Benefits to investing

What are the benifits? I mean, I know there's potential to make money off of it, but what are the downsides vs. the upsides that people have seen?

There are books written on thi...

There are books written on this subject, but the short answer is if you can you mitigate the potential risks (and added workload) then you can make a great return on your investment. Investment properties can grow in value rapidly when they are managed properly and are purchased for a good value. So if you feel that you can do those two things and handle the work involved, then you should be able to make some money being a real estate investor. -

To really give a good answer t...

To really give a good answer to your question, if you could give details regarding your investment goals - what return you are looking for - what time duration - how much are you willing to invest - how much leverage (debt) are you willing to take on - how liquid do your funds need to be...  The more specific details you can provide - a clear answer with suggestions of how to acheive those goals using real estate - can be formulated and shared with the online gorup.

Value, Value, Value...Good Val...

Value, Value, Value...Good Value I hear the cliche over and over "You make your money in Real-Estate on the buy side."  That statement rings true through the good times and the bad times.  However, there is a difference in buying properties for a good value instead of a cheap price.  Getting a seller to knock money off of his "Asking Price" is not necessarily getting "Good Value".  Merriam-Webster defines Value as : "a fair return or equivalent in goods, services, or money for something exchanged."  So to achieve a "Good Value" one must get better than a fair return.  One way to do this is to look at the fact that properties often have extraneous and invisible costs.  Closing costs, broker fees, inspection costs, time costs, hassle costs, etc, etc that can often add up to 7-10% of the price(double that on a buy sell).  Getting good value can often include finding ways to limit your invisible cost exposure.  Paying 14-20% to round trip a property can blow up a value proposition.  Send letters in the mail, direct to the owners, on streets with properties that you like.  Get an agent as a partner and use his commission as part of the purchase price.  Network to find properties off the market.  Be disciplined in your buying locations that fit your "leasing needs".  All of these things lower your exposure and help to achieve "Good Value."

Well stated Justin!!...

Well stated Justin!!

my downside is that my townhou...

my downside is that my townhouse area took a tumble and i can't sell. I just had to replace the carpet and furnace, it's not always worth it, it actually costs me money to have people live there

Passive income

It's extremely important not to get caught up in thinking that you can spend your entire paycheck, or all the money in your bank account. It's psychological. You have to put aside 10 to 15% of your income toward developing passive investments. Like rental property. After 20 Years of putting aside 10% of your income into passive investments like rental property, or even index funds, Will allow you to retire comfortably.

Granted I found rental property is not entirely passive, and sometimes is very active, but if you can do it, it's very rewarding. Once you have a smooth efficient system down, and have people you can trust and pay to do some of the work, it can become mostly passive.

The hardest thing is learning to live below your means, learning to live on only 80% to 90% of your income. So that you can put aside the rest toward investments that grow over time.

If you say I only make 30 grand a year, how can I get into real estate investing? Start going to local real estate Association meetings. Ask questions, meet other investors, ask how they did it. Read books and learn, and you will find a way. You will even learn how to do real estate investing with other peoples money, if you don't have sufficient savings. Otherwise still save 10% of your income, and look for cheaper properties, foreclosures and short sales. Or even try mobile homes, you don't need a lot of money to do those.

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