There are some people who get incredibly wealthy through stocks and some other people who do not. For the people who don’t succeed, is it that stocks don’t work or that the people using them don’t all possess the right knowledge and skills?

It’s funny because every man is a “self made man,” it’s just only the rich who admit to it. The wealthy are what they are because they have applied knowledge that works. Studies repeatedly conclude that over 90% of wealthy
individuals have become wealthy through real estate. Does it really work? It works better than any other system of business to produce wealth with the right knowledge and skills.

Here are a few things to think about and properties to avoid when you are ready to invest your hard-earned cash equity capital.

1. Anything that doesn’t generate rental income
These include second homes and land investments. Too many people invest in properties hoping that they will go up in value. But there is an opportunity cost to having money sit in real estate that doesn’t pay any income. Even if the property goes up in value, you’ve got to reconcile and account for all the money you would have earned if your money had instead been in the bank or in stocks and/or bonds.

2. Anything with negative cash flows
If you buy a “prize property” — such as a fancy downtown fancy condo, beach property or vacation rental — it’s probably going to be 20+ years before you get your first dime of positive cash flow. And that’s just no way to invest your hard-earned money. Pencil out any potential deal ahead of time, and buy properties that pay cash flow from day one — the moderately priced properties in non-prize areas.

3. Tenant-in-common (TIC) investments
These were popular from 2005 to 2007 as a way to diversify a portfolio without having to deal with the hassle of owning and managing real estate. But few people ever earned a dime because of all the costs and fees associated with the agreements.

4. Development deals
Development of land is extremely high risk. There are entitlement, construction and market pricing risks, plus countless others. These investments are best left to the extremely wealthy and experienced investors who can take the chance that they’ll never see their money again.

5. Condo-hotels, intervals & time-shares
These aren’t even investments. There’s no ability to predict cash flows, rental income or future value/sales prices. And they are very hard to resell and typically only at a fraction of the original cost.

6. Foreign real estate
You might be OK buying real estate in Canada or Britain – however don’t forget about the foreign currency risk — but foreign countries generally have different real estate laws, protections and fluctuating currencies, making these properties extremely high risk.

When purchasing a property requiring renovations, hire someone with a good local reputation to oversee the project, preferably an architect or reputable contractor. A friend of mine, wanting to save money, chose to take on the task of overseeing his renovation project himself much as one might do in the rest of North America, hiring a local electrician, plumber, carpenter, etc… to do individual jobs. While most of the work got done, he had to keep flying back to Mexico to ensure the workers were actually showing up and doing their various jobs.

Lifestyle changes are often the reason behind our decision to sell. Whether you are relocating, have a growing family or are downsizing, working out when to time your sale can be daunting – especially for first-time sellers. Your decision to sell your property may not coincide with the perfect market conditions. Therefore it is important to know what is happening in the property market and the economy as a whole, as the real estate market generally reflects the current state of the broader economy.
Additionally, you should consider your own personal objectives, your ability to finance a new property and meet ongoing repayments and capital gains tax implications for selling an investment property

There are two basic types of real estate investor: passive and active. :roll:
1.Passive investors are purely speculators. They believe they can determine when the market is about to explode and buy properties that will do well in such a market. This involves a great deal of skill and a substantial amount of luck.

2.Active investors actually take the time to fix up properties. Perhaps they buy a home in need of care and work to fix it up, then put it back on the market.

Determining what type of real estate investing you want to do is very important.

Hello Everyone,


I am living in NYC and I have 100K saved.

I want to invest it in income-producing properties such as condos with low HOA fee.

Since I work part time lenders here in NYC are not favorable to
lending me money, and also NYC prices for real estate are very high. I also have no family that keeps me here in NYC since
I am originally from Europe.

I am even willing to relocate anywhere in the US and start over maybe getting a real estate license and start over.

Anyone have a suggestion please?

Make it a business.complete with a business plan.

Real estate investors are professionals. They run their investments like a business. They have a separate phone line for their business dealings, they dress the part, and they design a business plan that tells them where they are headed.

Real estate investors also set goals for their businesses, rather than just hoping to make “some money” from properties. The more professional you are about your business, the more likely you are to succeed.

Study, study and only study. :happy:
When investing in real estate, it is imperative that you carefully study each property before you purchase it. You must study the condition of the home, home prices in the area, the neighborhood, and much more. Going over everything twice ensures that you don't get stuck with a dud.

You should also be researching real estate investing in your area. You should become familiar with contracts, tax laws, real estate opportunities, and much more. The more you know, the more likely it is that you'll find great real estate investments.

Hi,
which one is most suitable for investment and why?
looking for some real discussion .

thanks