The
Worst Real Estate
Investment Strategy Ever!
By:
Dave Schneider
It’s
true, You can make a lot of money by investing in real estate.
Yet, many investors are not. And when you look at their real
estate investment strategy, it’s no surprise.
The
problem is that they have been brainwashed by the so called real
estate investment gurus. You know the ones that I am talking
about. The ones that tell you that for a few of your hard earned
dollars they will teach you all their ultimate short-cut secrets
to successfully making millions.
They
will tell you that you don’t need a job, money or credit. All
you need to do is pay them and they will show you the exact way
to invest in real estate. Do what they say, follow their real
estate investment strategy and your life will changed forever.
Well
I have some bad news for you. In most cases, it’s the worst
real estate investment strategy you could ever follow.
Don’t
get me wrong, Its’ OK to go to seminars, buy books and audio
products if you are using this information to learn certain
techniques, financing options, tax laws and other ways to
invest. In fact, you should do this, because it will make you
more creative and you will become a smarter real estate
investor, however it’s not the most important thing that you
should do.
>>>
The Most Important Step When Investing In Real Estate
Before
you start to invest in real estate, you should sit down and
create a very specific plan of what you want the outcome of your
real estate investment plan to be!
I
know that this is not very exciting, however, if you don’t
know why your investing and the overall outcome that you want,
then how do you know if you making a good or bad decision?
>>>
Two Important Questions
The
only reason to invest in real estate is to make money. There are
two important questions you need to ask yourself.
1.)
When do you
want the money and how much?
2.)
What are you willing to pay to get that result?
The
answer to these questions will help you determine your real
estate investment strategy.
Let
me give you several examples.
>>>
Buy and Sell Strategy
If
you want the maximum amount of money in the short run, you
should be buying real estate with the intent of a quick sale and
profit. This may be buying fixer-uppers or looking for below
market properties that you can sell for a profit quickly (know
as flipping).
To
do this, the price you will have to pay is your time to find,
analyze, fix, finance and sell the properties. Once you sell any
of your properties and realize your profit, you must go out and
repeat the process again and again to continue to make a profit.
One
problem with this strategy is that when you stop buying and
selling your profits stop. So it’s important to make sure you
take some of your profits and invest in something that will
produce the income you will need and want later on in your life.
>>>
Buy and Hold Strategy
This
strategy is to buy properties, rent them out and have the
tenants pay for the properties. Once the properties are paid
for, you will continue to have rental income for the rest of
your life.
The
price you pay in this strategy is not only the time to find,
finance and analyze, it’s the problems that may occur when
ever you have tenants. So you will need some type of a system to
manage or you can hire a management company to do this.
Personally,
I like the Buy and Hold strategy because you are building up
assets and income that will come to you for the rest of your
life. To deal with the management part there are many systems
that can be used such as the Complete Management System found at
:
http://landlordtools.com/complete-landlord-forms-manual.htm
Whether
your strategy is to Buy and Sell, Buy and Hold or maybe a mix of
the two, the key is to plan for what you want your ultimate
outcome to be.
If
your outcome is to have an income of $100,000 per year without
any work, you may choose to buy and hold enough rental real
estate that will provide that.
In
summary, the worst
real estate investment strategy ever is when you don’t take
the time up front to to decide exactly why your are investing in
real estate and what do you want when you are all done
Dave Schneider has
been investing in real estate for over 25 years and is devoting
to helping landlords make more money!. For free audio seminars,
tools and information on real estate investing and being a
landlord, visit this site now: http://landlordtools.com
PERMISSION
TO REPUBLISH:
This
article may be republished in it's entirety free of charge,
electronically or in print, provided it appears with the
included copyright and author's resource box with live
website link.
Click Here To Go To Other Articles |
