So you’re ready to take the plunge and purchase your first rental property, but your spouse isn’t so sure? I’ve been there. You’re not alone. We hear from investors facing this same predicament all the time! Chances are, there’s a more financially conservative partner in every relationship, and so it’s no surprise if your spouse needs little convincing. Natali and I experienced this in our relationship, and we want to share with you how we got on the same page.
On this episode, Natali and I are discussing how you can prepare convincing information and facts to help your spouse better understand real estate investing. We’ll share seven specific strategies you can use to get your spouse on board. You won’t want to miss this episode of Investing in Real Estate!
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Convincing your spouse to join you on a real estate journey is all about supplying them with the proper education. The first thing you should do is take a look at your current investments, and have a discussion about the realities of the stock market. We know that market crashes are inevitable and cyclical. These investments are not as safe as your spouse might think. Many of us have been taught that the stock market is THE way to invest, but it’s just not true. That’s not to say the stock market is necessarily bad, but perhaps it should be used as just one investing tool, instead of your entire arsenal.
You should also talk with your spouse about the fees you are paying inside of your investment accounts. Most of these stock market-based accounts are riddled with high fees, as your account is charged on the basis of the transactions that occur inside of your mutual funds. One simple way to track these fees is to use a website like FeeX. All you have to do is sign into your investment accounts, and it will tell you what kinds of fees you’re paying, and how high they rank. Once your spouse sees the concrete numbers, he or she might be more likely to discuss alternative investing options.
Address their concerns about appreciation. One of the first things hesitant people ask about real estate investing is, “what if the property value dips?” Real estate is no longer an appreciation game; that ended back in 2008 when the housing market crashed. In buy and hold investing, it’s all about cash flow. It shouldn’t matter if your property value drops, because you’ll be consistently bringing in rental income. Plus, you won’t be looking to sell this property, so the value is not of great significance.
Show them the deals! Come to this conversation equipped with specific examples of investments, and how they can perform for your family. Once your spouse is able to compare the ROI on real estate versus a traditional investment, the wheels will start to turn. That being said, don’t overwhelm your spouse with an excess of information. Speak in simple terms of total cost, cash flow, and ROI.
On today’s show, Natali and I are sharing three more tactics you can use to convince your hesitant spouse to invest in real estate! We’ll offer some specific resources to share with your spouse, the numbers you should present, and how to come the conversation ready to fairly and honestly discuss this issue.
If you’re ready to begin building a passive income through rental real estate, book a FREE call with my team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- How can talking about your family's budget help your spouse better understand real estate investing?
- What is a typical tenant like, and are they at risk to lose their jobs in a recession?
- What are the best ways to get educated about real estate investing?
- Typically, what is the underlying reason people pass up a deal?
- And much more!
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