FAQs – Real Estate Investing

Here are some Frequently Asked Questions about Real Estate Investing along with my answers. I hope this help you…

Q.  Does real estate investing still work or is it past its prime?

A.  Yes it absolutely still works. People still need a place to live so they are looking for houses to buy and to rent. The truth is that the markets change some times it is a sellers’ market; sometimes a buyers market; and sometime it is a balanced market. What you have to remember is that ALL markets are investor markets if you simply adjust your strategy to fit the market place.

There are always homeowners in distressed situations that need to get out from under the burden of owning their home – that’s where we come in and make a deal that works for all parties. It will also help to keep this in the back of your mind: while YOU may have been reading and learning about real estate investing for years, motivated sellers have not. This is all brand new to them and they will call you if you market properly.

 

Q.  Can you really get rich investing in real estate?

A.  I’m sure that you have heard at some point that some of the richest people in America did so through real estate; and that nothing has created as many millionaires as real estate. Frankly, who cares about all of those people. The real question is can YOU get rich in real estate. The answer is: I don’t know.

The opportunity to become rich is certainly available. Whether you are willing to work at it and overcome obstacles is the unknown for me. You can make an obscene amount of money if you are willing to learn and to do what it takes (and it doesn’t take a lot). If, however, you want to sit back and do nothing, then No, you will not get rich. If you are looking to become an overnight millionaire – it is highly unlikely. But if you are willing to put out some effort and give it a little time, real estate investing (REI) will make you very well off – even RICH.

 

Q.  Do you really need No Money?

A.  It is true that you can buy a house and pay for all of the repairs using none of your own money or credit. This is a business, though, and you will need to have some money to operate your business. You just don’t need to tens of thousands to hundreds of thousands needed for most businesses.

Q. What is the best strategy to follow?

A.  It depends on your strengths & weaknesses; goals and objectives; experience & resources. I like my clients to have a 3 prong attack. Wholesaling for regular recurring income; rehabs for large cash deposits through the year; and rentals for retirement wealth. There is no one best strategy. You must understand the pros and cons of each strategy and select the one that makes sense for you at any given point in your life.

One size does not fit all, so don’t allow others to just tell you what to do. Evaluate the options and select what is best for you.

 

Q.  How can I be certain I won’t lose money?

A.  You can’t be certain. It is a business and there are inherent risks and rewards. What you do is understand the business and take the steps to mitigate the risk; and luckily in this business that is pretty easy since there is so much information available about house sales and values. You might still make a mistake and lose some money. Consider that a learning opportunity. Pick yourself up and dust yourself off. Learn from what happened and go make a lot for money and make up for the loss.

Investors call me all the time for advice relaying a story of how they lost money and what should they do. My response is let’s make more money so you can recoup your loss and forget about it.

Actually, I don’t think there is any way to be certain you won’t lose money. I had $200 in my pocket one evening. It was on my person. I was protecting it. And when I reached in my pocket to retrieve it, the money was gone. It had fallen out of my pocket. I would have rather bet that money in Vegas.

Don’t allow fear to stop you from progressing. Learn the principles and how to invest correctly and then go out and make it happen. If eventually you lose a little, just move on and make it all back!

 

I hope this answered some of your questions. I’ll do another round of FAQs soon.

In the meantime, send me your questions. I always want to hear from you.

 

Expect abundance,

Lou Castillo

 

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