So you’re thinking about investing in real estate. The first question I, and everyone else you run into, will ask is, “why do you want to invest in real estate?”
Believe me, there are plenty of reasons and I recommend real estate investing to everyone, but you must know for yourself with absolute certainty why you want to invest in real estate.
Why do you need a solid answer? The main reason is simple; real estate is a very expensive and potentially hazardous business opportunity and, when you run into obstacles, don’t know what to do, run out of money, panic, get stuck, and question yourself (and you will), you need to have a solid “why” to keep you going.
I have my reasons.
Before I got into real estate investing, I sold high end furniture and was paid straight commission. I enjoyed what I did but didn’t know how long I could maintain the stamina necessary to run around the store 5 days a week and how long my psyche could handle starting my commission scale over at $0 on the first day of every month. I realized that there was only so much I could earn with my own time and energy and, at mid-life, I had only so much good health left to get myself to retirement. To live the financially comfortable life I desired, I’d need to find a way to generate income even when I wasn’t working.
So, I began my research by asking my wealthier clients, the ones who could spend $25,000 for dining room furniture, what they did for a living. The number one answer, by far, was real estate investing. Not doctor, not lawyer, not CPA but real estate was the most consistent response. I found that fascinating.
And, I read books about the very wealthy and how they created their wealth. So many wealthy, unless they’re a Bill Gates, for centuries made their fortunes through real estate. The railway barons were wealthy because they owned the land. Oil tycoons were wealthy because of the oil in the land they owned. William Randolph Hearst, the newspaper magnet, made the bulk of his wealth buying up the west coast of California for pennies during the great depression. The stories go on and on.
I was making very good money in commissioned sales but didn’t know how I was ever going to save enough to retire so, thanks to my research and my interest in real estate, I decided that maybe I should buy some rental properties and pay them off so then I could live on the income during my retirement. I thought 5 free-and-clear properties bringing in $1000 per month would be great income in 15-20 years.
And, my final and most important motivation was my children. I want them to know that their future is secure. Having real estate and the income it provides to pass on to my children and grandchildren is something I continue to work toward daily.
What are your reasons? Are they deep enough and strong enough to keep you going when things get tough? Your reason will make all the difference in your success or failure. Think about it, write it down, believe in what you’re doing and why.
