While certain aspects of investing in real estate can be electric and exciting, the bulk of your investment strategies should be boring. If you’re always on a real estate roller coaster that thrives on hype and risk, you’re not going to achieve what you need for lasting investment success.
Most of what you do should be boring. Here’s why!
5 Reasons Why Boring Investing Is Good Investing
1. Consistency and stability are your firm foundation
Real wealth takes time to build. For passive investors, that means making money – quite literally – in your sleep. You’ll notice that wealthy people often go for investments that are consistent and reliable, even if they come with smaller returns. While there’s nothing wrong with taking on risk if you can tolerate it and do so responsibly, don’t aim for high-risk ventures just for the promises of big returns.
The wealthiest people never get rich quickly – in fact, quite the opposite!
In real estate investment, target markets with a reputation for consistency. Not only will this allow you to better predict portfolio performance, but it shields you from market volatility. In this business, surprises are rarely welcome.
2. A buy-and-hold strategy is foolproof
What are “exciting” investments? Day trading? House flipping? We may find ourselves drawn to these strategies, or, at the very least, the hottest markets of our time. But that’s not always wise. Think of investing like driving a car. The faster you go, the less time you have to react to obstacles. If you’re driving slowly, you have plenty of time to see what’s coming and adjust accordingly.
When you buy and hold, you eliminate the need to make pressing investment decisions. Your day-to-day investment experience will be boring because fewer factors play into your success. You’re not worried about timing the market or seizing short-term, flash-in-the-pan investment opportunities.
3. Each decision demands total confidence
Confidence kills anxiety. When investing in real estate, you should go into it knowing exactly what you’re getting. You’ve done the research and run the numbers. Surprises are not what you’re after here! Sometimes “boring” isn’t the opposite of exciting, but of stress. As a real estate investor, your portfolio shouldn’t stress you out!
Deciding with confidence means that you’ve done your due diligence. You know what to expect. You’ve considered all the variables and minimized associated risks.
4. When things are going well, they should be dull
As a passive investor, you don’t want to often encounter situations that demand your involvement. When things are running smoothly, you should barely notice you’re investing at all! Though passive real estate investing isn’t “hands-off,” it should run like a well-oiled machine. You’re in this to build passive wealth. Your investments shouldn’t keep you awake at night.
5. You rely on proven strategies, not your feelings
The best investors fall back on time-tested strategies. They’re not looking to innovate or “spice things up.” Their priority is doing what they know will work, not reinventing the wheel. That may not be exciting, but it works! And, ultimately, that’s what matters. Good investments don’t demand excitement. They demand patience.
So many people struggle to see their long-term investments come to fruition because they don’t have the patience to get rich slowly.
Should passive real estate investing ever be exciting?
Here’s the bottom line: if your portfolio is built on a firm foundation – one that is reliable, predictable, and yes, boring – you create the stability and resources necessary to take other investment risks. We love what we do, so we’re not going to say investing shouldn’t be exciting. But that excitement should come from pride in excellence, not risk-taking.
But ultimately, what’s boring to you might be exciting for the next guy. You’ve got to determine your tolerance for risk, your specific investment goals, and your capacity to invest and scale up.
Save your sense of daring for other endeavors. Investing in real estate is about establishing reliable, lasting wealth over time. That might be dull, but it’s still effective! The less stress and excitement associated with your investments, the greater capacity you will have to focus on your family, career, and other ambitions.
So for your sake, let investing in real estate be boring.
Investing with REI Nation is the right kind of stress-free!
