is real estate investment meant for the rich?

[obitech]

Hi real estate webmasters.
i was talking to a friend about investing in real estate and how it will become his financial pillars in future and he told me that real estate investment is meant for the rich. After trying to convince him, i realise that when you mention real estate investment to an average investor, their minds drifts to alraedy extablished and expensive real estate markets because of the beauty, class, and rentage fees of the location without putting other things into consideration thus putting away their chances of investment.
Has any of you had any similar experience?

[realestategirl]

I have friends with similar attitudes. But primarily their beliefs are fuelled by the state of the housing in the country. They feel the rich should be the ones in charge of real estate because if things turn south, they have plenty of funds to cushion the blow.

[Kjmendy]

Real estate is not an investment meant for the rich since it is so easy to buy with little or no equity. It can however make your rich if you invest property and don't over extend.

[bryner123]

As Kjmendy wrote, you don't need much money (especially not today with all those foreclosures and 'Will sell home for 6pack of beers' offers. But you need some strategy, goal, determination and all the other stuff...

[Java Jack]

So, my wife and i have toyed with the idea of buying an investment property but not sure really how to get started or what to look for. Should we buy a condo/townhome and rent it out? Should we buy some type of acreage further out and let it appreciate? Should we look at a small commercial strip? Do we buy some type of scenic property and then host parties, weddings, etc.?

We are no way qualified to flip houses, etc. Would not even know how to get started. I just think we need to diversify our investments so they are not all wrapped up in mutual funds/stocks/bonds (401K, Roth IRA, etc.). What ever we would invest in would need to generate some type of cash flow to help offset the payment because we can't afford 2 payments and still contribute to our other retirement accounts.

Any thoughts/recommendations on what to look at?

[OYLBuilders]

Is it for the wealthy? I think at least somewhat.

I'm a bit of a Dave Ramsey fan and I think if you want a low-stress investment it would be wise to follow his advice to not use credit when buying an investment property.

Imagine how much less stress you would have with all that positive cash flow and no mortgage payment. I think that's the way to go. It will require you to take some time to save up cash, but I think that patience will pay off.

Joel

[Java Jack]

Thanks. I am actually quite a fan of Dave myself. In fact, it was his Financial Peace University program that helped me get into a situation where I could actually start making investments. Ideally, I would not want to take out any significant loan for such an endeavor. While I would not take out any significant loans, I would likely need to take out something. I am on my way to getting my house paid off and I don't have any other debt (no car payments, no credit cards, etc.) so I am able to put away some decent savings every month in addtion to maxing out 401K and Roth accounts. I would like to start using that in some real estate investments in the near future. Just trying to decide what type of real estate to invest in.

[OYLBuilders]

That sounds like a decent plan. If I were in your shoes I would probably be looking at purchasing a duplex or triplex, something where my revenue is spread across a few tenants yet the property isn't too large or expensive. I would also want it in a middle-to-nice area of town so I would attract tenants who would take good care of it.

I have no experience with property management, but that's where my line of thinking takes me.

[antoniopalma]

The way i see it, the best way to invest in real estate is to look for great opportunities. This means do not bury your money in a house you just saw and have a "feeling" for it. Take your time, analyze the market, analyze again and take some more time.
Having the money to buy "pronto" is better, if you have to ask for a loan make sure the house is well worth the price tag.

[LauraAlAmery]

You are always going to encounter people who are skeptics and negative about real estate, the economy, etc.
If you want to prosper in real estate, you need to learn to ignore the negative opinion and network with like-minded people.
I have been in the business for over 20 years and I have met opposition and encouragement along the way. I politely have ignored the opposition and embraced the people who have shared with me real estate success and vision.