Most people become active participants of Real Estate Investing because they want to take control of their lives, and they believe that the level of control they want cannot be acquired by working for someone else. Mainly, they want to take control of their own income and time. They don’t want to have to rely on strictly one pay check; an income source that is controlled by their governing employer. They have an innate desire for multiple sources of income. Real Estate Investing is an opportunity for them to leverage that sincere desire to achieve and obtain a diversified income stream.
In short, they want financial independence, independence that, they believe, will translate to other important areas of their lives. Whether to simply have a stable income through being a landlord, or attaining Donald Trump status as a real estate mogul, it seems evident that the keys to success lay in learning all there is to learn about real estate investing, and attaining personal habits and a strong mental approach that will reap real rewards.
According to Timothy Spangler, in his book From The Rat Race to Real Estate, strong personal habits include being organized, setting goals, and improving your mental attitude: having a more positive attitude about your possibilities in life. Also, practical endeavors such as improving your credit score via paying off your debts will put you in good shape to succeed at real estate investing.
Being a real estate investor means becoming an entrepreneur, a, a person who is willing to take some risks, a person who is not willing to remain in a safe but non-fulfilling job. Taking risks is always about overcoming fears. There are different levels of risks and fears-usually a rise in the level of one will increase the level of the other. Going outside to your car on any particular day will not cause much fear because the risk is not that high. You might get hit on the head by a piano, but that probability is rather low.
On the other hand, a lion tamer has the distinct possibility of serious injury, so he has some real fears to overcome. The best way he can overcome his fears is by taking as much of the unknown about lion taming out of the equation as he can. This might involve learning all he can about lions and their habits, or, learning the proper way to approach a lion. Similarly, fears about real estate investing can be alleviated by extensively studying real estate investing, and learning the appropriate techniques for the task.
Actually, when you look closely, an investment in real estate is less risky than other investments such as investing in the stock market. Many different variables affect the stock market: political turmoil, the weather, the fluctuation in price of commodities such as oil. A parcel of real estate, however, usually appreciates in value over time, making it a solid investment. Of course, the profit margin will vary according the skill, knowledge and experience of the investor, and the type of investor he/she is: such as a landlord or a house flipper.
So, with the right approach, habits, knowledge, and general fortitude, real estate investing could be a real alternative to many people. Although when defined as a “get rich scheme”, it may not work too well, it is possible to become wealthy from real estate investing. The benefits outweigh the risks by a considerable margin. the arden