I buy real estate.
I actually buy quite a bit of real estate. Should you?
I’m not telling you to rent for the rest of your life; owning your home has its advantages. However, before you start investing in real estate, sanity check yourself. Below are four statements—if you find yourself agreeing with any of them, alarm bells should be going off in your head.
1.) You’ve Listened to a Guru in the Last Three Months
Real estate gurus are full of it. They are paid to sell. The more they can get you excited about making an investment using their “system,” the more money they make. How do they get you amped up? By making every aspect of investing sound easy and lucrative. In other words, by convincing you that you live in an imaginary world where any novice can make millions overnight.
It’s never that easy. Investing in real estate is a job. Expect years of hard work and learning before you start making much headway.
How do you know if you should tread lightly? Well, ask yourself the following: Do you feel excited about investing in real estate and want to get started as soon as possible? Are you putting together a plan for when you’ll retire? Do you have visions of yachts and Ferraris in your near future?
If you answered yes to these questions, stop. Don’t rush into things—take time to learn the business, and temper your expectations.
2.) You Don’t Have Much Money
Don’t buy a property with little or no money down. Sure, you could “win” and make some money. You could also win on the slot machines at the casino.
Let’s take an example: You buy a $100,000 house with no money down and it could yield $100 per month in cash flow.
There aren’t many ways this situation …read more