The benefits real estate investing have been described, discussed and trumpeted again and again on this blog and elsewhere. And all for good reason, as real estate investing can change your life by creating wealth, freeing you from a full-time job and allowing you time to do the things you are most passionate about and enjoy. To me, one of the other main benefits of becoming a real estate investor that I rarely see mentioned, however, is that it allows you to set your own rules.
One of the hardest things about being in a full-time, rat-race job is that someone else sets all the rules: when you show up, when you can take off, how much you get paid, who you work with, etc. Real estate investing is a wide open field with so many variants and possibilities that it is one of the few ways that we can actually take more control over our lives. By being able to set their own rules, real estate investors really do reach a level of freedom that I do not think many others achieve.
To be sure, there are some limitations on how far we can go. Obviously, we cannot (and should not) discriminate against protected classes or commit fraud or act in a dangerous manner. Otherwise, though, an investor can, after some education and experience, develop their own rules to satisfy what they want to do and achieve in their own life.
So how can you go about setting your own rules? Here are 5 ways to consider.
The 20 Best Books for Aspiring Real Estate Investors!
Here at BiggerPockets, we believe that self-education is one of the most critical parts of long-term success, in business and in life, of course. This list, compiled by the real estate experts at BiggerPockets, contains 20 of the best books to help you jumpstart your real estate career.
5 Ways Real Estate Investing Gives You Freedom to Make Your Own Rules
You Can Set Rules on the Type of Investing You Want to Do
Real estate comes in all shapes and sizes. You can choose which shape and size best fits you. You make the rules about what you want to invest in. It could be with single family homes. It could be apartment buildings. It could even be convenience stores or churches or condos. It could be all of the above. You are in charge, and no one can tell you to do otherwise.
You Can Set Rules on Your Investment Strategy
Do you want to buy and hold? Do you want to rehab properties for retail sale? Perhaps you want to do a bit of both along with some money lending and note buying. Whatever you decide to do, you also get to set the rules. No one will force you to become a landlord. And no one will force you to become a rehabber, either. You are free to look for opportunities wherever they may present themselves.
You Can Set the Rules About Where You Invest
Do you want to invest in the city where you live? You can. Do you want to be like thousands of others around the world and invest in Memphis, TN? You can. Do want to do only suburban properties, rural properties or mobile homes? You can. Want to do it all? You can do that, too. You are only limited by your own goals and desires, and there is no right or wrong place to invest. You have the choice, and you make the rules.
You Make the Rules About When You Want to Work
If you want to work from 9 to 5, you can — but you do not have to. You do not even have to work 40 hours per week, but you can work 80 if you want to. You can work as little or as much as you want in your real estate investing business. It is completely up to you. Are you a night owl? Then work at night. Like to get up early? Then beat the crowds. You set your own rules. Real estate investing lets you be the boss, and time clocks become a thing of the past.
You Can Even Set Your Own Rules Regarding Money
Do you get tired of the banks and their fees? Do you find hard money lenders becoming a bit too hard? Believe it or not, you can set your own rules here as well by finding and working with private lenders, for example. With private lenders, you have people who you can actually talk to and work together with on various deals that banks would never touch.
Plus, you can be choosy about who you work with. If a particular lender wants a higher return than you are willing to give, then you can pass on the deal. You can actually set your own rates and terms (try that with a bank) and still create a win/win situation for everyone.
And of course there are no rules on the rules you choose to set for yourself. They can be as rigid or as flexible as you like. You can modify them as you discover new streams of income, as market conditions change or simply because you want to. Hey, you make the rules! And to me, that is one of the most beautiful and powerful aspects of being a real estate investor.
What rules have you set for yourself? What rules do you no longer have to follow since becoming a real estate investor?
Please share with your comments.