More frequent than not I hear the following “My spouse doesn't support my real estate investment”. I believe this subject comes up because it's uncommon that you and your wife both have the aspirations of being a real estate investor. What is to differentiate this investment opportunity from that last stock you thought was going to take off or the latest cryptocurrency trend? What is to convince her this time is different?
Perhaps the most important person in your life will need some convincing your next real estate venture is a responsible step forward to secure your future. However it's not just about “convincing” your spouse investing in a rental property is a good idea but more so in regards to several components that will directly affect your reason, decision, and time.
“Behind every successful man is a proud wife and a surprised mother in law”
Hubert H Humphrey
At the end of the day it doesn't matter how involved your spouse is in this specific investment decision, what does matter is the impact they have on your everyday mentality, free time, ambitions, finances, present/future decisions and just about every other aspect of your life. From my experience your spouse is likely to become your confidant when making those tough decisions and it is imperative to think of them as an ally. Avoid thinking of your spouse as someone who needs to be persuaded and try and think of them as someone who you can bounce ideas off of; I guarantee she will take the investment more seriously and may bring some great points to the table.
1) Become an EXPERT
The first step to show your spouse that this time is different is to show her you are an expert in the field. Being knowledgeable about your investment strategy will show her you are serious and prepared to take on a significant financial decision. You will want to prepare yourself to answer all of her questions confidently by fully understanding the concept. Start educating yourself by reading Buyer's Guides, speak with different agencies who specialize in Riviera Maya real estate to cross reference information, read blogs, listen to real estate podcasts and keep up to date with current news and market trends. Completely immerse yourself in real estate investing, you want to show your spouse this is not just another fad.
When first introducing your spouse to your new life changing venture you want to involve her gradually. Try to stick to the KISS model designed by the U.S. Navy in 1960. The KISS acronym (Keep it Simple and Straightforward) was originally created to avoid unnecessary complexity while implementing simplicity.
More often than not she will start asking you questions before you introduce her, this is because you are listening to those real estate podcast and reading real estate investing books, right? Try not to overwhelm your spouse by regurgitating loads of facts, details, logics, and data like word vomit. You will be excited and enthusiastic but try to contain your excitement for the time being until you are ready, you want to ease her into the new world of real estate investment you want to avoid overwhelming her.
Instead start by introducing her to what this investment could do for the family, how passive income could replace your full time jobs one day, how you could have your dream vacation home in the Caribbean all the while making a great return on investment, outperforming your 401k, IRA and stock portfolio. Ease into the conversation, start broad and then go into details as you arrive closer to making a decision.
Once you have planted the seed with your spouse you will want to start involving her in the process. Encourage her to learn along your side. Now, I am no marriage counselor however I do know first hand there is nothing that means more to your significant other than doing things together. Start off by asking her to read some select material that you think she could relate to. Chose a book like Rich Dad Poor Dad that is a easy read and relatable. Another passive way to get her involved is by listening to those audiobooks while the two of you are driving, engage her in the conversation and ask her opinion on a debatable subject.
You want your spouse to relate to your investment goals. There are several ways to achieve this by concentrating on what is most meaningful to her. Is it your children's future? Is it padding your investment portfolio for a cushy retirement? Is it immediate cash to cover your overhead and ease the bills from a past investment gone wrong? Is it about establishing financial freedom through passive income to free up more time to spend with the family, build that new addition to the house, take the kids to soccer practice.
No matter what the reason may be, concentrate on what is most important to your spouse and reveal why and how it can improve your life.
Lastly you will want to include your spouse throughout the process. I can't count the number of times that I have had a client lose a deal because he did not include his wife in the decision making process.
Let me tell you a little story: I had a client years ago let's say his name was “Jeff” Jeff and I had been talking for months over the phone, finally he booked a trip to the Riviera to take a look at properties we had been discussing via email.
Jeff was now extremely educated on the market, knew exactly what he wanted, had his checkbook in hand, and came down excited and comfortable putting a deposit on a property this trip.
We spent 4 days together, found Jeff the perfect property, negotiated a great deal and locked down the unit with a deposit. All was well, Jeff was ecstatic to say the least, celebratory tequila shots and all. Jeff went home the next day to a whole new reality.
Little did I know throughout this entire process Jeff didn't once include his wife, ask her opinion, send her photos … nothing. Jeff figured he would go home and surprise his wife with the great news … well surprise surprise Jeff was shut down immediately.
Jeffs wife told him if he went through with this purchase it was going to have grave ramification on their relationship. It wasn't until years later I found out Jeffs wife wasn't upset because the investment, it wasn't because of the specific property Jeff chose, she was actually a supporter of it, it was solely because he did not include her in the process. His wife didn't need to be involved in the details, she didn't need to sit down and analyze the numbers with Jeff, she completely trusted his judgment all she wanted was to be included with a bit of transparency.