Becoming wealthy as a real estate investor requires more than just working hard; it also requires working smart. However, there is no real easy path to working smarter, and not harder. For real estate investment wealth generation, you need to put the work in, but you also need smart planning. There will always be those who claim to be able to generate massive wealth with a few easy steps, and minutes a day! But...that is not the reality for most, and going down the "guru" path usually leads to failure. That being said, there is magic to real estate investing. What do I mean by magic? Well, it is one area that almost every person in this country, if he or she works hard, can find success. And, he or she can make exponential gains. That is the real magic of real estate investing, not following a "guru's" get rich quick scheme. I am proof of how hard work can lead to success in real estate investing. And, I did it while saddled with massive law school student loans. For more information about my personal story, follow this link: Real Estate Investing Success: Work Harder & Smarter
In my opinion there are 4 major avenues that any real estate investor can take to get started: 1) invest in your own primary residence; 2) invest in rental properties; 3) invest in "flips"; and 4) invest in new development. The first avenue is the easiest in theory because it provides you with a roof over your head, while you theoretically create wealth. The aim here is to purchase a property at a discount, and in need of improvements. Next, efficiently spend and preferably use sweat equity to renovate. The result should be a property with sufficient equity to be able to pursue a home equity line of credit (HELOC). As you can see from the blog on my website, I initially invested $17,000 in a down payment. From that, I experienced more than 10X ROI.
The second avenue is rental property investments. Here, you are looking for a property that wll "cash flow". In other words, you have positive income monthly after paying the principal and interest on a loan, taxes, insurance, vacancy, maintenance, and capital expenditures. The last 3 categories are estimates calculated as percentages of the rental amount. How much you cash flow per month depends on a lot of factors. For more information on rental property investing, check out my blog post here: How to Get Started With Rental Properties
The bottom line is that you can be successful in real estate investing. You can generate massive wealth. However, there is a big difference between an attainable goal, and an easy goal. If you think real estate investing will be easy, your path probably will not bring you success. If you are willing to work hard and smart, then there is a path to wealth for you. Go and find.
If you would like more information, or just want to chat about real estate, please feel free to contact me through my website (link below):
- Alex "Mi Real Estate Guy"