Throughout your life you’ve probably heard all about it, how buying real estate can make you rich. Well the truth is it can and it can be a lot more stable than moving numbers around with stocks or mutual funds. It all depends on how you go about it, what you’re prepared for, and how patient you are. Lately there’s been a lot of news about the quick fix, the “flip”. Truthfully this rarely works out the way it’s been portrayed and most people break even or lose money. Think about it, if flipping houses was the best way to make money wouldn’t the real estate agents be the ones doing all the buying and flipping? Most of us don’t unless we get really lucky and come across something special. You have to reeaally know what you’re doing to do a successful flip and even if you do all of it yourself and used all of your connections you’d still have to carry the mortgage and pay closing costs.
Definitely the best way to invest in real estate is to buy and hold for as long as you can. With what’s going on in the States right now some people might be concerned that real estate isn’t as good as it looks. However, those people that are holding real estate are fine, as long as they can keep holding it until the prices go back up again. The best way to buy and hold real estate is to rent it out and that can be an issue all on it’s own which is why I have this page devoted to half Investing and half Property Management. Because purchasing a property is only the start, proper property management is how you keep your real estate assets going up in value. I would highly recommend that after you buy your property (or even better, before) you find a great property manager and you follow their advice. More advice to come!