I am avid content consumer who is "on the sidelines". Listening to the most recent podcast with Brian Burke, one of the statements struck me about the time period you start- and the time you make that your main career. So a little about me- I am currently employeed in a day gig- climbing the ladder and well compensated. The down side is the gig is a 45-55 hour/week gig.
Like Brandon Turner has said in previous blogs- one of the side ways to make passive income is through buying- or in my case building a business. I have one break even business a homebrew/wine making shop which has led to my second business- a fairly successful brewery. The brewery is on track to be able to almost replace my "day-jobs" income within 2 to 3 years.
The crux of my issue is that time is the new commodity which seems to be shortest in demand. I have a goal of getting into real estate (buy and hold multi-family) to diversify income stream. Based on the successful brewery launch- I also have the opportunity to launch several more breweries with investors already lining up to back me if that is the path a choose. When a single business of this type could generate cash-flow= 30-40 units at $200 dollars a door- which would you do? Would you start down the path of real estate investing or would you spin up more businesses?
Looking for some opinions-
Which road would give you more happiness and personal satisfaction?
It depends how much time each would require? If time is what you find yourself wanting? Either would offer financial freedom, you can but multi families. Put someone in charge and do very little. Does your winery offer you this option? Obviously I and most on here know little about the winery situation. Perhaps you could go into a little detail the time required for you at least.
Alongside answering that question for yourself, consider this question, too: Where is your experience, track record, and success? If you are successful at opening breweries, then by all means, open more breweries. Why on earth would you give up your secure income stream from employment to go out and invest in RE if you haven't proven that model as a winner?
Many people forget about the "WHY". Why do you work? Why do you invest your money into a 401k? Why do you buy stocks? The reason for most is to make money, whether through income for today or capital growth for tomorrow. It doesn't matter at all which vehicle you choose to accomplish this result. If the score is tallied by the numbers that follow a dollar sign on an account statement, then you want to choose the investment vehicle that will give you the highest return on investment. It could be stocks, it might be real estate, heck, it might even be buying a racehorse. What determines the success or failure of your choice is luck, your level of understanding, and your passion for it.
If real estate is a goal simply to diversify, it doesn't have to be a primary business for you. You can acquire real estate while overseeing and building your businesses. Or, like the investors that are lining up to invest in your breweries because of your track record, you might skip active real estate investing altogether and diversify your income stream by investing your money into a real estate fund that is managed by someone with a successful track record in real estate investments. That way, you get both, and there is no fork in the woods at all.
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