I’ve recently been going through our kids’ toys, eliminating what they’ve outgrown and thinking about what they’ll be into next. While they are still a little young right now, I am excited about having family game nights in the near future once they are all a little bit older. Playing games like Life, Clue, and Monopoly will create lots of memorable family time and keep screen time down, even if just for a little while.
As a kid, I loved playing board games with my family, and Monopoly was always one of my favorites. Looking back now, I realize that this fun board game is actually the perfect teaching tool when it comes to real estate investing, and even more specifically about flipping houses. At Rules of Renovation, we decided to break down the game of Monopoly just so you can see how playing it really can teach you about real estate investing!
Invest Everything Possible
How do you win when playing Monopoly? The answer is pretty simple—just purchase any and all properties that you can afford! The same goes for real estate investing, too. While fixing and flipping one property at a time makes decent money, having multiple flips happening at the same time allows you to consistently bring in cash which enables you to invest even more—and without help from an investing partner or money lender if you so choose.
Multiples Strategies Can Lead to a Win
What is your favorite Monopoly strategy? Do you buy places with high rent like Boardwalk or Park Place? Or do you stock up on the properties that other players land on most frequently once they get out of jail? While there’s not one single way to win the game of Monopoly, there’s more than one acceptable way to invest in real estate. You may prefer fixer uppers/flips while others prefer fixing-and-holding properties or even just stick with wholesales. With a good strategy in place, you can make just about any investing niche work for you!
Understanding the Rules and Using Them to Your Benefit
When playing the board game Monopoly, players who have a good grasp of the rules obviously have a better chance when it comes to winning. This is the exact same principle with real estate investing. When you understand the rules, laws, and regulations, making better investment decisions comes easy, not to mention you’ll more likely make the right moves and invest in better properties without a visit to jail (or, when it comes to real estate deals, paying a hefty fine)!
Location Makes All the Difference
In the game of Monopoly, location always makes a difference, regardless of your strategy. If you don’t have a plan and just buy up every property you land on, you will likely be broke before benefitting from any of your properties. However, if you think it through and pick and choose your investments, and waiting for the right properties may mean you get a better deal and a better pay off much sooner.
Just keep in mind that when looking at potential investment properties, you need to think about area property values, how much commuting is nearby, if the properties are in good school districts, and any other pertinent location details. Then, when the perfect deal comes along, you will be free to invest your money just like you had hoped all along.
The more time I spend thinking about it, the more ways I came up with that playing Monopoly can be applied to real-life investing in real estate. What are your thoughts? Are you already considering finding your old board to play tonight? Sign up for a free Rules of Renovation class today!