You got to the million mark yet?

Question

I am sure people who invest in rental property gain a lot, e.g. money, fancy cars, financially free etc etc, but I would like to ask how many investors on here are close to the millionaire mark in net worth?

Thanks

Jay Hinrichs · Answer

million dollar net worth is not what it used to be by a long shot.. at least in certain parts of the country anyways.

there is certainly a fine line in enjoying the fruits of your labor and being a money hoarder .

I know both types personally  ..

I fell in love with aviation as a child and wanted to be a airline pilot or professional pilot.. however mid 70s was not a time to get hired on in the aviation world so I started in RE.

I have owned planes most of my adult life.. do I need them of course not.. but its something that I dreamed of and wanted.. could I have saved every penny I earned over the years and retired years ago sure.... but then I would not have all these great life experience's which are worth more to me than money in the bank...

One never knows when their ticket gets punched and I for one don't want to go through the pearly gates with a bunch of cash in the bank and properties and not enjoyed the things I work hard to enjoy...

Now does that mean buying a 100k car and living in an apartment and living month to month.. Nope not saying that.

just its a balance and everyone has their things they cherish and has their frugalities and their excess's.

Account Closed · Answer

I understand, but for some its a goal to be a millionaire in their life time, for others its about having things in life that their parents were not able to give them e.g. leaving the light on without worrying about the bill going up by $20.

Levi T. · Answer

I got mad respect for this man, he drove that truck till the very end. Over time I've learned being a millionaire is about being a  custodian of wealth. That man above is Sam Walton, and he drove that rusted 1970's Ford, even as a billionaire. He was famously quoted once for saying "What am I supposed to hall my dogs around in, a Rolls-Royce?".

Jonathan G. · Answer

Not there yet personally however, things like fancy cars and homes often delay / prevent one from a higher financial worth.  I like to think about how much does that fancy car really "cost" you in terms of lost investment funds and opportunity costs.  For example, if one were currently 25 years old and maxed out their 401K for the next 6 years (18K / year for 6 years) and invested nothing else ever into that 401K and let that 100K grow at conservative 6% until age 70 then you would be pretty close to having that million dollars at retirement HOWEVER, that million probably only has about 1/3th of today's purchasing power. If you decided to buy a brand new fancy 100K car, that car would pretty much be worth pennies on the dollar compared to what you paid for it. If that same 25 year old continued to invest 18K for all of their working years, they would easily have over a million dollars in today's purchasing dollars.  Also, most who invest in rental property gain very little unless they are operating on a very large scale (1000's of units). The rest of us are chugging along with meager cash flow returns with some steady increasing equity. Having a high net worth for most is all about living without the fancy cars and spending.  Also, our parent's generations "Million" probably equals about 3 million for us in current dollars. From the data I have been seeing lately ,about 9% of US households have a net worth of 1 million (not including their primary residence).  It may be worth considering setting the million dollar goal a bit higher.

Account Closed · Answer

thanks for all the above and yes I agree there should be a balance.  But people get motivated by different things, for some its money like mayweather Jr or Conor McGregor, but i was asking if anyone on here has got to a million in real estate, which may motivate some.

Account Closed · Answer

I mean on the podcast someone had $350m in property

Account Closed · Answer

what is REI? OK from property investing, rental, flipping etc has it changed your life for good? Do you worry about where the next dollar will come from, do you travel anywhere and everywhere, are you more free to do as you wish etc

JD Martin · Answer

REI=Real estate investing.

Has it changed my life for the good? Undoubtedly. I still work a W2 (ie, "day job"), but I could quit tomorrow and still live a pretty good life just managing my business. That would have been impossible without real estate investments.

Do I worry about where the next dollar will come from? Nope, but I suspect that would be the case even if I didn't have my own business. Most people I know that are enterprising enough to go out and make something of themselves in real estate have enough drive that they would probably be successful in most anything. Hard work and action trumps ideas and theory every time.

Do I travel anywhere and everywhere and am free to do as I wish? Well, to a point I suppose, but I have responsibilities that go with owning a business, so there's that. I was in the military and did a ton of traveling back then, so I don't really mind staying close to home these days. I envision a point where the business will be run by someone other than me, and at that point I will probably do a little more traveling.

Samantha Klein · Answer

We all work towards being able to retire early and spend more time doing what we want to do in life. I personally don't care if I become a millionaire, as long as all of my bills are paid with rental income and I have 3-4k a month in spending/fun money. Being a millionaire is overrated, definitely nice but making tons of money that likely you'll never be able to spend (what good is money if you hoard it and don't enjoy it).

JD Martin · Answer

All I will say is that I don't reveal that kind of info on a public forum, but REI has treated me very well. And having a net worth is different than having a net income.

You got to the million mark yet?

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