August 5, 2019 at 9:00 pm #13643Siva KolappaParticipant
I would like to share my own experience about how you can become very wealthy and financially independent with a logical, disciplined approach to real estate investment. There’s just a couple of key factors the are a MUST in getting to your destination:
-Choose the Right Market
-Choose the Right Professionals to Help You
-Obtain Advantageous Leveraging
-Choose the Right Property for the Right Price in the Right Location
I was lucky enough to grow up in one of the ‘right’ markets (Fort Worth), and my mother was a property manager. If you are unsure of where to invest, check out this site https://www.propshub.com/
his site does an outstanding job in selecting the best places to invest in the United States for income producing residential investment properties.
From early on, I saw ‘other’ people getting wealthy from my mom’s hard work. I wondered how they did it. Then, years later, it finally hit me. They didn’t do it. My mom did most of the work. At this point, I realized the incredible and irreplaceable value of choosing the best property manager. Her tireless work and savvy decision making with regard to maintenance & leasing was key to the success of the properties. Why didn’t my own family invest in real estate so that one day they’d be hiring a property manager and living off of their income? Little did I know that it was just a matter of getting that first chunk of change together and then qualifying for financing. At the ripe age of 26, I said Mom, why don’t YOU invest in real estate? Let’s buy the first house together. So, we did. We paid 82,500 for this house around 14 years ago and put in about 17K to fix it up. It’s been leased non-stop for the last 14 years. We put a 15 year mortgage on the house at the time of purchase. Today, it’s worth about 180K and is nearly paid for. It has produced thousands in rental income over the years. So, what did it take to make this happen? It took 20% of the sales price – $16,500 plus some closing costs ($5,000) plus 17K to fix it up for a grand total of $38,500.00. That means we grew our $38,500 to $180,000 in approximately 15 years while cashing in on over 30K of free cash flow over that same period. Now, that is a return that you CAN realize in real estate. Those who use the power of leveraging will normally yield more in the long run than cash investors. However, leveraging doesn’t make sense for everyone. If you are already sitting on several million in capital and need to generate immediate income from that capital, cash purchases could be right for you depending on your goals and circumstances.
Do we get rich quick? No. But, let’s imagine that you invest 38K ever year or every other year. Lenders will give up to 10 government backed 30 year loans to investors in most cases. This is easier if you are established in your profession and can document at least two years of steady income from the same source. It’s easy to see how you can get your million in equity.
ROI Calculator: https://www.propshub.com/roi-calculator
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