What’s the number one question we get asked at ANY real estate investor’s meetup? “How many doors/properties do you have?” It’s a common filter investors use to categorize other investors. 1 door? Ok, baby investor. 10 doors? Ok, you’ve earned the right to have an opinion on small residential conversation topics. 50 doors? So is that one building, or do you really know what you’re doing?
Balderdash!
It’s a little like collecting baseball cards. Would you rather have 100 “Joe Shmoe” cards (some guy no one has ever heard of), or would you prefer to have a few cards that are valuable to you?
Here’s the thing. Real estate investing is NOT a make-work project. I have yet to meet someone who loves extra paperwork, or 2 am clogged toilet calls. We invest in properties to create our financial future. And the beauty of it is that each of us gets to decide what we want in our future.
If you already have a great job, and a great pension, maybe the cashflow from 3 properties is just “fun money” or “travel money.” In contrast, maybe you are an entrepreneur with no pension. In this case, buying 8 properties with positive cashflow, then paying down the mortgages over 15-25 years, will give you both a nest egg (equity) and cashflow when you are ready to retire. Compare this again to those of you with a grand vision: leaving a legacy for family, or to donate to a cause you are passionate about. But again, do you really NEED more than 17 properties to make your vision a reality?
It all comes down to math—sorry, but your Grade 5 teacher was right! You and your financial planner (and partners) need to decide how much you need, and how much you want. Then create a plan to get there (real estate, stocks, other investments, …).
Whether it’s the playground or the retirement party, you don’t “win” by having the most hockey cards or Doors. You win when you have what is valuable to you. When you reach your financial freedom, and all the peace, joy and meaning that brings to your life and your loved ones.
