I have always wanted to get started in the real estate business. Okay – when I say always, I really mean for years. I have long understood it as a great long-term investment. Unfortunately for me, I live in an area where it is very difficult to make a profit anytime soon. You would need a large amount of capital to get started and this just reduces the rate of return when you keep a lot of money in the property.
That has the potential to change. We aren’t planning on moving yet, but there has been a recent change of events that could lead me into investing within the next year. You never know what can happen at weddings.
How I Might be able to Invest Sooner rather than Later
This past weekend, my wife and I went to a friend’s wedding a couple hours away from us. My wife had been there a couple days early to participate in some of the big events leading up to the wedding and I arrived the morning of. When I got there, one of the first things she tells me is that one of the other bride’s attendant’s husband is “into real estate.”
My first reaction is… That’s nice – but I don’t have to talk finances ALL THE TIME. It’s true – I began to wonder if I talk finances too much. I wanted to tell her that I am much more than my financial blogs or talking about finances, investments, etc. It was about an hour later that I started talking to this random guy (I didn’t know anyone at the wedding other than the bridge, groom, bride’s immediate family and my wife). As we were chatting, the conversation of real estate came up and we started talking some numbers. This is when we realized that our wives had mentioned to the other that we both enjoy talking about finances.
I shared my frustration at how high property values are where I live which are accompanied by high property taxes, making it almost impossible to start investing in real estate. He was surprised at this and told me that he had a couple properties already, where the profit to property value ratio was much lower. He gave me some general numbers that shocked me when I consider the market that I currently live in. These numbers are too good to be true…
I May have Found an Investment Partner
Throughout the rest of the wedding, I let the numbers float around in my head. Since I already operate my online business with a couple different partners, I started to develop a way to make this work. I don’t live THAT far away for this to be impossible and we could work out an arrangement for me to take on a more financial role in future investments while he would take care of the day-to-day stuff. This is what I came up with while the Bridge and Groom were saying, “I do” and dancing their first dance.
I knew that if I didn’t act now, I may lose an opportunity. I caught up with him later in the reception, remarkably just before he was leaving, and pitched him my idea, starting out by asking if he would ever consider an investment partnership. To make a long story short, he sounded interested and we exchanged contact information so that we could discuss it further. While nothing may come of it, there is also the possibility of us building a successful business partnership which would entail making both of us profitable real estate investors.
The best thing that I like about this opportunity is that I would be able to start investing in another market that is profitable for investors and that still has a high demand for rent. I will keep you updated once we talk.