The average person doesn’t know how to get started investing in real estate, and therefore, gets their cash flow from a nine to five job. That scenario is the exact opposite of being financially free, because cash flow doesn’t come from depending on a job you have to go to everyday in order to get paid. Financial freedom happens through investing in things that make money for you.
Now, real estate investing may look like risky business to some, and that’s true, because it definitely can be. But just about anyone who works smart enough, and hard enough, can use real estate investing as a way to increase their wealth. Many people ask why they should invest their money in real estate. I say because future retirement based on cash flow from a rental property isn’t a dream, it’s a real-life possibility.
So here are a few of the keys, from a much larger list, to investing in real estate:
Pick Moderately Priced Properties. Keep in mind that expensive homes in sought after areas like the oceanfront usually have low cash flow returns. You’d be better off investing in a more moderately priced property with a higher cash return.
Know the Neighborhood. Don’t buy a property in an area you’re not familiar with. Know the history of the neighborhood, and do your research. Find out how the schools rank, what the crime statistics are, and if there is any noise or air pollution that could affect your ability to rent out the property.
Choose One Investing Strategy, and Master It. Some people get caught up and lose focus, and in their defense, it’s easy to get distracted. But if you want to be a successful real estate investor, don’t give in to the temptation of dabbling in a bunch of a different strategies when you’re just getting started. Focus on one investing strategy, master it, and then you can try out something new.
Learn from the Experts If you’re looking at getting started with real estate investing, reach out to the experts in your community. Join a real estate investing club and reach out to experts online. Invite a local broker to lunch and pick their brain for ideas on your tab. If you want to be successful with real estate investing, surround yourself with successful real estate investors. Also, constantly read new real estate books, blogs, and eBooks about smart real estate investing strategies.
One question that I get a lot: If you had $50,000 to invest today, what would you do with it?
As I said, this question is very common. The amount varies depending on who is asking the question, going from $5,000, $50,000, $100,000, $1 million to even $10 million. The question itself introduces a restriction, in other words, the question is directing you to a limitation of yourself based on your money only. The richest people in real estate actually make money by raising money from other people.
The quickest answer is that you should invest in someone else’s deal, but of course, learn all you can about the deal so that you understand it.
Or you can use the $50,000 and buy something yourself. Use the $50,000 as your 20% down payment and leverage (borrow) the remaining purchase amount.
The better answer is to understand what makes a good deal so that you are able to identify one on your own. By learning cash flow and understanding how to build a team, you will be able to find deals on your own and be able to raise money from other people interested in real estate investments. Real value comes from your ability to see how the cash flow from a property can support the necessary equity and debt that is required to own it – and then presenting that analysis to the right investors and bankers to raise the money. So, as with a lot of things in life, education is key.
Join Ken as he speaks with Kathy Fettke about making your first real estate investment in a single family home. They talk about the reasons why you would consider it and some of the pitfalls that Kathy sees with new investors.
Join Ken in a conversation with Rich Fettke from Real Wealth Network. Rich discusses his coaching practice and the tips and techniques he uses everyday. He also expands on his use of “future focus” for both himself and the people he works with.
What you should know about your future… | Podcast: Rich Fettke
To get a free copy of Ken’s eBook “21 Keys to Real Estate Success” just visit this link: https://7rxyf2er.pages.infusionsoft.net
To subscribe to Ken’s podcast in Apple Podcast visit this link: (https://apple.co/2XHXD7C) or search your favorite podcast app!
Join Ken and Rich Fettke as they discuss ways to achieve your goals in real estate and life. To learn more about Rich, visit his website at www.fettke.com.
Join Ken as he talks with Andrew Lanoie about mobile home park investing. Andrew speaks from his experiences about the opportunities and challenges of investing in the affordable housing sector of mobile home parks.
Join Ken as he talks with real estate syndication attorney Mauricio Rauld about the big potential for investing in opportunity zones. Although these aren’t for every investor, if one of these transactions aligns with your investment criteria, it can provide a significant boost to your returns.
You can learn more about Mauricio at his very active Facebook page.
Ken and Tom also give insight into the unique structure that he uses to finance his business real estate. It something that every real estate investor will be interested in.
A champion and advocate for entrepreneurs and real estate investors, Ken has spoken worldwide at top industry events. With media appearances on television and radio, Ken also host Entrepreneur Magazine’s Real Estate Radio program, where he helps listeners navigate the financial and legal arenas of real estate.