QOTW: What is your “Why” for investing?

Fort Worth, TX · Member since 2020 · 1k+ posts · 2k+ votes

Thank you to everyone that has shared their thoughts in the question of the week so far! As the Community Engagement Specialist for BiggerPockets, I love to see how diverse real estate can be. Being so different, we all have different motivations for our "Why". Let's talk about yours! What is it now, has it always been that way, or did your mindset shift? What do you think caused that shift? How are your action working to reinforce your why?

Share your stories and make some connections!

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

I wanted to accomplish three things: financial independence in case I don't want to work or am unable to, the ability to enjoy life on my terms rather than chasing a paycheck, and the ability to help others.

I've hit all three of them, but now I want more so I can really blow the top off my third "why" regarding charity. My new goal is $300,000 annual income from investments, of which at least 30% will be for charitable contributions.

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Sam McCormackBusiness Member
Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
4y
@Alicia Marks
The one everyone says financial freedom. But on top of that I want to build a successful business that operates on its own to buy more and more properties. I think it would be cool to open a dog/cat shelter non profit. Don’t know all the details on that but I would like to do that
[email protected]859-443-4952
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Danny Mittler
Member since 2020 · 21 posts · 12 votes
4y
2 Reply
Mackenzie Grate
Interior Decorator · Ulster County, NY · Member since 2020 · 204 posts · 177 votes
4y
So I don't have to stress about paying the bills and I can put more time and energy into my passions and helping others pursue their passions too. :)
2 Reply
Tanisha Lee
Realtor · Clearwater, FL · Member since 2021 · 2 posts · 2 votes
4y
@Ryan Lee SAME! I’m a musician and fashion designer- I want the residual income to focus on my crafts.
2 Reply
Account Closed
Property Manager · Las Vegas, NV · Member since 2017 · 108 posts · 149 votes
4y
@Alicia Marks Super simple. It's fun and engaging and there is always something to learn. Personally I like knowing we are offering a safe and habitable place to live for those who are less fortunate in Las Vegas and cannot afford to buy and/or are in a temporary position and prefer to rent. Sometimes the public and/or politicians look at investors as the "bad guy" but most landlords are providing an awesome service to the public. When done right being a residential rental investor is very rewarding from a financial, social and emotional perspective. Cheers to all us investors who work hard and make this happen! It takes hard work, effort, determination, sacrifice and a strong work ethic to become a residential investor. There is no easy path but it's a fun path regardless.
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Gregory SchwartzBusiness Member
Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
4y
It's fun as hell! Plus it can make you financially independent. I love that in just a few years I will be in a position to work as few hours or as hard as I want to while still fully supporting my family. Sometimes I need a challenge and really want to grind 80 hours a week and sometimes I need a few months off to travel or just do something new. Lastly, I get to make an impact on my community and that's kinda cool.
[email protected]443-812-0357
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Gina SternPro Member
Investor · Boca Raton, FL · Member since 2019 · 1k+ posts · 160 votes
4y
My "why" for investing, primarily in Real Estate so I can create passive income for myself so that I have peace of mind and financial freedom. Money is a tool to have experiences that I want to have out of life and there are many experiences I want to have, including travel, which has been off the table for many months due to COVID.
[email protected]561-430-2616
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Matt Mullins
Member since 2021 · 9 posts · 7 votes
4y
I have a 401k that will provide a comfortable retirement for my wife and I. Our why is twofold:
To provide generational wealth for our kids and set them up in a way that was never a possibility for us.
To be a financial pillar for our church to continue reaching and impacting our community. We have a vision of building a hope center that would provide food, clothing, medical care and other essentials for those in need in our community. We also want to build a respite lodge for Pastors and their families. Think of it like a ranch/retreat where Pastors and their families can get away for a few days to recharge and focus on themselves and their spiritual and mental health.
The Hope would be to split all investment profits 50/50 between the two.
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Theresa Schmiedel
New to Real Estate · Quakertown, PA · Member since 2022 · 3 posts · 9 votes
4y
With inflation at an all time high, it just makes sense to invest in something less likely to lose value. Seeing the equity in my own home increase significantly in the past two years sparked my interest to explore different avenues of potentially investing with that equity. The area I am in is currently undergoing a "revitalization" which is super hopeful for an investor so I'd like to jump in sooner rather than later, or even make connections with others who may be interested in the area.
I am currently in the education phase so I can make the best decisions possible in this new career. If you have a book or podcast you love- feel free to share! I have quite the fixer upper that I am remodeling myself to save as much money as possible to start (with the help of my husband and dad who is a contractor- I know, lucky me!), so I can reappraise/refinance & purchase another property solely with my line of equity and/or with the help of a hard money lender as well. Ideally I would love to get into the world of multi-family rentals with rehab potential- who doesn't love a good rehab project?! There is just something so satisfying (and lucrative if done right!) in rehabbing a property. I am currently located in eastern PA but plan on having properties all along the east coast if/when things go well!
My husband and I recently started our own small business in town, not only giving me the freedom of doing this any time but also helping me make connections in the town that is currently on the up & up. While our small business is doing very well, my ambition to succeed does not stop there & I would love to have a successful investment company as well so my husband can retire early. Obviously the dream is to both be able to enjoy financial freedom. Feel free to reach out to connect with me if you'd like, especially if you are in PA/the tri-state area :)
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David Bain
Agent · Honolulu, HI · Member since 2017 · 97 posts · 48 votes
4y
I grew up in a rather poor environment as a kid. It started there and the passion for more followed me into my military service. I spent a lot of hours sitting still in the military. I used the time wisely and immersed myself into books and networking. Glad to say my life is quite well now. Financially free before 30 was my first major goal and we definitely hit it. Hope everyone is having a great week!
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James R Thompson
Investor · Sacramento, CA · Member since 2022 · 7 posts · 12 votes
4y
My dad... It may sound like a negative but hang tight. My pop just turned 75 years old and if I wasn't able to put together a mobile home deal for him in Southern OR he would have been homeless. He sold his successful furniture business a few years ago and lived on the money. During his annual holiday visit, he basically told us he was broke and wasn't sure what to do. I was able to make a deal on an inexpensive mobile home for him and with what little social security and government assistance he receives he will be fine. I currently own and operate two income-producing businesses in California. Helping him basically gave me a wake-up call to take immediate action. I have always had an "abundance mindset" but seeing my dad at his age struggle after years of hard work gave me the courage to set even higher goals for myself. I've shifted to a "wealth generation" mindset and to be truthful, opportunities are presenting themselves to me daily. I feel like I have been blessed to see my future and I have been conscious enough to take positive actions to change it for the better. I know I can't thank my dad directly for helping me find my true "why" I don't think he would understand. We are all motivated by either fear of loss or happiness to gain. If someone out there is struggling to find their true why just ask yourself, what will my life look like in 25 years? If you want it to have the same security as you feel you have right now, get to work! Haha, thanks for reading this long comment :)
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Dave Van HornPro Member
Fund Manager · Wayne, PA · Member since 2009 · 1k+ posts · 1k+ votes
4y
I think it's important to stress that a "Why" can be fluid.
At the beginning my "Why" was pretty simple: I did not want to do my day job. At least not forever. I knew there wasn't a way for the same amount of growth with my day job, which back then was labor intensive and entirely dependent on me.
My "Why" as of late has been to build a successful business that's bigger than me and not only serves to benefit me into my retirement but also to benefit our investors, staff, and community.

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Joseph Romano
New to Real Estate · Traverse City, MI · Member since 2021 · 48 posts · 17 votes
4y
I invest in real estate to travel to every US National Park and not have to ask a superior to enjoy my life. Once I've visited all the National Parks I want to open a gym called "True North"
3 Reply
Dorian Moran
Frisco, TX · Member since 2022 · 6 posts · 7 votes
4y
@Alicia Marks
1. To provide my kids with wealth.
2. Financial freedom
3. Travel
These are my reasons for getting into real-estate.
2 Reply
Alicia MarksPro Member
OP
Fort Worth, TX · Member since 2020 · 1k+ posts · 2k+ votes
4y
Quote from @Sam McCormack:

@Alicia Marks
The one everyone says financial freedom. But on top of that I want to build a successful business that operates on its own to buy more and more properties. I think it would be cool to open a dog/cat shelter non profit. Don’t know all the details on that but I would like to do that

I foster for a rescue. I am happy to connect you to the woman who started it. It's heartbreaking and hard sometimes, but very rewarding. I get to get them ready for their forever families and never lack puppies to cuddle!
[email protected]Podcast Guest on Show #204
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Patrick Cianchetta
Rental Property Investor · FL · Member since 2021 · 6 posts · 2 votes
4y
My primary WHY will always be to provide a better future for my family. Having the financial freedom to create generational wealth for my very young kids and to be able to help those to my right and left. This is the first year my wife and I are going to be intentional about real estate investing and we are excited for the future!
Wish us luck!
1 Reply
Dave G.
Investor · Phoenix, AZ · Member since 2016 · 349 posts · 418 votes
4y
Like many other posters here, my WHY is a cocktail of reasons:

I had a high school friend whose dad owned multiple commercial buildings and was fairly wealthy. When I was 21 years old, he took me for a ride in his new Ferrari. That was a big influence on me!

And nobody in my family or my wife's family had ever invested in RE before, so that drove me to be different and explore it.

My wife and I both had solid professional careers in aerospace, and I wanted a different asset-class to park some of our money than just the stock market

It is a very imperfect market compared to equities, so you can find discounted investment deals

After-tax cashflow can be amazing with the depreciation deduction

It afforded me the wonderful opportunity to retire comfortably at 55 (in 2021) when my employer decided being woke was more important than I could stomach.
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Jake R HebertPro Member
Member since 2022 · 1 post · 1 vote
4y
Financial security and freedom from traditional workforce.
Inherited a 4 plex and owner financed one next door after being laid off. Still working a w2 job but landlording for the last year opened my eyes to the possibilities of cash flow investments vs. 401k. Stumbled across this great wealth of information here. After reading and listening to some of the podcasts actually makes it seem doable. Currently refinancing my home to put that equity to work and researching deals to get ready to pursue this further. Meeting with a realtor ( my cousin) next week to actually start putting a plan in place. Excited and nervous but ready to start making some moves towards building my empire...lol
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Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
4y
I really like building things and the idea of creating a great, lasting company. Sort of the entrepreneurial spirit I got from my dad I guess. Money is nice too admittedly.
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Tim SharkeyBusiness Member
Real Estate Broker · Roswell, GA · Member since 2020 · 18 posts · 4 votes
4y
I invest to achieve financial freedom and diversification. I'm about 70/30 with my real estate vs. stock portfolio, because I like having exposure to other markets. I don't necessarily look at the short-term cash flow as being important, but the long-term wealth building that can be achieved with real estate. I'm hoping to retire in about 20 years, and when I say retire, I mean doing whatever I want when I want.
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Percy N.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
4y
Good point @Dave Van Horn.
My wife and I plan to leave most of our "estate" to charity.
Real estate is a way to ensure that the maximum benefit can be achieved (tax benefits on appreciation, hedge against inflation, leverage, etc).
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Thomas McCarthy
Investor · Chula Vista, CA · Member since 2021 · 8 posts · 5 votes
4y
I have realized that I would not trade my past for anything, it was the past that got me to where I am today. I love my family, myself and all the blessings that I have received. There has been nightmares along the way but here we are. All that being said, in the past 2 years, my eyes have been opened to the fact that there is more out there, I can have more, do more, give more, help more. But to do so, I need more coming in. I used to think that only crazy smart people could make over 100k or 500k or 1MM plus a year, now I just know they are focused but other than that, no different from the rest of us. I really want to get out an travel, see, do, experience, set up generation wealth for my someday grandkids and get the heck out of the rat race! If I can, wait scratch that, when I have my portfolio built up to a point where I can fire myself from my day to day job, then get to do more of the experiences we are looking for, that is my why.
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Wesley B WilliamsPro Member
Rental Property Investor · Louisville, KY · Member since 2017 · 107 posts · 77 votes
4y
Great question @Alicia Marks, as a dad with a son from a previous marriage, and working as a firefighter, I only get to see him for approximately 1/3 of his life right now, I want to maximize and increase my time with him. I also have a 2 year old and one on the way with my amazing wife. I want to be able to provide my kids with the foundation for success as they grow up and give my wife an amazing life where she doesn't have to go to work if she doesn't want too. Plus owning a jet would be cool one day.
1 Reply
Aldrin Gacuya
Member since 2019 · 13 posts · 6 votes
4y
I would say my biggest why is 1. Family & 2. To be able to do what I want, when I want, with who ever I want.
2 Reply
Nico Alianiello
Real Estate Agent · Palm Beach County · Member since 2021 · 16 posts · 11 votes
4y
My "Why" for investing started at a very young age but has since changed as I matured. At first, when I was only 7 or 8 years old I dreamed of having a Lamborghini or a Bugatti. I would save my birthday money every year just in hopes that one day I'll be able to afford one. However I knew the annual $25 from Grandma wasn't going to cut it.
I have always been fascinated by the stock market and took it upon myself to start a brokerage account the day I turned 18. I have since learned so much and beyond about investing and the several different ways to do so. Which is how I've found myself here, on BiggerPockets. While I have yet to start my real estate portfolio. I know when I do eventually have the funds to safely invest I will be ready to hit the ground running.
As I matured and time went on, I realized having money is not just about having the fastest car or any materialistic item for that matter. It's about experiences. What you have done, where you have gone, and who you have met along the way. Along with having the financial security of taking care of your loved ones whether that might be helping a friend with debt, paying a hospital bill, or buying my parents' dream retirement home. Investing (when done properly) unlocks the freedom of being able to pursue these experiences and the privilege of being financially free, and THAT is my "why" for investing. (Although... it would still be cool to own a Lamborghini. LOL!)
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