Why do you invest in real estate?

General Real Estate Investing

Why do you invest in real estate?

Jared Cauffield

Rental Property Investor · Columbus, OH · Member since 2017 · 42 posts · 16 votes

Whats up BiggerPockets!

I have a question for you all:

Why do you invest in real estate?

I want to hear from all the investors on here and learn what is the biggest driver for real estate investors.

I think one of the biggest keys to discovering success in what ever you do is discovering your "Why." I think knowing this ultimately helps you set meaningful goals, develop a plan of action and drive your overall success.

I know for me starting out in real estate it was a lot about building short-term wealth but as time has gone by I realize that real estate investing can be much more rewarding as a long term wealth building strategy.

So, why do you invest in real estate?

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JD MartinBusiness Member

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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

9y

I've got nothing better to do, and I enjoy dealing with abusive tenants and dishonest contractors! :D

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Cheryl Butler
Professional · Delaware, OH · Member since 2017 · 52 posts · 39 votes
9y
Because it's fun! I am a commercial real estate asset manager by day, so investing in my own residential rentals is sort of my alter ego. The return is much higher than mutual fund investments, and it's MUCH more interesting. And I love houses :D Managing other people's assets is a rewarding career, but office space is my job, and homes are where my heart is.
1 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
9y
Money is mainly what I am looking for, but more specifically enough passive income to be free from an 8-5 job. Of course that opens up the next question, which is how much money do I need to be happy or comfortable.
2 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
well for me its not really about investing in real estate its selling real estate and helping others invest in real estate. The family stuff sounds nice but its not reality.. the kids grow up they usually don't want to spend time with the parents LOL.. and usually have their own interests and pursuits..
Although since I started at 18 I know no other life.. so its just a lifestyle I like moving money and creating opportunities for other investors.. who in turn have their own dreams and wish's and they help their communities.. the by product rehabbing shabby homes is just that... but at the end of the day most everyone is doing this for the income and the ability to pay the bills.. For me I need to work everyday.. if I did not I would be board silly does not mean 9 to 5 my hours are more like 6am to 8pm... 7 days a week.. but like I said its a lifestyle. If I can take a few hours to run my plane around the northwest or take a nice trip that's great too.. now its about the grand kids.. And moving to cash ..
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David Faulkner
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
9y
Because I really like RE (always have) and it affords me a nice lifestyle that I enjoy, and definitely in that order.
1 Reply
Ned J.Pro Member
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
9y
Because my career as a pole dancer isn't working out as well as I though it would and its not paying my bills.... :)
1 Reply
Kyle Collette
Investor · Columbus, OH · Member since 2016 · 112 posts · 79 votes
9y
@Jared Cauffield
I love this question - actually have written down my WHY on a paper right on my desk at my home office; never ceases to spark desire!
For me, there is so much to go off of, but I will list a few:
1) A passion for real estate - I love learning about it, talking about it, and doing it.
2) Be your own boss (B&I, not E&S)
3) Financial Freedom for my wife and I (ability to pursue other interests without a need for financial support from those endeavors
4) To help others reach goals (if that is financial or otherwise - we love supporting missionaries and hope to be mid-to-long-term missionaries ourselves someday)
2 Reply
Atul Mohlajee
Oak Park, IL · Member since 2014 · 285 posts · 114 votes
9y
It is a side gig and extra income for me. I like the idea of tenants paying my mortgages and still having a cash flow. It is an extra stream of income that can be used for emergency or fun.
2 Reply
Mike Nelson
Investor · Oak Park, IL · Member since 2014 · 316 posts · 150 votes
9y
I can make a lot of money, put other people's money at risk and become president.
1 Reply
MIchael Rickerd
Flagstaff, AZ · Member since 2016 · 44 posts · 60 votes
9y
I gotta lot of mofo's to prove wrong!
But in all seriousness, I am not into REI directly for the money, or the prestige, or the financial security. Sure, these are natural byproducts of doing what we all do, but I am really, truly into REI for the experiences of life.
Whether that experience is sitting on a beautiful beach with my wife, or if that experience is fixing a leaky faucet in one of my rentals, or renting to upstanding, wealthy, Class A tenants, or dealing with a low income, but hard working tenant, who is having temporary financial issues.
All of these things are experiences to me, both good and bad, desirable and undesirable, but experiences nonetheless. And to me, that is what life is truly about.
1 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
9y
Originally posted by @Account Closed:

I was booted out of the International Physicist's Consortium because I theorized that the quantum wave length of cobalt 7 added to the instability of the linear mass of Wall Street's hyper volatility leading to the melt down in 2008. So, I had to go find a job and real estate investing was the only one that would have me after such a shameful rejection of my assertion.
Yikes! Goes to show this racket will take anyone, even disgraced wall street physicist theorists 😂
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Nolan O.
Investor · Tracy, CA · Member since 2015 · 58 posts · 13 votes
9y
I have a SMART goal related to early retirement, or at least the option of it. My strategies have been built around that. Time with my family is a big driver. But if I'm really honest, it's also about proving myself, both to myself and others I look up to. So, yeah. Family and ambition.
1 Reply
Brian Becker
New to Real Estate · Alexandria, VA · Member since 2017 · 10 posts · 3 votes
9y
For me it really starts with the motivation and drive to do things bigger than oneself. I focus on the ability to one day give back to my community through giving to charity, helping my local church, and providing for my future kids. Making an impact on others while having my own financial freedom is what actuates me to invest in real estate.
2 Reply
Marcus Johnson
Investor · Saint Paul, MN · Member since 2015 · 663 posts · 512 votes
9y
I invest in rental property for the sake of my family and my children so that one day when I no longer need to work my W-2 job I don't have to touch my Roth IRAs and they can be passed down to my children and if they don't want to use and we can be passed on again and the potential for millions and millions and millions is possible and all tax-free.
2 Reply
Joe Kim
Rental Property Investor · SF Bay Area, CA · Member since 2014 · 352 posts · 543 votes
9y
In 3 words, "The American Dream"
Legacy of financial freedom and independence for my children.
I grew up with extremely dedicated 1st generation immigrant parents who sacrificed a tremendous amount of their life for their children and no amount of money can replace their love and hard work for my sister and I.
However, as they face retirement - hard work was not enough to keep them from depending on government social security and their kids. Their sweat equity of working 100 hour weeks, sometimes 7 days a week did not afford them a nest egg or finances that will support them in retirement. At age 70, they are still working.
Without the mindset and knowledge of what it means to invest wisely and have passive streams of income, hard work is wasted.
I don't want that for my kids. I want my kids to be able to pursue their passions for whatever that may be but have the firm foundation of real estate/passive income that allows them to be free.
1 Reply
Rachel H.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
9y
@Jared Cauffield Time. With each deal, I buy time to do what I want to do not have to do. Hope that helps! :)
1 Reply
Jared Cauffield
OP
Rental Property Investor · Columbus, OH · Member since 2017 · 42 posts · 16 votes
9y
@Rachel H. time is our most precious commodity!
1 Reply
Jared Cauffield
OP
Rental Property Investor · Columbus, OH · Member since 2017 · 42 posts · 16 votes
9y
@Joe Kim that's a great story. Thanks for sharing! I hope you are successful in providing that opportunity for your kids.
0 Reply
Jared Cauffield
OP
Rental Property Investor · Columbus, OH · Member since 2017 · 42 posts · 16 votes
9y
Originally posted by @Nolan O.:

I have a SMART goal related to early retirement, or at least the option of it. My strategies have been built around that. Time with my family is a big driver. But if I'm really honest, it's also about proving myself, both to myself and others I look up to. So, yeah. Family and ambition.
I am glad you bring up the SMART goal method. It's a great way to set goals after you identify your Why!
Anyone interested can learn more here: https://www.projectsmart.co.uk/smart-goals.php
Good stuff!
1 Reply
Jared Cauffield
OP
Rental Property Investor · Columbus, OH · Member since 2017 · 42 posts · 16 votes
9y
@Kyle Collette that's a great way to keep your "why" in mind! I will have to try doing that myself!
Have you ever used the Dream Board concept?
0 Reply
Kyle Collette
Investor · Columbus, OH · Member since 2016 · 112 posts · 79 votes
9y
@Jared Cauffield
Ha ha, funny you mention that - That was one of the first things my wife and I did after getting married. Don't know if you listened to the most recent podcast, but we are much like him and that we value experiences over money. It is definitely fun and invigorating to have a dream board to help with your "Why" as well.
1 Reply
Wayne Bodley
Crystal River, FL · Member since 2017 · 68 posts · 56 votes
9y
REI brings a lot of my skills into play: building construction and maintenance, dealing with people. I like the challenge of juggling a lot of things at once. With my kids grown and moved out it gives me something to do. I am basically cheap and having someone else pay down my mortgage makes me very happy. Having the ability to buy one of my kids a house was an amazing experience, I never thought that would happen. I also don't want to be a burden on my kids when I get older so that's a real motivator. Ultimately it gives me something to do and something to look forward to.
1 Reply
Mayank S.
Investor · Herndon, VA · Member since 2015 · 185 posts · 74 votes
9y
My why's-
1. Free from 9-5 shackles
2. Another stream of income (passive)
3. Family
4. Financial freedom
5. Pursuit of meaningful goals through REI
6. Give back to the community
Overall love REI and very dynamic field that keeps me on the edge to learn everyday.
0 Reply
Filiberto CortesPro Member
Chehalis, WA · Member since 2017 · 36 posts · 8 votes
9y
I want to invest in real state because I have passion for plus I could get cash flow every month and also is tax friendly and last I love ugly houses for some people may not like but I see opportunity when other people see problems
0 Reply
Kumar Kolar
Investor · London, England · Member since 2017 · 10 posts · 6 votes
9y
The satisfaction of hunting down and negotiating a great deal.
Plus seeing opportunities where people ignore.
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