by Dan Jensen
Relocation Services Director - Equity Northwest Properties Group
Certain words will often produce specific responses in each of us. "Good", "Bad", "Tall", "Short"... We each have our own understanding of what those words are describing, and there are some pretty dramatic differences in each description.
It's the same with the word "Investor". What do you think of when you read the question, "Have You Considered Becoming a Real Estate Investor"?
* Having a million dollars cash sitting in a strong box at home and looking for great real estate deals
* Having ZERO dollars, but still being able to make stunning RE deals with "no money down"
* Gradually buying one rental house after another over a period of years until exceptionally wealthy
* Buying a great home at a great price, living in it, and watching the value grow into a retirement fund
The fact is, all 4 of these can easily qualify as "Real Estate Investments", and a dozen more descriptions in addition to these.
Investing in real estate is much more about your objectives in purchasing a property, and not so much about which path you decide to take in order to reach your objectives. Any of the four paths listed above can move you steadily toward the investment objective of building wealth and/or income. (two very different results, by the way!!!)
Most homeowners in the USA bought their home with no real thought of that purchase being a part of their wealth/income investment strategy. You want a great home for you and your family, and "yes", you're counting on your home to increase in value over the years that you own it, but it isn't really about investing in that house at all.
Then careers grow more rewarding, and the idea of a second home, a "vacation" home might begin to percolate in your thinking, and sure enough, you find a great beach house within a sensible drive from the family home, and you buy that it. Once again, not really thinking real estate investing, just expanding the enjoyment you're experiencing through your dwelling arrangements.
However, the moment you look toward that little starter home two blocks over that you drive by on your way to work...
You investigate that cute little 2 bedroom beach house just down the sand a couple of houses from your vacation home...
with the idea that you can buy it for a great price and either resell it for more soon, or rent it on-going for a nice additional stream of income,
you've clearly crossed over! to the "Investment" side of the house!
We've heard it a thousand times before... "More wealth has been created and/or maintained through Real Estate Investment that by any other method"! It's true, and we know it's true, but the financial numbers are significant, and we don't have all THAT MUCH extra to work with, so we dismiss the idea as a possibility for us, and never find out more.
There are some very powerful and AFFORDABLE ways to move safely and productively into real estate investing.and we'll be covering a few of those over the coming weeks. Check back for more.
Also, if you are intrigued a bit and would like to compress the information timeframe, give us a call. We would love to do some strategizing with you about ways to invest that you might find useful.
Thanks for checking in with us. We love to help!