The real estate industry is booming. More and more investors are choosing real estate as their main investment for their retirement accounts. Based on recent polls and surveys, real estate has been voted by Americans as the most viable and the best long term investment option. The stability, low risk, and high income characteristics of this investment type makes flipping houses very appealing to even traditional retirement investors. We have seen many news reports on stock investing in which these investors are switching to this kind of investment. However, not everyone is familiar with how real estate works. Many investors may not know what to suggest to their clients. This is primarily why the market is seeing a shift with plan providers of retirement plans  bringing in  professional and seasoned real estate advisors on their team.

There are many reasons why the market industry shift makes sense. Experienced and professional real estate consultants have worked with numerous buyers and sellers and they know the different needs of their clients. They know what to provide and they know what will be beneficial for them. It’s not entirely about buying and selling but it is also about making sure that the service being offered could provide for the needs of the client.

They know the different types of real estate investments and how the processes for each type are. An expert real estate advisor would be willing to discuss these types of real estate investments and helps individuals to start their own according to what suits them the most. They would also have key bit of information about the potential investing farm area and be able to recommend a certain neighborhood or area of town.

In the end it is the bonus of communication that is relevant. A professional real estate advisor knows that prompt communication in a turn key venture is one of the crucial steps to being successful at investing in real estate.

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The first step is to secure financing to purchase properties with the help of a mortgage broker. Another part of this is leveraging other peoples’ time and talent so that your passive income comes in smoothly. The point of it is to free you so that you can put the majority of your work hours into things that you are passionate about and that make you come alive inside. What would you do with your spare time if you had a 10 hour work week? There are two main paths to take with this concept; Wholesaling or actually Fixing and Flipping.

In a majority of cases passive income is real estate incomes streams are steady and reliable. There is no requirement to actively obtain your income and with a competent property management company in place, one can lie back and enjoy a stress free retirement.  While real estate investment is a passive-income, this does not mean that you should be passive as well when handling it. You have to educate yourself and make sure that you are making the right decisions. The goal is to  have enough money to make you happy, worry-free and be financially independent. 

The freedom doesn’t end there.  For starters you have complete control over what you buy and what you put into a project.  Best advice any blog can give you is to have a system and stick to it which is why if you are methodical this might be just the extra income you have been looking for, especially if you educate yourself and understand the fundamentals of the process.

Another benefit to flipping homes part time is you have a much quicker return on investment than say waiting on your stocks to go up and cash out. The definition of flipping homes in its essence is completing the whole buying and selling of the home in less than six months. As a rehabber, you control most aspects of the transaction and aren’t dependent on the market conditions to make a profit. In turn you have predictable and repeatable financial results.

Investing in real estate properties right now helps you save money for the future because as long as you manage it right, your property will be profitable. In fact, your future self will definitely be thanking you right now if you decided to invest in a couple of real estate properties. Now is the time to become a part time real estate investor by flipping houses. Make that first step to secure your financial future.

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A few blogs ago we talked about becoming successful at investing in real estate. One of the key components we mentioned when building your REI business is setting goals.

We start with the question of “Why do you want to start investing in real estate?” The answer to this can be different for many people. Maybe you want to retire early. Maybe you want to plan that dream vacation. Maybe you are just tired of the daily grind and “working for the man.” All of these questions can be good motivators to achieve the place in life you want to be. Clear goals implement clarity. Along with a goals, setting a clear schedule will compliment your structured goals.

Financial Goals

On every flip, be sure to set a goal of how much return you expect. If you don’t set this how do you know your business is profitable?  Without specific financial goals, you’ll find it difficult or impossible to correctly analyze potential real estate deals. Investors flipping houses typically set a purchase price goal of 30% below market value after repairs. In our area is is an attainable goal to make 10K to 15K on each flip. This of course would vary on region and market, but do the research for your area to know what to expect.

Leverage Goals

Think of  your real estate investment as an actual business. Don’t try to do all the work yourself. The goal is  not to have a second job but rather a second income. Make leveraging others to your advantage a goal. Learn to  LEVERAGE other people’s time to achieve your goals. Contractors, Realtors, wholesalers –you name it. Your goal is to invest in real estate not spend your spare time remodeling a house.

Also implementing a schedule will help you when leveraging other people’s time and yours. Having a set schedule will increase productivity on not only how fast your house is flipped but also on how your day is spent.

Why Goals Work

Part of being a successful real estate investor is having the investor mindset. Don’t say “I can’t do this.” or “I don’t know how.” Think “How CAN I do this.” If you think you are going to fail then unfortunately you probably will. If you educate yourself in real estate and how the whole process works you will be far more confident when working bids, choosing houses etc. Once you have that confidence, you will be able to envision yourself reaching your goals. Since education plus action is the key, Part-Time REI has a Flipping University to help you get started.

To learn more about Part-Time REI visit us at http://part-timerei.com/

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We of course have mentioned before that investing in real estate even part-time is a great alternative to riding the stock market roller coaster. Let’s look at 3 converging factors that could make up the perfect investing market.

Interest Rates Rising

When the Federal Reserve begins to taper off its infusion of money into the mortgage industry, there will be more rate increases. This will hit first time home buyers the hardest, just as they were beginning to re-enter the market. First time buyer market involvement is down around 29% from a historical average of 40 percent. This will cause more individuals to rent thus leading you to more rent to own or leasing options for your flipped homes. Rising interest rates will become a barrier to many considering a home purchase.

The Problem for the Younger Generation

Both Generation X and Y are immersed in the largest student debt in history. Student debt now tops $1 billion and is growing. With student debt delinquency rates rising and now the biggest non-mortgage debt sector in the U.S., there just isn’t any money left for a mortgage or a down payment. As long as rental unit supply can keep up with demand, the younger buyers will stay out of the buying markets. A lack of wage growth and higher home prices and interest rates will likely continue the trend of a drop in home ownership for the young.

Baby Boomers 

Latest statistics show that about  10,000 Baby Boomers retire every day. Many of these retirees have little if any retirement savings. There will be a strong demand for entry level or affordable rental housing on a social security budget. It’s a niche market and not for all investors, but there will be a high demand for smaller homes and units near medical, entertainment and shopping facilities.

Being Prepared for the Storm

It is important to note that over the past year, about 30 percent of all home purchases were made in cash by investors. They are buying in bulk for institutions and large banking firms, turning the inventory into rental housing or first time home owners.

The smart small investor shouldn’t be discouraged by the big competition. Being aware of your market is the key. There are so many owners who lost homes to foreclosures that their only option is leasing or renting. And now with the younger would-be first time home buyers expecting to rent for years, there is going to be demand for something “better” than an apartment.

To learn more about Part-Time REI visit us at http://part-timerei.com/

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Harvard Education- 8-10 flips

One of the things we try to do here at Part-Time REI is to help potential house flippers understand the benefits of  flipping houses part-time.  One of the best reasons to start investing in real estate is the extra cash. Not only to do the things you love like travel, or save for your retirement, but also to help the future of your children or grandchildren.

If you ask an investor to think of college savings, they automatically think of a 529 plan. While a 529 does have its pros: Such tax-advantaged plans now house $168.5 billion of our hard-won savings, as of the end of 2012. According to Boston-based research firm FRC, that ‘s up almost 17 percent in just one year, securing the 529’s status as one of the top college savings vehicle in the nation. Also there is high appeal due to state tax breaks on those funds. They subsequently grow tax-free. These accounts also have a smaller impact on a college’s financial aid formula than other kinds of investments.

But not everyone is sold on the idea that 529s are the only way to go.  We don’t want you to have to sacrifice your retirement savings in order for your children to get a good college education. Saving for your own retirement is more important than saving for college. Your children will have more sources of money for college than you will have for your golden years but why not give them a little head start?

The sooner you start saving, the better.

So the sooner you start investing in real estate the sooner you can start putting that extra income towards a college fund. Even modest savings can pack a punch if you give them enough time to grow. Investing just $100 a month for 18 years will yield $48,000, assuming an 8% average annual return. Think about the average flip can be anywhere from 5-15K and you are well on your way. Keep in mind thought that college money today will be much cheaper than money for college in a few years.

Take a look at the chart below showing an increase of tuition just 5% each year.

(Based on average tuition and fees for 2013-2014 as reported by The College Board® and assumed to increase 5% annually.)

Makes you want to start flipping houses today doesn’t it? If you are looking to get started or are a seasoned pro looking for tips on flips, check out our Flipping Houses University. Please contact us if you have any questions or comments!

For more info on college cost visit:  http://www.savingforcollege.com/tutorial101/the_real_cost_of_higher_education.php

To learn more about Part-Time REI visit us at http://part-timerei.com/

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