Podcast Summary
Personal goals in real estate investing: Success in real estate investing is not measured by the number of properties owned, but rather by aligning your portfolio with your personal goals.
The number of doors or properties one owns is not the ultimate metric of success in real estate investing. Instead, investors should focus on defining their personal goals and working backwards to build a portfolio that supports those goals. Chad Carson, a successful investor and author, shares his philosophy of being a "small and mighty investor," which emphasizes the importance of living the life you want and using real estate as a tool to achieve those goals, rather than making money or accumulating properties the primary focus. This conversation offers valuable insights for investors looking to reevaluate their priorities and approach to real estate investing.
Role models and goals: Looking at role models like Benjamin Franklin can help rekindle imagination and determination for potential investing goals. Utilize resources like PropStream to find off-market opportunities and Steadily for tailored landlord insurance.
Identifying your "why" or setting clear goals is crucial for the beginning of your investing journey, but many adults have lost touch with their imagination and creativity due to the responsibilities of adulthood. To help rekindle that excitement and determine potential goals, it's essential to look at role models like Benjamin Franklin, who became financially independent and used their resources to pursue other passions. Additionally, off-market opportunities can expand your deal options as on-market inventory becomes scarce. PropStream, a leading real estate data provider, can help you find motivated sellers using various filters and offers tools for lead automation and marketing. Lastly, Steadily provides landlord insurance tailored to real estate investors' unique needs.
Real estate investing for all: With platforms like Connect Invest, real estate investing is accessible to everyone with $500, offering a steady income stream. Identify your goals and choose a path that aligns with your aspirations for financial freedom.
Real estate investing is no longer just for the wealthy and well-connected, thanks to platforms like Connect Invest. With as little as $500, you can unlock premium deals and secure a steady income stream. However, it's essential to identify your goals and understand that real estate can be more than just a means to an end. Some people may view it as a way to retire early or have more flexibility, while others may aspire to build a large business. Regardless of your goals, it's important to remember that there's no one-size-fits-all approach, and it's okay to prioritize time and flexibility over maximum growth. Remember, financial freedom comes in various forms, and it's up to you to choose the path that aligns best with your aspirations.
Time budgeting in real estate investing: Investors should consider both financial metrics and time commitments when measuring success in real estate investing, and create a time budget to make informed decisions and potentially find more time for investing
Success in real estate investing is not solely measured by financial metrics like ROI or door counts, but also by the time and lifestyle considerations. The speaker emphasizes the importance of tracking both cash flow and net worth, but also encourages investors to consider the time they have and how they want to allocate it. By creating a time budget and tracking how hours are spent, investors can make informed decisions and potentially find more time for real estate investing. Ultimately, a balanced approach to measuring success in real estate investing includes both financial and time considerations.
Prioritizing quality over returns: As investors grow in wealth, they may prioritize lower hassle, higher quality properties for time, peace of mind, and financial growth. Pruning portfolios can help reduce risk and debt, but finding the right balance requires trade-offs.
As real estate investors grow in their careers and build wealth, they may prioritize owning higher quality, lower hassle properties over constantly seeking higher returns on investment. These properties offer not only more time but also peace of mind. Investors can prune their portfolios of less optimal properties, reducing risk and debt, to focus on measurements of time, peace of mind, and financial growth. However, finding the right balance between these measurements can require trade-offs. Some investors may prefer managing their properties themselves, while others may hire managers to manage their portfolios. Ultimately, it's important for investors to understand their goals and resources to make informed decisions about their real estate investments. Additionally, investors can create deals that fit their specific goals and circumstances, rather than settling for what's available.
Real estate investing goals: Having a clear financial goal in real estate investing, such as a certain income level, can provide direction and peace of mind, rather than feeling overwhelmed by endless opportunities.
Having a clear and specific goal in real estate investing, such as owning a certain number of rental properties free of debt, can provide peace of mind, financial security, and direction for day-to-day efforts. Door count, or the number of properties owned, can be an easy measurement, but it's not the ultimate measure of success. Focusing on a specific financial goal, such as a certain income level, can help guide decisions and provide a sense of direction, rather than feeling overwhelmed by the endless opportunities in real estate. Ultimately, it's important to consider what truly matters to you and align your goals and actions accordingly.
Vanity Metrics in Real Estate: Focusing on the number of units in real estate investing can distract from what truly matters, such as cash flow, efficiency, and long-term growth. Success is not limited to large properties, and it's essential to measure what's important to you.
Focusing too much on the number of units in real estate investing can be a vanity metric that distracts from what truly matters, such as cash flow, efficiency, and long-term growth. It's essential to measure what is important to you and not just what is popular in real estate circles. Moreover, success in real estate is not limited to large multifamily properties, and smaller properties like single-family houses can also help investors accomplish their financial goals. Celebrating and encouraging people who have realistic goals and are content with their achievements, regardless of size, can help shift the narrative and make it cool to be happy with what you have.
Financial freedom and personal fulfillment: Financial freedom enables individuals to pursue their passions and make a difference in society, providing greater fulfillment than just growing wealth.
Financial freedom allows individuals to pursue their passions and make a difference in society beyond just making more money. The speaker shared personal experiences of how financial freedom enabled his wife to experience her dream day, which was more rewarding than any bonus she had received at her job. He emphasized the importance of considering how one wants to spend their days and encouraged listeners to think beyond just growing their businesses or portfolios. The speaker also highlighted the role of platforms like PropStream in helping real estate investors find motivated sellers and close deals efficiently. Overall, the conversation underscored the importance of aligning financial success with personal fulfillment.
Real Estate Portfolio Management: A real estate portfolio becomes too big when an investor takes on unnecessary risk for minimal benefit, it's important to maintain and preserve what you have instead of continuously growing.
For real estate investing, it's important to know when to stop growing and focus on maintaining and preserving what you have. Peru is currently at the top of Chad's travel list due to his fond memories of the food, people, and culture. Regarding real estate, Chad believes that a portfolio becomes too big when an investor is taking on unnecessary risk for minimal benefit. He likens this idea to a football game where once a team has won, they don't continue taking risks in the fourth quarter. Chad also experiences FOMO but reminds himself to focus on being an excellent and quality investor, regardless of the size of his portfolio. Chad has chosen not to invest in syndications due to his preference for keeping things simple and understanding the risks involved. Overall, Chad's approach to investing is about finding balance and staying true to one's goals.
Real Estate Investing Risks: Consult with advisors, only invest disposable income, past performance doesn't guarantee future results, and be prepared for potential losses when investing in real estate.
Investing in real estate, as discussed in this podcast, comes with inherent risks and it's crucial to consult with qualified advisors and only invest money you can afford to lose. Past performance does not guarantee future results. The opinions expressed during the podcast are those of the hosts and participants, not of BiggerPockets, LLC, which disclaims all liability for damages arising from a reliance on the information presented. In essence, be informed, seek expert advice, and be prepared for potential losses when investing in real estate.