There are TONS of people out there that are dedicated to 'teaching' you how to invest in real estate, quit your job in 90 days by investing in real estate and other catch phrases that get you to buy a course only to start out excited and encouraged to invest but quickly get discouraged or worse yet, FEAR that you will FAIL because of lack of experience or knowledge.
It is true, knowledge is power. As a private pilot, you NEVER stop learning and improving. Same for real estate. I think that's why I love this so much because it's never boring and always evolving making different ways to make or create wealth. But, knowledge is only good if you USE IT. So, you can study and listen, network and observe but until you get out and PRACTICE your knowledge, you won't go anywhere. FEAR is the worst enemy to investing or dealing with real estate. Fear of failure, embarrassment, making mistakes, being taken advantage of.....you name it, it's gone through my mind and I'm sure it goes through may others too. So, what do you do? Well, this may sound very odd to many but the first thing I do is pray about it. If it's not the right thing to do, don't let it happen. Make it go away. Using your knowledge to the best of your ability is the next thing, trusting your instinct and 'gut' once the deal is presented. Once you've done your first deal, they all get easier and easier.
I watched a first time investor get their first investment property 2 years ago. I know they went through the exact same process. They own 8 now and love every minute of it. It's their retirement income. Have they made mistakes? Absolutely! But, the successes outweigh the mistakes making them very small. Here's an example, I told my wife one day that if you only have 1 rental and it's full, you have 100% occupancy but if you have 1 rental and it's empty, you have 0% occupancy. So, what is a bigger risk? If you consider owning 10 rentals vs 1, going from 100% to 0% with 1 rental or 100% to 90% with 1 rental empty? Pretty clear huh? The odds of having 10 rentals with all empty are so minimal but having 1 rental, the odds are pretty good it will be empty at some point.
So, how does all this tie in to building wealth with real estate? Well, to many, in today's market buying real estate immediately becomes a scary thing because of the amount of money it takes to control the property. It's a lot of money to think about. On top of that, for those thinking about rentals, thoughts immediately go to 3am calls, move outs in the middle of the night or worse yet.....repairs! Honestly, many of this can be minimized with just a little common sense and planning up front. That's really all you need. Think about this, if you owed $1,000,000 but had the cash flow to pay for $2,000,000, does that seem like you can handle that debt? All of a sudden, $1,000,000 doesn't sound so bad. That's kind of the way it works with real estate. I haven't even gotten into tax benefits, multiple streams of income opportunities, leveraging and exit strategies that you can take advantage of using real estate as a vehicle of investing. It's truly an amazing thing. Just buying a home to live in builds net worth. For most Americans, the primary residence is the largest single investment for them.
Deb and I take a tremendous amount of pride and care because of this. Regardless if it's investment property or primary residence, we know it's a big deal for the majority of people so it needs to be done correctly. If you would like more information about us and any of the properties available in the greater Springfield area, visit our website; www.thebroadwayteam.com and get some answers. Set up your own search and stay up to date on activity in the market. If we can help you buy or sell your home, we stand ready to serve you and get the best deal possible.
Monday, March 31, 2014
Monday, March 24, 2014
Renting vs. Buying in today's market
I know that I probably sound like a broken record (or CD as it is today), but I gotta tell you, if you're even THINKING of buying or selling your house, now is as good of time as it's been in YEARS! Interest rates are low, prices are low and banks and mortgage companies are interested in lending!
With all the positives, there can't be any negatives right? Not exactly. Inventory is still low but improving now. As I mentioned in the previous post, you're seeing more construction which is a great sign things are shaking loose but it takes time to see the improvement. But, believe me, it's there and moving. Prices are on the rise which is great news for sellers and those that tried to sell in 2010, 2011, and 2012. I've talked to several folks that have made it through those years and are starting to think about getting their houses back out there on the market.
If you need more information, he's yet another reason to buy in todays market:
http://www.forbes.com/sites/trulia/2014/03/05/buying-a-home-is-now-38-cheaper-than-renting/
Note the comment on what interest rates need to be to break even on renting vs buying! Pretty astounding huh?
So, if you know someone that has tried to sell their home over the past 3 years and didn't have any luck in the Springfield MO area, let Deb and I know and we'll take good care of them. If your nervous about house values, don't be because values are on the rise. If you're nervous about values because you can't get 'what you want' out of your house, think about how much MORE house you can get for the money your paying. In some situations, you can come out much better than you might think.
With all the positives, there can't be any negatives right? Not exactly. Inventory is still low but improving now. As I mentioned in the previous post, you're seeing more construction which is a great sign things are shaking loose but it takes time to see the improvement. But, believe me, it's there and moving. Prices are on the rise which is great news for sellers and those that tried to sell in 2010, 2011, and 2012. I've talked to several folks that have made it through those years and are starting to think about getting their houses back out there on the market.
If you need more information, he's yet another reason to buy in todays market:
http://www.forbes.com/sites/trulia/2014/03/05/buying-a-home-is-now-38-cheaper-than-renting/
Note the comment on what interest rates need to be to break even on renting vs buying! Pretty astounding huh?
So, if you know someone that has tried to sell their home over the past 3 years and didn't have any luck in the Springfield MO area, let Deb and I know and we'll take good care of them. If your nervous about house values, don't be because values are on the rise. If you're nervous about values because you can't get 'what you want' out of your house, think about how much MORE house you can get for the money your paying. In some situations, you can come out much better than you might think.
Thursday, March 13, 2014
New Construction
Have you noticed that new home construction has picked up significantly in your area??
It has around here. That's a very good sign for the housing industry too. First, it lets you know that lending institutions are beginning to have confidence in the market. Second, builders are feeling confident because they believe they won't have to hold the house(s) for a long time.
You might say, 'I'm not interested in a new house, I'm happy where I'm at' or, 'that's all great news but I can't afford a new house.' Well, it impacts you regardless. As new homes are built, those that want a new home, will be purchasing which means they probably have a house to sell. That means more supply and demand will begin to follow and prices will begin to tilt upward! Now, how do you feel? Whether you're moving or not, you're going to feel the impact on the new housing starts with increased values.
In this area, we've seen about a 7% increase in prices. A little under the national average which would be expected. I anticipate another good year this year and next year even better!!!
This is a time that is rarely seen in the real estate market. Prices AND interest rates are relatively low! Almost a perfect storm of opportunity. Those that can take advantage, will reap the benefits for years to come.
I wanted to share with you this years promotion for Coldwell Banker. Personally, I think it's very well done but let me know what you think:
Coldwell Banker 2014
Let me know how your market is doing now. It's been a long time coming but things are picking up.
Hope everyone has a fantastic rest of your month!
It has around here. That's a very good sign for the housing industry too. First, it lets you know that lending institutions are beginning to have confidence in the market. Second, builders are feeling confident because they believe they won't have to hold the house(s) for a long time.
You might say, 'I'm not interested in a new house, I'm happy where I'm at' or, 'that's all great news but I can't afford a new house.' Well, it impacts you regardless. As new homes are built, those that want a new home, will be purchasing which means they probably have a house to sell. That means more supply and demand will begin to follow and prices will begin to tilt upward! Now, how do you feel? Whether you're moving or not, you're going to feel the impact on the new housing starts with increased values.
In this area, we've seen about a 7% increase in prices. A little under the national average which would be expected. I anticipate another good year this year and next year even better!!!
This is a time that is rarely seen in the real estate market. Prices AND interest rates are relatively low! Almost a perfect storm of opportunity. Those that can take advantage, will reap the benefits for years to come.
I wanted to share with you this years promotion for Coldwell Banker. Personally, I think it's very well done but let me know what you think:
Coldwell Banker 2014
Let me know how your market is doing now. It's been a long time coming but things are picking up.
Hope everyone has a fantastic rest of your month!
Subscribe to:
Posts (Atom)