Why you should start real estate investing
February 7, 2022•472 words
Investing in real estate is honestly a no brainer. I'm surprised I didn't see it sooner, I'm surprised MORE people aren't doing it. I know I lived under the impression that "regular" people only bought houses for themselves. That the only people who owned multiple properties were high rollers, whales, who had money to throw around.
Boy, how wrong was I. It's the big hidden secret. First through Grant Cardone, who generally isn't my kind of guy. He's a hard driver, an "always do more" kind of guy. But when you need to get your ass in gear, it's not a bad voice to listen to. But his real estate talk, I figured it was mostly a big pitch for HIS real estate fund. Then I learned more. And it's legit.
It's the one big hedge against inflation. Better than cash, better than stocks because it's in YOUR control. Sure, the market isn't, but your response is.
"But really Reese? How on earth do you have the money to just go BUYING properties up? And how will you do that AND a full time job?"
That's just it. I don't have the money. But I don't need to. Because banks LOVE giving out mortgages. I'm starting to sound like Grant here, but hoooooo boy. The entire 2008 crisis was because they liked giving out mortgages TOO much. So they learned their lesson a little bit, but nothing really changes.
So I'm gonna take money that 100% isn't mine, and buy a multifamily house that makes money. The first house doesn't need to make a lot. Just enough to give me a little extra every month. If I can stack an extra 400, 500, 800 dollars each month into my short term savings, the next house comes that much quicker.
And then with the next house, it's 2K extra a month. And it's taxed significantly less, so I take home more. Once I match my W-2 income, I can be less fearful of getting hurt, sick, or losing hours to weather. And even better, I can be less worried about just taking time off when I want to. It doesn't mean I just call in that morning to say I'm not coming, but PLANNED absence. A weekend getaway. A week in Florida. A 3month escape overseas. Or even just time at home to explore other interests and opportunities. I can take the winter off. Go skiing, enjoy myself a little bit, instead of hating every snowstorm that comes through because I'm out shoveling.
Real estate provides FREEDOM. It's not about serving the world, or helping people. Maybe it is for some people. But to me, it's all about providing security for my family and therefore freedom to do what we want. We can work if we want to, but have no one master.