Real estate investing basics and ROI (return on investment) are covered superbly in an article by Jason Hartman of the Platinum Properties Investor Network. It’s called ROI Some People Don’t Get It.
In fact, this article is a comprehensive lesson on how you actually make money in real estate, unlike a lot of the hype out there which tells you to just count on appreciation.
He covers a lot and that’s why it’s a long article; worth printing out. And it’s all free.
This is one of the ways you can pick up some very excellent investing info without paying expensive gurus for it.
Don’t get me wrong. Jason is not saying appreciation and cash flow are not important, he’s simply telling it like it really is.
The way you really make the money for solid long term investing is buying the properties with other people’s money ( the banks’) and having someone else pay most of your mortgage for you over time (the tenants).
Then you can start to think about appreciation because you’ve got your old friend inflation on your side.
Inflation allows you to pay for your properties using dollars that are worth less than when you first bought the properties.
In other words, if you don’t think appreciation will add up like you want, inflation will kick in and make up the difference.
I think that’s sound, because I’ll go out on a limb here and say, I think we’ll return to inflation after this current money crisis ends.
(That’s if the government starts printing a lot of money, which I think it will certainly be tempted to do.)
That’s another reason for investing in a good hard asset like real estate.
Check out ROI Some People Don’t Get It