Real Estate Speculation
Rookie Real Estate Investors Nightmare
Investing in Real Estate can be very lucrative provided you are well informed being. Instead people intend to follow the rat race. When market is going up, everyone likes to jump in not knowing where they are going. Ignoring the basics and fundamentals can lead you to lose it all propositions. Quick bucks in Real estate have created more bankruptcies than millionaires. Whenever there is a boom in Real Estate it is due to high demand and very low supply. When supply catches up to it or supply can be surplus the boom turns into bust. There is no exact science to figure out the boom and bust cycle.
What is the secret of Massive income in Real Estate investments?
Buy and hold for long term is the right answer. Building up the equity and appreciation can make you extremely wealthy. No matter where the economic cycle is spinning.
But there are other options available which include wholesaling, lease option also known as Rent-to-own. You need to have proper education before you implement them.
Why not speculate in Real Estate?
Because everyone you know is jumping in with both feet in it is like you will miss the big gold rush if you miss it. For some it is now or never. Greed always kicks in. Then you are greed driven. Every boom ends up busting and aftermath is disaster. Why play with the fire when you know that you will get burned.
The truth will surface after the market start slowing down. Everyone have too much in their plate and now the nightmare begins. Your got assets you do not need and can afford. Liability is lot more higher than ever before.
Would you like to become a speculator? Perhaps, NOT?
So you can tell speculation can back fire big time. History teaches you after the boom the bust can be extremely very ugly. Bankruptcies to broken families to homeless and it can be very horrifying experience.
So what to do if not speculating in Real Estate?
Real Estate is the largest investment in your life. This is only investment which can be leveraged to 100% as well. Once you are in for long term then it can be totally profitable.
But this is NOT only way!
There are certain basic rules one have to follow. If you are going to be investing in Real Estate, it will be highly recommended to invest in getting basic Real Estate investment education as well as doing due diligence. Greed and Fear are the silent killers in everything in life that includes real estate as well.
Getting info from people who are not professionals can be devastating. My next door neighbour decided to buy brand new three houses because his colleague at work was excited about making killing in Real estate speculation. Not knowing all the facts, GREED took over his thought process. Herd mentality did its own magic.
My neighbour went to his Bank, financed his house up to the hilt and borrowed the maximum money he can and start putting deposits all brand new condos. By the time condos got ready, Market crashed. Now those condos have lot less value than what he paid for and his own house price also dropped drastically.
Now he owns his house, has more money owing than its current market value and have all kind of liabilities to close 3 condos he bought. Bottom line, he end up filing bankruptcy and lifelong savings and his own house is gone.
What is the moral of the story?
Real Estate speculation is like playing with bare naked hands and hoping not to get burned. Only magicians can perform tricks as illusion only. The real life lesson can be very expensive compare to education.
World Wealth Builders offers many unique, practical, out of the box real estate investor apprenticeship which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. You can attend Real Estate Millionaire Apprenticeship . To find out more, please go to www.WorldWealthBuilders.com/live.html
The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case
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