Youve heard the stories about people making millions in real estate, so is it really any surprise why so many people view The Opus Condo real estate as a serious investment vehicle? Real Estate investing offers more security than the stock market and provides returns of at least equal magnitude, coupled with attractive tax benefits. Apart from that it really does sounds cool to be in real estate. Lets face it, anybody can trade stocks from their phone or home computer. Real estate investment, however, is a real head turner whenever it comes to tangible assets.
One of the greatest challenges in real estate investment is finding the money up front to acquire your first real estate investment property. Surprisingly, though, this is not your biggest obstacle. Thats right. Finding the cash upfront is not the greatest obstacle to real estate investment. Facts are, hardly anyone who buys real estate has the money in their personal account to pay for it. And thats where your banker comes in. Lets face it, do you know anyone who owns their own home? I mean really owns it? Of course youll know lots of people who have a property in their name they call their own. Take a look, however, into their personal finances and soon youll discover who really owns their property. Its the bank, of course. Remember, your liability is your bank managers asset. So if these people can use the banks money to buy a property, then why cant you?
I know owning your own home may sound like the obvious way to go, but if you really want to get on the first rung of the real estate investment ladder, then this is the best way to get started in real estate investment. Why then is this first step completely overlooked by many people?
Just take a look at how many are still renting instead of buying property. Now of course the relationship between rented and private housing prices varies from country to country and even from area to area. But wherever you go you will still find many people renting, simply because in their minds they dont have enough money to buy a house. In reality, though, it would be much cheaper for them to buy.
When you rent, you are more or less throwing good money down the drain. Of course you have the pleasure of a home, but from the point of view of real estate investing, you are not actually building for the long term. Remember, every dollar you spend on rent is a dollar you will never see again. Whereas if you own your own home, instead of paying rent you are paying your mortgage. And even though theres such a variance in terms of what mortgage deals are on offer across the market, the basics of mortgages are more or less the same. Every month you make a payment which consists of two parts: interest and principle. You might compare the interest part to rent. These dollars are gone once theyre paid, however, the part of the payment that goes to the principle is money you keep. Every dollar that is used to pay off the principal is a dollar in your own pocket.
So if youre thinking about getting started in real estate and you dont yet own your own home, nows the time to take your first step towards building capital with your own real estate investment. Financially, it makes sense because the real estate investment vehicle also supplies greater opportunity for building your net worth. Simply put, when real estate prices go up, so does the value of property. Conversely, the money you owe at the bank — your mortgage remains the same. Compare this to the financial reality of those people who continue paying rent. Their net worth remains the same. However, their landlords net worth is doing very nicely, thank you, and their landlord is happy for the status quo to continue. So if you would rather build your own capital, then consider buying your own home.
Many home owners accumulate more money through appreciation of their property assets than they do working a full time job. Be warned, though, this is not always the case. As you know, the price of real estate can go down as well as up. If for some reason you have to sell your home in a down market, it can be a costly venture. In fact, you wouldnt be the first to end up with a house worth considerably less than the mortgage resting on it. So make sure you dont overstretch yourself financially by taking on too much. In the long run real estate prices have risen, but in any cycle there are down periods. By staying within your limits and being patient, youll be able to sit tight through the hard times yet profit from the long term upwards trend in real estate investing.
Youve heard about all the real estate success stories and you want to give investing a try. How do you get started?
The answer is a lot longer and more complex than the question. Frankly, it would be impossible for me to tell you everything you need to know about real estate investing in a few articles. It took me years to learn this business, and Im still learning. But we can address some of the basics.
Its important to understand that real estate is a business that takes time and effort to show positive results. Successful real estate investors work hard and put in a lot of hours. This is not a get rich quick scheme real estate investing is a serious, legitimate business that must be operated as such if you are to achieve your financial goals. If youre going to be successful in real estate investing, you have to know what youre doing, have a plan, and have the perseverance and dedication to make that plan work.
Where do you start? With education. Yes, my company provides real estate investing education, and I dont apologize for suggesting that you take the courses we offer. But whether you get your education from us or elsewhere, you need that knowledge. Think about this: do you know of any occupation or profession where you can earn a six-figure annual income that you can learn on a website, by reading one book, or going to one seminar? I dont. If you are going to achieve financial independence and build wealth through real estate investing, you need to know how to find the right investments, how to get them financed, how to manage the property you own, and much more.
The first step I recommend in your education process is to get an overview of all the various kinds of opportunities that are available through real estate. There are many ways you can generate cash and build wealth through real estate. You should understand all of them and then choose the ones that appeal to you. Its important that you spend your time doing things you enjoy; if you dont like what youre doing, you wont be successful.
Consider that these are just some of your choices: wholesale buying; purchase and lease options; pre-foreclosures and foreclosures; auctions; mobile homes; rehabbing; commercial real estate; and land development. And if you want to invest in real estate without actually owning property, consider real estate notes and tax liens and deeds. Real Estate is not a get rich quick scheme. However, if you learn the foundations and put them into practice, you will make more than enough money to realize any and all of your dreams and goals.
The real estate bubble is not going to burst. The real estate market will, however, shift and the real estate market will change just as it always has. Whats hot now may turn ice cold in the next three years . But, there are ways to bubble proof your real estate investments. Its actually quite simple. The real estate market will change and what is working today in real estate may not in the future.The rental market was strong a decade ago, but has been soft in recent years. We are getting ready for a turn once again.
Real Estate and cycles have some degree of predictability. With predictability, you can grow your real estate business into a cash-producing, profit-pulling machine that runs itself with the changing real estate market trends. It is still possible to make money in real estate. In fact, now is just as good a time as any to get started in real estate investing.
But, youve got to make wise investments. Sure, you may make some serious cash in pre-construction, but what happens if the market shifts and there are suddenly thirty five identical properties on the market for sale in the same building? How long can you afford to carry a negative cash flow on the property?
Or how about taking over property subject to? Sure, its a great strategy and lenders may be inclined to turn the other way and not exercise the due on sale clause as long as the interest rates are at rock bottom prices . What this means is simply that you must be experienced in the basics – the tried and true techniques, strategies and systems that have worked in the past, are still working and will work in the future. You have got to have all the tools in your bag so that you can go with the flow and not be affected when real estate markets begin to shift .