I have the following issue and hopefully someone can help me.
I got into real estate investing by hearing all the fantastic stories of how people got wealthy in this area. I got in, bought three properties, rented them out and waited for something good to happen. Unfortunately I didn’t become rich. The properties rent, bring some cashflow, but I don’t see any incredible benefits that people talk about. At this point there’s no way I can become a real estate professional. I make over $150k a year and none of my losses for last year are deductible. I have an excellent credit score and some $$ to invest.
I realize that real estate investing is a much broader term than I understand it-so, what are my options? What do I do? Should I continue doing the same thing (buying/renting) or else? Please help me explore this area some more. I feel stuck.
Just because you invest in RE doesn’t make you rich overnite. You must know how to leverage your money & spot the deals that can help you achieve your goals.
There are many strategies that can help you get some cash fast in your pocket. You must educate yourself first.
There are many factors that may have contibuted to you not gaining a profit or equity. 100% financed is hard for positive cash flow. Low income areas are slow to apprecaite.
the fact that you own 3 properties and you’re still asking these questions means
you haven’t read enough about RE investing.
but congratulations on starting anyway. thats probably the hardest part
you need to learn about market cycles and leverage. you make money
by buying in an area that is going to go up in value. (i’d stay away from
areas that have already doubled in 2-3 yrs) try and see if you can by
below market with 5 or 10% down. if you put down 5% and the market
appreciates 10%, you made a 200% return. do that for a few years and
you’ll get rich quick.
rather than investing, if you want a ‘job’ you can buy property that
you can either add value to by rehabbing or adding more sq footage to it.
if you do the correct things, you can increase more value than you spend
and sell at a profit. however this is more like a job[although it can be