The Real Estate Investing Journey

I remember getting a Carleton Sheets course and digging into it with all the naivete' of someone wanting to make quick money in RE... zero coupon bonds, blah blah... 50 ways to buy a house with no money down... then along the way I heard someone say (I believe it was Bill Bronchick) that just because you can get a house zero down doesn't make it a good deal... What an understatement in today's lending landscape. We have flipped one house a couple of years ago (for sake of definition, I call a house a flip if you buy it low and sell it within a year for a profit)... it went ok, but in today's market I feel for us flipping would be much tougher with lower prices and higher holding costs to get out of the house. Also, in one of the Rich Dad books, Kiyosaki eludes to the fact that profits from flipping are taxed much higher than more long term strategies. So, now we look to buy houses below market and hold them for the long term... We're just trying to get the ball rolling (which is the hardest part).

Who knows how we will do things in the future, but for now and in this market, we are being very selective and careful so we don't sink ourselves in the short term. I feel the hardest part in RE investing is surviving the short term... vacancies, repairs, etc... but the long term picture is generally rosy, the longer you can hold a house and keep it afloat, the better off you will be. Of course the economy could turn so sour that that won't be the case... but buy right and those risks can be mitigated to a degree. The stock market can theoretically go to zero, but people will always need a place to live. Plus you always hear "God isn't making any more land". Yes, there are real risks to Real Estate, and you need to be honest with yourself about those risks... but also, I feel that real estate detractors overstate the risks in reaction to their own internal fears... fears which many times are irrational. If you truly want to succeed in real estate you should identify and write down your fears and what you see are the risks to RE, then take that list to someone who has already succeeded in RE and ask them if those fears/risks are legitimate. Many times they are not. Also, start slow and build slow... don't try to get rich quick.

Proverbs 28:20 "A faithful man shall abound with blessings: but he that maketh haste to be rich shall not be innocent." Get rich slow and steady!

Above all, pray and honestly ask God what He wants you to do, because RE is *not* for everyone... but if it *is* for you, ask His favor and go for it!