Learn To Invest In Real Estate
Learn To Invest – The Smart Way
I decided to create this page as a resource for basically anyone. Doesn't matter who you are, here is a ton of information you can use that can help you save time and money. We'll discuss everything real estate specific: from investing to simply buying a home for personal use.
Right now is a great time to be buying real estate. And here's why...
All the signals are telling us to buy.
I had someone ask me a question the other day. “Is there ever NOT a great time to buy?”
This is a great question because it seems like no matter where you turn or what's happening in the marketplace, everyone is saying, “Now is a great time to be buying.” Even in 2007, everyone was saying, “Buy, Buy, Buy! Real estate is going up like crazy.”
My response to that is: Yes, you have to be careful and understand what the market is telling you. You need to be educated. 2008, 2009, 2010, 2011, etc, there was a lot of money made in real estate. My question is, “what end were you on?”
Because so many people were starting to lose their homes, the smart investors were flipping deals left and right. The great thing about knowing and understanding the real estate business is that money will always be made no matter what the market is doing. Sometimes there may be more opportunities than others, but you can always make money in real estate.
See, it's all about buying at the right time and buying the right properties. Buy low and sell a little higher than what you bought it for, right?
Here are some things you should consider...
1. Don't buy vacant land – why? Because if you do get stuck with it, how are you going to monetize it. If you have an exit strategy where you plan to “charge” people to use the vacant land to cover your expenses, then you'd better have done your homework. I would not buy a vacant piece of land out of speculation either, just know it's very risky. A better solution is to have someone who is interested in that vacant land and you flip it to them. Completely eliminates the risk and you walk away happy.
2. Learn to take risk out of the equation. – There are a lot of strategies where you can limit your risk so it doesn't even exist and still make a ton of money. Doing an assignment is one way. Literally costs you nothing but your time and there is no risk. Doing a lease option is another. Giving someone else the opportunity to live in a home and pay you to set it all up, there is no risk there. Wholesaling a property using transactional funding is the third way. This is what I do. I don't buy or close on a property until I have an end buyer lined up with CASH to buy it from me. How can I lose on a deal like that? I can't. If my buyer doesn't bring me cash, I don't close. I simply look for another buyer who wants a great deal on a property.
3. To get too extended – If you are buying a home for personal use, don't get over extended. We've seen the effects of what happens when homeowners get more than they can handle. It doesn't end well. Just get what you need and what you can afford. You can always upgrade down the road.
There is a lot to learn in real estate. You can't learn everything in one sitting either. So enjoy all the other articles.
P.S. If you really want to learn about investing and do it the right way, you need to follow me. I’ve been teaching students how to invest for nearly 20 years. I can show you how to be a smart investor.