How to Get Started Investing

Some of my favorite books are "how to" Real Estate Stategies because I do like to see the different ideas out there for investing and making money. I mean everyone is interested in learning how to take that million dollar idea and turn it into their own reality....

Many of the books you read these days are investment stories of people making millions in real estate, even if you are just starting out. In fact, real estate is a great investment vehicle because real estate offers more security than the stock market, provides great potential returns, and offers tax benefits.

One of the challenges that many potential investors are faced with is putting up the money to acquire a piece of property. Although in reality this is usually not the biggest obstacle. You might say "Hey, what do you mean, not an obstacle. I would love to invest in real estate, but I just can't afford to!"

The point is that hardly anyone who buys a piece of real estate has enough money in their account to pay for it. That's where your banker comes in.

Let's face it.

Do you know anyone that owns their own home?

I mean truly own it? Probably not.

Sure, you know a lot of people that have a house to their name, but wait until they get behind on their monthly mortgage payments and you will soon find out who really owns their house. That's right, the bank.

So if these people can use the bank's money to buy a house, why can't you?

Now 'owning' your own home may sound like a somewhat obvious way to get started in real estate, but it is also a very good way to do so.

You might say "Duh..." But apparently this little step is overlooked by a lot of people.

Just take a look at how many people are still renting a property instead of buying one. Now of course the relation between rent- and housing prices varies from country to country and even from area to area. But wherever you go you will find that it's fairly easy to find people renting, because in their mind "they don't have enough money to buy a house", when in reality they would be cheaper off 'owning' their own place.

When you rent, you are pretty much flushing your money down the toilet. Of course you are getting the pleasure of living, but the point is you're not building anything long term. Every dollar you spend on rent is a dollar you will never see again.

If you own your own home, instead of paying rent you would be paying for your mortgage. Even though there is a lot of variety in mortgages these days, the basics of practically all mortgages are more or less the same.

Every month you make a payment which consists of two parts: interest and principle. The interest part can be compared to rent. Those dollars are gone with the wind and you will never hear from them again. However, the part of the payment that goes to the principle is money you keep. Every dollar that is used to pay off the principal is a dollar you put in your own pocket.

So if you're thinking about getting started in real estate and you don't 'own' your own house yet... Change it, and get some experience.

It's a great first step towards building your capital and in many cases, it just makes more sense financially. It can also supply a range of opportunities for accelerating the process of building your net worth.

When real estate prices go up, so does the value of your property and your net worth. Whereas the money you owe the bank, your mortgage, remains the same.

Compare this to people that are paying rent...

Their net worth does nothing. However their landlord's net worth is doing very nicely in this scenario and he or she will probably love you for it. So if you get a warm fuzzy feeling about making somebody else rich at your own expense... Keep renting. If you would rather build your own capital instead... Buy your own house!

Now before you go out and buy the first property you lay eyes on, know real estate prices do not always go up, and certainly not in a straight line. Yep, this can be shocker to some people, as well as an ugly reminder for those who overlooked this minor detail in the past.

If for some reason you would have to sell your home in a down market, it can be a costly adventure. You wouldn't be the first to end up with a house worth considerably less than the mortgage resting on it. So make sure to keep some slack.

In the long run real estate prices have always been on the rise, but in any cycle there are down periods. By keeping some slack and being patient you will be able to sit through these times and profit from the long term up-trend....

Now that I got you thinking, check out one great way to get started in Real Estate Stategies

Here's to working towards your first million dollar investment...

Jennifer Schilling