I’ve been wanting to get into real estate since I was a kid, but was unable to get started until a couple of years ago. My dad was a contractor for a brief period and bought a few deteriorating properties and then renovated them in order to market them. The area where we lived was not an active Real Estate Market, he needed to rent them out and then sold them under a land contract which was repeated several times. I still remember the frustration of my parents at having to put off selling the house, and having tenants who could not be able to pay rent every month. The end result was that they earned some cash, but it wasn’t the amount they had wanted. Because my parents didn’t discuss the details of their financial situation with their children with six, I was not in the loop about the entire experience. However, I did have an unshakeable feeling that things could have been different considering I was a teenager at the moment.
In the past, I resisted the desire to purchase due to the negative feedback from friends, the reluctance from my partner and my own insecurities. I reflect on properties I was considering in the past and, in hindsight, will see what a fantastic investment they could have been. I decided to take the plunge in spring 2016, and purchased one family-only pockets listing through a broker friend and then something clicked. I quickly drew out cash from a retirement fund that was making a loss every month to make down payments on two others. All of them were purchased using conventional loans. Two years later I own six single-family homes as well as one duplex. I am excited to begin investing in multi-family properties that are bigger. Although I often regret not having started sooner there are a few advantages to waiting until later
- Financial stability: Since I was already financially secure and had a high credit rating, it was simple to obtain loans. After many years in W-2 positions I was able to access money for down payments and loans, which meant that the lenders were always eager to collaborate with me and also to provide amazing interest rates.
- Live Experience Being a long-time worker with life and work knowledge, I’ve made better decisions when purchasing as well as managing investments. The cash-on-cash return on the properties I own is 23 percent and the cap rate ranges between 13% and 22 percent. Understanding the significance of these numbers and the best way to achieve these numbers — prior to investing has had an enormous difference in the way I purchase, as well as the way I exit bargains.
- Angst: Everyone is afraid at times But our fears can be amorphous. What is frightening you in your 20s isn’t the same for your thirties or forties, and the list goes on. I’ve noticed that I’m able to have a very low level of fear nowadays, so I’m not letting anything hinder me. But what hinders me from doing something is potentially crucial or (hopefully) I’m smart enough to recognize it.
- Viewpoint: Failures don’t seem as deep, and wins don’t appear as big. Since neither is permanent. You’re just as great as the last contract, but your possibilities of success in the future are endless.
- What is the Game? I’m naturally competitive. When I was a child, I resented playing Monopoly because I felt there was a lot of luck involved. It was impossible to be in control of your fate because every single spin could land you in the midst of bankruptcy, or even in prison! Since I’ve fully grasped real property as a game, not just is it a profitable investment, but also a game of competition.
If you’ve always dreamed of owning investments but aren’t able to find the motivation to take the plunge, now could be the right time to start. It’s never too late — or too late to begin.
Vairt is a Crowdfunding Platform for Investing, tokenizing and liquidating real estate assets through Block chain. Once you are ready to make an investment, you can make an investment in less than 2 minutes. Sit back and relax as your property gets funded. Vairt analyzes Property Investment Opportunities using a 100-point proprietary screening tool and independent third-party market data to assess the investment attractiveness of each property. We give you the Opportunity to Invest in Real Estate for as little as $5000. All properties on our platform are listed for 30 days to give investors ample time to raise funds.