Real Estate Investing Tips
Pros and cons of real estate investing
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Pros and cons of real estate investing?
You’re thinking about getting started in real estate investing, but you’re not sure if it’s a good idea.
Let’s talk about some pros and cons to real estate investing.
Today we’re talking about real estate investing. Is it a good business to get involved in?
Let’s talk about some pros and cons. Let’s start with the cons because everybody always starts there, right?
Number one, risk. It’s a risky business. If you take a house and it’s a hundred thousand dollar, two hundred thousand dollars, three hundred, five hundred thousand dollar house. That’s a huge bunch of money. That’s a huge risk, right?
It is. If you don’t have the right knowledge, the key risk is only to the extent of calculated risk. Think about that.
I don’t want you to be just risky and real estate investing. I want you to have calculated the risk to where it’s intelligent when I bought it.
When I get involved in the deal, there are multiple ways for making money on those deals.
So there’s a way to mitigate the risk.
I take the risk down just by simply understanding number two money. I don’t have enough money. I don’t have five hundred thousand dollars to put down to five hundred thousand dollar property.
That’s okay, build ships, and you can do that. So, even though I’m talking about cons, all of these cons, you have a way out of them.
Number two. What about finding deals? I don’t know if I can find any deals out there.
Hey, go to Craigslist, go on Zillow. There’s always deals.
They’re, the key is negotiation, there’s competition out there, but learn to build relationships and negotiate. You won’t have a problem.
So those are the cons. So what’s the pros?
Number one is leverage. If I put a thousand dollars or five thousand dollars into the stock market. I don’t know what’s going to happen to it. It may go up. They go down.
I put in crypto currency, may go up and they go down. I have no control over it.
So, number one, you have control over it. How do you take care of risk? You have better control over something.
Number two is leverage that five thousand dollars that you take and you put in the stock market.
If you put it into a business deal, you put it into real estate investing. You can leverage that to offset a huge property so that five thousand dollars May control a hundred thousand dollar property.
Let’s say that I have a hundred thousand dollars.
If I want about one property for a hundred thousand dollars, which may or may not exist in your area. But if I did, I would only control one property.
However, if I was smart and understood real estate investing, I’m gonna take that. I’m going to Bunch it into ten. Ten thousand dollar chunks or maybe 20,000 chunks. And now I’m going to buy five houses.
So now that hundred thousand dollars is going to leverage you to impact five hundred thousand dollars worth of value. You follow that, that’s leverage.
That’s one of the pros of real estate investing.
Number two is the money. Once you understand, how to use your knowledge and skill sets.
You can have multiple deals and you start getting passive income.
So you will have rentals or maybe you’ll do notes or something like that and those become passive. You’re not working all the time for those deals.You’re not always chasing the deal.
That’s the key. And the third tip for real estate.
Investing, for the pros, is everybody needs a place to live.
Think about that. You’re going to be in a market. That’s always got a supply.
Now the prices may go up or down, but ultimately people will always need a place to stay and prices will generally in a real estate investing market, will generally go up unless some major crash happens in a specific Community, but overall, if you look at the house, the prices of houses that used to sell for 15 and 20,000.
Now, they’re selling for 150 and 200,000 and 500,000 and it’s a consistently beneficial thing.
So there’s four ways of making money in real estate.
Think about it. I can leverage my appreciation. It’s growing in value. So I have more equity in the property.
I can leverage depreciation.
I can offset some money on my taxes.
I can leverage lots of different things if I understand how to get involved correctly.
So I’d love to introduce you, to the community, to an education system that we can help you out with in all the different areas.
The community will help you get a foundation for your knowledge. Education will help. You understand the different leverage points.
If you need anything like that, give me a call and contact me. Visit dfwtop.com/schedule, schedule a time with me. I love just having one on one conversation.
Do you want to get started in real estate investing? Are you scared to?
Let’s have a conversation.
Do you want to get started?
You want to make a ton of money?
Let’s have that conversation.
Now, if you’re out there for a get rich quick scheme, you just lost the point, but our goal is to help you get started in real estate investing in business as a business so that you can make money.
Not just during deals, but between deals, so I’d love to talk to you more.
I’m Lyle Leads, go to DFWTOP.com/schedule, and I’d love to talk to you.
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