I believe 2013 will be the start of the next wave of real estate investing, also known as The Golden Age for real estate investors. It’s likely to be the last year of the incredibly low mortgage rates. That’s because we’ve exhausted our ability, as a government, to be able to keep interest rates low. We’re not quite there yet, but we’ve just about exhausted it. And the longer inflation is put off, the greater the impact it will have.
This is why it’s so crucial to invest only in assets that are a hedge against inflation. Gold and silver are great hedges against inflation. But if you’re like me, you don’t have a couple million sitting around to drop into gold and silver.
There is one hedge out there that you can buy with leverage, and that’s real estate. You just can’t leverage any other hedge the way you can real estate. My Consulting Clients are even borrowing 100% on their investment properties. At this time as we are entering 2013, my Consulting Clients are borrowing 100% of the purchase and 100% of the rehab. And it’s not at some goofy double digit rate either.
So here are some questions you need to ask yourself for the coming year:
- What’s my game plan for my real estate investing business?
- How many houses do I need to do in the coming year?
It’s so crucial that you know what this number is because it dictates what your daily activities will be for the entire year. For some folks, the number will be three or four for the year with the intention of putting an extra $100k in their pocket. For others, the number will be one house per month. And for those people averaging $20-25k per house it will be a good track to be on. Your profit depends on the price of your market.
In my next post, I’ll share more about the importance of asking the right questions while constructing your annual business plan. I’ll also provide some insight about how to treat your business like a business so that it will function as one.
If you are interested in learning more about investments that can be hedged against inflation or would like a copy of my eBook to guide you through the process of securing money partners, visit online at www.billbarnettnow.com to learn more. Start the year off right by taking your business to the next level!