Real Estate to Build Wealth
It's no secret that Real Estate is a key element to achieving personal wealth. The concept that Real Estate can increase your wealth, is rooted in the fact that as a property appreciates (rises in value), the amount of equity (the increase in your stake of ownership) grows, which ultimately leads to an increase in your net worth. Simply put, if the home that you buy goes up in value, you will have access to more money :-)
Now this concept works well when you are trying to decide between renting or buying your primary residence (your personal home). In many cases you'll find that if you are able to buy, it will prove to be a good decision to help you meet long term wealth objectives. But what about the short term?
Real Estate Investing
As we move into discussing the concept of Real Estate Investing, we need to think about what goals we are working to achieve. Many newbie Real Estate Investors that I've chatted with, hope to gain similar things from Real Estate Investing. Here's a quick list to summarize:
- More money to pay bills and to enjoy life
- A potential second career and/or side hustle
- Greater knowledge of the residential rehab process
- Gain a sense of accomplishment that comes from completing a major project
- To diversify their investment portfolio
The good news is that through Real Estate Investing, you can achieve all of these goals, and more! However, the reality is that like with every goal, not everyone will achieve this.
To improve your chances of success in Real Estate Investing, you'll need to focus on gaining quality education from those who have an understanding of what it takes to profit from a Real Estate Investing Project. I've found that there are some great resources to learn from such as books, in-person/online courses, mentors, Real Estate Investor Associations (REIAs), meetup groups, and more!
Many investors use more than one resource to learn how to invest in Real Estate. It really just comes down to how you learn and what level of financial resources you have to invest in your education. Don't be fooled though, you can learn just as much from a $20 book as you can from some $25,000 seminar. It seriously all just depends on what it takes for YOU to learn.
Who Am I to Fix and Flip Real Estate?
Have you ever asked yourself "Who Am I to Fix and Flip Real Estate?"
We've all had those self doubt moments when we say to ourselves things like:
Sure THEY can Fix and Flip Real Estate, they were probably born into money, have a high paying job, owned property previously, invested in Apple Stock back in the 80's, have a spouse that can support them if they fail... THEY are Great!
Meeee on the other hand, I'm broke, jobless, unskilled, uneducated, clumsy, unlucky, can't stick to a diet, not good with people ... Who Am I to invest in Real Estate?!?!?!?! Who Am I to be Great?!?!?!?!
Well, I'm here to tell you that chances are that "THEY" don't have it nearly as good as you think they do and "YOU" are Awesome and Deserving of Success!
You see, when you really dissect Real Estate Investing, you'll learn that your chance of Success is very high, as long as you are able to Team Up with the right players in this game.
How Do I Fix and Flip Real Estate?
Ok, so now on to the reaaaaal question of the day...
"How Do You Fix and Flip Real Estate"
Simply put, I've found the best way to Fix and Flip Real Estate is to take a Project Manager approach. What I mean by that is I've found it useful to see your "House Flip" as a short-term project. The goal is create a beautiful house that will enhance the neighborhood that you build it in, provide an opportunity for others to make money and ultimately to achieve a profit for yourself.
Here's insight into the method that I've found success in:
- Locate knowledge resources: Whether it's books, courses, mentors or meetups, you'll need some point of reference that you can refer to, to get a solid understanding of how to "Fix and Flip" a house.
- Locate a Lender: Whether you decide to use a hard money lender or a family friend, if money is an issue for you you'll need to find someone who can lend if you want to be able to purchase your investment property.
- Locate a Property: The most important part of your deal will be locating a property that meets your criteria. If you're unable to locate a good property, you'll need to leverage the help of a Real Estate Agent and/or Wholesaler to help you find one.
- Locate a General Contractor: Unless you have the time and knowledge to complete a renovation, you'll need to hire someone who can. It's a good idea to locate a professional and knowledgeable General Contractor, because selecting the wrong one could be a costly mistake.
After you have these key players, you'll find that you can leverage your knowledge of the Real Estate Investing process, to have your "Team" do the work, while you oversee and make sure that everything flows as needed. This approach will allow you to maintain your lifestyle/dayjob, which will truly allow Real Estate Investing to be your "side hustle".
Now there are a lot more specific tips that I've found helpful by using this method. These have been very well received by the thousands of students that we have taught Real Estate Investing online. If this sounds like your investment style, I invite you to join our Free Mini Course.
I hope you've found some value in this Blog Post. Looking forward to your Success in Real Estate!