In my email the other day I talked about the tools you need to make money in real estate. I also mentioned the real estate "bubble" in passing.
Every day it seems there's a new article or column being released that talks about the white-hot American real estate market and how it must, at some point, burst. Interestingly, though, I did a couple of Google searches while writing this article and guess what? There have been articles and columns written about the impending "bubble burst" going back to the year 2001 and beyond.
It's true that real estate prices are rapidly rising in parts of the country. And it's also true that real estate investors are becoming an economic force like never before, and that properties are changing hands at a rapid pace. I believe that real estate investors are having an impact on the market, but I don't believe that real estate investors alone are driving the economy of this country. So, even if property appreciation does slow down, that doesn't equate into the economy going bust and people losing their homes.
One article I read mentioned the rate at which Americans are leveraging the equity in their homes to finance additional real estate purchases. I thought that was great! Proof positive that people are listening to the things I've been saying, and are taking control of their financial goals.
Hopefully, these people are leveraging more than just the equity in their homes. Hopefully they are also leveraging the two other key factors in wealth-building - other people's time and other people's knowledge.
With each property you invest in, there is additional work. Work involved in maintenance, upgrading, tenant communications and relations, etc. If you are using real estate to finance your dreams, are you leveraging other people's time to help you get there? Who is doing all of this additional work? Are you trying to do it all yourself, or do you have any help? Remember, you might make enough on a single deal to pay your entire portfolio's management costs for a whole year! What could you do with the time you weren't spending on property management?
How about leveraging other people's knowledge? Every time you pick up a book or listen to an audio tape, or attend a real estate investing seminar, you are doing just that - leveraging someone else's knowledge. And that's a great thing - because the more you know, the more powerful you become! That's why I made the special offer in Tuesday's email for the Real Estate Home Study Course. If you haven't yet checked out that special offer, I encourage you to do so - and leverage our knowledge for your benefit.
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