The Secret to Succeeding in Real Estate Investing
They say there’s no secret to success in real estate investing. They’re wrong. Sort of.
You see, there isn’t just one secret but many secrets or more accurately many repeatable processes all intertwined with hard work, proper planning, and a dash of long term goals that lead to success.
The problem is so many people are looking for the magic bullet or the shortcut to success that that will make them wealthy and successful.
Surprise, it doesn’t exist.
If that’s what you’re looking for, you’re setting yourself up for failure rather than success and if you’re hoping that’s what you’ll find here, you will be disappointed.
You see, the majority of people who build wealth, retirement nest eggs, and successful rental portfolios haven’t discovered new and better wheels.
They didn’t take shortcuts to get where they are and they aren’t rocket scientists with elaborate computer models and formulas to beat the market.
They’re just normal people doing the same smart easily repeatable things over and over and I’m going to share one of them right here (plus give you the opportunity to find out about the other six).
So going forward, rather than calling these secrets, let’s just call them strategies!
Repeatable Real Estate Investing Strategy #1
Ultimately, the reason so many people become landlords is by growing their wealth through the following areas.
- Cash flow from rental income
- Equity through paying the mortgage down and
- Appreciation of the value of the property.
While the first one, cash flow, should start almost immediately both equity and appreciation occur through the repeatable strategy of time.
I know, time, how exciting and obviously not much of a secret as everyone’s hard of time!
Yet time is one of the most important strategies in real estate; the longer you hold onto a good property the more value it gains and the more it rewards you.
First, over 25 or 30 years worth of time mortgages get paid off (if money isn’t drawn out via refinancing that is) giving you a nice little equity nest egg.
The big bonus once you get to this point in time is almost all of the cash flow now goes directly to you, instead of going to cover the mortgage. Imagine that $1,000 monthly payment (or an even larger payment quite often) you used to make to the lender, now coming directly to you.
It brings a smile to my face thinking about it.
Second, the property will also appreciate over time, especially over extended periods of 10, 20 and even 30 years, simply due to inflationary pressures.
Inflation is the increase of prices due to the value of money decreasing. The cost of labor, the cost of lumber, and other supplies to build a new property rise and this all contributes to the rise of home values over time.
It’s part of what’s driven the value of cars up from an average of $3,450 in 1970 to over $33,000 currently and a loaf of bread up from $.25 in 1970 to $2, $3 or even $4 a loaf now depending where you are located.
So repeatable strategy #1 is simply time. If you set yourself up with a good property plan on giving yourself a long window of time, real estate investing can make you wealthy without doing much else.
Unfortunately, this strategy of letting time increase your wealth does go against the get rich quick scheme so many people are after. But as I said, there isn’t a magic bullet to real estate wealth; it’s many repeatable, yet simple, strategies and pieces.
One Piece of the Puzzle
So there’s one piece of the puzzle, but I haven’t provided the entire picture, yet. Would you like to find out some of the other secrets?
If you’ve answered yes, you’re in luck.
What I’ve done is put all 7 Secrets/Strategies in an easy to read guide that you can read through and then start implementing portions of nearly immediately.
Some might require some extra work (which again surprises folks who just want shortcuts), but that work will come back multiple times over in rewards. So who’s ready to start some extra work?
To grab your free copy, come visit me at the following special link for American Apartment Owners Association readers,
http://www.TheEducatedLandlord.com/AOAA7
And one more thing, I’d love to hear your feedback once you’ve read it, so either leave a comment here, or go back to the link above and give me some feedback.
Happy real estate investing and happy land lording!
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