Comments on: If Real Estate Investment Is So Great, Why Doesn’t Everyone Do It?

By: Real Estate Investing Links for September 23, 2009 - Lifestyles Unlimited

Real Estate Investing Links for September 23, 2009 - Lifestyles Unlimited — Wed, 23 Sep 2009 08:59:48 +0000

[...] This article from the Millionaire Blog touches on a topic that has been addressed in one of our recent polls and multiple times on Steve’s radio show- fear. Bruce W. Ford breaks it down, explaining how to turn fear into knowledge into money. [...]

By: Mike-UT

Mike-UT — Tue, 27 Dec 2005 20:52:56 +0000

“Great spirits have always encountered violent opposition from mediocre minds.”
– Albert Einstein

By: Bruce W. Ford

Bruce W. Ford — Tue, 08 Nov 2005 05:59:51 +0000

I appreciate you publishing this article!

I fully understand the fear of tenants who don’t pay. While I’m no guru, I buy property with none of my own money all the time, but in the event a tenant doesn’t pay, yes that comes out of my pocket. It pays to have a little saved up.

In the early days, this was more of a worry. So, I looked for deals where I have enough in the original hard money mortgage to

– buy it (including closing costs)
– rehab it
– pay the mortgage while finding a tenant

When a tenant moves in using the rent-to-own model, they are paying between $2-3,000. That covers months of mortgages for me in the event they stop paying. That’s time enough to get them out and someone new in.

Bruce
——————
http://www.Rehab-Real-Estate.com
Special Report entitled â€œ12 Things Real Estate Investment Gurus Wonâ€™t Tell Youâ€ at Rehab-Real-Estate.com.

By: Alexander Kintis

Alexander Kintis — Sun, 30 Oct 2005 02:11:14 +0000

Jim,

Agreed.

By: jim

jim — Sat, 29 Oct 2005 20:45:17 +0000

One other reason why people won’t do it is bad timing. I would have invested my money in rental real estate except I wanted to get my own home first. Yes, the other reasons you give are very valid (esp. the high dollar reason and the complexity reason) but for a lot of folks the timing is the major issue.

It doesn’t make financial sense to buy an investment property when you haven’t bought the most important investment property – your home – first.