When it comes to building your personal wealth investing in Real Estate could be part of your investment cycle as well as 401K’s and other investment options. Due to the fact that we are Real Estate Company we understand Real Estate part of investing better and for the other portions you still need to consult a qualified and seasoned financial advisor.
The news always tells you about the few investors who are making it in Real Estate, one of the better known investors are Donald Trump and Robert Kiyosaki, but you never hear about the masses that are not making it and bankrupt themselves and never come back in to investing in Real Estate.
There are some that invest in Real Estate wisely and those are the once who have a comfortable live while their harness their fruits of their labor.
When you start investing in real estate, you might not have clear vision of your personal and company’s goals. The only thing you might only think off is the money you are making in investing in Real Estate and your personal financial freedom. You need to keep in mind that achieving these goals will not come without a price and to minimize some of those possible downfalls you need to have a plan a goal a road map or whatever you would like to call it.
What you are really doing; is creating a company with a business plan!
Investing in real estate requires a lot of time and patience; you might need to deal with tenants.
Just like a business, you also have to deal with operating and fixed expenses, such as heating bills and renovation costs.
The nice part of investing in Real Estate is when you have your Advisory team in place and if you want to go out of town for a few days, you can just go. You don’t have to ask for vacation time!
Not very many talk about how much money they are making in Investing in Real Estate and it appears that this is a very well-kept secret and this might be the thing to do.
Some of the benefits in investing in Real Estate can be:
- Cash flow
- Appreciation
- Leverage
- Amortization
- Tax advantages
Some of the downfalls are:
- unexpected expenses
- some Tax disadvantages
- extended time needed to find lucrative deals
The key to investing in Real Estate is your Team (my best example is Microsoft, it was not build by one person it was built by a team)
Who should be on your Advisory Team?
- Real Estate Attorney to look over your contracts one more time
- Real Estate Broker, who knows about Investing
- Title or Escrow Co that understands land contracts, 1031 exchanges, double closings.
- Insurance Agent
- Contractors
- Mortgage Broker who is comfortable with Options, 1031′s and other financing options
- CPA (Certified Public Accountant) who knows about investing in Real Estate
- Business Partner
- Mentor
What does it take to investing Real Estate?
For starters it will take time, lots of time; you need to sit down with your Advisory team and develop a company vision and goal, be very specific about what kind of things you want for you, your family and company.
Whatever it will be to get you going and keep you motivated in downtime to move you forward and closer to your Dream that are the things you need to put down on paper.
Establish a Game Time Plan and be certain that you have a positive Team that surrounds you; any negative influence will derail you and your goals.
Be prepared to fight of the negative thinkers (especially family members)!
You need to be consistent in your follow-ups, planning and research. At all times keep in mind that this endeavor is a Business and not a hobby and you need to treat it as such. Be prepared that you will make mistakes and sometimes loose some but as long as you keep your goals in mind and work with your personal advisory team you will achieve your company and personal goals.