Author Topic: Investing in Real Estate and my small business  (Read 210 times)

Robbie82

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Investing in Real Estate and my small business
« on: July 11, 2019, 06:14:01 PM »
Hey everyone!  This is my first post on the forums here.  I have heard many people recommend the Mr. Money Mustache forums and blogs, so I decided to join.  My name is Robbie, I am 24 years old, and I am hoping to invest in real estate and grow a small business I am working on now.  In my current situation, I am working an incredible job, but it doesn't pay well at all.  The problem I am facing is that I need to figure out if I should save the money I am able to for the small business I am growing, or for a property I can house hack.  So far, the advice I am being told is to invest in my small business, and then while I am growing that, I can learn more about investing in real estate.  Once I start making more profits with my small business, I can then use that to invest in real estate.  Would you agree with that route? What would you do in this situation?  Thanks in advance for any help/advice!

Papa bear

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Re: Investing in Real Estate and my small business
« Reply #1 on: July 11, 2019, 08:05:53 PM »
Well - that all depends on what your business is and what you want to do in real estate.

I bought my first rental at 22 and a 2 unit at 26. I used the rental income to be an income “floor” so that I could go off and start a business. And have since done fair in the business and bought 4 more rental units.

So this isn’t a chicken or the egg question, you could go in either direction and be just fine.  Or you could skip that and find a lucrative career. There’s no wrong path.

To the point of business or real estate, specifics would be helpful.  If your business isn’t scalable, then I’d pass on dumping more money in it.  If your idea of a real estate investment is to buy a 350k sfh and rent it for 1500/month in the hopes it appreciates, then I’d pass on that too. 


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Robbie82

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Re: Investing in Real Estate and my small business
« Reply #2 on: July 12, 2019, 07:10:50 AM »
Thanks for your response!  You are right, specifics would help.
As for real estate, I want to grow a portfolio of rental properties, preferably residential multifamily.  I would like to have the cash flow to cover my expenses and maybe a little more so I can focus on working on my other business.  Once I hit my goal for cash flow, I would look into investing in larger commercial deals or syndications.
As for my business, I breed ball pythons.  Working with snakes has always been my passion and I know this business a lot better than real estate right now.  It's a dream of mine to grow the business into something great.  This business is scalable and I know many people who have done very well in it.  I am already a couple of years into growing it as well, and continue to educate myself on the market and animals. 
With that being said, if I magically had a lot of money to invest, as of right now, I would be able to make a higher ROI with my business because I am more familiar with it than REI.  I don't want to discount real estate investing, though, because I know how great of an investment strategy it is. 
Thanks again for your post!