When I was starting my real estate business I did not understand why businesses reinvest money back in the business. I thought once you start making a profit why not buy you things that make you happy? What I learned was one property will not make you rich.
You need scale to really enjoy the fruits of your labor. You need two things to scale in my opinion : 1) knowledge 2) manpower. One of the ways , get knowledge and manpower is to pay for it.
I spend all of my money on education (subscriptions, seminars, and mentorship) and employee wages. The knowledge and having people works for me really lets me grow faster in the real estate industry then I would have if I tried to do everything by myself. By paying different forms of education I am able to speed up the learning curve. By outsourcing activities to employees I am able to buy time and have more time to learn, do things I love, and hangout with people I love. In both instances we are saving time which is more valuable than money. Time is more valuable than time because we know how much money we have at any given time, but nobody knows how much more time we have.
We reinvest everything in our business because we understand that legacy is more important than money. And legacy needs to be invested in before it matures.
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