am always amazed when I Options aside, how much stock can
talk with people about you purchase for $10,000 ?
investing and real estate. $10,000 is again the correct
I was at a resort recently with answer.
my family and struck up a
conversation with a woman about How much real estate can you buy
her experience with the resort. for $10,000 ? How about $250,000?
As we chatted she mentioned that I've done it for less. Now let me
she was a realtor. I asked if she ask: When you have $10,000 in
did her own investments, and to stock, how much do get
my amazement she said "I wish I appreciation on? $10,000 - this
could, but I have my money tied is easy! How about if that mutual
up in funds". fund goes up 5%, what do you get
5% on? $10,000 again!
I almost drowned in the hot tub!
Here is someone who facilitates Now what if that $250,000 house
deals for people in real estate goes up 5%...you get $12,500 in
(assuming she has ever met an appreciation. That's more than
investor), and she would rather your initial investment.
earn 2-5% (maybe) per year on her
money. Wow. Now let's look at involving OPM -
other people's money. Is there
I hardly know where to start. I anyone at a bank that would lend
think the most exciting things you $10,000 to buy stock? I doubt
about real estate investing are it. Is there anyone at a bank
leverage and control. Let me that will lend you $10,000 to buy
first discuss leverage. How much a house? You bet there is!
interest in a mutual fund can you Lenders are tripping over each
get for $10,000 ? $10,000 worth other to lend you money. How much
would be the correct answer. mortgage related junk mail do you
get every day? what that stock will be worth 3
months from now? Absolutely not.
So, not only do you get
appreciation on much more than How about a property you buy - do
you spent, but you have people you know what it will be worth in
willing to lend you the money to three months? You better have a
do it! What could be better than good idea! You can run a market
that? How about control or analysis or get an appraisal any
knowledge. time you want, and most markets
don't make radical changes in
When you buy stock in a company, three months, so you can have a
what can you do to make it go up pretty close idea what a property
or down? Not much. I doubt you will be worth in three months.
could buy enough product to
affect the stock price of any That investment is under your
public company. What about with control, because you can fix it
real estate? What can you do to up, add to it, or even scrape it
affect the market price of your and add another building. When
property? Plenty! You can really you add up leverage, control and
affect a market, but you can do a predictability, real estate comes
lot to a property yourself. out shining as the best
investment vehicle. Of course I
When you buy a stock, do you have would never recommend it be your
any idea if that stock will go up only investment vehicle, but you
or down? Not really. Hopefully are missing out on a huge return
you study a company and pick one if you are not investing in real
that you think will do well, but estate.
there are no guarantees. Phrased
differently, do you have any idea
About the Author:
Ron LeBlanc is a real estate investor who is a licensed realtor in Colorado. He gets a huge charge out of helping people through the fear and hurdles to financial independence. He lives with his wife and 2 boys in boulder, Colorado - the greatest place on Earth to live. Visit him at http://www.boulder-realestate-investors.com
Source: www.isnare.com
