Real Estate and Wealth Creation - 5 Steps You Can Take Starting Today
Are you tired of trying to follow all of the real estate "Get Rich Quick" schemes on the Internet and on TV? It seems that most of these programs only make money for the seller of the program, and rarely for those who follow it!
That’s not to say that there still isn’t lots of money to be made in real estate — there is — by investing time and effort into the money-making activities while reducing the time you spend just spinning your wheels. With the tools that are currently available through technology and on the worldwide Web, you can quickly learn how to use your computer and the Internet to minimize your effort and maximize your earnings this year through Real Estate Investing.
According to Larry Lick, founder of the Rental Housing OnLine Website, real estate is still the best opportunity for an average American to become a millionaire without hitting the Lotto or inheriting money.
Interestingly, the latest U.S. wealth statistics, from the 2003 Survey of Consumer Finances (put out by the U.S. Federal Reserve every 3 years) confirms this it shows that, in looking at individuals with the top 10% of net worth in the U.S., the way to wealth is to own your own business AND to own or control real estate!
The average net worth of a household where the head of household is employed by a company other than his own is approximately $65,000. The average for those who are self-employed or own their own business is almost 5 ½ times that at $352,300.
Even more interestingly for our purposes, 37% of non-financial assets (those not invested in mutual funds, stocks, and other paper investments) held by those in the top 10% are invested as equity in their own business. A whopping 57% of the remaining assets are invested in real estate 26% in a primary residence, 18% in additional residential properties, and 13% in non-residential properties.
Another interesting wealth statistic: all the wealth in America is concentrated among homeowners (two-thirds of Americans own their own homes). The difference is astounding. The average homeowner’s net worth is $171,700, while the average renter’s net worth is a paltry $4,800.
Logically, then, if we stop to look at these statistics, it seems somewhat obvious that the marriage of the two owning a business geared towards owning real estate would be the best way to create the most wealth.
This is especially true with the hot real estate market the way it has been the last few years. Contrary to popular belief, however, achieving those numbers is not just for a lucky few. Just about anyone can do this. It certainly doesn’t matter who you are, or where you live, with the proper tools, you can get started on the road to earning more money and achieving true financial freedom. For those individuals with ambition and determination who are looking for financial security and control over their future, real estate investing is still the best way to become financially independent.
5 Steps You Can Take Starting Today
Step 1: Start by thinking rich start paying off your debts. Do not acquire new ones only buy things once you’ve earned enough to pay for them. Clean up your credit. Live within your means. Invest, don’t spend.
Step 2: Educate yourself. This does not need to be formal education. Read all the books you can find about real estate investing. Attend as many free and low-cost seminars as you can. Join local real estate clubs and start talking to people who do this for a living. Find newsgroups that you can join to start getting your finger on the pulse of your local market.
Step 3: Set up a business entity. Attend SCORE or Small Business Administration workshops. Learn at least the basics on finance and accounting. Talk to an accountant and an attorney regarding business entity structure and taxes, and decide which one makes the most sense for what you are planning to do. Set up a system whereby your business can run smoothly.
Step 4: Acquire the tools necessary to minimize the time you spend working on time-wasting activities and maximize your income-producing activity. Apply the tools to your system. These tools are often technological in nature. The Internet is a fertile source for many of these tools. They can include everything from free word processing and spreadsheets to transaction management platforms, and information sources on where to find just about any type of property.
Step 5: Accumulate and reinvest your wealth. Although giving yourself a treat every once in a while to keep you motivated is great, spending all you made on your first flip to buy yourself a luxury car (and therefore draining your resources) is not a good idea. You need to re-invest your assets in order to grow your portfolio of properties, and to grow your business.
One of the most important things you can spend time on, before starting on this journey, is to develop your personal vision. You have to be very specific about what the things are that you TRULY want for you and your family, then make sure that you ACT on your vision by motivating yourself to do something TODAY!
You can find more tools and tips on how to get started by going to www.realtylinkz.com.
ABOUT THE AUTHOR
Carmen Cunha possesses over 18 years of broad-based financial and international operating experience. She is a licensed Real Estate Broker in the State of Florida, and is owner of a realty firm specializing in working with distressed properties. Prior to receiving her Real Estate Broker’s license and beginning her real estate investment career, she was co-founder and Director of Operations of an export firm based in Ft. Lauderdale. She was instrumental in the start-up of, and served as Director of Operations for, MSF Holding, Inc., an international medical equipment finance company in Boca Raton. She also spent many years working with public and government sources as a Program Manager for an international development non-profit in Washington DC. She holds a Bachelor’s Degree from The University of Maryland; a Masters of International Business Management from the Garvin School of International Management (Thunderbird) in Glendale, Arizona; and a Masters of International Development from The American University in Washington, D.C.
Fiind out more about tools to help you get your Real Estate Investing career off the ground by going to www.realtylinkz.com.