None of this is really new news, but it certainly can’t hurt to remind everyone out there why we get into this crazy world we call real estate investing. I mean, it’s not the easiest industry out there (mostly because not one of us probably grew up getting any education in it), and it can be risky and complicated.
So why do we do it?
Here are the 4 reasons I think everyone should invest in real estate — assuming you have the guts to do it.
When’s the last time you heard that leaving all of your money in a bank account was a good idea? Definitely not in the last several years where the interest rates are about 1% or less. There’s no point in that — you aren’t making any money. Maybe you are investing in stocks or CDs or mutual funds or something, but how long has it been since those have really worked out that well for you? Either way, it never hurts to diversify up your funds, not only for protection but for figuring out what avenues produce the best returns.
For some ungodly reason, people feel better about investing in stocks rather than real estate. When was the last time you had any bit of control over your stock investment? Never. You can’t control anything with it. You are at the mercy of the company or stock you have invested in, and you don’t have a single say. No control.
But with real estate, you can control a lot (shout out to all my fellow control freaks!). If something isn’t working with a property you have invested in, you can do something about it. Change things up, make adjustments, whatever you need to. You can do things about it! My property manager has sucked on more than one occasion — I fire him and hire a new one! A flip gone wrong? Well, I have no idea how to fix that, but at least the decisions are yours, and you aren’t relying on someone else to determine the worth of your dollar. You can boss people around, you can make changes, you can buy or sell something — you have some control over the situation when you own real estate! You might not be able to make up for every problem with a real estate investment, but at least you can make choices around it.
Stress aside, you can (and should) have some fun in this industry. It’s like exploring new territory. If you are a serial learner or entrepreneur like I am, this industry is gold! There are so many things to explore, most of which you’ve probably never explored before because no one taught us any of this in school, and more than anything else, you can really make your work in this industry whatever you want it to be. There are so many different ways to invest and things you can do with investments and business models you can build out of it — the sky is the limit, and you can choose how you want to float through it!
Oh, well, and the obvious reason to get into real estate investing. You really can make a lot of money in this industry. Yes, you are at risk for losing money, but if there weren’t some kind of risk, everyone would do it. The risk is part of the excitement. But implement some risk mitigation, get educated, learn the options, and pursue the aspect that calls to you the most, and you are really in a good place to potentially make a lot of money! Where else can you make so much money? Maybe a super high-paid job, but if you don’t have one of those already, where are you suddenly going to get one? There are so many ways to make money in real estate investing, enough ways to fit all types of people and personalities and skill levels, so why would you not invest? Sure, fear can be a thing, but what’s the worst that’s going to happen?
Come on, are you motivated yet? If you aren’t just by knowing those things, maybe REI isn’t for you. The keys to doing it right, once you have your motivation, are to get educated and research and learn a lot about what you are trying to do so that you know what to watch out for and how to mitigate risk. After that, it’s all about following what is natural for you and knowing that “failure” is not only OK, but it’s the first step to bigger successes.
Experienced investors: Why do you invest in real estate? Newbie investors: What has you interested in real estate investing?
Let’s hear from everyone!