Well I would base that on 3 things – past decisions, opportunities, and risk. Let me explain.
Past Decisions:
I like to describe myself as a 20-something year old “kid”. But the fact of the matter is I like to know that I have a good head on my shoulders. I’ve been working since I was 16 and at one point held 3 jobs at once. Also, while some people may have blown the weekly paycheck on new Jordans, or a night at a cool club, I would always put some of my money away. I’m not a penny-pincher – I just am a firm believer in making money work for me – can’t really do that without putting some money away.
I like to describe myself as a 20-something year old “kid”. But the fact of the matter is I like to know that I have a good head on my shoulders. I’ve been working since I was 16 and at one point held 3 jobs at once. Also, while some people may have blown the weekly paycheck on new Jordans, or a night at a cool club, I would always put some of my money away. I’m not a penny-pincher – I just am a firm believer in making money work for me – can’t really do that without putting some money away.
This past decision of saving really put me in a place where I had funds available to be able to make a larger purchase. And just to clarify, this doesn’t only mean the house, but it encompasses all things. If I really want a camera per se I know I can go to the store and buy one, and I think that is a comfort we all need in life. We need to know that if we REALLY want something we SHOULD be able to buy it. (Also, don’t try and link that to “I really want a Lamborghini” – it doesn’t work that way). At the same time though, we have to evaluate those decisions. Really wanting doesn’t always mean you need to go buy it – I usually let the idea brew for a while before finally pulling the trigger or leaving it alone.
Opportunities:
Well here I am – mrRua – a 20-something year old “kid” living during the biggest financial crash in decades… obviously the biggest one during my lifetime. Some – actually many – would say this is horrible and one of the worst things that could happen – but I think, that perspective changes depending on what side of the fence you are on.
Well here I am – mrRua – a 20-something year old “kid” living during the biggest financial crash in decades… obviously the biggest one during my lifetime. Some – actually many – would say this is horrible and one of the worst things that could happen – but I think, that perspective changes depending on what side of the fence you are on.
Like I mentioned above, I save money – I also make it work for me. You might ask – what does that mean? Well, here is an example. When everyone was scared about the economy dropping and pulled their money out – it make the stock market essentially semi-crash – prices on stocks were SO low. As most sold – I bought… see the opportunity? And now here we are in 2010, and the stock market is recovering and due to stock decisions I have made, I close to doubled my input and at the same time the real-estate market is still down… once again see the opportunity?
In life – there are instances where you do just have to do it. When is the next time the stock market will drop in the manner that it did this time? I don’t know, and if we look at history it won’t be for a quite a bit (knock on wood), so acting was critical. But at the same time, just because you didn’t act on this particular opportunity doesn’t mean there wont be another. Keep your eyes open.
Risk:
Of course risk had to play a part in this all. I saved via past decisions, things happened via opportunity, but I just signed a loan with 6 figures on it – that is called taking a risk. I bought a home, and now I have to essentially “manage” it. The risks are abundant from additional costs of fixing it up, to getting tenants who pay their rent and it is definitely a scary journey, but one I feel that I made the right decision on.
Of course risk had to play a part in this all. I saved via past decisions, things happened via opportunity, but I just signed a loan with 6 figures on it – that is called taking a risk. I bought a home, and now I have to essentially “manage” it. The risks are abundant from additional costs of fixing it up, to getting tenants who pay their rent and it is definitely a scary journey, but one I feel that I made the right decision on.
Nonetheless only time will tell, but until next time – thanks for reading and feel free to check out my own blog @ http://mrrua.com – thanks again to djRelAt7 for letting me talk my words.
One reply on “Why become a landlord?”
There are so many lucrative investments to be making right now and owning a home to rent is an awesome idea! Thanks for sharing and I can’t wait to read what comes next.