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By Roger Dolanch - Broker/Owner

Why invest in real estate? Most people agree, real estate property investment is and always has been the most powerful type of investment utilized for building wealth. It has been said that over 90% of the world's millionaires achieved their wealth through investing in real property.

Here are a few other things you may not have considered:

The wealthy are not necessarily smarter than everyone else. If you were to take a poll of every successful real estate investor (or any industry for that matter) you would find that over half of them graduated in the middle of their high school class. Don't allow a hidden fear of not having a super high IQ be your excuse for not pursuing your real estate investment dreams!

You never get rich trading hours for dollars. When you trade hours for dollars you have set a limit to your income. Additionally, as you become more and more successful, the more you learn to delegate, the more time you have available to devote to your real estate deals. When the time it takes to accomplish household tasks takes away from your successful income producing activities it may be time to hire others to mow your lawn, clean your house and wash your car. Your time becomes more valuable than the cost of those services.

No other industry is like real estate. The primary reason investing in real estate is such a powerful way to build wealth is due to one very powerful key concept known as leverage. Leverage is using other peoples' money to generate income, most of the time a lender’s money. There is no other commodity that you can finance a relatively large portion of the purchase price over 15, 20 or even 30 years at low interest rates that are seldom found for other types of loans.

Time is your ally or your enemy; use it wisely. Time is referred to as the great equalizer. Kings and paupers alike have but 24 hours in each day. No one has even one second more than another person does. It is possible that you have the time and just don’t know it. Maybe you don't watch as much television! It really can be that simple. Cutting back could give you potentially hours of time to read educational materials about real estate investing or search for properties to purchase!

The deal of the decade comes along every week. Go to any real estate investment club and listen to war stories. The successful members will each have at least one example of their own personal deal of the decade. But these special deals are not easily found. They must be actively and aggressively hunted down. Ask around, follow up on abandoned houses, and call on rental ads. Be certain to tell friends, neighbors, grocery baggers, relatives and, most importantly, your real estate professional what you are looking for.

Not all strategies will work for all people all the time. So how do you know what is right for you? It depends on your goals. Real estate investing can answer all of these situations using different methods: short-term flips, rehabs, and long-term investments each have their positive and negative features. This is why it is critical for you to educate yourself before you take the leap.   

Real estate is cyclical. You will learn through experience to be flexible. The strategy that is working well one year may not work as well the next. Have you studied enough to know what methods you should use or when you should adjust? The person who isn't willing to learn or be flexible in this industry can get broken when the market shifts.

In summary, how you choose to build wealth is your decision. When you choose to invest in real estate, remember that CENTURY 21 Frontier is here to assist you. 

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