| When it comes to real estate, the topic of the day is | | | | to increase in value over time without any serious |
| the downturn in the market, the number of people | | | | instability. Although, there is currently a housing crisis |
| losing their homes, and how much this is going to hurt | | | | in various parts across the country, every indicator |
| the economy. In the seventeen years I have been in | | | | points out that what we are actually experiencing is a |
| the real estate business, I have witnessed every | | | | readjustment of highly inflated real estate prices. Just |
| fluctuation the market has to offer. While it is true | | | | as prices may be dropping, in time they will |
| that many property owners are enduring trying | | | | undoubtedly increase. In contrast, the stock market |
| times, rarely does the same happen to | | | | has put investors through a dizzying rollercoaster ride |
| knowledgeable real estate investors. | | | | made up of swift highs and abrupt lows throughout |
| There are those individuals who remain emotionally | | | | history. Regardless of what type of market we are |
| unattached and invest wisely in real estate. As a | | | | in, it is clear that an investment in real estate |
| result, they live a very comfortable, if not lavish, | | | | guarantees a profit over time. |
| lifestyle. Investing in real estate, especially during a | | | | 2. No Cash Necessary |
| downturn, can widen an investor's opportunities and | | | | For beginning real estate investors, sometimes the |
| bring about lucrative returns. This is a truth. If you | | | | only investment they can make is their time. For |
| are thinking about becoming a real estate investor or | | | | every real estate investor, finding a lucrative deal is |
| have already made the decision to start, the | | | | as good as striking oil. There are plenty of seasoned |
| following information is priceless. | | | | investors with money in their pockets itching to buy |
| Wanting to secure a comfortable financial future, | | | | a piece of discounted property. Wholesalers often |
| most of us go to work every day hoping to build a | | | | utilize this method. Therefore, if you are new to the |
| nest egg. Since, it is common knowledge that real | | | | game, consider finding a deal, tying it up and |
| estate investors have the capacity to not only build a | | | | connecting with an investor who can take it off your |
| nest egg but also create a fortune, why aren't more | | | | hands...for a price, of course. |
| people joining the ranks of real estate | | | | 3. Almost Anyone Can Do It |
| multimillionaires? Why aren't there more people | | | | Real estate is such a lucrative field that it opens |
| fighting for a seat on the real estate bandwagon? | | | | doors to countless amateur investors everyday. |
| Well, the truth behind real estate investing is that it is | | | | There are how-to books and seminars at every turn |
| a business and therefore, must be treated like one | | | | teaching would-be investors a myriad of ways to |
| for it to prosper. Just like any other promising | | | | make huge profits in the real estate market. While it |
| venture, investing in real estate requires a | | | | is true that overnight success is practically unheard |
| well-defined vision, a strategic plan, and an | | | | of, anybody with the heart, mind and determination |
| entrepreneurial mindset. Even with the overwhelming | | | | can make it big in real estate. The keys are to |
| evidence revealing success, only a microscopic | | | | continue learning and to monitor market conditions. |
| segment of the population is willing to take the risk, | | | | 4. Leveraging Power |
| do the work and follow through. The rest simply | | | | While novice investors can turn a quick profit by |
| watch and call those of us doing the work "Lucky". | | | | wholesaling their deals, Buy-and-Hold investors can |
| When I began my career in real estate, I didn't have | | | | yield a profit by borrowing against (leveraging) their |
| a plan. I didn't invest. I didn't even see past my next | | | | properties. Typically, lenders will allow holders of |
| commission check. What kept me hanging on was a | | | | owner-occupied property to borrow up to ninety-five |
| desire to live like the people I worked for, most of | | | | percent of their property's value and up to |
| whom were real estate investors. Years later, I | | | | eighty-percent of non-owner occupied units. This |
| committed to create serious wealth through real | | | | means that you can either purchase property with a |
| estate. As soon as I mindfully committed to my goal, | | | | minimal out-of-pocket investment or acquire financing |
| I began to make deals and more money than ever | | | | that will allow you to pull cash out of your property's |
| before. | | | | equity to use for future ventures. |
| By choice, I am not one of those investors who | | | | 5. Tax Breaks |
| vacations six months out of the year. I work all the | | | | The popular 1031 exchange and depreciation are just |
| time meeting with clients, looking at properties and | | | | two of them. The United States government has set |
| refining my strategy. Add to that a growing number | | | | up multiple tax breaks favoring real estate investors. |
| of mentoring/coaching clients and my schedule is | | | | Owning real estate with the goal of making a profit |
| officially full. Nevertheless, I am continuously | | | | allows you to deduct interest payments, repairs, and |
| increasing my net worth as I am doing something | | | | vacancies among other expenses when preparing |
| that never feels like work. | | | | your tax return. It is important to note that |
| Besides creating amazing wealth, being your own | | | | purchasing real estate makes economic sense; it |
| boss and having a place or two to call home, owning | | | | should not be purchased solely for the tax benefits. |
| a real estate investing business has many other | | | | Ultimately, owning a real estate business is the way |
| advantages. The following five play a special role for | | | | to achieve financial freedom regardless of economic |
| the novice investor. | | | | conditions. Whether you quit your job and dive right |
| 1. Safe Investment | | | | in or you work at it in your spare time, you can |
| When we use a timeline to compare the real estate | | | | make it happen. Worthwhile benefits are waiting |
| market to other investments, such as the stock | | | | faithfully for the taking. |
| market, it is easy to see that real estate continues | | | | |