Successful real estate investor AND minimalist? Possible?
Hurst, TX · Member since 2016 · 192 posts · 114 votes
Successful real estate investor AND minimalist? Possible?
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Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
9ySteven,
Your post reminds me of what Dalai Lama said "A simple life is a happy life." I've been thinking of how to spend the next 30-40 years of my life if god is willing. I want to simplify my life, but when you're married with a child, you have family obligations. Fortunately, you still have choices. Would you rather own 10 free and clear properties or 40 properties at 75% LTV? It depends on what stage you are in your life. Do you want to build wealth to pass down to the next generation, or do you just want a simple life for yourself? Do you want to be beyond comfortable so you can help out your parents and your in-law parents in their old age?
To me, having a property manager managing all of your rentals would free up your time to do what you love and/or spend all the time you want with your beloved ones. It comes at a cost, but it's well worth it IMO. The goal is to get there first. It takes hard work and dedication. It's a process to get there unless you're one of the lucky few who hit the lottery.
Once you have the ability to live the life you want, you have options. You could do things at odd hours as you don't have a job to go to. You'd be a cool dad who could take your kids to school and pick them up without feeling rush to get back to work. You could take them to the park after school or an arcade for them to play games. It's a very different life at a minimal cost.
You don't need to have a boatload of money. It's about having free time, the most precious commodity money can buy. You don't have to own a lot of expensive toys or dine at the finest restaurants to feel content. You just want to own your time. There's nothing like being able to live in your own way. I wish you the best of luck on getting there.
Cheers!
43 Replies
- 9yDave Van HornPro MemberFund Manager · Wayne, PA · Member since 2009 · 1k+ posts · 1k+ votes
Although I don't truly consider myself a complete minimalist, I have definitely felt like one over the years at times in terms of lifestyle. And I've definitely felt like one while having owned well over 10 properties. I think being a minimalist is more of a state of mind. Not to mention, having a property manager helps.
But I think there is something to owning a lot of hard property and feeling some sort of burden. It's probably one of the reasons why I've leaned more into performing note investing over - no tenants, toilets, or townships to deal with. You're just dealing with the paper behind the property. Much less stressful in my opinion. And they can all be managed by a servicer, so my monthly (and yearly) accounting statements along with my checks are sent to me by mail. But hey, I still own property to this day so I think it's all about finding that balance.
Best of luck,
Dave
- Hurst, TX · Member since 2016 · 192 posts · 114 votes9yDave Van Horn thanks for the info. I see minimalism as getting rid of the unimportant things in life so you can dedicate more time to the important things. I guess real estate can be one of those important things eh?
- Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes9y
Steven,
Your post reminds me of what Dalai Lama said "A simple life is a happy life." I've been thinking of how to spend the next 30-40 years of my life if god is willing. I want to simplify my life, but when you're married with a child, you have family obligations. Fortunately, you still have choices. Would you rather own 10 free and clear properties or 40 properties at 75% LTV? It depends on what stage you are in your life. Do you want to build wealth to pass down to the next generation, or do you just want a simple life for yourself? Do you want to be beyond comfortable so you can help out your parents and your in-law parents in their old age?
To me, having a property manager managing all of your rentals would free up your time to do what you love and/or spend all the time you want with your beloved ones. It comes at a cost, but it's well worth it IMO. The goal is to get there first. It takes hard work and dedication. It's a process to get there unless you're one of the lucky few who hit the lottery.
Once you have the ability to live the life you want, you have options. You could do things at odd hours as you don't have a job to go to. You'd be a cool dad who could take your kids to school and pick them up without feeling rush to get back to work. You could take them to the park after school or an arcade for them to play games. It's a very different life at a minimal cost.
You don't need to have a boatload of money. It's about having free time, the most precious commodity money can buy. You don't have to own a lot of expensive toys or dine at the finest restaurants to feel content. You just want to own your time. There's nothing like being able to live in your own way. I wish you the best of luck on getting there.
Cheers!
- Real Estate Investor · Shelton, WA · Member since 2013 · 369 posts · 639 votes9y
@Steven C. Suarez You can definitely do both! Its been the plan i've been working on for awhile now. I spent most of my adult life deployed, living out of a bag in third world sh@tholes. Came back to the states and tried doing the normal "responsible adult" thing. A house with rooms that i don't ever go in, filled with stuff i don't use/need. I hated it. Couple years doing this now, I've got rentals that pay my bills, flip a few houses a year cause i dig it (and big checks!) Im currently house hacking, while getting started this spring on the end game.. my tiny house trailer! Getting all my REI systems automated and once that happens, i wanna be the "homeless houseflipper" lol
If you want to live the minimalist lifestyle through real estate, you can definitely do so; comfortably and with other people paying for it! Good luck man
- Hurst, TX · Member since 2016 · 192 posts · 114 votes9yMinh Le good points. And having a family does make things more challenging. I'm currently clearing out my garage and boxing everything I don't need and taking it to goodwill. We moved from a 4br 1800sf house to a 3br 1500sf house during our house hack. It's smaller but we love the location. And it's making us clear out the stuff we don't need cuz it literally doesn't fit! I've never had a storage unit in my life and I refuse to get one. I'm even leery about getting a storage shed for my backyard. I figure if I can lower my "magic number" then I'll get there quicker! 🙏 namaste! 🤗
- Hurst, TX · Member since 2016 · 192 posts · 114 votes9yLloyd Stanton thanks for sharing your story. Living life, traveling 3rd world countries. Amazing experiences. I've always heard investing in experiences and travel is far more rewarding than investing in "stuff." Working at an airline, I've done my fair share and I fly out as often as I can cuz the world is my greatest teacher. You've probably heard the "aren't you afraid to go to that place?! Be careful! Watch out for terrorists or drug cartels!" Most people spend life on a couch watching 24hr news afraid to go to the corner store because their brainwashed. But once you travel your eyes and heart really opens up like never before. But you already know that. I'd love to retire and spend lots of time at the beach. In the mountains. Traveling to far away cities. Making a difference in the world. And continue to grow as a person. Hopefully real estate helps me and my family get there. And I won't be bogged down by useless "stuff."
- Real Estate Agent · Denver, CO · Member since 2014 · 151 posts · 101 votes9y
This is a great thread. I struggle with this as well. We are not close to financial independence yet, but I'm always concerned about greed getting in the way of really being financially independent. By that I mean, continuing to accumulate wealth beyond whats necessary for me and my family. I hope that when we get to a point where we don't have to work for a wage, we will be content. Having a minimalist mindset would definitely help you be content.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes9y
Absolutely. Other than maybe some place to store materials, rather than tossing everything to the curb because you want it out of your life, and some tools (if you do any of your own work), your rental properties and your personal life doesn't have to mix. You can easily maintain this with some kind of off-site paid storage facility that becomes just another business expense.
Skyline Properties - Hurst, TX · Member since 2016 · 192 posts · 114 votes9yBillie Miller I can see what you mean. A lot of the podcasts people talk about getting addicted to real estate and wanting to do more and more, bigger and bigger. Apartment complexes. Commercial. Subdivisions. Etc.. maybe a stopping point is just as important, if not more so, than a starting point.
- Hurst, TX · Member since 2016 · 192 posts · 114 votes9yJd Martin good advice. I started listening to a minimalist podcast and one of the guys on their said that craigslist is his storage unit. When he needs a chainsaw he buys it off craigslist. When he's done with it he sells it back to craigslist. Sounds like a cool idea. And I love craigslist! 😀
- Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes9y
Thank you for starting this @Steven C. Suarez
While not an off-the-grid recluse minimalist, I don't bother having a fancy phone, driving a nice car, having designer clothes or living in the fanciest house.
We had a tragedy recently in my extended family and I have to attend a double funeral for my aunt and uncle this weekend. There were killed in a car accident Dec 27th. We (the frumpiest, beater-driving member of the fam) were the first to be able to offer financial assistance and not blink.
Last night my high-school son was commenting on his best friends' family being kind of hard to get a hold of. They don't value smartphones (or cell phones hardly) or being in touch constantly. They are different, like us.
He also was quick to note they are the only folks we know here that have a paid off house. He then noted we are the only ones we know with that +. I think he's getting it. Keep the important things important. Thanks again for bringing this up!
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes9y
Originally posted by @Steven C. Suarez:
Jd Martin good advice. I started listening to a minimalist podcast and one of the guys on their said that craigslist is his storage unit. When he needs a chainsaw he buys it off craigslist. When he's done with it he sells it back to craigslist. Sounds like a cool idea. And I love craigslist! 😀
I like CL too but that is a strategy that requires a lot of time, unless you're only going to use an item once. Every time you need an item you have at least two transactions involved, and that's assuming you don't chase any bad leads. You might just as well go the rental yard if you want to go that route. I like saving money, but I value my time too heavily to spend it constantly dealing with the same items on CL.
Skyline Properties - Rental Property Investor · San Diego, CA · Member since 2013 · 47 posts · 40 votes9y
You can be both, by applying the concepts of minimalism to your real estate business. For example:
Keep electronic copies of whatever you can, have your tenants pay rent online, minimize clutter and keep in your home only what you need. For me that's sets of keys, a few 10-pocket binders (one or two for each property), and a small toolbox.
Aim to have fewer, but better quality properties/tenants, and have systems in place to deal with any issues that may come up. This will minimize the property maintenance you need to do. Or hire a property manager.
Extra construction material from rehabbing stays in a plastic shed/bin on the property (paint, extra tile, etc.) or immediately goes on Craigslist or is returned. No need to store the old grungy hardware in case you need it for something later, that goes on Craigslist free stuff or the dump.
- Realtor · Raleigh, NC · Member since 2015 · 65 posts · 48 votes9y
@Steven C. Suarez I think that the idea of minimalism and having 10 or more properties can coexist! The great thing about minimalism, in my opinion, is that it is what you make it. It's not just about getting rid of stuff, but letting go of that which you no longer need, use, or find value in. If your rental properties (whether 1 or 10) aren't bringing you the value you need in your life then yes, downsize. Otherwise, find other areas of your life to apply the idea.
- Hurst, TX · Member since 2016 · 192 posts · 114 votes9ySteve Vaughan thanks for the post. And so sorry for your loss! I know what you mean by living frugal, I cut the cord on cable years ago. I have a modest house and 2 vehicles, an 89 Toyota pickup and a 2004 trailblazer. Paid off and still run great! I'm almost 40 and I see friends my age shed their starter homes and jump into McMansions and buy new expensive cars and even post their toys on craigslist. I know they're not rich because they make the same as me but they get deep into debt for these status symbols and live like they're rich with both spouses having to work overtime to pay for it all. My wife doesn't work and I'd love for her to stay home and be there for our kiddos. Reading the books suggested on BP has really opened my eyes to the keeping up w The Jones's trap and I want nothing to do with it. In the house hacking/hunting phase I'm currently in, I've intentionally not pursued good deals that consist of buying a HUGE house for a discount out of fear that I'd fill all that extra space with junk I don't need. I guess I just see minimalism as a great way to live and freeing to our minds and soul.
- Real Estate Agent · Denver, CO · Member since 2014 · 151 posts · 101 votes9y
@Steven C. Suarez sounds like we have a very similar mindset! I stay home with our kids, but we have had to make some sacrifices to make that happen. My husband earns a decent income, but we live in Denver, which is really expensive. So we only have 1 car, which is paid off. When it's warm out, my husband rides his bike or drives his scooter to work, or I walk to the grocery store or library with the kids. We don't go out to eat all the time, don't have cable, don't go shopping when we are bored, etc.
After having lived like this for a while, we find that we don't even miss the "sacrificed" things. We spend a lot less time maintaining cars, since we only have 1. We spend a lot less time looking for things and cleaning the house, since we don't have much stuff.
Back to your original post though, I think creating a passive income stream is probably less time consuming than spending 40 years working at a W2 job.
- Spokane, WA · Member since 2016 · 14 posts · 3 votes9y
@Steven C. Suarez Great post and replies. What podcasts and books you like for minimalism?
- Contractor · Cincinnati, OH · Member since 2015 · 92 posts · 75 votes9y
@Steven C. Suarez Great topic of discussion! This reminds me a lot of the Mr Money Mustache blog. He has a very similar mindset. He and his wife retired in their early 30s after saving up 600K and live off the stock dividends. They spend less than 25K every year but still live a fun lifestyle (traveling several times a year, woodworking, exercising, buying more expensive healthy food). When he really breaks it down, it makes it seem very doable.
I think minimalism can definitely happen with rental properties. I still like having a large tool collection to take on rehab projects. I get a lot of value in that. And I can't tell you the number of times I've had to let my contractors use my tools because they didn't bring what they needed. Nothing kills the momentum on a project quicker than not having the right tool to do the job.
I like the idea of having a tiny house trailer with a 2-3 car garage next to it where I hold building materials, tools, trailer, etc. All those trips to home depot and lowes is a huge waste of time.
- Rental Property Investor · Orange County, CA · Member since 2014 · 49 posts · 80 votes9y
Great topic.
I find as I achieve the ability to buy the things that I thought I would want "someday when I could afford them" I no longer value or want them anymore...
On Minimalism my favorites are:
www.mrmoneymustache.com/
http://www.theminimalists.com/
Enjoy.
- Hurst, TX · Member since 2016 · 192 posts · 114 votes9yRene Guerrero I hear Joshua Becker is good. I currently listen to "The Minimalists" podcast. I'm a newbie so I'm sure I'll discover more! good luck!🍀
- Spokane, WA · Member since 2016 · 14 posts · 3 votes9y
Originally posted by @Steven C. Suarez:
Rene Guerrero I hear Joshua Becker is good. I currently listen to "The Minimalists" podcast. I'm a newbie so I'm sure I'll discover more! good luck!🍀
Thanks! Will check them out
- Rental Property Investor · Knoxville, TN · Member since 2011 · 701 posts · 531 votes9y
Originally posted by @Account Closed:
@Steven C. Suarez You can definitely do both! Its been the plan i've been working on for awhile now. I spent most of my adult life deployed, living out of a bag in third world sh@tholes. Came back to the states and tried doing the normal "responsible adult" thing. A house with rooms that i don't ever go in, filled with stuff i don't use/need. I hated it. Couple years doing this now, I've got rentals that pay my bills, flip a few houses a year cause i dig it (and big checks!) Im currently house hacking, while getting started this spring on the end game.. my tiny house trailer! Getting all my REI systems automated and once that happens, i wanna be the "homeless houseflipper" lol
If you want to live the minimalist lifestyle through real estate, you can definitely do so; comfortably and with other people paying for it! Good luck man
The homeless house flipper... I totally dig it. My lady wouldn't go for it but if we don't work out I've already decided I'll move out of my duplex and live out of a van.
- Real Estate Agent · Manitou Springs, CO · Member since 2016 · 4 posts · 2 votes9y
The Minimalists have a documentary that you can watch for free if you have Netflix. I believe it's just called Minimalism.
- Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes9y
Yes! The whole reason I'm a real estate investor is to be a minimalist. Most people have to go to work to be able to afford their basic needs; even the average panhandler has to show up at their corner for a few hours a day to pay for food and shelter, but as a real estate investor, you only need to work MAYBE 10 hours a month. The time commitment is the biggest aspect of minimalist living, IMO.
Starting out, your 5-10 properties might seem counterintuitive, but once your margins are high enough, you can hire others to do the work for you. You'll always have to verify their numbers, but that's a quick process, provided you hire people who are trustworthy and capable.
When I was in the Marines, I once spent a month in the Moroccan desert and we just dug beds in the hot sand, ate cold military rations, and bathed in the Atlantic, which is the most minimalistic that I've ever lived, but it was also one of the simplest and most joyous times of my life. Some day I aspire to that level of simplicity again, and I truly believe real estate is the best avenue to reach that goal.
- 9ySonny RuckstuhlPro MemberInvestor · Reno, NV · Member since 2013 · 39 posts · 41 votes
@Steven C. Suarez Our kids are both moving out and we have extended the idea of minimalism to both of them (at least the early indications are such).
Looking to do real estate to both supply funds for a lifestyle, but keeping the lifestyle simple helps keep the real estate needs low which reduces stress.
And, my wife and I are both interested in supplying good, safe, affordable, and quiet places to live for people who are in the rent by necessity phase of existence. We have both been appalled by the condition of rental properties we have looked at (closing on 2 this month) and the pure greed and selfishness of other landlords. Both of our W-2 careers involve a lot of the types of people we will be renting to and this "why" helps keep us focused that this is not about money. It is about a service for us.
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