by Jeanette Joy Fisher
Real estate has always
been, and will continue to be, one of the surest ways to get rich in America.
Since the earliest days of this country, more people have gotten wealthy through
owning real estate than any other way. In fact, the largest investment and
biggest asset that the average U.S. citizen possesses is their home. There are
lots of reasons to become an investment property owner, but there are things
you should know before you buy your first piece of property, as well.
First, owning investment
property can help you stay ahead of inflation. Most banks pay considerably less
than 4% interest nowadays, but real estate generally does much better than
that. In fact, it's keyed to inflation, so it will normally stay even or
outpace other sections of the economy and bring you a higher return.
Second, there's no reason
to take risks that will seriously jeopardize your financial future when you're
buying property. Real estate investing doesn't require a lot of cash. There are
ways to buy houses, even as an investor, without having to put any money down.
You'll generally need enough cash to pay for repairs if you purchase a fixer,
but that’s not always the case, either. Many investors have even been able to
finance repair costs.
Third, you don't need
great credit. Of course, you'll get better mortgage terms if you have sterling
credit, but the fact is, you can buy investment properties and begin building
your real estate portfolio with less than perfect credit, and you can then use
your increasing wealth to bring up your credit score.
Fourth, no matter what
anyone tells you, there's money to be made in any real estate market, whether
it's going up or down. When the market's hot, you'll have more competition for
the good deals, but you'll find more buyers eager to snap up your houses after
they've been repaired. In down markets, you'll find more sellers eager to work
with you to buy their homes, so you'll be able to get into properties with less
money, which will compensate for few buyers on the other end of the
transaction. Remember, people need places to live, regardless of whether the
housing market is up or down. If you have to, you can rent a house for awhile
until a down market begins to heat up again.
Fifth, don't shy away from
investing just because you don't personally have the time or expertise to do
the repairs yourself. You can either build a team of professionals who'll be
happy to work with you on a regular basis or you can start your investment
career by buying homes that only need some serious cleaning and cosmetic work
to make them ready for flipping.
Sixth, do your homework.
Avoid buying houses in dangerous parts of your city UNLESS you see that other
investors have already begun moving into the area and have started the process
of neighborhood revitalization. That's why knowing your area is vital to your
success. One of the surest ways to make money is to find a part of town that
has been down but is being revitalized. Properties will be relatively
inexpensive until it becomes common knowledge that the area will soon be a
desirable place to live again.
You CAN get rich in real
estate. People have been doing it for centuries. It just takes knowledge,
conviction, and determination, mixed with common sense.
New free ebook: Real Estate Investing Is Alive and Well: Smart Investors
Make Money in Any Market
Four steps to real estate wealth: Find, Finance, Fix, and Profit: Flipping Houses
Copyright © 2006 Jeanette J. Fisher
Lake Elsinore Real Estate