How to Build a Small Fortune in Real Estate
Hello Hampton Roads,
There's an old joke that starts by saying, "How to build a small fortune in real estate? Start with a large fortune..." It's funny but there's some truth to it in that many people get started in real estate investing, but inevitably lose money by not understanding value and costs--they either overestimate value and pay too much upfront, or they underestimate costs and go over budget, or both. However, bought correctly real estate can be a good foundation to build and secure wealth.
According to a recent MarketWatch article, the median net worth for homeowners increased 15% ($231,400.00) while that of renters decreased 5% ($5,200.00) based on a Federal Reserve Study of Consumer Finances that is done every 3 years with 2016 showing the latest survey results. That's a difference of 44.5x between the net worth of an owner vs a renter. Owning your own home can give you a huge advantage not just financially, but also by providing the core need of shelter and stable environment to raise a family.
Many people want to jump into to real estate investing right away without understanding that they have to have capacity for it first. The infomercial benefits say that you can buy a house with no money and no credit and though it can be done, it's not easy and you will pay more than you have to. Using hard money will cost you upfront points, double digit interest rates, short payoff periods (six months to a year), usually monthly payments, and a personal guarantee.
The one thing that the informercials don't tell you is that it is far easier to purchase as a home buyer than an investor and there are far more benefits and advantages for home buyers than investors.
Benefits Home Buyers Have Over Investors
Thanks for Reading,
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Serving your Hampton Roads and Virginia Beach Real Estate needs. Liz Schuyler on Google+
There's an old joke that starts by saying, "How to build a small fortune in real estate? Start with a large fortune..." It's funny but there's some truth to it in that many people get started in real estate investing, but inevitably lose money by not understanding value and costs--they either overestimate value and pay too much upfront, or they underestimate costs and go over budget, or both. However, bought correctly real estate can be a good foundation to build and secure wealth.
According to a recent MarketWatch article, the median net worth for homeowners increased 15% ($231,400.00) while that of renters decreased 5% ($5,200.00) based on a Federal Reserve Study of Consumer Finances that is done every 3 years with 2016 showing the latest survey results. That's a difference of 44.5x between the net worth of an owner vs a renter. Owning your own home can give you a huge advantage not just financially, but also by providing the core need of shelter and stable environment to raise a family.
Many people want to jump into to real estate investing right away without understanding that they have to have capacity for it first. The infomercial benefits say that you can buy a house with no money and no credit and though it can be done, it's not easy and you will pay more than you have to. Using hard money will cost you upfront points, double digit interest rates, short payoff periods (six months to a year), usually monthly payments, and a personal guarantee.
The one thing that the informercials don't tell you is that it is far easier to purchase as a home buyer than an investor and there are far more benefits and advantages for home buyers than investors.
Benefits Home Buyers Have Over Investors
- Better loan products and better interest rates
- Access to low down payment or 100% financing options
- Access to down payment grants
- First look and opportunity to bid on many REO and Government owned properties (where some of the best bargains can be found!) before investors.
The right way to make real estate work for you is not through speculation or seeing it as a way to quick riches, but as a way to build a prudently-acquired foundation and used a stepping stone to grow wealth. Before you start investing, start with yourself. If you don't own a home yet, buy one! It is the fastest, easiest way to establish your foundation and get into real estate investing.
If you are ready to get started, feel freel to schedule a call with me. I've helped many of my clients buy their first home and then get started in real estate investing. It's a great way to build a small fortune (or large fortune!) in real estate!
_________________________
Serving your Hampton Roads and Virginia Beach Real Estate needs. Liz Schuyler on Google+
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