SHOW ME THE MONEY! :: Did Jerry McGuire have the right idea?
We all know our national economy is in turmoil right now. We all know that real estate has slowed in more markets than not. We all know that this, too, shall pass. But while we know these things … are we really looking forward? Are we counting on ourselves to rise to the occasion? From what I read and hear … that might be a stretch.
We are fearful of our investments, fearful of job losses, fearful of financial ruin that will compromise our ability to take care of our families. And that fear is always about the same thing. Money. That evil green paper that we all require in order to survive in this world.
So … what do we do about it? Sit around, listen to the newscasters and financial analysts tell us that we are destined for certain ruin? Talk amongst our friends and family about how worried we are? Lose sleep worrying? I sure hope not.
You see, I prefer to look for inspiration to get past all this unsettling news. All this doom and gloom. In some small way that lets me feel like I’m not alone and that there are options out there.
Options? Someone say options? Hmmm … just what might those be?
Well, I must admit, I take a look at Forbes Magazine online from time to time. The articles are comprehensive and, generally, offer a look at more than one side of a story. The story that caught my eye this morning was the list of The Forbes 400. The wealthiest 400 people in America. I noticed I was not among that list! What a shock!
One thing that caught my attention in this list is that most of these notables have invested heavily in real estate. They have placed their money, and their futures, on the product that we sell. And they have done very well with it – in good times and bad.
Now your immediate response is … they started with tons of money, so why not do well! If that’s your reaction, then I urge you to read some of the stories of these wealthy individuals. Not all of them started with a silver spoon in their mouths.
Jeffrey Green is one of the interesting characters in this effort. Kind of a rebel among rebels. His story is quite amazing. You should check him out. One thing I found enlightening in the story was this:
Greene began putting his savings to work in business school. He put down $7,400 to buy a three-family home, and rented out rooms so he could live for free. By the time he graduated in 1979 Greene owned 18 properties and was generating more than enough income to cover his $4,500 annual tuition. He sold out a few years later for what Greene says was ten times his cost, pocketing a $1 million profit.
A far cry from his life today. The key to this success? Mr. Green did not expect to make an instant fortune. He rode the waves of success and failure, and took his lumps in the process. But in the end … he has triumphed.
The realization that investing in real estate is a long term plan is the point I’m making here. The days of “fix and flip” have come and gone. The rapid inflation of housing values is balancing out into a more believable pace. We are in a self-correcting market. And, that in itself, is a true green light to begin investing in real estate. But always keep in mind that real estate investing is a long term venture. And the tax advantages can certainly make it all worthwhile. (**If you are considering real estate investing, please consult with an accountant/attorney that is familiar with all the tax codes regarding this. Do not attempt this endeavor without being fully informed.)
And that, my friends, is how I spend my Saturday morning trying to wake up …
Written and posted by Carol Smith, ReMax Preferred Associates, Toledo, OH.
For a personal consultation on the ups and downs of investing in real estate, please call me at 419-297-7454. I will do my absolute best to make your investment transactions as hassle-free as possible.