Julie Fine custom home building business reach a dry spell following the housing bust in 2008. The dry spell in her company made Julie decide to start buying and selling houses.
Julie started her rental real estate business buying affordable square single-family properties, which she rents in Texas.
Julie lends money from banks to buy her properties. She earns income from buying foreclosed properties that can pay the mortgage –and make her a decent cash flow at the end of the month
Julie has bought three properties and intends to buy more properties for the long haul
Julie’s is on her way to becoming financially independent. She is part of the growing number of investors-fed-up with investing money in Wall Street money vehicles-that yield paltry income and make their retirement in jeopardy.
I first read about Julie’s Real estate investing success in CNN money website. In fact, she is not alone: the article also reported several other ordinary people from all walks of life-building wealth through real estate investing.
The good news is you can start building wealth from investing in real estate.
By investing in real estate, you can easily increase your net worth and become wealthy in no time.
Real estate is a proven way to build wealth. And it will remain a money builder as long as we need shelter.
The Forbes 400 list of richest Americans has names of individuals like Frank Lerner, Sam Zell, Stephen Ross, and Donald Trump- who made their fortune from real estate.
The Forbes list is just a tip of the iceberg because it only lists billionaires.
In my honest opinion, I think most of the top most affluent families in America carry a large part of their assets in real estate
If you look beyond the bad news about the housing market and the economy, … you’ll see that opportunity abound to create wealth by investing in real estate.
In fact, this is the best time you can start investing in real estate because house prices are at record low levels compared to any time in history. But house prices will not remain so forever
You should use this opportunity to create wealth for yourself and secure a prosperous future for your family.
Now you need to appreciate why investing in real estate builds wealth.
Real estate builds wealth because it serves a basic human need: shelter.
You see people will always need shelter and accommodation.
Real estate is stable unlike stocks investing which is unstable. You can easily predict when house prices are going up and when they are heading south.
You can start investing in real estate with as little as $10,000. Even if you don’t have all the money to start, buying houses you can team up with a partner who is willing to put up the money in return for taking a share in profit from your business.
The other benefit of investing in real estate is leverage: This means with a good credit score and proof of income; you can easily lend money from banks to buy rental properties.
You can also start buying residential properties as a side business while you keep your full time job.
The common advice most of my friends ask me when they want to start investing in real estate is-how to start and where to start looking for rental properties
First, you need to set aside between 4 to 6 hours each week studying, and looking at rental properties in your local area.
During your study time, you should drive around your area, to have a feel of what the neighborhood looks like.
You should find out as much information as possible from the local authorities, county assessors, and any other useful source of information-that may impact residential properties in your area
If after you have done your research –you find that properties in your area, don’t’ meet your criteria –then look for other areas
Local real estate investing clubs and forums are useful places to network and know more about the areas you want to invest.
The single most relevant thing you can do to buying rental properties is to-buy in an area that appeals to people who rent properties.
If you’ll heed this advice at the start of your real estate investing career… you’ll save yourself from the financial mistakes most novice investors make.
Where can you find out about the best rentable area? The answer is easy. Look for the top residential rental realtor in your area and ask them.
One mistake most novice investors make is to overanalyze properties without taking action. This is analysis paralysis. Don’t fall into this trap.
You must take action once you have done your research. You should start making offers on properties once you find the ones that meet your criteria
Making the offer and closing deals are the secrets to being a successful investor. You see action trumps inaction
You can earn both active income and passive income from residential properties
You earn passive income when you buy and hold rental properties.
You can also earn active income when you buy and flip.
I prefer to buy and hold rental properties because I can earn both passive incomes from rents. In addition, as long as I own the properties my net worth increases as house prices appreciate.
The key to making money from residential properties is buying right and holding the properties-for passive income while building wealth at the same time.
That’s how the most successful and wealthy individuals have become financially free.
Do you think you can do what the wealthy have done? Yes, you can.
You see by the time you start paying down the debt on your rental properties you’ll begin to enjoy cash streams that will give you the chance to retire comfortably.
You now know no more about residential real estate investing are you ready to start investing.
What are you waiting for? Ready set go