How To Invest In Real Estate
Understanding the basics of investing in real estate, and what investing in real estate can actually do for you is the key to this recipe. You can go to college and get a certificate as a realtor, however, real estate investing can be done completely on your own with no degree!
Let’s create a list of basic key points to cover for Investing in Real Estate:
Investing with Your Own Money
Different Types Of Real Estate Investing
Why Should People Invest in Real Estate
Get To Know Some Common Terms
In the world of real estate, regular people buy houses and plan to live in them with their families. They pay a monthly mortgage which states how much they pay, and when to pay.
Most would consider their home an asset of hundreds of thousands of dollars!
However, what actually makes an asset, an asset?
“A real Asset puts money into your pockets.
A fake asset (a.k.a Liability,) takes money out of your pockets.”-Robert Kiyosaki
For instance, owning a home that a family pays for out of pocket is considered the norm. But in fact, investing in a house and having another family to live there, is a great service that is in high demand. For example, Air BnB is a greatly trusted company across the world that offers different types of properties for temporary housing rentals!
No one ever told me growing up that there are different types of debt! All my family knew was that you have to go into debt, to own a house, or most likely a decently new car. However, good debt is defined as debt that is in your name, but you actually make that purchase cash flow! As they say in the real estate world! Cash flow just means that the debt is paid, and then there is profit on top!
Housing and real estate have no intentions of vanishing anytime soon, so why not see what possibilities there are to make more money!
OPM stands for Other People’s Money. Harsh as that may sound to an average civilian, it is, in fact, one of the most connecting ways for people to partner together and create an income together! Now, people always say to not go into business with family or close friends? I think it’s up to you and how you handle the situations…
The world of real estate is full of paperwork, signatures, and people. It’s a people business after all. Anyways, investing in real estate gives you a lot of opportunities and advantages in the world of money. Investing with a partner, or other people’s money is a familiar term that you may hear at real estate seminars or YouTube!
Investing With Your Own Money
Before I ever understood real estate, I first realized that you can’t invest with bad debt eating at your ankles!
Bad debt consists of those pesky credit cards that just never seem to go away with their high-interest rates! In fact, it’s said that credit cards should only be used to 30% of their max limit. Ex. $1,000 max limit, it is advised to only use $300 of it MAX!
Bad debt also consists of HOUSE PAYMENTS, car payments, and finally, your smartphone payment is what most people make sure to pay the most.
In order to invest successfully, you need to have ALL bad debt taken care of and wiped clean of your record! Trust me when I say that you cannot create wealth while you have a heap of bad debt. Create GOOD debt and prosper!!
Do You Need College To Invest In Real Estate?
The internet is full of FREE information! Why pay to go to school for it (Non-tax deductible student loan), when you can learn everything at your local bookstore or library, and become a self-taught pro?!
It is absolutely possible to create an income with real estate without any college experience or degree!!
Check This Out:
Above is a link that goes to one of my favorite YouTube channels that is all about investing in real estate and financial evaluation!
Different Types Of Real Estate Investing?
Mostly revolving around residential areas; basic house that people would call a home! These are a great starter property for anyone who just wants to get out of their parent’s house!
There is a big difference between a house and a home. A house is a piece of real estate property. A home is someone’s place of living physically and emotionally! People put their families and feeling into these properties, truly making it their own for decades to come most likely. Now isn’t that a goal for everyone? To live in a HOME with their families? I guess it’s up to who you’re asking!
Turns out, you can purchase a single apartment unit, and then either live or rent it out to someone else! At first, I thought nothing of this idea, but then I started to think why not? It’s just like any other property, just with its own set of statistics and financing! You can find apartment unit listings for sale on several popular mobile applications!
Real Estate Investment Trust are consisted of companies that own several commercial properties and buildings! You are able to invest in shares of these companies in a whole, and by which you can manage your investments actively.
Now REITs are much more accessible than buying a new home or property! REIT’s are located on the Internet, and you purchase them from companies, websites, or on the stock market! Available to nearly all countries around the world, this allows people to “own” real estate, without having to own any physical properties! You just own a little bit of several properties or real estate company shares.
Multi-Family (Duplex, Tri-plex, Quad, etc.)
This is where real estate gets really exciting and interesting in my opinion! Having multiple units, under the same mortgage payment! This allows for a great experience with people and learning the real estate game!
For example, in a First Home Buyer Loan, you can purchase up to a Quad-plex and qualify for an FHA Loan! This is absolutely amazing! Probably one of the secrets they don’t want you to know!..
Why Should People Invest In Real Estate?
Investing in real estate will be one of the best asset vehicles known to man for years to come. Everyone needs a place to live. So why not help create a living service for people??
YOUR 401K IS NOT GOING TO SUPPORT YOU THROUGH RETIREMENT
To put it simple, 401K is not going to support you for your entire retirement. The normal thinking in the middle class is that you will retire around 65 years old and just prosper till death? When the reality is that most 401K accounts are almost completely spent by the time people want to retire.
About 70% of Americans only have $40,000 in their account when it’s time to retire.
Why do people only rely on 1 flow of income to live off of? Because that’s most likely what their parents did? It wasn’t taught anywhere in school? (Some schools maybe) For the most part, money knowledge and information has been up in the air for manipulation, or carelessness to educate oneself about money.
Who? If you know about the benefits of investing, then identify your risk, and invest, other than save! Saving your money in a bank account is beneficial, but has a limit as to what they can do for your money.
What? To invest in real estate, is to invest in a true retirement fund. More likely, a retirement INCOME! With 2020 and beyond, you will continue to grow and see improvement in the knowledge that you attain.
Why? At the end of the day, it’s always up to you to decide what you put your money into. All we can do is to provide information on what investment opportunities there are. Real estate investing is a tool. Nothing more, nothing less! An income that can be either passive or active depending on your personal affiliation with the process!
Where? Everything is accessible online. Seriously! Grab your phone, grab a notebook, and learn something new about investing in real estate! The space is constantly growing and changing to help people wreak the benefits of real estate properties!