How to Create Wealth
With Real Estate
by Sonia L. Booker
How to get started investing in real estate?
I am often asked this question, which is one of the reasons that I wrote the book Real Estate and Wealth: Investing in the American Dream. I don’t feel wealth should be out of the reach for anyone who is willing to put forth the extra time and commitment to making it happen. Whether you are purchasing real estate to live in or as a source of wealth building you should view this purchase as an INVESTMENT! In most cases this is the biggest investment that some people will ever make in their lifetime, yet it is entered into very trivially.
Five things to consider prior to beginning to invest in real estate:
1) Be clear about your purpose
What is your main purpose for investing in real estate? Are you looking to make extra monthly income, secure your retirement, build your child’s education fund or build long-term wealth. These are some of the main reasons people invest in real estate and you should be perfectly clear about what you want to accomplish.
2) Formulate a plan
Write the vision and make it plain! This plan should drive all of your decisions as it relates to your extra time and extra money. Once you take time to write this plan it will be equally as important to stick with it. This step is the most logical yet it is the most missed step by many and when you fail to plan you plan to fail.
3) Be realistic
If you don’t set realistic goals, you will become frustrated with the entire process. Investing in real estate is very challenging and most people make the mistake of working a plan that does not fit what they can realistically accomplish. For example, if you work full-time you know you will have limited time to work at investing in real estate.
4) Check your purchasing status
This part should be easy once you have discovered “why” you want to invest, now you just have to get the “how” part in place. First have your credit report pulled from all three bureaus and immediately begin to work on cleaning up any derogatory or incorrectly reported items. Secondly, you want to take an inventory of how much money you currently have on hand, this can consist of savings, 401K, mutual funds and any other monies that may be available to you. Partnering is a great way to invest in real estate and the rewards can be just as great. Nowadays, there are so many creative financing options to approach investing in real estate, so please don’t let your credit status or your perceived lack of cash effect your decision to begin investing in real estate.
Begin to educate yourself in this area by reading as much material that you can get your hands on. Education is power and the more you know for yourself the more comfortable you will feel with the process.
Remember we are all given the ability to produce wealth!