Real Estate 101 (1)

In life, there are only two surefire guarantees: breath and death. Still, preparing for the future does have its rewards. In fact, most aspects of life involve some degree of planning—it’s the way we, as inhabitants of 21st Century America, have been taught to exist. Financial security holds true to this grain of living now for later.

Considering the uncertain stock market, investment trusts, and 401K options, it may seem as though the safest place to store money these days is under a mattress. Yet despite appearances, the current situation is a nesting place for get-rich-quick schemes, success-in-a-few-days books, and a plethora of pyramids and chain letters promising wealth with little investment. Grandma’s old adage that anything worth having is worth waiting for is whisked away by new sayings fed even by some Christian evangelists who proclaim supernatural debt-cancellation in 2003. Such spellbinding messages can leave the average middle-class investor perplexed, suspicious, and purse-clutched. The query of the day may be simple, but it is full of meat and potatoes: will the real financial savior please stand up?

Most are privy to the recent real estate boom. There are those who have even ventured to capitalize on its benefits. Late night infomercials, such as those showcasing real estate gurus offering no money down investment property acquisition tactics often hook viewers into an initial purchase as a marketing ploy for future sales. The viewer then realizes that he or she has spent hundreds of dollars and hasn’t gained any more real estate investment knowledge than was originally obvious.

The truth is that real estate is as close to guaranteed wealth as most middle class Americans are going to get. There are profits to be had in real estate; however, one does need to know how to play the game. The Executive Intelligence Review explains in a recent article that “the cumulative value of all homes in America is now an astounding $12.04 trillion,” which is only one-third less than all the stocks traded in America. While this statistic speaks to real estate’s firm footing in the American economy, it is important to understand that the “living now for later” strategy only works when the investor plays smartly.

Please stay tuned for more information, thank you!