Let’s be real.
Most people get into real estate on the pipe dream of making the all elusive (say it slowly with me) 1 Mill-i-on dollars.
But is making a cool million enough anymore to be considered wealthy?
UBS asked 4500 affluent investors that had approximately 1M worth of assets to invest that very question. (By the way their worth didn’t include their homes value).
Check out the video below for their responses:
Nearly 70% said no, having a million to invest didn’t feel like enough for them to be considered wealthy. So what would?
Having 5 million to invest.
What most real estate investors claim would make them wealthy is “never having to work again.” This response may be a bit dated, now. Not having to work is just considered rich.
But what does being wealthy really mean? It all depends on who you ask, and what your goals are, really. Some even boil it down to having more income than you have obligations. For those surveyed, they felt like having 5 Million to invest would be enough such that they would no longer have a constraint on activities. (You know, when the feeling strikes to go on a yachting adventure, etc).
Beyond that, they’re keeping more cash to feel secure, at least 20%. But, they also felt pretty good about their situation over the long term
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One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
Asking the Jones’
So who decides who’s rich, who’s wealthy, and what’s enough?
Perhaps most importantly, is Uncle Sam. The government considers you top of the one percent if you make more than 325K a year.
A different poll by those making $100,000 stated that felt like those who were making 1M a year were the upper one percent, though.
This goes back to those that have over a million…who consider those that have over 5M to be wealthy.
What’s YOUR wealthy?
In relative terms, what does financial freedom really mean to you?
You don’t have to share your exact numbers here, but what about sharing what it would take to get to that point?
Do you think it’s still possible to make a million in real estate in 5-10 years? (You should read Brandon Turner’s article on this).
I’d love to hear some of your goals and what it would take to get there. Please show some love and share this on G+, Facebook, and Twitter, too!
To your success!