Real Estate - the Best Investment in the World and the Worst Investment in the World
When considering whether or not to invest in a real estate investment, it’s really important to do your homework. My best advice is to invest in your financial education before you invest in real estate. After 12 years of being fully committed to becoming a real estate entrepreneur I would estimate that I have spent close to $150,000 in those 12 years on investing into books, courses, masterminds, coaching, online products and many other sources of real estate products for education. I am glad I did, without a doubt. Financial Education gives you the tools you need to make the financial decisions you face before you make these decisions. Many costly decisions and mistakes can be made without investing into financial education first.
Before making your decision to invest in real estate, it is important that you understand the best and the worst parts about real estate. From that, you can determine which becoming a real estate investor is really for you! You have the choice to be a passive real estate investor instead of taking the active role (see my other blogs and videos on that topic).
Here are several reasons why Real Estate is the best investment in the world:
1. Real Estate is all about investing with debt and can maximize the use of Other Peoples Money (OPM). It is very easily leveraged. In other words it is easy to borrow money to invest in real estate.
2. Real Estate can generate cash flow income for many years. It puts money in your pocket every single month.
3. When you invest in real estate, you pay very little in taxes due to the benefits of owning real estate.
4. Many buying real estate opportunities are created when the markets crash; it can also be a very recession resistant asset.
5. Tenants pay all the bills and pay you as the owner to increase your equity.
Here are some reasons why Real Estate is the worst investment in the world:
1. Real estate is illiquid. It can be easily sold quickly. It could take a long time to recoup the losses you could experience in real estate if it is not carefully managed due to the fact that you cannot sell real estate in a very short time.
2. Real estate has to be treated like a business and taken very seriously. It needs business skills and is management intensive. If you don’t possess business skills then real estate can be a bad investment choice for you.
3. Real estate is not for "do-it-yourselfers”. Real estate is a team sport run by professionals working together for you. You have to be able to realize that you can do everything well when it comes to real estate. You have to be able to find, choose and manage your team members in order to have success in your real estate business. If you can’t manage people, you can’t manage real estate.
4. Real estate is all about maintenance and repairs. You either have to be your own handy-man or have a property management company in place to take care of these needs. It’s a 24-7 on call responsibility that may or may not be what you want to pursue.
5. Real estate requires you to be a people manager. Whether it’s your team members of tenants, if you want to be invested in real estate you have to be willing to manage people. This comes easily for some and not so easily for others.
Before you make the choice to invest in real estate, it is important to take an inventory of who you are, what you enjoy, what you really don’t like to do and then make a decision on whether investing in real estate is a good match for you. If you can overcome the worst parts about owning real estate, it can be one of the most rewarding ways to create financial freedom and make money while you sleep.
Kind Regards,
John Heeney
Glenroe Lending
“We build LEGACY to create TRANQUILITY”
john@glenroelending.ca
519 808 7370
