Monday, September 24, 2012

How to make money in Real Esate Today

It is possible to get rich in real estate and get out of the rat race today just as it has always been but things are slightly different.  They are not completely different or completely impossible, just slightly different.  But it still can be done with a little hard work, dedication and commitment.  You have heard many stories about how people made it in real estate prior to the recent meltdown but things are still possible in real estate investing.  You can make a great life by investing in appreciating and cash flow producing assets that will give you a lifetime of income and freedom. 

You may have read the book Rich Dad, Poor Dad by Robert Kiyosaki (see review and buy here) that was a the bible for many real estate investors in the 1990s but most of the principals in this book hold true today and will hold true for years to come.  The advantages of being a real estate investor or many as laws are actually set up to help investors get ahead.  Also the advantages of being in business for yourself either as part time or full time are many and you can save thousands if not millions in tax liability if you take advantage of the tax code that covers small business and real estate.  

It is is possible to succeed with little or no money down in real estate but it is more difficult now more than ever.  If you have an interest in real estate it is a good idea to start saving for a down payment and start looking for a property you can live in while renting out other units of the building.  If you are serious about getting started in investing this is the best way to get up and running.  You often can get better financing if you are living in the property and you can usually get the property with much less down payment than if you are looking to buy as a non owner occupant.  This is also one of the best ways to watch over your new purchase d make sure the property is in great condition and the tenants are not doing things to lower the value of the building.  Living in a rental of your own is also a great way to get your feet wet in management.  You will be on site most of the time to be able to handle all disturbances, maintenance issues and or emergencies. 

The most important thing to look for is cash flow and return on capital when you start your search for an income property or an investment property to live in while you start building your real estate portfolio.  I will discuss what to look for in a property and give you the keys to finding money making property and getting out of the rat race in future blogs.  As for now you need to start considering the possibility of making a lot of money through real estate over the next several years.  Make the commitment to education and become dedicated to learning all you can about real estate investing.

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