10 Things to Be Thankful For - Friday Fundamentals

Published: Aug. 28, 2020, 3 p.m.

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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\\u2019t a policy, procedure, or go-by for you to turn to. Instead you\\u2019re able to be creative in your approach to solving problems. You\\u2019re also paid in direct proportion to the size of the problems you can solve.

2.      Leverage. Ahh, yes, leverage \\u2013 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. \\u2013 backed) by a physical asset. In the U.S. we\\u2019re 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\\u2019t 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\\u2019s 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\\u2019re 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...'