Real estate is a long term game. Don't burn yourself out too soon!
We have never met a same day home flipper. That is not the text book way to start an article but let us clarify. Years ago, before the world and especially real estate had known 2008, we heard of people who had bought a property in the morning and sold it off (this entire process is called flipping and the dude, a flipper) in the evening over a whiskey and tandoori chicken. In fact, we know of people who did this a couple of times in 2009 too. More tandoori chicken please. :)
If someone reading this post has been a same day flipper, it would be nice to hear from you and would make an amazing and popular post here. There must be many of you out there, especially in the Delhi NCR region.
The typical Indian real estate investor has very little to ask. He needs to personally know the builder. Yes that is correct. So if you are a broker who has worked hard to make that commission money from the typical Indian investor, be prepared to hear the "I will call up Mr. Choudhury (the builder here) personally and finalise the deal. Arre, we have known each other for years!" The second question that will inevitably come up is "The prices are going to double in 3 years right? Yaar (Friend) otherwise I am not interested. There are better deals in Mr. Singh's projects. Look at his Golf Condos. They doubled in price in less than 3 years! I had 6 units there. I still have 2".
As we expect more and more from our real estate investments in India, we sometimes get consumed by the headiness of it all. The weekly fluctuations in market price, the impact of the builder brand, the acceptability of a new location et al intrigue us more and more. The money becomes an obsession and ditto the land lording, soon becomes a full time job. Not to mention the time needed to find deals and network with other real estate investors. Pretty soon you can find yourself overwhelmed.
Still, we have to ask why are we in real estate? Are we looking for passive income, wealth creation, or the rush of getting deals done? How will real estate play a role in your work life, home life, or even your relationship with your spouse and family?
We know how heady real estate investments can be, especially in a booming and high demand real estate market like India. So you end up thinking strategies and techniques all the time. Will it be 3 units of that affordable housing project or 1 unit in that luxury apartment complex? Are interest rates coming down? Will there be that rush to buy now? I think I need to hold that particular unit for another year and I will max out on the returns. Slowly, you start using most of your time thinking about your real estate investments.
"At a particular stage, real estate ate up my life. I was always pursuing deals, hunting down tenants, analyzing agreements and repairing homes. I spent more than 12 hours a day at projects and sites and then analyzed stuff late at night. I ate whatever I could as I lived out of the car, whether it was McDonalds or KFC or some such joint. Pretty soon I was stressed out and irritable and I even gained a lot of weight. My relationship with the wife was not at it's best and my son was not getting to see his dad enough", says Samir Agarwal, a hard core real estate investor who has changed the way he plays the game now, simply to reclaim his life.
There is a need for serious change in your lifestyle
"If it wasn’t for my wife who lost her patience and pointed out what a monster I had become I wouldn’t know what would have happened. I would have incurred an irreparable loss in life. The loss of peace. Real estate became a chase for the money and not a chase for creativity, passion, and fun. In fact, I didn’t have any hobby and I wasn’t having any fun. I slowly came to the realization that I was starting to hate real estate – it created the most awful lifestyle for me.", adds Samir.
At this point we would like to make it clear that we are not trying to say don’t work hard for your real estate investments. Everyone should hustle hard. On the other hand, you should be aware that you can’t throw your whole life into it. Of course we all have different situations and needs. But you must be aware that you are making a choice. Please do not get yourself too lost in it.
"Looking back, I realized that if I went about life the way I was going, I would have ended up hating real estate. I had started associating real estate with all the bad things in my life. As a result, I slowed down a lot. I started spending quality time with the family and focused on other areas of my life. I probably let some good deals slip. Yet I didn’t mind. I pursued my other passions like traveling and photography. I focused on living a healthier lifestyle. I started designing a lifestyle that fits what I really wanted out of my life.", Samir says, sipping his espresso and looking content during our early morning interview at an open air cafe in Gurgaon.
Strike a balance
"I know that there are a lot of investors in India who didn’t feel what I did. But I am sure that somewhere there are investors who are getting burned out because they are cranking it too hard.", Samir exerts when we ask him for a message to all our readers.
If someone reading this post has been a same day flipper, it would be nice to hear from you and would make an amazing and popular post here. There must be many of you out there, especially in the Delhi NCR region.
The typical Indian real estate investor has very little to ask. He needs to personally know the builder. Yes that is correct. So if you are a broker who has worked hard to make that commission money from the typical Indian investor, be prepared to hear the "I will call up Mr. Choudhury (the builder here) personally and finalise the deal. Arre, we have known each other for years!" The second question that will inevitably come up is "The prices are going to double in 3 years right? Yaar (Friend) otherwise I am not interested. There are better deals in Mr. Singh's projects. Look at his Golf Condos. They doubled in price in less than 3 years! I had 6 units there. I still have 2".
Ask yourself this
Still, we have to ask why are we in real estate? Are we looking for passive income, wealth creation, or the rush of getting deals done? How will real estate play a role in your work life, home life, or even your relationship with your spouse and family?
Are you living real estate 24/7 for the money and thrill?
"At a particular stage, real estate ate up my life. I was always pursuing deals, hunting down tenants, analyzing agreements and repairing homes. I spent more than 12 hours a day at projects and sites and then analyzed stuff late at night. I ate whatever I could as I lived out of the car, whether it was McDonalds or KFC or some such joint. Pretty soon I was stressed out and irritable and I even gained a lot of weight. My relationship with the wife was not at it's best and my son was not getting to see his dad enough", says Samir Agarwal, a hard core real estate investor who has changed the way he plays the game now, simply to reclaim his life.
"If it wasn’t for my wife who lost her patience and pointed out what a monster I had become I wouldn’t know what would have happened. I would have incurred an irreparable loss in life. The loss of peace. Real estate became a chase for the money and not a chase for creativity, passion, and fun. In fact, I didn’t have any hobby and I wasn’t having any fun. I slowly came to the realization that I was starting to hate real estate – it created the most awful lifestyle for me.", adds Samir.
At this point we would like to make it clear that we are not trying to say don’t work hard for your real estate investments. Everyone should hustle hard. On the other hand, you should be aware that you can’t throw your whole life into it. Of course we all have different situations and needs. But you must be aware that you are making a choice. Please do not get yourself too lost in it.
"Looking back, I realized that if I went about life the way I was going, I would have ended up hating real estate. I had started associating real estate with all the bad things in my life. As a result, I slowed down a lot. I started spending quality time with the family and focused on other areas of my life. I probably let some good deals slip. Yet I didn’t mind. I pursued my other passions like traveling and photography. I focused on living a healthier lifestyle. I started designing a lifestyle that fits what I really wanted out of my life.", Samir says, sipping his espresso and looking content during our early morning interview at an open air cafe in Gurgaon.
Strike a balance
"I know that there are a lot of investors in India who didn’t feel what I did. But I am sure that somewhere there are investors who are getting burned out because they are cranking it too hard.", Samir exerts when we ask him for a message to all our readers.
"You know, I realized real estate investment is a long, long term game, and I would have been a retard to burn myself and my whole life out, chasing assets and deals, the way I did", adds Samir as a solid piece of advice to all of you reading this.
Moral of the story? Take it easy. Get yourself a life!
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