The past several years there has been an infatuation with getting rich by “flipping” houses. We saw many television reality shows showing how to fix up a home and sell it to turn a profit. Now that the market has changed in many states, many novice “flippers” got themselves in hot water because they took out mortgages that they really couldn’t afford because in a sense they gambled on being able to sell the property quickly. Some think that now is a bad time to invest in real estate because of decreasing value in property. I totally disagree. People are always going to sell and purchase homes. We’ve been through this kind of market before. Now is actually the best time, especially this next spring, to invest in real estate if you can afford to do so.
My suggestion for someone who would like to become a real estate investor is to educate yourself by learning as much as you can from other investors and building a Power Team. By having the right people with experience and knowledge at your fingertips makes investing easier and more than likely, less risk for you. I have been investing in real estate (just for investment-not personal residence) for almost eight years. Yes, I made mistakes and it was scary the first time I did it because I didn’t have a Power Team. I believe that investing in real estate is less riskier than investing in stocks as long as you do your due diligence.
The other mistake that novice investors do is they try to do everything themselves to save money. If you do something wrong because you don’t know how to do it, it usually ends up costing you more money in the end. I’m all for saving a buck, but it’s just as important to give up that false sense of pride and ask for help (that’s where I made some of my mistakes).
I am always trying to increase my knowledge, gain expertise from others, and share my experiences and expertise with others. I am planning on sharing information about investing as often as I can and I invite others to share also some of their “do’s” and “don’ts” so everyone can learn. My future topics about investing that I will cover will be an Investor List of “Do’s and Don’ts” and How To Build A Power Team.
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