Achieving and having success isn't mutually exclusive to high-income earners or those that have earned multiple graduate degrees and/or occupational licensure. Success is rather an equal opportunity dispenser and is not exclusively defined by how much money one makes or what title you hold. On the other hand, making an above average amount of money gives people the opportunity to more generously provide for their kids, be it paying for a college education to buying a new or used car for one's child so that child may hold a part time job for example. More money, especially when it is successfully earned through real estate investments, can supplement a comfortable retirement, a second home, long-awaited travel opportunities, or simply a host of other options not attainable if money is not saved and readily available. Other benefits of having disposable income include providing for one's parents comfortably as they age-who may require surroundings that are more medically intensive-and expensive.
All the latter can be provided depending upon the financial decisions we make and at what age we make them. In other words, I'm not suggesting a sixty-five-year-old deplete half of his or her 401(K) retirement earnings and start flipping properties. What I'm saying is take a measured look at where you are in your life financially, and see if real estate flipping fits into your asset allocation. And for the record, the IRS does in fact allow 401(K) withdrawals for the purpose of real estate investing.
To be brief, whether you're twenty-two or seventy-two years old, some form of moderation is ideal for real estate investing. With non-owner occupied loans that are available out there that require 0 to 10 percent down, minimizing one's risk is the paradigm of new tract flipping and can work, and also be a prudent investment strategy. So with the opportunity to leverage with very little down, real estate flipping should be of consideration. Don't be side tracked by the "haters" and "naysayers" that aren't out there making a killing like those investors flipping one to two deals a year. Remember, the investment flip model is quite simple. Do your research, check your cash reserves for adequacy, put your flip property under contract, minimize your cost outlays, get a good loan, close the property, and flip the son of a bitch ASAP!
Now was that very difficult? Absolutely not. Just make sure you don't do anything dumb and get "stuck in stupid" and go out and buy nine condos thinking you're gonna be the next condo king or, for that matter, buy that second home you can't really afford, or that new fifty-five-foot, $125,000 Excalibur RV that you just paid for in all cash. Depending upon your liquidity reserve ratios, the latter expenditures would be bad decisions and would severely restrict your ability to buy real estate in a prudent manner. Hence, when you get to your checklist on real estate, asset allocation reserves are always important, and deviating from this critical tenant is a recipe for trouble. In closing, and please remember, on each flip you do, get in, get out, and don't look back, and if you happen to see a laggard in your peripheral vision, sprint for the hills no matter how steep of an incline. If you follow that simple dictate, you'll be smiling all the way to the bank.
All the latter can be provided depending upon the financial decisions we make and at what age we make them. In other words, I'm not suggesting a sixty-five-year-old deplete half of his or her 401(K) retirement earnings and start flipping properties. What I'm saying is take a measured look at where you are in your life financially, and see if real estate flipping fits into your asset allocation. And for the record, the IRS does in fact allow 401(K) withdrawals for the purpose of real estate investing.
To be brief, whether you're twenty-two or seventy-two years old, some form of moderation is ideal for real estate investing. With non-owner occupied loans that are available out there that require 0 to 10 percent down, minimizing one's risk is the paradigm of new tract flipping and can work, and also be a prudent investment strategy. So with the opportunity to leverage with very little down, real estate flipping should be of consideration. Don't be side tracked by the "haters" and "naysayers" that aren't out there making a killing like those investors flipping one to two deals a year. Remember, the investment flip model is quite simple. Do your research, check your cash reserves for adequacy, put your flip property under contract, minimize your cost outlays, get a good loan, close the property, and flip the son of a bitch ASAP!
Now was that very difficult? Absolutely not. Just make sure you don't do anything dumb and get "stuck in stupid" and go out and buy nine condos thinking you're gonna be the next condo king or, for that matter, buy that second home you can't really afford, or that new fifty-five-foot, $125,000 Excalibur RV that you just paid for in all cash. Depending upon your liquidity reserve ratios, the latter expenditures would be bad decisions and would severely restrict your ability to buy real estate in a prudent manner. Hence, when you get to your checklist on real estate, asset allocation reserves are always important, and deviating from this critical tenant is a recipe for trouble. In closing, and please remember, on each flip you do, get in, get out, and don't look back, and if you happen to see a laggard in your peripheral vision, sprint for the hills no matter how steep of an incline. If you follow that simple dictate, you'll be smiling all the way to the bank.
Courtesy By :- http://ezinearticles.com/?Getting-or-Not-Getting-Into-the-Real-Estate-Market&id=9227558
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