It’s refreshing just to read the posts to this topic.
Real Estate is still THE tool to obtain a level of independance from your 9 - 5 job, wether that may be completely or partially. And it’s THE tool to build wealth while being your own boss.
If you don’t mind getting dirty, have a reasonable tolerance of risk, and are motivated to get out there on your own, then Real Estate can’t be beat. It’s the most common path individuals have taken to wealth for just about the entire history of the U.S.
I know plenty of people who have become wealthy and had “freedom” from owning their own business - some real estate businesses, others through traditional businesses. In both cases, the key was to work long and hard in those early years.
I think the difference with real estate is that you have the potential of getting lucky with some rapid appreciation in addition to your hard work. I think it’s also an easier trade to learn for people that have gone through the home ownership process already.
Heck - I know a guy that owned a machine shop. He did very well for himself over the years. By the time he retired last year, his factory (which he owned free and clear) was worth $5M because the surrounding area developed like crazy. I guess he got the best of both worlds.
Actually - the funny thing about this guy is that his primary business was a machine manufacturer, but he made a lot of his money buying old machines for peanuts, fixing them up, and selling them at a higher price. Sound familiar?
Here is a list of what I think are the advantages of being a real estate investor.
1. You write your own paycheck-95% of people that I know have to work harder in order to make more money, I only need to work smarter. I know that alot of people like the satisfaction of knowing that if they work x amount of hours they will get Y amount of pay. I realize that many people would real estate investing stressful, I would find it far more stressful to be at a 9 to 5 knowing that in order to make more money I would have to work more hours.
For example, I just closed a home friday that I made a $17,000 net profit, That would be the equivalent to working a full year 2000 hours at $8.50 an hour, which alot of people do. I had about 10-15 hours into the deal. My guys had to work hard but I only had to write checks.
2. Knowing that if I fail its my own da*mn fault-- Many people might see this as the huge disadvantage of real estate, but I see it as one of the largest plusses. In the era of corportate downsizing, and very minimal job security, I cant think of a boss in the whole world, than me. 99% of all jobs are there to make someone else rich besides you. When you are real estate investor your only job is to make yourself rich.
I love knowing that if I do good, my paycheck will do good, If I do bad, then my paychecks are bad. Its not like most jobs where there seems to be a large filter between both ends. With real estate investing if I put good in, I get good out, with most jobs you can put good, or even great in, yet you are totally dependant on what the human filter between you and the end.
Any hardworker who has been downsized will tell you that.
3. Freedom-Though real estate investing is not the big ball of freedom that many think it is. Many times you go from having one stupid boss to many stupid bosses. Essentially the housing inspectors, building inspectors, buyers, and sellers become your boss.
The real freedom to me is waking up at 8-9 sitting with my family till 11, then going and looking at a couple of houses, if they look good then I sell them, or buy them, then go home. In the summer I can drive my vette or harley to look at homes, then head home and sit with my family by the pool.
4. No salary cap or timed raises-I had a friend of mine the other week tell me that she just got a raise of a Nickel and hour. What the heck does that equate to. Yeah $2.00 a week. I have other friend who are engineers and they reach there potential at $75,000. Which isnt bad money but, who would ever want to reach there potential, the sky is the limit in real estate. There are far more real estate millionaires that started with nothing, than corporate millionaires that started with nothing.
I like that you dont need a college education, you dont need to have the highest GPA, you can make it in real estate if you were raised by wolves under the shed in the back yard. Real estate doesnt have a glass cieling, or some bullsht corportate ladder. It doesnt involve having to kiss the as of some dude who you loathe, in order to get a raise.
Nobody WANTS to live in Houston, some people have to live in Houston. I would prefer to live in Newark New Jersey.
Newark over Houston?! I like living in Houston. I moved to Houston from Austin.
However, I WANT to live in Mexico or Florida or California (local beach locations).
REI is what everyone on here has said, but in general, it’s an opportunity. An opportunity for me to get rich/wealthy. An opportunity to be my own boss. An opportunity for freedom and flexibility (I have a lot of this with my ‘day job’, but more is good.)
These opportunities, and all of the others discussed, aren’t readily available with most jobs. But with REI, you control that destiny. I know I don’t work hard enough - yet - but I’m in the game. I know I need to keep learning, and I do. I know I’m in control and just need to give up a little more sleep (for now) and focus on building my machine. But that’s the point, I can do it whenever I want to.
I was just joking an my wife said I should stop inviting people here…they might actually come.
Is there anywhere in the country worse than Newark? I’ve been through there a ton of times an its a scumhole.
Try driving through Camden or Trenton.
Lots of good rehab opportunities in Newark. Going through a huge downtown revitalization. Who knows if it will work though. I looked at 2 properties there recently, and both were a little too “hood” for me. There are actually some very nice towns within 10-15minutes outside of Newark, so there are actually some decent areas to invest in Newark
I’m from NJ originally (no, not Newark). Being THROUGH somewhere a billion times doesn’t tell you anything. I’m surprised at that comment from you, you seem more thorough than that. Yes, there are parts of Newark that are “scumholes” as you call them. Yet there are others that you would mistake for a Norman Rockwell painting. You can’t tell that from the speed racer like drive through most people take.
freedom, tax deductions, no boss, the ability to determine your own income, take vacation when you want without having to ask and get approved, no risk of layoffs, downsizing, rightsizing, the company being bought, etc, etc, etc. it’s not all roses but it sure beats having a job as far as i’m concerned.
ericmedem: :beer
You’ve given me a boost of ethasism in a time when I am doubting.
Thank you.
:beer
al
Of course, the freedom is good as well.
I know this is not the focus of most of the discussions on this board, but I get pleasure from transforming a crappy place into a nice one. Sometimes an item as a simple as a used $20 microwave or a used $100 washer/dryer will make people feel better about their living situations. It impoves neighborhoods and it makes me feel good that I have provided another person and/or family with a quality place to live. Someplace where they are pleased to go to each evening.
Of course, the money doesn’t hurt. :biggrin
money and flexibility
:biggrin