You May Say…
Many of you will read the headline and say, “Sure I can” or “I’m already rich” or “I can retire in 5 years”. But you’re still not wealthy. If you are wealthy, then you didn’t get there by selling real estate.
You May Be Rich, But Are You Wealthy?
I know there are many super-successful Realtors who read and contribute to Agent Genius. There are probably many of you who are rich. I am certain several of these rich contributors achieved their riches by selling real estate. It is very possible to earn lots of income selling real estate. There are even some get rich quick schemes to choose from. But I’m not talking about the money you make, I’m talking about the wealth you create with the money you make.
Brokering real estate transactions can generate a lot of income and perceived riches. What you do with that income can create wealth for you and your family. No one becomes wealthy by just selling real estate. They invest their riches to become wealthy.
So what are you doing to build wealth? Do you invest in real estate, stocks, bonds, or do you spend the money you make and then try to go make some more? I know now is a tough time for many to talk about investments. We’ve seen the greatest free market system in the world lose 30% of it’s investments values this year. But you’ve got to do something with your riches to turn them into wealth. You can’t put them under the mattress and hope they grow in size.
You Can Become Wealthy Buying
I believe that real estate agents should buy real estate. Who knows the market better than you? Who sees deals hit the market before anyone else? Who can analyze the pros and cons of a property better than you? It only makes sense for you to be a real estate investor. Not only will it help you build wealth, but it will also make you a better agent. I’m not saying you should ignore buying stocks, mutual funds, bonds, cd’s, etc… Diversity is key to building sustainable wealth. But I am encouraging you to invest in what you know best.
How are you building wealth? I’d love to hear your methods in the comments below.
October 30, 2008 at 4:48 pm
You are absolutely correct in your premise, and especially so right now. I bought my rental real estate at the peak of the market, and while the properties are fully rented, they are worth much less than what I paid. Still, I bought for the long term, which is what any Realtor should do with their investable income.
October 30, 2008 at 7:50 pm
I don’t need to build my own wealth. I just need to wait for the election and the wealth will be spread my direction.
October 30, 2008 at 8:04 pm
I’m in line right behind Jonathan for my share of Bill Gates and Warren Buffet’s wealth sharing. A guy named Joe is right behind me.
October 30, 2008 at 8:22 pm
@Jonathan good stuff! There are already millions standing in line, just turn around and get in another one.
Eric- New Orleans Condos and Lofts
October 30, 2008 at 10:03 pm
I stay away from real estate investments other than my home and a beach condo. I do real estate for a living so want to be diverse in my investments. That is just my take.
I have saved a lot as I knew times would not always be good. I learned that from my parents who grew up in the depression. Money was not an issue for them as there was none.
October 30, 2008 at 10:27 pm
Gary Keller’s book The Millionaire Real Estate Investor has been a guide for me of sorts for real estate investing. I don’t have many properties, but I’m pretty confident my daughter’s college will be paid for by my real estate.
Unless Joe gets all my money.
October 31, 2008 at 5:10 am
From reading the Post and the comments I am sitting here smiling as I realize the entire world isn’t crazy. If you spend too much time on Twitter reading political tweets you will start to have a Russian accent… Just my thoughts and this is America, I am entitled to them (for at least another 5 days or so).
October 31, 2008 at 6:52 am
@eric Why do you stay away from real estate? Don’t you know real estate better than any other market? I’m not saying you should throw all your eggs in one basket, but you should feel confident that your real estate basket should be equal or slightly bigger than your stock basket.
November 1, 2008 at 8:22 am
Brad – Excellent advice for Realtors. If we believe in the benefit of owning real estate, we should be investing for our future.
One of the investing options I propose is for my clients is buying a rental property before their child turns three and watch it grow to pay for their college.