What`s Your Underlying Reason For Investing?

[AndreiAngelkovski]

Hey Everyone,



Perhaps you've thought this through...or perhaps you haven't, but I encourage you to think about it again as it is really the foundation of WHY we are doing this in the first place.



Every professional athlete has a coach. Every professional singer has a vocal coach. If you can think of any high intensity profession I am certain they have a coach or a mentor. Even the best of the best have coaches. These key people in our lives guide us on our path to personal success. Most real estate investors DO NOT have a clear `WHY` they are investing in real estate. Money and Freedom are NOT big enough reasons. Especially when they respond with `Because I want to be rich` or `Because I want to quit my job`. There is more to it than just that. There is an underlying reason to this and I want you to think about it after watching this video with Joey Ragona from The Engaged Investor. Let`s be honest for a minute here`without a strong enough emotional reason to move forward, you will lack commitment. If you really think about it, EVERYONE wants to be wealthy, but most are not willing to do whatever it takes to become it.



Hope this video can encourage you: What's Your Underlying Reason

 

[Rickson9]

Speaking for myself, investing is an ego-driven addiction. I am wired to hoard assets. Investing really serves no other purpose for me. It has all been luck.



This should not be confused with hard work. I don't do hard work.

 

[kir]

tax strategy, monthly cashflow, and equity.



What else is there?

 

[JimWhitelaw]

I like Rickson's honesty.



"Anyone who tells you they got into rock n` roll for reasons other than girls, fame and money is full of s***."



- Gene Simmons

 

[wgraham]

I started investing to become wealthy but I quickly found out that reason didn't really cut it.



I put a lot of thought into why I wanted to put my neck out and it came down to this....



I never wanted to live a regular life. I despised the 9-5 for 40 years and a pension (maybe) at the end of it. I despised the idea of using up my best years working for someone else's agenda. I wanted and needed more. I want to get to the grave with no regrets.



I wanted to give back. I wanted to be memorable. And I wanted to do things that people only talked and dreamed about. I wanted my family to have opportunities that provided us with a lifestyle and flexibility. I needed to help those around me that aspired to be more. I had dreams and desires that I needed to fulfill before my time came. I wanted my boy to experience the world through eyes that saw the beauty in the natural world. I wanted the opportunity to send him to an education system that didn't turn out the drones of tomorrow. When my family needs assistance (I am coming to that age where our parents are starting to feel the effects of time) I wanted to be there for them. I wanted to define my day, week, quarter, year and decade. I wanted my problems to be MY problems and not someone else's agenda. I needed to live a life that mattered.



I hated what the financial system was doing to people. I didn't like having to live a corporate life. I didn't want to depend on a government that may or may not be there for me in the end. I despised paying more tax than Buffet.



I saw people coming to the end of their years with nothing to show for it. No stories to tell. No passion. No bank accounts.... just dependance on a system that had ultimately let them down. Just regret. I won't ever be that person.



Getting clear on your why is what gets you through the hard times. Its also what makes the good times just a little more sweet. Be purposeful. Be a little reckless. Dream.

 

[kfort]

My short version answer is that I do this to make my life, the lives of investors, and others I care about easier.

My long answer version is a collage and a story those of us here know as our personal Belize.

 

[Thomas Beyer]

[quote user=wgraham]I started investing to become wealthy but I quickly found out that reason didn't really cut it.



I put a lot of thought into why I wanted to put my neck out and it came down to this....



I never wanted to live a regular life. I despised the 9-5 for 40 years and a pension (maybe) at the end of it. I despised the idea of using up my best years working for someone else's agenda. I wanted and needed more. I want to get to the grave with no regrets.



I wanted to give back. I wanted to be memorable. And I wanted to do things that people only talked and dreamed about. I wanted my family to have opportunities that provided us with a lifestyle and flexibility. I needed to help those around me that aspired to be more. I had dreams and desires that I needed to fulfill before my time came. I wanted my boy to experience the world through eyes that saw the beauty in the natural world. I wanted the opportunity to send him to an education system that didn't turn out the drones of tomorrow. When my family needs assistance (I am coming to that age where our parents are starting to feel the effects of time) I wanted to be there for them. I wanted to define my day, week, quarter, year and decade. I wanted my problems to be MY problems and not someone else's agenda. I needed to live a life that mattered.



I hated what the financial system was doing to people. I didn't like having to live a corporate life. I didn't want to depend on a government that may or may not be there for me in the end. I despised paying more tax than Buffet.



I saw people coming to the end of their years with nothing to show for it. No stories to tell. No passion. No bank accounts.... just dependance on a system that had ultimately let them down. Just regret. I won't ever be that person.



Getting clear on your why is what gets you through the hard times. Its also what makes the good times just a little more sweet. Be purposeful. Be a little reckless. Dream.







Well said Wade. VERY WELL !! Couldn't define it better.



I left IBM after I realized a large corporation has its own internal political life for those that wish to advance.



Some people (like you and me and many REIN members) aren't cut out for the large corporate world. I struggle with leadership in my firm of 6 people now managing almost $100M in assets. But, I now know what I am great at and what has to be delegated, for a well functioning & profitable organization (or a group actually, with 12+ firms)



I realized multi-family makes more sense after I owned my 3rd condo while running full tilt in my software consulting career. It is more scalable and allows more wealth per green or blue $ invested [blue $ = time] .



I love the wealth aspect of real estate, the cash-flow PLUS equity creation (through value upside and mortgage paydown), for me, my family, my investors, my partners, tenants, employees and the world at large (or if you want, God's Kingdom) [not necessarily in that order]. Even in a recession we paid our mortgages down $3M from 2008-2010 although values were flat or slightly negative in many instances, and provided homes to 1000+ people and work/incomes for 20+ employees and 100+ contractors. That feels good.



As I mentioned in my presentation last weekend, the wealth planning we see advocated by many is primarily for the wealth of the planner. In other words, retirement planning is mainly for the retirement of the planner. Financial planners are sales people of financial instruments.



A profitable win/win oriented financial model can be built with real estate, with modest fees (especially upfront) and win/win equity split for upside, after investor is paid back.



Man plans .. and God laughs. There is another dimension beyond me (or you) too !

 

[Rickson9]

You guys are all better human beings than I. My investing benefits only myself and my family. It doesn't help anybody else.

 

[invst4profit]

My only reason to invest was to supplement my employment income and ultimately supplement my pension income so as to allow me to retire early on a reduced pension.

I did not want to give up my day job or become independently wealthy. I prefer the security of being employed by a large corporation, I did not wish to work as hard as I would have to be fully supported by my investments, I do not want the responsibilities associated with great wealth and I prefer the security of a guaranteed pension.



I knew exactly what I needed, wanted and ultimately achieved. A comfortable middle class retirement.

 

[RedlineBrett]

[quote user=Rickson9]You guys are all better human beings than I. My investing benefits only myself and my family. It doesn't help anybody else.




Loving Rickson's honesty in this thread!

 

[GaryMcGowan]

Great thread!

My Why,

I was taught at an early age that standing out from the crowd is what is going to be the difference. Whether it was being a leader or helping others lead. My parents have always been of the entrepreneurial mind and have done many things from creating a Christian Trivia game back when Trivial Pursuit first came out on the market to investing in Real Estate for the last 30 years. Now both of my parents donate 100% of their time to a Christian Mission organization Emmanuel International, my father as the Canadian Executive Director and my mother as their Accountant. They are able to donate their time because I have a drive, a `why` that matters to me and I see the impact that I`m able help provide. Our real estate portfolio performs at a level where we have the time to use it for others. Even one our main Investors is able to donate his time and knowledge to help train and lead new leaders because of how our real estate portfolio. When you put all this together I can see the results of my `why` and it is easy for me to keep moving forward. My why is able to impact on so many different levels and I think that is what is missed sometimes. Your why should start with yourself and then allow it to also effect others. That is when I believe someone has a true why.

 

[housingrental]

To make money?



Why is that not a good enough of a reason?[quote user=AndreiAngelkovski]Hey Everyone,



Perhaps you've thought this through...or perhaps you haven't, but I encourage you to think about it again as it is really the foundation of WHY we are doing this in the first place.



Every professional athlete has a coach. Every professional singer has a vocal coach. If you can think of any high intensity profession I am certain they have a coach or a mentor. Even the best of the best have coaches. These key people in our lives guide us on our path to personal success. Most real estate investors DO NOT have a clear `WHY` they are investing in real estate. Money and Freedom are NOT big enough reasons. Especially when they respond with `Because I want to be rich` or `Because I want to quit my job`. There is more to it than just that. There is an underlying reason to this and I want you to think about it after watching this video with Joey Ragona from The Engaged Investor. Let`s be honest for a minute here`without a strong enough emotional reason to move forward, you will lack commitment. If you really think about it, EVERYONE wants to be wealthy, but most are not willing to do whatever it takes to become it.



Hope this video can encourage you: What's Your Underlying Reason

 

[AndreiAngelkovski]

[quote user=housingrental]To make money?







Why is that not a good enough of a reason?[



Because I think there is more to it than just to make money. I believe everyone has an underlying reason for investing in real estate that goes beyond just making money.



I also want to thank everyone for their comments.

 

[housingrental]

Thanks Andrei.

Why do you believe everyone has a reason beyond making money?

What do you think my reason is?





[quote user=AndreiAngelkovski][quote user=housingrental]To make money?







Why is that not a good enough of a reason?[


Because I think there is more to it than just to make money. I believe everyone has an underlying reason for investing in real estate that goes beyond just making money.



I also want to thank everyone for their comments.

 

[AndreiAngelkovski]

[quote user=housingrental]Why do you believe everyone has a reason beyond making money?



What do you think my reason is?





Hi Adam,

If I asked you "why do you want to make money" how would you respond? Just look at how others have responded above. There is always another reason than just to make money.



I have no idea what your reason is. There are coaches and mentors that are really good at helping people become aware of their reason. Joey Ragona and Philip Mckernan are both excellent mentors/coaches that I recommend speaking to.

 

[invst4profit]

I have to agree with Adam's thinking. I don't believe any one starts at any business for any other reason than to make money. Investing is just another form of earning money. Sure we may personally enjoy what we are doing or use the money for a multitude of different reasons but money is the only driving factor. Take away the money and how many of us would stay at it. At any job or career. None.



As for why income properties. That's simple, going in we all believed it was simple, required little actual work and was guaranteed to earn money. How foolish was that.

 

[Rickson9]

I stated investing for me as an ego-driven addiction. I didn't say 'money' because that answer doesn't make sense because I now have money, but still continue to invest.



What do I do with the money that I generate from investing? I invest more! I don't even use the money from my investing!



So my reason must be something else. Likely ego driven. Likely an addiction.



I added RE to my portfolio because I wanted easy cash flow. So far RE is living up to my expectations. It's been easier than I thought. Not as easy as investing in stocks, but pretty easy.



That's saying something considering that I have difficulty changing a light bulb.

 

[JoeRagona]

You're right Greg, we all start out wanting to make money and if it's the sole reason to invest or have a business, it is also what messes up many entrepreneurs - whether they realize it or not ... ask me how I know this.



I disagree that money is the only driving factor, it's what the money will do - as many have pointed out except Rickson, there are other drivers for gaining wealth...THAT'S the true why. Andrei and I have pointed out in the video that unless there is a clear vision, you will never get to the result.



I've shown so many people they have unknown challenges personally that relate to their business, investing, or whatever that is and how they see money is a very interesting subject.



I don't know your history, but depending on how you were "introduced" to money, how it was relative in your life has a big factor on how you see it, want it and use it today.



There are three steps to wealth when it relates to your perception of money:

• taking only for yourself
• taking and giving back equally
  giving back to a maximum level of value

There is NOTHING wrong with each level because in order to advance, you must experience each level.



Without getting fully into a psychological discussion, this is the basics and I'm sure every one of us can position ourselves in one of those categories ... it comes down to truthfully admitting where you are.



I know many REIN members who are in level two and three who completely understand their "why"



Hope this helps!!

 

[invst4profit]

[quote user=JoeRagona]

I know many REIN members who are in level two and three who completely understand their "why"



Hope this helps!!








There was a study done some time ago where wealthy individuals were interviewed and asked if they believed they had enough money. The study showed (I have no actual source to reference) that those with wealth never could admit that they had reached the point of having enough. Apparently the acquisition of wealth by itself is reason enough to continue to acquire more long after the point of "enough" has been reached.



Those individuals that have reached level two and three are deluding themselves into believing there motivation is to give back. They continue to earn for the sole purpose of earning they just want to make themselves feel better about it by sharing. I am not suggesting what they are doing isn't good I am saying there reasons are purely selfish. Individuals that want to give to society or to others don't need money it simply makes giving easier. Giving is a positive, or possibly guilt driven, by product of there main desire which is to earn money. I see nothing wrong with that but don't try to convince me that the drive to earn money is to be able to give it away.



I do not seek any hidden reasons to justify what I do. I work only for my own personal gain. I am very self aware of the true "why" of life and thankfully will not need to advancing beyond level one to continue with what I do. For others I understand a greater purpose may be required to justify a drive to earn money but I disagree with your conclusion that what I see as a justification is in fact a driver.



My apologies but I don't prescribe to psychobabble. Life is not that complicated. We are a society driven by material gain, some are simply more driven than others to that end, it is that simple.

 

[housingrental]

Hi Andrei



To answer your question "Why do I want to make money" is because I prefer the choices that additional money will allow greater than the negatives associated with earning additional money. The relative weighting will change at different times, and for different people, but would this not be apply to every person?







[quote user=AndreiAngelkovski][quote user=housingrental]Why do you believe everyone has a reason beyond making money?



What do you think my reason is?




Hi Adam,

If I asked you "why do you want to make money" how would you respond? Just look at how others have responded above. There is always another reason than just to make money.



I have no idea what your reason is. There are coaches and mentors that are really good at helping people become aware of their reason. Joey Ragona and Philip Mckernan are both excellent mentors/coaches that I recommend speaking to.