Posted by Doug Pretorius on April 12, 2000 at 23:28:44:
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Looking for advice - Posted by Aaron in Florida
Posted by Aaron in Florida on April 12, 2000 at 10:03:16:
I am just finishing up the Carlton Sheets course and ready to go out on my own. I’m not sure if I should focus mainly on rental properties or try to flip some properties. I’m not much of a handy man, although I’m sure I can hire someone for any kind of labor, its just a matter of the cost. From reading different entries on this site and others, I’ve heard a lot of bad things about being a landlord, unclogging toilets at 2 A.M. and so on.
I have also thought about doing a little bit of both and see which works out better. Does anyone have any advice on where I should go from here.
Any responses would be greatly appreciated!
Thanks and good luck.
Re: Looking for advice - Posted by Doug Pretorius
Posted by Doug Pretorius on April 12, 2000 at 23:50:26:
I should add that there are basicly 4 things REI can do for you:
- Provide cashflow (lease, note, etc.)
- Provide a lump sum payment (flip, option assignment etc.)
- Appreciate (increase in value.)
- Depreciate (tax write-off.)
(Of course there are negatives too, but we’ll focus on the things that can help you instead.)
From what I’ve heard (I’m in Canada, so things are a little different) the tax benefits of real estate don’t seem to effect your ultimate goals, so we won’t bother with depreciation.
Appreciation is great and has been an almost constant feature in the RE market. Unless you’re in a very hot market though, you better be willing to wait around 20-30 years before you can call yourself ‘rich’ (and that’s assuming you bought many properties.)
Lump sums can be something of a double-edged sword. They could be put to good use as a quick means of purchasing cashflows that you wouldn’t be able to get on creative terms (that usually means a larger cashflow.) But it can be all too easy to look at that fat wad of cash in your hand and say: “Ya know, I really need a new car…”
Cashflow. The ‘secret’ of the rich. Work once, get paid again and again and again. Any particular cashflow may not seem like much ($100 from a note, $200 from a rental…) and indeed would require many years with traditional investment strategies. But wield a few creative techniques around, and before you know it you have 50 of those ‘measly’ cashflows coming in each and every month!
Re: Looking for advice - Posted by Doug Pretorius
Posted by Doug Pretorius on April 12, 2000 at 12:43:58:
Take a look at www.mrlandlord.com for information on landlording.
My advice is to read more. I’m glad I didn’t start investing after I completed Sheets’ course.
I suggest picking an area you want to pursue (e.g. mobile homes, lease/options, flipping etc.) and get a book/course specifically on that.
If you were to jump into any of these areas with only what Carleton tells you, you may very well spend more than you need or make less than you could.
Finally, read Robert Kiyosaki’s books (if you haven’t already) and decide what you want to achieve, then use the REI niche you are most comfortable with that will help you accomplish your objectives.
