The Number One Word In Real Estate!

A few weeks ago my wife and I were attending a local real estate meetup where we live. (if you are not in a local club don’t wait and join one now. If there isn’t one start one!) While we were there we met several new investors to our local market.

While speaking with these new investors, one mentioned they were new to investing and simply wanted to learn how to get started. As I explained various strategies that can be read about in other blogs and resources, one key principle came to fruition.

The biggest and most important aspect of real estate investing boils down to one word. Why. What I mean by this is what is your “why”? Why exactly are you investing into real estate? Why are you pursuing an investment strategy that goes against the grain in many people’s eyes? 

For some, this could be as simple as buying a few properties here and there and having them paid off by retirement to provide supplemental income. Others may look into it as a way to have a more active role in their investments. For my family, we invest to be able to live a lifestyle that will grant us as much time as we want with our children and to travel freely. 

Whatever your “why” is, it is extremely crucial that you figure this out before investing into any property. If you’ve already invested into a few or even a few hundred properties and don’t know your “why” I highly recommend you take time to stop and evaluate your situation. 

I’ve spoken with many investors who have said they simply lost track of their end goals or didn’t even know them and got in over their heads and try to sell off everything because they are so overwhelmed. 

Your reasoning does not need to be anything extravagant by any means, it could be as simple as wanting a few hundred dollars extra every month. The point is however, you need to know the reasoning behind why you are investing. 

Not only will this help you stay grounded if times ever get tough or rocky, but they will also help you be able to define an investing criteria. Not having a reasoning behind why you are investing will lead to buying property just to be buying. This strategy may work for awhile but you will eventually get yourself into a bind in where you have underperforming property that hinders all of your hard work. 

Having a reasoning behind your investing strategy will lead you through the dark. It will be a motivating force to solve problems. It will drive you to have a well performing portfolio. If you don’t know your why or have a strong enough belief in your why, you simply aren’t building upon a solid foundation.