Money while you sleep

A very savvy businessman told me when I first started "you want to be in a business that deals with large amounts of money and makes you money while you sleep."
I took this to heart when I began getting my money into real estate.

Multi unit investments

Purchasing a piece of real estate for an investment, a value investment, is different then buying one on spec. As an investor you must understand this fundamental difference. When you purchase these value investments it usually comes  down to the multiple of the income or the inverse, the cap rate. Multiple units under one roof do a better job of keeping the expenses down, which ultimately gives you a better net and a more valuable building. Do yourself a favor and keep it under one roof.

Single Family Homes and Cash Flow

A lot of times investors will get into real estate investment with buying a SFR or single family residence. These are great for introduction to real estate but be careful. A lot of SFR are cash flow negative because the open market demands a price in which people want to live in them and not rent them for a profit. Even if you place a sizable down stroke on them to provide decent cash flow, you have just ruined your cash on cash return and it would be more profitable to get it into other ventures or even other buildings. its a balance of a lot of factors.

Cash Flow

Some like the appreciation, but as most investors know, appreciation does not put food on the table. If the investment is to have and hold then the idea should be cash flow. I will update with how you find this soon.

This is needed to take the next step

To learn about getting money into buildings you have to understand the basics of calculating a good investment. this little idea will give you insight into the market values of income producing properties.

Cap Rate

The greatest forum for investers!

this site is legit and you will learn tons from just hanging around and posting every now and again.

www.biggerpockets.com

Get some money into buildings.

It's funny how everyone understands or has heard the term, "buy low sell high" and believe it applies to only equities. In this downturn of a market, that adage applies to real estate as well. The cycles in RE are wider and greater but market timing should be the same. Get in low, sell when its high.

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