Get rich quick: dispelling a myth
In my last post I talked about residual income in regards to real estate investing and how such income can free up your time. Of course this additional time can come now or later. For example, let’s say you’re operating monthly on a relatively high positive cash flow by successfully owning and renting out a few duplexes. Potentially, this extra income could allow you to cut back on hours spent at the office. Or, how about this example: you decide to invest in a long-term hold, selling after forty years of appreciation. This could provide you with an earlier retirement and more time to travel or pursue other passions.
This all sounds lovely and lucrative–and it certainly can be–but here’s the truth of it–none of the above arrangements is arrived at quickly. To set up successful investments, it takes time. Sure, there the stories you hear about someone who purchased a home at 130k, the market surged suddenly, and they sold for 230k after minor cosmetic repairs.
Stories like that are amazing and fun to tell around the water cooler (even more fun if it’s your story) but this is not normal. And if beginner investors expect immediate success such as this, reality–quick and hard–will demolish such dreams. And doesn’t that just make sense?
‘If it sounds too good to be true, it probably is.’
But what about those smart investors from the first paragraph. They are real people making real money through real estate investing. But, these are the folks who didn’t believe some guru pitching ‘get rich quick’ products. (Of course, for the sake of fairness, there are gurus/teachers who don’t sell the ‘get rich quick’ lie.) Instead, these folks did their research, worked with professionals, saw a lucrative opportunity before them, and pounced on it.
So don’t discount real estate investing. It’s been around a long time and isn’t moving. More and more people are become real estate investors as more emphasis is being placed on retirement planning. Of course, I always recommend a diversified financial portfolio–that’s just prudent planning–but consider this time-honored, moneymaking investment option as a profitable addition.