Today, I want to take a break from tips and talk about goals, and what the purpose of investing in real estate is.
Everybody has their own reason for why they're investing in real estate, so that purpose is different for different people.
Some people do it to subsidize their living costs, by purchasing that first duplex where they live in one unit and rent out the other. It helps people get off the ground and make some financially smart decisions towards the beginning of their adult lives.
Other people are doing it for the purpose of building a retirement portfolio. Some people want to be able to retire in their 50s or 60s with just real estate that they own as their sole income. They don't want to worry about the price of a stock, and they want to have some consistent cash flow from the rental properties that they have.
Some people do it because they want to be come wealthy through the means of real estate. Some people don't build a portfolio just to retire with a comfortable lifestyle, but continue building a portfolio in order to grow their net worth--rolling property after property into larger property after larger property, and doing bigger deals to continue that path onwards and upwards.
And some other people just do it for fun. Some people really enjoy the process of investing in real estate, or managing properties, or working on projects. They do this because it's their passion rather than as just a means of building wealth.
When you're looking at an investment property, and you're thinking about, "what is it that I'm going to do next?", think about why you're doing it in the first place. Is it just to get a little bit extra in terms of income so that you're able to better afford some of your monthly expenses? Is it to grow your portfolio for your eventual retirement? Is it something you want to pass on to your kids? Do you love doing it? Is it something you're truly passionate about and want to grow every single day? Or is it because you're looking to find a means of growing wealth through the medium of real estate?
Think about that whenever you're looking at whatever your next property is, and keep that big goal in line with all the little purchases you might be making. If you have any real estate goals that you'd like to accomplish in the next 5 years, I'd love to hear about them--feel free to drop a comment, or simply reach out to me.