Why I’m renting even though I’m a Realtor®

I am very hesitant to explain to people that I am renting.  Why?  Because I’m a Realtor®!  My job is to sell houses, so shouldn’t I practice what I preach??

Simple answer is that I became a Realtor® at the end of my stint at the Texas Boys Ranch.  When we moved off the Ranch, I could not qualify for a mortgage to buy a house, because my income was commission.  In a typical mortgage loan, lenders will not use commission income to qualify you for a loan, unless it has been earned for at least 2 years.

The hard answer is that I really don’t want to own a home right now.  Here is why:

  1. Down Payment:  I have not saved up enough for a down payment
  2. Flexibility:  I just moved into my second rent house in as many years!  I’m not tied down…
  3. Balance Sheet:  After reading some books such as Rich Dad Poor Dad and 10X I realized that if I am buying a house, I am not really buying an asset in the business since of the word.  I am buying an expense.  This is something that I will spend 15-40 years paying down, and eventually will have paid off…but to what end?  So that I don’t have a mortgage payment?  So that, finally after 40 years, I will free up some money that I can spend on…Retirement?
  4. Acquisitions: instead of buying an “asset” that only sucks my money away from my checking account (aka owning the house I live in), I want to buy assets with other people’s money (OPM), and allow that asset to pay me cash flows that in turn cover my rent payment for the house I live in!

So do I recommend this for you?  While this is the strategy that I am using, is it for you, too?  Maybe.  Maybe not.  It really depends on your unique situation and circumstances.  Your goals and dreams.

This kinda stuff is my wheelhouse.  I love talking about it, studying it, learning about it from others, and experimenting with it.  If you have a different opinion on the matter please let me know by commenting, emailing, or however you want.  I would love to hear your thoughts.  By no means do I think that I have all the answers nor do I think that there is any 1 way to live.

 

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