Why real estate is a good investment? That is what we are going to be talking
about on this video. I know there are lots of conflicting information out
there. But I'm going to tell you why it is a good investment. Let's go.
In this video, I'm going to share with you 5 surprising reasons why it is a good
investment and I'm sure they will shock you. Number 2, I'm going to share with you
why some people, some investors say, it's not a good investment. We're going to
talk through that. I want you to know what the conflict opinions are. And then
number 3, I'm going to tell you a story of my investments, my real estate
investments versus my other investments. And give you a really clear comparison
so you can learn to understand the difference between the 2 and how this
really works. Okay. So, let's get into it. I'm going o tell you these 5 really
surprising things about real estate investment. And why it's a good
investment. We're going to go through the good the bad and the ugly. So, let's start
with the good because that's pretty easy. So, we have real estate. And we know that for
most cases, that real estate is what? A house, an apartment, land, mobile home.
Something like that. We're talking about real estate. Something that has real
value, okay? Real estate has real value. It is called real property for that reason.
And it's really important to know that having something that is immovable, okay?
That cannot just be picked up and thrown somewhere else is going to be something
that you want to invest in, okay? Real estate is the cornerstone of our economy
for that reason especially in most of your developed countries like America,
Canada. It's going to be very important because it is the crux of our economy.
Hence why when real estate fails. Sometimes the whole economy fails. So,
since we've now established that real estate is real property, it's a movable,
with something that does not just you can't just pick it up and move. We're not
talking about a car or an RV. We're talking about real estate property
that you cannot just pick up and move. So, now we are into what the real asset is,
okay? In real estate, if you buy it properly is an asset. And the fact of the
matter is, it is still, real estate is the number one way to wealth in America. okay?
Number 1 wealth. Look this up. 89% of all millionaires were created
so through real estate. And the reason that this is is I'm going
give you some really real reasons why. And again, I have my MBA, I have another
master's degree in economic development. This is not just for me flipping houses
is why I'm telling you this. This is not only from experience but this is also
formal education that teaches us this and you can look historically and see
that this is what people do. Especially if they ever get any money, they
immediately take it you know Michael Jordan Oprah and things like that.
They're going to take that money and they're going to buy real estate with it
too. Number 2 and I want to get this becuase I
have some really good stuff for you guys. You can leverage real estate. Meaning, you
can borrow against it. I don't know too many people that borrow against their
cars or... You know, yes you can borrow against your stock and some other things.
But it's nowhere near as easy the financing. The whole process of borrowing
against real estate is really one of the reasons because you can take that actual
money and you can reinvest it and grow your wealth. So, being able to borrow
against real estate is another really good reason why it's a good investment.
Number 3. And this is so, so, so important. And this is cash flow. Real
estate creates income if you do this properly. And it creates cash flow. So, if
I have a rental property for example in... Even if I've borrowed against it and the
mortgage is a thousand dollars per month. And I have someone paying me
$1,500 a month or better the way I do it, I probably have probably
making if it's a thousand dollars per month or probably making nearly 3
grand. A month off of that so I'm probably getting at least 3 times
what the mortgage is. And so, it creates cash flow for me because I can leverage
that, borrow against it put someone in that property and then get money each
month, cash flow. And I'm sorry but putting money in a 401K and investing in
the stock market oftentimes does not get you that consistent cash flow like real
estate. And last but not least, real estate offers us lots of options, okay? So,
there are so many strategies in real estate investing that you can leverage
to start making money. So, let's talk about all of these different options. So,
we know a few. We know about wholesaling. We know about fixing flipping. We know
about rental properties. We know about being a landlord. But that's just the tip
of the iceberg. Because most of what we're talking about we say those options,
we're talking about single-family homes or
multi-units. But I'm going to tell you some even spicier stuff that you can really
start doing and get into so that you'll see why this is where you need to be
investing-wise. Like I said, so many options. And when I say options, I'm not
talking about just the usual. We're talking about options in real estate
like what do you mean? We know that there's houses. Everybody knows
about a house, okay? We know about houses. That's the easy thing. But let's talk
about some other things in real estate where you make a lot of money. Not just a
regular old house. We have apartments, we have land, okay? And lots. Alright? And yes,
you can flip Lots, alright? I have a whole video on it I'll put a link below.
Yes, you can flip Lots and make money with Lots. We have real estate investment
trusts, okay? REITs. Where we can invest in a REIT which is a portfolio of
properties that are already making money. You can invest in that and start getting
residual cash flow from the investments they already have that have cash flow
coming from. We have mobile homes, alright? So again, I know we talked about
real property so I'm going to take a quick second here. Because mobile homes, some
people know you can pick them up and move them. Well, that's not real property
then. If you can pick the house up and move it, it's not real property. But not
all mobile homes have to be moved/ You can afix them to the land and they
become real property. So, this is another option. I have a student. Let me tell you
really quickly. I have a student. I'm not a big fan of mobile homes I'll be honest
with you. But I know about them and I have some really good friends that make
a ton of money. it's just not my cup of tea per se. I'm really into the
apartments. But again, money is money. So, you find your niche in what works for
you. So, I had a student. He was an area that had a lot of mobile homes, okay? Becasue
again, real estate is everywhere. Whatever market you're in, there's money for you
there. And he wanted to do mobile homes. And so he wanted to get a mobile home
park. Now, doesn't that sound really expensive and really crazy? Well, it
actually wasn't a crazy and expensive and hard to do as you think. He literally
I connected him with another guy that I knew that was I had market and
had worked with before. And he had some mobile homes and he was connected with
buying them and selling the entire lot. This guy wanted to now start developing
his own mobile parks so he wanted to get rid
some of the ones that he has which is really what I prefer of an investor to
do. I would never really tell you about getting into starting mobile home parts.
Too many disasters, is pretty risky. But buying an established mobile home park
is pretty profitable. And so, that's what my student did. And he did that
leveraging. Not that much money. And I'm telling you, when I say not that much
money, not that much money. I'm talking less than $5,000, okay? It's
what he had to put into the transaction. And now he's making tons of money or the
mobile home park that I think has like 65 mobile homes in it. Okay. So, now we've
gone through you know why it's a good investment. But everyone doesn't agree
with Noelle. So, I want to tell you what their points are and give you some real
facts about it. So, of course. You can invest in stocks. Publicly traded
companies. You can look through them. And you can buy stocks and you can train
through them. I've done that. But can you, like I said, borrow? Can you get the cash
flow? Can you get that monthly revenue, okay? Can you rent your stocks out and
then start making money? Can you make money off stocks you don't own like real
estate, okay? It's just really limiting what stocks. You basically take your
money, you invest in the stock market and then if the company goes up, you get the
difference. Pretty cool but definitely not offering you all the benefits of
real estate. The next thing of course is mutual funds.
And mutual funds are just a combination of stocks. That's basically all mutual
funds are. They basically are a fund manager has looked at a lot of different
companies and he's pulled together different stocks and different bonds.
Okay? Well, I'll talk we'll talk about bombs really quickly. Because you can
invest in the bond market and get a little bit of money very little. There,
that's kind of the problem with bonds it is a lot safer. But again, you're not
getting that cash flow, you're not getting that that money that you would
get. And again, not sure if I told you this but I'm telling you again.
The average flip last year. So, we're talking about a fix and flip was over
$65,000, okay? In profit. You can look this up. This is Noelle. Looking a
RealtyTrac and look up what the average profit on a fix and flip transaction was.
It'll shock you. You want to do this. I don't really know too many people that
fix and flip the stock and got 65 grand. Well, alright. Hopefully you got a lot of
information and that wraps up all of this. Now, you can really see pretty
clearly why real estate is a good investment, how you don't need very much
money to do it. How you can leverage properties that you don't own. How you
can leverage properties that you owe money on and still make money each month
and get cash flow from. And why a lot of the other investments are just in theory
into real estate. So, take this moment and invite you below. There's a link to click
about opportunity that we have where you can own pleasures of properties for just
a few hundred dollars and start getting that residual income that you're looking
for. Alright. I'll see you next time.