To enter or not to enter the real estate market

Achieving and succeeding is not mutually exclusive for high earners or those who have earned multiple graduate degrees and/or occupational licenses. Success is more of an equal opportunity dispenser and is not defined solely by the amount of money one earns or the title one holds. On the other hand, earning an above-average amount of money gives people the opportunity to support their children more generously, whether it’s paying for a college education to buy a new or used car so the child can have a job. Part time. for instance. More money, especially when successfully earned through real estate investments, can complement a comfortable retirement, a second home, long-awaited travel opportunities, or simply a host of other options that aren’t possible if the money isn’t saved and isn’t available. easily available. Other benefits of having disposable income include comfortably supporting parents as they age, who may require an environment that is more medically intensive and costly.

All of the latter can be provided depending on the financial decisions we make and at what age we make them. In other words, I’m not suggesting that a sixty-five-year-old use up half of their 401(K) retirement income and start selling properties. What I’m saying is take a measured look at where you are financially in your life and see if investing in real estate fits into your asset allocation. And for the record, the IRS does in fact allow 401(K) withdrawals for the purpose of investing in real estate.

Long story short, whether you’re twenty-two or seventy-two, some form of moderation is ideal for investing in real estate. With non-owner-occupied loans becoming available that require a 0 to 10 percent down payment, minimizing risk is the paradigm of new tranche investing and can work, as well as be a prudent investment strategy. So with the opportunity to leverage yourself with very little down payment, real estate investing should be considered. Don’t be swayed by “haters” and “haters” who aren’t making a killing like those investors who put out one or two deals a year. Remember, the investment exchange model is quite simple. Do your research, check your cash reserves are adequate, put your flip property under contract, minimize your cost outlays, get a good loan, close the property and flip the motherfucker ASAP!

It was very difficult? Absolutely not. Just make sure you don’t do anything dumb and get “stuck in stupid” and go out and buy nine condos thinking you’ll be the next condo king or, for that matter, buy that second home you really can’t afford. , or that new $125,000, 55-foot Excalibur RV you just paid cash for. Depending on your cash reserve ratios, the latter expenses would be poor decisions and would severely restrict your ability to purchase real estate prudently. So when it comes to your real estate checklist, asset allocation reserves are always important, and straying from this critical tenant is a recipe for trouble. In closing, and remember, every flip you do, get in, get out, and don’t look back, and if you see a straggler in your peripheral vision, run for the hills no matter how steep the incline. . If you follow that simple dictum, you’ll be smiling all the way to the bank.