How To Invest In Real Estate "WITHOUT LOSING YOUR SHIRT"

So I recently spoke with one of my students who said he was ready to invest in some properties but was holding back.

When I asked him why his response got to me.

He says "Hey Josh. I really have the money to invest but I don't have the money to lose"

And my response was "Wait, you mean people still lose money on real estate deals"

Well, I have never lost on a deal before, in fact, I have only made profits in the last 9 years.

Of course, there are times when things may not go as I had planned but I always have something to put in my pocket.

So, I have forgotten that people actually lose money on these deals.

It was during this conversation I realized that indeed, people are still losing money investing in real estate.

And there are several reasons why this is.

Some of these reasons that I have seen and according to Forbes include:

Negative Cash Flow - The number one problem preventing investors from winning the long game is buying a property that loses money every month.

If you want to make money in real estate, you should plan on holding an asset for a long period. Good things happen when real estate is owned over the long haul. Loans are paid down, rents tend to increase, and the value eventually goes up.

Following The Herd - Many bad decisions are made when they are based on what others are doing, rather than basing them on sound financial principles.

It may be tempting to follow the herd, but understand it is a false sense of security. Just because everyone else is buying doesn’t mean you should too. In fact, it may be the opposite. You find the best deals sometimes when no one else is buying.

Underestimating Rehab Costs

Don’t be the person who makes the mistake of buying a property then running out of money before it’s ready to be rented out. Don’t bet on contractors, don’t bet on estimates, and don’t bet on numbers in a spreadsheet. Make sure you bet on yourself and have enough money set aside to finish your rehab, even if you’re told that’s unnecessary.

Lack Of Reserves - Too many variables are involved in owning rental property to be able to accurately determine when unexpected expenses will hit, and how much they’ll be.

None of this takes into consideration evictions, destroyed property, and more. While you’ll eventually end up positive if you hold a property long enough, there will be times when you're bleeding cash. Having a sufficient amount of reserves during these times is crucial to your success.

Betting On Appreciation - Amateurs buy a house assuming it will go up in value and they can sell it later. Professionals buy under-valued properties in solid locations that produce positive cash flow.

Buying in Bad Neighborhoods - When you buy in an area where good tenants won’t want to live, you’ll be forced to rent to less than desirable tenants with lower credit scores, less reliable income streams, and worse rental histories. The cons just won’t justify the pros.

Failing to Educate First - Not understanding what they're getting into until after they had committed to purchasing a property.

Certain decisions like buying a property, starting a rehab, or putting money into a deal, can’t be taken back once they are made. The time to realize you’re not prepared, or it’s the wrong deal, is before you pass the point of no return.

These reasons are endless and I could go on and on….

AND THAT IS WHY I DECIDED TO WRITE THIS SHORT GUIDE

Invest In Real Estate WITHOUT LOSING YOUR SHIRT

Shark's Short Guide To Finding The Best Real Estate Deals & Building A Multi-Million Dollars Portfolio

This guide will walk you through;

How to find the best real estate deals: I will show you what sites to go to and what to look out for to help you determine a good deal.

How to find properties in the best locations: Remember that the location you choose to invest in is as important as anything else in real estate investing, so I will be sharing with you what to look out for in a location before investing.

How to bid and close deals: I will also be showing you how to bid and close deals without spending so much and running at a loss.

How to know your numbers and build your team as a real estate investor: Knowing your numbers is another important thing in real estate investing as well as having a team to help you do certain things as you cannot do it all alone. In this guide, I will share with you what numbers to look out for, how to calculate your numbers, and how to get the best contractors and guys on your team.