The deals out there today are phenomenal if you really know what you’re doing. Real estate is a living thing; while it’s never as volatile as the stock market, you can lose just as much money in a short period of time if you don’t properly invest in your education.
For example, there are investors in markets all around the country buying duplexes and single family homes. They both own 10 units which they purchased at a discount, but why is one of the investors cash-flowing over $7,500 per month and the other less than 2,000? In Real Estate, there could be many answers, including factors regarding the local market trends, but the real answer is level of education and network typically.
Real estate comes with an abundance of perks. It almost doesn’t make sense not to invest, especially with the market the way it is today. Real Estate is often to as the IDEAL investment. Properly played you can expect to see: Income(monthly cash-flow), amazing tax Deductions, Equity, Appreciation, and Leverage.
Many novice investors simply don’t do their full diligence when it comes to investing. Some basic examples of the consequences you can face for not being fully educated real estate include: discovery of mold or termites, poor foundation, water damage, and liens and judgments against the property. All of these issues can be relatively simple to spot if you’ve taken the time to surround yourself with other savoy investors and business contacts in real estate. Solidify a sound relationship with a good home inspector and title company are a couple of the musts for proper investing.
Some other great tips on r.e. investing that can save you thousands of dollars in the long-run include: getting to know your local REIA (Real Estate Investors Association) and finding a sharp, investor-friendly Realtor. Many Realtors don’t really do much or any investing. A million dollar tip that Robert Kiyosaki teaches is to avoid doing business with individuals who do practice what they preach. For example, it’s probably not a good idea to take real estate tax info from a CPA who does not invest him/herself. Work with real estate professionals.
Don’t let the pit-falls hold you back. Investing in real estate is the smartest way to wealth in the world. Over 74% of the Wealth in America either made or hold their wealth in r.e. Take the time to get educated, properly in real estate, you will pay for your education either way. Finally, remember to surround yourself with other like-minded individuals and good mentors in Real Estate. It makes for a phenomenal life.