Some people who doubt there is a right time to start investing in real estate worry that there are too many people buying houses to find a deal. Competition is everywhere. If you can’t understand that competition is normal in business, then real estate investing is not for you. Just take a look at the market for companies like Coca-Cola and Pepsi, Nike and Reebok, McDonalds and Burger King, and a million other services and products on the market. So if you see a lot of investors competing against you, know that it’s a rewarding business because you’re not the only one who sees the profit potential. Plus, there are more than enough deals to make everyone rich, in due time. At any given time there are hundreds of properties for sale in their own local niche markets, enough for every investor looking for them.
Some investors know that events like the tragedy of 9/11, the large number of layoffs, and the crash in the stock market will kill the economy and everything they buy will lose value. But again, this doesn’t have to be the time to close shop and quit before you start. To be successful in investing, learn how to make money in the “up” and “down” markets. Have strategies to use in both “up” and “down” markets to survive when the economy is down or thrive when the economy is booming. And if everyone else is forecasting “gloom and doom”, it only kills the competition as it has more market share to profit from, as this is a good thing!
Ask yourself, “When do I want to make money?” And the answer is usually right now!
So get out there and get your investment business up and running, right now! And do not base your actions on what others say because the majority of the population is not rich, only those few who dare to take the right risks and take the necessary steps to succeed.
Stay in ‘the Game’ and stay in ‘the Course’ (persist)
One of the main disappointments of the conventional ‘rental real estate’ approach is that there is simply no money in it NOW, only after a long period of ownership. There is not enough margin between the income obtained from rent versus the expenses of mortgage payments and repairs for the investor to earn money today. You barely get by in the first few years of owning your property. You have to have other income to maintain your lifestyle. You can’t count on rents alone to support you.
You will most likely support your properties with your other income at first if you bought the traditional way. That’s not too attractive. Many investors do not have the stomach to bear the harsh financial strains of the rental business. More so: people just don’t have the desire to stick it out for it to work, in due time. Therefore, if you persist, you will overtake your competition because they will no longer be in business and you “have no competition.” This business is a long-term commitment and more than 80% of real estate investors, who have been in business for so long, become millionaires. What I am telling you is this: stay the course and you will beat most of your competition because you can handle the ups and downs of the market in the Real Estate Game, in due time.
opportunity is everywhere
This ‘NO’ is a common statement I hear from new investors. True, it may work differently in some markets than others, but there are investors making money in every city (big or small, metropolitan or rural), every day of the week. You have to know your market: rentals, trends, local customs, lenders, title companies, etc.
Then, learn the techniques and adapt them to your market. One thing is for sure, everyone needs a roof to live under, whether rented or owned. People need to live somewhere. So study your market carefully, because there are tons of opportunities in every market. You just have to know your market and be able to serve it accordingly. If you don’t believe this, just read the ‘Success Stories’ of all my students who achieved financial independence and made big profits using my field-tested and perfected real estate investing system.
Typically, the main argument of real estate “Nay-Sayers” is to associate real estate with bathrooms, bad tenants, property damage, tenant evictions, etc. – all the tacky things that can happen to an investor getting ready to jump into the real estate game.
For someone who believes the only thing in real estate is getting a loan and buying a dilapidated duplex in a bad part of town, getting into the real estate game could certainly turn into a major nightmare very quickly. However, a person who is open to possibilities and willing to learn various techniques and strategies will quickly discover that this methodology is not the most profitable way to transact real estate.
A true wealth generator
Well, if you cringe at the thought of spending your evenings and weekends unclogging problem toilets, painting damaged walls, and appeasing angry or upset tenants, you’re in good company. I have no interest in dealing with disruptive and time consuming tenant issues or their negative attitudes. When you follow a systematic approach to investing, you won’t have to deal with negative results! There are other creative ways to manage properties that involve no hassles or headaches at all, such programs exist in our “Automated Management System” that eliminates those property nightmares.
There are much more profitable strategies if you are open to ‘non-traditional’ ways of investing in real estate. For example, in our System approach, there are “Rental Credits” that are used to maximize your time, while minimizing your overall risks, while creating positive cash flow instead of living with negative cash flow and problems with tenants. There is a better way!! Your properties will be beautifully managed and maintained. Your tenant-buyers will be happy, you will get a lot of positive cash flow and you will be able to spend your free time locating additional real estate investments, doing the things you love and are passionate about, which is the whole point of becoming a professional real estate investor in the first place!!
If you are really serious about real estate investing and do extensive research on the real estate business, constantly learning and improving your level of knowledge, you will find that your risks are minimal compared to other business models.
If you talk to any knowledgeable real estate investor and compare the cost of starting a real estate investment company to any other type of business, you will see that a real estate business has far less risk. I like to be honest with you that you will need at least a few marketing dollars to launch your real estate business. You should also take a long-term view of this company and at least give it a good 6-12 months to get it up and running. Otherwise, your money (marketing budget) and your time will be wasted.
I know, but most people don’t know that it takes at least some money initially to make money as a real estate investor. I don’t mean to scare anyone, but let’s compare a real estate investment business to a restaurant/takeaway business. I know this type of business very well because relatives of mine own restaurants/carryouts, so even though I never owned a restaurant, my relatives have taught me the inner workings of that business and what it takes to keep it profitable.
First, for a regular restaurant it takes $30K in gross sales just to break even each month. And this does not include the 15 hour days, and six days a week, and the initial investment of $120K down payment with great credit for a bank to even lend you the money to open it. You should also have years of knowledge and experience before investing your life savings to start a restaurant business. Then it usually takes around 1-3 years until the profits really kick in, so this is only if you can survive to stay in business that long. My father-in-law currently owns a takeout business and has over seventeen years of experience and he tells me how fed up he is with the restaurant business. That’s why he’s also starting out as a real estate investor and asked me to invest some of his money in our rehab properties. He sees the enormous rewards and minimal risk involved in real estate compared to his restaurant business or other businesses he has been in. And he is seriously considering selling his business to invest in real estate full time.
When you compare the risks of investing in real estate versus investing in other business avenues and/or ventures, you can come to your own conclusion: real estate investing is the ‘best game’ in town, when it comes to building great wealth. , while achieving your American Dream for financial independence.
Real estate investing has cycles like any other business
The stock market has its cycles. We experienced that after the 9/11 tragedy. Just less than two years earlier, we saw a spike in the stock market with high-tech stocks rising and making stock market investors ‘paper rich’. The stock market has its ‘ups and downs’.
Modern real estate thrives on doing things smarter, wiser, strategically, not harder, slower, with profitable results. At the end of the day, the key to success is to focus on being a ‘great entrepreneur’. I asked an experienced investor (he owned a quarter of Blacksburg, Virginia) what his specialty was in real estate investing and his answer was not that he was good at leasing options, wholesale, short sales, REO, rehabs. , notes, residential, Land Developments or Commercial Real Estate. But he said he was an ‘expert at making money’. We both laughed about it, but I’ll never forget that conversation. He must know the market and the technical factors involved in a deal, but his main duty when he invests is always to make money. So, at the end of the day, his job is to make money on the ‘bull’ and ‘bear’ markets. And if he focuses on being a ‘great entrepreneur’, he will be able to make money with many techniques, strategies and skill sets to be successful in any market.