Real Estate Investment Revisited

08/09/2003

Over the last year or so and particularly during recent months I’ve noticed an increasing number of people inquiring about real estate investment properties and it’s left me wondering if some people have just given up on the mutual fund/stock market thing.

I remember about seven or eight years ago the local real estate board hosted a seminar dealing with the future of real estate. The idea was to give us Realtors some hope and maybe a glimpse of light at the end of the tunnel as the real estate market along with the general economy were both in the toilet (as you may recall). The speaker echoed a prediction I had heard before. The stock market would grow in strength over the immediate years to come and with it, establish mutual funds as the clear investment of choice for the bulk of the middle class. Obviously, that part of the prediction was right on. He went on to say, however, that in about ten (ish) years from then, the romance would be over and mutual funds would give way to real estate as the investment of choice.

Now clearly, mutual funds are far from dead and gone and I’m quite sure they are here to stay, but even as we emerge from the recent stock market downturn some people including myself have been re-thinking their investment strategy. Hence the flood of interested investment buyers.

As a result of this influx of would be real estate investors, I’ve spent much of my time counseling, guiding and creating investment plans for people. The number one thing to remember if you’re thinking of real estate as an investment is – you’ve got to have a plan! I can’t stress this enough. When people come to me and want to invest in real estate, the very last thing we do is look at property. The first month or two is about assessing your needs and completing the prescribed readings. If you’re serious about creating wealth in real estate you’ll take the time to learn about your options, develop your investment attitude and a plan that is right for you. Then and only then will we go looking. It’s a strategy that has worked for thousands of people, not just my clients.

The greatest thing about real estate investment is that you are in control of your money and your financial future. Real estate is something that is easy to understand if you take the time. It’s real - you can leverage it like no other investment - banks love to loan you money on it - and with a little elbow grease, ingenuity or strategic planning you can increase the value by thousands of dollars.

Real Estate Investment isn’t for everyone, but if your looking for an investment vehicle to that is not only exciting but puts you in the driver’s seat, I know of no anything better.

Till next month this is Rob Thompson saying, “Good Luck and Good Selling!”

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