The BIGG Successs Show
Get Real Estate
There’s less competition for property today. It’s a buyer’s market.That’s why we think you should buy now. We'll share tips to help you get started. Listen to the show and hear the summary here.
Welcome to our 18th Big Success Show. Today you'll learn how to jump start your passive income by owning real estate. The Big Success Show with George and Mary Lynn. (upbeat music) Last show we talked about how to get started in your own franchise for business. And today we wanna talk about investing in real estate and George, the two scenarios we talked about in our last show still apply. That's right, because real estate is a business. And so everything we talked about last show would apply as we think about buying real estate. So why on earth will we buy real estate right now? All you hear is that the boom is gone bust. People are losing their homes because of the adjustable mortgages. I've got a friend who's had a house on the market for over a year. He's had to drop the price a number of times. I mean, why not just rent and invest? Well, I'd say two things to think about. One is things aren't as bad now as they were relatively good earlier, okay? So I think that there's a little bit of a misnomer that things are just so terrible. The second thing is this, before we were in a seller's market, now we're in a buyer's market. When do you wanna buy? When there's a whole lot of buyers out there? Or do you wanna buy when there's less competition? When are you gonna get the best deal? When there's less competition? So I think now is a much better time to be thinking about buying real estate. Okay, so if you wanna invest in some real estate, where do you start? Well, the best place to start is by owning your own home. For years, financial planner said rent and invest. That actually is factually the best way to go, but here's the problem. It's not for savings. Owning your own home forces you to save money. You're building equity. And so what statistics tell us is that people who own homes on average have way more net worth than people who don't. So that's why we're saying get started by your own house. So with this house that we buy, is this a house that we're gonna flip? We're gonna flip that house or what are we doing? Keep in mind we're investing for passive income. Now owning your own home doesn't give you passive income, obviously, right? But it's kind of laying the foundation for you to be able to do that. So we're talking long-term holdings. And keep this in mind one way you minimize risk is by holding for a longer period of time. All right, George, let me throw this at you. I owned a home once and had an unexpected repair that took me for about $8,000. So I wasn't feeling too happy about my investment. So I guess I just want to go back to that question. You said that owning your own home can't create this passive income. I wasn't feeling it. - Well, that definitely can happen, Marilyn. And the thing is we have to be prepared for those unexpected situations. Now that almost sounds like an oxymoron, right? Prepared for the unexpected, but you know what? You can do it. The main way you do that is by making sure that you have a little cash stash before you buy. Now, that's either your money or that partner we talked about last show. So have some reserve cash and that will carry you through that. You got to minimize your risk. Remember, we said become a master at minimizing risk. That's one of the ways you do it is have the cash stash. - So we've got this house. Now what do we do? - Well, now what we're going to do is we're going to buy another property, okay? Maybe the place you bought wasn't your ideal home. We're going to buy now a little better house and we're going to move and live in that house. The first house now becomes our rental property. We put a tenant in there and we start making money. Guess what? Now we're on that passive income train. - All right, what should you be looking for though when you're buying this property? - The thing is, Marilyn, one of the reasons I think real estate is such a great place for people to start and get into business is because we've all bought or rented a place in our life. So the place you bought, what did you look for? Well, you should be looking for those same kind of things or that place you rented. Guess what? Your tenants are probably looking for the same thing, your future tenants are probably looking for the same thing that you were looking for. So make sure that you find those things in the place you buy. And then there's just one more part of this. Make sure you have more income than you have expenses. - How do I know that I'm going to have more income than expenses? - Well, here's the thing. You've probably budgeted before. You know, you've set your own budget. You've lived within your means. I know a couple of shows ago, we talked about how to get this whole passive income thing going and we said, you know, just cut back on your spending a little bit, reduce your debt. Same thing here. The only thing we got to find out is how much income are we going to make? Well, hook up with a good realtor, get the information on where the market's at, that's your income side, budget your expenses, insurance, property taxes, that kind of stuff. And you're there. You can figure out whether or not it'll cash flow. - Geez, you make it all sound so simple. So let's review. - Today we discussed how to jumpstart your passive income by investing in real estate. Start by owning your own home and then you can move on to investment property. Keep in mind, you minimize your risk. If you make sure you got some cash to get started and then think cash flow, cash flow, cash flow. - You can find a written summary of this show on today's blog at big success. That's bigwith2gsuccess.com. And we're very happy to announce that as of today's broadcast, we are new and notable on iTunes in the business career section. If you like what you're hearing, vote for us, give us a rating. And if you have questions about any of our subjects, email us and let us know. Big info at big success.com. And let's get our big quote for the day, George. - Our quote today comes from the Australian author, Noel Whitaker, who said, "Becoming wealthy is like playing monopoly. "The person who can accumulate the most assets "winds the game." - All right, so roll the dice, take a chance, pass go and collect more than $200. We're not just talking about playing money here. - And next show, we're going to talk about the lessons we can learn from a bankrupt business. - Oh, that's when I was starting to feel confident. - That's right. Well, isn't it better to learn from the mistakes of others? - This is true. Until then, here's to your big success. - The big success show at big success.com. (somber music) (gentle music)