Friday, November 20, 2009
Millianaire real estate investor
A year and a half ago I read the book 'Millionaire Real Estate Investor' by Gary Keller. In that book he interviewed the most wealthiest REAL ESTATE INVESTORS across the country to see why they were so successful. One of the basic themes in the book is to always buy a house with at least 20% equity. Another idea from the book is not buy a house in the hopes for appreciation. If you buy your first rental property with more than 20% equity ,you will be able to do a cash out refinance a year later. You can use this cash to buy your next property. When you own two rental properties, you are well on your way to creating wealth and passive cash flow. I made the mistake of buying a rental four years ago in the hopes of appreciation and now I have to hold onto that house for 15 years or more before I see a nice gain. I wish I would have read that book 5 years ago so I could have avoided a couple of mistakes I made when buying rentals.