Tomorrow, Friday October 11th, the next book in my Doctors Guide series becomes available on Amazon.
If you have wanted to get into real estate investing, but think you are too busy, think again. I spell out how I was able to be the manager of 64 rental units at the same time as I ran a busy full-time surgical practice. But you don’t have to be the manager like I did. You can hire management and make your real estate investing 100% passive, like mine is now. We all could use some passive income.
The following is an excerpt about why it is always a good time to buy real estate.
It Is Always a Good Time to Buy Real Estate
I left my 20-year general surgical practice at age 51, only 12 years after buying my first apartment complex. By then, my real estate investments were producing more passive income than I was spending. I no longer needed to work. During those 12 years of real estate investing, utilizing about 10-15 hours a month of my time, I was able to create more wealth and passive income than I had in 20 years of investing my surgical income. In fact, only a few years after my first apartment purchase, I noticed I was building more wealth in real estate each year than I was earning as a full-time surgeon……
A lot of people ask me if I think now is the right time to buy investment real estate. The answer to that question is always YES! You see, it is always a good time to buy investment real estate. It might not always be a good time to sell, but it is always a good time to buy.
The real premise behind this question is that buying investment real estate is never about timing the market. Frankly, it is impossible to time the market. We should all have learned that with the stock market. The same is true for the real estate market. There is no way to tell if a market is at the bottom or still dropping. There is no way to tell if a market is at a peak or still climbing. Since there is no way to time the market, stop wasting your time trying. Leave that to the real estate speculators. You want to become a real estate investor.
There is a big difference between real estate speculators and real estate investors.
Let’s go back in time and imagine a real estate investor struggling with this question in 1975. I mentioned in chapter 1 that the median home value in 1970 was $17,000 and in 1980 it was $47,200. As of this writing, the median price is in the neighborhood of $226,000.
It’s now 1975 and you are standing by the water cooler, talking with someone who is considering making her first real estate investment. The market in your area went up last year, so the median price in your area is $30,000.
The discussion is about whether or not now is the time to buy. Should you wait a little longer or strike now? What if the market drops next year? Then it would have been better to wait and buy the property next year.
At the time of the discussion, whether you bought a property at $20,000 or $30,000 seemed like a big deal. If you were right and the property dropped 30% in value and you picked it up at the lower price, wouldn’t that be a great deal?
The answer is maybe. It doesn’t matter that much if you buy it at $30,000 or if you buy it at $20,000. Here’s what matters: when you buy it, you can make positive cash flow from that investment and it is now in your portfolio. You own it and it is making money.
If you had been that person, like my grandparents were, how would that question appear today? With a median home value of $226,000 today, do you think it made any significant difference whether you bought the property for $20,000 or $30,000? The answer is no. For all practical purposes, they are the same. Both options made money and a lot of it, if you made the purchase. Neither option made money if you held off and never made the purchase because you were waiting for the market to bottom out.
You want property for the cash flow and long-term growth in your investment portfolio. If you buy a good piece of property for the long haul, you will make a great profit. Long-term investing is the key. Speculators are thinking short term.
What does happen in the good and bad years is the change in availability of good properties. In a super-hot market, all the speculators are scarfing up property so fast you can’t get to them. Therefore, super-hot markets are not ideal for investors. But if you find a good deal, you should still take it.
The down markets will be slow enough for you to take the time to evaluate properties. There will be more positive cash flow properties when the prices are down and less when the prices are up. You need to find the good ones, either way.
Have you ever spent so much time analyzing an investment that you never actually made the investment? If it had been you at the water cooler back in 1975, would you have bought the property or waited for the price to fall? I’d like to show you how to do the analysis quickly, make a decision and act. Then you will be a real estate investor.
If you want to become a real estate investor, but you don’t think you have the time, let me show you how to make your real estate investment profit without spending much time managing your property.
If you already own property and feel it is eating up too much of your time, there are many time saving tips and tricks included to minimize the time needed to manage your property. Your investments should not take up all of your time. Your time should be spent enjoying the fruits of your investments.
Order your copy of The Doctors Guide to Real Estate Investing for Busy Professionals tomorrow and get started on your journey. Whether you become the manager or just kick back and enjoy the mailbox money it is totally up to you. Five years from now you do not want to be saying, “I wish I had become a real estate investor.” Five years will go by quicker than you think. It’s time for action.
To hear podcasts about my real estate investing experience listen to this week’s release from Doctors Unbound with David Draghinas by clicking here, and The Rental Income Podcast with Dan Lane by clicking here.