


By Tom Dunn
The answer to the question, “What is real estate investing?” differs depending on who you’re asking. One thing is certain, though. There are almost as many different ways to invest in real estate as there are investors. Find your own answer to the question, and develop you own method and style of investing.
Ask Donald Trump the question, “What is real estate investing? and you’ll certainly get a passionate response, most likely involving multi-million dollar commercial property. Ask your next door neighbor who owns a couple of single-family rental houses, and the answer is likely to be quite different. Who’s right, and who’s wrong? The answer- both, and neither!
They’re both right, because real estate investing can be as simple as buying a single family home and renting it out, or as complex as putting together multi-million dollar real estate investment trusts (REIT’s), and everything in between. The question, “What is real estate investing?’ has no right or wrong answers.
I know one investor in my local area whose answer to the question, “What is real estate investing?” is buying cheap mobile homes, usually for under $5000, fixing them up if necessary, and reselling them for a profit.
Another investor I’m acquainted with partners with other investors to buy run-down or underperforming apartment buildings, change the management structure to make them profitable, and re-sell them in a tax-free exchange. His answer to the question, “What is real estate investing?” is very unique, but it works great for him.
An elderly retired gentleman I know doesn’t worry too much about the question, “What is real estate investing?” He just makes loans to a few select local investors who use his money to rehab fixer-uppers. He earns a very healthy rate of return, and never gets his hands dirty.
Yet another friend of mine buys notes that have been created through the sale and financing of real estate. He buys the notes at a substantial discount, resells some at a profit, and keeps the rest for cash flow. His is a great approach to “What is real estate investing.”
Finally, a woman I am familiar with doesn’t buy property herself. She finds deals for other investors, and collects a nice finder’s fee for doing so. When she’s asked, “What is real estate investing? she answers… profitable!
You can see from these examples how many different ways there are to answer, “What is real estate investing?” There’s no need to try to fit into somebody else’s mold. If you enjoy doing things a certain way, or find you are best at certain activities, chances are there’s a way to turn it into a profitable real estate investing strategy. You’re limited only by your imagination.
Speaking of imagination, why not let yours run a little wild? Investigate all kinds of real estate investing by joining your local investing club, reading everything you can find on the internet, buying books and courses, and getting to know as many different investors as you can. The more styles and strategies of investing you can expose yourself to, the easier it will be for you answer the question, “What is real estate investing?”
Now, go make more offers!
You are welcome to share this report, unedited and in it's entirety, with anyone you like. You may not remove this text.© 2006-2008 by Tom Dunn. Website: www.dealfiles.com email: tom@dealfiles.com
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