Why Do You Invest In Real Estate??

Question

Hey Investors!

My name is Matthew, and I'm 21 years old, I just closed on my first property about 5 months ago after wholesaling a good bit of them... It's a triplex in the City of Decatur, and it is a BEAUTY of a deal! Purchased it Subject to the existing mortgage and got a $600k property for a total payment of $13,000! Took a lot of cold calling to find this deal, lol.

I (Like many of you I'm sure) Love this industry, and the one thing that is even better than investing in Real Estate... is getting to know others who invest in Real Estate. It's just something about Real Estate investors that makes you different than the average Joe.

I am wanting to really get a better understanding of EXACTLY what it is that makes Real Estate Investors tick... while also building some connections with you all on here.

Matthew Von Dwingelo · Answer

Love that! (Not to get political) but I am going to quote the title of Donald Trumps book... it's the Art of the Deal! The ability to think outside the box to solve a problem, and get the deal done!

I hear you on the networking part! It is so essential to the success of an Investor to be a quality networker, it's where you can learn new ways to structure deals etc, EXTREMELY powerful!

"The rebel in me loves that" - lol

I hear you on that as well though! It sounds like for you, you just really love the ability to be creative with the goal of solving a problem.

Zana Blue · Answer

I like taking run down homes and making them into nice livable houses and putting painters... plumbers and agents etc... to work and still making some money for me at the end of the day...more satisfaction than the stock market...

Matthew Von Dwingelo · Answer

Ooooh thats a really good point, literally stimulating the economy.

I've never really looked at it that way before.

Matthew Von Dwingelo · Answer

Love that Dan! I really think you're hitting the nail on the head, its like a fear of overwhelm and not having the willingness to just take the first step!

And I appreciate that my friend... I definitely don't enjoy it either, but it gets the job done! lol

Nicole Heasley Beitenman · Answer

1) The freedom and flexibility--not just in terms of creating your own schedule and income but in actually doing deals. If you're creative, there are so many options out there.

2) The necessity of building relationships. I am such a people person. I love networking.

3) The need to go against many of the common beliefs we Americans have surrounding personal finance, education, real estate, etc. We investors know that the traditional route of college and a W2 job rarely leads to true success. We know that a primary home (as utilized by the average person) is not an investment. We know that, to be successful in REI, you have to go against the grain in many ways. The rebel in me loves that.

Daniel Haberkost · Answer

Yep, that's it, it just becomes fun for many of them and yes, many newbies read a book/listen to a podcast from someone with 1,000 units and feel intimidated which causes them to never start. I'm absolutely not an expert or an advanced investor BUT I've surrounded myself with people who ARE experts as they've been in the business 40+ years which has been invaluable as they're slowly pulling me up to their level. I'm naturally over-aggressive and jump into things too quickly. So I have no concerns about being successful in a bull market but I think a lot about how to properly hedge for the inevitable bear market. Talking to guys that have been doing this for decades and have seen several recessions it seems many investors lose everything when the market drops. So that would be my biggest "fear" but I'm well aware of it and plan accordingly.

I bet it did! Cold-calling is never fun but many people never do it because they're so afraid of rejection so the fact that you're using the method to get deals at 21 is awesome!

-Dan

Matthew Von Dwingelo · Answer

Hey Daniel! Thanks for the reply my friend!

That is too crazy! I feel as if you're really hitting the nail on the head. I've found that most investors who I speak with who have already created a high level of success are just doing it at this point for the love of Real Estate investing... like its a game really! A constant challenge of "How far can I take this". I also see very commonly that RE investors are looking for the financial freedom where they can spend quality time with their family, and more than that... it's the belief that it is POSSIBLE to see financial freedom. I fear that so many people never get started because they just don't see that it is possible to achieve a better life for themselves and their family. Or even worse they see that it is possible... but they just have too many fears holding them back.

After checking out your account It seems like you've gotten a great start into RE investing, I'm a bit curious as to how fears transition from the beginner stages of REI through to the advanced stages. If you don't mind me asking... what would you say is your #1 fear investing in RE as of today?

And Yes!!! it's an awesome deal!! It took a WHOLEEEE lot of cold calling to find this bad boy! lol

I'm truly blessed.

Daniel Haberkost · Answer

@Matthew Von Dwingelo funny that I should come across this post, I just had a conversation with my builder (who also invests) about this. Of course there are the common answers about financial freedom and such (which is a BIG reason) but we all know that investors who obtain financial freedom never stop there. For me, it's fun, everything I do in RE is enjoyable and I don't really consider it work. Hashing out deals, looking for discounted properties, collecting properties, speaking at meetups, it's just fun. There's nothing like the feeling of closing a deal. I've also made several good friends through RE and now we do deals together.

Also, sounds like you got a great deal on that triplex, nice!

Why Do You Invest In Real Estate??

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