A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.
-Suze Orman
For majority of beginner investors, the ultimate aim of investing is to achieve financial freedom.
Financial freedomis essentialto enjoy a happier, richer lifein our adult lives. In addition, thisshould be your goal as a beginner investor.
What is Financial Freedom?
The bestdefinition ofthe subject I ever heardisthe number of days you canlive without working andmaintain your present standard of living. Legendary inventor Buckminster R. Fuller coined this definition.
TheGreatMoney Mountains
There are three great money mountains you can tap to become wealthy: real estate, stock market and marketing mountains. Thesethree are the proven paths to wealth. Majority of individuals that make theForbes rich list, have achieved their wealth through either one or acombination of these money mountains.
How toApproach Investing in Real estate
The ownership of property has been a provenwealth producing Money Mountains for centuries. You should make owning income producing properties as part of your long-term wealth creationstrategy. There are tons of books written on techniques and strategies for investing in real estate. The most important thing you need to know is how to leverage the real estate mountain to accomplish your goals.
Three factors are critical to success in real estate investing:
Finding. For you to become a successful investor you need to know how to find bargain properties...properties below market value that will pay for themselves and bring you profits. Successfulinvestors know thatprofit comes from buying rightnot when you sell.
Funding. You must also know how to fund your property deals. There are many ways to fund deals, your ability to get financing is the key to buying bargain properties. The good news is you caneasily get financing if you know where to find the money. Money follow good deals...so make sure you become good at finding good property deals
Farming it. The other critical skill you need to succeed as a real estate investor is to know how to reap profits fromdeals. You may decide to hold on to properties you find because they have good cash flow that deliversincome to your bank account. Moreover, you could also flippropertiesfor profit. The actions you take depend, on the investing cycle you find yourselfand your core investment philosophy.
Real estate is a powerful wealth-building vehicle you must consider as a beginner investor.Thewealth created frominvesting in properties tends to be stable and less volatile compared to the stock market.You can also predict the cycleswith ease compared to the other types of wealth building vehicles.
Leverage is also a big advantage of investing in real estate, because you can buy properties with little or no money down.
There are thousands of properties for sale in your city. When you have these three critical skills to success, you can weed out badproperty deals, hone down to find bargain properties, fund the properties, reap the profits and grow wealthy in the process.
It is about finding it, funding it and farming it.
Think rich and grow rich.
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