5 Reasons People Choose Real Estate Investment As Their Job

When young people are asked this question “What career would you like to choose in the future?” you will get to hear many answers. Doctor, pilot, president, business person, jet fighter pilot, astronaut, scientist, computer genius, surfer, swimmer, athlete, footballer, rugby player and even a hacker sometimes. The one answer that you will fail to hear a child replying is that they want to be a real estate professional.

A majority of the people today will attest that what they answered in that question when they were young is not what they are doing today. The good thing is that as an adult, you can finally make a wise decision based on income, passion, adventure and growth.

Below are 5 reasons people choose Real Estate Investment as their job.

More freedom

The professionals have a lot of freedom since they can be their own bosses if they are not working for another real estate professional. Apart from that, one can design their own work schedule that will fit their day to day timetable. This means that they can work as much or as little as they want. While this is a good thing for many people, it can be quite a challenge for others.

To ensure that you are able to reap big rewards in the end (I mean fat commissions); you need to have a great work ethic. Uncle Ben in Spiderman told his nephew that “With great power, comes great responsibility.” In this case, “responsibility plus a great work ethic equals success.” While the professionals can work under a broker, it does not mean that he/she will be the boss always. Real estate agents can become their own bosses at the snap of the fingers. This provides more freedom to the professional which enables one to streamline their day to day activities.

Higher rewards

According to research, many people look down on a real estate investment profession especially when they get to learn that a professional gets to earn around $40,000 in a year. This makes many people to think that real estate profession as a career is not rewarding. What they don’t know is that real estate professionals earn high rewards in terms of commissions. Every house a real estate professional sells means a fat cheque in the bank without even counting the yearly salary.

The best thing about being a real estate professional is that you can work as a part time profession treating the job as your hobby or work at it fulltime. In order to become a successful real estate broker, it means that you need to have goals, the right plan and an effective hardworking team.

When compared to an office job where you have to report at 9 am and leave at 5 pm while awaiting a monthly fixed salary, being a real estate agent seems more rewarding. While an office job can pay higher yearly especially in the corporate world, you will have to work crazy hours and meet even crazier demands.

Ensures more control of your life

The one thing many people who work in offices fear is losing their job or quitting their job in order to start a business. In an office job, one is assured of a fixed monthly salary that comes with benefits such as health. Bonuses may be provided at the end of the year but it’s not a surety. For real estate professionals, they can start working under another successful professional.

Within 6 months or one year, they can decide to venture out and together with a few others; they can open their own real estate firm. They can get to hire their own employees and grow their firm with ease. Real estate professionals don’t fear losing their jobs as they know they can create one. This means that they have more control in their lives. One can build a business off one successful client.

Less startup times

In most professions, you are required to undergo several certification programs in order to be qualified and be given a job. With real estate, you don’t have to undergo this; you can start now and earn commissions in no time.

Majority of the courses can be completed in no time while at other times; one can receive training from a qualified profession and still be successful.

Unlimited room for growth

As a investment professional, one will not only grow their portfolio but they will get to grow themselves. One can hire many professionals who will enable the business to grow and acquire more assets around the world.

This will not only mean more money and success to you but to your business as well. A majority of successful people in different ventures will tell you that surrounding yourself with smart people is ultimate road to success.

Final Thoughts

A real estate investment job is not only a great way of understanding how investment works but it’s a great way to learn tips and tricks. You can grow to become your own boss and hire smart people to help you achieve your dream. The job offers you unlimited growth and unlimited rewards if done in a smart way.

Think Like a Millionaire: How to Invest in Real Estate

Many people fail to see that skills fade, but assets are forever.

They don’t know their entire financial education in their lives is completely WRONG!

Too many people believe that a good job, good skills, and a positive attitude will make them great wealth. The problem is that it just doesn’t work that way. People who make an hourly wage and an annual salary cannot build wealth. This is because their money doesn’t work for them, and instead they work for their money. This idea keeps them from understanding that the only way to build wealth is to invest in multiple sources of income that you don’t have to work for, but instead build yourself or purchase from someone else.

Another misconception of multiple sources of income and passive income is that people assume government and financial institutions offerings such as the stock market, CD’s, and many other financial instruments are passive income. Most of the time however, unless it is a note or bond that pays you regular interest. It is not actually passive income or a stream of income. As a stream of income or passive income is income that you make every day, every month, and every year continuously as cashflow. Stocks and the like only make you money on the sale and never anything in the meantime. Meaning they don’t ever actually cashflow. For example, it is the same as purchasing a piece of fine art and hoping that it appreciates the longer you hold onto it. Which is risky and locks your money up from better uses.

Real Estate as an Investment

Real Estate is the King when it comes to creating wealth for people. No other offering has the traits and abilities like real estate does. It is constantly appreciating and gaining value. It is always in demand because people need a place to live. And most important of all, it is a real asset that isn’t going anywhere soon. Allowing you to borrow against it as collateral and even to write off all expenses and costs associated off on your taxes. Now let’s not wait a moment longer to get into Real Estate as an Investment.

Real Estate You Can Buy as Investments

There is so many ways to invest in real estate and the major differences comes to how much capital you will need to put down to purchase them. This could be as little as $40,000 -$50,000 to buy a condo outright, to only $10,000+ to purchase a $100,000 single family home, or to as much as $20,000-$30,000 to purchase a multifamily home (2-4 units). All of which are Residential and can be easily financed.

Once you get past 4 units, small office buildings, and industrial properties. You’re going into commercial territory and have a lot more hoops to jump through as well as have to start working with commercial lending which can require sizable amounts of capital before they will lend. In the rear, is my personal favorite of mobile homes and parks. Which are hard to sell, but can cashflow in all sorts of amazing ways from lending on the mobiles themselves to charging them for renting the use of the land. All of which is taxed as land which is the cheapest tax rate you can have on property.

· Condos/Flats – Condos and flats are some of the best to buy for cashflow as they give the best cap rates. The only issue comes on the resale as many can be hard to finance as an investment property, preventing a large portion of the population from being able to purchase them.

· Single-Family Homes – Single-family homes are easy to rent, easy to sell, and easy to finance.

· Duplexes/Triplexes/Quads – Small multifamily properties (2-4 units). These property types combine the financing and easy purchasing benefits of a single-family home with the cashflow benefits and less competition found in larger investments.

· Small Apartments – Small apartment buildings are made up of between 5-50 units, they can make great cashflow, but can be very illiquid on the resale.

· Small Commercial Office Space – Buying small commercial buildings and renting out office space to business professionals.

· Industrial Properties- Manufacturing, warehouses, distribution centers, etc.

· Mobile Homes – Inexpensive way to enter the world of real estate investing and can also experience significant cashflow.

· Mobile Home Parks – The entire park in which mobile homes are situated on can also be bought and sold. Rent the individual lots to mobile home owners, and as well as have corporately owned and leased ones.

Strategies in Finding Investment Properties

Just as there are a million ways to skin a cat, there is a million ways to find properties for investment. Of the many ways to find the properties for investment. The most common ways are to find the owner directly and give them a cash offer, to find properties that are owned by a lender or bank that they want to get rid of at a discount, or purchase a lien on the property so you can foreclose on the property yourself.

  • Lease Options – Buying the property and “renting” it with the legal right to buy it later.
  • For Sale By Owners (FSBO) – Private owners sell their property themselves with a sign or newspaper advertisement, they may want to sell their properties at a discount to avoid paying a realtor
  • REO’s – Foreclosed Property owned by banks can be bought under market if the demand isn’t too high
  • Auction at the Courthouse Steps – During the process of foreclosure, a home is brought to the courthouse steps to be sold to the highest bidder.
  • Buying in Pre-foreclosure – Sellers on the brink of losing their home can be very motivated to sell their home and save their credit and their lives
  • Short Sales – A bank will often take less than the loan amount on a property to save from the hassle and costs of foreclosing and reselling.
  • Tax Liens – When homeowner’s refuse to pay their taxes, the government can foreclose and resell the property.
  • HUD Foreclosures – When a US government ensured loan is foreclosed on, it often becomes the property of the department of Housing and Urban Development.
  • VA Foreclosures – Similar to the HUD foreclosures, the US Department of Veteran’s Affairs sells their homes as well after foreclosing on one of their insured properties

Strategies in Buying, Renting, and Selling Properties:

When you finally have the property in your grasp, there are many techniques you can use to maximize your return. Some properties are great for buy n’ holding. Meaning you buy them for cashflow, but are expecting to also make a sizable return on the resale due to appreciation. Next up is Fixing N’ Flip/Hold, which is finding properties undervalue and fixing them up to either hold onto for cashflow or to sell immediately for instant profit. Then there is Turn-key-Investing, this is where you find the property, turn it into a profitable cashflow and sell it as a source of income to a big fish investor. For Big Commercial, there is NNN leasing that entails having the company renting the property takes care of all the trimmings of the property and pays you for leasing the space. Another Buy N’ Hold strategy that can make decent money is to turn your Buy N’ Hold property into a Vacation Rental and charge 3x as much than a normal lease. Then there is hard money lending, where you finance others in their fix n’ flips, buy n’ holds, or primary residence.

  • Buy-N-Hold – Buy real estate, rent it, and hold it until the market is up and a great buyer comes along
  • Fix-N-Hold- Buy below market value, remodel to force appreciation, and held until the market improves and sell it
  • Fix-N-Flip – Buy well below market value, remodel to market prices, and sell it immediately to get your return.
  • Turn-Key-Investing – fix-and-flipper, but sells remodeled properties to out-of-town individuals seeking a good place to keep their money moving.
  • NNN Lease – Big Businesses rent the building and pay all costs associated with the building such as maintenance, taxes, insurance, and more. We can own these buildings for highly-passive income.
  • Vacation Rentals – Buying vacation property and renting it out off and on season (Snowbirds)
  • Cash Purchase, Sell on Contract - Buy properties and immediately re-sell them to buyers who may not be able to conventionally qualify for a mortgage. Collect a large down payment when using this method.

How to Finance:

Financing is readily available to anyone who has a cash for a down payment. Below is the major ways you can finance your Real Estate Investments.

  • All Cash – Property with no mortgage attached is very stable and a safe return. May not be as great as when using leverage (like a mortgage)
  • Seller Financing - Seller owns a property free-and-clear (no mortgage), and can be negotiated with to find a finance deal
  • Unconventional Lending - There are many lenders who will lend on any deal you have as long as the number make sense, this can be anything from landlord loans, had money, and much more
  • Self-Directed IRA – If you have a 401(k), throw it out, it’s time to put that money in a self-directed IRA and make that money finally work for you than expecting some money manager who is just trying not to lose your money than make you any. You can use your money in your SD-IRA to do all the strategies in buying, selling, and renting.
  • 20%-25% Down Conventional Investment Mortgage – buy a real estate investment through a bank. Come up with 20-25% down payment and have the bank finance the rest
  • 10% HomePath Investment Mortgage- These loan types are only available on Fannie-Mae backed bank REOs, but can allow an investor to purchase the home for just 10% down payment with other benefits.
  • Home Equity Line of Credit (HELOC) – With significant equity in real estate, M&T can borrow a line of credit off M&T Real Estate equity.
  • Small Business Loans – Banks often will finance a line of credit or loan for small businesses- to include a real estate investment company

Conclusion:

If you have the mind for real estate or want to hire someone who does. Then you should forego a large portion of your portfolio to invest in real estate. It easily as one of the highest returns than any other investment in the world, the only caveat, like anything else, is that you need to do it right to be successful.

“Time” Is A Major Real Estate Wealth Growth Tool, So Use ‘IT’ And Watch

In this report I use figures from my area of the world … I know they don’t apply all over the world, but they should encourage you to get the figures for yourself.

After all no report is going to make your money grow … it’s the knowledge you gain and “Your Application Of The Knowledge” that makes your financial wealth Grow.

In another report I gave you a concept I borrowed from Phil Ruthven, a truly wonderful speaker on economics, on how he looks at Home Ownership.

Now I want to look at the Tools we have available to help us Grow!real estate wealth,

So folks, if you want Real Estate Development, you must use all the tools available to you to get some. Of all the tools you have, the single most important one is TIME.real estate wealth,

1. Time is your greatest friend. Time to buy good investment property and let it double in value every 8 to 10 years or better.real estate wealth,

2. Federal Government Real Estate Investment Tax Deductions are another tool the Government uses to tell you in Words, Dollars and Cents that they want you to get wealthy so you can look after yourself to your final days. real estate wealth,

3. Correct Financial tools are also vital to your wealth development. See my report of Finance. I will go into some further detail in this section on the use of Evergreen Lines of Credit and how they work.

4. Good Real Estate Management is the next tool. Well-managed and well-maintained real estate investments, that houses good quality tenants is also essential. Trying to do this work yourself, is a mistake. See my report on Property Management. real estate wealth,

In Australia, it has been instilled in our consciousness, that we must all own our own home. And there is nothing wrong with the concept. It’s just that we should have been told to rent it out; Don’t live in it.

By buying a house TO LIVE IN, while we are young, we are wasting the wealth creating tools of Time, Double Income, (if married) Property Income and Tax Deductions. No wonder so many people have to play catch up later in life. real estate wealth,

So the first clue to Real Estate Wealth Development is don’t buy a residential property for you and you partner to live in. You buy a house as an investment and you rent elsewhere.

Growth Tool No. 1 – Time

Time is your greatest friend. Real Estate is a long-term investment and by being loyal to it, the real estate will reward you handsomely all through your life. real estate wealth,

You can prove this to yourself, as I did, by getting the figures of average house sale prices, from the Australian Bureau of Statistics for Brisbane, the largest City in Australia.

To save you the trouble I got the figures and I painstakingly went through them in order to validate the old wives tale that, ” real estate doubles every seven years.”

Well, it does better than that, you’ll be pleased to know.

I was able to get the figures from 1973/74 to 1994/95. I think I started there because that was when I arrived in Brisbane on transfer from Melbourne. real estate wealth,

That is a twenty-two years period, during which we had several credit squeezes, a few recessions and a few good times as well.

In 1973/74 an average house price for the whole of Brisbane was $23,234.00. That average includes the best and worst house and suburb.

Seven years later, in 1980/81, it was $43,470.00 an increase of 87%.

However by the next year, the eight-year, it had risen to $56,757.00 giving an increase of 144% from 1973/74. So you see that it more than doubles by the eight year. real estate wealth,

Going on a further seven years from 80/81 to 87/88, the $43,470.00 went up to $83,679.00; a further 92%.

Interestingly, going on one more year to the eight year, it had again increased to $113,917.00 giving an increase of 162% from 1980/81.

A further seven years from 87/88 to 94/95, the price of the average house in Brisbane went up to $163,325.00; a further 95% increase.
real estate wealth,

Unfortunately the Bureau amalgamated the Shires of Logan and Caboolture into this statistical base and I could not extract the figure for the eight year.

However on the evidence of the previous 22 years I believe it is safe to assume
the increase would be at least 5% making it an increase of 100%. real estate wealth,

So these figures prove that over a period of 22 years the asset has increased by seven times its original value and all you would have to do is buy it at the beginning.

I hope this gives you some idea of why TIME is so important to growth. And remember that I am talking about average prices, I am not talking about hot inner suburbs that will obviously do much better.

If you REALLY understand these figures; you should ask yourself why you are willing to miss out on buying good real estate by stopping negotiating for the sake a few hundred or a few thousand dollars. I’ve seen this done many times because of stubborn-ness. Crazy! real estate wealth,

For goodness sake it’s the Real Estate Asset that is in short supply; not money. If you have found real estate that fits your criteria; BUY IT!

The Real Estate Development Coach

Copyright Colm Dillon, October 2003

All Rights Reserved.