Why should you become a real estate investor?
There are, after all, many ways to make more money in life. Statistics released by the foremost authority on personal finance, the Internal Revenue Service, revealed that most personal wealth of US taxpayers is held in real estate. Has the thought of running your own business, being your own boss, or calling your own shots ever crossed your mind? The IRS further points out that the most likely way for anyone to become independently wealthy in one lifetime is through entrepreneurship and through owning your own business. Opportunity seekers can spend countless hours researching the best paths for making money.
If you are one of those people, you can stop your research. Becoming a real estate entrepreneur provides you with the highest probability for economic prosperity. One reason why real estate is so good for making money is that it is the IDEAL investment. Income: Real estate can provide you with steady, tax advantaged income, often referred to as cash flow. You can rent real estate to a tenant.
Overtime, rental payments from that tenant can payoff your mortgage, cover any property management and maintenance costs, and can still leave enough for you to have a steady income. Although there are other in-vestments that provide a steady income, such as bonds, and stocks that offer dividends, real estate typically provides a larger amount of income than bond coupon
When you buy a house/ houses, you purchase property at a price lower than its market value. When you get a good deal, we call the difference between what you bought it for and what it is worth equity. The old saying, “In real estate, you make your money when you buy,” applies here. When you buy a house well below market value, you instantly get equity. By comparison, someone purchases publically traded stocks at market value.
The market may undervalue or overvaluing the stock at the time of purchase, but either way, someone purchases at the exact moment a stock, the price paid is what the market will pay for it. With real estate, however, you can buy a property well be-low market value and literally turn around and resell that same property for tens of thousands of dollars a more few moments later. We do this often, actually.
Over the course of the last hundred years, studies have shown that overall, residential House has kept pace with inflation. In some areas, residential property values have even appreciated above and beyond inflation. For wise and educated investors, appreciation is an added financial bonus to being a real estate owner, not the reason to buy property.
Since predicting the future has proved to be a difficult task, buying real estate based on the other factors outlined earlier is a far better decision than betting on if or when a property will appreciate. You can only enjoy real estate appreciation if you own it. Therefore, owning as much real estate as you can, as wise as you can, can give you the best probability of gaining from appreciation. And if it comes your way, be appreciative.Buying a House is a good decision that yields great profit overtime
How to Think Like an Investor
“Man’s greatness lies in his power of thought.” – Blaise Pascal In my early years of teaching real estate to budding entrepreneurs, I would skip the mental aspect of investing and get right into the meat of real estate. It was a mistake. What I discovered was that mentoring people on the mechanics of real estate investing was fairly straightforward.
Once they had the instructions on what to do, the difference between those who succeeded and failed was because of what was going on inside their head. Having all the knowledge on how to invest will be worthless unless you have your head straight. Before you can be a real estate investor(buy a house), think like one.
That little space between your ears is powerful and unfortunately, it doesn’t come with an instruction manual. The following chapter is your instruction manual on how to operate your brain so you can be a successful real estate entrepreneur. Plus, at the end of this chapter, you will test your mental skills with an Investor IQ exam.
Why should come before what. Why you want to do something is far more important than what you will do. We humans get excited about new endeavors and then after the new-ness wears off, we move onto something else. Most great achievements in life do not happen overnight. In fact, it’s usually the exact opposite.
Your greatest triumphs probably took time to come together, right? Real estate investing is no different. After the excitement dulls and new-ness of real estate fades, what will be the reason, or reasons, for you to continue pursuing your goal of being a successful real estate investor? When I first got started, I wanted to work from any-where, have control over my time, be boss, call my own shots, earn what I was worth, make a lot of money and become financially free.
That’s not too much to ask, is it? At my job, I had to show up at the office, I couldn’t work from anywhere. I had no control over my time. I didn’t call my own shots. The boss told me what to do. I wasn’t able to earn what I was worth, make a lot of money or become financially free.