As the lottery motto goes, you can’t win if you don’t play. And that true in all investing. But unlike winning the lotto, real estate investment isn’t dumb luck- it’s art that requires you to do your due diligence, conduct research, run the numbers, get creative sand take calculated risks in other to succeed if you’re up for the challenge. Then it’s time to discover how to get in started in real estate.
What do I mean by real estate
When I speak of real estate, I am talking about rental real estate that produces positive cash flow, the term “real estate” covers a whole array of products such as:
- Single-family homes
Pros of real estate investing
- Tax credits are available for low-income housing, the rehab of historical buildings, and certain other real estate investments. A tax credit is deducted directly from the tax you owe.
- In some countries the gain from real estate can be postponed indefinitely as long as the proceeds are reinvested in other real estate.
- If your perperty is purchase and managed correctly, real estate can provide tremendous opportunities for cash flow.
- you may pay 10©, 20% 30% as a down payment, and a bank, lending institution, or private party provides the rest of the funding. You can own a $100,000 property for just $10,000 or $20,000.
- As cash-flowing property is not subject to the daily ups and downs of the markets. It is typically a long-term play. A down real estate market can actually be the best time to buy.
How to start.
There’s one surefire way never to make any money in real estate: not to invest. Yet everyday, people tell me they would love to invest, except….
- They don’t have any money.
- Don’t know what the options is.
- They are scare of making mistakes.
- They are not sure is the right time, and so and so on.
But the truth still remains you loss hundred percent of shots you don’t take. If you have never start investing you can’t really reap the rewards and escape that rat race. So let address the most common excuses that has being drawing many away from investing.
many has come to me telling me that lack of money has being there major hindrance why they haven’t invest. I have always try to bring there attention to themselves, by telling them they have the money which is actually there.
They have it, but simply choose to spend it on something else, if they can look on there budget and allocate the amount amount they feel comfortable spending on investments each month. Sure you might have to cut back on other area a bit.
Before you dive in why didn’t you start with a workshop even the one for free, to educate yourself.
You’ll want to find the right first property to begin, and this takes patience and number crunching. Pick an area where vacancy rates are low and choose a property that offers the amenities people are looking for.
You’re investing for cash flow (not for flipping), the market direction really doesn’t matter to as much. You aren’t hopping to earn a quick profit by selling before your mortgage paperwork is even dry.
May be feeling excited and ready to jump right into your first real estate deal, that’s great! But before you dive into deep end. Let cover few important basics.
Invest in cash flow,
When I speak of real estate, I’m talking about rental real estate that produces a positive cash flow. If you are investing for cash flow, the markets direction is no longer important, nor do you need to worry about liquidiy. Your goal is to collect monthly rent for profit- and and any gain in value of the property it’self is a bonus. This long term play is much less risky than what the pundits want investors to believe.
Flipping purposes is much more market driven- you could end up spending quite a bit of cash to renovate a property and then find yourself unable to sell it (or being forced to sell for a loss) that’s just not a gamble I’m interested in making.
Hardness the power of cash flow
One of my favorite stuff about real estate investing is using other people’s money (OPM) to invest on a typical real estate investment, you’ll put down around 20% of the value of the investment why the banks but down the other 80% but if you are really savvy, you can find investors to cover the other 20% down payment, limiting your cash expenditure, why collecting fees for brokering the deal. This allows you to have the potential for a much greater return on the investment (ROI)
be open to unexpected opportunities
It’s important not to be limited in our terminology. When people ask me how to get started in real estate, I always encourage then to be open to a wide range of properties, such as simple, family houses, duplexes, triplexes, or apartment buildings, multiple office buildings, retail stores, retail shopping centers, big box stores, self storage facilities and industrial warehouses, and so on as you can see, there is a ton of variety in real estate, so choose the property that best suits your interest. And below are three important reasons I want you to be a real estate investor.
3 reasons why I want you to be a real estate investor.
- No limit on income: the money you can make is unlimited unlike our cooperate glass ceilings, there’s no inequality between gender. You are completely responsible for and in control of the amount of money you can make. research shows that women with the same education and experience as there may counterpart, earn about 79% out of 100 for every dollar there male partners earn. This should be a real motivator for you if you are a woman reading this post, because on this part no one is going to tell you how much you can make.
- Increased self-esteem: I’ve seen people’s self-esteem soar once they know to make it on their own financially. And when people’s self-esteem rises. Then their relationship around then tend to improves. And their life improve overall becauses they feels good about themselves. With every little Victory you accomplish, your confidence increases, and increase confidence leads to higher self-esteem, higher self-esteem leads to greater suceess, which untimately leads to the greatest gift of all freedom.
- Control of your time: real estate investors are in control of their time. Investing is something you can do part-time or full-time. It is something you can do from home, from office, anywhere and one big impediments people have especially women is there time. This is especially true for mother’s who often spend many of their walking hours taking care of their children. I’ve heared from many women, “after I come home from work, I have to get dinner ready, help my kids with their homework,and clean up the dishes by the time everyone is in bed and I have free moment for myself then I am exhausted!” Though is true,but this not a big excuses any extra time you have in a day is best.