How To Gain Education In Real Estate Investment
Posted on November 27, 2008
Filed Under real estate foreclosure investment |
One of the things that keep many people from getting started in real estate investing is the lack of education available on the topic.
There are many people who have an interest but cannot find sufficient education in real estate investing. For some having this education is a must.
People have been trained to think that formal education is needed for something you plan to make into a career. However, formal education in real estate investing is not needed for one to be successful.
There are plenty of resources available that provide sufficient education in real estate investing. Most of the investors who have become successful did so through trial and error.
Of course you don’t want to send precious time and money going though this kind of process when there is education in real estate investing available. Similarly, you don’t have to go through a stringent education process to learn what you need to know to be successful.
Some of the unconventional methods of education in real estate investing have created the most successful people in the real estate investing area. You’d be surprised at just how much you can learn from a website, video, or even a book – Please see the link at the bottom of this article to download a free real estate profits ebook.
This kind of material is written by people who have experience in real estate investing and is comparable to any education in real estate investing you would get from a school, university, or even a training seminar.
The real estate investing process is such that anyone with a capacity and willingness to learn can grasp the theories that surround the business.
Why would anyone spend hard earned dollars on formal education in real estate investing, when they can spend considerably less on other methods of education?
In real estate transactions neither the buyers nor the sellers are concerned about what kind of diploma or certification you have for dealing with real estate.
This is not to say that you should be worried about getting education in real estate investing at all. Instead, it is further reasoning that you should not place extreme emphasis on getting a formal education in real estate investing.
Not only are the people you work with on real estate transactions not phased by your level of education in real estate investing, they, themselves, most likely do not have a university level of training in the area.
If the people you work with are not concerned about your education in real estate investing, neither do they have this education themselves, it should be less important for you to have a formal education in real estate investing.
Self education in real estate investing is the most valuable kind of education you can get. You will receive a greater return on investing when you educate yourself than had you spent thousands of dollars for a training or seminar. You can easily educate yourself by reading books and websites on the subject. There is a great amount of knowledge out there, it is up to you to locate and use it.
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8 Responses to “How To Gain Education In Real Estate Investment”
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Is real estate really the the best investment?
For a $100,000 investment money and 8 to10 year time horizon, is it better to buy 2 houses in Houston (each at 20% down) or a S&P index fund is a better alternative?
The gain from the investmnet will be needed for children's college education after 10 years.
After what happened in the stock market, it makes most people wonder if they can count on the money to grow even in a 8 to10 year period. I know that managing rental investment is no fun but one would make money (at least won't lose principal) over 8-10 year time horizon.
I know there are tons of books that say real estate is the best investment. But is it really? specially for the middle class.
Are there any other investments (passive) ideas to get 8-10 % annual return over a 10 year period?
Stop thinking about alternatives. Real estate and stocks (and bonds, I might add) work best TOGETHER.
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It's so har dot predict what will happen to real estate and the stock market over a 8-10 year period so I'm not even going to attempt to answer that quesiton for you. However, one thing I can say is that If you decide to invest in real estate and rent out the condo's/room/or house. Make sure that your rental income can cover all of your expenses (monthly mortgage payments). Otherwise I would not think it is a wise investment.
The stock market is toppy right now so 1 could say it's due a retracement but who knows in 8-10 years time where the DJIA would be.
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For $100,000 you would be better off diversifying a portfolio using ETF's, Mutual Funds or even assorted Trusts (Real estate, Oil, etc…).
An 8 to 10% return is not unheard of just do your homework on what you think the future holds for the markets.
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land better.
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8-10% is a difficult compounded return to earn. Real Estate is one of the most overrated investments available. The commonly quoted claims about RE prices never having a losing year are grossly misleading.
1. They have a HUGE survivorship bias in that the houses that don't sell are not figured into the median price. So, if 5 houses are for sale and only one sells, only that price is used.
2. They do not factor in quality. The typical new home is 25% bigger and has more amenities than a home 20 years ago, yet the prices are compared without adjustment.
3. They do not factor in inflation.
Housing prices have risen sharply over the past decade, but adjusted for inflation and quality, home prices barely moved between the 1890's and the 1990's.
People also forget, when bragging on how much they made on a home, improvements, fees, financing, upkeep, property tax, etc.
ssb
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Real Estate can be a better investment when it is your primary residence. Other than that, I think a divesified portfolio of stocks, bonds, and some alternative investments (hedge funds, REITs, etc…) beats real estate. When you add together interest, upkeep, property taxes, improvements, etc… you're putting a lot more into the real estate than the $100,000 that you think you are.
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"Won't lose principal"? Don't bet on it. Houston has been through jingle mail in the past & could come again. Tons of books say stocks are best too. Can have a good reit section in your portfolio if like RE but stocks more likely to come through if portfolio done right. Market was 700 in 1981. Don't forget how much that market has made as well as RE. Both can go down from time to time. RE could be very illiquid at the time you need to sell. That would be the worst -case scenario.
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degree in Finance+ 27 yrs investing