thinking about investing

[momz]

it's been a few months since we made it to being debt free except the mortgage (after "living like no-one else"). And now we are starting to wrap our minds around investing ("so later we can live like no one else").

So, we are reading and researching about real estate investing. Either flipping a house, or becoming a landlord. We have a LOT to learn before we definitively decide if this is the kind of investing for us.

Does anyone have any advice to offer (either encouraging or discouraging...we need to hear it all)? Or any stories to share? We are reading books, checking out info on-line, and talking to people who have done this before.

Anyway I'm looking for any comments or cautions from anyone willing to share.

 

[QVCshopper]

I'd be very careful with that type of "investing." So many things can go wrong--have you ever watched those flipping shows? Or Suze Orman? I'd stick with mutual funds if I were you; over time you will reach your goals--especially if you start young.

I'm a very cautious person, and I think a lot of this real estate bottoming out had to do with flippers, buying beyond means, and renting out--as well as the economic downturn with jobs, etc. To me, it's a lot like playing the lottery, and you're not guaranteed to win.

I've been "living like no one else" for most of my adult life, and have been able to put myself through school, pay off the cars and house, have no debt, etc. I'm 33 and have never made that much, but have always lived sensibly. I already have more saved for retirement than my parents, which worries me greatly. Good luck no matter what you decide.

 

[Mary•Poppins]

My husband and I about 5 years ago thought about doing this ... buying properties and then renting them for income. We enrolled in a community education class that was offered by a real estate agent who managed properties for clients.

... after we left that class ... we found out this was really not for us. There was A LOT involved with just buying properties that enable you to rent them out and provide a profit. We were so blessed that we took this course before we "jumped in". We heard the bad and the ugly of being a landlord. ( ... and you should of heard some of these stories! Some from the presenter and others from people in the class who had investment properties.) I would enter this area of investment with great caution.

We read the book, "Rich Dad, Poor Dad" which spurred this idea ... but upon further research, his ideas are very hard to obtain. IMO.

Now we have a very close friend who does own properties and maintains them. He is also an electrician who started at age 19 buying properties, paying them off and then renting them out ... he is now in his late 40s. It has worked well for him ... but is still a lot of work when properties need fixed, cleaned, painted, etc.. He sees these properties as his retirement income.

I tend to follow the previous poster ... and follow Dave Ramsey's principles. If you save and live below your means ... you will build up enough money to "Live Like No One Else".

Good Luck with whatever decision you make.

 

[skiingfast]

We read the book, "Rich Dad, Poor Dad" which spurred this idea ... but upon further research, his ideas are very hard to obtain. IMO.

What the author fails to mention in his book is that he was lucky. He lived in a poor place that became a rich place. That wasn't skill just luck. Didn't take a plan just luck.


Anyhow if you want to invest in real estate. You should think since you have a mortgage you are paying could you pay two? If you can then no problem. You can't assume that because you own a property that you can rent it or sell it.

If you buy a property you should be able to do yard work and painting no problem. You should be good at basic carpentry and understand what is behind the walls. Know how plumbing and wiring work. Also know how to start an LLC.

Think about what will you do when a building needs a new roof, toilet, and garbage disposal.

Or you can work your way up to real estate.

Savings Account-CD-Money Market-Mutual Fund-Stocks-Bonds-Options-Commodities-Real Estate

 

[abmitch01]

I'm a believer in maxing out your 401k and fully funding Roth or traditional IRAs before considering other investments. Making sure the future is covered as long as today is running smoothly.