In the short term, RE might not be a good choice, but for the long term, it is a much better one on the average return.

If you can get an average return of 10% from the stock market, you are doing very well. But on the RE market, you can do much better in normal conditions.

In the large metro areas, 7% annual increase in RE price is common. If you put 5% down, you borrow 95% from the bank, your capital increase 20 times. If your rent can cover the interest, tax, insurance, HOA, and maintenance, your return is 20*7% which is 140%. Isn’t this simple enough? This kind of leverage is really great. If you can pay down the capital by the same time, this leverage is even larger.

For years, hot-shot speculators made huge profits flipping condos in Florida and Vegas before they were even constructed. All the while, the naysayers in the ivory towers of Wall Street and academia warned of a “housing bubble” that was sure to burst as all bubbles do.

When Fed chairman, Alan Greenspan, said that the national real estate market was “frothy,” the writing was really on the wall, and anyone with half a brain could see that we were in for a “cooling” of the housing market, at best. Yet still, speculators continued to profit, and the real estate bull market marched on…

The path of the Millionaire Real Estate Investor is a progression through four stages. First, you must learn to Think a Million (think like a Millionaire Real Estate Investor) before you make your first move. How you think matters. Whether this strikes you a cliché or as a timeless truth, the bigger you think, the more you can accomplish. What you hold in your mind is what shows up in your life. Learning to think like a Millionaire Real Estate Investor will give you the greatest chance of becoming one.

“Multifamily is difficult for smaller investors to get into unless they have a lot of capital on hand. If you start out with single-family houses, banks will incrementally grow with you into multifamily. Plus, single-families involve a lot less risk.” - From a Real Estate Investor in Sacramento, CA 

One of the essential area of Criteria for real estate investor is property type. Are you looking for single-family homes or multifamily properties, urban or suburban, resort or ranch, new construction or resale, lots or land? Today let’s just focus on residential real estate - properties people live in - let’s take a closer look at the single-family and multifamily properties.

Beginning a hobby or career in real estate investing doesn’t have to be so complicated or such hard work if you will only begin with what you have, right where you are at this moment.

Look for someone who really needs to sell their home and solve their problem. One of the fastest solutions if they are about to lose the house is to take over their payments on a subject-to contract. By giving them some walking money, they can afford to move and still have the cash to rent another home.