When I started investing in real estate, I remember my coach saying to me “always start and end with your WHY. I didn’t know what my Why was when I started or why it even mattered, but as I gained more experience and started making passive income, I stopped to reflect on what my Why was and why it actually mattered.
Everyone has a different reason for getting into Real estate investing; for some they hate their job and want to pursue real estate investing to be able to quit their job; for others they love their job but just need a bit more month before the money runs out; and others just love real estate as a passion. However, no matter what the reason, they all start and end with their WHY!
My WHY is to build a retirement fund so I don’t have to work passed the age of 60 (or hopefully earlier) and can start to enjoy life on my terms and not somebody else’s. My WHY is also my child, who has special needs. Unfortunately, there is not enough support for children and families, unless you have a specific diagnosis, so with the passive income we earn, we can put support networks in place that otherwise would not be.
The other night, while speaking to another real estate investors, she said if your WHY does not make you cry, it’s not strong enough! It will never carry you through your goals and when things get tough you will give up! It’s true – I’ve seen it happen and it almost happened to me, until I focused on my WHY. It does make me cry – at times with happiness and other times with frustration! Nobody said this business would be easy – if it were, everyone would be doing it.
For instance, you buy a rental, your tenant is difficult, does not pay rent and you cannot get rid of them because the law is on their side and not yours. You focus on your WHY and remember that this too shall pass – you will eventually get rid of them and find a better tenant. You will also come to realize that your processes you put in place to find a tenant, might need some overhauling so it does not happen again!
Or you enter into a JV partnership and because you wanted to save money, you decided to structure the JV agreement yourselves. Now your JV partner is not living up to their end of the bargain and your property is not cash flowing, meaning you are losing money every month. This is another opportunity to learn from your mistakes, refocus, take action to sever this relationship and next time get a proper agreement in place by paying a lawyer.
Problems lead to solutions and with your WHY as a focus, you can overcome any challenge.
Investors, who have a strong Why stay determined in the face of these adversities and realize it is a part of doing business. They don’t let problems like this sway them because they know at the end of the day these problems are just a stepping stone to reaching their end goals.
So if you don’t have a strong WHY – get one! In order to succeed in this business you need to know what your WHY is, what your goals are and how to reach them!