cleaning companies or 711s is up to the investor.
Without that buying power that REI can create, an investor is somewhat limited in how they can allocate their funds.
From the post-it in my bathroom mirror:
1. Our kids.
2. Financial freedom - work for fun only.
3. More time for us.
4. Travel more.
It's fun!!! I'm clearly not where you are in this venture, but I think I can relate to the aspect of not needing money to a point and searching for a stronger why to continue to push. Real Estate is an adventure and it hits a strong amount of my needs. An adventure because I don't know everything, so everyday is brand new and offers so much variety. I can remodel a home, and learn 100 different skills scouring through youtube. I get to network with a tremendous amount of people who know 100x's more than I do. I get challenged to push myself out of my comfort zone, learn and grow far beyond what I think I'm capable of. There is a strong amount of uncertainty which gets my adrenaline going. Growing up I didn't have much, and I consider my family definitely on the lower side of the income spectrum. I want the money and success because it will give me a strong sense of significance. I believe that I'm building on somewhat of a foundation that my great great grandparents began. I'm the first kid in my generation to graduate high school and college. Most of my family due to poor structure have dropped out of school by the 10th grade. So, I'm just trying to set up the next generation to be better off than mine, and maybe even be able to pull some up to the metaphorical top. Maybe one day my great grandchildren will be Harvard students running a major hedge fund and changing the world! If you are bored of buy and hold investments, shake things up a bit. Do some other aspect of real estate or something totally different. Maybe mentor someone, or teach a class. Good luck bro, hope you find your why!!
I love real estate. I love talking about it, I love looking at houses, I love making offers, I LOVE when those offers are accepted, I love the back and forth negotiations, I love the possibility of what an ugly house can become, I love the process of making an ugly house better, I love listing the finished product, I love signing the closing documents and I love cashing big fat checks!
To be honest, that last one isn't even my favorite.
One word...
Independence
I would also like to leave that option to my son as well.
I got tired of seeing everyone lose their jobs. I've somehow managed to dodge this through multiple job moves. I want something to fall back on. Also, not many designers over 40 years old, high burn out rate. I like the idea of having a family business. If I ever have kids they will instantly be employed versus taking on student loan debt for a chance at having a job... Also the money made per hour is higher in real estate. I value my time.
Bryant....it is totally for the giving piece of this business! Community jobs, affordable housing etc....not to mention that giving makes me feel good.
There's just something very exciting and appealing about real estate in terms of being an owner, but also having it as a tremendous asset to build wealth over the longterm. My immediate "why"s including having my own place, building wealth (at first replacing expenses and then salary), and enjoying life more (be it spending more time with family and friends, traveling more, etc.)
My why is my health, specifically being in a wheelchair. I don't want to bankrupt my husband, and I've already spent two incredibly long weeks in a so-called "skilled nursing facility". No thanks, never again. At least not until I'm not A&O enough to care.
@Account Closed
I agree with Thomas. Money.
When I started it seemed like it was a way to build wealth. The usual - We all start to either make money and build wealth or find a way to create bigger returns on the side if you have a job.
When you are dead broke you are grabbing at straws. You are hoping it's the right one.
To begin with it was money. Today it's still money but now it's more fun because I am not desperate any more. Real estate is a pain in the a** at times and fun most of the time. But it's like any other growth.
I did not want to lose and real estate gave me an equal playing field.
The problem with real estate is that it's a lonely business.
Personally you have to build a community locally for yourself if one does not exist of like minded people that are on the same page. Over time as you grow it will grow with you.
You problems grow as you grow as long as you are doing well in terms of business. Each year is better if are accumulating and stacking properties the right way.
Some people say their kids is the reason and that is their why? I don't have kids and am not married so it's money in the end.
I have wondered the same thing where does that hunger, drive and passion come from?
Not sure. I think there a lot of great stuff off there and I feel I can achieve it why not try to just go for it. It's an attitude.
An extra house or an extra $ 100K or $ 200K won't change my life. But what the heck I would still rather have it. Lol :-)
I have a decent job that affords me to invest(small time compared to most). I have a 401k, 457, and a pension (for now) but I do not like the idea that all my income is dependent on one source. I like options and RE is doable after work and on my days off. I just purchased a SFH and I am renting a room out that will pay 1/2 my mortgage. I would like to rent the whole house when he moves out or rent the 3rd bedroom out.
1- Multiple income streams
2- More control over my investments versus 401k/457 stocks
3- I plan on not having my pension when I retire (30ys away)
Why? So I don't have to tell my kid we can't afford to send her to that private high school she wants to attend. So I don't have to tell her to have smaller dreams to fit my budget. So she doesn't have the limits I grew up with. That is why.
Aside from the comments above that we all seem to have figured out, and I am not saying those are not important, time/freedom, financial freedom, leaving a legacy are all very important. My why- To be irrationally generous. To be given the opportunity to impact others lives, through helping them achieve their goals whether it's real estate or not. I mentor young people in Sierra Leone and Freedomtown Africa, these children and young adults have been orphaned due to illnesses, many of them have no other family. I want to leverage what I have been given to further help give a hand up.
What an amazing thread!
Here are a few of my WHY's:
1) Flexibility - I make my own schedule and work for myself. Real estate is fun and doesn't feel like a job although I put in a lot of hours.
2) Unlimited potential to earn as much or as little as I want.
3) More time with family...which is actually number 1.
Tahnya Pierce great post !
People think it's all about money and that's not the point . Although money is the key driver it's the other things that you do with your life that should creat your why.
Mine is something along the lines of : creating large amounts of passive income (the money part!) while creating value for my tenants and improving the standards for housing in my cities . The derivative of creating this passive income is creating an ideal life for my family traveling with my wife and giving back to the community/ helping people in need .
Saying money is everything and the only reason is a bit near sighted IMO. It is also true .... that's what makes it so interesting !
Tahnya Pierce seriously tho best post on this topic hands down . You understand it and many people just don't seem to .... I used to think money was everything until I created some . I realized after some time it's just a tool to do what actually matters in life . Phenomenal point of view this is how others need to be thinking !
Cary Ferguson Jr I am also in banking lol I am so with you . The perks are amazing .
Nice to meet you all! I as a new comer, hope to use this way of investing for another vehicle for financial wealth. Coming out of college, i knew i wanted an endeavor to help me aside from the career i was trained for(Finance). The proven longevity and wealth that can be made from real estate seems endless.
Jeffery Waicak love it ! I love the chip on the shoulder !
It begun as the possibility of freedom. Now that is still the headliner but I really enjoy managing, investing, marketing, cold calling, and being change in the community.
Bryant Schur for me it is the freedom to know that I have control of my ceiling, not a job telling me that I can only make this much money without this degree or certification. I don't like to e in a position where I know that I can be replaced. I'd prefer to have control of my own destiny. I love that there are different vehicles to make money in REI. You can really get creative and make it what you want it to be. I want my hustle to determine my salary, not someone on a board. Real estate investing is really fascinating to me, since I've been educating myself I can honestly say that I've found a new passion.