Any mistake in the four stages of real estate investing can turn your investment dreams into a nightmare. We will discuss each of these areas in detail in a four-part blog post series.
The four broad stages of Real Estate Investing:
- Raising Real Estate Capital
- Making Real Estate Acquisitions
- Real Estate Operations
- Real Estate Liquidation
Investment Problems
After taxes and other expenses, most doctors find it challenging to save more than $50,000 a year. If you are doing better than this, congratulations, you are ahead of the game.
Because most lending these days requires 25% or more down for investment property, most health care workers feel limited to Residential Property investments. These properties are either single-family homes, duplexes, triplexes, or quads.
While one can make money in the right circumstances with these types of investments, many roadblocks to prosperity exist.
- The inability to access non-recourse lending
- Lack of economies of scale
- Lack of access to the best property managers
- The effects of the residential market cycle
- The effects of the comparison appraisal model on the value of your investment
Raising Capital: A combined effort
What many physicians and other health care workers may not realize is that they can combine their money with others and purchase larger commercial properties as a fractional owner.
This type of real estate investing can largely remove many of the problems listed above, allowing for larger more consistent returns.
Its Your Wealth and Your Retirement, Why not Make it Abundant?
P.S. Next post, “Real Estate Acquisition: Your Real Estate Investments.”
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