Becoming a Real Estate Investor

Becoming a Real Estate Investor

Becoming a real estate investor can be one of the best decisions that you will ever make to ensure your financial freedom. You don't have to invest a lot of money to be an investor, but you do have to be smart in how you go about it.

If you have heard that real estate is no longer a good investment, do not believe it! Think about it this way. Can you go to a bank and ask them to finance an investment in the stock market? Imagine yourself, with good credit, going into your financial institution and telling them that you want to purchase stock and that you have 20% down, but you would like them to finance the rest. If you don't already know what they will say, I will tell you. The bank will politely say that they don't finance investment in the stock market because it is too much of a risk. That is if they even bother to explain it at all.

Ask the bank the same question about investment in real estate and they will most likely thrust an application in front of you and begin to try and convince you that their bank will be your best choice to obtain your financing goal to purchase real estate. Why do you think that is? It is because the most financially intelligent minds that run these financial institutions understand that no matter what the economy or current market conditions, real estate is always a good investment.

Think about how simple real estate is to keep track of too. There are only 5 components to think about: foundation, structure, hvac ventilation, electrical and plumbing. Compare that simple formula to all of the intricasies of the stock market that need to be kept track of for several hours each day!

Keep in mind that It is important to understand that cash flow should be your number one goal when purchasing an investment property. The amount of your down payment will determine your cash flow amount in most cases. In addition, different geographical areas will typically require more down than others to achieve this purpose. Always remember that appreciation should always be considered a bonus only. Try not to buy emotionally and do the math.

Statistics show that 90% of millionaires made their fortune by investing in real estate. If you are thinking of taking that first step or need some help getting started, I recommend that you contact a real estate professional who understands the investment process and who will help guide you to your financial success!

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate firm in Arroyo Grande. Contact information is 805.710.2415 or Nancy@SignatureProperties1.com.