is real estate investment meant for the rich?

[jet510]

By no means is real estate an asset class dedicated solely to "the rich"
Anyone with the right knowledge and know how can profit from real estate
especially since many strategies in real estate investing dont require you to use your own
money! (i.e wholesaleing). I think what your friend might have been referring to is that
high net worth individuals are usually the ones who have the financial savvy, experience, and capital to
profit from real estate in big way. Hope this helps!!

[ChasRE]

You don't have to be rich to invest in the real estate market, you can buy the cheapest condo in the country and technically you are still investing in the real estate market. Do you have to be rich to have an impressive portfolio that features 11 uber luxurious homes in the most sought after areas and an apartment building downtown? Of course. It's a spectrum and I'd say the closer you are to the rich side of the spectrum, the more likely you are to make money.

[MillerREALTOR]

My Brother started buying real estate when he was poor. I started selling it when I was rich. Now he is Rich and I am poor.

There are homes you can buy for 5-15k and rent. I do not recommend financing, If you can find homes cheap enough to buy outright that would be best. I have several business models to help you just need to know your financial position and goals.

P.S. My brother has about 170 rental properties currently

[newlaunchsingapore]

hi LauraAlAmery, totally agree with you. when it comes to real estate, we really have to ignore those negative people. That the different between average and successful people

[www.eric3.com]

Can you imagine how long it would take to buy your first property if you wanted to pay all cash for it? i started with $25k and bought my first duplex in 1996 with $20k down. I eventually owned 14 of my own and managed another 15, so leverage is definitely the way to go, unless your lifespan is 300 years haha.

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

[realestateguy]

Real estate is NOT for the rich! It's probably what made the rich, well, rich! Is it easier to overcome fear of purchasing real estate if you have a few million in the bank? Sure. Just make sure you crunch your numbers. Condos and townhomes are nice because the exterior and the grounds are maintained by a professional management company. These types of properties come with other issues though - what happens if a lot of people stop paying their dues? Yours will go up and in the worst case, the HOA or COA becomes insolvent. Check the reserves of the association before purchasing (part of your standard disclosure docs - add the rider in your contract). Also, those association fees, unless it includes something of value (like a pool, courts, fitness, wifi, cable, water, etc.) can be looked at by a potential homeowner as a huge negative.

Think about it, how much extra house can you have if you allocate the $300/month COA fee to a mortgage? Quite a bit at today's rates. Try to find something in an established neighborhood with some cosmetic issues that can be rented at some good cash flow. Depending on where you are in the country, your prices are probably pushed down to the point where this shouldn't be too hard to find. Many markets are on the uptick. I just conducted a real estate seminar in Orlando and the market stats there are really promising.

Find, contract, and purchase the property and then make sure you SCREEN YOUR TENANTS! If you have money in a retirement account, you can use those funds to purchase property too through a self-directed custodian. Please just make sure you do your due diligence on the property and if you go the retirement route, on the plan preparer. A real estate 401k plan is the best version of this that I've seen so google it an do some research. Good luck!