Are You 100% Sure Real Estate Investing Is for You?

Are You 100% Sure Real Estate Investing Is for You?

2 min read
Matt Faircloth

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, N.J., is a developer and owner of commercial and residential property with a mission to “transform lives through real estate.” DeRosa creates partnerships to finance select real estate investments and has a proven track record of providing safe, profitable investment opportunities to their clients.

Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to hundreds of units in residential and commercial assets throughout the East Coast. Under Matt’s leadership, DeRosa has completed tens of millions in real estate transactions involving private capital, including fix and flips, single family home rentals, mixed-use buildings, apartment buildings, and office buildings.

Matt is an active contributor to the BiggerPockets Blog and has been featured on the BiggerPockets Podcast three times (show #88, #203, and #289). He also regularly contributes to BiggerPockets’ Facebook Live sessions and teaches free educational webinars for the BiggerPockets Community.

Matt authored the Amazon Best Seller Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money. The book is a comprehensive roadmap for investors looking to inject more private capital into their real estate investing business and is a must-read for anyone looking to grow their business by using private lenders and equity investors. Kirkus, the No. 1 trade review publication for books, had this to say about Raising Private Capital: “In this impressively accessible introduction to a complex subject, Faircloth covers every aspect of private funding, presuming little knowledge on the part of the reader.”

Matt and his wife Liz live in New Hope, Penn., with their two children.

Matt earned a B.S. in Industrial and Systems Engineering with a minor in Business from Virginia Tech. (Go, Hokies!)

DeRosa Group’s YouTube channel

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You’ve decided. You’re sure you want to invest in real estate.

But why?

Without being clear about why you’re actively choosing to invest specifically in real estate, your chance of success looks bleak.

Often I hear wannabe investors say, “I want to get involved in real estate because I hate my job.”

But this is also a job, and one that requires work. You won’t be sipping Mai Tais on a beach on a regular basis anytime soon.

Just get a new job! There are other jobs out there.

Other would-be investors say, “I want to get involved in real estate investing to make money.”

But investing simply to make money isn’t a good enough motivation, because there are days where you’re not going to make money and there are days where you’re going to experience setbacks.

Think instead about what you want to do with that money. College tuition? Retirement? Leave a legacy to your heirs? You need a reason beyond making money that’s substantial enough to motivate yourself to press on in the face of challenges.

Related: Why Investing in Real Estate Just for the Tax Breaks Can Be Unwise (& Downright Dangerous)

Why Do You Want to Invest in Real Estate?

If you can relate to any of the following things, you are making the right decision:

  1. You have a passion for it. You love the creation or renovation process or want to put roofs over people’s heads. There needs to be a facet of real estate that you enjoy.
  2. You’re determined to take back your time. Real estate investing can give you back time—eventually. You can earn income that’s not directly correlated with how much time you put in, as opposed to trading hours for dollars. But you need to understand this isn’t going to happen overnight.
  3. You’re committed to building wealth. And there certainly is a wealth-building factor to real estate. However, it’s not a sprint and there isn’t instant gratification. But over time real estate investing can create millions of dollars for you if you play your cards right, do the right thing, invest in the right properties, and get a little lucky.

Those are three great reasons to invest in real estate. Choose another outlet if none of those apply to you.

Watch my video above to hear a little more about why you should or shouldn’t dive in.

Why are you choosing real estate?

Let me know in a comment.