Real Estate’s really real, but also risky! The logical way to remove some of this risk is to invest in real estate long term, however there are “daytraders” here too, house flipping is very lucrative. The only problem is that markets change all the time, and just because you put in $30,000 doesn’t mean that you are going to get that money back. There are a ton of television shows that focus on people flipping homes, and many of them end the same way, the flipper being happy just to be done and to wipe their hands of the project. I even remember one show were they guy had five or six multi million dollar homes that he was flipping. Think of all of those budgets and bookkeeping!
You don’t have to be a flipper to make money in the real estate business, a friend of mines family mad the majority of their money buying a few acres in the almost center of a developing town, fifteen years later they sold it for millions to a developer and now it has apartment housing on it. Not a bad passive investment. Next week, dust off your clippers we are going tackle those hedges!
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You mention Risk. You are right, something many real estate Guru’s and proponents don’t mention is the tremendous risk in real estate.
But here is the big secret, you have tremendous control over that risk in real estate. You have control over what you pay by negotiating, control over how you manage the proprerty, control over the value by renovating, control over who you chose as contractors, tenants, managers etcl
By having KNOWLEDGE on how to do these things you can greatly reduce your risk. I choose real estate for me, because of the LOW risk. It’s low for me because I choose only to do low risk transactions.
The knuckleheads on some of those shows had risk because they didn’t know what they are doing. It’s easy to get that knowledge today. There are lot’s of blogs, books, mentors, classes, and seminars about investing. Getting the knowledge is one of the easiest parts in real estate.
PS I found your blog on Blog catalog