Do you really understand your own motivations? Simple answer might be yes, Money! So, you're saying you choose real estate just because you're under the impression you'll get rich or earn more in RE than you might in any other industry? Self analysis of your intentions from time to time or in attempting to do some transaction can be tough as you may have to admit to yourself some things you know are not so admirable. Does your ego allow you to admit things that may not be seen as a favorable trait? We have all seen illustrations of our self devil sitting on one shoulder and our self angel sitting on the other. Do you listen to you Id, your conscious and at what dollar amount do you draw the lines, where does temptation win? Temptations to benefit should be kept in check, not only as to fair dealings but in assessing risks. Are you really taking risks you shouldn't be? Does your ego give you too much confidence? If you don't want to spill your personal assessments in public you can speak in the third person as to how others might make some self assessment. Know thy self certainly is a beginning point in business. Most of my RE activities when I began were basically as a supplemental income matter, the motivation was probably greed, I just wanted the money and my involvement was rather casual. I fell into my very first deal as my own home and shortly after buying I ended up selling making what I thought was a good profit. It was just a shot in the arm to get me interested. As I matured in my 20s I began seeing other aspects, responsibilities to others, understanding fair dealings was never an issue but the degrees of fair were an issue at times. This was primarily in landlord activities. Over time you begin to see a bigger picture in RE, it's a matter of maturity more than specific knowledge, but without learning you'll never see the bigger picture. Your motivations change, in business you'll always have money as a central issue, profitability is always a concern. What seems to be missed by many is that chasing deals just for money isn't really feeding the ego, there is a bit of an emptiness in life if you don't really love what you do. I don't think you can really love what you do if you don't address all the areas of your life. You don't really feel the success. I use to chase deals long ago, then I decided to go into lending, obviously it was about earning a living, expecting a good living. I didn't do much self analysis of what really made me happy or why I was doing what I choose. It hit me one day, a young couple buying their first home, kids just getting started. I really liked them and they had a tough time getting their home, but the challenge became the purpose, not the money. I saw them again a couple days ago, I recognized them they didn't recognize the old guy. After introductions again, they said they are still in the same home, love the place and they will have it paid for in 3 more years. They had refinanced but basically followed what I suggested long ago and they remembered my advice. When I closed that loan I had a sense of accomplishment that money can't buy. The other day after seeing them again I had a sense of pride that money can't buy. What is your real motivation? Are you a contributor or a taker? Which do you think really leads to success, money and self worth, in the long run? :)

I jumped on BP this morning freshly motivated in my endeavors, and searched the forum for motivation. Of all the threads, this one by Bill Gulley who I am working with as a mentor. He said I was an inspiration because I keep emphasizing to do the right thing and good things will happen. He really gets it. He understands my motivation and stated it in a very clear and distinct way. I can only say that BP has been a wonderful forum for me personally, and provided me the motivation to pursue my passion. I love the way Bill G, and so many others, share their wealth of knowledge without expectation. Thank you all, I am just trying to do the same. The Bridge Builder An old man, going a lone highway, Came at the evening, cold and gray To a chasm, vast and deep and wide, Through which was flowing a sullen tide. The old man crossed in the twilight dim- The sullen stream had no fears for him; But he turned when safe on the other side And built a bridge to span the tide. “Old man,” said a fellow pilgrim near, “You are wasting strength with building here; Your journey will end with the ending day, You never again must pass this way, You’ve crossed the chasm, deep and wide- Why build this bridge at the eventide?” The builder lifted his old gray head- “Good friend, in the path I have come,” he said, “There followeth after me today A youth whose feet must pass this way. This chasm that has been naught to me, To that fair-haired youth may pitfall be. He, too, must cross in twilight dim- Good friend, I am building this bridge for him.” Will Allen Dromgoole

I want the freedom of time. I want my wife to work the job she loves part time and have holidays and weekends off. I want to travel when and where I want without being worried about leaving something behind that won't get done. I want to golf when and where I want. I closed on my 2nd rental property today and my Sr. loan officer was there telling me proudly about how he works 80 hours a week, then he got in his brand new Mercedes and left. This is the opposite of what I want. I don't want to HAVE to work to afford things that don't enhance my life in any way. At the end of the day the people we love and help to affect positively are all that matter.

Your Motivations?

Timothy Trewin

Clarksville, TN · Member since 2011 · 42 posts · 12 votes

12y

Great post. It is interesting to see how your motivations have changed over time. For me I do it not so much for greed, but for the financial stability that it can provide long term. I work in a profession that is physically demanding and I am well aware of the toll that it will take on my body long term. I seek to provide enough residual income to provide for myself and my family when I am an old man and unable to work or do as much. If successful enough I can live off of that and be content. I can be the old man putting little smiley face stickers on the hands of kids when they come into Wal Mart. I don't seek yachts and multi million dollar houses and tons of cars as I have never had it and don't miss what I don't have. I just want the ability to not worry about how to pay bills and have the luxury to take my spouse on vacation if we want.

My other motivation is a sincere desire to help others. I grew up dirt poor and I witnessed what it was like for my single mother struggle to raise myself and my brother. I know there are many other stories out there like that and I want the joy that comes from helping others whether that be from buying their first home, or developing a nest egg so they can change their lives. I guess I get joy out of watching others succeed and seeing the pure joy that they have. In turn the hope is that they pay it forward and help the next ones.

But enough of my rambling, hopefully my message makes sense.

2 Reply

Douglas Dowell

Denver, CO · Member since 2012 · 350 posts · 175 votes

12y

Freedom.

2 Reply

Bill Gulley

OP

Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes

12y

Timothy, calling the desire for financial gain greed is not a bad thing.

Douglas, a great one word motivator. Freedoms come with commitments and responsibilities, it's not a free benefit in any realm. :)

1 Reply

Robert Slatkin

Leesburg, VA · Member since 2013 · 42 posts · 9 votes

12y

@Bill Gulley

Hi Bill. This is not only a great post, but a very valuable one.

It challenges us to take time away from the cash-on-cash return analysis in order to make a higher level, introspective analysis of the true motivating factors for our actions and behavior.

I believe that people's motivations are evolving, and most heavily influenced by their individual experiences and their current stage of life.

In my circumstances, I invest to secure a comfortable standard of living in my old age, and to get to the point where I can focus on helping other people.

Being a student and fan of baseball history, I want to quote the epitaph of one of my heroes, Jackie Robinson.

"A life is not important except in the impact it has on others lives."

1 Reply

Timothy Trewin

Clarksville, TN · Member since 2011 · 42 posts · 12 votes

12y

@ Bill Gulley I think I might not have represented what I meant by greed well enough with my post. I do think trying to better yourself is a good thing, but there is a fine line between bettering yourself and greed. To me a good analogy would be the difference between owning buy and hold properties, such as an apartment and treating tenants well and being a slumlord to maximize profits. Both are trying to better their financial situation, its just one will do it at the expense of others. That to me is greed and that is the kind of individual that I myself refuse to be.

1 Reply

Tim G.

Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes

12y

I know I came here to escape a job, then turned real estate into a job... That didn't feel so great when I realized that.

Happiness must be a journey, and not a destination.

Its 3:53PM I'm in board shorts about to ride my bike down to the beach and I'm not wearing any shoes. That to me is a great day. I've realized the money isn't as important as the time and experiences with those I care about is.

There's my two peso's

2 Reply

Robert Blake

Investor · Aurora, CO · Member since 2013 · 97 posts · 40 votes

12y

Originally posted by @Timothy Trewin:

@ Bill Gulley I think I might not have represented what I meant by greed well enough with my post. I do think trying to better yourself is a good thing, but there is a fine line between bettering yourself and greed. To me a good analogy would be the difference between owning buy and hold properties, such as an apartment and treating tenants well and being a slumlord to maximize profits. Both are trying to better their financial situation, its just one will do it at the expense of others. That to me is greed and that is the kind of individual that I myself refuse to be.

You don't think treating tenants well maximizes profits? And you think that being a slumlord does? I think it's the other way around.

I think you're also conflating greed with bad or predatory business practices. I'm sure the Venn diagrams overlap, of course.

0 Reply

Bill Gulley

OP

Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes

12y

Exactly Timothy, there is always a winner and loser in any deal, as each sees the transaction, win-win is what you may call it, but you probably would not do a deal if you didn't benefit, it's very hard for each to benefit equally, but our profits can certainly be reasonable and equitable. Doing something that is simply at the expense of others without them receiving something equitable is more in line with stealing to me.

Well said Robert, yes to do evolve, some faster than others. R. Blake, I didn't catch that from Timothy, not sure is was meant that way.

Wondering if people do any soul searching, why they are in the game, what if any riles they have in their game. I've noticed over my years that the bar has really dropped, not just in RE but in our business society. There are good folks, seems like the bad apples are multiplying or they are just more obvious.

But, off that, my point is assessing yourself to be better informed, to set goals, to guide your efforts, to understand the societal matters, should you take all someone has saved to put them in a house and then allow them to fail? It's not so much of what I think about them doing that, what do they think of themselves?

Desperate people do desperate things. If you're seen as acting out of desperation, that's like blood in the water to sharks, people won't deal with you, you'll never build trust and most anything you say will be questioned. :)

1 Reply

Timothy Trewin

Clarksville, TN · Member since 2011 · 42 posts · 12 votes

12y

Originally posted by @Robert Blake:

Originally posted by @Timothy Trewin:

@ Bill Gulley I think I might not have represented what I meant by greed well enough with my post. I do think trying to better yourself is a good thing, but there is a fine line between bettering yourself and greed. To me a good analogy would be the difference between owning buy and hold properties, such as an apartment and treating tenants well and being a slumlord to maximize profits. Both are trying to better their financial situation, its just one will do it at the expense of others. That to me is greed and that is the kind of individual that I myself refuse to be.

You don't think treating tenants well maximizes profits? And you think that being a slumlord does? I think it's the other way around.

I think you're also conflating greed with bad or predatory business practices. I'm sure the Venn diagrams overlap, of course.

Robert,

I do imagine that in some cases being a slumlord does not pay off while treating tenants well makes a larger profit. Outside of laziness one would have to wonder then why someone would choose to be a slumlord if there was no significant financial gain in it, especially a gain that would supersede that earned doing things the right way. I am not saying you are wrong, just not sure the benefit of being a slumlord then unless it was better financially.

0 Reply

Timothy Trewin

Clarksville, TN · Member since 2011 · 42 posts · 12 votes

12y

@Bill Gulley , I do agree with your post. Desperation is a recipe for disaster no matter what venture you engage in.

0 Reply

Rick H.

Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes

12y

Frankly, I like the personal autonomy.

I learned a long time ago that there's a difference between real estate investing and business(es) associated with real estate. I love them both, but for different reasons.

I was an entrepreneur before I was in the corporate world and only entered the latter because I wanted the financial security of a corporate career. However, my employer expected me to do things their way and had the gaul to expect me to show up to work on their hours, travel, and do other things that were part of the job but I disliked intensely.

Since being fired (!) twenty five years ago, I came to terms with my being unemployable and got very, very motivated to make up for what was almost a decade. One of Napoleon Hill's success principals is "Accurate Thinking" or what I call: 'lifting up the horse's tail and looking at it right in the eye.' I was given the gift of desperation and found that, not only could I make a good living in the lending business, but I could flourish.

Truth be told, I still enjoy working in the same niche that I have since around 1989 and all of the messy, problematic, complicated situations, even the ugly part of it. I'm told many don't have the stomach for it. Fortunately, I thrive on it.

Investing in real estate happens to be the way I've placed and grown my estate. Primarily notes and residential property. I understand it and it's not rocket science to me. They pay whether I work of not; to me, that's what an investment does.

I don't think either real estate as a business or investing are always easy, however I'd rather be self-employed and unemployable.

1 Reply

Robert Blake

Investor · Aurora, CO · Member since 2013 · 97 posts · 40 votes

12y

Originally posted by @Timothy Trewin:

Robert,

I do imagine that in some cases being a slumlord does not pay off while treating tenants well makes a larger profit. Outside of laziness one would have to wonder then why someone would choose to be a slumlord if there was no significant financial gain in it, especially a gain that would supersede that earned doing things the right way. I am not saying you are wrong, just not sure the benefit of being a slumlord then unless it was better financially.

Heh...wouldn't you agree laziness is a big factor? I'm reasonably certain that its fraternal twin ignorance is never far behind, either. What happens to the slumlord over time? Property values drop. Vacancies increase both because of poor property maintenance and uncaring management. Better tenants who won't put up with the BS are more likely to leave, and the problematic tenants stay. But if management doesn't care, they're less likely to pay (on time, at least). Or even in another scenario, non-slumlord thinks about only today, not how their actions will bring in tomorrow, and before they know it, they're way behind the curve and heading down fast.

Why would someone become allow all that to happen? Some people just don't know how or refuse to act in their own best interests. You see it every day in all different kinds of situations. We'd like to believe that everyone is hard working, diligent, intelligent, competent, aware, educated, morally upright, and all those things, but it simply is not true. Any job or task is going to have people who are good, mediocre, or bad at it.

2 Reply

Christian Lautenschleger

Investor · Columbus, OH · Member since 2013 · 72 posts · 18 votes

12y

To do what I want, when I want. Basically, freedom.

1 Reply

Antonio Chasten

Wholesaler · Dallas, TX · Member since 2014 · 137 posts · 28 votes

12y

Great thread!

1 Reply

Bill Gulley

OP

Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes

12y

Let's drill down deeper into the topic of the forum thread, the psychology of how and why you do what you do. Not so much what you do or how you got there or what it is that you do.

The question though is, do you understand what your motivations are?

Do you see a bigger picture in what you do and how do you fit in that bigger picture?

Not really what strategy you follow, not about landlording so much as how do you see landlords fitting into the socio-economic landscape?

Not so much about what you do but rather how you approach your business dealings.

It's about ethics, not even so much about RE, understanding why ethics are important, where you draw that ethical line.

Is it about the money or is it about something else? Are your reasons more about you or are your, or do your reasons include those you serve, your customers, your clients, your community.

RE is a people business, more so than most all other businesses.

If you had a candy store, you'd be in business to make money, your product priced to what the market might bare. Being in that business might offer you freedom of running your on shop, you might sell rock candy that is pure sugar. You might have candy for diabetics, that is low calorie, might have some fruit treat that is even healthy.

Not so much about candy stores, but what is your business ethic?

Does being in the candy business effect others? Most likely it does, to an extent, it makes most people fat, can promote unhealthy conditions or habits! It also provides people with an enjoyable experience, gives kids and even adults a memorable experience.

Does your candy store fit into some theme or overall activity in the local area? For example, in a theme park based on life 100 years ago, your old fashion candy store may demonstrate how candy was made long ago by hand, the employees may dress in the period, it may be next door to the ice cream store, in other words, it's not just a candy store but in makes up part of a bigger theme to provide an entertaining activity.

All that said, RE activities effect other people, those you deal with, it's usually that largest financial transaction most people will ever be involved with. Buyers use savings they have acquired over long periods of time. Sellers may have paid for years on their home and gained equity, it may represent that largest portion of the wealth.

RE makes up communities, your property influences the property next door, down the street and lends to influencing a larger area. A bad apple can spoil the bunch.

While the candy store influences people individually and may influence a larger area in it's mission, RE has a much greater impact socially and economically.

As an investor, do you see that? I know that some investors operate with blinders on, they either don't see or understand the effects of what they do, or they do realize it and choose not to consider these aspects as they are only in the business for their own benefit, disregarding responsibilities or social expectations in order to profit. What is the psychology behind their approach? What is the psychology behind your approach to business?

Do you know?

At a larger level, here are some factors or influences that you might consider, your motivation may come from one or more of these influences:

Money, it provides a living or establishes wealth for you personally..

Social aspects, do you really help others? Really? How would you define "helping" ethically and honestly when you benefit?

Community aspects, are you a contributor or a taker, do you add to a stronger neighborhood fabric, do you positively influence property values of other owners, or are you detracting from it?

Can you spot the "users" and the "contributors"? Some people can spot the motivation of others rather quickly, they can see by the actions and comments of others where their ethical standards are. Other people seem to be totally unaware, they couldn't spot a snake oil salesman if they had to.

By understanding others, "seeing" their motivations can help you "see" yourself. Who you may admire or follow will certainly influence how you conduct yourself. There is a difference between a popular person, a likeable person, an honest person and an ethical person. As to the points above, can you comment as to these differences and perhaps go further to discuss their impact on you as well as others?

I know, it might take some deeper thinking, but think about it..... :)

0 Reply

Rolanda Eldridge

Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes

12y

Freedom and the ability to raise my sons on my terms. I didn't have to ask to take off for any school programs or activities.. Amazing journey!!! Also along the way figured out it's not all about me.. TYJ!!!!

0 Reply

Bill Gulley

OP

Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes

12y

Originally posted by @Rolanda Eldridge:

Freedom and the ability to raise my sons on my terms. I didn't have to ask to take off for any school programs or activities.. Amazing journey!!! Also along the way figured out it's not all about me.. TYJ!!!!

Thanks, can you address the questions of the previous post? I'd say that everyone engaged in RE has the "freedom to act" aspect as at least one reason of being in RE, it's not addressing the how and why you do things, your ethical standards. How do you feel about how you do business? :)

0 Reply

Patrick Henderson

Dallas, TX · Member since 2014 · 68 posts · 33 votes

12y

Motivation, the act or an instance of motivating, or providing with a reason to act in a certain way:

For me or should I say in my life I noticed early on that my brain was deficient in two things. I don't and have never collected anything, ever! I gave away my baseball cards and kept the gum. Which my friends did not understand.

I simply don't have and have never had the ability to think like an employee. I had my first paper route at age seven, A bottle route soon after, for those who remember that. I collected aluminum cans for a short time when ALCOA first started making it easy to sell them for wieght.

For me and my motivations in RE, I have asked myself this question many times.

This is it, I think. Creative solutions to unique situations. Creative transactions are a big motivator for me. Am I helping others in the process? I like to think so but that would be for the people I've dealt with to determine. While I want those I deal with to feel I have done my best to come to an equitable interaction at the fairest terms. I will not aid you in your negociations with me and I will not negociate from a position of weakness.

I think being ethical is huge but it is a business and it must make a profit or I will not be there tomorrow.

I'm not looking to feed my ego, I have enough of that to last me several lifetimes. I am however, looking for a sense of accomplihment. Something I can look back on and have a pleasant memory of. For me it's difficult to do that if I simply did it for money or ego. Freedom? Yes I do get a sense of freedom from this business but in the sense that I'm the one behind the wheel.

One last thing. RE investing can be very profitable and a very lonely business. Don't forget to share your successes, failures and rewards your choices have brought you.

Great post
Bill

Patrick

1 Reply

Timothy Trewin

Clarksville, TN · Member since 2011 · 42 posts · 12 votes

12y

Originally posted by @Robert Blake:

Originally posted by @Timothy Trewin:

Robert,

I do imagine that in some cases being a slumlord does not pay off while treating tenants well makes a larger profit. Outside of laziness one would have to wonder then why someone would choose to be a slumlord if there was no significant financial gain in it, especially a gain that would supersede that earned doing things the right way. I am not saying you are wrong, just not sure the benefit of being a slumlord then unless it was better financially.

Heh...wouldn't you agree laziness is a big factor? I'm reasonably certain that its fraternal twin ignorance is never far behind, either. What happens to the slumlord over time? Property values drop. Vacancies increase both because of poor property maintenance and uncaring management. Better tenants who won't put up with the BS are more likely to leave, and the problematic tenants stay. But if management doesn't care, they're less likely to pay (on time, at least). Or even in another scenario, non-slumlord thinks about only today, not how their actions will bring in tomorrow, and before they know it, they're way behind the curve and heading down fast.

Why would someone become allow all that to happen? Some people just don't know how or refuse to act in their own best interests. You see it every day in all different kinds of situations. We'd like to believe that everyone is hard working, diligent, intelligent, competent, aware, educated, morally upright, and all those things, but it simply is not true. Any job or task is going to have people who are good, mediocre, or bad at it.

@Robert Blake I can see your point. It was just always fascinating to me how people can be like that.

0 Reply

Rolanda Eldridge

Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes

12y

@Bill Gulley ...I'm "investing in people" with the highest level of integrity!!.RE is about people.(Tenants, contractors, etc). The FREEDOM also allows me to make decisions in and outside the box...

2 Reply

Robert Slatkin

Leesburg, VA · Member since 2013 · 42 posts · 9 votes

12y

@Timothy Trewin

Hi Timothy. Maybe it's because I am fairly new to BP, but there are a few terms used here, and in other communities, which I don't understand. One of those terms is "slumlord."

Would you please define "slumlord" for me?

Is it someone who, like in the movies, goes into certain neighborhoods with the intent of taking advantage of people at every turn, and not properly maintaining their property?

Or is it someone who does whatever they can to provide people a home which is clean, well maintained, and as safe as possible, but just happens to be in a troubled area?

If the first, can't someone behave in this manner in any neighborhood? Are there "slumlords" in working class areas? Are there slumlords in the Hamptons and Beverly Hills? If not, why is the term limited to certain socio-economic levels, or particular neighborhoods?

If it is the second, where someone contributes positively to less fortunate people in a neglected area, is that a bad thing? In this case, is the word "slumlord" being used as a compliment?

The point I am trying to make is that it is not the people you rent to, or the area in which your property is located which makes you a slumlord. You make you a slumlord.

0 Reply

Robert Slatkin

Leesburg, VA · Member since 2013 · 42 posts · 9 votes

12y

@Bill Gulley

Hi Bill. You pose so many good questions to ponder that I need time to consider them.

However, my initial response is very straightforward, and can be summed up in a brief sentence/philosophy. And that is...

You are what you do.

0 Reply

Bill Gulley

OP

Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes

12y

Robert, a slumlord is as you described in the movies, too bad they are also in reality. It has little to do with class, however properties in gross disrepair are usually only taken by those with less or no means, an easier target for the predator. Also known as "scumlords" no reflection on the tenant.

Back to the psychology of the investor. :)

0 Reply

Joshua McGinnis

Rental Property Investor · Beverly Hills, CA · Member since 2014 · 472 posts · 272 votes

12y

Simply put, my motivation is to be the best version of myself. Money is nice too, but knowing myself and finding a stride where I can wake up energized and optimistic about life every day is what I'm after.

I grew up poor with two high school drop-outs as parents who abused alcohol, drugs, and me. I've seen the worst of life: homelessness, violence, and hunger. Food stamps, food from churches, and barely scraping by were all I ever knew. I learned at a young age that my only out was hard work, integrity, self-discipline, and the never-ending pursuit to improve upon everything I do. After a decade of adapting this philosophy, I've distanced myself physically and mentally from the past and am now quite pleased with where I'm at.

Anything in this life is possible if you want it bad enough and are willing to do the work. Real estate is just one of several avenues that position us all to push ourselves, be entrepreneurs, and establish our independence in this world.

On the topic of motivation, here are a couple of quotes I really enjoy:

"Sleep is for those who are broke." - 50 Cent

"Stumbling blocks and stepping stones always look alike in the beginning." - a BP podcast

"Only those who will risk going too far can possibly find out how far one can go." - T.S. Elliot

2 Reply

Robert Slatkin

Leesburg, VA · Member since 2013 · 42 posts · 9 votes

12y

@Bill Gulley

Thank you for giving me the accepted meaning of those terms. I have heard "slumlords" used many times, but did not know the real life definition (or connotation).

@Joshua McGinnis

Wow! I don't recall ever seeing a post quoting T.S. Eliot alongside a quote from 50 cent. :)

I want you to know that I found your story to be very inspirational. Thank you for sharing it. You are obviously a strong person, and I wish you nothing but success.

0 Reply

Your Motivations?

Your Motivations?

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