We all think of ways to retire sooner, or ensure our children have college paid for, or have a lifestyle where we enjoy more luxury. But what do we need to do this? We need to find ways to earn more money. Where does that money come from? One way is investing and there are several, realistic investment vehicles that could be used to generate greater wealth. Now, there are pros and cons to any investment strategy. Stocks, bonds, mutual funds, or real estate are all avenues you could explore. This blog is going to, obviously, focus on real estate investing. Beginning with this article, there will be a weekly post covering some topics associated with real estate investing. Let us start with the basics.
Real estate investing can come in a variety of packages and strategies, some more passive than others. You obviously could make it your full-time career, and just as the HGTV celebs have, money can be made via that route. Yet, there are many paths you can take where real estate investing generates returns while you maintain your full-time job. For many, this path may be safer as you have a stable income, not requiring you to be dependent on your real estate returns as your sole source of income. Additionally, you could take all of your returns and recycle them into new investments, possibly exponentially increasing your gains.
Two preconceived notions often stop people from ever exploring investing.
First, ignorance. Many people believe they do not or are unable to acquire the knowledge to become a real estate investor. This is easily resolved. Between the resources online and at your local library, there is enough information to get you started no matter what your depth of knowledge maybe at this moment. Head over to www.biggerpockets.com or pick up a copy of Rich Dad, Poor Dad as a start.
The second preconceived notion that stops many would-be investors is the belief they have to be rich. All-cash sales could make your purchasing process easier and faster, but it by no means is required. Smaller amounts of disposable income will allow you to become an investor. There are numerous financing options that are very creative and stray from your conventional loan option. Hard money, HELOCs, FHA, USDA and VA loan products all are options. And there are more out there too.
One note to keep in mind as we begin this journey. It is rare you will see mega gains on your investments instantaneously. Is it possible that you are making lots of cash after a short time investing, sure it is. But just as with any other investment path, patience is key. You are building long term wealth, and the most successful course of action is one that is nurtured over time.
This brief introduction into real estate investing is simply a way to get you thinking about this path. Growing wealth for now and the future presents all sorts of options for you and your family. And it is a realistic activity you can participate in. Developing a knowledge base, a network, and team will allow you to enter a world you may have never known was possible for you.