If You Got Rich In Real Estate, Would You Even Know It?

If You Got Rich In Real Estate, Would You Even Know It?

Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes

Obviously, this is a knock-off of another recent post which asked what you would do if you got rich in real estate. The question I'm asking is how would you know that you were rich? Would you just wake up one day and say "I'm rich"? What would cause that to happen?

How would you know that you were rich? (please spare us the "if you've got your health and family" nonsense - that's nice, but it's not rich)!

Mike

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Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
17y

I think it was Buffet or Getty that said if you know what you're worth, you're not worth much!!! One of my first brokers in 1972 told me his goal was to be a million dollars in debt. That was nearly 40 years ago. He figured if he found someone to loan him that much he could get rich off it. My wife and I set the goal to personally buy 1000 homes. We reached that last year. We have sold hundreds of them over the years to get ahead and set up a legacy for our grand kids and future generations.
I've been told I'm rich, but most of it is in a trust and it hasn't changed our lifestyle. Rich.

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  • Real Estate Investor · Sacramento, CA · Member since 2008 · 566 posts · 356 votes
    17y

    Not to divert, but one of my all time favorite threads on BP starts off with

    http://www.biggerpockets.com/forums/56/topics/17546-you-know-you-re-a-real-estate-investor-when-

    It's easier to know when you're NOT rich. I'm not. If I were to think I was, I would lose my sense of urgency and stop looking at new things and new ways.

    So, if someday I become lethargic and uninterested, then I must be rich. :idea:

  • Murray Hill, NJ · Member since 2008 · 204 posts · 15 votes
    17y

    My criteria for being rich are as follows:

    1) I no longer have to work unless I want to
    2) My retirement is secure. I've saved enough and/or made sure that I will have enough "passive" income so that my family and I can live comfortably for the rest of our lives.

    It's very difficult to gauge those two things without a crystal ball, so like Ralph says, it's a lot easier knowing when you're NOT rich. I can safely say that by my own standards, I am not rich.

    Of course, everything is relative. There are those who would consider themselves rich if they could always pay their bills on time and didn't have to work three jobs to make ends meet.

  • Financial Advisor · Tampa Area, FL · Member since 2008 · 956 posts · 214 votes
    17y

    many of my friends classify me as 'rich' now. i think it helps that they are poor though...lol

    in all honesty, after working with people of all lifestyles and all networths, i don't think you will really 'know'. if you notice, those that do have the money and that we may deem to be rich, still want more and more. call it gluttony if u will, but i think their mindset is dead-on!

    i want to have enough money to be able to just do whatever the heck i want when i want to (kinda like a mikeoh lifestyle) ;-)
    however, i want to have enough money to where i want more and more and more.... i don't think i could ever have enough. i want to collect money as some of you collect cars or doo-dads. lol

  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    17y

    Dave, by that definition, at least half of my low income tenants are RICH!

    1) They don't have to work, since you and I are sharing the wealth with them via government handouts.

    2. Their retirements are secure as the government (you and I) will be supporting them til the day they die.

    Moreover, many of them have a big screen TV! LOL!

    Mike

  • Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
    17y

    I was told by a real estate professor that "What you're in debt by at 30 is what you'll be worth by the time you're 40".

    I'll be rich when I'm 40.

    He also told me if I get married and was thinking of getting a divorce "Its cheaper to keep her". I think he had a bitter divorce.

  • Financial Advisor · Tampa Area, FL · Member since 2008 · 956 posts · 214 votes
    17y
    Originally posted by Justin Schnettler:
    He also told me if I get married and was thinking of getting a divorce "Its cheaper to keep her". I think he had a bitter divorce.

    he was a wise man....

  • Real Estate Investor · Sentenhart, Wald · Member since 2009 · 110 posts · 75 votes
    17y
    Originally posted by MikeOH:


    1) They don't have to work, since you and I are sharing the wealth with them via government handouts.

    2. Their retirements are secure as the government (you and I) will be supporting them til the day they die.

    Moreover, many of them have a big screen TV! LOL!

    Mike


    Isn't that the truth, how many times have we heard that a tenant is late with the rent yet they have a $3000.00 HD set with more tuners, wires, and controls then an electronics store.

    We still have a $250.00 Sony display model that we bought 6 or 7 years ago from Sears and can't seem to justify replacing.

  • Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    17y
    Originally posted by Josh Green:
    Originally posted by Justin Schnettler:
    He also told me if I get married and was thinking of getting a divorce "Its cheaper to keep her". I think he had a bitter divorce.


    he was a wise man....



    Not always true....lol.
  • Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    17y
    Originally posted by MikeOH:
    How would you know that you were rich?


    When I can afford to be a democrat and actually justify it.
  • Financial Advisor · Tampa Area, FL · Member since 2008 · 956 posts · 214 votes
    17y
    Originally posted by Tim Wieneke:
    Originally posted by MikeOH:
    How would you know that you were rich?


    When I can afford to be a democrat and actually justify it.

    hahahaha, i find this hilarious...and i am a dem :lol:

  • Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
    17y

    I'll give a crack at this.

    I consider myself Rich now!

    it's not because I was able to bring my wife home or the amount in my bank account(s) or any mushy mumbo jumbo

    I believe I'm Rich simply b/c no matter whats happens today, tomorrow or next week I've got the knowledge to get back up and quickly get back on the road to riches.

    I can't buy a highrise commercial building in NYC but I can buy and sell as many houses as I want to when ever I feel like!!
    I can go where ever and when ever I want and stay as long as I want. So to me I consider myself Rich!!

    Now, I'm on the path to increase my current business as well as starting a few others to increase my Riches because now that I've gotten as far as I have, I know there is more to get and I intend on getting it!!

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    17y

    I think it was Buffet or Getty that said if you know what you're worth, you're not worth much!!! One of my first brokers in 1972 told me his goal was to be a million dollars in debt. That was nearly 40 years ago. He figured if he found someone to loan him that much he could get rich off it. My wife and I set the goal to personally buy 1000 homes. We reached that last year. We have sold hundreds of them over the years to get ahead and set up a legacy for our grand kids and future generations.
    I've been told I'm rich, but most of it is in a trust and it hasn't changed our lifestyle. Rich.

  • Murray Hill, NJ · Member since 2008 · 204 posts · 15 votes
    17y
    Originally posted by MikeOH:
    Originally posted by Dave V:
    My criteria for being rich are as follows:

    1) I no longer have to work unless I want to
    2) My retirement is secure.


    Dave, by that definition, at least half of my low income tenants are RICH!

    1) They don't have to work, since you and I are sharing the wealth with them via government handouts.

    2. Their retirements are secure as the government (you and I) will be supporting them til the day they die.

    Moreover, many of them have a big screen TV! LOL!

    Mike


    Great point! I just learned that one of my tenants in Buffalo has a history of never paying for heat. Up there the utility company is NOT ALLOWED to turn your heat off in the winter, even if you never pay. So, it's common practice for many of them never to pay for gas, and leave it turned off all summer. I guess they eat sandwiches all summer since they can't cook. (Hopefully this guy doesn't decide to build a makeshift BBQ pit in the living room.)

    Last time I was up there, they didn't have a flat screen, but with all the money they're saving on gas, I'm sure there's one in their future. Too bad the gas company doesn't sell HDTV's.
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