The Monopoly Way to Real Estate Investing Success
Lots of people ask me "when is the right time to buy property?" Well, the truth is, anytime is a good time to buy property. However, just because it's always the right time doesn't mean you can't lose money on real estate. Real estate, like other investments, carries a certain element of risk - otherwise it wouldn't be investing! What makes real estate investing risky? Buying bad properties. Bad properties are bad properties- it has nothing to do with timing.
People ask "Should I buy property in this sky high market or should I wait for it to turn around or hit rock bottom?" Timing the market is impossible. No one really knows what it's going to do. However, you can find a good deal in any market and a good deal is always worth buying.
I learned about real estate early because I come from a family of real estate investors. Whenever there are big family events, we always play Monopoly quite competitively. It's not just a game to us; we do it to prove how good we are at investing in real estate.
The secret to winning in Monopoly is just like the secret to winning in life with real estate; although you cannot time the market it is about timing.
You want to buy as much real estate as you can, as early on in the game (or in your life) as possible . . . which means, the best TIME to buy real estate is ALWAYS now.
You wouldn't play Monopoly without knowing the rules right? You'd be totally lost. Everyone knows that in Monopoly the person with the most money wins, and that you make the most money by buying selling and renting property. But if all you do is roll your dice and move your piece without a clear strategy, there's very little chance to win, just like in life.
Similar to Monopoly where you shouldn't start the game without reading the rules, in real life investing you shouldn't start buying houses without first figuring out a few things. In particular, you should sit down and think through your real estate investing objectives. Then, do some research to find a market with good fundamental economic conditions, and finally find and evaluate a property to find one that meets your objectives.
A property that meets your objectives will most likely provide steady rental income that can carry the property in times of economy fluctuations. If you find such a property, buy it and hold onto it, using the extra rental income to finance other real estate purchases.
In Monopoly, the most desirable piece of land is Boardwalk. Sometimes people don't spend any money in Monopoly because they are saving it all for the chance to purchase Boardwalk. However this is a mistake- while you hold out for Boardwalk, other players who bought other properties early in the game are making steady income. If you wait for the perfect 'landing spot' or the perfect market, you'll find that it might be too late to get in the game.
That's why you need to focus on buying an investment property that meets your needs, not your ideal. You don't have to be born under a lucky star; you just have to have a clear vision of what you can live with. There is money to be made and lost in any type of market.
Essentially, there are two parts to being successful at buying real estate: 1. realizing that now is always the perfect time to buy, and 2. finding a property that will pay for itself through good times and bad.
I haven't even mentioned the fact that current market conditions are great for real estate investors to find deals in. Interest rates are low, prices have come down, there is a ton of inventory on the market AND homes are very slow to sell. It's really the perfect time to buy but I am not really trying to convince you of that. I am just trying to convince you that, even if the property you buy today goes down in value tomorrow, you will still be successful as long as you buy one that brings in enough rent to cover it's costs. If you can find deals like this, NOW is ALWAYS the best time to buy. - 23222
People ask "Should I buy property in this sky high market or should I wait for it to turn around or hit rock bottom?" Timing the market is impossible. No one really knows what it's going to do. However, you can find a good deal in any market and a good deal is always worth buying.
I learned about real estate early because I come from a family of real estate investors. Whenever there are big family events, we always play Monopoly quite competitively. It's not just a game to us; we do it to prove how good we are at investing in real estate.
The secret to winning in Monopoly is just like the secret to winning in life with real estate; although you cannot time the market it is about timing.
You want to buy as much real estate as you can, as early on in the game (or in your life) as possible . . . which means, the best TIME to buy real estate is ALWAYS now.
You wouldn't play Monopoly without knowing the rules right? You'd be totally lost. Everyone knows that in Monopoly the person with the most money wins, and that you make the most money by buying selling and renting property. But if all you do is roll your dice and move your piece without a clear strategy, there's very little chance to win, just like in life.
Similar to Monopoly where you shouldn't start the game without reading the rules, in real life investing you shouldn't start buying houses without first figuring out a few things. In particular, you should sit down and think through your real estate investing objectives. Then, do some research to find a market with good fundamental economic conditions, and finally find and evaluate a property to find one that meets your objectives.
A property that meets your objectives will most likely provide steady rental income that can carry the property in times of economy fluctuations. If you find such a property, buy it and hold onto it, using the extra rental income to finance other real estate purchases.
In Monopoly, the most desirable piece of land is Boardwalk. Sometimes people don't spend any money in Monopoly because they are saving it all for the chance to purchase Boardwalk. However this is a mistake- while you hold out for Boardwalk, other players who bought other properties early in the game are making steady income. If you wait for the perfect 'landing spot' or the perfect market, you'll find that it might be too late to get in the game.
That's why you need to focus on buying an investment property that meets your needs, not your ideal. You don't have to be born under a lucky star; you just have to have a clear vision of what you can live with. There is money to be made and lost in any type of market.
Essentially, there are two parts to being successful at buying real estate: 1. realizing that now is always the perfect time to buy, and 2. finding a property that will pay for itself through good times and bad.
I haven't even mentioned the fact that current market conditions are great for real estate investors to find deals in. Interest rates are low, prices have come down, there is a ton of inventory on the market AND homes are very slow to sell. It's really the perfect time to buy but I am not really trying to convince you of that. I am just trying to convince you that, even if the property you buy today goes down in value tomorrow, you will still be successful as long as you buy one that brings in enough rent to cover it's costs. If you can find deals like this, NOW is ALWAYS the best time to buy. - 23222
About the Author:
Learn How to Retire with Real Estate with Julie's free Buying Investment Property Starter Tips Guide. Learn how to create financial independance, positive cashflow and massive wealth with tips like: How to find quality rental properties, finding and keeping great tenants, and easy ways to make more money with real estate.
posted by X - Men @ 6:12 AM
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