Real Estate Investment Wealth

I look at things differently when it comes to creating wealth. Some people think that they are creating wealth when they work three different jobs and bring home three different paychecks. That is what I call living the rat-race life just to make ends meet. That is not creating wealth. Creating wealth is an art that needs to be learned. Although there are a number of people who understand this art and have applied the related principles, which have led them to create an enormous amount of wealth, not everybody has been successful at it. Without the necessary education, the perseverance and the motivation needed, people were forced to stop pursuing their dreams to become wealthy due to lack of direction and the help that was needed to guide them along the highway of success.

Entrepreneurs have used several means to create wealth. There were those who did extremely well by creating wealth through the stock market. Others were very instrumental in using the internet to create wealth Yet others went into sales, manufacturing, the service industries and they stuck it out until they achieved their goals. We, on the other hand, have used Real Estate to create wealth because I do believe that with the proper education, the skill, and perseverance, you too can become wealthy and accomplish your goal.

Benefits

You will get following benefit if you purchase the book

Several Things To Consider

There are several things that you must consider as you embark on this road. In the first place, you will need to determine what your exit strategy will be in real estate investing. What do I mean by exit strategy? It is what you plan to do with the real estate once you purchase it. An example is do you want to buy a property, fix it up and sell it quickly or do you want to buy a property, hold it and wait for the real estate market to appreciate? Do you want to deal with renters? All these are questions that you need to consider before you invest in any piece of real estate.Secondly, you will need to know how to perform the value of properties before investing in them. Although you can use a real estate agent and have them show you property after property while you try to look for a good real estate investment, it would be good to know if the properties under consideration are worth pursuing. You can only accomplish this by knowing the true value of the property.

There are several online sites that are helpful in determining the real value of real estate. DO NOT rely on tax values. They are not reliable and they are not accurate either. Once you find a good real estate agent that you can work with, you can ask them to give you what we call COMPS (Comparative Market Analysis). This report tells you what properties have sold, listed and how many days they stayed on the market before selling.After you have learned how to determine property values yourself and have chosen a real estate agent that you can work with, the next thing that you need is a good mortgage broker that you can work with. On many occasions, your real estate agent would be able to give you at least three mortgage brokers that you can work with. Find out what interest rates and closing costs each one charge. (Check out your local bank or credit union as well). Now you are ready to actually make your first investment. You want to choose the lowest priced house in the best possible neighborhood to put on a contract.

Let’s say the cheapest 3-bedroom house in the best neighborhood in Columbus, OH costs $100,000 and the next cheapest, comparable home is listed for $140,000. If you buy the home that is priced at $100,000, you can raise your price to $130,000 the next day and make a dandy little profit.

There are several ways that you can finance a deal of this nature without taking money out of your own pocket and also avoiding going to the bank for a loan. But if you must take a loan, then I will suggest that you consider a Purchase & Renovate Loan. This type of loan allows you to purchase your home and finance repairs in one transaction. It is available for single-family homes, one-to-four units, planned unit developments, and condominiums.

Some of the benefits for obtaining such a loan are that the loan amount is based on the after repair value of the property. Secondly, costs are spread throughout the term of the loan, resulting in lower monthly payments. It also gives you choices of looking at properties you wouldn’t otherwise consider. Moreover, you can start improvements immediately rafter closing. The good news is that, the interest on this kind of loan may be tax deductible.

Now is the time for you to seriously think about the Exit Strategy that you considered before investing in this real estate. If you bought it with the exit strategy of flipping it when the market appreciates then you just simply wait. If you bought it with the strategy of renovating and then selling, then it is time to begin your renovations. On the other hand, if you bought it with the strategy of renting it, it is time to start looking for tenants.

Having an exit strategy for profiting from the purchase of any piece of real estate must be your first decision because everything that comes after that is dependent upon it.