If you listen to professional real estate investors such as HGTVs real estate mogul Scott McGillivray, that’s exactly the basis of a good investment strategy that can pay off regardless of market condition.
And while some claim there’s a secret to positive cash flow, luck and secrets really don’t have anything to do with it. Knowing your numbers and doing the calculations before making a purchase are real factors that can bring you RE investing success.
In a Forbes article by Robert Laura, McGillivray explained what he meant. “…“I have properties that aren’t worth what I paid for them in 2006, however, I’m still making money because I calculated the positive cash flow beforehand, knowing they are still paying down the mortgage today…” This statement falls in line with what other authority sources say about savvy investing.
For example, online powerhouse Investopedia.com reports that a good investor is a prepared investor. And part of the best practices of RE investing include understanding property location, market rental rates, trends and indicators such as changes in consumer spending habits in the areas an investor is seeking to purchase. When you factor in those variables carefully, there is a good chance of achieving positive ROI over time.
Even so, it’s important to get educated before taking the real estate investing leap. And with so many quality programs available and ways to check out which one is right for you, this is an important step that should not be missed.
So if you plan to escape the rat race – office cubicle – daily grind – whatever you choose to call it and begin a real estate investing path to personal wealth, one of the biggest decisions you need to make is to decide on a strategy. Whether it’s wholesaling, buy and hold, commercial real estate or residential investing, each has their pluses and minuses. Review your list carefully, then
make your decision based on your goals, personality, funding method and work mode.
Real estate investing continues to be a way for people of all types and income levels to explore in order to help build their personal wealth. That’s the lure and the hope, but is it a pipe dream?
While not everyone will achieve double digit returns on their investments or even a profit, if you base your calculations on correct information and follow a proven system, you are more likely to make real estate investing a valid way for you to achieve the financial independence you are seeking.
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