Investing 101 Lesson 2
Lesson 1 covered Money Strategies
REAL ESTATE INVESTING
Wealth
Why would anyone want to invest in the first place?
The obvious answer is to accumulate wealth.
But, why would anyone want to be wealthy? Isn’t money “the root of all evil?”
Absolutely not! In fact the proper quote from 1 Timothy, Chapter 6, Verse 10 is: “For the love of money is the root of all evil …” — greed.
Money and wealth in and of themselves are only tools, tools that can be used to accomplish great things. Wealth provides our families and loved ones a comfortable standard of living. Wealth allows us to live a full and active life when we retire. Wealth educates our children. Wealth builds hospitals. Wealth feeds the hungry. Wealth funds research to find cures for diseases. Wealth builds churches to teach the word of God. Wealth…etc.
So, while the accumulation of wealth for greedy purposes may be an evil act, the aspiration to acquire wealth for all the good we can do is anything but.
Get Rich Quick
Real estate investing is not a get rich quick scheme. While there are occasions where profits can be made in a short time, for the most part the real estate investor gets wealthy by the steady accumulation of property through disciplined investing, skillful management, and re-investing profits. The investors that spend all their time looking for that “deal of a lifetime” usually miss many opportunities to grow their net worth and seldom become wealthy.
Best Real Estate Investment
What is the best real estate investment? There is not one.
There are so many different ways to invest in real estate that the question really has to be answered at the personal level. What is the best real estate investment for me?
To determine what’s best for you, you have to consider your own personal likes and dislikes, your interests, and the amount of money you have available to invest at the time.
For example: If you are handy with tools and enjoy fixing things, and if you have time to do it, you may like buying properties in poor repair, fixing them up, and reselling for a profit.
If you enjoy meeting people and getting to know them on a personal level, yet are stern enough to enforce rules, you may consider a small apartment building.
If you are more business-oriented and a “nuts & bolts” kind of person, an office building may better suit your personality.
If you are a “shop-a-holic,” a retail center may be just the thing.
You can see the list is endless. The important thing to consider is your comfort level.
For first-time investors often a 2, 3, or 4 unit residential building makes a lot of sense. These properties are considered “residential” for financing purposes and are purchased with 20% or less down and at attractive interest rates. There are wealthy investors throughout the country with extensive holdings whose first investment was a duplex.
Whatever type of property you choose, your success is assured if you have the discipline to invest faithfully and follow the principles outlined later. Make a commitment to put aside a portion of each paycheck for investing and soon you will have the funds to purchase your first or next property. Re-invest your profits and your net worth will soar. Always remember, however, as you become wealthy to do some good with your money.
