A financial security plan without real estate investments is lacking. There’s nothing better than owning your own home. Not only is there a sense of pride in owning real estate but if you take care of it, there are few returns that can match it over the long term. For most people, their primary residence will fall under this category. If you don’t own a home, now is a good time to lock in low interest rate mortgages. Find a way to buy something even if it’s a one bedroom condo. Real estate is one of the most consistent performers over time and will always be in demand. There is still some downside risk over the next few years but if you’re planning to hold your real estate holdings for awhile, you should be able to ride it out.
If you still maintain a full-time job, the best way to get started in this investment segment is to buy multi-family units in well-established or up-and-coming locations. Buy a few multi-family properties that generate enough rental income to pay the properties’ mortgages and maintenance expenses and hold them for awhile. Have a good property management company deal with upkeep, screening tenants, collecting rent and evictions; you just want to get a check every month. Don’t get me wrong, there are many ways to make money in this area but my experience is that other methods require too much time while working a full-time job. Having experienced a successful flip myself, I realized I never would have had the time to oversee the project had I not been unemployed and only going to school. It consumed as much time as a full time job and required a great deal of supervision.
Don’t expect to get rich in real estate by buying one of the get rich quick programs you see on TV. Most no money down ideas sound too good to be true because they are. I’ve also found most books to be less helpful than real life experience. The best way to educate yourself is to join a local real estate investment club. Join subgroups, learn as much as possible before you start and be sure to partner up when needed. Learn what works in real life and buy a few good properties. The important thing is to not rush in. You need to be patient and take time to gain knowledge from other experts so you can learn what works and also from their mistakes. You don’t need 1000 units, just a few to have some security, but as they say, the sky’s the limit. How do you become wealthy? Real estate’s a great start.