>>Personally, I have done real estate investing in the past, and have
decided I don't want to do it anymore.
Now that's a good reason! Ha!
>>The main disadvantage I see with real estate is that it is an illiquid
investment.
It CAN be illiquid but it doesn't have to be. Here's an example: If you
wholesale a house, you can do a similtaneous close and sell it at the
same time you buy it. That's how lots of folks make big chunks of
money quickly.
You can also buy and sell mortgage notes and never have to deal with
a property.
You could also be a real estate virtual assistant or a bird dog for an
investor who needs to invest some capital for tax purposes.
>>If you want to get the cash out of it you either have to
put a second mortgage on it (and the current mortgage crisis drives
home the fact that that isn't always such a great idea)
>>or you have to
sell it (which can take months).
Or 7 days if you sell it on eBay like Drew does... or 2 hours if you create
a system like Larry Goins has done.
I was AMAZED when I listened to Larry tell about how he sells houses
in hours. In case you missed that call, we recorded it and it is on the
website where you can listen to it again.
Larry has applied Internet marketing strategies to real estate in very
practical ways and they are working wonderfully for him and his students.
(Drew is now buying backhoes on eBay. Bought 2 this week.)
>>Liquidity is a big issue to me - it may not be such an issue for you.
The thing about investing is that there are different philosophies
concerning
it. You have to decide how conservative or liberal you are and match your
investment to your philosophy.
>>The second issue I have is that real estate isn't one BIG market, but
rather a large collection of little local markets.
That is true unless you learn how to implement Internet strategies like I
mentioned that Larry Goins does.
I have another friend who has done something similar with the vacation
rental property market. What she is doing is working across the board too.
>> I live in a section
of the country where real estate values are almost static.
It also means it is a buyer's market and smart investors are buying like
crazy right now.
Another thing, there are other properties to invest in besides single
family
homes. Commercial property has a completely different set of rules and
values.
John Childers explained all that on his call last Thursday. It was amazing!
He said he is buying property as fast as he can right now because he can
get so many good deals. He's been a millionaire since the early 1970s. (I
knew his cousin when I was in high school and heard about him back then.)
>>You could argue that I should be investing outside of my area.
I wouldn't necessarily suggest that unless you are using the Internet.
It's always best to start in your backyard - literally - and keep the
properties
you want to hold within an hour's drive.
>>The last issue I have is the whole landlording bit.
I would NEVER suggest owning a property to rent and you won't find teachers
at my events that teach that. Been there, done that, got the T shirt.
Owning rental property is what gives real estate investing it's bad name
(besides
the immoral characters teaching classes) and keeps folks from even
considering
learning a new thing.
When you rent out a $30,000 house, you have to fix what breaks and the
renters
usually tear it up.
If you owner finance the same $30,000 house, the owners make the repairs
and since they own it, they will usually take care of it.
Usually, they'll stay 2 years, then leave and give it back to you. You can
then sell
it again. That is a much better scenario.
So if anyone on this list owns residential rental property, try doing that
instead and
see if that doesn't improve your life.
>>Yes, I'd still get the tax write-offs, but the financial gain simply
wasn't worth the headaches.
If you learn how to avoid the headaches, you can get huge tax write-offs.
>>I think EVERYONE should invest in real estate as early in their lives
as possible. The education they'll get from it is GREAT.
I agree. The earlier the better since most folks live in a house.
Thanks for your feedback. I appreciate it!
Bottom line: find what you love and what works best for you, then go for it!
So many books, so little time...
Rhea!
who LOVES real estate, especially old houses
Get your real estate education at the only place you'll also learn how to
invest using the Internet: http://www.RealEstateDays.com
[Non-text portions of this message have been removed]
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http://www.educatingforsuccess.com .
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