Investing can look very different for every individual, depending on their personal situation and circumstances. There is no right or wrong way to invest your money, only the best option for you. IRAs, 401K, stocks, bonds, mutual funds, money market funds, insurance policies, and of course real estate are some of the available options to build wealth. There are many opportunities within each of these categories, which can become overwhelming very quickly if this is not a part of your daily language.
Once you start on the path to investing for your future, you will want to work with a financial advisor who can meet you where you’re at and help you plan for your retirement no matter what your age. I recently met with someone who took note of all of my current investments, assets/liabilities & goals and showed me exactly what my retirement would look like at different ages, as well as what it would take to get there. It was exciting to see how my contributions from when I was a brand new college graduate have compounded in big ways & will continue to do so with no effort!
I’d like to take a minute to expand on real estate investments. Of course, this is something I’m passionate about! I’ve seen so many investors find success in this avenue. This too offers many different opportunities - short-term rentals, long-term rentals, multi-units, and “flips”, to name a few. Most often, this is not a “get rich quick” approach (similar to most investments) and takes patience to see the return. Investing in real estate properties can provide cash flow while someone else is paying your mortgage and you are building equity!
My personal experience with short-term rental —
Being a Realtor, I always have an eye out for that perfect property that could create some cash flow and would be a wise investment. In May 2023, I purchased my first investment property! This was scary, yet so exciting! I knew I wanted to get started with a short-term rental (Airbnb) so I researched for months prior to starting my search. I looked at many properties and wrote offers on several that I did not win due to strong competition with other buyers. Yes, I bought when competition was tough and interest rates were higher because I know the value of the home will continue to increase and I can refinance the interest rate! When I saw this one, I knew it would be perfect. It’s an old home with so much charm in an adorable neighborhood with similar older homes. The location was ideal & it had so much potential! I went through the same highs and lows that every buyer experiences! I knew I had to make my offer strong, yet within my budget, given the repairs it would need. When I got the call that my offer had been accepted, I was so excited and also thought…what have I done?! The next 2 months were a whirlwind! Before closing, I was gathering quotes for the work to be done & scheduling it to be started immediately after closing. My goal was to get the work completed as soon as possible so I could start having some cash flow. Just after closing, the work started - brand new kitchen, paint the entire house (walls, doors, ceiling & trim), new floor, refinish hardwood floors, new doors/windows, rebuild the deck, power wash the exterior, freshen up landscaping and furnishing the entire house! I really enjoyed the remodel (picking the finishing touches) and decorating to get everything just right! Within 6 weeks, I had my first guest checking in! It has been an experience and I’ve learned so much along the way! It seemed that right off the bat, I had some guests that were less than desirable - bringing unapproved pets, some of which caused minor damage, more guests arriving than they paid for, left the house dirtier than “normal”, etc… I’ve learned to find ways to prevent some of those issues so they happen much less frequently. Being a host of a short-term rental is mostly fun, but it does not come without it’s challenges. Just like anything, you have to work hard at it to reap the rewards. I’ve been very pleased with the cash flow it is generating. But more than anything, I am proud of myself for achieving a very big goal that I had set for myself! I plan to purchase more properties when the time is right, possibly a mid-term rental and/or long-term rental. I love that someone else is paying my mortgage and I’m building equity in my home! I know if I continue this business, the payoff will be amazing in the end. Patience is a MUST. Patience on the hard days when I want to put a for sale sign in the yard and give up. Patience when I have to drive 45 mins to clean the house after a check out. Patience that I will find the perfect housekeeper. Patience to be able to financially make more repairs to the house. Patience when a guest does not follow the rules. Patience when something goes wrong and needs repaired. Patience when you strive so hard to offer a 5 star experience & the guest gives you a 4 star review, which does not align with their write up of how much they loved the place (Reviews are HUGE in this business). But, I keep going because the positives outweigh the negatives. At the end of the day, there is nothing more exciting than seeing a booking come through and the guest is telling you how excited they are to stay at your place and it will be perfect for them. The guest testimonials of how much they loved my house and it fit their needs perfectly is more satisfying than all of the challenges, by far! I feel honored to know I am a part of special events in a small way - weddings, graduations, sporting events, reunions, girls/guys trip, etc… This is what makes me happy & validates why I chose to “try” a short-term rental investment. I’m so glad I chose to go for it! It hasn’t always been easy, but it is worth it. You can click the following link to see the home I made a short term rental - https://www.airbnb.com/rooms/873079616019634002?guests=1&adults=1&s=67&unique_share_id=d04e84f8-0b9e-4d09-b26a-f4487eb62920
Whatever your financial goals may be, I would recommend educating yourself and GO FOR IT! Any investment you make (no matter how big or small) has the potential to greatly impact your future. NOW is the best time to start!
You need 2 professionals in your corner to help guide you to achieve your long-term investment goals and live your best life…
1 - A real estate agent who you trust and is knowledgeable in investment properties. As a Realtor, it excites me to know I’m helping someone make their dreams come true, one property at a time!
2 - A financial advisor who has the tools, knowledge and ability to help you expand and grow your portfolio.
These 2 professionals are key to help you shape your portfolio in a way that works best for you and your long term goals. Find “your people” and start your journey to building your wealth! If you already have “your people” working with you, reach out and see what changes/improvements could and should be made to set yourself up for success!
- Kelly