A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.
For majority of beginner investors, the ultimate aim of investing is to achieve financial freedom.
Financial freedom is essential to enjoy a happier, richer life in our adult lives. In addition, this should be your goal as a beginner investor.
What is Financial Freedom?
The best definition of the subject I ever heard is the number of days you can live without working and maintain your present standard of living. Legendary inventor Buckminster R. Fuller coined this definition.
The Great Money Mountains
There are three great money mountains you can tap to become wealthy: real estate, stock market and marketing mountains. These three are the proven paths to wealth. Majority of individuals that make the Forbes rich list, have achieved their wealth through either one or a combination of these money mountains.
How to Approach Investing in Real estate
The ownership of property has been a proven wealth producing Money Mountains for centuries. You should make owning income producing properties as part of your long-term wealth creation strategy. There are tons of books written on techniques and strategies for investing in real estate. The most important thing you need to know is how to leverage the real estate mountain to accomplish your goals.
Three factors are critical to success in real estate investing:
- Finding. For you to become a successful investor you need to know how to find bargain properties…properties below market value that will pay for themselves and bring you profits. Successful investors know that profit comes from buying right not when you sell.
- Funding. You must also know how to fund your property deals. There are many ways to fund deals, your ability to get financing is the key to buying bargain properties. The good news is you can easily get financing if you know where to find the money. Money follow good deals…so make sure you become good at finding good property deals
- Farming it. The other critical skill you need to succeed as a real estate investor is to know how to reap profits from deals. You may decide to hold on to properties you find because they have good cash flow that delivers income to your bank account. Moreover, you could also flip properties for profit. The actions you take depend, on the investing cycle you find yourself and your core investment philosophy.
Real estate is a powerful wealth-building vehicle you must consider as a beginner investor. The wealth created from investing in properties tends to be stable and less volatile compared to the stock market. You can also predict the cycles with ease compared to the other types of wealth building vehicles.
Leverage is also a big advantage of investing in real estate, because you can buy properties with little or no money down.
There are thousands of properties for sale in your city. When you have these three critical skills to success, you can weed out bad property deals, hone down to find bargain properties, fund the properties, reap the profits and grow wealthy in the process.
It is about finding it, funding it and farming it.
Think rich and grow rich.