So I have Extra Cash... Why Real Estate?

If you read my previous post you know a little about my history leading up to the decision to start investing in real estate, now lets talk a little more about that decision.

So, the question I get all the time... Why Real Estate?

The answer is simple.  Because it works for me and my goals... AND it can work for you and your goals too!

I invest in multifamily properties within 20 to 25 minutes of my home.  I do this because my goal is to create passive income to allow my wife to stay at home and be a stay at home mom for our children.  That is our #1 goal.  

Why the location?

I haven't developed the systems well enough to be able to have the control that I am comfortable with over an investment that is so financially costly.  By keeping the location near where I live and work I am able to exercise that control while I learn the processes and procedures to develop into a more 'hands off' and scale able model.  

Why multi-family?

This form of real estate investing tends to provide the best and most consistent cash flow across the country and certainly in our market.  

Why not single family homes?

For single family investing, to be as profitable (from a cash flow standpoint based on the geographic boundaries I describe above) as multifamily investing the price would have to be well below 50% of the median home price.  To find these prices you have to buy in less than desirable areas.

Why not flip houses?

This isn't a passive activity.  If I wanted to go on vacation for a month (without GREAT systems in place) I wouldn't be generating cash.  I want consistent cashflow, so at this time flipping houses does not help me accomplish my goal. 

Why not wholesale?

This can be time consuming and frustrating.  I feel many investors think they can wholesale for a year and then start buying and holding or flipping their own properties but they frequently struggle to get the wheels moving when trying to wholesale.  

Why not buy notes?

This on the other hand is an option for me.  I want cash flow and notes certainly provide that.  The problem is at this time I have no interest in owning land I have never seen in Texas.  So I would impose similar geographic restrictions as I had mentioned above.  The problem, finding notes in a really small area (in comparison to the entire US) is rather difficult.  If one came along I would certainly consider it!

So those are my why's... The cool thing about real estate investing is that you can have a completely different goal and you can use a completely different avenue of real estate investing to get to your goal!  The versatility of the MANY different real estate investing options allows for real estate to be able to accomplish almost any goal!

My next blog article will talk about my first deals.