Use your body. Invest in real estate!
Those of you who know me also know I am a fan of commercial real estate. It is a sophisticated investment tool with a more stable tenant base. However, commercial investments are cut-throat. If you don’t know what you are doing you are likely to get a hair cut the hard way.
"It could cost you everything you own and everything were going to own for a long time"
Residential real estate investments are a great way to get a start in the real estate biz. The investment dollars are usually much smaller. If you make a mistake you are going to pay. However, you should be able to work out of the problem in time. If you make a mistake in a commercial deal it could cost you everything you own and everything were going to own for a long time. Why not get rich instead?
The biggest reason to start with residential properties is the financing. A single family house or a duplex is an easy way for a guy who has almost nothing to get a great start in the real estate investment world. The easiest way to buy residential is buy your own home.Sound boring? Maybe it is time to spend more time on research, like reading my blog, and less time on the get-rich-quick seminars.
For most real estate investors the best way to real estate riches is the slow route. This is get-rich the old fashioned American way, through smart use of your capital and plenty of hard work. Forget spending an hour a week and retiring a rich guy one month later. Almost no one can do it.
"Most of them will still be waiting as you get ready to retire"
The rare big hit happens in real estate once in awhile. It happens in real estate dreams more often. The ‘big hit’ guys tell you what happened after they got lucky, but they don’t tell you how long it took to find the miracle deal. Nor can they attest to the thousands of ‘big hit’ people who are still waiting for the real estate genie to come down from the sky and wave the magic wand of instant wealth. Most of them will still be waiting as you get ready to retire. Be sure to wave 'Hello" as you go by!
4200 West Ohio Place, Denver, Co.
4200 West Ohio Place, Denver, Co.
"Owner occupants get better
financing deals"
financing deals"
If you are not a dreamer real estate investing is probably not for you. Turning an ugly duckling into a rich prince takes vision. It also takes persistence. At some point we leave the dream on the table and roll up our sleeves. We can always come back to the dream later. Let's get started!
Use your body. Invest in real estate.
That is another way of saying, owner occupants get better financing deals. Most banks want 20% to 25% down when financing real estate investments, if you can find a bank willing to lend at all. A home buyer, though, can usually get in with the slightest down-payment, and sometimes nothing down at all!
If you are going to stay in front of the law instead of running from it, you have to do what you say you are going to do. If you represent you are going to live in the property you better do exactly that. Otherwise, you may be talking to an investigator with the Mortgage Fraud Task Force and hiring my law firm to defend you!
I know a lot of people who have invested in single family homes who are very wealthy today. You don't have to make the jump to commercial to become a real estate millionaire! If real estate investments are the path to financial independence then getting started in residential is a good way to go. You can decide where to go after that!
Stay tuned! Learn how to choose your first property. What is the best kind of financing to have and why? What sorts of renovations make sense and what are a waste of money? Tax benefits and problems with real property investments and how to make the jump to commercial real estate. Follow the advice of experienced real estate investors and get your start to real estate to riches!
Properties pulled from RE Colorado search 2/26/2010. The ask price on all of the properties is less than $100K, some a lot less. All properties have at least two baths, are under 2,000 square feet and need something. One has special renovation money available, and special financing. Whether they would make a good investment depends upon the condition, the location, the price, the financing and a host of other factors.
Tim Paynter purchased his first investment property when he was 19 years old. He obtained his real estate license at the same age, and paid for his college education through real estate sales. Since then, he has been involved in residential and commercial real estate sales, residential and commercial sales and leasing, residential and commercial investing, hard money financing, property renovation and other techniques to wealth building through real estate investments. He obtained his J.D. in law in 1991 and frequently advises young real estate investors.
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