Tim Hubbard argues that control is why real estate, especially short-term rentals, builds wealth better than stocks or gold. You pick the location, choose your guests, renovate to add value, and manage expenses directly. Passive investments like syndications give you almost none of that.
Chapters
Real estate is the most historically proven asset class and one of the reasons it's made more people wealthy than any other investment is because of control. And we don't have that with a lot of other investments. So this week we're gonna dig in to just that. Welcome to short term rental riches. Quick, actionable ideas to help you along your real estate investment journey, but with a specific focus on short term rentals. We've got another subject for you this week, another topic related to real estate, of course, and also related to short term rentals. Because we're talking about a broad topic today and something that's very unique to real estate and not really unique to a lot of other investments. And that thing is control. We have control with our real estate. Now, there's lots of things that we can control. There's a few that we can't, but we're going to talk about the ones that we can and why some other investment vehicles don't offer us this control and therefore are more risky. We can control where we buy our real estate, clearly. Right? And we talk about that all the time. It's different everywhere. But we can also control the tenants in our property or who we decide to lease our apartments to, or as a short term rental, the types of guests that we bring in. But we also control whether or not we want a long term guest or a short term guest. And of course, here on this show, we are all focused on short term rentals because they make a lot, a lot of money. They make more than long term rentals. If we're in the right spot. So we can control that, we can change that use if we want to, as long as the regulations permit that, that we can. But of course we can make sure we're getting properties in areas that already approve those regulations. We have lots of control with our real estate. We have control over our management. So even if we let go of the reins and we have a property manager and they're taking over the property, we still have the ability to continue working with that management company. If it doesn't work out, we can find a new one. Now, probably one of the best things about real estate is our ability to add value. We have control over that. We have the ability to add value to a property. Now, again, this, we have to make sure we're buying the right properties that still have a value we can add to it. So through renovation, through lowering expenses, through increasing the rents, there's lots of ways to do that. But if we think about other investment classes, other investment Vehicles, stocks, for example, or gold. Do we have the ability to raise that value? No. Or I guess you could say, oh, if we invested billions or trillions of dollars and raised the stock prices, then maybe we could. But in reality, we don't have any control to raise those prices. We also don't have control over the management of stocks. We're investing into, into the management companies. That's completely no control. We're putting money into a company that we think is going to increase in value or maybe just their stock's going to increase in value. So I like that a lot about real estate. And I think the more control we have, the less risk we have and we can become super, super wealthy. As long as we don't screw up too much, right? As long as we don't get into a bad deal or get upside down with something. And the more control we have, the easier it will be for us to not get into bad investments. Actually, in regards to real estate, a lot of people invest through a syndication. So syndication is where someone is pooling money together to buy, most of the time, a larger property, larger apartment building, hotel or whatever it may be. Almost all of the big deals that you see are syndications. Now those can be really good opportunities. You can make a lot of money with syndicate syndications. It allows you to join forces with people that maybe have more experience. But at the end of the day, if you're a passive investor in the syndication, then you give up all of your control. You have the ability to invest or decide which syndication you want to be in. But if you are a passive investor in a syndication, then you don't have any control. Unfortunately, if the person that put the syndication together, you know, maybe they weren't honest or they didn't have as much experience as they claim to have, or the deal goes sideways, or the management they have in place doesn't work well, you can't really control any of that. So by maintaining control, we can lower our risks and therefore become wealthier faster if we're not screwing up. Now, I don't want to say that any of these other investment vehicles aren't good and they don't have a good place in a diversified portfolio, because they certainly can. And I just want to point out the difference in the control that we have. So that is one of the reasons more people become wealthy through real estate than any other investment vehicle. We have the control, and there's lots of things that are out of our control no matter what investment decisions we decide to make. So we can't control the news. We can't control if our flight gets canceled. So ultimately we have control over our investment decisions. Ultimately, we have control over our life, they say. I've heard this quote thrown around. I don't know exactly who says it, but the average person spends more time planning their vacation than they do their life. We have the ability to plan our lives out just as we have the ability to decide what investments we make. And I believe the more control we have with our investments, the less risk we have and the better we can do in the long run. So until next time, just ponder that when you're making your next real estate investment decision or if you're deciding to invest in other asset classes. Just remember, control has a big impact on the outcomes in our ability to generate wealth. Until next time. I hope you have a wonderful day. Want to get on the fast track to financial freedom through short term rentals? It all starts with the properties you acquire. But you want to make sure that you acquire the right properties. I want to give you my ebook that will show you how to do just that. There is no charge. It's my gift to you for being one of our subscribers. Just go to restmethods.com that's R E S T methods dot com.
