Why Are You Investing in Real Estate?

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This may sound like a dumb question but the reality is, most investors are not clear as to why they are investing in real estate. Their reasoning is generally backed up by logic i.e. Real estate will make me money over time, real estate is cheap right now, interests rates are low, I get a better return than the stock markets etc. All of which are very true, but what’s the REAL reason why you are investing in real estate? Do YOU really know?

Find Your REAL Motivation

I dare you (okay, I double dog dare you) to take 10 whole minutes after reading this to really focus on what it is you want out of life. That’s right, lock yourself in your office away from distractions and sit in silence for 10 minutes and just dream. I guarantee you’ll be blown away, especially if you’ve never done this before.

Think about what you want your life to look like in the next 5,10,15 years. Are you financially free (not having to rely on a “9 to 5”) and living on a beach for 6 months of the year? Let yourself feel the sand on your feet and the sun on your skin and make an emotional connection with this feeling. I know this may sound a little woo-woo for some of you, but this is extremely important. The stronger the connection with this dream the more motivation you will have to achieve it. Having a sense of clarity will get you to your destination much sooner than “just buying property because interest rates are low etc.”.

Take It To The Next Step

Make a “vision board” of your goals. Cut out pictures from a magazine or print some off the Internet of things you want to achieve and glue them on a piece of bristle board along with a specific date in which you want to achieve them by (it’s okay to have fun with this too!). Put it somewhere in your house where you will see it daily as a reminder. I personally have one for my 10 year goals along with one I make every year to keep me on track in order to achieve my long-term goals. Clarity is key! This will help you to stay on a straight line towards your goals. And while “life happens” you are still in control of your destiny. Don’t let life just “happen” to you!

“The best way to predict the future is to invent it” – Alan Kay

How Much Cash Flow Will You Need?

Now that all the woo-woo stuff is over, here is the real reason why we do this (If you’re still reading, good for you!). Figure out how much cash flow you will need in order to live the lifestyle you want. For example, if you need $10,000 per month in order for you to achieve your dreams, how many properties do you need? Whether you specialize in single-family, multi-family or student rentals (because you are specializing right!?) you know exactly how much they cash flow per month which means you now know exactly how many doors you need in order to get that $10,000 of positive cash flow coming in monthly. When you have an exact plan set in place, it takes all other distractions away. When your friend or cousin calls you and says “There’s this great multi-family property across town. My realtor says it’s a great deal!”, you can say “Thanks but no thanks. I specialize in single-family homes in THIS part of town. That will just take me off course”. See how easy it becomes. Laser focused! I hope you take the time to dream a little and have fun with it. Good luck!

Photo: Lel4nd

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About Author

Mat Piche (G+) is a real estate investor, certified carpenter and RE/MAX Realtor in Kitchener, Ontario, Canada specializing in single-family investment properties.

8 Comments

  1. Mat –
    I have found that this process absolutely works. Vision boards simply put your goals in front of you hour after hour, day after day if they are hung where you can see them from your workspace. Visualizing your goals puts emotion into your desires which will definitely help you reach those goals. We all know you have to really “want it” and you have to be clear on your “why”. But being able actually feel your success, takes things to a whole new level. Well said.

    Sharon

  2. Agreed, agreed, and agreed!

    I always write out my goals along with dates and deadlines.

    I have a framed vision board that gets updated when I’ve completed everything on it (which happens sooner than you expect when it’s hung in front of you everyday!).

    And the first time I sat down and actually calculated how much I “needed” every month to cover my bills, I was AMAZED how much LESS it was than I thought when I was used to W-2 thinking!

    Great article. I hope people take you up on it. Simple but powerful.

  3. mstroumph, if you did not “get” or thought this article was a waste of time, you are lacking clarity in your business. If you’re running around buying real estate just because, you may never get to your desired destination. The most successful entrepreneurs create vision boards to keep them on track to success i.e. John Asaraf, Tony Robbins, T. Harv Eker, Eben Pagan etc. Your peers seem to really enjoy the article, perhaps its time you open your mind to “different” ways to launch your business. Thanks again, I hope you have a better understanding of the article.

    • PS: It’s not all about theory, techniques and strategies. Everyone wants MORE information on HOW. They often find themselves chasing the new shiny strategy and being “busy, busy” but never being CLEAR and specializing (one of my next blog posts). It all starts with the mindset THEN acting.

  4. Mat –

    I am one of those people that hates the fact that faceless people with no first and last name can even post comments here. Maybe that is something that could be changed.

    If you are going to post negative comments that’s your right. But at least have the courage to put your face and your full name out there before you post. Come out of hiding and comment away.

    Sharon

  5. I’ve never been one for the “woo-woo” type of things. But, I don’t know that it is not because many people (i.e. me) avoid accountability. That vision board is not just an inspiration, it is a watch dog. Your post says it quite nicely and you cover this point. But I believe (because I am guilty) that most don’t follow through with this type of motivator because of a fear of failure, or don’t want to hold themselves accountable. I hope that this comment helps others to commit to this process. By writing this, I am trying to force myself to comply. Taking the first step is so difficult for so many. This tool can help break through for many. (hopefully including me)

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