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The Real Estate Way to Wealth and Freedom - Jacob Ayers EPISODE 339, 28th August 2020
10 Things to Be Thankful For - Friday Fundamentals
00:00:00 00:08:59

10 Things to Be Thankful For - Friday Fundamentals

Real estate investing can be an emotional roller coaster, from the highs of closing on a home run deal to the lows of losing deals, and dealing with the many challenges that every investor faces.

10 things to be grateful for as a real estate investor:

1.      You can be creative to solve problems. Being a real estate investor, your primary responsibility is that of a problem solver. Most of the time there isn’t a policy, procedure, or go-by for you to turn to. Instead you’re able to be creative in your approach to solving problems. You’re also paid in direct proportion to the size of the problems you can solve.

2.      Leverage. Ahh, yes, leverage – one reason why real estate outperforms other asset classes. As a physical asset, that has historically appreciated (both due to natural appreciation combined with inflation of our currency), banks, individuals, and other institutions are willing to lend borrowers, just like you and I, money to purchase real estate, since their money is collateralized (i.e. – backed) by a physical asset. In the U.S. we’re able to borrow long-term, fixed-rate loans, often as long as 30 years, with currently historically low interest rates. This leverage allows you to spread your capital across more than just one property, and thus control more and more real estate.

3.      No glass ceiling. There is no limit to your success as a real estate investor, other than the limits you place on yourself. Want to buy 1 house a year for the next 20 years? Fantastic. Want to scale your real estate portfolio to 10,000 units? More power to you!

4.      Creating win/win scenarios. Real estate investors sometimes have the perception from others as greedy landlords, Scrooge McDuck type people only concerned about their own well-being. But that couldn’t be farther from the truth. As real estate investors, we must create win/win scenarios for ourselves, the residents who call our property home, the communities we invest in, and our investor partners.

5.      Compounding success. Real estate investing is like eating potato chips. It’s hard to have just one. This is because your success compounds with real estate. Starting out, you create a small snowball and with time it grows larger and larger, almost impossible to stop.  

6.      Wealth creation. Real estate investors become wealthy over time due to appreciation, principal pay down, and inflation profiting. As a property increases in value over time, the tenant is paying down your mortgage for you, all while your mortgage payment is paid back at a fixed rate in nominal dollars.

7.      Financial freedom. Real estate investors grow rich in their sleep. If you follow the principles we talk about here on the show, then you’re investing in cash-flowing markets that generate positive cash flow. With enough of this passive cash flow, one can reach financial freedom. The tax benefits of investing in real estate are an added bonus, allowing you to keep more of the money you earn in your pocket.  

8.      Knowledge. There is a plethora of information and resources at your fingertips, from podcasts to books, meetup groups, conferences and so much more.

9.      Relationships. Real estate is a team sport, and your success is directly related to the quality of your relationships. You get to develop relationships with partners, team members, the communities you invest in, and the residents who reside in your property.

10.  Fulfillment. As a real estate investor, you find problems, create solutions, and are compensated for doing so. But more importantly, you’re p[providing one of the fundamentals needs of people – housing. You can see a direct impact of your actions, which gives you a sense of achievement and fulfillment.

So, there you have it – 10 reasons to be grateful as a real estate investor. So often we get caught up in our own version of the rat race – growing our portfolios, scaling our operations, becoming better investors, that we can forget to stop and remember all we have to be thankful for. This is an exercise that can be done in every aspect of your life. I encourage and challenge you to think of 10 things you’re thankful for in any aspect of life you want. Write them down, reflect on them, and use them as inspiration to continue to engineer the lifestyle you want.