The Real Estate Opportunity
Most of my adult life I've been drawn toward the real estate market; buying and selling properties helped me expand my personal portfolio, which improved my standard of living. People are always asking me (no matter which type of investment opportunity we are talking about) when is the best time to get involved. Think about it. There is a good chance that the price of the particular stock or piece of property you're interested in might never be cheaper than it is today. I think you'll agree that the premise of any investment is to buy low and sell high. So, when is the best time to get in? I urge you to do your homework; get all the information you can about any venture, and when you're satisfied with your strategy - get involved.
My uncle, JW Dicks, and I wrote a book called How to Buy and Sell Real Estate for Financial Freedom. In it, we've shared our personal experiences with you and explain what has worked for us in our property investments; no matter what you would like to do. Maybe you want to buy commercial properties, rental properties, lease options, flipping or buy-hold-sell opportunities.
Over the years, the buy-hold-sell approach to real estate investment has worked best for most of us. We buy a home, live in it for a number of years and then sell it. Today, this method of real estate investment is not so much about our primary residence but for second or vacation home. This is a growing trend, especially among Baby Boomers.
Another means of property investment we call buy, renovate, hold (or sell). Normally, using this strategy you can buy a property for much less than you normally would because it will probably need to be "fixed-up" and if you are clever, you can use your handyman talents to really take control of your financial future.
You might also consider "flipping" homes or buy a home (or other property) at a low price and then sell it to someone else for a higher price in order to make a quick profit. Be assured, that through the years I have been on both sides of these flip transactions depending on how and why I was trying to make a profit at any particular time. If your intentions are centered on survival, then your plan might be modified to fit your personal situation to take advantage of a quick profit.
Perhaps you feel that your ability to invest is being hindered by a lack of the necessary cash to get involved. You might consider an equity-sharing partner to fulfill your dreams of building wealth through real estate. Listen, not having available cash should not be an embarrassment; we've all been there. You just have to work harder and smarter to get where you're going. Set up a joint venture where perhaps you can use your partner's cash while you offer a unique talent (maybe as a creative salesman or as a handyman).
In our book, my uncle and I highlight 28 specific strategies that can help you make money in different markets. As I mentioned earlier, whether you get a copy of our book or someone else's, you must get an education before you do anything. Maybe your local community college has a course in different investment or perhaps you can study to become a real estate agent. There are a variety of ways to make your dreams of real estate investment become a reality. But, as I mentioned earlier, you have to work hard for it and develop a plan that is attainable. And remember, always do things right. If it smells, looks or sounds bad, stay out of it. You'll sleep better at night and if you feel good about what you're doing chances are you'll be successful. Happy Investing!
Originally published in the Outspoken e-newsletter.