Choosing where to start investing

So you decided to become an investor. Or to be more precise you want your money to work for you instead of the other way around. Great! So you think that real estate is the way to go, and I would agree with you. You see, population grows, but the continents don’t. So we have a situation where supply is limited and demand is growing constantly, which means that over time all real estate will appreciate which means that no matter what you do, you will come on top, if you wait long enough.

Now that we agree that the real estate is definitely worth investing into, let’s pick which path in real estate investing YOU want to choose. There is uncountable number of wait to invest, each with different rewards, involvement levels and activities required. You have to ask yourself what are your investing goals and how much time you can dedicate for your investment carrier.

If your goal is to quit your day job and to support you and your family form real estate investing you must choose different path then if your goal is to accumulate enough for your retirement and cut down on the amount of taxes you pay Uncle Sam each year. Buying and renting a house or two a year will not produce enough income to support you first five to ten years and buying and selling will do nothing but increase your tax footprint. Buying and renting homes will require less time and day to day involvement from you the buying and selling homes.

So think about your goals for a moment and write them down. Those must be concrete and achievable goals like “I want o have 10 rental houses in 10 years free and clear” or “I want to become a full time real estate investor in 1 year”. If you do not write down you goals the are just thoughts, so write them down and work on the plan how to achieve those goals.

You have chosen your path. Now you have to walk it.