Mompreneurs are making their mark in the business world, especially in real estate. Today, Monick Halm shares five reasons why real estate investing is particularly great for mom entrepreneurs. She talks about cash flow and passive income, appreciation, and so much more. She then answers some questions from fellow mompreneurs who are concerned about time management, getting started in real estate, and getting the right education.
Listen to the podcast here:
Why Real Estate Investing Is Great for Mompreneurs
I’m going to be talking about something that is important for women real estate investors, especially moms. One of the things that I’ve realized over the years of being a real estate investor and why I’ve started this show is because there are a few women in real estate. It’s sad because real estate is a wonderful thing for women, especially mom entrepreneurs or mompreneurs. I want to share the five reasons why real estate investing is particularly great for women entrepreneurs. I’ve been in this business for quite a while and have a lot of experience but there have been too few women in this game and I want to change that.
Let’s get into the five reasons why it’s great for mompreneurs. The first thing is cashflow and passive income. When you have your own business and you’re an entrepreneur, especially when you’re at the beginning of your entrepreneurial endeavors, you can have a lot of feast and famine moments. Some money will come in and then it won’t. It can be a struggle when you’re beginning your entrepreneurial ventures. One of the great things about real estate investing is that it provides you these past income streams. When you have some investment property, even when you’re sleeping, working, vacationing or doing other things, money is just going to be coming in passively. It will help bridge the gap and keep you from that feast and famine struggling moments. That’s one of the great reasons why you want to be investing in real estate.
One of my guests on the podcast, CJ Matthews, when she started, she was a single mom and barely making ends meet. She said that she was getting about $10 an hour and she figured out how to get started in real estate investing by finding properties. Somebody else put in the money and she put in the work to get some properties and cashflow. From there, she was able to create a seven-figure business at the same time as she was doing other entrepreneurial ventures. Cashflow and passive income are the number one reason.Having passive income streams is one of the great things about real estate investing. Click To Tweet
Number two is appreciation. In addition to getting cashflow, typically what will happen is your property value will rise over time. You’re going to get appreciation and equity that you can tap into. Sometimes, if you need it for your business, though personally, it will be great to get business lines of credit for your real estate investing. Sometimes, you might also be able to tap into the equity in your property and use that equity either to get more properties or you can use that equity for your other business entrepreneurial endeavors. Being able to have appreciation and equity is another reason why real estate investing is great for mompreneurs.
A third reason, which is huge, is that it is a lifestyle-friendly business. Remember what I was talking about is cashflow that’s mostly passive. That means that while you’re making your money through real estate investments, your time is freed up for you to spend more time with your family, with your travel and not struggle so much with business. It gives you more time. As a mom, we realize that time is our most precious resource. Time that we can spend with our families is invaluable. That is one of the wonderful things about real estate. It gives you not just the ability to have financial freedom, but it provides you time freedom as well.
The fourth benefit of real estate investing is the tax benefits, which is huge. The federal government has decided that they want to promote property ownership. For that reason, there are all sorts of tax benefits in the tax code. These tax benefits are way better than a lot of tax benefits that you would get from having another type of business. Rental cashflow, for example, is not subject to self-employment tax. It means that if you’re making $25,000 in rental income versus $25,000 with another business either selling crafts on Etsy or having a mommy blog that makes you money, your rental income does not also incur self-employment tax. If you’re self-employed and you have a side business, you’re going to be paying 15% self-employment tax, but that rental income has a max of 20%. It’s also not going to be taxed because it’s a max of 20%. If you had another income and you’re in a higher income tax bracket. You could be paying upwards of 30% to 35%, but your rental income will never be more than 20%.
Another huge benefit is depreciation. There are a lot of tax benefits that you get from real estate investing that you don’t get from other types of entrepreneurial ventures. The effect is that even though you’re making more money, you’re often paying less in taxes. I had a friend who was a successful business person. He had three multimillion-dollar businesses and found themselves one year owing $500,000 to the IRS. He had always thought that the more money you make, the more taxes you pay and then he learned about real estate investing. He ended up buying an apartment building in Memphis. It brought a bill from $500,000 to zero. That is what real estate does for an entrepreneur.
The last reason why it’s great for mompreneurs to be investing in real estate is that real estate investment allows you to leave a legacy for your kids. Not only can their children inherit property, but they will likely increase in value and set them off a profitable life. Last but not least, you’re showing them something important about wealth and building, so you’re not going to leave the property and teaching them how to grow and maintain wealth. Most kids are taught that they have to trade their time for money, but you can be a wonderful example to show them that you don’t have to work for your money, your money can work for you. Those are the five reasons why real estate investing is particularly great for mompreneurs.
I opened up the lines to some guests who have called in for questions. The guest call-in number is (323) 642-1557. If anybody has a question, just pipe in and share it.
I’m Margaux. How are you?
I’m great. Thanks for calling in. What’s your question?
It’s my pleasure. My question is how do you organize your time as a self-employed mompreneur, so you can get your business done and be at home with the kids?Education is the most crucial piece needed for a real estate investor to be successful. Click To Tweet
I block my time. I set aside about 10% of my time for CEO time where I am working on my business, not in my business. About 30% of my time is spent on marketing and 50% of my time is spent on delivering either working in finding properties or doing my Real Estate Investor Goddesses work and delivering what I do. The final 20% is admin and keeping the business running. That’s how I go on my calendar and I block off hours of time so that I can get it done. I try to turn the clock off for work so I can be available and around for my family and my kids when it’s time for that.
You’re welcome. Thank you.
My name is Ana. I have a question. What does it take to get started in real estate investing?
It’s a bit long to answer all here, but I do have a wonderful guide available on my website. It is called The Real Estate Success Blueprint: 7 Crucial Steps Every Woman Must Take to Be a Successful Real Estate Investor. That’s available on my website, REIGoddesses.com. If you sign up for that free guide, it’ll share those seven steps that you need to take to get started in real estate investing.
My name is Desirae. As a mompreneur, I know that you have limited time. What about money? How much money do you need to have to be able to start investing?
The answer is a savvy woman who knows what they do can get invested for as little as zero. You have to invest in time and education to get what to do. I had given the example of CJ Matthews, who was on the show. She didn’t have any money. She was making $10 an hour. What she did was she got educated and somebody who had money. He was a former Microsoft employee. He had some stocks that had gotten invested and a lot of cash on his hands, but he wanted it to be working better for him. She was able to go out and find some properties that would cashflow that would help his money to grow. She did the work and they split the profits 50/50. He was thrilled and she was thrilled. She ended up getting fifteen houses doing that and partnering with other people using none of her cash. That’s one strategy that people can employ to get invested in real estate. There are lots of different ways to do it.
This is Freshta. My question is about education. Since you mentioned that getting an education is important, can you elaborate a little bit as to how to go about that?One of the wonderful things about real estate is it gives you not just the ability to have financial freedom, but time freedom as well. Click To Tweet
Education is probably the most crucial piece to be successful for a real estate investor. The more you know, the more you can avoid bad things and the more you can see all of the opportunities that exist out there. I’m a huge proponent of learning as much as possible. I personally am always learning. At Real Estate Investor Goddesses, we have an educational program called Wealthy Goddess Program where we show women how to get started in real estate investing. Also, you can check out my book, The Real Estate Investor Goddess Handbook or my free guide on the website, The Real Estate Success Blueprint: 7 Crucial Steps Every Woman Must Take to Be a Successful Real Estate Investor and then continue to learn. If you’re on this blog, then that shows that you’re a learner. You’re seeking knowledge so you can get current knowledge and information.
Thank you. I appreciate it. I will definitely go to the website, check it out and read your book.
My name is Makita Birdsong. I wanted to know, is there a certain age limit where you can start investing? Could this be possible for a teenager who may be interested in getting started?
A teenager would probably need some support to sign a contract that would be valid, but they can definitely get in the game and get started. I have my kids investing in some of our syndication, our group investing opportunities. We get outside investors, but we get our kids to put some money in as well, so they can see what happens when their money’s invested and how it grows. They receive checks and they put it in their accounts and they spend it wisely. We talk about how we budget. It’s great for teenagers to get invested in real estate and it’s wonderful if there’s a helpful adult that can help guide them and support them on that when they do that.
Thank you all and we’ll see you next time.