If you have ever contemplated becoming a Real Estate Investor, there are things that you must understand. Once you cross the line, your life will never be the same. You will have crossed to the ‘dark’ side of making money. A 2% savings return will look paltry. Of course, just getting back your initial investment might also look like a windfall.
Things you take for granted now, will forever be gone. But you will persevere, for you know that the fruit will be there to harvest at a later date. Sooner or later, you will be able to pick the fruits of your labor and enjoy them. And no one will tell you that you have to wait until you are 62, or 65, or 67 or 70.
Your view on other properties will change. How much can you buy it for, how much can you sell it for. A distressed house on your own block becomes an opportunity, not an eye sore. A friend with money may become a partner, not someone to envy. A junk toilet sitting in your backyard becomes a trophy, not a piece of junk (not right away anyway…).
When a new large store is being built, you hope it is a home improvement store, not a clothing store. You look at all the colors of paint on the color wheels, and know that only one or two would you ever buy. You realize that many of the paint colors should be illegal to sell.
You are a Real Estate Investor!
How have your views, on anything, changed once you became more involved and in tune with the activity? Have you ever thought “I will never think or do something like that”, and then a few years later you want to “think like that”?
This is awesome! I think one thing I’ve learned the past 3 or so years of being a homeowner (and landlord) is that you need to 1) be willing to work and 2) be willing to continue to learn. It’s important to be able to problem solve and tackle projects that may be overwhelming for others. My wife and I recently decided that instead of selling our home when we move out we would like to rent the entire place out. I think it’ll be a good move long-term as we will only be about 55 even if we waited the full 30 years to pay off the mortgage. All that money coming in will be helpful down the road! But yes, I think I’m hooked. If I ever had a windfall from selling a website/business or a bonus or something I would seriously consider buying up some duplexes or even some condos or town homes to rent out. I’m looking forward to where real estate investing takes me the next few decades!
Thanks DC.
Keep your powder dry, if interest rates rise, home prices will fall. A cash buyer will be king, as they always are. Most of the worlds wealthiest people did it in real estate (or start-ups).
a year ago, home price in the prime area is $300-500K, now $600-1.8M? What’s going on? Anyways, we might be in the bubble around here. While I intend to keep my 4-plex for a long long time, but it’s tempting to split my 4-plex into condoes and sell separately for $250-$350K apiece. I’ll be set for life for sure! But I have to have the property pay off before the lender would let me do the conversion. Have you ever done a conversion before?
I think in some places, there is a large bubble. Home prices, and rents, are a function of wages. Unless wages have risen substantially, or somehow monthly costs have been lowered,. it is near impossible to stay that high.
Of course, if the demographic is changing, swapping out lower income people for higher income people, it is likely to keep growing.
I have thought about selling my apartments as Condos too. It’s quite a bit of an increase…
Love this one: You understand that every property could be a bargain… but only at the right price.
Thank you for the compliment!
Price is the key. If you pay too much, you will wind up a former real estate investor…