Wednesday, July 29, 2009

Passion Vs. Money: Which Road Are You Following?


Thought I'd touch on these two subjects today - passion vs. money. Which road are you following?

Time and time again, I see a lot of people get into real estate investing and say they just want to make a lot of money. People get drawn into the "hype" and illusion that real estate is a "get rich quick" plan. In reality, it's not.

It takes work, hard work to run a real estate business. It takes skills and continuous learning and education. It takes time. Success does not happen over night. Those that have said they have made a lot of money in real estate over night, either got lucky and/or they are not telling the entire story.

Moreover, it's about dedication to the business and to yourself. Too many times I've heard real estate investors ask, "What's the best technique to make the most amount of money?" Or, "How can I make the most money with the least amount of work?" When I hear and meet these people, I know they are only doing it for one reason - money. And, you know what?

Those that work for money will let money control them. Money is their God. They do not know how to create money, manage money, and take care of money. In turn, they will always lose money and will be a slave to money for the rest of their life.

I've known a lot of real estate investors, including many rehabbers and real estate agents, who have made a lot of money in real estate. Every year, they make their six figure income and by the end of the year they are broke wondering how they will ever pay their income taxes. The money they have made is lost and spent.

As each year passes, I hear the same stories over and over again. And, at the end of the year they are scrambling to find one or many real estate properties to buy and hold (despite negative cash flow and/or breaking even) just to offset their tax situation. This is a never ending game - it's a losing battle.

I'm here to say that the best return on your investment is the investment you put in yourself. Life is short - we only have one life to live. So, why not live a life of happiness and pursue your passion?

Money is not everything without having anyone to share it with. Remember Ebenezer Scrooge? He had all the money in the world yet had no one to share it with.

Too many people I know have pursued money over their passion. Many of these people have ended up divorced, broke, and unhappy. They have neglected everyone who has truly cared about them including their friends and family because they value money over everything and anyone else - they are truly alone. Is this really the kind of life you want to live?

You have to really sit down and assess your goals and what you really want in life. Get to the "why." One of the most frequently asked questions I get is, "How do I get started?" It all starts with you and what YOU want. Not what everyone else wants for you.

Most new people who get into real estate investing want to do big things. They want to buy a large apartment building, a mobile home park, and/or commercial real estate building. Though, many of them have never done a real estate deal in their life and/or do not have much experience in the real estate niche of their choice. This is dangerous.

It's better to start out small and grow slowly getting a taste of the business to see if it's for you, than to get stuck with a large deal only to find out this is not what you wanted to get into. Trust me, it happens.

That is why when people ask, "Why even do a small mobile home deal? I'd rather buy a mobile home park," I know they are entering dangerous territory. Without the experience, a person can get really hit hard taking on things that are in over their head.

In the end, passion will always win over money. If a person is more passionate about something, then that person will always beat the one who is working just for the money. Always.

I'm going to leave you here with a video by Gary Vaynerchuk that inspired this post.

Happy Investing!



Video Link

2 comments:

Shae said...

Amen!

Mobile Home Gurl said...

Thanks, for stopping by Shae, glad you liked it! :)