Real estate. I am an real estate investor. I have rental properties. Something on the side, something my wife and I do on the weekends. I am a firm believe in real estate as an asset class for many reasons:
- Everyone needs housing
- Real estate gives you leverage because banks will loan you money
- Real estate values tend to increase with inflation
- Interest rates are at a multi-decade low
- If done correctly it is passive income
- It is tax advantages because of depreciation
- It is an imperfect market (unlike stocks), so you can find good deals
- It is a people business; real estate people are willing to share
- From our experience, it is a solid way to get 8% annually
Real estate can teach you. From real estate you can learn so many things – negotiations, sales, marketing, accounting, and finance. Many of the wealthiest people invested in real estate. No surprise. It works. Time helps your money grow.
Bigger Pockets.com. This is a website, forum where thousands of investors share their experiences and wisdom. There are also 80+ podcasts where successful investors share their stories – good, bad, and ugly. You can learn an enormous amount on these podcasts. This is the type of learning that will help you retire 10 years earlier.
There are numerous real estate books, but don’t overlook this website, forum, and podcasts. It is a free resource and excellent. Some good podcasts to get you started.
Podcast #2: Karen Rittenhouse
- Real estate investing can start out small. You have to try it.
- Always be “above board” and honest with people
- Continually learn. Karen went from 5 houses to 100+
- Use outsourcing; her favorite direct mail – postcardmania
Podcast #10: Jay Scott
- You don’t have to be an extrovert to succeed at real estate
- To create passive income, you have to set up systems; cannot do it all yourself
- If you create a good business model, investors will find you and give you money
- The best way to find a contractor is to go to Home Depot at 730 in the morning – those guys are dedicated, planning the day’s work ahead of time, are busy
- “Always have 2, 3, or 4 exit strategies as a backup on your house flips”
- “Those who do best in this industry are those who work ON their business, not IN their business”
Podcast #13: Leon Yang
- Leon decided not to get an MBA because he saw so many good real estate deal. He move to Las Vegas because it had the best investment profile
- Believes now is the best time to leverage up on real estate: interest rates low, lots of potential inflation (“Bernanke is just throwing money out of helicopters”), banks are lending again, many houses are below replacement costs
- “Inflation is a borrower’s friend.”
- Do what you enjoy . . .even if you don’t succeed, at least you had a good time
For all the consultants out there. Remember, always look for ways to scale your work, your business, your income. Most of us are time = money. Time is precious, and we all need way to diversify our income. Ways to have your money work for you. Even if it is not real estate, find ways to create more passive income. Best of luck.