While many new investors may have their eye on a particular deal and have all the necessary inspiration, it can be helpful to learn some guiding principles from investors who have already benefited from experience. Even the veteran investor can absorb something useful from another investor’s investment history.
In an interview with Forbes.com
, Scott McGillivray, 15-year real estate investment veteran and star of HGTV shows Income Property
and Flipping the Block,
describes some workable tips and guidelines for wise real estate investing.
A mantra he shared throughout the interview was, “Real estate investing is get rich slow, not get rich quick,” which is echoed in both his work ethic and business model. “What I tell people is I’m the type of person who is willing to work hard to make a little more,” he said. “I like being able to control my own financial future. Some people may be willing to put their money in an investment where they get some passive return and hope for the best. I’m a bit more of a control freak and like to pick and choose where it goes and have a say in how fast it grows by working harder at it.”
One important point is that McGillivray looks to a team of business, financial, and tax advisors to guide him through investment decisions. He indicates that calculating the amount of money you’ll need in retirement to maintain the lifestyle you want is an important guiding principle in setting your goals. The HGTV star discusses his portfolio breakdown but seems to be unaware of a huge opportunity for building wealth:
“I’m probably 80% in real estate and rental properties, and maybe 20% stocks and investments… I’m not a 401(k) type of saver because I think there are better opportunities. 401(k)s are just a discipline tool. They’re great if you’re not the type of person that can set up your own savings plan, but if you want to grow your wealth faster, it won’t be through 401(k)s.”
What McGillivray doesn’t seem to realize is that real estate investments and his 401(k) investments don’t have to be two separate things. He could use a self-directed retirement account to invest in real estate and receive the tax-free or tax-deferred benefits that the account offers. More details here
McGillivray does hit the nail on the head with one suggestion for potential investors:
“If you want to do this – do this! Don’t just talk about it… learn about it… and think about it. You actually have to do it.”’