Personal Development

The No. 1 Investment Everyone Should Make This Year

Expertise: Real Estate Investing Basics, Personal Development, Landlording & Rental Properties, Real Estate News & Commentary, Business Management, Flipping Houses, Real Estate Deal Analysis & Advice, Personal Finance, Real Estate Marketing
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Let’s talk about the number one investment that everyone should be making. 

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Ok guys, so I guess this blog is going to be a little corny because you probably have heard it before. But look, I think that the number one investment that you can make this year is investing in yourself. This is why I think that: The market is at an all-time high, which something I have said in other blogs. Real estate prices have surpassed the levels of 2006, the stock market is at an all-time high, and things are very expensive. There are not many opportunities out there anymore. Trust me when I say this, because I travel around the country a lot. I go to a lot of conferences and events, a lot of real estate related stuff. 

Also, a lot of people are starting to talk about a lack of inventory and not enough supply—that prices are going up and rents are increasing. All of these things make me a little bit uneasy. I’m not really happy because of it, but if you watch CNBC, a lot of the earnings reports are coming out and they’ve all met expectations. The companies are doing well; the economy is in good shape.

Why I Think Everyone Should Invest in Themselves Right Now

Personally, though, my gut instinct is telling me that something is not right. I’m not saying I’m Nostradamus here and I can predict the future by any means, but something is not sitting right with me. 

I’m saying that because of December last year, when the stock market pulled back 10 percent or whatever it was. I started to see a lot of fear in a lot of investors. The first quarter of this year was tough for our company, because a lot of people were on the sidelines. They didn’t want to invest, and they didn’t want to buy real estate. And that was just after a small decline, even though the market has boomed for the last 10 years. The fact that a small stock market decline can cause fear among investors, where everyone freezes, is very interesting to me. These are things that you need to be careful of. 

Related: Should Real Estate Investors Sleep Soundly Despite Stock Market Scaries?

So, why do I say invest in yourself? Because information equals power. The more you know, the more powerful you are. I know it’s corny, but it is the truth. I have been very tunnel-visioned when it comes to real estate investing. It’s my bread and butter. I love real estate, and it is my passion. It’s all I have done, but a lot of other investment vehicles out there can offer some fantastic returns. 

I think that as real estate investors, you have to remember the word “investor.” An investor can invest in stocks, oil, and gas, and in other businesses, right? So, I think that you should expand your horizons. You should know more investment vehicles out there than just one. You should look at potentially diversifying.

white main behind window sitting at table with phone and tablet and inquisitive expression

They say that the average millionaire has five different streams of income: real estate, royalties, dividends, and business. These are other vehicles to generate passive income or lump sum capital gains or cash. 

So, invest in yourself. Attend various events, network with people who are reputable in their respective industry. Your network equals your net worth. You can’t stop learning. And I love the saying, “If you’re not green and growing, you’re ripe and rotting.”

There’s always something to learn. Be the dumbest guy in the room; that’s something I always say. I’m not the smartest guy out there. I quit school at a very young age and have no formal education, but I’ve always brushed shoulders with people who are where I want to be. Then, eventually you pick up a few things. 

Related: The Big Advantage Real Estate Investing Has Over Stocks

Something that I’m doing this year is still doing some deals in the Midwest. I think there are a lot of opportunities here. The market hasn’t fully recovered, there are a lot of foreclosures, and I truly feel like a kid in a candy store here. So, check out the Midwest!

But invest in yourself. Buy a book on stocks or anything, and expand your horizons. Then, just wait and see what the market is going to do or where it’s going to go and then you can pull the trigger, invest, and make some great gains. 

Where do you think the market is headed? Are you investing in yourself? 

Comment below!

Engelo Rumora, a.k.a."the Real Estate Dingo," quit school at the age of 14 and played professional soccer at the age of 18. From there, he began to invest in real estate. He now owns real estate al...
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    Caren E. from Baldwin, Maryland
    Replied about 1 year ago
    Nice post.
    Engelo Rumora Specialist from Toledo, OH
    Replied about 1 year ago
    Thanks so much Much success
    Jared Garfield Rental Property Investor from Montgomery, AL
    Replied about 1 year ago
    Engelo, I always love your blogs and vlogs. You are engaging and interesting to listen to with enthusiasm and great energy! We need to catch up soon. It's all about having reach into multiple markets and knowing where each market is in the market cycle. I've recently slowed down a litle in Montgomery, AL but I've picked up a lot of properties now in Columbus, GA where we are getting great returns. Know market cycles and how much room there is to go up. I love investing in multiple income streams, but I will say that it's great to master one and have it really succeeding. In single family real estate I would get at least $36,000 a year in passive income coming from at least 8-10 properties before you expand into a different type of business or asset class. When I worked with Rorbert Kiyosaki's team, he always said, "Investing isn't risky, but investors are." Making sure to really know the businesses, paper assets or real estate you are investing in is critical to having success. Thanks for being my favorite Australian, well actually I kind of like Nicole Kidman, so maybe my second favorite Australian!! Let's talk soon, thanks for making great points!!
    Engelo Rumora Specialist from Toledo, OH
    Replied about 1 year ago
    hahahaha Thanks Jared. You are a true gentleman and professional. I always enjoy your company. Keep doing great things and I'm sure we will catch up again soon. Take care mate
    Kim Greenwell
    Replied about 1 year ago
    This is so TRUE; WE must invest in OUR self daily!
    Engelo Rumora Specialist from Toledo, OH
    Replied about 1 year ago
    The safest investment is always in yourself. Much success
    Kim Greenwell
    Replied about 1 year ago
    I'm a NEWBIE to this "WORLD" BUT I'm focusing on paying off ALL my stupid debt; SO next year I will be ready to purchase my 1st tax lien property.
    Engelo Rumora Specialist from Toledo, OH
    Replied about 1 year ago
    Keep the dream alive Kim, I wish you much success
    Amanda Fulmer from Demorest, Georgia
    Replied about 1 year ago
    As the wisest of wise said, "Be fearful when others are greedy and greedy when others are fearful." Warren Buffet Great article!!
    Engelo Rumora Specialist from Toledo, OH
    Replied about 1 year ago
    Thanks Amanda, Love Warren Buffet quotes :)
    Derrick Gambrell
    Replied about 1 year ago
    Great post! Thanks
    Engelo Rumora Specialist from Toledo, OH
    Replied about 1 year ago
    Thanks for reading
    Carole Gomez from Durango, Colorado
    Replied about 1 year ago
    You said “five different streams” but only named four
    Larry Ross
    Replied about 1 year ago
    Nice!!
    Adriana Odio
    Replied about 1 year ago
    Knowledge is power... Thank you!
    Michael Casile
    Replied about 1 year ago
    Good information. Tunnel-vision is an easy rut to fall into. Where I am, one cannot buy a home in the open market, fix it up, and rent it for a profit (unless one does all fixups themselves, and does their own PM). We are finishing up a nice off-market deal ... but we've not invested remotely yet. I've seen folks do it with great success, but it does sometimes keep one up at night thinking about it. Fortunately for me, my partner (also my son) has far more entrepreneurial spirit and knowledge (and reads ravenously). Long before Buffett made his comment, Rockefeller said, "The time to buy is when the blood is running in the streets."
    Bob Johnson
    Replied about 1 year ago
    Absolutely agree that the best investment you can make is in learning....and it does not take money....unless you remember that "time is money". There are many sources of knowledge that don't require money. Who is the "they" that say most millionaires invest in many areas? Many multi-millionaires put all their eggs in one basket and then devote all their time taking care of that basket. You can invest by buying rental properties. Having a business that manages rental properties. Lending money to real estate investors. Flipping properties. Brokering real estate. Teaching real estate investing. Syndicating real estate ventures. Writing and selling books on real estate investing and on and on. Having multiple streams from one area, in my opinion, makes more sense than losing focus by fishing in other waters.
    Mark Waldrip Investor from Oklahoma City, OK
    Replied about 1 year ago
    Thanks for the click bait.
    Engelo Rumora Specialist from Toledo, OH
    Replied about 1 year ago
    You welcome Thanks for reading :)
    Robin Peters
    Replied about 1 year ago
    This year, for a first, I decided to spend time learning about finances, the stock market and real estate market. Last couple of weeks have been frustrating since I was ready to "invest" and quickly learned that maybe it's not the right time, waiting seems frustrating, it almost feels like failure. I got really excited house hacking and buy to rent. Quickly found out buying houses where I live in the Netherlands, housing prices surpass rent by far. Guess I am going to be practising patience and gratitude for a while... Love the article;)
    AMANDA S. Rental Property Investor from Seattle, WA
    Replied about 1 year ago
    You mention investing in the Midwest, but you didn't say where? What cities and states are you investing in? Where are the foreclosures located? What's your cap rates on those investments? Thanks!