Real Estate and the Average American.
Most of the people in America are average working folks with families, jobs, houses and payments. We have tuition payments, car payments, utility bills, medical bills, mortgages and more…basically 8 days of payments on a weekly paycheck. So for most Americans, this is normal.
The one thing that Amercians do poorly is saving money. Lots of money. We are fantastic at consumerism, I know that I do my part, but spending is what we do well and saving is what we don’t do so well.
If Americans habitually saved 10% of what they earned every year, you’d always have money left after your bills…it’s the secret.
Invest your savings wisely; I, of course like real estate…be wary of leverage though. Over time, Real Estate, especially free and clear real estate is a GREAT ASSET. Don’t Wait to Buy Real Estate, Buy Real Estate and Wait.
Even 50% leverage can be risky. I seen farmers back in the early 1980′s with 50% leverage all of a sudden become 100% levered and then they were gone. If you entered this recession highly leveraged, you’re probably gone too. Levered real estate investing is very risky, make sure you have a contingency plan for when the market turns on you.
“I don’t mind sailing in rough waters, I just want to get home to a safe port alive.” Randy Fischer
Save, Invest, Enjoy.
I have to agree that real estate can be a great investment. It is NOT a get rich quick overnight scheme that you can learn in a weekend seminar or from some DVDs you bought from an infomercial.
Always think long term and remember Randy’s advice about leverage!