Tips for Investing in Real Estate as a Momma
Hey there, mama! Investing in real estate while managing motherhood is challenging, but it can be incredibly rewarding. It's not just about making money; it's about creating stability and opportunities for your family. Here are some great tips given to us by the incredible women from our last Rocky Mountain Women Invest meet up!
If you haven’t had the chance to attend one of our meet ups or it’s been a while stop by! We learn so much from our community.
Why Invest in Real Estate?
First off, imagine having the freedom to make choices without financial constraints. Real estate can give you that "eff you money," allowing you to create memorable experiences for your family and seize new opportunities.
Life can throw some serious curveballs, like a divorce. Real estate can be a powerful tool to rebuild and support your kids. It’s about going from feeling lost to being in control and providing for your family’s future.
And let's be real—kids are expensive! Investing in real estate can help ensure you have the financial resources to give them everything they need, from educational opportunities to a comfortable lifestyle.
Finding Work-Life Balance
If you love what you do, work-life balance can be tricky. Even if you can retire, the passion keeps you going. But it’s tough when your family wishes you’d spend more time with them. Delegating can be hard, but sometimes you have to keep an eye on things to prevent mistakes.
Creating systems and building a reliable team can allow you to step away when needed, like during a maternity leave. Delegating tasks and trusting your team can elevate your business and give you the break you deserve.
Getting the Kids Involved
Involving your kids in your business can be incredibly beneficial. Whether it’s writing a business proposal at a young age or helping set up a rental property, these experiences teach financial literacy and essential skills that they won’t learn in school.
Having your kids involved in real estate decisions can be a great bonding experience. From helping pick out a house to getting their real estate license, these activities can teach them valuable life lessons and prepare them for the future.
And did you know you can 1099 your kids? This not only teaches them about earning and managing money but also provides some tax benefits for your business.
Managing Risk
Don’t let fear hold you back. Even if you start small, like with $60k and one home, you can quickly build a portfolio. If things don’t go as planned, you can always sell or cover the rent for a while as you re-strategize.
Separating your real estate and business finances and maintaining a financial runway can help you manage risks better. Aim for a six-month cushion to handle any unexpected expenses.
It’s also essential to have a fallback plan. Whether it’s your job or your partner’s, knowing you have additional income sources can alleviate stress and provide security.
Asset Protection and Estate Planning
Estate planning might seem overwhelming, but it’s crucial. Learn about terms like beneficiaries and trusts, and choose trustworthy individuals to manage your assets. Starting this process early can save you a lot of headaches later.
Not having protections in place before buying properties can be a costly mistake. Setting up a trust and ensuring your assets are well-protected can safeguard your investments and provide peace of mind.
It’s essential to have tough conversations with those who will act on your behalf. Consulting a local attorney can provide valuable advice tailored to your investment plans.
Building a Support System
It can be hard to trust others with your business, especially if you’re a bit of a control freak. But finding someone reliable can make a significant difference. Letting go of some control is necessary to grow and manage your business effectively.
Treat your real estate investments like a business, whether you own one property or many. Implement systems, hold regular meetings, and ensure everything runs smoothly.
Don’t underestimate the power of software for automating tasks like rent collection and communication. Use your personal network for referrals, recommendations, and collaboration—it can be a game-changer.
Triumphs and Failures
Successfully managing your business while taking time for yourself, like traveling abroad with a toddler, is a huge win. Achieving this balance is worth the effort and organization.
Failures are part of the journey and can be incredible learning opportunities. Don’t be afraid to take risks and push through challenges. Remember, you’ve got this!
Advice for New Mom Investors
Believe in yourself and give yourself grace. If you’re having a tough day and need to prioritize your kids, that’s okay. Flexibility and self-compassion are key.
Don’t fear the financial burden. If you can handle six months of payments, you’re in a good position. Temporary cash flow challenges are manageable if you have a steady income.
And lastly, don’t compare your journey to others’. Focus on your strengths and lean into your feminine genius—relationships and nurturing. Play to your strengths and pursue what you’re good at.
You can do this, mama!