There is a lot of BAD stuff written about real estate and a little bit of GOOD stuff … start by finding and reading some of these good books (google “John T Reed” and see which books he recommends and which ones he pans).
The truth is that most people MAKE money through a business, then KEEP money by investing in real estate.
If you can’t (or won’t) start a business (even on the side) then you can at least accelerate your LIFE SAVINGS PLAN by buying and holding income-producing real-estate.
Right now, it’s very simple:
1. If you don’t yet own your own home (but would like to) BUY one now and LOCK in the interest for 30 years.
Why?
Home prices are relatively cheap (if you think they will get cheaper then wait a little longer … if you’re not SURE they will get cheaper, buy now).
Money is cheap – mortgage rates are probably 2% lower than they will be by 2009 or 2010.
You want to keep buying that cheap money for as long as possible …
… but, only IF you are prepared to take the next step, which is to …
2. Assess the increased / excess equity (what your house is worth – what you still owe) in your house yearly and use that excess equity to buy another as soon as you can scrape up a reasonable deposit (20% if you are conservative).
3. Lock in the interest rates for 30 years; rent the property out; keep raising rents; reassess the value of all of your properties yearly.
4. Repeat until Rich!
Now, this will take 10 to 30 years … to accelerate: start that little (or big) side-business and use the excess cash-flow to buy more investment properties rather than Porsches!
Simple … and, you couldn’t be starting at a better time in history.
Hi,
I like the way you write ..Its really different and interesting … keep the momentum going ..I hope tis will really going to help me in future..
brilliant. .
Thanks for your comment FM … just remember, it’s not what you READ but what you DO with that information that really counts.
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Very solid advice, would agree 100%. Buying and holding real estate over the a 10-20 time line is a vey prudent investment. Yes being a landlord has it’s drawbacks bit you can hire a management company to handle the day to day operation. Juts crunch the numbers and make sure they add up.