3 Simple Rules for Investing in Real Estate

20 June 2018

Real Estate is not a short term investment. That's where investors lose money. Real Estate is a long term investment, over 5 years. If you go shorter, you're just gambling. So, here are my 3 simple rules.

Buy in markets where the population is growing, more demand! Replacement housing, construction costs, always go up with inflation, hence, so will your property.

Try to buy the best locations. When the market slows, marginal or poorly located properties lose their value. Prime properties maintain theirs.

Only buy properties with positive cash flow. If that means putting 30% down, so be it. Never buy raw land unless you have the money to carry the property for at least 10 years.

Remember, you get the best return on your real estate when you don't have to sell. When you are forced to sell, you always get less.

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