In Episode 10 of the #EverythingMoney Show, we cover one of the sexiest topics in all of business and finance… Real Estate.
There’s just something about real estate that feels sexy. Everyone wants to be involved with it in some way or another, but most people don’t even understand the basics behind the most popular form of investing in human history.
Real Estate Basics
The first thing that we need to know is that there are 3 general types of real estate properties:
- Commercial Real Estate – Malls, Office Buildings, etc.
- Residential Real Estate – Houses, Condos, Apartment Buildings, etc.
- Land – For the Development of Either Type Above
No matter what you do, you will end up with one of these 3 categories of real estate.
The second thing that we need to think about is the 2 general categories of real estate investing:
- Buy to Hold (For Income or to Live In)
- Buy to Sell / Flip
No matter what you choose to do with real estate, you’re going to fall into one of the above stated categories.
Things to Know Before Buying Real Estate
Believe it or not, there are recognizable characteristics to both good and bad real estate investing.
Bad Real Estate Investing
- Not doing your homework and due diligence
- Not shopping around for the best brokers, lending officers, and deals
- Spreading your finances too thin – not having enough liquid capital
- Thinking that you can get something for nothing – greed
Good Real Estate Investing
- Doing your homework and due diligence
- Shopping around for the best brokers, lending officers, and deals
- Being cash heavy – having more than enough liquid capital to make comfortable decisions
- Wanting to always be involved in Win-Win deals