In today’s society, everything is about making a quick buck.In most business ventures, it’s the convenience and security of being your own boss, along with the promise of “easy money” that push people into action.However, if you are considering starting a real estate investing career, you should know that it is definitely not a “get rich quick scheme.”It takes hard work, finesse and determination.But don’t dismay, that doesn’t mean that there is not easy money to be made, because there most definitely is.Just don’t go into it thinking that your million dollar deal is going to somehow come knocking on your door!
Perhaps the easiest way to make money in real estate is through appreciation.I know that sounds boring, but if you have time to ride out the market ups and downs, and make smart real estate purchases in the process, you are bound to come out on top.This method is not quick, but it is definitely easy.
The real estate cliché is definitely true-you make money in real estate when you buy.Knowing when and where to buy a property should be of the utmost importance to you as a real estate investor.Lower income properties are not always good buys unless you get them at a mere fraction…and I do mean fraction of what they are worth.In fact, you can often times come out further ahead by securing a decent deal in an excellent area because the appreciation of the property will be far greater than a quick sale on a rehab.
Lastly, making money through rentals is easy money.The key to making money with rental properties is that you have to keep them long enough to see debts fall off and rental rates rise.If you have owned a property long enough, you will owe a fraction of what is being paid in rent and that makes for very easy money!
People usually think of buying and selling when they think of buying real estate for profit but one of the most lucrative markets to invest in is rental properties. They provide long term residual income rather than a short term windfall. In general there is far less risk involved in buying rental properties.
Management
One of the key elements you will have to decide on if you think about purchasing rental real estate is how you will manage your property. If you just have one multi-unit building you may wish to completely handle the management of the property yourself. If your building is a larger one, and you do not have a great deal of handy-man skills and do not want to be calling contractors to handle every leak, clog, or patch up you can offer one of the units as a free rent for service to a skilled handy man. Keep in mind complicated repairs will still probably require hiring a contractor, but you can have some assurance that immediate needs can be met quickly and still handle the rest of the management yourself.
If you are considering owning more than one property hiring a property manager begins to make more sense and also frees up your time for other ventures.
Cash Realities
The cash flow of a rental property is more than just the value of its available units vs. its cost. Make sure there is enough income from the property to cover the expenses of utilities, taxes, legal fees you will encounter during the transaction and while you own the building as well as insurance.
Leverage
Owning rental properties accumulates equity that can give you valuable leverage when looking for loans for other real estate investments. That makes your rental property even more valuable than the actual income it represents. Owning rental property is one of the most secure methods of starting a portfolio and gives you a solid ‘hands on’ asset that very few other forms of investment can provide.
Who can afford to buy real estate in this economic crisis? Who is this Dean Grasiozi?Buying real estate to make money is something that only the wealthy can do.Where does he suggest you get the money to buy real estate if your entire income is needed to support your family?
What is his theory on living arrangements if the property needs so much work, you cannot live in it while you are fixing it up?I have a family that needs a roof over their heads.Dean Grasiozo seems to think that the answer to finding a financial comfort zone amid the inflated economy we deal with in America is to buy real estate. The problem is that most real estate is sold at an inflated price that most people cannot afford on a salary most people earn.
I don’t want a partner, either.I have heard of people buying real estate shares with other partners who turn out to be crooks.All that ends up happening is that innocent people are left with a debt, no real estate property and no better off financially. Even buying a fixer-upper without a down payment can often end up costing more than you think it would, so you don’t end up making any money because you can’t sell the place for enough to cover your fix-up costs.You don’t even break even if you have to hire out to get the work done.
So what real estate scheme is this Dean Grasiozi peddling?
