The combination of a consistent flow, appreciation, and federal tax breaks are the major reasons why many people begin their real estate investing journey. Specifically, profitable real estate investing has helped many people generate substantial wealth and stable retirement income.
Most individuals do not recognize that investing in real estate is a process. A profitable real estate investing career does not just happen overnight. Most people mistakenly focus solely on end results without understanding the entire process. Sometimes, they erroneously assume the investors are just lucky. However, successful real estate investing comes down to more than just luck.
Someone who has actually started their very own real estate investing career knows that successful investors use a combination of their experience, knowledge, and skills to generate profits and find profitable deals. While it is true that some investors have developed a knack for finding great deals. This is typically a result of years of real estate investing experience. Specifically, these investors learned how and where to go to find good deals in their market.
Ken McElroy, the author of “The ABCs of Spending,” one of the Rich Dad book series, held that you will begin to see patterns and trends if you start doing what investors do. You can use those patterns and trends to establish your own investment strategy. Being prepared, especially as it pertains to real estate investing, is the best strategy to ensure long-term wealth.
However, some individuals do not understand or even want to accept this theory. Those individuals tend to be dreamers who are attracted and sometimes lose their money through get rich schemes. They mistakenly assume that some magical force is at work that makes some investors more successful than others, instead of accepting the fact that some investors just work harder. McElroy claims that some individuals simply do not have the drive or desire to do the job. These people have a tendency to be dreamers who refuse to change their way of thinking.
Nevertheless, if you have the desire to do the work and all you need is the right information, then there is hope for you. McElroy states that these are the kinds of people he created “The ABCs of Spending” for.
In other places in the Rich Dad collection, Robert Kiyosaki, the founder of the series, claimed that individuals who lose a lot of money in real estate are commonly the ones who enter the field without first putting in the time to educate themselves. They are simply uneducated about the process. Going into real estate investing without adequate education will cost you a great deal of cash in the long run.
Yet if you take it gradually and are conservative, and allow yourself to make some mistakes, over time, you will start to develop an expertise. You will certainly begin to see just how everything meshes together, and you will eventually begin making money.
With that being said, if you want to get started in real estate, choose your strategy. Become an expert in your strategy by studying and connecting with other investors and mentors in your network, and never stop learning.
There are countless ways that investors can start their real estate journey. There’s no single best way to do so profitably. It really comes down to being educated about the process and then finding a strategy that fits your goals and risk tolerance.
If you’re prepared to do the work and have the right mindset, you are well on your way to a successful real estate career.