Ways to Win in Long-Term Real Estate Investing
Weve done a lot of talking about all the bad things that can happen in long-term real estate investing
. In fact, reading over this lesson series, Im starting to feel a little negative. That concerns me, because Im afraid that Ive gotten so involved in strategies for turning failure into success when youre involved in long-term real estate investing that Ive neglected to talk about the major successes that you can and should experience when you get involved in long-term real estate investing.
So lets take a minute to accentuate the positive.
Ive seen a lot of successes in long-term real estate investing, and one of the reasons that this is one of my favorite strategies is because in a lot of ways, its hard to really lose when you get involved in this type of real estate. Here is my favorite success scenario:
You decide to invest in some real estate for the long term. You evaluate a number of properties, and eventually settle on one that appears to have a lot of potential in terms of location, flexible use and design. At first, you focus on finding some tenants for the property so that you can get that bill off your desk after all, why pay the mortgage yourself when someone else will thank you for letting them pay it for you? Once you find some good tenants, you install them in the property and start putting the money you are saving by renting the house to them away in case of emergencies. This is stage one of winning in long-term real estate investing.
Over the years, you track the progress of your investment. Your tenants come and go, and eventually you hit a spell where you have trouble finding tenants for your property. (Dont worry, this happens to everyone every once in a while, and that is why you saved up some money while they were in there!). Since the property is empty anyway, you take the opportunity to check out local values of competing real estate and spot some small things that you could do to update the property and make it more attractive. You make these adjustments and take the economic benefits that come with them thanks to incentives provided by the local government and soon find a new tenant at a higher rental rate. You attract that tenant with a lease-option transaction, but, as often happens, the tenant ultimately decides to move out after 3 years instead of make the purchase. So you still have the property just like you wanted and it has been well-maintained because that tenant looked at the house as his own.
Finally, after about 20 years, you think the time has come to sell. You picked a good area with good schools, and it is easy to find a buyer because the property has been well-maintained and has a number of desirable amenities and eco-friendly adjustments that keep the utilities down. You sell, and take your money happily to the bank.
As you can see, that scenario had the potential for trouble any number of places. However, with careful planning you avoided all of those problems and ultimately walked away a winner with money in your pocket. Thanks to the duration of long-term real estate investments, this is one of the best areas in which to be creative and flexible, and there were always multiple options available to you because you picked a good property to work with and prepared for the best and the worst. As you can see, comprehensive planning yields wins nearly every time. Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit
www.CoachingByPeter.com. Ways to Win in Long-Term Real Estate Investing
By: Peter V
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