Why You Don’t Need a College Degree to Do Real Estate Investing
According to U.S. News & World Report, the average student loan debt upon graduation is $30,000. The total student loan debt in the U.S. is $1.6 trillion. While it is true that more students today are paying off their debt than ever before, only one-fourth of all students will pay off their debt in a lifetime. They will end up living with their student debt for decades as it accrues interest and balloons to an amount so high that it is virtually unpayable.
Meanwhile, the average starting salary for college grads is $51,000. Considering the cost of living today and the amount of debt that someone takes on almost immediately after college graduation (car, home, furnishings), it makes you wonder if the four years you spent in college was worth it. Some of the leading executives, CEOs, and entrepreneurs worldwide would say probably not.
The Millionaire Mindset Doesn’t Include a Diploma
Mark Zuckerberg, Steve Jobs, Bill Gates, and Michael Dell all dropped out of college. So did Julian Assange and Richard Branson. John D. Rockefeller, Henry Ford, Liliane Bettencourt, and John Paul DeJoria never stepped foot on campus. Love them or hate them, you can’t deny their innate ability to innovate, adapt, and create wealth in the process.
For many millionaires (and some billionaires), a college education isn’t in the cards. In fact, it can be a hindrance to someone who has a vision on a much larger scale. If the millionaire mindset doesn’t include college, then what does it involve? How do people create empires without paying their dues in the classroom?
Millionaires:
Cast a clear vision (that often has nothing to do with money)
Love what they do
Find solutions to all types of problems
Hone their leadership skills
Pursue personal and professional growth
Act like a millionaire even when they are not
By contrast, college students:
Are always broke
Plug into a system they can’t seem to escape
Go into debt at a very young age
Have a narrow worldview and self-image due to their education
Do not work in a field related to their major
Plan to work for a millionaire
Today, most educational and economic experts will tell you that despite the massive college debt and the five+ years it takes to complete school, getting a degree is still worth it. However, the reason for their assertion is that they too went to college and became part of the system that kept them from realizing their true potential and living out their dreams.
Why You Don’t Need a Degree in Real Estate Investing
The title of a 2015 Entrepreneur article said it best.
“Want a Career in Real Estate? Don’t Go to College.”
Why? Because you can use the money that you would have spent on college expenses and student loans to make your first real estate investment. College also limits your mindset, gives you a false sense of confidence, and ultimately wastes your time. There are several reasons why you don’t need a degree in real estate investing.
Reason #1: Learning About Real Estate Shouldn’t Cost Thousands of Dollars
In previous blogs and videos, we’ve talked about how to avoid real estate training scams and paying too much to spend time with so-called real estate gurus. One of the biggest time and money wasters (and potential scams) is a college degree in real estate investing or related business courses.
Many of the concepts taught in the classroom can be found in resources that are a tiny fraction of the cost of a college degree and, in some cases, can be accessed for free. Why spend thousands of dollars on dorm rooms, meal plans, books, facilities, professors, and classrooms, when you can bank that money and get the same information for far less?
Reason #2: You Can Land Your First Real Estate Deal Before You Are 25
In the five years it takes you to get a college degree, you could already flip half a dozen houses and make six figures annually. While everyone else is spending thousands of dollars to make it through each semester, you are making thousands of dollars – all before the age of 25. You simply need the right tools and roadmap for success.
Reason #3: All You Need Is the Right Resources
When it comes to real estate investing, there is no shortage of resources and educational material. The question you must ask is where you find the right resources and how much money you need to spend on real estate investment training. The answer is less money than you think. While going the college route is unnecessary, you also need to avoid the real estate investment guru or seminar scams.
A self-proclaimed guru may offer a free or cheap real estate seminar, ask you to secure a large amount of credit, spend thousands of dollars on advanced courses, and spend more money on more courses, mentoring, and field trips. You end up spending more money than you would going to college. With a tiny investment, you can get the real estate investment training you need to land your first deal without.
Reasons #4: A Degree Is Not the Same as Hard Work and Determination
Let’s be honest: nearly anyone can get some type of college degree. Over Four million people graduate from college each year. However, getting a degree and building a business that converts into wealth have little in common.
Real estate investing is not a get-rich-quick venture. It takes focus, work ethic, and perseverance. It is a craft that you commit yourself to more than you would a job straight out of college. If you are going to be successful in the world of real estate, you must approach it with a millionaire mindset and an entrepreneurial spirit. These are things they don’t teach you in college.
You Can Be Successful in Real Estate Investing
You can make your first $100,000 part-time in real estate through our real estate training system regardless of your current circumstances. You simply need the ability to follow our proven system and use the resources and tools available. How can you get started?
Stay current with our blogs, podcasts, and articles.
Subscribe to our YouTube channel and follow us on all our social media platforms. We will be posting free content online regularly. You can learn valuable ideas on executing your business plan to achieve real estate investing results.
We’ll be posting free blog videos, free articles, and free podcasts that will get you on the right track to success in a consistent, sustainable real estate business.
What Are the Benefits of Investing in Real Estate?
As a real estate investor, you open a whole new world of possibilities for your business, the real estate market, and people in the community – all while improving your financial situation. While it’s easy to get excited about making money in the world of real estate, you can get just as excited thinking about how your business benefits others.
The bottom line is real estate investment is crucial to improving residential communities and commercial properties in your area. If no one takes an interest in improving a home or business by fixing it up and reselling it in better condition, the community pays the price. Old buildings and worn-out properties reduce surrounding real estate values. Eventually, people take their families and businesses elsewhere.
In addition to financial stability, real estate investing has some other benefits that you may not have thought of.
Real Estate Investors Help Local Communities
Have you ever wondered what goes into erecting a house or business? If you think about it, there are endless industries that benefit from real estate investing. Renovations bring together contractors, designers, plumbers, electricians, realtors, building manufacturers, interior designers, appraisers, inspectors, painters, landscapers, and an array of other professionals, all who depend on investors for the next building project.
Real estate investors also help the community by increasing property values and beautifying neighborhoods. The more attractive a town looks, the more pride people take in preserving their communities. Healthy, vibrant communities also bring in more business and families, which stimulate the overall economy – all because you, as a real estate investor, decided to fix and flip and house.
The Government Offers Incentives for Real Estate Investors
One of the biggest advantages of being a real estate investor is that you can take advantage of grants, tax benefits, and other incentives that are provided by local, state, and federal agencies. For instance, you can receive sizable grants from the HOME Investment Partnership program, Social Impact Partnership, Neighborhood Stabilization Program, or the Real Property Investment Grant Program.
The tax benefits available from state and local governments are almost endless.
Short and long-term capital gains
Capital gains home exclusion tax benefit
Self-Employment or FICA tax exemptions
Depreciation tax deductions
The 1031 Exchange
Tax-free borrowing or refinancing
Opportunity zone incentives
In essence, the government will reward you for improving communities by buying and selling real estate. When you make the community a better place to live, you receive full government support.
You Help Homeowners Get Out of Problem Properties
Property owners who want to sell their house or property fast are often looking for solutions to difficult situations. A person going through a divorce, foreclosure, bankruptcy, or probate needs a real estate investor who can close a real estate deal fast without incurring a great deal of expense. They can’t find this type of opportunity by hiring a real estate agent or doing a For Sale by Owner (FSBO).
When you approach a seller and make a fast cash offer on their home or business, you may be the very person who provides the solution they were looking for. Paying cash for a house and closing within a few days can help them pay off their mortgage, save their credit, or relocate without any attachments. You are providing a valuable service to sellers with immediate needs.
You Provide Affordable Housing for Those Who Cannot Afford It
Even in periods when unemployment is low, the median income of low to middle-class families does not necessarily increase. As a result, the demand for affordable housing is always high. The problem is that affordable housing is in tight supply. Sadly, many landlords take advantage of the situation by irresponsibly increasing the rent.
As an investor, you have an opportunity to create affordable housing for families who cannot afford it. You can convert run-down houses, apartments, or condos into livable spaces without jacking up the rent. Furthermore, you can learn how to create affordable housing that is cost-effective and even lucrative. When you care for your tenants by offering affordable housing, you are more likely to get tenants who are loyal and will take care of the property.
You Make Money and Have Fun at the Same Time
Name any business that allows you to decide your income while having fun at the same time. While there may be some out there, few businesses can give you the satisfaction of helping others and creating wealth for yourself at the same time. Ask any successful real estate investor, and they will tell you that they look forward to waking up each morning and making a real estate deal.
There’s something unique about negotiating a real estate deal that brings a tremendous amount of fulfillment and a sense of accomplishment. Real estate investment is empowering and gives you a sense of purpose and direction in your life. You become a productive member of the community. Plus, your role in helping others in your area is firmly established.
You Can Be Successful in Real Estate Investing
Through our real estate training system, you can make your first $100,000 part-time in real estate regardless of your current circumstances. You simply need the ability to follow our proven system and use the resources and tools available. How can you get started?
Stay current with our blogs, podcasts, and articles.oh,
Subscribe to our YouTube channel and follow us on all our social media platforms. We will be posting free content online regularly. You can learn valuable ideas on executing your business plan to achieve real estate investing results.
We’ll be posting free blog videos, free articles, and free podcasts that will get you on the right track to success in a consistent, sustainable real estate business.
If the focus of your real estate investment company over the last several months has been fix and flip, you have probably noticed that your materials costs have increased due to the COVID-19 pandemic. Lumber, metal, and hardware costs have all skyrocketed to more than 50 percent in certain regions of the U.S.
Why Are Construction Costs Skyrocketing?
Interest Rates Are Low
In early October, mortgage rates plummeted as low as 3.01%. This is a historic low across the board. The sudden drop in interests has caused a massive increase in the real estate market, with more homeowners taking advantage of the new rates. Although the pandemic has threatened the economy at large, it has not deterred consumers from buying a new home or upgrading from their current home.
The Demand for Housing Never Stopped
With a surge in the market, the demand for housing and housing supplies never stopped. If anything, the demand has increased to the point where manufacturers cannot keep up with the demand. As a result, there are shortages in key construction supplies such as lumber, metal, windows, and roofing materials.
Employees Are Not Returning to Work
The sudden demand for housing supplies would normally create jobs and provide stability in the workplace. However, the CARE Act of 2020 presented many blue-collar workers with benefits, in addition to the benefits they were already receiving from state unemployment. Many workers are making as much or more than they were in their current jobs. As a result, they are staying home instead of returning to work.
How Does the Increase in Costs Affect Your Real Estate Business?
If you are involved in a fix-and-flip real estate investment business, you will need to rethink your buying and selling strategy, as well as account for an increase in costs in your budget.
Adjust Your Operating Budget
You can start by creating an allowance in your budget based on the percentage of increase in construction and supplies costs. Some materials costs have increased by as much as 50%. Therefore, you need to gauge the costs in your market and add those costs to your budget. This can keep your margins healthy when making real estate deals or completing projects.
Work with Your Contractors
If you are already in the middle of a deal, you bought the property, and you analyzed the house based on what it was before the pandemic, you may feel that you are stuck in the project. One of the things you may be able to do is meet with your contractor to discuss reducing building costs. Contractors have different models of operation that may allow them to find places where they can cut expenses. This creates a win-win for both you and the contractor. You can save money, and the contractor can keep working.
Focus on Solving Problems
Part of being successful in the real estate investment business is finding solutions for some of the most challenging problems that come your way. Learning how to navigate problems and find solutions makes you a better real estate investor. You may have to get creative and practice some flexibility. However, if the deal goes bad or you do not make as much as you had planned, remember, there are always other houses.
Instead of stressing out over the problem, do what you can to resolve it and keep moving forward. Regardless of how successful you become in real estate, some deals will never work out regardless of the reason. This is part of doing business. The bigger the problem you solve, the more powerful you become as an entrepreneur, business owner, and real estate investor.
Through our real estate training system, you can make your first $100,000 part-time in real estate regardless of your current circumstances. You simply need the ability to follow our proven system and use the resources and tools available. How can you get started?
Stay current with our blogs, podcasts, and articles.
Subscribe to our YouTube channel and follow us on all our social media platforms. We’ll be posting free content online regularly. You can learn valuable ideas on executing your business plan to achieve real estate investing results.
We’ll be posting free blog videos, free articles, and free podcasts that will get you on the right track to success in a consistent, sustainable real estate business.
In the current real estate market, foreclosures are not good deals.
Before purchasing a foreclosure, remember a basic rule of real estate investing: You need a motivated seller willing to sell you the property at a discount.
Why Foreclosures Used to Be Good Deals
In 2009 and 2010, lending institutions were still dealing with the 2008 real estate crash fallout. Major lenders across the U.S. were highly motivated sellers because they had thousands of bad assets and bad loans they needed to liquidate.
As a result, banks unloaded residential and commercial real estate at a deep discount. The mass movement of foreclosures caused a deflation in the real estate market until 2011 when the market started to regain upward mobility.
The Current Real Estate Market
Right now, banks are not motivated sellers.
Consequently, larger banks with foreclosures on the books will not offer good deals to real estate investors because lenders have the capital and resources to renovate properties and list them at retail prices on the real estate market.
There may be some exceptions with small community banks with several bad loans and mortgages they need to get off the books. In these cases, banks may be motivated to sell you a property at a discount. Otherwise, investors can no longer spend a lot of time and money investing in foreclosures at deep discounts.
Why Are Investors Still Interested in Buying Foreclosures?
Why are investors still looking for foreclosures?
The sudden interest in foreclosures has occurred as a result of the COVID-19 pandemic. The trend toward investing in foreclosures is not totally unfounded. After all, there is a current nationwide real estate crisis in which thousands of homeowners are in danger of losing their homes due to mortgage non-payment. In a normal economy (or at least under normal circumstances), many of these homes would go into foreclosure after 90-day delinquency.
However, the 2020 CARES Act protects homeowners with federally-backed mortgages. Banks may not legally foreclose on homeowners with past-due mortgages because mortgage holders may have the option of extending or modifying the loan once the pandemic has ended. Under the act, they do not have to pay the mortgage for 12 consecutive months. The loan can go into forbearance without the bank foreclosing on the house.
Current data has shown that thousands of homeowners whose mortgages are 90 days to six months past due are applying for the CARES act benefits.
Should Real Estate Investors Avoid All Foreclosures?
Does this mean that all foreclosures are off the table?
The answer is no.
There are potentially great deals on the market. However, to take advantage of foreclosure discounts, you must have a strong relationship with asset managers at banks holding the foreclosures. As you build your real estate investment portfolio, you can foster strong relationships with bank asset managers through networking strategies, using whatever means necessary to build your credibility.
Once you have built your reputation as a reputable investor with a solid track record, you will have opportunities to access a bank’s portfolio of foreclosure discounts. Until then, most bank asset managers will work with you unless you are ready to buy properties in bulk. For instance, If the bank has a portfolio of ten bad loans, you will have to buy all ten properties at once.
You Can Be Successful in Real Estate Investing
Through our real estate training system, you can make your first $100,000 part-time in real estate regardless of your current circumstances. You simply need the ability to follow our proven system and use the resources and tools available. How can you get started?
Stay current with our blogs, podcasts, and articles.
Subscribe to our YouTube channel and follow us on all our social media platforms. We’ll be posting free content online regularly. You can learn valuable ideas on how to execute your business plan to achieve real results in real estate investing.
We’ll be posting free blog videos, free articles, and free podcasts that will get you on the right track to success in a consistent, sustainable real estate business.
When it comes down to it, building a successful real estate investment business requires the same work ethic and dedication as any other form of work. There is no shortcut to make money in real estate. It is possible to make $100,000 part-time in your first year. You can also slowly and steadily build wealth through successful real estate deals.
The most question you must ask yourself is, Do I want to create wealth? If you do, you need to be willing to learn how to invest in real estate, create cash flow, and put you more money in your pocket through tax advantages and capital gains. Let’s look at the three ways real estate can make you wealthy.
1. Cash Flow
Cash flow is the lifeblood of any household. Every adult with a house and a family must make enough money to cover their monthly household expenses. The question is, what kind of cash flow do you have in your household? More specifically, do you have rollout money or rollover money? What is the difference?
Rollout Money
Rollout money is the kind of money you earn when you roll out of bed and go to work. You earn an income paid to you by your employer. Essentially, you work for the money. The money does not work for you.
Rollover Money
Rollover money is money you earn, whether you get out of bed or roll over and go back to sleep. It is money that continues to flow into your bank account whether you work or not. This is money you generally earn in your business – not because you are working for someone else.
Which would you rather have; money that you work for or money that works for you? Real estate investing can help generate healthy cash flow through rental properties, multi-family, commercial leases, or other investment opportunities
2. Tax Advantages
Real estate is one of the few industries in which the federal government allows you to depreciate and offset your tax liability. The benefit is that you pay less of a percentage of your income.
If you get a full-time job, you pay higher taxes and make less money. For instance, if you make $50,000 a year in your job, you will likely get taxed at a higher rate. This is why most employees pay more taxes.
However, if you are making the same $50,000 in real estate, you are being taxed at a reduced rate because now it is no longer earned income. Instead, you are generating passive income. Furthermore, the federal government offers incentives for real estate development since you are providing housing in the U.S. Incentives and tax breaks put more money in your pocket.
3. Capital Gains
If you create the right value asset strategy when selling real estate, you will increase your net worth. For example, if you buy a residential property and add a bathroom, bedroom, or kitchen remodel, you have increased the property’s value. You now have capital gains, and you can sell it for profit.
The same goes for commercial property. If you buy a building and assess its business attributes and find ways to make it more functional or efficient, you have increased its value and created capital gains. The goal of capital gains is to reduce expenses and increase revenue. As your net operating income increases, your building’s value increases so that you can refinance and get some money out, or you can sell it for a profit.
Your net worth will increase through capital gains. The best thing about capital gains is that they are taxed much less than your income from a W-2 regular job.
You Can Be Successful in Real Estate Investing
Through our real estate training system, you can make your first $100,000 part-time in real estate regardless of your current circumstances. You simply need the ability to follow our proven system and use the resources and tools available. How can you get started?
Stay current with our blogs, podcasts, and articles.
Subscribe to our YouTube channel and follow us on all our social media platforms. We will be posting free content online regularly. You can learn valuable ideas on executing your business plan to achieve real estate investing results.
We’ll be posting free blog videos, free articles, and free podcasts that will get you on the right track to success in a consistent, sustainable real estate business.
It is hard to determine the actual value of the country’s most important residence. However, as real estate investors, we cannot help but analyze any property we vie for, including the white house, to determine what it is worth on the market. Furthermore, we often look at any property to assess its value from a business perspective.
How do you establish property value? What approach or criteria do you use? Let us look at an analysis of what the White House is worth.
The Latest Estimates
According to Zillow.com, the White House is worth $397,000,000. While that sounds impressive, how does it compare to the most expensive homes for sale in the U.S.? Fairly good, actually. Here is a rundown of the ten most expensive properties on the market over the past few years.
The Chartwell Estate
Los Angeles, CA
$350M
Bel Air Spec House
Los Angeles, CA
$250M
The Manor in Holmby Hills
Los Angeles, CA
$200M
Owlwood in Holmby Hills
Los Angeles, CA
$180M
Great Island
Darien CT
$175M
Manalapan Megamansion
Lantana, FL
$165M
1080 Meadow Lane
Southampton, NY
$150M
West Creek Ranch
Colorado/Utah
$140M
La Dune
Southampton, NY
$145M
Briar Patch
East Hampton, NY
$140M
As you can see, the White House has significant value in the market. However, the way homeowners and realtors look at value and how real estate investors look at value is different.
Why is the White House Valuable?
As a real estate investor, you look at real estate from a business perspective. In other words, can you flip the house or use it as a source of residual cash flow? You may assess real estate value based on the physical attributes of the property. When it comes to the White House, there are plenty of marketable features.
18 acres
132 rooms
32 baths
Tennis court
Basketball court
Library
Rose Garden
Nuclear bomb shelter
Helipad
Bowling alley
Luxury services
Office space
As an investor, you may see the opportunity to turn the White House into a resort or hotel, bringing in thousands (if not millions) of dollars in revenue each month. You simply conduct a comprehensive analysis of the property’s market value and decide how much you are willing to pay for the property based on how much cash flow it generates each month.
The Lesson: Ignore Retail Real Estate Market Values
What is the lesson here? Do not rely on Zillow estimates when assessing the value of a property. Zillow accounts for variables such as
Home characteristics including square footage, location, or the number of bathrooms
Unique features like hardwood floors, granite countertops, or a landscaped backyard
On-market data such as listing price, description, comparable homes in the area, and days on the market
Off-market data — tax assessments, prior sales, and other publicly available records
These types of values are good for homebuyers. However, they are not relevant to home investors. So do not rely on Zillow market analysis. Instead, assess the property based on the investment versus revenue potential.
You Can Be Successful in Real Estate Investing
Through our real estate training system, you can make your first $100,000 part-time in real estate regardless of your current circumstances. You simply need the ability to follow our proven system and use the resources and tools available. How can you get started?
Stay current with our blogs, podcasts, and articles.
Subscribe to our YouTube channel and follow us on all our social media platforms. We will be posting free content online regularly. You can learn valuable ideas on how to execute your business plan to achieve tangible results in real estate investing.
We’ll be posting free blog videos, free articles, and free podcasts that will get you on the right track to success in a consistent, sustainable real estate business.
