5 quick things you need to know about investing in real estate
By Michael Sarracini
- Real estate is the most ‘able’ investment
I’ve looked at almost every investment out there. From gold bars to artwork; from restaurants to tech business; from websites to the stock market. And every time I arrive at the same conclusion: there is no better investment on the planet than real estate! Why? It’s simple. Real estate is the most ‘able’ investment. Compared to every investment I’ve ever evaluated for profitability and return, Real Estate is the only one that is everything I need. It is: Rentable, Scaleable, Liveable, Improvable, Deductable, and Leveragable
- Real estate is still local
National headlines don’t tell the local story. When the national average home values are decreasing, there are great local investment markets that are increasing. When national values are increasing there are markets that are decreasing. An any given time there is a market on the upswing, at the top, on the downswing and at the bottom. An investor can make money in any market at any time, they just need to use the right tool for the job.
- A tool for every job
Just like a contractor has a different tool in his or her toolbox for different jobs, a real estate investor has a different tool for every investing situation. It could be that the market is going up or going down, the market could be at the top or at the bottom, a seller might want a quick closing or a long closing, a tenant could want a lease extension or the opportunity to be an owner. A well-rounded investor will combine the right tools to make money in every market, in every situation. Over the years, a few of my favorite tools have been: flipping to yourselfTM , buy & rent, flipping, rent to own, and seller financing.
- Today’s real estate investor has options
What is a real estate investor? Todays investor has many faces from all walks of life. When generating wealth, this diverse investor type not only utilizes different investing ‘tools’, but also applies those tools to different investment vehicles. The 19 year old college student with no money will pursue a different investment vehicle than the 61 year old couple with $900,000 in cash and $500,000 in RRSP’s. Both these investors can generate a great amount of wealth using the ‘most able’ investment; they just need to use the right vehicle for them. The vehicles that bring our members the greatest success are the foundation of our coaching program, they are: Rehab properties, Underperforming properties, turnkey properties, mortgage investing and partnering with land developers.
- Real Estate wealth is in transition
Never before has there been a demographic group of the population that has gained the most amount of wealth in the shortest amount of time as the baby boomers. If you were born between 1946 and 1964, you are a baby boomer, and you have seen one of the greatest increases of wealth in history. As our population’s baby boomers retire, I believe we will see one of the largest redistributions of wealth since the industrial revolution. This redistribution, or ‘re shuffling’ of the country’s (and the worlds) wealth will create more millionaires then ever before in history. The catch: only those prepared and educated will recognize the opportunity all around us and be ready to take action.