Now's the Time to Invest in Real Estate

Real Estate where I live is selling for a low, low price, depending on what you're looking for, that is. If you want a mansion, you'll pay for a mansion. My son is a real estate investor and for the last 18 months has been buying 2 bedroom 2 bathroom block houses (some larger, some smaller) that need some work for between $20,000 and $30,000. He has learned to offer less than the asking price, doesn't buy many forclosures or short sales, doesn't buy too many mobile homes (they don't go up in value like a house) and always rents them out quickly. He's a very good landlord and worked hard to have a good reputation.

When he was just out of college he set up jars in his room with tags on them for rent, food, entertainment, savings, etc. He stuck with this and working an $8.00 an hour job in a warehouse, was able to put a small down payment of his first house within a couple of years. He was renting a room and was able to keep his living expenses low.

He was now the proud owner of his first house. This was his house, not a rental. He kept on saving and put the required 10% down on his first rental a year later. He kept his rental income and his full time job income separate and kept saving, and of course he got raises and promotions at his full time job over the 11 years that he worked for his company. He set goals. I remember him saying "this year I am going to buy 2 houses." Then it was 3 houses, then 4. Last year he bought 10! Some he rents and some he is able to sell, usually on contract. He puts most of the money he makes on a sale back into his business. Now he has over 30 houses.

He was able to retire from his full time job a few years ago and focus on his real estate business so now, of course, he lives on his rental income. He has had to learn how to maintain houses, how to check applications for his potential renters, how to manage his money and do his income taxes. He was a business/finance major in college and was always disciplined so he learned about his career in many different ways. He joined a Real Estate group and faithfully attends the meetings. He attended "Millionaire Mind" conferences and read everything he could get his hands on about the business. Now he is a successful real estate investor. And most importantly, an honest one.