By J.P. Dahdah, Vantage CEO
Building wealth in real estate takes time and is super hard to do. Late night infomercials and investment ‘gurus’ would like you to believe you can earn huge profits in a short period of time with little to no effort. Hopefully, you aren’t getting your financial advice at 2a.m. from folks selling you on a dream and you are smart enough to know better. Regardless of what sector of the real estate market you invest in, it is a lifelong commitment to saving, executing on a sound investment strategy and sticking to it.
I know you have heard this all before, but truth be told, only 9% of Americans have a net worth above $1 million excluding their primary residence and/or make an annual income above $200,000 per year. To me, the income you earn from your professional career is somewhat irrelevant because making a lot of money doesn’t always correlate to keeping a lot of money. Being highly compensated doesn’t make you wealthy or guarantee a comfortable lifestyle at retirement. Successful investors understand wealth building is not based on intellect, but rather on temperament. The ability to control panic and implement patience is essential.
Many Americans failed to keep this fundamental lesson in mind during the 2003-2007 real estate boom, but quickly learned the hard lesson when the housing crisis came crashing down in 2008. We live in a world dominated by instant gratification. Smart phones, iPads, instant messaging and snapchats are decreasing our human ability to wait for anything, much less build a treasure chest of savings that we can’t outlive. So this month, I wanted to remind you of a simple yet fundamentally critical investing lesson: Don’t try to time the market and waste your energy on trying to foresee the future (you can’t). Focus on putting money to work at all times (regardless of what the headlines read) and just be patient.
What’s the value of knowing your IRA can be used to purchase investment real estate if you don’t have enough money saved in your account to take advantage of market opportunities? None. It’s like having a Ferrari in your garage without the financial means to buy the gasoline!
If you truly want to become wealthy, you aren’t going to accomplish it with “no money down” strategies. You aren’t going to make a fortune by depending on the banks and lenders to offer you the money to build a large rental portfolio. You will need to learn, earn, save and then invest prudently for many years. It’s time IN the market that will enable you to reach your financial goals, not timing the market. Save hard and self-direct your money wisely and patiently.
To learn more about the Real Estate IRAs offered by Vantage, please visit www.VantageIRAs.com/AZREIA