5 Principles To Investing In Real Estate
Principle #1: Real estate investing is very different than "flipping" or "rehabbing". One is a very sophisticated process, the other is speculation. One is creating a long term asset base that will feed you for years. The other is creating a job for yourself.
Principle #2: Positive cash flow investments are always better than negative cash flow investments. Always. No matter how "lucrative" the opportunity is or how "up and coming" an area is.
Principle #3: The team of people associated with the investment are more important than the investment itself. Always. Period. End of story.
Principle #4: A long term view is mandatory. The poor think day to day, the middle class think month to month, the rich think decade to decade.
Principle #5: The numbers don't lie. But the interpretation of the numbers is equally important.
When you stick with the basics of real estate investing everything else sort of melts away.
Basics like fundamentally good neighbourhoods and fundamentally good properties are the building blocks of a great portfolio.
It can be tough, but always try to peel the curtain back and look beyond the hype.
The team of people you associate yourself with is more important than "the deal". Remember that. And look to build your own team of experts in your community or target investment area.