Are you curious about real estate investing? It doesn’t have to be complicated or expensive. Over the next 6 weeks I will be giving a beginner’s guide to all things real estate investing. This guide will explain what real estate investing is, different types of investing, and how to evaluate an investment property. By the end of this guide, you will have a basic understand of the real estate investing world and maybe even a little inspiration to take that jump!
“Ninety percent of all millionaires become so through owning real estate.” – Andrew Carnegie
Why Invest in Real Estate?
There are countless places to park your money other than under the mattress. Stocks, bonds, CDs, savings, and real estate are a few places. Many investors’ reasons for investing in real estate is financial freedom. Though they may be seeking differing returns, they want to create long-term wealth. Investors seek:
- Tax Benefits
- Cash Flow
Overall, investors want freedom and passive income. When you start real estate investing, you start controlling your own investments and returns. The major appeal for many investors is the tangibility of real estate assets. An investor’s actions with their asset relates directly to their returns. No other investment vehicle can you touch and directly impact asset performance.
Is this another “Get Rich Quick” scheme?
We’ve all seen the commercials and ads of the real estate “guru” driving fast cars and living in lavish homes. Could it be this easy? Though many investors build extreme wealth during their careers, it doesn’t happen overnight. Gurus create an image of a lifestyle appealing to most. They are able to charge an absurd amount of money for guides, classes, bootcamps, mentoring, etc.
Real Estate investing takes preparation, planning and patience. Don’t plan on making millions of dollars year one, but plan to grow steadily by making smart investments in line with your financial goals. Through this guide you will learn the basic fundamentals you can apply to investment property search and begin to build your investing profile.
I have a full time job can I invest?
YES! There are hundreds of ways to make money in real estate. Some require 40 hour weeks, while others 40 hours per year. Growing your real estate portfolio is dependent on your skills, personality, timeline, and investing strategy. Becoming a successful real estate investor doesn’t mean you need to quit your job, you need to learn the fundamentals and pair your investing strategy with the amount of time you can contribute to your portfolio every week.
At first, it’s highly advantageous to continue working a full-time job because you don’t need to live off of the real estate cash-flow. Rather than spending the real estate cash-flow on everyday expenses, reinvesting those profits will grow your business exponentially. Another major advantage is that you will find financing much easier to secure. A stabilized income possesses less risk for a bank to finance your project. You will receive more favorable terms that decrease your debt service (mortgage) payments and increase profitability.
There are a few ways to invest while maintaining your current job.
- Serving as private or hard money lender
- Investing in notes
- Partnering in a large property investment
- Purchasing Buy and Hold property with a Property Manager in place
Both full time and part time investing can be highly profitable, but don’t just dive in without a “set in stone” plan. I hope over the next six weeks this guide will educate and help you plan your business! If you have questions, comments, or even property to analyze I want to help! Feel free to reach out whenever.