Smart Work and Hard Work Combine for Real Estate Investing Success

By
Real Estate Agent with KW Peterson & Associates

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"

 

 

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Rainmaker
418,623
Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Thank you for the information. Your links are very informative. I am ready to move beyond  just owning my own home, so I appreciate the advice.

Mar 15, 2018 12:08 PM #1
Rainmaker
1,523,810
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Alexander Jerome, Welcome to Active Rain. This is a great place to meet and interact with awesome professionals. Thanks for the very informative links.

Mar 15, 2018 06:19 PM #2
Rainer
292,547
Jason Boone
Duke Warner Realty - Bend, OR
Principal Broker, CRIS, RENE, SRS, PSA

Welcome to ActiveRain, I wish you the best of success.  Might I also suggest that you check your usage of "principle" versus "principal".  It's "principal and interest."  ;-)  Cheers

Mar 16, 2018 07:37 AM #3
Rainmaker
3,443,054
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello and Welcome to the Rain where we all help each other and learn from each other.

 

Mar 18, 2018 08:24 AM #4
Rainmaker
526,070
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Welcome to Activerain! The more you blog the more success you will achieve.

 

Mar 18, 2018 04:35 PM #5
Ambassador
4,002,393
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Alexander Jerome welcome to ActiveRain and congratulations on successfully posting your first blog on this site.

Mar 21, 2018 05:12 PM #6
Rainmaker
4,432,850
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Welcome to active rain. Good luck in achieving your goals on active rain 

Mar 22, 2018 03:33 AM #7
Rainmaker
1,912,281
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

The Four Annual RETURNS of Rental Real estate make it the most sought after investment opportunity !

Mar 27, 2018 11:30 AM #8
Rainmaker
87,720
Jeff Perlis Prime Properties
Prime Properties - Lake Arrowhead, CA
Experience Your Own Transformation!

Congratulations on your first blog post in AR! Looking forward to reading more.

Apr 17, 2018 10:36 PM #9
Rainmaker
818,163
Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

JUST FINISHED READING THE BOOK FLIP Yesterday that I brought last year. Why didn't I read this book sooner?  And you said "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." Congratulations. I need to check out your Real Estate Investing Blog.  

Jun 01, 2018 11:40 AM #10
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Rainer
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Alexander Jerome

Real estate agent serving southeast Michigan
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