An article in todays Inman News says that investors will be up to 3 times more active in the buyers market than owner occupant buyers. I agree and have little doubt that investors will lead the way for a housing recovery.
Imagine buying a stock or mutual fund for 0-20% down, finance the balance, have that stock or mutual fund generate enough dividends(rent) that it will pay the payments on the amount financed, getting a bundle of tax benefits, and after 20-30 years the loan is all paid off buy the dividends generated!
Let me put it another way. If you could buy $100,000 mutual fund for $20,000, have the dividend the fund makes pay for the rest so its no money out of your pocket, and in 20 years years you own $100,000 mutual fund for $20,000 of your own money, wouldn't you do it? Of course most people would! And all that assumes that over 20 years it never goes up in value!
I bought my first investment property in Kennesaw Ga 30 years ago and I've made plenty of mistakes between then and now. I took the Robert Allen "Nothing Down" course the very 1st time it was offered in Atlanta and I even got a nice little mention in his follow up book "Creating Wealth". So I understand highly leveraged investing. It works but it definitely is not for everybody. Honestly, for most folks I would advise against it. Just think about the fable of the tortoise and the hare. These days I am much more a fan of a tortoise style of investing.
Happiness is Positive Cash Flow! (read a previous blog I wrote about this)
Buy a rental house, put some money down or even pay all cash, get it up and running and move on to another one only when you are ready. Over your lifetime if you do nothing but accumulate 2-4 rental houses you will retire very comfortably.
Not ready to invest? Maybe you don't own your own home yet? Credit issues? Stay tuned. I'll have a follow up article just for you!
Remember .. Don't wait to buy real estate, Buy real estate and then wait!
Are you interested in home ownership or investing around Kennesaw, Marietta, Powder Springs, Acworth, Smyrna, Roswell or any surrounding areas? Call me!