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Savers are Losers (Part 2)

Yesterday my post gave examples of how saving in a bank people lose money. Now I will give you examples of how you can make more. May favorite investing strategy is real estate investing. I will give you some example of investing with out getting dirty or leaving the house. Well you might want to leave the house.

How do you make money in real estate? By Investing in Real Estate and I will explain that in the next paragraph. Currently real estate price are so far down that they can NOT be build for what you can purchase it for. Which mean your insurance policy will cover a high valuation on the house more than what you paid.

OK now I know what you going to say “I don’t want to deal with tenant” or “I don’t know anything about real estate.” Here is the good part for those with money some Real Estate Investor are looking for you. You are the best type of passive investor they want. Here are a couple of ways.

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First you can loan money to an investor. They can use the money several ways. One way is to buy it fix it and resell it to make a profit. The other way to buy it, fix it and rent it or lease option it. The first way you are in and out typically in 6 months time. A lease option is a few years. Then rent it as long as you want. You can be a equity partner or you just get a return. It’s all about negotiating terms.  It is all up to you on what you are looking for. What is the typical interest rate? 5-15%APR.

Second you can do it your self, you just need a good team. The best way I can think for rentals and so you do not have to deal with tenant is to use a property manager. They charge anywhere for 5% for many units to 10% for one house. Just all depends on what you need in a return. You can do it yourself and save the 5-10%

Now these are only a few example, there are so many more ways you can invest in real estate it starts with your needs for a return.

Where can you find real estate investor? Here on the web for starters. Then you have meetup groups, real estate association meeting, free training cash flow night, and /or education seminars. All usually have some real estate investor at them.

What to look out for. The desperate investor who needs money NOW. Talk with different investor don’t tie yourself down to just one investor. See what they have done, projects wise. If they say no or give excuses move on. Ask for others they have worked with, again excuses = move on.

Now with that said there are risks in real estate is you want a safe bet buy Treasury Bill. But remember that your investment in losing money every year. While real estate is a multi dimension investment. From tax benefit to cash flow to amortization to tax deferred exchanges. Let me ask you this how much lower are interest rate (mortgages) going to go down? No more they they are right now. Right? So now is the best time to get into Real Estate.

There is and old say “it is better to buy real estate and wait then wait to buy real estate.”

 

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3 comments

  1. jrdan pas cher

    I love the way you wrote this article. This is wonderful. I do hope you intend to write more of these types of articles. Thank you for this interesting content!

  2. Michael

    Im 22, living at home sadly, i wana prreape, store food etc tried explain’n 2 my fam all dis crap with food shortage, hyper inflation, 9/11 etc, and wat it means 4 my country, and they wont listen 2 me, they call me names when i try and talk about wat really happend with 9/11,(os its all intertwined) they slag me off gang up on me, tell me i need a mental hospital, i fuckin hate them, i want ta stock up and prreape and there stopin me even tho its my money, i fuking hate my family, dillusional

    1. David Piotrowski

      a little less language would be better and what is with the miss spelling?

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