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What is the quality of life of a real estate investor?
I'll start my finance degree in the fall and aim towards becoming a real estate investor. What is life like starting out as an investor? What is life like 10 years after starting? 20? #finance #money #real-estate #real-estate-investing
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Sanjay’s Answer
The life of a Real Estate Investor can be very lucrative! It takes years of saving, researching and then ultimately taking the leap and making your first investment. I worked hard at the age of 14, saved and then acquired multiple single family residences (SFH), then turned those into Duplex (2-unit) properties and ultimately into Commercial Multi-Family (5+ units). It takes a lot of work and the old adage location, location, location still holds true. Find a location close to you (ideally within an hour's drive) and start out small. I would recommend reading Rich Dad, Poor Dad by Robert Kiyosaki. There are so many Real Estate Books that help you with financing, researching key attributes of a property, management of the property and most importantly, keeping you motivated to continue investing throughout the course of your life. In short, Real-Estate Investing can be very exciting and lucrative!!
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Job’s Answer
Stressful. You tend to use many loans to fund your projects and hope that the deal cash flows, no large tennant defaults, maintenance is kept up, competing new properties do not steal your tennants and the stress of owing banks money. I am a retired real estate and taxation attorney who has built over 900 single home lots, 500 high grade homes and over 1000 appartment units and sold then. It was very stressful as you need all construction to stay on timem and on budget. Then you need to see the units. Once completed yuo have made a large sum of money, but normally you are moving on to a larger project that will start the process over.
It depends on how you intend to invest, buy houses, appartments, small strip malls, office buildings, ect. I would advise getting a job at one of the big real estate investment/management companies in your area to learn the terminology, how the business is run, financial modeling, legal issues, contractural issues and attain a good overall knowledge of the industry, then you would be better trained to make good investments. A bad real estate investment can cost you all you invested and send you into bankruptcy quickly. When I was 27 I owed Wells Fargo $7,500,000.00 in 1987. Iraq invaded Kuait, and was blowing up all the oil wells. I was fearful of a recession and was sitting on 200 lpta, 35 finished homes, 75 under construction and had a 350 unit appartment under construction. I thought I was dead, it was overwhelming, the stress was horrible. In the end I did very well, but the business has waves. Events like to 2008 housing bust was a killer to some that had very little equity in their properties and went under water. My wife and I bought 5 houses at the bottom at about 110,000.00 a piece. Last year i sold them for $275,000.00 a piece and purchased an appartment building.
It can be very profitable but many people loose their money due to lack of knowledge and common sense. Learn the industry prior to trying to invest.
It depends on how you intend to invest, buy houses, appartments, small strip malls, office buildings, ect. I would advise getting a job at one of the big real estate investment/management companies in your area to learn the terminology, how the business is run, financial modeling, legal issues, contractural issues and attain a good overall knowledge of the industry, then you would be better trained to make good investments. A bad real estate investment can cost you all you invested and send you into bankruptcy quickly. When I was 27 I owed Wells Fargo $7,500,000.00 in 1987. Iraq invaded Kuait, and was blowing up all the oil wells. I was fearful of a recession and was sitting on 200 lpta, 35 finished homes, 75 under construction and had a 350 unit appartment under construction. I thought I was dead, it was overwhelming, the stress was horrible. In the end I did very well, but the business has waves. Events like to 2008 housing bust was a killer to some that had very little equity in their properties and went under water. My wife and I bought 5 houses at the bottom at about 110,000.00 a piece. Last year i sold them for $275,000.00 a piece and purchased an appartment building.
It can be very profitable but many people loose their money due to lack of knowledge and common sense. Learn the industry prior to trying to invest.
Steve Lewis
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Steve’s Answer
This depends on what area you want to invest. Residential? Commercial? Do you want to be a landlord, broker, property manager, etc? What area do you like the most?
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Stephen’s Answer
Quality of life is dependent upon quality of work. The more you do in Real Estate, the more you will get.