BUCKET LIST
“What would need to happen in 5, 10, 30 years for you to feel successful?”
This is an actual essay question from a scholarship application that my teens are filling out. Their task is to write an essay. As adults, and real estate investors, our task is much more visceral.
I love this question! Some of you will recognize the concept of “begin with the end in mind,” from Stephen Covey’s 7 Habit’s of Highly Effective People. We are big fans of taking that first step, but those steps are much more useful when they are made with intention, direction and focus.
So let’s get real! Whether you’re an independent investor, flipper or developer, how will you measure your success? Where do you want to go? And if you are a money lender or joint venture partner, what would make you feel like your project is a success?
Often people respond with a number of doors. Balderdash! Talk to anyone with many doors, and it’s not the doors that make you happy or give you a feeling of success.
Some real estate investors are growing wealth, or even legacy wealth. Their goal is to acquire a number of properties, then systematically pay down those mortgages. These investors are thinking long-term. But what will keep these investors going through all the challenges is to stay focused on what that wealth will give them, their family, their favourite charity, ….
Some real estate investors look for income. This can be cashflow (harder these days), but more likely these investors are private lending at a fixed rate. Some people will lend from within their RRSP’s. YES! 100% legal, and the income stays protected in the RRSP until age requirements start to demand withdrawl. Some people are already retired and lending from a Line of Credit, or cash reserves. The “income” is from an investment, and has different tax implications than employment (we always suggest to check with your accountant and/or financial planner about any investment strategy). And if this is a goal for you, what does the income bring? Retirement income? Travel income? Supporting family members with financial needs?
Another income strategy is flipping, or partnering with someone on a flip. When a property is renovated, and the value rises, the investors can sell (traditional flip), or refinance (this is known as a BRRR). And, to be blatantly redundant, what does the money from the flip mean to you? Your lifestyle? What does the risk/reward dynamic of flipping mean to your family?
Finally there are a few investors with multiple strategies, or idealistic goals. In today’s market, some investors want to create X number of affordable housing units. Or maybe they want to be that bridge to home ownership, by investing in Rent to Own projects. Are you one of the investors who is motivated by making the world a better place—even if it’s one home at a time?
Our blog is designed to be a 5-minute-or-less read. But let me share with you that the answer to the original question today will probably take more than 5 minutes. Defining success, for yourself and those you directly impact, is trickier than it sounds. A good way to begin the deep dive is to consider all the items on your bucket list – things you want to do before you “kick the bucket.”
When an investor knows WHY they’re working with real estate, then the first step, and all the steps after that, become much more deliberate—much more success-FULL.
This weekend, we can recommend 2 fabulous events for real estate investors to connect with experts:
https://www.investorlife.com/bootcamp-blitz
Join Corey and Tiffany Young as they provide a wealth of experience and information to new investors, or investors looking to get re-charged.
Or: @acelifeinvestors on FB. They’re hosting a brunch with 3 powerhouse female investors on Sunday. If you’re in Edmonton, and love making connections in-person, what could be better?
