If you have been on the fence on whether or not to jump into Real Estate investing, it’s time to start thinking very seriously about it. There is tons and tons of information out there but let me save you a little bit of time and point out some key things to remember.
- Treat a real estate investment like a business. Management, budget, financing, the correct tools, and systems are essential to a successful flip or rental.
- Not all bank foreclosures are deals, don’t get lulled into a false sense of value security.
- Don’t listen to your friends or family unless they have done it themselves more than once.
- Find someone that does what you want to do successfully and be honest, tell them your plans, and ask the for help.
- There is never an end to learning more!
Read those key points a few times and don’t take them lightly. I have seen the high’s and low’s of real estate investing personally. You either win or learn. The only time you fail is when you stop trying. The below scenerio is what I keep in the back of my brain at all times when considering real estate as an investment.
If I buy 2 homes at minimum per year for 10 years I will have 20 single family homes. Using the average appreciation for the last 70 years of 6%, at the end of 10 years if I wish to stop investing I would be able to sell my 10 oldest properties and be able to pay off the newest 10 with money left over. That leaves me with 10 single family rentals that are free and clear of mortgages averaging in todays numbers between $900-1000/month each in gross rent. Thats almost $10,000 per month in gross passive income!!!! Not bad for 2 investments per year and minimal management and maintenance. How many of you out there work over 40 hours per week (or more) and don’t even have a pension plan or retirement plan let alone one that will pay you almost $10,000 per month after 10 years of work. Oh and by the way do you think you will be fixing a leaky toilet 40 or more hours per week in one of your rentals….Not likely.
Sometimes the easiest answers are the hardest to realize. I’m sure all of you have heard this before and a very small portion of you will actually do anything about it. Maybe you already have a great pension plan or retirement plan. Maybe you have enough money. Maybe working for the weekend is what completes your perfect life plan.
Would you like to understand more about the current market? This short article might help.
Well I hope I have energized you to try something new or retry something old. Remeber someone out there just lost their house and needs a place to rent! It’s no joke.
Happy Holidays and remember;
You must create your own system or be enslaved by another man’s (or woman’s).
-William Blake
