The Monopoly Way to Real Estate Investing Success
Anyone who says investing in real estate is a sure thing is mistaken. Although you definitely have more control over your investment than you do with stocks, people (including me) can and do lose money on real estate. However, this is accomplished by buying bad properties, not by buying at a bad time. There is no such thing as a bad time to buy real estate.
The time to buy real estate should always be now. Even though I say the time should be now, I mean that only if you find a good deal on a property.
I learned about real estate early because I come from a family of real estate investors. Whenever there are big family events, we always play Monopoly quite competitively. It's not just a game to us; we do it to prove how good we are at investing in real estate.
The secret to winning in Monopoly is just like the secret to winning in life with real estate; although you cannot time the market it is about timing.
You want to buy as much real estate as you can, as early on in the game (or in your life) as possible . . . which means, the best TIME to buy real estate is ALWAYS now.
Here's the caveat though - when you play Monopoly, what do you do? You open up the box, and read the starting line which states "The Objective of the Game is to Become the Wealthiest Player Through Buying, Renting and Selling Property". Then, you probably pick your playing piece, roll the dice and get going. If this is how you play, you've skipped some critical steps in the process. You may succeed, but your chances of failure are higher than your chances of success.
Just like you wouldn't play Monopoly without knowing the rules, you should not start investing in real estate in real life without knowing the 'rules'. Do you know what your objectives are with real estate investing? Once you know your objectives, then you can start doing research to see which properties meet them.
The perfect property is one that matches your objectives and has a stable enough income to support itself through good and bad times. This is the type of property you need to buy and hold. The rent you make from it should be enough to get you started with other investments.
A player who travels around the board in Monopoly not buying any property, desperately hoping for the chance to purchase Boardwalk may never land on Boardwalk. That player will end up losing to the other players that settled for buying a lesser property at the beginning of the game. Sitting on the sidelines waiting for the perfect property or the perfect market doesn't get you in the game.
Although Monopoly and the real-world real estate market can seem totally random, they are not. The market has little to do with whether or not you lose money. It's possible to lose money in a good market and make money in a bad market. Most of this is decided by how much people decide to research before purchase.
Essentially, there are two parts to being successful at buying real estate: 1. realizing that now is always the perfect time to buy, and 2. finding a property that will pay for itself through good times and bad.
I haven't even mentioned the fact that current market conditions are great for real estate investors to find deals in. Interest rates are low, prices have come down, there is a ton of inventory on the market AND homes are very slow to sell. It's really the perfect time to buy but I am not really trying to convince you of that. I am just trying to convince you that, even if the property you buy today goes down in value tomorrow, you will still be successful as long as you buy one that brings in enough rent to cover it's costs. If you can find deals like this, NOW is ALWAYS the best time to buy. - 23210
The time to buy real estate should always be now. Even though I say the time should be now, I mean that only if you find a good deal on a property.
I learned about real estate early because I come from a family of real estate investors. Whenever there are big family events, we always play Monopoly quite competitively. It's not just a game to us; we do it to prove how good we are at investing in real estate.
The secret to winning in Monopoly is just like the secret to winning in life with real estate; although you cannot time the market it is about timing.
You want to buy as much real estate as you can, as early on in the game (or in your life) as possible . . . which means, the best TIME to buy real estate is ALWAYS now.
Here's the caveat though - when you play Monopoly, what do you do? You open up the box, and read the starting line which states "The Objective of the Game is to Become the Wealthiest Player Through Buying, Renting and Selling Property". Then, you probably pick your playing piece, roll the dice and get going. If this is how you play, you've skipped some critical steps in the process. You may succeed, but your chances of failure are higher than your chances of success.
Just like you wouldn't play Monopoly without knowing the rules, you should not start investing in real estate in real life without knowing the 'rules'. Do you know what your objectives are with real estate investing? Once you know your objectives, then you can start doing research to see which properties meet them.
The perfect property is one that matches your objectives and has a stable enough income to support itself through good and bad times. This is the type of property you need to buy and hold. The rent you make from it should be enough to get you started with other investments.
A player who travels around the board in Monopoly not buying any property, desperately hoping for the chance to purchase Boardwalk may never land on Boardwalk. That player will end up losing to the other players that settled for buying a lesser property at the beginning of the game. Sitting on the sidelines waiting for the perfect property or the perfect market doesn't get you in the game.
Although Monopoly and the real-world real estate market can seem totally random, they are not. The market has little to do with whether or not you lose money. It's possible to lose money in a good market and make money in a bad market. Most of this is decided by how much people decide to research before purchase.
Essentially, there are two parts to being successful at buying real estate: 1. realizing that now is always the perfect time to buy, and 2. finding a property that will pay for itself through good times and bad.
I haven't even mentioned the fact that current market conditions are great for real estate investors to find deals in. Interest rates are low, prices have come down, there is a ton of inventory on the market AND homes are very slow to sell. It's really the perfect time to buy but I am not really trying to convince you of that. I am just trying to convince you that, even if the property you buy today goes down in value tomorrow, you will still be successful as long as you buy one that brings in enough rent to cover it's costs. If you can find deals like this, NOW is ALWAYS the best time to buy. - 23210
About the Author:
Learn How to Retire with Real Estate with Julie's free Buying Investment Property Starter Tips Guide. Learn how to create financial freedom, extra revenue and massive wealth with tips like: How to find quality rental properties, finding and keeping great tenants, and easy ways to make more money with real estate.
posted by X - Men @ 1:55 AM
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