Real estate investing is exciting.
Anyone who invests in real estate has undoubtedly experienced the ups, downs and loop-to-loop roller coaster off emotions that comes with it.
- You just negotiated a great deal that will provide you with a nice monthly cashflow.
- Or you sold your latest flip and received the check at closing made out to you.
- Or you helped a seller finally sell their home after it sat on the market for a while with no offers.
The Downs & Roller Coaster
- You don’t evict your non-paying tenant right away and end up with thousands of dollars in
- You don’t define expectations with your partner and you experience internal business struggles.
- You can’t sell your flip because you spent too much or did not accurately calculate the ARV (After Repair Value)
The Benefits of Time Away
It is easy to get caught up in your business, especially when you are working in it for a long time. As the saying goes, sometimes you need to step away from looking at the trees to see the forest. Michael Gerber also describes how business owners should focus on their business, not in their business.
About this time last year, we made the decision to take 2013 off and did not purchase any property. I wasn’t sure at first if this was a good idea. We would basically lose a year of new cashflow and add an extra year onto our eventual mortgage payment, but in hindsight I am so glad that we took time off.
1. A Long Needed Break
Prior to last year, we were investing continuously for several years. This allowed us to build up our portfolio, but also meant that we did not have a lot of free time. Since I work a full time job I work on my real estate business on nights and weekends. So there was always work to do, whether it was looking for or acquiring the next property, oversee the renovations or work to turnover and fill vacant units. This meant sacrificing some nights with friends or weekends with the family. Without actively working last year, I had a lot more time to spend with friends and family as we just had to manage maintenance, not new acquisitions.
2. A Chance to Do Maintenance
We walk through our properties twice a year to inspect and make a list of maintenance needed now or at some point in the future. Because we were not acquiring new property, it was easier to schedule and get some of this maintenance work done.
3. A Chance to Refocus
Sometimes when you are so close to something, you focus on the tactical aspects of your business but don’t focus as much on the big picture strategic direction. Over the last year I’ve been able to learn a lot as well as meet with a lot of new people. I’ve been able to coach several new and existing investors and see what others are doing. This also allowed me time to review our business and make adjustments. We were able to discuss and add a new strategy to our investing and are now full speed ahead in this new year.
4. You Get Your Passion Back
Along similar lines, we all can experience burnout when we focus so much on something. When I started in real estate, I was so excited for each new deal and each new projects. My daughter was born 2 years ago and during her first year, I felt like I was not around as much as I should have been. This started to change how I looked at real estate investing as it was pulling me away from my precious family time. By taking time off, I was not only able to have more family time, but I was also able to add new systems to our business. These new systems allowed our business to focus smoother and without as much involvement, providing more time for family and allowing me to get excited about real estate investing again.
I love real estate investing. It is such a great opportunity to not only build wealth, but to help others and the community. I decided to take a year off from my investing and it not only allowed me to have some personal time, but it also allowed me to make several improvements to our business that will allow even more success in 2014.
Have you ever taken a hiatus from your business? How have you avoided burnout and kept motivated with your real estate investing?
Photo Credit: WanderingtheWorld