Why did you choose REI over other business plans?

Question

I'm curious what made you decide to get into REI.  Was it your original dream career?  Did you try other businesses before becoming an investor?  Did you want something "passive" that would supplement your current 8-5 job?

I've always wanted to start my own business.  I keep coming back to REI.  There are many things I enjoy about RE.  I love looking at it, talking about it, reading about it, etc..., but I still haven't committed to it 100%.  I still wonder if this is the best way to focus my time and energy or could I be more successful in another "traditional" type of business.

When you think $100 - $300 a door a month, it doesn't sound like much money on one hand, but on the other hand you have a steady monthly cash flow, hopefully an appreciating asset, tax benefits, etc...

I guess my question is, for the people that fully committed themselves to investing in real estate, what made you choose this path over another?

Aaron Mazzrillo · Answer

I can't remember if I was interested in real estate when I was younger. Possibly, because I purchased Trump's book Art of the Deal when it was first published in 1987. I didn't start buying properties until 12 years later and that was only on the advice of my CPA to offset the income I was getting as a sales slave at a corporate job.

After buying a few rentals, seeing the potential of both passive (rentals) and active (flips) income, I started studying the business more seriously and decided to go full time only a few years later.

I think being a real estate investor can be a hobby, but it is so much fun adopting it as a lifestyle. There are so many opportunities available every day. No matter what happens with the market, I have always found someone needing to sell and another person looking to buy.

With a portfolio of well purchased rentals and a few long term notes, I have essentially captured the tiger by the tail. I can do what I want, when I want, for as long as I want. For me, real estate was the fastest way to find freedom in this un-free world.

James Vermillion · Answer

I always wanted to have a business of my own and real estate is a timeless business which allows one to adapt as times change.  Additionally, I serving in the military limited the amount of time during the day that I could contribute, limiting my choices to begin with.  Real estate met all the requirements I had, providing flexibility, adaptability, and the opportunity to prosper.  Basically, real estate was the right business at the right time for me, and I love every day of it!

Will Barnard · Answer

You are looking at RE investing through a narrow hole. Landlording and getting $200 per door in cash flow is not the only means to RE investing. There are many other facets to it.

I got into it because it was a passion of mine to do so and I finally found a way to pull the trigger.

Flexability, freedom, no limit to how much you can make, no boss telling you what to do, active+passive options, and so much more is what attracts me and lots of others to this.

In fact, if you like at many financial studies, the largest portion of the rich got there through RE investments, more so than inheritance, stocks, hard work, high paying jobs, etc.

John Bowen · Answer

I grew up with Mom being a realtor and her owning many SFR. When my business started doing well I used profits to start investing in real estate. As an investment vechicle I understand it. No matter what happens to the value it's real, there, and you can go jump up and down on it instead of watch zeros drop from an account screen on the computer.
 That and I love to get a screaming deal on something and turn it into positive cash flow. It's our long term retirement program as well.

Jason Grote · Answer

My wife and I were self-employed for 7 years before moving into REI. We were slaves to our former businesses. REI has freed us up and took the limits off of our income potential.  Real Estate, to be full time, has to be a passion.  I believe that you have to enjoy it or you won't make it.

Ken Latchers · Answer

Ignoring the get rich quick pimped by gurus, I think REI is the perfect business:

- You don't have to quit your day job to do it.
- it is scalable.
- It is a business that doesn't require employees (you will understand if you have a few).
- When you own the property, it doesn't lose all of its value like a stock investment in a company can
- It is an inflation hedge (my understanding is that the only main general investments in the Great Depression that held their value beginning to end, were gold, real estate and TBonds).
- You build equity (paying off mortgages), 
- It is a better leveraged investment than things like commodities trading.
- As others said, I believe most average people's wealth came through real estate (and perhaps their own business, which this is also)

Jon Klaus · Answer

Permanent recurring revenue.

Don Konipol · Answer

Real estate can be an investment, a business, both or a combination.  With me it's my business and my investments; for many years it was just an investment with my business being in the automotive service industry.

It's this flexability that makes real estate so appealing.  It can fir into many lifestyles, experiences and interests.

James H. · Answer

There does not have to be an all or nothing mentality. RE is a part time venture for probably most people involved in it. Also, RE is an integral *part* of many businesses. For example, McDonald's has some of the best real estate around. That didn't happen buy accident. Even if they stopped selling burgers, they could use those prime pieces of land to other purposes.

I think for a lot of people, myself included, real estate is just something we feel more comfortable with because it is more familiar to us in general. If you buy a house, you are a lot farther along the path to becoming a real estate investor than you are to being a huge restaurant chain operator if you buy a hamburger.

I'm not a full time investor, so my response may not be helpful to you.Just tossing out my .02.

Account Closed · Answer

In a way REI chose me.  My wife had some real estate and we added to it over the years.  I invest in RE because of the greater control, because I enjoy watching ugly properties take on new life and because it has proven away to grow wealth.

It's easy to forget that there is more to real estate tan cash flow or appreciation.  You also have a tenant that is monthly paying your mortgage and building equity in the property.

Why did you choose REI over other business plans?

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