Real estate investing is not as simple as late night television may lead you to believe and it is very easy to fall into a number of traps. Today’s trap looks at whether you are truly investing or just buying a job. That differentiation will help you clarify your investing strategy.
So we are in the year 2012 the year that the history books will suggest as the center of opportunity for anyone looking to take responsibility for wealth in their future. Never before in an average person’s lifetime- this is the year the market is positioned so perfectly as to be called the perfect storm:
- Rock bottom prices on houses
- Rock bottom interest rates
- A rebounding economy
- Huge demand for rentals (especially for single family homes)
- High rental rates for optimum cash flows
- Great appreciation potential for optimal capital growth
- Growing populations for increased demand
This list can continue forever, but I believe you get the idea.
With such an opportunity to change the course of your financial freedom what are you going to do?
Are you going to invest or just buy yourself a job? Everyone buying real estate calls themselves an investor. As I see it, probably half of these people are simply buying themselves a job. Are you a person who buys properties to fix up and sell for a profit? Not that there is anything wrong with buying real estate fixing and flipping, this is a strategy that many use to create cash to purchase properties for long term investments. When you buy to fix and flip and then use profits to create a chunk of investment money you are indeed an investor.
Many people I see calling themselves real estate investors simply spend full time buying property, fixing, flipping and repeating the process. They then proceed to use this as a source of income which is earned income and not truly an investment. Nothing wrong with making a living this way, however to be an investor you want to have a defined investment plan and use the funds to build up your wealth portfolio.
Investments must be accompanied by a plan, a written down, defined plan to invest in real estate. Investments are typically a vehicle designed to create financial benefit for sustained income and or wealth. To truly accomplish this you do not want to wing it. You want to be purposeful and identify the investment strategy that works best for you.
- Where will you buy?
- What will you buy?
- How much will you spend?
- How much money do you have to put down?
- What will your exit strategy be?
If you wish to be purposeful and begin to gather your thoughts, you can identify your investment plan by clicking the link to get started today! This will walk you through (step-by-step) all of the key factors you need to consider when purchasing real estate investment property!
Looking for an easy way to get all your real estate investing goals written down and clear in your thoughts? Use our FREE Real Estate Investing Planning Worksheet to clarify your goals! Not only that, but (if you like) we will give you a FREE 15 Minute Consultation to go over any of your questions and fill in any gaps.
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